Short-Term Wins, Long-Term Risks: A Conceptual Review of the Strategic Costs of Managerial Myopia


Authors : Dr. V. Lakshmi Vasudev; Dr. R. Raghuveer

Volume/Issue : Volume 11 - 2026, Issue 1 - January


Google Scholar : https://tinyurl.com/b494t9uy

Scribd : https://tinyurl.com/sy99j86m

DOI : https://doi.org/10.38124/ijisrt/26jan1011

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.


Abstract : In an increasingly performance-driven business environment, managers are often pressured to deliver immediate results, sometimes at the expense of long-term organizational health. This phenomenon, commonly referred to as managerial myopia, reflects a strategic bias toward short-term gains while neglecting long-term risks and sustainability. This conceptual review synthesizes literature from strategic management, behavioral strategy, and organizational theory to examine the antecedents, manifestations, and consequences of managerial myopia. The paper argues that short-termism, while offering temporary performance benefits, can erode innovation capability, stakeholder trust, and strategic resilience over time. A conceptual framework is proposed to illustrate how managerial time orientation influences strategic decision-making and organizational outcomes, with governance mechanisms and organizational learning acting as moderating factors. The study contributes to strategy literature by clarifying the strategic costs of managerial myopia and offers actionable insights for leaders seeking to balance short-term performance pressures with long-term value creation.

Keywords : Managerial Myopia; Short-Termism; Strategic Decision-Making; Long-Term Performance; Strategic Risk; Organizational Sustainability.

References :

  1. Bansal, P., & DesJardine, M. R. (2014). Business sustainability: It is about time. Strategic Organization.
  2. Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of Management Review.
  3. Graham, J. R., Harvey, C. R., & Rajgopal, S. (2005). The economic implications of corporate financial reporting. Journal of Accounting and Economics.
  4. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics.
  5. Kahneman, D., & Tversky, A. (1979). Prospect theory. Econometrica.
  6. Laverty, K. J. (1996). Economic short-termism. Academy of Management Review.
  7. Levinthal, D. A., & March, J. G. (1993). The myopia of learning. Strategic Management Journal.
  8. Marginson, D., & McAulay, L. (2008). Exploring the debate on short-termism. British Accounting Review.
  9. March, J. G. (1991). Exploration and exploitation in organizational learning. Organization Science.
  10. Porter, M. E. (1992). Capital disadvantage. Harvard Business Review.
  11. Slawinski, N., & Bansal, P. (2015). Short on time. Organization Studies.
  12. Tushman, M. L., & O’Reilly, C. A. (1996). Ambidextrous organizations. California Management Review.
  13. Hamel, G., & Prahalad, C. K. (1994). Competing for the Future.
  14. Ghoshal, S. (2005). Bad management theories. Academy of Management Learning & Education.
  15. Porter, M. E., & Kramer, M. R. (2011). Creating shared value. Harvard Business Review.

In an increasingly performance-driven business environment, managers are often pressured to deliver immediate results, sometimes at the expense of long-term organizational health. This phenomenon, commonly referred to as managerial myopia, reflects a strategic bias toward short-term gains while neglecting long-term risks and sustainability. This conceptual review synthesizes literature from strategic management, behavioral strategy, and organizational theory to examine the antecedents, manifestations, and consequences of managerial myopia. The paper argues that short-termism, while offering temporary performance benefits, can erode innovation capability, stakeholder trust, and strategic resilience over time. A conceptual framework is proposed to illustrate how managerial time orientation influences strategic decision-making and organizational outcomes, with governance mechanisms and organizational learning acting as moderating factors. The study contributes to strategy literature by clarifying the strategic costs of managerial myopia and offers actionable insights for leaders seeking to balance short-term performance pressures with long-term value creation.

Keywords : Managerial Myopia; Short-Termism; Strategic Decision-Making; Long-Term Performance; Strategic Risk; Organizational Sustainability.

Never miss an update from Papermashup

Get notified about the latest tutorials and downloads.

Subscribe by Email

Get alerts directly into your inbox after each post and stay updated.
Subscribe
OR

Subscribe by RSS

Add our RSS to your feedreader to get regular updates from us.
Subscribe