The Effect of Evocative Frames on Strategic Decisions

Abstract

We employ the frame perspective and data from a natural experiment conducted over a period of 22 years to investigate framing effects and how they can influence strategic decision-making in a total of 205 teams of participants in an organization theory course. We find that frames can have substantial effects on strategic decisions, through evoking implicit storylines which invite moral considerations and emotions into the decision process. The finding that frames can implicitly impact decisions through their selectivity, salience and emotive effects extends our understanding of strategic decision making as well as of how frames shape decisions. We contribute to understanding of frames and framing effects by highlighting the pervasive role of emotion; and offer an expanded perspective that goes beyond frames as interpretive schemes, to view them as situated symbolic actions. We conclude by discussing practical implications for executives and organizations.