Research On The Impact Of Top Manager's Cognition On Business Performance

The manager is the leader of the company and is the protagonist in the daily operation and development of the company,which determines the direction and quality of the enterprise development.At present,in the era of big data,the environment is changing rapidly.This is full of complex and diverse information.The role of managers is playing an increasingly important role.The ability of managers to conceptualize internal and external information,make decisions and take actions and so on will have a vital impact on business development.In particular,managers' cognitive ability to the environment reflects their interpretation of environmental information,which in turn affects the behavior and performance level of enterprises.Therefore,managers need scientific cognitive theory to guide practical activities and improve their cognitive level,in order to help companies achieve better development.The theory of Upper Echelons Theory put forward by Hambrick clearly pointed out those managers' characteristics will have an impact on the corporate strategic behavior and corporate performance.Based on this theory,domestic and foreign scholars have also done a lot of research,but most studies are based on the demographic characteristics of managers,exploring how the characteristics of managers' age,gender,tenure and education background influence corporate decision-making behavior and performance.This article starts from the subjective characteristics of managers' cognition,and subdivides managers' cognition of the internal and external environment into macroscopic environmental cognition,cognition of industrial environment,cognition of market environment,cognition of enterprise resources,cognition of enterprise capabilities and enterprise culture.There are six aspects of cognition,aiming at a more detailed analysis of the influence of top management cognition on corporate performance.On the one hand,this article is to enrich existing theories,and on the other hand,it hopes to provide managers with theoretical guidance and practical guidance more accurately,so as to promote the healthy and stable development of the company.This paper consists of five chapters,which are introduction,literature review and theoretical basis,research hypothesis and research design,empirical analysis and hypothesis testing,research conclusion and suggestion.These five chapters complement each other.First,it analyzes the current theoretical background and realistic background,and has a preliminary understanding and judgment of the research environment and research value.Second,a large number of reading,sorting and collating the relevant research literature,and finding the deficiencies of previous studies,and thus determine the research topic of this paper is to refine the cognition of senior managers and study the influence of managers' cognition on business performance from six aspects.Then,based on the literature and basic theories,the research hypothesis of this paper is proposed,and rigorously design the operation methods and processes of each variable to ensure the scientificity and rationality of empirical analysis.In this paper,QSR Nvivo 11.0 software was used to conduct textual analysis of board reports to measure the managers' cognition.The measurement of business performance then selects factor analysis method;Further,collected sample data from the relevant websites and made an empirical analysis with the analysis software Stata 14.0 to verify whether the research hypothesis was established.This paper finally selected three years of data from 94 companies in the software and information technology service industry as research samples;Finally,the author also proposed three suggestions for improving managers' cognition: improving the efficiency of attention allocation,improving the environmental scanning capability,and improving the educational level of managers.At the same time,also pointed out the limitations of this study and then made a prospect.In the research process,this paper used a total of three research methods,namely literature research method,text analysis method and empirical research method,and achieved certain research results.The research results of this paper suggest that top manager's macro-environmental cognition,market environment cognition,and enterprise resource cognition will enhance corporate performance,while top manager's cognition of enterprise competence will inhibit the development of corporate performance,and the top manager's cognition of industrial environment and corporate culture has no significant effect on corporate performance.At the same time,there are also differences in the degree of cognition in all aspects,and the negative impact of enterprise capability cognition is biggest.Among the positive influence factors,macro-environment cognition has the greatest influence.Therefore,managers must first attach importance to the role of cognition,and actively improve their cognitive ability.At the same time,they must also rationally allocate limited attention,and improve cognitive levels that are beneficial to business performance and reduce the cognition that has no significant influence or negative influence on the enterprise performance,in order to maximize the effect of cognition on the corporate performance.