Disposition Effect on Investment Decision Making: Explanation of Regulatory-Focus Theory

Purpose – This paper aims to critically review the ownership, location and internalization (OLI) model and the Uppsala internationalization process (UIP) framework. We suggest that the inclusion of concepts such as corporate entrepreneurship, host country institutions and regulatory focus in an integrated framework helps to explain firm internationalization. Design/methodology/approach – This paper is based on a review of the literature on the OLI and UIP models. In addition, it presents a conceptual model that encompasses corporate entrepreneurship, regulatory focus and institutions. Findings – The OLI and the UIP models fail to include corporate entrepreneurship and managerial psychology in their analyses. We suggest that regulatory focus theory unifies the managerial strategic choice between position logic and opportunity logic. In addition, host country institutions affect this managerial choice with regard to internationalization. Practical implications – Regulatory focus theory originates from managerial psychology. The model is, therefore, relevant for managers, and it shows how the outcomes and processes of corporate entrepreneurial activity should manifest themselves in managerial decision-making related to further internationalization. The strength of host country institutions also affects such decision-making. Originality/value – This paper is the first to present the concept of regulatory focus in relation to firm internationalization. In addition, it shows that most entrepreneurship-related models of internationalization focus on international entrepreneurship and start-up firms. In contrast, this paper focuses on corporate entrepreneurship and the internationalization of established firms.

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Decision-Making during Games by Professional Handball Coaches Using Regulatory Focus Theory

Journal of Applied Sport Psychology ◽

10.1080/10413200.2013.801370 ◽

2013 ◽

Vol 26 (1) ◽

pp. 111-124 ◽

Cited By ~ 8

Author(s):

Thierry Debanne ◽

Vincent Angel ◽

Paul Fontayne

Keyword(s):

Decision Making ◽

Regulatory Focus ◽

Regulatory Focus Theory ◽

Focus Theory

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Regulatory Focus and Fit Effects in Organizations

Annual Review of Organizational Psychology and Organizational Behavior ◽

10.1146/annurev-orgpsych-012119-045404 ◽

2020 ◽

Vol 7 (1) ◽

pp. 25-48 ◽

Cited By ~ 4

Author(s):

E. Tory Higgins ◽

Federica Pinelli

Keyword(s):

Decision Making ◽

Goal Orientation ◽

Organizational Development ◽

Regulatory Focus ◽

Regulatory Fit ◽

Regulatory Focus Theory ◽

Organizational Contexts ◽

Regulatory Fit Theory ◽

The Individual ◽

Focus Theory

Regulatory focus theory distinguishes between two different value concerns: promotion concerns with advancement and growth, and prevention concerns with safety and security. Since its publication more than 20 years ago, regulatory focus theory has generated a substantial amount of research and it has been applied to numerous organizational contexts. We identified four main domains: decision making, messaging, people management (e.g., leadership, organizational development, wellness and employees’ productivity), and entrepreneurship. We selected significant findings in those domains based on individuals, teams, and organizations being motivated by promotion or prevention goals and on the consequences of the match between regulatory focus goal orientation and the manner in which the goal is pursued, as conceptualized by regulatory fit theory. We also highlighted whether the research was concerned with the individual or with a broader group within the organization (including the organization itself). We conclude by suggesting future avenues for research.

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Grey Regulatory Focus Theory Weighting Method for the Multi-Criteria Decision-Making Problem in Evaluating University Reputation

Symmetry ◽

10.3390/sym11020230 ◽

2019 ◽

Vol 11 (2) ◽

pp. 230 ◽

Cited By ~ 1

Author(s):

Moses Olabhele Esangbedo ◽

Sijun Bai

Keyword(s):

Decision Making ◽

Regulatory Focus ◽

Grey System Theory ◽

Multi Criteria Decision Making ◽

Regulatory Focus Theory ◽

Grey System ◽

Orientation Measurement ◽

Weighting Method ◽

Criteria Weights ◽

Focus Theory

Evaluating the reputation of higher institutions is important as a benchmark for the continuous development of universities. In multi-criteria decision-making (MCDM), the estimation of the criteria weight is significant in improving the accuracy of the evaluation results. However, criteria weights assigned by decision makers (DMs) can be inaccurate when not measured from the orientations from which the DMs pursue their decision goals. This paper combines the grey system theory (GST) and regulatory focus theory (RFT) in estimating the weights of criteria by measuring the promotional and prevention focus orientations of the DMs and representing it as grey numbers. In this paper, we showed not all weight measurements from the DMs are symmetrical. In essence, to improve the accuracy of the MCDM weights, the grey regulatory focus theory (GRFT) weighting method is proposed to estimate the weights of an MCDM problem as well as aggregating the weights of the group DMs, thereby overcoming the limitation of a single orientation measurement. Furthermore, the GRFT weighting method is applied in ranking four universities in Xi’an city of China from a sample data from 1,200 students. The most reputable university is consistent with the other ranking indexes in the literature.

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