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This paper aims to examine the role of social capital as a strategic decision aid in small and medium sized enterprises (SMEs) in different service sectors.

Data on 434 strategic decisions in service SMEs was gathered through computer‐aided telephone interviews and analyzed using structural equation modeling to test the mediating role of level of risk acceptance and confidence in the relationship between the breadth of social capital and decision effectiveness.

Evaluative judgments (risk acceptance and confidence) explain the negative effects of social capital on decision effectiveness. Service delivery and dependency on tacit know‐how account for differences between SMEs in different service sectors and serve as explanations for different effects of social capital as a decision aid.

The study sheds light on the psychological underpinnings of social capital effects in strategic decisions. Higher varieties of actors make decision makers more tolerant for risk and decrease their confidence, which in turn hampers decision effectiveness.

Previous work on social capital suggests that it is beneficial to outcomes. The literature and policy initiatives also stress the beneficial effects of social capital and networking. This research on strategic decision‐making shows that the positive effects of social capital are not as pronounced as expected for the service SMEs. This paper draws explicit attention to the negative effects for strategic decision‐making.

The purpose of this paper is to examine the cognitive factors explaining how exogenous institutional change (IC) impacts on organizational actions.

The authors interviewed 121 Romanian entrepreneurs, 69 before and 52 after Romania's ascension to the EU and used cognitive mapping to elicit their cognitive schemas about this macro‐IC. Similarities and differences between cognitive structures are explored and the aggregated cognitive maps before and after the IC are created, in order to understand how managerial cognition changed following IC.

The results show that the richness of the cognitive schemas before the IC is lower than after the IC took place. Furthermore, the entrepreneurs who framed the IC as a threat adopted isomorphic actions and reported less positive organizational outcomes as compared to the entrepreneurs that represented the IC as an opportunity.

The research described is exploratory in nature and opens new interesting research directions in the cognitive pillar of institutional theory. Moreover, a cognitive mapping technique is used to elicit and represent managerial cognition and in this way adds to the methods used in institutional research.

The results presented in this paper help policy makers to understand that the impact of exogenous IC on organizational actions is not direct, but mediated by the cognitive representations developed by strategic decision makers.

The paper integrates institutional theory with the work on cognition and explores how cognitive representations affect the relation between environmental pressures and organizational responses.

To address lessons that specify the impact and contribution of current scenario methods when focused on facilitating transition management processes.

Comparative literature review based on transition management and scenario development.

Need of further systemic thought about the required criteria of transition scenarios and the embedding of scenario use in transition management processes.

Processes of transition management are in need of transition specific scenarios.

Because transition management implies a complex and long‐term steering paradigm with which current scenario applications are not familiar, conclusions are drawn on the (changing) requirements of scenario development processes in transition management and on the need to innovate current scenario methods in the context of transition management.