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Cognitive Capacity in the Management and Organization Research: A Review and Agenda for Future Research
Abstract
Today's technological advances hold great promise for managers, as they unleash unprecedented amounts of information. Whether and how managers will cope with the cognitive (over)load to effectively seize these opportunities remains underexplored. Extant organizational and management research has built on the assumption of managers' cognitive capacity limitations – a key aspect of their bounded rationality. Numerous studies have relied on this assumption and have contributed to our understanding of how individuals, groups, organizations, industries, and organizational fields cope with limited cognitive capacity. Based on a review of this research, this chapter uncovers how the organizational and management scholarship has applied and complemented the foundational work. It then sheds light on recent insights from parallel disciplines, and outlines avenues for future research to develop a broadened conceptualization of cognitive capacity and to further integrate the role of modern technologies in shaping cognitive capacity and in coping with cognitive (over)load in organizations.
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