Fast or slow? Decision-making styles in small family and nonfamily firms

2018 ◽  
Vol 8 (2) ◽  
pp. 113-125 ◽  
Author(s):  
Duarte Pimentel ◽  
Marc Scholten ◽  
Joao Pedro Couto
Keyword(s):  
Decision Making ◽  
Family Firms ◽  
Theoretical Perspective ◽  
Family Members ◽  
Family Participation ◽  
Rational Decision ◽  
Content Type ◽  
Small Family ◽  
Rational Decision Making ◽  
Decision Making Styles

Purpose The purpose of this paper is to explore differences in the decision-making styles between family and nonfamily firms, while assessing how family participation relates to the use of decision-making styles within family firms. Design/methodology/approach The empirical evidence is provided by a sample of 155 firms, located in the Azores, Portugal, 82 family controlled and 73 nonfamily controlled firms. All firms included in the sample are small-sized privately owned enterprises. Business owners and managers responded to a decision-making styles questionnaire, followed, in the case of family firms, by the report of the number of family members actively involved in the business. Findings Results show that there are no differences in the use of rational decision making between family and nonfamily firms. However, nonfamily firms show higher levels of experiential decision making than family firms. Results also show that family participation plays a key role in guiding the decisional process, by promoting the use experiential decisions and inhibiting the adoption of a rational decision-making styles in family firms. Research limitations/implications From a theoretical perspective, this study opens the door to new research on an under investigated topic in the family business literature. It contributes with initial notions that may help profile the decisional style within small family firms, while revealing how family participation affects it. Thus, creating a fertile ground of discussion that can be an impulse for more research in this area. Practical implications From an applied perspective, assessing the influence of family participation in the adoption of a decisional style is potentially valuable for practitioners as well as for owners and managers. Providing them with clues that may help them better understand the basis of their decisions which can benefit their relations with other family members, as with customers, partners and suppliers that play a key role in the firm’s growth, profitability and adaptability. Social implications From a social point of view, showing that family firms tend to be rational in their decisions may help create a more reputable and credible image surrounding these firms that are sometimes perceived as less professional than nonfamily firms. Thus, a more solid reputability can help improve their relationship with important partner institutions (e.g. financial, governmental), becoming more attractive to private and public investment, which can translate into win-win situations. Originality/value This study responds to a gap in the literature, by exploring the use of experiential vs rational decision-making styles in small family and nonfamily firms. This study also contributes to the understanding of the decision making within family firms, by assessing the role of family participation in the adoption of a decisional style.

Influence of age and gender on decision-making models and leadership styles of non-profit executives in Texas, USA

2016 ◽  
Vol 24 (2) ◽  
pp. 186-203 ◽  
Author(s):  
Francis C. Uzonwanne
Keyword(s):  
Decision Making ◽  
Leadership Styles ◽  
Leadership Style ◽  
Business Strategies ◽  
Rational Decision ◽  
Content Type ◽  
Non Profit ◽  
Rational Decision Making ◽  
Significant Difference ◽  
Decision Making Models

