Cognitive Blindness in Intelligent Organizations
Chapter from the book: Yaralı, M. C. (ed.) 2026. Smart Organizations: Digital Maturity, Strategic Management, Learning, and Competitive Advantage.

Dilek Özdoğan
Balıkesir University

Synopsis

Digital transformation processes, which have gained momentum with the Fourth Industrial Revolution, have led to significant changes in businesses’ organizational structures, management approaches, and decision-making mechanisms. Smart organizations emerging from this transformation have evolved into knowledge-based, networked, flexible, and agile structures by leveraging technologies such as big data, artificial intelligence, and the Internet of Things. While these organizations offer significant advantages in terms of their ability to adapt to changing environmental conditions and generate knowledge, they also face various cognitive limitations due to intense data flows and increasing complexity. In this study, the phenomenon of cognitive blind spots affecting decision-making processes in smart organizations is examined within the framework of the bounded rationality approach and cognitive biases. Limitations in the human mind’s information-processing capacity, along with systematic thinking tendencies, can lead to the disregard of certain critical pieces of information during decision-making processes. In particular, it is assessed that cognitive tendencies such as confirmation bias, overconfidence bias, the framing effect, the availability heuristic, and status quo bias influence organizational decision-making processes and reinforce the formation of cognitive blindness. Consequently, cognitive blindness in smart organizations is not merely a result of individual thinking errors; it also arises from the interaction of organizational culture, data management, digitalization practices, and decision-making processes.

How to cite this book

Özdoğan, D. (2026). Cognitive Blindness in Intelligent Organizations. In: Yaralı, M. C. (ed.), Smart Organizations: Digital Maturity, Strategic Management, Learning, and Competitive Advantage. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub1355.c5375

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Published

June 29, 2026

DOI