Intuitive managerial thinking; the use of mental simulations in the industrial marketing context

In this paper, we introduce empirical evidence showing how mental simulation was used as a heuristic strategy in an industrial network context. The mental network simulations observed are consistent with the Recognition-Primed Decision (RPD) model, according to which intuitive thinking allows managerial experience to be translated into focal network action, without resorting to a “rational” or comparative decision strategy. We identify the main business significance of mental network simulations in terms of their utility to clarify ambiguous or only partially known focal network situations, to develop coherent focal net plans and tactics, and to mentally preview how specific focal net tactics/strategies are likely to play out in reality. In short, mental network simulations were observed as being useful in generating focal net action through cognitively meeting the complex environmental challenges in dynamic focal net interaction between companies.