What executives perceive influences their actions, These actions in tu
rn affect the nature and performance of their organizations. Thus, wha
t executives perceive is of interest to organizational scientists, to
strategic management researchers, and to organizational stakeholders.
The results of the field study reported here indicate that, contrary t
o popular belief, functional area work experience has no effect on whi
ch changes top executives perceive in their organizations' environment
s, Functional background, however, does have an effect on which change
s they perceive in their organizations' effectiveness.