The missing-middle in strategic change : exploring the cognitive capabilities of middle managers as a source of dynamism in dynamic capabilities

Abstract

The reasons behind why some organisations are able to obtain and sustain competitive advantage over others in their chosen markets has been a topic of discussion in several domains of academic literature. The theory of dynamic capabilities is one of the most prevalent conceptualisations of competitive advantage. This school of thought attributes an organisation’s sustained competitive advantage to its ability to sense opportunities, seize those opportunities and transform in line with the changes it is experiencing. However, much of the existing literature has focused its attention on how the cognition, and behavioural capabilities of an organisation’s top management enable the existence of the attributes of sensing, seizing and transforming, and has ignored other levels in the organisational structure, such as middle managers. This has been identified as a gap in the literature. This study explores how the cognitive capabilities of middle managers of an organisation contribute to its ability to obtain and sustain competitive advantage in its chosen markets. Data was collected through fifteen in-depth, semi-structured interviews with middle managers from a South African multidisciplinary professional services firm. The study found that middle managers play a crucial role in the execution of the strategy and business model adaptations formulated by top management, whilst giving valuable input based on practical on-the-ground experience. The research contributed to the literature by showing that middle managers leverage several cognitive capabilities to effectively perform sensing, seizing and transforming activities. These capabilities are deemed to be foundational to middle managers as they span across more than one of the mentioned activities. These comprise; analysis, perception, attention, problem solving, reasoning, empathy and emotional intelligence, social cognition, language and communication, and mental walk-throughs. The study further contributes to the literature by identifying the critical attributes of a work environment that are required for middle managers’ cognitive capabilities to thrive. In this regard, the study highlighted the importance of offering autonomy to middle managers and increasing organisational collaboration. A framework is presented that can aid top management in understanding the origins and development of middle managers’ cognitive capabilities.