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.

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.

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.

scholarly journals The voice of dwellers – developing a place brand by listening to its residents

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ulla Hakala
Keyword(s):  
Decision Making ◽  
Conceptual Development ◽  
Place Branding ◽  
Research Area ◽  
Content Type ◽  
Case Examples ◽  
Face To Face ◽  
Decision Making Processes ◽  
E Mail

Purpose Listening to the customers has long been a key phrase and success element in product branding. This paper aims to highlight the importance of listening to residents during the branding of a place. The study explores ways of listening to residents to ensure they are heard and also discusses the challenges and benefits related to place branding flowing from having residents participate in decision-making processes. Design/methodology/approach Listening to residents and offering opportunities to participate requires place branders to fully attend to, comprehend and respond to residents’ comments, requests, ideas and feedback. This study reports on how two Nordic cities – Turku and Helsinki – listen to their residents. The data used comprise face-to-face interviews, telephone and e-mail conversations and documentary material. Findings Residents should not be considered as one homogeneous target; participation options and channels should be adapted to the demographics and geographic issues of the different regions and resident groups. Research limitations/implications The role of residents and the importance of listening are crucial features in the emerging concept of inclusive place branding (Kavaratzis et al., 2017); its future conceptual development could benefit from the case examples at hand. Practical implications City authorities should listen to residents and provide them with opportunities to actively contribute to decision-making. Other cities could learn from the examples introduced in the paper. Originality/value This paper documents two Nordic examples of cities putting into practice a policy of listening to the residents, a previously neglected research area.

A multiple criteria group decision-making approach for the assessment of small and medium-sized enterprise competitiveness

2019 ◽  
Vol 57 (2) ◽  
pp. 480-500 ◽  
Author(s):  
Joana M. Gonçalves ◽  
Fernando A.F. Ferreira ◽  
João J.M. Ferreira ◽  
Luís M.C. Farinha
Keyword(s):  
Decision Making ◽  
Evaluation System ◽  
Cognitive Mapping ◽  
Assessment System ◽  
Senior Managers ◽  
Content Type ◽  
Face To Face ◽  
Decision Making Processes ◽  
Constructivist Epistemology ◽  
Study Context

PurposeSmall- and medium-sized enterprises (SMEs) have become increasingly important in national and international markets because they contribute to the development of local and national economies. SMEs often face serious challenges when competing with multinational companies. The purpose of this paper is to develop a method for assessing SMEs’ competitiveness.Design/methodology/approachBased on a constructivist epistemology, this study makes an integrated use of cognitive mapping and the measuring attractiveness by a categorical-based evaluation technique (MACBETH). To this end, face-to-face sessions were conducted with a panel of entrepreneurs and senior managers who deal with the challenges of maintaining SME competitiveness every day. The proposed assessment system was tested and validated by the panel members.FindingsThe methodological processes adopted in this study provide promising results for decision makers seeking to identify the most competitive SMEs. Specifically, the results emphasize, among other points, the importance of innovation and the human dimension to gaining competitive advantages.Research limitations/implicationsThe evaluation system developed in this study is extremely versatile and confirms the usefulness of integrating cognitive mapping and MACBETH to facilitate evaluations of SME competitiveness. However, due to its idiosyncratic and process-oriented nature, generalizations need to be done with caution.Practical implicationsThe proposed method can be valuable to researchers seeking to develop mechanisms for evaluating SMEs’ entrepreneurial performance and include specialized know-how and sensemaking in organizational decision-making processes.Originality/valueThe integrated use of cognitive maps and MACBETH contributes to a better understanding of how to assess SMEs’ competitiveness. No prior work reporting the use of this dual methodology in this study context has been found.

