This study describes the cognitive structure adopted by small firms' owners and managers in the strategic management of their businesses. The influence of respondents' cognitive styles over strategic decisions was explored, as well as the role exerted by environmental turbulence on strategic choices. A careful exploration of Miles and Snow's (1978) taxonomy of strategic types and Kirton's (1976) Adaptation-Innovation theory suggested that a prospector strategy may be preferred by individuals whose psychological characteristics indicate an innovative behaviour. On the other hand, defensive strategies seem to be most attractive to individuals who prefer an adaptive cognitive style. The research method involved a set of nineteen interviews with small firms' owner-managers in two types of environemt: one highly dynamic and competitive in terms of techonlogy, and another less turbulent. An additional sample of fourteen entrepreneurs allowed a more detailed exploration of the association between environmental turbulence, cognitive style, and strategic choices. Results indicated that there are good reasons to believe that environmental turbulence is associated with strategic choices, while cognitive preferences do not seem to be associated with strategy formation.
strategy; cognitive style; cognitive structure; small firms