Purpose The purpose of this study is to fill the gap by investigating the relationship between age and other demographics on decision-making and leadership styles of executives in the non-profit sector. Design/methodology/approach This study is a quantitative research using correlation analysis and analysis of variance. The quantitative approach establishes facts, makes predictions and tests stated hypothesis and used the Pearson correlation coefficient, the ANOVA and the two-way analysis of variance. This study used surveys to collect data. Findings H1 states that there will be no significant difference in the decision-making models used among non-profit organizational leaders (rational, intuitive, dependent, spontaneous and avoidant) based on demographic variables: gender and age. H2 states that there will be no significant difference in the leadership style used among non-profit organizational executives (selling, telling, delegating and participating) and different dimensions of demographic variables: gender and age. Research limitations/implications This study explored the relationship between the demographics, age and gender and the decision-making models (rational, intuitive, dependent, spontaneous and avoidant) and leadership styles (selling, telling, delegating and participating) of executives in non-profit organizations. The age of the executives also showed to be important factors that influenced executive’s leadership styles and decision-making models as well. Practical implications Rational decision-making as reflected to in this study has been used by older, possibly more experienced non-profit executives. This model is favorable towards making decisions on complicated issues. The final choice rational decision-makers select will maximize the outcome; it is assumed that the decision-maker will choose the alternative that rates the highest and get the maximum benefits (Robbins and Decenzo, 2003, pp. 141-142). The researcher suggests that non-profit executives, especially the younger executives, should attend management and leadership conferences that focus on rational decision-making models as concerns business strategies and making the best choices based on possible alternatives. Social implications Rational decision-making as reflected to in this study has been used by older, possibly more experienced non-profit executives. This model is favorable towards making decisions on complicated issues. The final choice rational decision-makers select will maximize the outcome; it is assumed that the decision-maker will choose the alternative that rates the highest and get the maximum benefits (Robbins and Decenzo, 2003, pp. 141-142). The researcher suggests that non-profit executives, especially the younger executives, should attend management and leadership conferences that focus on rational decision-making models as concerns business strategies and making the best choices based on possible alternatives. Originality/value This is an original piece of research that contributes to the literature on leadership style.

Small family business in Russia: formal or informal?

2018 ◽  
Vol 38 (9/10) ◽  
pp. 809-822 ◽  
Author(s):  
Alexander Chepurenko
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Members ◽  
Family Businesses ◽  
Entrepreneurial Activity ◽  
Small Scale ◽  
Content Type ◽  
Small Family ◽  
Scale Family ◽  
Russian State

Purpose The purpose of this paper is to deal with informal entrepreneurial activity of micro and small family businesses in the specific transitional environment. Design/methodology/approach The paper uses two cases – an informal micro business (“marginal” family business), and a formal retail small firm (“simpleton” family firm), respectively, of a panel conducted in 2013–2015 in Moscow. Findings First, the real distribution of responsibilities between family members is informal; it relies more on interpersonal trust and “common law.” Second, exactly the ease of governing such trust-based businesses for the founders’ generation sets limits of succession of small-scale family businesses. Third, as trust in the state is very low, the policy of Russian authorities to quickly force informal entrepreneurs to become legalized is substantially wrong; the results would be either a transformation of “simpleton” into “marginal” businesses or quitting business. Research limitations/implications Research limitations of the study are the number of observations and the localization of the panel only in the capital of Russia. Practical implications The fundamental failure of Russian State policy toward small-scale family businesses is its attempt to convince “marginal” to formalize and to oppress “simpleton” family businesses pushing them into informality. In fact, it should be designed vice versa: tolerate “marginal” businesses and let them to “live and die” while shaping a friendly environment for “simpleton” family firms. Originality/value The paper argues that the most important facet of informality in small family entrepreneurship is the informal property rights and governance duties’ distribution among the family members.

Examining Decision Making Styles in Patients with Lymphoma and Multiple Myeloma Considering Autologous Stem Cell Transplantation.

Blood ◽  
2007 ◽  
Vol 110 (11) ◽  
pp. 3322-3322
Author(s):  
Olabunmi A. Agboola ◽  
Paula Edwards ◽  
Christopher R. Flowers
Keyword(s):  
Decision Making ◽  
Multiple Myeloma ◽  
Stem Cell ◽  
Stem Cell Transplantation ◽  
Autologous Stem Cell Transplantation ◽  
Need For Cognition ◽  
Treatment Decisions ◽  
Rational Decision ◽  
Rational Decision Making ◽  
Decision Making Styles

