Environmental Scanning Behavior of the Top Managers: A Regulatory Focus Model

Abstract

Drawing on regulatory focus theory (Higgins 1997), I propose a model

of firms environmental scanning behavior. Specifically, I explore a firms

environmental scanning behavior as a function of the motivational mindset

of the firms top management team. Prior research has shown that diversity

of the TMTs composition has an impact on the firms strategic behavior.

I take this premise further to suggest that: 1) a TMTs cognitive diversity

is likely to differ in the collective mindset in their degree of promotionor

prevention-focus; 2) this differential mindset is likely to mediate the

processing style of the environment, and subsequently differentially drive

the firms strategic choice.