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"This paper aims to address the notable lack of empirical works that examine factors influencing executive's interpretation. It examines (1) the direct influence of cognitive style (comprising analytic and intuitive thinking) on executive's interpretation of strategic issues as controllable, and (2) the moderating effect of two group level characteristics, namely information processing structure and comprehensiveness on how cognitive style influences executive's interpretation. Using case scenarios questionnaires, the study collected responses from 46 executives in the Indonesian pharmaceutical industry and analysed the hypothesized relationship using hierarchical-multiple regression. The study demonstrates that (I) faith m intuition has direct and positive effects on executive's interpretation of issues as controllable; (2) the impact of the need for cognition only bears fruit when it interacts with comprehensiveness; and (3) although information processing structure does not moderate the relationship between faith in intuition and executive's interpretation (i.e., hypothesis is not supported), it shows a direct relationship with executive's interpretation. The paper discusses the results in terms of its implication for research in the psychology of strategic management."
[, Charles Darwin University (CDU)], 2010
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UI - Makalah dan Kertas Kerja Universitas Indonesia Library