Abstract The assessment of the risks and benefits involved in autologous stem cell transplantation (ASCT) remains a challenging task commonly faced by patients (pts) with lymphoma, multiple myeloma (MM), and other cancers. Individuals’ decision-making styles can influence how pts evaluate complex treatment decisions. Methods: To examine how pts with lymphoma and myeloma make treatment decisions we performed a pilot study in which we administered an 80-item questionnaire to assess pts’: Desired Role in decision making, Need for Cognition, Need for Structure, and General Decision Making style. During the visit, the physician and pt discussed possible treatment options, and a 38-item post-visit questionnaire was administered to assess patients’ strength of preference for ASCT, perceptions of physician and caregiver’s preferences, and decision satisfaction. Questions were derived from previously validated questionnaires and used 5-point Likert scales. Results: Questionnaires were administered to 25 pts (9 aggressive NHL, 9 indolent NHL, 4 Hodgkin lymphoma, 1 MM, and 2 undergoing evaluation for lymphoma). 72% of pts were male and 68% were married with a median age for the group of 50 years (Range 22–83). Pts had received a median of 1 prior regimen (range 0–4). 36% of pts rated their current health as excellent/very good, 32% good, and 32% fair/poor. All pts completed all pre-visit questions. 76% of pts completed all post-visit questions. Most pts expressed a desire that doctors make treatment decisions alone (68% agree/strongly agree) or with pt input (72%). Fewer pts believed they should make treatment decisions alone (32%) or with a doctor’s input (48%). 64% of pts had high scores for rational decision making style, whereas 28% scored high for an intuitive style, and only 4% high for a spontaneous style of decision making (Distribution shown in table). However, few pts expressed a strong need for structure (16%) or need for cognition (4%) in their decision making process. 89% of pts felt satisfied with the information they received for decision making and satisfied and comfortable with their decision. However, 32% of pts wanted clearer advice. Conclusions: Examining pts decision making styles during the process of care is feasible and can uncover pt characteristics that are relevant for improving treatment discussions. Pts in this sample tended to use rational decision making styles but wanted the physician to assume control for decision making. Additional studies are needed examine these factors in larger populations of lymphoma and MM pts, understand their associations with demographic variables, and design and test decision support systems that account for pt preferences .and help pts and hematologists with treatment selection. Decision Making Style Values Decision Making Syle GDMS-Intuitive GDMS-Dependent GDMS-Rational GDMS-Spontaneous Need for Structure Need for Cognition Median 18 17 20 12 38 57 Min 10 10 8 8 27 40 Max 22 21 25 20 51 73 Possible Range 5–25 5–25 5–25 5–25 11–55 18–90

Examining Decision Making Styles in Patients with Sickle Cell Disease (SCD) Regarding Allogeneic Stem Cell Tranplantation (ASCT)

Blood ◽  
2008 ◽  
Vol 112 (11) ◽  
pp. 168-168
Author(s):  
Olabunmi A. Agboola ◽  
Pareen J. Shenoy ◽  
Paula J. Edwards ◽  
James R. Eckman ◽  
Christopher R. Flowers
Keyword(s):  
Decision Making ◽  
Sickle Cell Disease ◽  
Sickle Cell ◽  
Need For Cognition ◽  
Treatment Decisions ◽  
Treatment Selection ◽  
Rational Decision ◽  
Cell Disease ◽  
Rational Decision Making ◽  
Decision Making Styles

