RESEARCH NEWS STORY
08 August 2024
Exploring the Impact of Attentional Uniqueness and Attentional Allocation onFirm Growth
Researchers posit that a balance between attentional uniqueness and allocation can
positively impact a firm’s growth
According to the attention-based view, a firm’s actions and growth performance are directly
influenced by its attentional allocation to specific issues. The consequences of organizational
attention are reflected in the firm’s strategic decision-making and adaptability. However,existing literature is limited in its exploration of how a firm’s attentional uniqueness impacts
its behavior and performance. Notably, attentional uniqueness refers to how the firm’s
attentional allocation diverges from competitors in the same industry.
To address the above-mentioned knowledge gap, Associate Professor Takumi Shimizu of Keio
University led a study that examined the relationship between attentional uniqueness andfirm performance, mediated by the frequency of growth actions. It was co-authored by
Associate Professor Junichi Yamanoi and Associate Professor Susumu Nagayama fromWaseda University and Hitotsubashi University, respectively, and published in the Journal ofManagement Studies on 23 June 2024.
Yamanoi remarks, “We observed variations in the issues that different firms focus on and wereinterested in exploring the behavioral and performance consequences of these differences.”
Using the structural topic model, an unsupervised machine learning technique in natural
language processing, the researchers examined publicly listed companies on the Tokyo Stock
Exchange from 2004 to 2016 as their sample. A total of 9,366 observations were finalized
from 986 firms. The data collection process involved extracting raw text and focusing on
strategic agendas and managerial issues outlined in the reports.
After thorough analysis, the researchers discovered an inverted U-shaped relationshipbetween attentional uniqueness and firm performance, indicating that firms achieve optimal
performance with a balanced level of attentional uniqueness. Both too much and too little
divergence in focus can be detrimental to performance. Additionally, the frequency of growthactions, which are initiatives aimed at capitalizing on opportunities, plays a mediating role inthis relationship. This inverted U-shaped relationship is further pronounced in environmentswith scarce opportunities, demonstrating that a moderately unique attentional focus isrequired in the absence of market opportunities.
The researchers illustrate how organizational attention can drive growth actions with theexample of Toyota’s development of the Prius. In 1993, Eiji Toyoda, then-chairman of Toyota,
questioned the sustainability of current trends and emerging challenges in the automobileindustry, leading to the formation of a project committee. This committee identified‘resources’ and ‘environment’ as crucial issues for future vehicles. By 1997, Toyota introducedthe Prius, a gasoline-electric hybrid designed to address these environmental challenges,
significantly improving fuel efficiency and reducing air pollution. While Toyota focused onthese forward-looking issues, competitors like General Motors remained fixated on
traditional concerns such as model variety, design, and conventional engine performance.
Consequently, they were slow to respond to the innovative launch of the Prius.
Yamanoi emphasizes, “We propose practical implications for managers aiming to pursue firm
growth through proactive actions. Managers are encouraged to direct their focus towards
issues that are relatively distinct from those of their competitors.”
The findings of the present study indicate that, while monitoring competitors often focus on
tangible aspects, such as market positioning or strategic initiatives, it is crucial to also pay
attention to how competitors allocate their attention and the underlying assumptions they
make about managerial issues. This approach is particularly pertinent for managers operatingin mature industries, where growth opportunities are scarce. Recognizing the importance ofattentional uniqueness can empower a firm to identify and seize growth opportunities thatmight otherwise go unnoticed. By understanding and acting upon unique insights, firms caninitiate growth actions that capitalize on these opportunities.
Overall, this study marks a notable advancement in our understanding of the strategic
importance of attentional uniqueness. It highlights the nuanced ways in which firms canharness their unique perspectives to drive performance and achieve lasting success.
ReferenceAuthors

Takumi Shimizua, Susumu Nagayamab, and Junichi Yamanoic

Title of original paper

Attentional Uniqueness and Firm Performance: The Mediating Role ofGrowth Actions

JournalJournal of Management Studies

DOI

10.1111/joms.13122

Affiliations

aKeio University
Hitotsubashi UniversitycWaseda Universityb

Additional information for EurekAlert
Latest Article Publication Date:
Method of Research:
Subject of Research:
Conflicts of Interest Statement:

23 June 2024
Observational study
Not Applicable

NAImage title: How Unique Attention Patterns Drive Success
Image caption: Researchers suggest that a balance between attentional uniqueness and allocation can positively
impact a firm’s growth.
Image credit: Junichi Yamanoi from Waseda UniversityLicense type: Original content
Usage restrictions: Cannot be reused without permission