#5066. A replication about cause–effect linkage benefits and managers’ strategic judgments

July 2026publication date
Proposal available till 15-05-2025
4 total number of authors per manuscript0 $

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Journal’s subject area:
Accounting;
Management Information Systems;
Management of Technology and Innovation;
Strategy and Management;
Management Science and Operations Research;
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Abstract:
Managers must constantly scan a sea of new information and judge (1) if this information is relevant to evaluating the firm’s strategy (i.e. information relevance judgments), and (2) if this information suggests the firm’s strategy is appropriate or inappropriate (i.e. strategy appropriateness judgments). I examine these judgments in a behavioral experiment with Amazon Mechanical workers. Replicating prior research, I test how these judgments are affected by formatting the firm’s strategy to include cause–effect linkages, a defining feature of strategic performance measurement systems. I also add a manipulation of causal relatedness, i.e. the subjective probability of a given cause–effect linkage, especially as it relates to the inferred bridging mediators that can logically connect a cause–effect linkage. Extending prior research, I also find that cause–effect linkages only improve strategy appropriateness judgments when those linkages have high causal relatedness.
Keywords:
Causal relatedness; Cause?effect linkage strength; Information relevance; Replication; Strategic performance measurement system; Strategy appropriateness

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