Firm strategy, societal norms, and cognition: the American auto industry between 1968 and 2008

Abstract

This dissertation examines interactions between the norms and societal cognitions and regulations and how they impose change on the managerial cognition within the firm, thereby altering firm strategy, in the context of the American auto industry. This dissertation investigates the strategic impact cognitive change in general society has had on the American car manufacturers. This study uses content analysis as well as supporting data from the American auto makers, encompassing the years between 1968 and 2008 from the professional journal, Ward's Automotive Yearbook, and congressional hearings on the subject of fuel economy for passenger cars and light trucks sold in the United States by GM, Ford and Chrysler. This study finds that firm behavior is largely dependent upon regulations, but is also strongly moderated by market demands. In doing so, it provides some much needed empirical data to expand the literature on institutional and strategic norms and cognitions, and their real world interactions.