Cognitive Fragmentation, Ethical Oversights and Decision-making bias in Leadership: Psychological Consequences Beyond Conventional Well-Being

Abstract

This pilot study explores Cognitive Versatility Theory (CVT) as a framework for investigating the effects of cognitive fragmentation on ethical lapses and leadership decision-making in digital occupational environments. Using CVT’s analytic, creative, intuitive, and reflective (ACIR) cognitive processes, the study demonstrates that increased CVT engagement significantly improves workplace adaptability (beta = 0.38, p < 0.01), leadership cognition (beta = 0.44, p < 0.01), and effective decision-making (beta = 0.33, p < 0.05), accounting for 45% of the variance in these outcomes (R² = 0.45, F(3, 96) = 16.85, p < 0.001). Additionally, cognitive fragmentation is moderately correlated with ethical lapses (r = -0.483, p < 0.001) and decision-making bias (r = -0.672, p < 0.001), highlighting its adverse impact on ethical oversight and decision-making flexibility. The study examines the subtle psychological consequences of fragmented cognition on ethical reasoning and decision-making. Employing a mixed-method approach, integrating validated psychometric instruments with qualitative thematic analysis, the findings contribute to the empirical foundation for CVT’s applicability in workplace psychology. These results offer insights into decision-making biases, cognitive resilience, and ethical accountability in corporate leadership. As leaders engage more deeply in adaptive ACIR strategies, the negative effects of cognitive fragmentation diminish, enhancing overall leadership effectiveness in cognitively demanding conditions.