An exploration of the choice to comply voluntarily with SOX section 404(b)

2019 ◽  
Vol 35 (1) ◽  
pp. 93-110
Author(s):  
Alan Blankley ◽  
David Hurtt ◽  
Jason MacGregor
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Small Businesses ◽  
Small Companies ◽  
Section 404 ◽  
Content Type ◽  
Sarbanes Oxley ◽  
Financial Perspective ◽  
The Law ◽  
Several Delays

Purpose Central to the Sarbanes–Oxley Act was a requirement that every company have an audit of its internal control over financial reporting. However, there were concerns that this requirement was overly burdensome, from a financial perspective, for small businesses. This concern promoted several delays in enforcing the law for small companies and ultimately caused congress to permanently exempt small businesses. Yet, there are some small companies that voluntarily elect to comply with the law. The purpose of this paper is to explore why these companies elect to incur these costly audits. Design/methodology/approach Using a sample of 5,834 non-accelerator US firms, this paper uses a robust logistic regression model to examine why some firms comply voluntary with SOX Section 404(b). Findings This study shows that small companies getting audits of internal controls may be doing so to restore investor confidence after reporting failures, to appear credible prior to raising funds, as a response to organizational changes, or in anticipation of being required to comply. Practical implications This study provides regulators with an improved understanding of when it is necessary to implement mandatory rather than voluntary guidance. Originality/value This study is the first to document why a client would voluntarily comply with SOX Section 404 (b).

The importance of information service offerings of collaborative CRMs on decision-making in B2B marketing

2019 ◽  
Vol 35 (3) ◽  
pp. 470-482 ◽  
Author(s):  
José Ramón Saura ◽  
Pedro Palos-Sanchez ◽  
Alicia Blanco-González
Keyword(s):  
Decision Making ◽  
Internal Control ◽  
Information Service ◽  
Equation Modeling ◽  
External Control ◽  
Data Set ◽  
Content Type ◽  
B2b Marketing ◽  
Control Factors ◽  
The Relationship

Purpose The importance of information service offerings is directly linked to decision-making processes for buying and selling in business-to-business (B2B) companies. B2B companies intend to offer information that helps other companies choose a product or service. This paper aims to identify the relationship between the types of information offered by a B2B company in its B2B marketing strategy and the decision-making of the companies which buy products and services. Design/methodology/approach For this purpose, a data set has been consulted that contains 439 observations that are the result of transactions using customer relationship managements (CRMs) of B2B-type companies. A total of 9 different products were consulted from 20 B2B vendors that manage their transactions with CRM software for B2B operations. A total of 439 different transactions were recorded by these vendors during 2018 (n = 439) with their information service offerings strategies. The results were analyzed with the partial least squares structural equation modeling. Findings The results showed that the significance of the relationship between internal control factors and external control factors (H4) is the strongest one when using information services offerings strategies in a B2B environment. The results of this research can help B2B companies to improve their decision-making strategies and to define the structure of the information offered in their B2B marketing plans. Originality/value This research makes a contribution to an existing gap, which is to identify what the most important information is for purchasing companies in B2B environments and the relationship with this information, so that B2B purchasers can make good decisions thanks to the information service offerings strategy of the selling companies using CRMs.

Kenya court ruling sets stage for new controversies

2017 ◽  
Keyword(s):  
Decision Making ◽  
Government Policy ◽  
Presidential Election ◽  
Court Ruling ◽  
Foreign Investments ◽  
Public Funds ◽  
Content Type ◽  
The Law ◽  
Business As Usual

Significance The unprecedented move overturned President Uhuru Kenyatta’s apparently comfortable victory over Raila Odinga by 54.2% of the vote to 44.7%. The court ruled on the basis of what it said was a failure of the Independent Electoral and Boundaries Commission (IEBC) to follow the law in the transmission of the results. The court has 21 days to release a final judgment giving a detailed justification, while the IEBC must hold a fresh presidential election within 60 days. Impacts Further use of public funds for the election will exacerbate fiscal strains for the next presidency. Delays to government policy and decision-making will slow domestic and foreign investments. Although unlikely, an Odinga presidency could introduce less business-as-usual policies towards large investors.

Place development for international retirement migrants: a decision-making process model

2019 ◽  
Vol 12 (3) ◽  
pp. 449-468
Author(s):  
Ann Suwaree Ashton ◽  
Noel Scott ◽  
Therdchai Choibamroong
Keyword(s):  
Decision Making ◽  
Qualitative Study ◽  
Process Model ◽  
Content Type ◽  
Retirement Migration ◽  
Face To Face ◽  
Analysis Technique ◽  
The Usa ◽  
Decision Making Processes ◽  
Analyse Data

