strategy

25: Competitive Groups as Cognitive Communities — Joseph Porac

We discuss another JMS classic, “Competitive Groups as Cognitive Communities the case of Scottish Knitwear Manufacturers” by Porac, Thomas, and Baden-Fuller from 1989. Employing an approach based on the ‘interpretive’ side of organizations, the Authors propose that a key mechanism in competition and strategy is given by the “mental models used by key decision-makers to interpret the task environment of their organization”. These, in turn, emerge out of material and cognitive exchanges among customers, suppliers, and producers.