Out-of-sync in managerial attention: Temporal and repertory mismatches between the headquarters and subsidiary

Abstract

We advance the attention-based view by presenting empirical evidence that the attention of headquarters and subsidiary managers in a multi-business organization is, at times, out of sync. Based on empirical material that allows us to differentiate between what is attended to and what is ignored by management, we analyze the focus of managerial attention, environmental and subsidiary stimuli, and actions taken in the decision-making process over 15 years, during a period of strategic transformation. We suggest that attentional mismatches occur not only between strategic issues but also between what are considered relevant responses or actions to be taken at any particular time. We analyze the origins of the attentional mismatches and explore ways to avoid such nonalignment in strategic decision making.