How Individual Differences Affect Executive Action

Sydney Finkelstein, Donald C. Hambrick and Albert A. Cannella

in Strategic Leadership

Published in print October 2008 | ISBN: 9780195162073
Published online January 2009 | e-ISBN: 9780199867332 | DOI:

Series: Strategic Management Series

 How Individual Differences Affect Executive Action

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This chapter introduces and elaborates on the central idea that executives differ in what they personally bring to their decision-making situations and therefore differ in what they decide and how they behave. The chapter lays out a comprehensive model of how this process occurs, hinging on the executive's “orientation”—or the amalgam of experiences, values, personality, and mind-set that the executive possesses at any given point. This executive orientation limits and distorts the actual stimuli confronting the executive, such that his or her “construed reality” is a result of a three-stage filtering process: limited field of vision, selective perception, and interpretation. The chapter then addresses the psychological side of executive orientations, focusing on executive values, cognitive content and structure, and personality.

Keywords: executive orientation; construed reality; information processing; executive values; executive cognitions; executive personality

Chapter.  15991 words.  Illustrated.

Subjects: Business Strategy

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