Heuristics in the strategy context—commentary on Bingham and Eisenhardt (2011)
Published online on May 08, 2014
Abstract
Bingham and Eisenhardt (2011) highlight the positive role of heuristics in the strategy context. They discuss four mechanisms through which heuristics have positive effects for strategy. The first mechanism—using a heuristic cue as a proxy for complex, correlated information—builds directly on Gigerenzer's research on positive heuristics. The second (capturing a window of opportunity) and third (providing some direction while allowing freedom to improvise) mechanisms, combine Gigerenzer's ideas with Eisenhardt's earlier work. The fourth one relates to coordination. In this commentary, we critically evaluate the applicability of these four mechanisms in the strategy context, which differs fundamentally from Gigerenzer's context. Our primary contribution is the explication of central limitations in the ways heuristics can function in the strategy context. Copyright © 2014 John Wiley & Sons, Ltd.