That’s why they didn’t let it go: exploring the roots of women entrepreneurs’ escalation of commitment

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pouria Nouri
Keyword(s):  
Decision Making ◽  
Narrative Analysis ◽  
Small Businesses ◽  
Women Entrepreneurs ◽  
Escalation Of Commitment ◽  
Managerial Implication ◽  
Content Type ◽  
Novel Approach ◽  
Depth Interviews ◽  
Decision Making Biases

Purpose Escalation of commitment is one of the most important decision-making biases among entrepreneurs and may deprive them of valuable resources and even result in their eventual failure. Many entrepreneurs become escalated to their ongoing plans by allocating more resources, even after receiving negative feedbacks regarding those plans. Although the escalating behavior is an inherent part of the entrepreneurial cognition, previous studies have mostly ignored its antecedents among entrepreneurs. This dearth of studies is more severe regarding women entrepreneurs, whose biases have rarely been investigated. Therefore, this paper aims to explore the antecedents of the escalation of commitment among women entrepreneurs. Design/methodology/approach To explore the antecedents of the escalation of commitment in women entrepreneurs’ decisions based on their lived experiences, this paper used a narrative inquiry. The data were collected by conducting in-depth interviews with three Iranian women entrepreneurs running small businesses and analyzed by narrative data analysis. Findings According to the findings, bitter memories of previous failures, overconfidence and familial pressure are the main antecedents of the escalation of commitment in women entrepreneurs. Practical implications This study has a very important managerial implication for women entrepreneurs, who should know that while decision-making biases may occur unintentionally, they are able to reduce the harmful effects and enhance the benefits of biases by knowing their most common signs. Originality/value This study is a pioneer in exploring women entrepreneurs’ biases and took a novel approach by conducting a narrative analysis of women entrepreneurs’ escalation of commitment.

Exploring decision-making biases among Iranian entrepreneurs: some novel insights

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pouria Nouri
Keyword(s):  
Decision Making ◽  
Small Businesses ◽  
Illusion Of Control ◽  
Escalation Of Commitment ◽  
Content Type ◽  
Face To Face ◽  
Control Factors ◽  
Qualitative Thematic Analysis ◽  
The Law ◽  
Decision Making Biases

Purpose Decision-making biases play decisive roles not only in entrepreneurs’ decisions but also in the fate of entrepreneurial businesses. While the extant literature in this regard is relatively rich, it has predominantly focused on certain biases like overconfidence and overoptimism at the expense of other possibly influential biases, which could influence entrepreneurial decisions. Thus, to address this serious research gap, this paper aims to explore four of the less-researched biases of escalation of commitment, the illusion of control, confirmation and the belief in the law of small numbers in entrepreneurial decisions. Design/methodology/approach By taking a qualitative approach, the data for this study were collected through face-to-face interviews with 19 Iranian habitual (experienced) entrepreneurs running small businesses and analyzed by a qualitative thematic analysis. Findings According to the results, the environmental uncertainty, the reluctance to lose face and the experiences of previous failures contributed to the escalation of commitment, while disregard for external factors beyond one’s control caused the illusion of control, factors like prior successful businesses in the same sector, looking for resorts to manage uncertainty, along with the decision to exploit opportunities resulted in the confirmation bias, while the expenses of conducting sweeping pilot tests in the market and the reluctance to reveal a business secret to the competitors were the main contributors of the belief in the law of small numbers. Originality/value This study is a pioneer in scrutinizing four less-researched but important biases in entrepreneurs and, thus extending the line of research in this regard.

