The Icarus paradox revisited: how strong performance sows the seeds of dysfunction in future strategic decision-making

This article reports on two studies that examine the relationship between performance and strategic issue-framing and decision-processing.The results suggest strong performance promotes a defensive mindset that may lead to dysfunctional outcomes. Study 1 draws its data from 51 CEOs and shows that performance is associated with framing issues as threats rather than opportunities. Study 2 draws its data from 45 top management teams and shows that performance is associated with less comprehensiveness in decision-making. Implications of these findings provide insights into why organizations that perform well sometimes squander their success subsequently through poor decision-making.