Firm and industry as determinants of executive perceptions of the environment

Kathleen M. Sutcliffe, George P. Huber

Research output: Contribution to journalArticlepeer-review


This study examines variation in top executives' environmental perceptions within firms and within industries. More specifically, we investigate how industry and organizational membership affect top executives' perceptions of five environmental attributes. Results indicate that significant homogeneity of perceptions exists within firms and also within industries. Approximately 40 percent of the variance in individual top-level executives' perceptions of aspects of their respective organization's environment is explained by their organizational and industry membership. Implications of the findings for strategic management and organization theory and for future research are presented.

Original languageEnglish (US)
Pages (from-to)793-807
Number of pages15
JournalStrategic Management Journal
Issue number8
StatePublished - Aug 1998
Externally publishedYes


  • Environmental interpretation
  • Environmental perception
  • Sensemaking

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management


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