The Icarus paradox revisited: How strong performance sows the seeds of dysfunction in future strategic decision-making

Allen C. Amason, Ann C. Mooney

Research output: Contribution to journalArticlepeer-review

48 Scopus citations

Abstract

This article reports on two studies that examine the relationship between performance and strategic issue-framing and decision-processing.The results suggest strong performance promotes a defensive mindset that may lead to dysfunctional outcomes. Study 1 draws its data from 51 CEOs and shows that performance is associated with framing issues as threats rather than opportunities. Study 2 draws its data from 45 top management teams and shows that performance is associated with less comprehensiveness in decision-making. Implications of these findings provide insights into why organizations that perform well sometimes squander their success subsequently through poor decision-making.

Original languageEnglish
Pages (from-to)407-434
Number of pages28
JournalStrategic Organization
Volume6
Issue number4
DOIs
StatePublished - 2008

Keywords

  • Paradox of performance
  • Strategic decision-making
  • Strategic issue diagnosis
  • Top management team processes

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