The role of emotion in strategic issue interpretation: the case of diversity

Strategic issues have the potential to impact organizational performance. These issues are subject to cognitive interpretation by decision-makers and implementers. Some strategic issues are considered to be “hot” because of their potential to evoke strong emotions. In this paper, we argue that the cognitive antecedents involved in strategic issue interpretation are similar to those involved in the determination of emotion. We use “diversity” as an example of strategic issue. We propose that individuals’ salient social identities will shape cognitive antecedents in turn eliciting specific emotions and associated behavioral tendencies. Theoretical and managerial implications are discussed.