Mistaken Perceptions: Cases and Consequences

Mezias and Starbuck (2003) review previous work and report striking new evidence indicating that managers can be quite mistaken in their perceptions regarding some matters, even matters quite close to their jobs. This is reminiscent of much evidence on politicians and ordinary citizens that generally show a weak grip on basic facts. In assessing how much difference this weakness makes, it is useful to distinguish among four perspectives on managers as: (i) informants for academic research; (ii) performers of their normal work; (iii) problem-solvers in novel situations; (iv) strategic thinkers. Mezias and Starbuck's results suggest a negative assessment on (i) and (iii), but are less clearly relevant on (ii); some open questions regarding (iv) are put forward.