Demography research rarely examines the black box within which the cognitive diversity of the top management team is assumed to affect firm performance. Using data from 35 simulated firms run by a total of 159 managers attending executive education programs, the current research tested several hypotheses concerned with (a) the relationship between demographic and cognitive team diversity and (b) the reciprocal effects of diversity and firm performance. Results showed that members of high-performing teams tended to preserve multiple interpretations early in the team's life cycle, but that they moved toward greater clarity near the end of the life cycle. These high-performing teams, therefore, exhibited both early interpretative ambiguity and late heedful interrelating. Cognitive diversity in teams affected and was affected by changes in firm performance. Surprisingly, there was no evidence of any effect of demographic diversity on measures of cognitive diversity.

Research on cognition in organizations has focused primarily on managers and how they think while performing a variety of managerial tasks. This approach limits our understanding of cognition at the collective level and the interactive effects across levels of analysis. We propose a framework of cognition — based on structure, process, and style — which can be applied to the individual, group and organizational levels of analysis. By mapping the territory, we observe certain well-travelled routes, while other terrain remains relatively unexplored. This map also identifies theoretical and methodological road blocks which suggest a number of future research directions.

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A content analytic system focused on marketing communications can provide important insights into bargaining behavior. This article concerns testing the reliability and assessing the validity of a theoretically based communication categorization scheme.

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