This paper introduces the concept of Cognitive Discrepancies of Environment (CDE) and presents a scale designed to measure these variations. To validate the scale, the study employed a multi-stage process involving a comprehensive review of prior research on the external environment, interviews with subject matter experts, and two studies conducted with members of cross-functional teams (CFT). The results indicate that CDE consists of four sub-dimensions reflecting differences in CFT members' perceptions of their external environment, encompassing customer segments, customer demands, markets, and competitors. Furthermore, the findings affirm that CDE is a conceptually unique and distinct construct, separate from established teamwork concepts such as shared mental models and cognitive diversity. Finally, the studies found that the CDE has a negative impact on the CFT performance. These findings carry significant implications for the effective management of cross-functional teams, emphasizing the importance of acknowledging members' perceptual differences in external environments to optimize CFT performance.
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