Exploring the affect heuristic in Iranian women entrepreneurs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pouria Nouri
Keyword(s):  
Decision Making ◽  
Developing Countries ◽  
Narrative Analysis ◽  
Women Entrepreneurs ◽  
Information Overload ◽  
The Body ◽  
Final Decision ◽  
Iranian Women ◽  
Content Type ◽  
Affect Heuristic

PurposeHeuristics are fundamental components of the bounded rationality paradigm and influence entrepreneurs' decisions profusely. On the other hand, the affect heuristic is one of the most important heuristics. The body of knowledge on entrepreneurial heuristics is scattered on the whole and very superficial concerning women entrepreneurs, given that most studies have considered women and men entrepreneurs similar in showing heuristics. The dearth of research is more evident in the context of developing countries. Thus, to fill part of the existing research gaps, this study explores the affect heuristic in Iranian women entrepreneurs.Design/methodology/approachThis paper's data were gathered by conducting face-to-face interviews with 17 novice Iranian women entrepreneurs active in biotechnology, nanotechnology, advanced medicine, aerospace, textile and food sectors and analyzed through a thematic–narrative analysis.FindingsAccording to the results, the main outcomes of the affect heuristic in Iranian women entrepreneurs are delaying the final decision (including an obsession with collecting too much information, overemphasizing the role of negative information and seeking external advice before making a decision), rash decisions (including evaluations based on satisfying decision strategies, too much enthusiasm about one's venture, as well as an optimistic assessment of different scenarios) and serious consideration of quitting (including too much disappointment and anger over discrimination).Practical implicationsBased on this paper's findings, novice women entrepreneurs should be heedful of their fear, which could not only delay their decisions but also paralyze their capability of decision-making. Furthermore, while under circumstances such as information overload and uncertainty, positive feelings like optimism and happiness could be very instrumental by enabling entrepreneurs to shorten the process of their decisions, women entrepreneurs should be very careful about the possible biases resulting from their positive affect.Originality/valueThis study is a pioneer in two respects. First, it explores women entrepreneurs' decision-making heuristics, which is often a neglected area of research. Second, coming to the conclusion that most of the research on women entrepreneurs has been conducted in the Western context, this paper focuses on the context of developing countries by targeting Iranian women entrepreneurs.

Decision rules, escalation of commitment and sensitivity to framing in group decision-making

2016 ◽  
Vol 54 (7) ◽  
pp. 1649-1668 ◽  
Author(s):  
Petru Lucian Curseu ◽  
Sandra G. L. Schruijer ◽  
Oana Catalina Fodor
Keyword(s):  
Decision Making ◽  
Decision Rule ◽  
Group Decision Making ◽  
Group Decision ◽  
Decision Rules ◽  
Escalation Of Commitment ◽  
Group Level ◽  
Content Type ◽  
The Impact ◽  
Collaborative Decision

Purpose – The purpose of this paper is to test the influence of collaborative and consultative decision rules on groups’ sensitivity to framing effect (FE) and escalation of commitment (EOC). Design/methodology/approach – In an experimental study (using a sample of 233 professionals with project management experience), the authors test the effects of collaborative and consultative decision rules on groups’ sensitivity to EOC and FE. The authors use four group decision-making tasks to evaluate decision consistency across gain/loss framed decision situations and six decision tasks to evaluate EOC for money as well as time as resources previously invested in the initial decisions. Findings – The results show that the collaborative decision rule increases sensitivity to EOC when financial resources are involved and decreases sensitivity to EOC when time is of essence. Moreover, the authors show that the collaborative decision rule decreases sensitivity to FE in group decision making. Research limitations/implications – The results have important implications for group rationality as an emergent group level competence by extending the insights concerning the impact of decision rules on emergent group level cognitive competencies. Due to the experimental nature of the design, the authors can probe the causal relations between the investigated variables, yet the authors cannot generalize the results to other settings. Practical implications – Managers can use the insights of this study in order to optimize the functioning of decision-making groups and to reduce their sensitivity to FEs and EOC. Originality/value – The study extends the research on group rationality and it is one of the few experimental attempts used to understand the role of decision rules on emergent group level rationality.

