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CAUSAL AMBIGUITY, MANAGEMENT PERCEPTION, AND FIRM PERFORMANCE

Thomas C. Powell, Dan Lovallo, Carmina Caringal

Academy of Management Review · 2006 · Volume 31 · Issue 1

DOI: 10.5465/amr.2006.19379630

Abstract

We integrate and extend research on causal ambiguity, indicating the principal causal paths from ambiguity to performance and discussing the connections between empirical findings and resource-based expectations. We then develop the linkage between causal ambiguity and management perception. Drawing on experimental and field research, we give testable propositions linking ambiguity, perception, and firm performance; integrate this research with studies of causal ambiguity; and suggest directions for future causal ambiguity research.

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