Three Lessons for Adapting Mental Models for Unfamiliar Foreign Environments

Abstract

Managers’ reliance on established mental models for decision-making, without adapting them to the relevant context, presents risks when integrating into a foreign market. As the mental models may be calibrated to other, more familiar, contexts, they can lead to misunderstandings and errors when applied in unfamiliar international settings. We introduce a framework on how managers can use disruptive stimuli as a driver to update mental models. Building on it, we provide three lessons – Experience it!, Feel it!, and Repeat it! – through which managers can enhance their market integration, and avoid pitfalls arising from misalignment with the environment.