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How can managers reduce information asymmetry in dyadic manager-external stakeholder relationships in a complex and evolving environment? Addressing this question has significant implications for firm survival, growth, and competitive advantage.

We have adopted a multiparadigm approach to theory building, known as metatriangulation. We integrate the dynamic capabilities, sensemaking, and evolutionary theory literatures to theorize how managers can relate to stakeholders in a complex and evolving environment.

We propose, via a conceptual framework and three propositions, “evolutionary sensemaking” as the managerial metacognitive dynamic capability that helps managers hone their understanding based on the evolutionary changes in the stakeholder’s interpretations of information quality preferences. The framework unfolds across three evolutionary stages: sensing preferences' variation of the stakeholder, seizing preferences, and transforming for complexity alignment and retention. The propositions focus on managing complexity in stakeholder information quality preference, employing cognitive capabilities to simplify, interpret, and align interpretations for effective information asymmetry reduction.

To develop the metacognitive dynamic capability of evolutionary sensemaking, managers need to train for and foster the underlying complex cognitive capabilities by enhancing their (1) perception and attention skills, (2) problem-solving and reasoning skills, and (3) language, communication, and social cognition skills, focusing specifically on reducing the complexity embedded in stakeholder cognition and diverse stakeholder preferences for information quality. Contrary to the current advice to “keep things simple” and provide “more” information to the stakeholders for opportunism reduction, trust-building, and superior governance, our framework suggests that managers hone their cognitive capabilities by learning to deal with the underlying complexity.

The proposed framework and propositions address research gaps in reducing information asymmetry. It enriches the dynamic capabilities literature by recognizing complexity (as opposed to opportunism) as an alternative source of information asymmetry, which needs to be addressed in this stream of research. It extends the sensemaking literature by identifying the complexity sources – i.e. stakeholder preferences for diverse information quality attributes and the associated cognitive preference interpretation processes. The article enhances evolutionary theory by delving into microprocesses related to information asymmetry reduction, which the existing literature does not thoroughly investigate.

We examine how interpersonal behavior and social interaction influence team sensemaking and subsequent team actions during a hospital-based health information technology (HIT) implementation project.

Over the course of 18 months, we directly observed the interpersonal interactions of HIT implementation teams using a sensemaking lens.

We identified three voice-promoting strategies enacted by team leaders that fostered team member voice and sensemaking; communicating a vision; connecting goals to team member values; and seeking team member input. However, infrequent leader expressions of anger quickly undermined team sensemaking, halting dialog essential to problem solving. By seeking team member opinions, team leaders overcame the negative effects of anger.

Leaders must enact voice-promoting behaviors and use them throughout a team’s engagement. Further, training teams in how to use conflict to achieve greater innovation may improve sensemaking essential to project risk mitigation.

Health care work processes are complex; teams involved in implementing improvements must be prepared to deal with conflicting, contentious issues, which will arise during change. Therefore, team conflict training may be essential to sustaining sensemaking.

Future research should seek to identify team interactions that foster sensemaking, especially when topics are difficult or unwelcome, then determine the association between staff sensemaking and the impact on HIT implementation outcomes.

We are among the first to focus on project teams tasked with HIT implementation. This research extends our understanding of how leaders’ behaviors might facilitate or impeded speaking up among project teams in health care settings.

Purpose – To offer a theoretical explanation for observed physician resistance and rejection of high reliability patient safety initiatives.

Design/methodology/approach – A grounded theoretical qualitative approach, utilizing the organizational theory of sensemaking, provided the foundation for inductive and deductive reasoning employed to analyze medical staff rejection of two successfully performing high reliability programs at separate hospitals.

Findings – Physician behaviors resistant to patient-centric high reliability processes were traced to provider-centric physician sensemaking.

Research limitations/implications – Research, conducted with the advantage that prospective studies have over the limitations of this retrospective investigation, is needed to evaluate the potential for overcoming physician resistance to innovation implementation, employing strategies based upon these findings and sensemaking theory in general.

Practical implications – If hospitals are to emulate high reliability industries that do successfully manage environments of extreme hazard, physicians must be fully integrated into the complex teams required to accomplish this goal.

Social implications – Reforming health care, through high reliability organizing, with its attendant continuous focus on patient-centric processes, offers a distinct alternative to efforts directed primarily at reforming health care insurance. It is by changing how health care is provided that true cost efficiencies can be achieved. Technology and the insights of organizational science present the opportunity of replacing the current emphasis on privileged information with collective tools capable of providing quality and safety in health care.

Originality/value – The fictions that have sustained a provider-centric health care system have been challenged. The benefits of patient-centric care should be obtainable.

