Managers' perceptual errors revisited: the role of knowledge calibration

Kishore G. Pillai

Research output: Contribution to journalArticle

Abstract

Insights from the stream of research on knowledge calibration, which refers to the correspondence between accuracy and confidence in knowledge, enable a better understanding of consequences of inaccurate perceptions of managers. This paper examines the consequences of inaccurate managerial knowledge through the lens of knowledge calibration. Specifically, the paper examines the antecedent role of miscalibration of knowledge in strategy formation. It is postulated that miscalibrated managers who overestimate external factors and display a high level of confidence in their estimates are likely to enact strategies that are relatively more evolutionary and incremental in nature, whereas miscalibrated managers who overestimate internal factors and display a high level of confidence in their estimates are likely to enact strategies that are relatively more discontinuous and disruptive in nature. Perspectives from social cognitive theory provide support for the underlying processes. The paper, in part, explains the paradox of the prevalence of inaccurate managerial perceptions and efficacious performance. It also advances the literature on strategy formation through the application of the construct of knowledge calibration.
Original languageEnglish
Pages (from-to)299-312
Number of pages14
JournalBritish Journal of Management
Volume21
Issue number2
DOIs
Publication statusPublished - Jun 2010

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Managers
Calibration
Lenses
Confidence
Strategy formation
Internal factors
Managerial perceptions
External factors
Social cognitive theory
Paradox
Incremental
Evolutionary

Cite this

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Managers' perceptual errors revisited : the role of knowledge calibration. / Pillai, Kishore G.

In: British Journal of Management, Vol. 21, No. 2, 06.2010, p. 299-312.

Research output: Contribution to journalArticle

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