Strategic cognition is the study of organizational cognitive structures and decision processes in an attempt to understand strategic decision making (Narayanan et al., 2011; Porac & Thomas, 2002). Behavioral biases and interpretive frames constrain managers’ ability to make complex decisions (Finkelstein, Hambrick, & Cannella, 2009; Kabanoff & Brown, 2008; Walsh, 1995). Such biases, in part, determine which information receives managerial attention and how managers interpret it. Thus, strategic cognition describes the information-filtering or sensemaking process through which strategic issues are interpreted (Finkelstein et al., 2009).
(Bundy et al., 2013: 356)
Bundy, J. Shropshire, C. and Buccholtz, A. 2013. Strategic Cognition and Issue Salience: Toward an Explanation of Firm Responsiveness to Stakeholder Concerns. Academy of Management Review, Vol. 38, (3), pp.352-376.
See also bounded rationality, cognitive limitations etc