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Cognitive Diversity, Managerial Characteristics and Performance Differences across the Cleantech Firms

Cognitive Diversity, Managerial Characteristics and Performance Differences across the Cleantech Firms
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Author(s): Jukka-Pekka Bergman (LUT University, Lappeenranta, Finland), Pasi Luukka (LUT University, Finland), Ari Jantunen (LUT University, Lappeenranta, Finland) and Anssi Tarkiainen (LUT University, Lappeenranta, Finland)
Copyright: 2020
Volume: 10
Issue: 1
Pages: 26
Source title: International Journal of Knowledge-Based Organizations (IJKBO)
Editor(s)-in-Chief: John Wang (Montclair State University, USA)
DOI: 10.4018/IJKBO.2020010101

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Abstract

Continuous change in the energy sector towards more sustainable solutions has raised the importance of managers' abilities to interpret changes in their environments and translate those perspectives into strategic choices. This study examines managerial interpretation on changing business environment opening the relationship of cognitive diversity, board composition, and performance differences across the cleantech firms. The authors' empirical study employs both indirect and direct cognitive measures for analysis of cognitive maps collected through surveys from the cleantech firms. The study utilizes the hybrid cognitive mapping technique with distance ratio to investigate cognitive diversity and bridges it with the firms' performance. The study also advances and operationalizes the distance ratio as a measure for the analysis of cognitive maps to utilize more information available in the maps. The results indicate that the managerial characteristics showing firm-level economic expertise creates high-level cognitive diversity and high financial volatility in performance among the cleantech firms.

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