Purpose This study aims to investigate the decision-making processes of international retirement migrants. The development of a place in response to the high demand for international retirement migration has become an important strategy for stakeholders within host destinations; of particular interest is international retirement migrant behaviour and intention to stay and retire in a foreign country. Design/methodology/approach This research presents the results of a qualitative study using face-to-face interview techniques. Content analysis technique was used to analyse data from interviews with 33 international retirees in Thailand. Findings Destination stakeholders must consider creating awareness of the destination through WOM, trustworthy websites and government channels, which migrants evaluate a destination based on pre-retirement visits that create attachment and emotional feelings for the place, and finally, the decision-making processes of short stay, semi-permanent and permanent migrants. Research limitations/implications This qualitative study investigated migrants from Europe, Australia and the USA. An understanding of IR migrants from Asia needs further research. Practical implications The results can be used as guidelines for government, hospitality and tourism stakeholders. IR migrants want different destination attributes to mainstream tourists, especially a peaceful environment, mild weather (not too cold or hot), and to live among locals. Originality/value This study examines migrant decision-making processes. The results provide a theoretical foundation for how IR migrants decide to retire overseas. This comprises three components: destination awareness, secondly, evaluation of the destination’s resources, and finally, the decision and implementation of their plans.

Is childhood a disability? Using Mental Capacity Tribunals and the Deprivation of Liberty Safeguards to shield children's capacity to consent to and refuse medical treatment

2014 ◽  
Vol 19 (2) ◽  
pp. 96-106 ◽  
Author(s):  
Robin Mackenzie ◽  
John Watts
Keyword(s):  
Mental Health ◽  
Decision Making ◽  
Medical Treatment ◽  
Mental Health Treatment ◽  
Mental Capacity ◽  
Best Interests ◽  
Legal Analysis ◽  
Content Type ◽  
Decision Making Capacity ◽  
The Law

Purpose – The purpose of this paper is to demonstrate that the common and statutory law governing children's capacity or competence to consent to and to refuse medical treatment is unsatisfactory and to suggest solutions. Design/methodology/approach – Critical legal analysis of the law on assessing minors’ decision-making capacity in relation to legal recognition of their consent to and refusal of medical treatment. Findings – Without legal mechanisms which protect both children and their rights, all children and young people are effectively disabled from exercising age and capacity-related autonomy and participation in decisions affecting their lives. Yet in English law, inconsistencies between legal and clinical measures of decision-making capacity, situations where compulsory medical or mental health treatment is lawful, and tensions between rights and duties associated with human rights, autonomy, best interests and protections for the vulnerable create difficulties for clinicians, lawyers and patients. Research limitations/implications – As the paper acknowledges in its recommendations, the views of stakeholders are needed to enrich and inform legal reforms in this area. Originality/value – The paper makes suggestions to amend the law and clinical practice which are original and far reaching. The paper suggests that in order to observe children's rights while protecting them appropriately, the Mental Capacity Act 2005 and Deprivations of Liberty Safeguards should be applied to minors. The paper recommends the establishment of Mental Capacity Tribunals, similar in nature and purpose to Mental Health Tribunals, to provide legal safeguards and mechanisms to foster the supported decision-making envisaged in recent United Nations Conventions.

Strength-based approaches for small businesses: analysis from employees and managers in Western Australian motor vehicle industry

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Small Businesses ◽  
Motor Vehicle ◽  
Employee Selection ◽  
Temporary Employment ◽  
New Approach ◽  
Content Type ◽  
Face To Face ◽  
Strength Based ◽  
Motor Vehicle Industry ◽  
Western Australian

Purpose The authors wanted to find out if small businesses adopted strengths-based approaches and whether they were beneficial Design/methodology/approach The interviewees came from small businesses in Western Australia with between five and 19 employees in the motor vehicle industry where there are high-value products. There were 30 participants from 17 businesses, including owners, managers and employees, such as technicians, mechanics and tire fitters. Data was gathered using semi-structured face-to-face interviews of about 40 minutes. Findings The researchers found that the managers used an SBA to select employees during periods of temporary employment. But they did not use an SBA for employee selection during interviews, training or performance evaluations. Originality/value The authors said it was the first empirical study of the SBA in small businesses. It had practical lessons for businesses. First, the data suggested poor awareness of SBA by managers and many need practical guidance from small business advisors. Second, managers found it hard to assess strengths and relied on observations. Software tools could help. Finally, the characteristics of small businesses could help them adopt the new approach. These include lots of face-to-face interaction between managers and employees.

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