Amsterdam Business School, U. of Amsterdam, Netherlands
Departing from the idea that past performance gaps triggering problemistic search, this study examines how managers' cognitive frames in form of perceptions of future capability gaps influence their search behavior for investments in emerging technologies from a forward-looking perspective. We find that a large gap leads managers to avoid exploration (seeking entirely new approaches) and delay the investments. Incorporating ability and motivation lenses, we demonstrate the role of motivational context of organization in guiding managers choices, arguing in promotion-focused organizational contexts (emphasizing gains and growth), mitigate these effects. We test our hypotheses with three experiments about 3 digital technologies, including practitioners in Healthcare and Finance. We find support for the importance of managers future-oriented speculations. This research contributes to the field of behavioral strategy by emphasising the forward-looking decision-making based on capabilities, not past performance, in response to emerging technologies and explains how managers navigate the challenges posed by emerging technologies through their perceptions and motivational context.