Being a retailer: narratives not on display

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Damian Ruth ◽  
Frances Gunn ◽  
Jonathan Elms
Keyword(s):  
Decision Making ◽  
Narrative Analysis ◽  
Content Type ◽  
Narrative Approaches ◽  
Actual Nature ◽  
The Everyday ◽  
Business Setting ◽  
Strategy As Practice ◽  
Nuanced Understanding ◽  
Retail Entrepreneurs

PurposeThe purpose of this paper is to explore the everyday tasks and activities undertaken by retailer entrepreneurs and owner/managers when they strategize. Specifically, it interrogates the nature of the intuitive, idiosyncratic strategic agency of a retail owner/manager.Design/methodology/approachThrough adopting a combination of phenomenological and narrative approaches, focussing on illuminating the everyday operational and strategic practices of one retail entrepreneur and owner/manager, a richly contextualized, ideographic account of the procedures and outcomes of their strategizing is provided.FindingsBy revealing narratives that are seldom obvious – often kept behind the counter, and not on display – the authors are able to unravel the social reality of the retailer's decision-making, and the influences of identity, connections with customers and community, emotions and the spirit, and love and family. This study also illuminates how entrepreneurs retrospectively make sense out of the messiness of everyday life particularly when juggling the melding of personal and business realities.Research limitations/implicationsThis paper explores the experiences and reflections of the decision-making of one retail entrepreneur manager within a particular business setting. However, the use of an ideographic approach allowed for an in depth investigation of the realities of strategic practices undertaken by a retail owner that may be extrapolated beyond this immediate context.Originality/valueThis paper develops original insights into the retailer as an individual, vis-à-vis an organization, as well as nuanced understanding of the actual nature of work undertaken by retail entrepreneurs and owner/managers. To this end, this paper contributes to the “strategy-as-practice” debate in the strategic management literature, and to narrative analysis and advances insights to the perennial question: “what is a retailer?”.

An integrated approach to evaluate the risk of adverse events in hospital sector

2018 ◽  
Vol 56 (10) ◽  
pp. 2187-2224 ◽  
Author(s):  
Miguel Angel Ortiz-Barrios ◽  
Zulmeira Herrera-Fontalvo ◽  
Javier Rúa-Muñoz ◽  
Saimon Ojeda-Gutiérrez ◽  
Fabio De Felice ◽  
...  
Keyword(s):  
Decision Making ◽  
Adverse Events ◽  
High Performance ◽  
Decision Aids ◽  
Integrated Approach ◽  
Healthcare Management ◽  
Vikor Method ◽  
Hospital Sector ◽  
Content Type ◽  
Novel Approach

PurposeThe risk of adverse events in a hospital evaluation is an important process in healthcare management. It involves several technical, social, and economical aspects. The purpose of this paper is to propose an integrated approach to evaluate the risk of adverse events in the hospital sector.Design/methodology/approachThis paper aims to provide a decision-making framework to evaluate hospital service. Three well-known methods are applied. More specifically are proposed the following methods: analytic hierarchy process (AHP), a structured technique for organizing and analyzing complex decisions, based on mathematics and psychology developed by Thomas L. Saaty in the 1970s; decision-making trial and evaluation laboratory (DEMATEL) to construct interrelations between criteria/factors and VIKOR method, a commonly used multiple-criteria decision analysis technique for determining a compromise solution and improving the quality of decision making.FindingsThe example provided has demonstrated that the proposed approach is an effective and useful tool to assess the risk of adverse events in the hospital sector. The results could help the hospital identify its high performance level and take appropriate measures in advance to prevent adverse events. The authors can conclude that the promising results obtained in applying the AHP–DEMATEL–VIKOR method suggest that the hybrid method can be used to create decision aids that it simplifies the shared decision-making process.Originality/valueThis paper presents a novel approach based on the integration of AHP, DEMATEL and VIKOR methods. The final aim is to propose a robust methodology to overcome disadvantages associated with each method.

