Background: The way in which corporate managers interpret, reason and evaluate uncertainties and constant changes, and how they take advantage of their experiences and wisdom can make a big difference for the long term survival of their companies. The requirements for efficiency and flexibility have increased in many ways, especially concerning the workforce needed and its degree of competency. In Sweden, employee recruiting industry has grown concurrently with the changes in the Swedish economy. Purpose: The purpose is to better understand the recruiting industry by performing a theoretical evaluation from a cognitive perspective. Delimitation: We intended to study the cognitive characteristics of the Swedish recruitment industry. Our conclusions therefore cannot be considered a "theory" regarding any industry, foreign or domestic, butmust rather be seen as a further development or an idea of how to augment the understanding for a certain industry. Result: The converged cognitive structure of the companies grows in dialogue and interaction with the surrounding world. An industry with a shared belief system consisting of clear patterns in argumentation and ways of thinking which outline the business concept, is established. It is difficult to determine how deep and constant the wisdom, or the collected knowledge, maturity and learning of experiences in the recruitment industry is because of its short period of existence.

<p>Background: The way in which corporate managers interpret, reason and evaluate uncertainties and constant changes, and how they take advantage of their experiences and wisdom can make a big difference for the long term survival of their companies. The requirements for efficiency and flexibility have increased in many ways, especially concerning the workforce needed and its degree of competency. In Sweden, employee recruiting industry has grown concurrently with the changes in the Swedish economy. </p><p>Purpose: The purpose is to better understand the recruiting industry by performing a theoretical evaluation from a cognitive perspective. </p><p>Delimitation: We intended to study the cognitive characteristics of the Swedish recruitment industry. Our conclusions therefore cannot be considered a "theory" regarding any industry, foreign or domestic, butmust rather be seen as a further development or an idea of how to augment the understanding for a certain industry. </p><p>Result: The converged cognitive structure of the companies grows in dialogue and interaction with the surrounding world. An industry with a shared belief system consisting of clear patterns in argumentation and ways of thinking which outline the business concept, is established. It is difficult to determine how deep and constant the wisdom, or the collected knowledge, maturity and learning of experiences in the recruitment industry is because of its short period of existence.</p>

<p>The implementation of a new motor vehicle block exemption began in 2002, and affected the car dealer industry in Sweden. Before this new regulation, a general agent distributing cars to dealers had the ability to restrict car dealers’ behavior much more. Nowadays, dealers have the right to sell different brands from the same showroom, even if there are strict rules about how the different brands should be presented. The new block exemption have also given car dealers possibilities to establish in other places within EU were selective distribution is applied.</p><p>As the environment changed (by the block exemption), dealers faced new information that required interpretation. In this thesis we have focused on industrial wisdom; a reasonable and consistent, yet subjective, sense-making of reality in an industry. This sense-making is a way to understand and justify company behavior; resulting assumptions are considered so basic that they remain unquestioned by industry participants. However, interpretations depend on who makes them; different persons interpret things in different ways.</p><p>In the light of the car dealer industry and the motor vehicle block exemption 1400/2002, this thesis investigated if change due to institutional pressure can affect industrial wisdom. Further, what does this process look like.</p><p>To fulfill our purpose we conducted a qualitative research by interviewing 19 Chief Executive Officers from the car dealer industry in Sweden. The sample was designed by a maximum variation sampling technique, in which we as researchers used our own judgment to pick cases that were extra informative. Before we conducted the interviews, we reviewed literature to gain a general understanding of the industry and relevant issues.</p><p>From our research we know that industrial wisdom can change due to a shift in institutional pressure and we observed that the car dealer industrial wisdom was changing. There are some new perceptions and aspects of wisdom, which suggest that the industry has moved away from previous equilibrium. Nevertheless, perceptions are diverse in a number of areas and thoughts have not been translated into action, which leaves much potential for further change. Naturally, this is a slow and difficult process since cognitive maps are embedded in a mindset that relies on previous experience and automatic interpretations. If wisdom changes more depends<strong> </strong>a great deal on if/how dealers (continue to) act.</p><p>This thesis resulted in a model (The Loop of Wisdom) that explains how a change in institutional pressure affects industrial wisdom. New information enters the company, gets interpreted, acted upon and feeds back out to the environment, which affect other companies and the industry as a whole.</p>

The implementation of a new motor vehicle block exemption began in 2002, and affected the car dealer industry in Sweden. Before this new regulation, a general agent distributing cars to dealers had the ability to restrict car dealers’ behavior much more. Nowadays, dealers have the right to sell different brands from the same showroom, even if there are strict rules about how the different brands should be presented. The new block exemption have also given car dealers possibilities to establish in other places within EU were selective distribution is applied. As the environment changed (by the block exemption), dealers faced new information that required interpretation. In this thesis we have focused on industrial wisdom; a reasonable and consistent, yet subjective, sense-making of reality in an industry. This sense-making is a way to understand and justify company behavior; resulting assumptions are considered so basic that they remain unquestioned by industry participants. However, interpretations depend on who makes them; different persons interpret things in different ways. In the light of the car dealer industry and the motor vehicle block exemption 1400/2002, this thesis investigated if change due to institutional pressure can affect industrial wisdom. Further, what does this process look like. To fulfill our purpose we conducted a qualitative research by interviewing 19 Chief Executive Officers from the car dealer industry in Sweden. The sample was designed by a maximum variation sampling technique, in which we as researchers used our own judgment to pick cases that were extra informative. Before we conducted the interviews, we reviewed literature to gain a general understanding of the industry and relevant issues. From our research we know that industrial wisdom can change due to a shift in institutional pressure and we observed that the car dealer industrial wisdom was changing. There are some new perceptions and aspects of wisdom, which suggest that the industry has moved away from previous equilibrium. Nevertheless, perceptions are diverse in a number of areas and thoughts have not been translated into action, which leaves much potential for further change. Naturally, this is a slow and difficult process since cognitive maps are embedded in a mindset that relies on previous experience and automatic interpretations. If wisdom changes more depends a great deal on if/how dealers (continue to) act. This thesis resulted in a model (The Loop of Wisdom) that explains how a change in institutional pressure affects industrial wisdom. New information enters the company, gets interpreted, acted upon and feeds back out to the environment, which affect other companies and the industry as a whole.