The Two-Gap Problem in Executive Learning: Model–Reality Distance and Executive Embedding Distance

Formal models increasingly enter executive classrooms, yet their impact on managerial learning remains uneven. This paper argues that the challenge is not reducible to the traditional rigor–relevance debate but reflects a sequential two-gap problem. The first gap—Model–Reality Distance—emerges from the idealized abstraction inherent in mechanism-isolating models (Mäki, 2005; Cartwright, 1983). The second gap—Executive Embedding Distance—arises when even translated real-world insights fail to integrate into executives’ cross-functional decision systems shaped by bounded rationality and systemic complexity (Simon, 1997; Kahneman, 2011). I argue that contextual translation of formal mechanisms into institutional and market conditions is a necessary precondition for executive relevance. Only after such translation can insights be meaningfully distilled into decision heuristics without loss of causal integrity. The paper introduces a two-dimensional framework—translatability and distillability—to classify models according to their executive learning potential. Three formal propositions link the two gaps causally and specify conditions under which executive embedding succeeds or fails. A detailed worked example demonstrates the full translation–distillation sequence. By distinguishing theoretical validity from executive embedability, this framework offers a structured pathway for aligning scholarly rigor with managerial practice. Implications for executive program design, scholarly communication, and the emerging role of knowledge translators are discussed.