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Sense and sensibility: testing the effects of attention structures and organizational attention on financial performance
Código: WPE – 196
Luciana Carvalho de Mesquita Ferreira
According to attention-based theories, to explain organizational attention is to explain organizational behavior. In our study we test the model of situated attention and firm behavior by examining the effects of attention structures and allocation of attention on organizational outcomes. We hypothesize a positive relationship between attention structures and the allocation of organizational attention that, in turn, has an effect on financial performance. Using a unique dataset composed of indicators of social responsibility published by 338 Brazilian organizations between 2001 and 2007, we find support for our hypotheses. Our findings suggest that organizational attention to social issues fully mediates the relationship between attention structures and financial performance.