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Managing with Style? Micro-Evidence on the Allocation of Managerial Attention

Authors: Desmond (Ho-Fu) Lo; Francisco Brahm; Wouter Dessein; Chieko Minami;

Managing with Style? Micro-Evidence on the Allocation of Managerial Attention

Abstract

How does task expertise affect the allocation of attention? Our theory argues that when attention is scarce, expertise and attention are complements: A manager optimally focuses her attention on tasks in which she has relatively more expertise; she “manages with style.” In contrast, when attention is abundant, attention and expertise become substitutes: A manager shifts her attention toward tasks in which she has less expertise; she “manages against her style.” Using microlevel data on managers from two unrelated companies and employing various measures of time stress and managerial attention, we find converging and supporting evidence. A manager’s attention capacity determines whether she manages with style or against it. Whereas current behavioral approaches view managing with style as prevalent and biased, our theory and findings suggest, instead, that it is contingent and optimal. This paper was accepted by Joshua Gans, business strategy. Funding: C. Minami received financial support from MEXT/the Japan Society for the Promotion of Science [Multi-Year Grant 16H02035]. Supplemental Material: The online appendix and data are available at https://doi.org/10.1287/mnsc.2021.4269 .

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United Kingdom
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330, 650

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    selected citations
    These citations are derived from selected sources.
    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    12
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 10%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Average
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Average
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Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
12
Top 10%
Average
Average
Green