Exploring female entrepreneurs’ marketing decisions with a heuristics and biases approach

2019 ◽  
Vol 34 (8) ◽  
pp. 623-643 ◽  
Author(s):  
Pouria Nouri ◽  
Narges Imanipour ◽  
Abdollah Ahmadikafeshani
Keyword(s):  
Decision Making ◽  
The Body ◽  
Incremental Innovation ◽  
Heuristics And Biases ◽  
Female Entrepreneurs ◽  
Managerial Implication ◽  
Content Type ◽  
Entrepreneurial Marketing ◽  
Positive Effects ◽  
Practical Implications

Purpose This study furthers the body of knowledge on entrepreneurial decision-making, entrepreneurial marketing and female entrepreneurs by exploring practical implications of heuristics and biases in female entrepreneurs’ marketing decisions. Heuristics and biases influence many entrepreneurial decisions. Moreover, some of the most important entrepreneurial decisions are marketing-related. Given that the entrepreneurial marketing behavior emanates from entrepreneurial thinking and decision-making, one may conclude that female entrepreneurs’ marketing decisions are susceptible to heuristics and biases. This paper aims to explore the outcomes of heuristics and biases in entrepreneurial marketing decisions. Design/methodology/approach Data were collected by conducting semi-structured interviews with 19 Iranian female biotech entrepreneurs and analyzed by thematic analysis. Findings The findings indicate that introducing pioneering products to the market, overestimating product’s market appeal, unprepared entry, underestimating the competition, overcoming entry impediments, entry postponement, growth, success in incremental innovation and failure in radical innovation are the main outcomes of the identified heuristics and biases in the female entrepreneurs’ marketing decisions. Practical implications This paper has some precious practical implications for marketers as well as female entrepreneurs running small businesses. Generally speaking, reducing the negative impacts of the identified heuristics and biases of this study while enhancing their positive effects will increase the chances of female entrepreneurs to compete and succeed in tumultuous markets. Furthermore, our most important managerial implication is regarding overconfidence, which was very common in the female entrepreneurs’ marketing decisions by having various positive and negative outcomes. Thus, female entrepreneurs should be careful of this fateful bias in their decisions by knowing the most common signs of overconfidence. Originality/value This paper is unique because of not only identifying the main heuristics and biases but also their major outcomes in entrepreneurs’ major marketing decisions. Moreover, this paper is a pioneer in exploring heuristics and biases in female entrepreneurs’ decisions.

“Rise of the middle of the pyramid in Africa”: theoretical and practical realities for understanding middle class consumer purchase decision making

2014 ◽  
Vol 31 (1) ◽  
pp. 27-38 ◽  
Author(s):  
Tendai Chikweche ◽  
Richard Fletcher
Keyword(s):  
Decision Making ◽  
Social Networks ◽  
Middle Class ◽  
Secondary Data ◽  
Product Performance ◽  
Purchase Decision ◽  
Content Type ◽  
Depth Interviews ◽  
Method Approach ◽  
Practical Implications

Purpose – The main purpose of this paper is to investigate the factors that influence the growing African middle class (middle of pyramid; MOP) consumers' purchase decision making. Design/methodology/approach – A mixed qualitative research method approach comprising in-depth interviews was used to collect data from middle of pyramid consumers in four countries. Secondary data analysis was used to complement the interviews. Findings – Key findings include the identification of three key intertwined influencers of branding, peer and social networks and aesthetics and product performance. Other influencers include technology and new products, distribution channels and family. Research limitations/implications – The focus on four countries has the potential to minimize the generalizability of findings from the study although the four countries used have a significant amount of middle class consumers in Africa. However, this does not detract from the findings of the study but actually provides a basis for further research into other emerging markets. Practical implications – Findings from the study provide practical insights for marketing managers who intend to serve this market, key of which are branding, use of social networks, online distribution and maximising technology. Originality/value – The paper expands the research agenda of the relatively new area of the MOP. By focusing on the MOP in Africa, the research expands existing knowledge beyond previous areas of focus of middle class studies that focus on China and India.

