Strategic Cognition in Transition? Individual Mental Model Renewal in the Energy Sector

Abstract

A turbulent environment requires organizations to adjust their strategy to changing circumstances. Accordingly, the managers responsible for strategic change need to make timely adjustments to their mental models. This study contributes to the managerial cognition literature by showing a process of mental model renewal and by revealing how this is affected by individual characteristics. We examine mental models in the turbulent Dutch energy industry and investigate why managers in this industry renew their mental model to different extents. To measure individual mental model renewal we use a staged approach. First, content analysis of newspaper articles on the energy transition reveals the variety of mental models that exist in this domain. Second, analysis of strategy workshops with 96 managers from that industry shows that these strategy workshops invoke different levels of mental model renewal. We find that overall, the strategy workshops result in mental model convergence. While general experience is not of influence, energy industry specific experience has a negative effect on mental model renewal.