[1] Negatively, it is logic which locks a company into thinking about making money in only one way, called as "blinder effect."
Kor and Mesko argue that a firm's dominant logic can be implicit within routines, procedures and capabilities.
They distinguish it from the related concepts of the dominant logic of the management team which is in turn influenced by the managerial capabilities.
[2]: 4 In the field of strategic management, C. K. Prahalad and Richard A. Bettis described the concept of dominant logic in 1986.
Prahalad and Bettis suggested that the way top managers deal with the increasing diversity of strategic decisions in a company, which are caused by acquisitions or structural changes in the core business, depends on the cognitive orientation of those top managers.