Shared leadership in entrepreneurial teams: a qualitative study

2019 ◽  
Vol 12 (3) ◽  
pp. 427-441
Author(s):  
Shiji Lyndon ◽  
Ashish Pandey
Keyword(s):  
Decision Making ◽  
Shared Leadership ◽  
Design Methodology ◽  
Investment Decisions ◽  
Qualitative Approach ◽  
Content Type ◽  
Entrepreneurial Teams ◽  
Depth Interviews ◽  
Practical Implications ◽  
Answering Questions

Purpose The purpose of this paper is to unravel the underpinnings of the phenomenon of shared leadership. The study was carried out with the objective of answering questions such as what is shared in shared leadership, what are individual and team level factors which lead to sharing and what are the outcomes of shared leadership. Design/methodology/approach The study adopted a qualitative approach. Eighteen in-depth interviews were conducted. The data were analysed using Nvivo 11 software. Findings The study found that in entrepreneurial teams while sharing leadership, cofounders share competencies, roles, vision, stress and decision-making. The study also reveals various individual and team level factors which facilitate shared leadership and its outcomes. Practical implications The study offers critical insights regarding the characteristics of individuals and team where shared leadership would work and hence can be used to understand the factors to be considered while forming teams. The study also has important insights for the investors regarding what dynamics to look for in individuals and teams before making investment decisions. Originality/value The inductive approach adopted in the study helps in understanding some of the basic underpinnings of the phenomenon of shared leadership which were not adequately answered by previous studies.

Improving the use of analytics and big data by changing the decision-making culture

2017 ◽  
Vol 55 (10) ◽  
pp. 2074-2088 ◽  
Author(s):  
Jane Elisabeth Frisk ◽  
Frank Bannister
Keyword(s):  
Decision Making ◽  
Big Data ◽  
Data Analytics ◽  
Design Approach ◽  
Action Research Project ◽  
Content Type ◽  
Use Of Data ◽  
Support Organizations ◽  
Novel Approach ◽  
Using Data

Purpose Evolving digital technologies continue to enable new ways to collect and analyze data and this has led some researchers to claim that skillful use of data analytics and big data can radically improve a company’s performance, but that in order to achieve such improvements managers need to change their decision-making culture and to increase the degree of collaboration in the decision-making process. The purpose of this paper is to create an increased understanding of how a decision-making culture can be changed by using a design approach. Design/methodology/approach The paper presents an action research project in which the authors use a design approach. Findings By adopting a design approach organizations can change their decision-making culture, increase the degree of collaboration and also reduce the influence of power and politics on their decision-making. Research limitations/implications This paper proposes a new approach to changing a decision-making culture. Practical implications Using data analytics and big data, a design approach can support organizations change their decision-making culture resulting in better and more effective decisions. Originality/value This paper bridges design and decision-making theory in a novel approach to an old problem.

A novel technique for evaluating and ranking green airlines: benchmarking-base comparison

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saleh Fahed Alkhatib ◽  
Yazan Khalid Abed-Allah Migdadi
Keyword(s):  
Decision Making ◽  
Content Type ◽  
Cause And Effect ◽  
Green Strength ◽  
Novel Approach ◽  
Global And Local ◽  
The Impact ◽  
Hierarchy Process ◽  
Ranking Technique

PurposeThis study aims to evaluate and rank green airlines by proposing a novel approach that integrates different multi-criteria decision-making (MCDM) techniques.Design/methodology/approachThree MCDM techniques were adopted: Decision-Making Trial and Evaluation Laboratory (DEMATEL) addressed the impact relationships between Airline Green Operations (AGOs) and classified them into cause and effect; analytical hierarchy process (AHP) prioritized these actions and found their global and local weights; and Techniques to Order Preferences by Similarity to Ideal Solution (TOPSIS) used the weighted actions to evaluate and rank 20 green airlines as a case study.FindingsDEMATEL outcomes provide the first AGOs impact relationships map (IRM), classify AGOs into cause and effect actions and provide better understanding how these green operations affect each other. According to the AHP outcomes, “GHG1and fuel” and “GHG2 and Energy” were the most important set of actions, respectively. Finally, a new evaluation and ranking for 20 green airlines has been presented.Practical implicationsThe AGOs IRM provides a better understanding of the airline green operations and how they affect each other. The new evaluation and ranking technique helps airlines to identify their green strength and weakness areas and supports their sustainability processes.Originality/valueThe increasing importance of AGOs evaluation and analysis highlights the importance of green airlines studies like this one. This study analyzed AGOs, their impact relationships, developed their IRM and provided a new worldwide green airline benchmarking base.

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