We investigate the relative attention between forward-looking factors and backward-looking factors in organizational aspiration formulation. Our arguments are based on the three principles of the attention-based view (ABV) and the idea that organizational attention is shaped by decision-maker concerns about sustaining legitimacy vis-à-vis stakeholders. By analyzing data from a multicountry, multi-industry survey of 541 firms, we find that forward-looking factors generally garner more attention than backward-looking factors in formulating aspirations. We also find that competitive turbulence is negatively associated and strategic aggressiveness positively associated with relative attention to forward-looking over backward-looking factors. Overall, we contribute novel theory to the emerging ABV of aspiration formulation by developing a theory of relative attention—explaining why and when decision-makers allocate more attention to forward-looking over backward-looking factors, and how this balance shifts across contextual contingencies.
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