Business ethics provide a potent source of competitive advantage, placing increasing pressure on organizations to create and maintain an ethical workforce. Nonetheless, ethical breaches continue to permeate corporate life, suggesting that there is something missing from how we conceptualize and institutionalize organizational ethics. The current effort seeks to fill this void in two ways. First, we introduce an extended ethical framework premised on sensemaking in organizations. Within this framework, we suggest that multiple individual, organizational, and societal factors may differentially influence the ethical sensemaking process. Second, we contend that human resource management plays a central role in sustaining workplace ethics and explore the strategies through which human resource personnel can work to foster an ethical culture and spearhead ethics initiatives. Future research directions applicable to scholars in both the ethics and human resources domains are provided.

Marion has just taken on the directorship of a joint university/public library. You, as her protégé, are interested in observing how she approaches the new venture. You are curious about what information she will gather, whose advice she will seek, how she will figure out the expectations others have of her and the library, how she will prioritize the many challenges before her, and how she will negotiate her leadership role with the staff. In other words, you want to study Marion's organizational sensemaking.

This study examines how highly disruptive issues cause profound dissonance in societal members that are cognitively and emotionally invested in existing institutions. The authors use PETA’s (People for the Ethical Treatment of Animals) entrepreneurial advocacy for animal rights to show how this highly disruptive issue interrupted and violated taken-for-granted interpretations of institutions and institutional life. The authors compare 30 YouTube videos of PETA’s advocacy to explore pathways to effective sensegiving and sensemaking of highly disruptive issues. The findings augment the analytical synergy that exists between sensemaking and institutional analysis by unpacking the micro-level dynamics that may facilitate transformational institutional change.

Sensemaking is an integral element of human cognition. It is the activity whereby we find answers to questions that arise from experience. It is at the core of collaborative management research as researchers and practitioners work together to build a shared understanding of organizational phenomena and take action based on that understanding, thereby generating actionable knowledge. However, mutual understanding is a complex process which requires a great deal of effort by both researchers and practitioners. While research has described in great detail the consequences of collaborative research endeavors, the challenge of creating a shared sensemaking conducive to these results has been left partially explored. The chapter examines the nature of sensemaking in collaborative management research. A comprehensive framework is proposed and then utilized to examine a collaborative management research effort carried out with an Italian social cooperative.

Today’s business environment has the nature that challenges the decision-making processes of businesses with its many different factors including technological developments and changing consumer structures. Previous research focused on specific contexts of the business environment regarding marketing and innovation issues, however, an integrative approach can be helpful for understanding and taking actions. This study aims to present a comprehensive framework which employs sensemaking from management literature as an approach to evaluate the market environment. Following a conceptual approach for the methodology, a framework consisting of three stages: discovery, sensemaking, and prediction is included in the study. Proposed framework identifies the stages for the sensemaking of consumers and can guide marketing decision-makers for competitiveness in the digital world.

This study explores how thinking infrastructures can orchestrate collective sensemaking in unstable and socially contested environments, such as large-scale humanitarian crises. In particular, drawing from recent interest in the role of artifacts and infrastructures in sensemaking processes, the study examines the evaluative underpinnings of prospective sensemaking as groups attempt to develop novel understandings about a desired but ambiguous set of future conditions. To explore these theoretical concerns, a detailed case study of the unfolding challenges of managing a large-scale humanitarian crisis response was conducted. This study offers two contributions. Firstly, it develops a theorization of the process through which performance evaluation systems can serve as thinking infrastructures in the collaborative development of new understandings in unstable environments. Secondly, this study sheds light on the practices that support prospective sensemaking through specific features of thinking infrastructures, and unpacks how prospective and retrospective forms of sensemaking may interact in such processes.

This paper seeks to develop a mid-range theory of how change recipient sensemaking processes affect the realization of strategic flexibility during simultaneous change in professional service firms.

The research presented is based on an exploratory embedded case study adopting a qualitative interpretive methodology, conducted at a professional service organization. A sensemaking lens was adopted in order to study organizational change processes. Data was collected through semi-structured open-ended in-depth interviews, and analyzed using first and second order analysis, inspired by the methodology used by Corley and Gioia (2004).

We identified four determinants of change recipient sensemaking: professional identification, dominant organizational discourse, equivocality of expectations, and cross-understanding between thought worlds. Case findings indicate that cognitive and affective dimensions of change recipient sensemaking are strongly interwoven in their effect on realizing strategic flexibility.

We contribute to the competence-based strategic management literature by introducing the concept of change recipient sensemaking in understanding the realization of strategic flexibility; by identifying four major determinants in a context of simultaneous change in a professional service organization; and by highlighting the interwoven and mutually reinforcing cognitive and affective dimensions of professional’s process of constructing meaning.