Abstract Background: ASCT is currently the only curative option of cure for patients (pts) with sickle-cell disease. Assessing the risk and benefits of ASCT in pts with SCD is challenging due to variability in the morbidity and mortality of the disease and ASCT for individual pts. The impact of transplantation on quality of life, patient understanding of ASCT, and physician factors, all influence treatment selection. Individuals’ decision-making styles can influence how patients evaluate complex treatment decisions and thus how they view ASCT. Methods: To examine how patients with SCD make treatment decisions we performed a pilot study in which we administered an 80-item questionnaire to assess pts’: Desired Role in decision making, Need for Cognition, Need for Structure, Personal Fear of Invalidity, and General Decision Making style. During the visit, the research team and pt discussed the risks and benefits of ASCT and how they view their current treatment. Then, a 38-item post-visit questionnaire was administered to assess patients’ strength of preference for ASCT, perceptions of physician and caregiver’s preferences, and decision satisfaction. Questions were derived from previously validated questionnaires and used 5-point or 6-point Likert scale. Results: Questionnaires were administered to 25 pts (6 Sickle-Hemoglobin C (SC), 18 sickle cell anemia (SS), and 1 Sickle Beta-Thalassemia) undergoing evaluation of sickle cell disease. Patients were 18–71 years of age with 36% of pts being male. On an average, pts had experienced 4–7 episodes of sickle-cell crisis (min 0–3, max 16+). 20% of pts rated their current health as excellent/very good, 44% good, and 36% fair/poor. All pts completed all pre-visit and post-visit questions. Most pts expressed a desire that doctors make treatment decisions alone (68% agree/strongly agree) or with pt input (64%). An equally high number of pts (64%) believed they should make treatment decisions alone or with a doctor’s input. 64% of pts had high scores for rational decision making style, whereas 40% scored high for an intuitive style, 24% scored high for dependent style, and only 4% high for an avoidant style of decision making (Distribution shown in table). 72% of pts felt satisfied with the information they received for decision making and 88% were satisfied with their decision. However, 44% of pts wanted clearer advice. Conclusions: Examining pts decision making styles during the process of care is feasible and can uncover pt characteristics that are relevant for improving treatment discussions. Pts in this sample tended to use rational decision making styles but wanted clearer advice. Additional studies are needed examine these factors in larger populations of pts with sickle cell disease, understand their associations with demographic variables, and design and test decision support systems that help pts and hematologists with treatment selection. General Decision Making Style (GDMS) Values Rational Intuitive Dependent Avoidant Spontaneous Need for Structure Need for Cognition Median 20 19 17 12 12 44 52 Min 8 10 10 6 7 28 18 Max 25 25 25 21 19 58 63 Possible Range 5–25 5–25 5–25 5–25 5–25 11–66 18–90

Evidence on rationality and behavioural biases in investment decision making

2016 ◽  
Vol 8 (4) ◽  
pp. 270-287 ◽  
Author(s):  
Satish Kumar ◽  
Nisha Goyal
Keyword(s):  
Decision Making ◽  
Path Model ◽  
Decision Making Process ◽  
Individual Investors ◽  
Significant Implication ◽  
Rational Decision ◽  
Content Type ◽  
Rational Decision Making ◽  
Significant Difference ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between rational decision-making and behavioural biases among individual investors in India, as well as to examine the influence of demographic variables on rational decision-making process and how those differences manifest themselves in the form of behavioural biases. Design/methodology/approach Using a structured questionnaire, a total of 386 valid responses have been collected from May to October 2015. Statistical techniques like t-test, analysis of variance (ANOVA) and Fisher’s least significant difference (LSD) test have been used in this study. Structural equation modelling (SEM) has been used to analyse the relationship between rational decision-making and behavioural biases. Findings The findings show that the structural path model closely fits the sample data, indicating investors follow a rational decision-making process while investing. However, behavioural biases also arise in different stages of the decision-making process. It further explores that gender and income have a significant difference with respect to rational decision-making process. Male investors are more prone to overconfidence and herding bias in India. Research limitations/implications The findings of the study have significant implication for the individual investors. It is recommended that if individuals are aware about the biases, they may become alert before taking irrational investment decisions. Originality/value To best of the authors’ knowledge, the present study is a first of its kind to investigate the relationship between rational decision-making and behavioural biases among individual investors in India.

scholarly journals THE EFFECT OF DARK TRIAD TRAITS ON DECISION-MAKING STYLES

2021 ◽  
Vol 14 (1) ◽  
pp. 74-93
Author(s):  
Radka Čopková ◽  
Zuzana Christenková
Keyword(s):  
Decision Making ◽  
Personality Traits ◽  
Big Five ◽  
Structural Equation ◽  
Real Life ◽  
Dark Triad ◽  
Equation Modeling ◽  
Rational Decision ◽  
Rational Decision Making ◽  
Decision Making Styles

The aim of present study was to explain the relationships of Dark Triad with decision-making styles. We assumed an association of decision-making styles with the Dark Triad traits that represent aversive personality traits, because previous studies identified relationships between the Dark Triad and the Big Five features and similarly, the relationships of the Big Five traits with decision-making styles have been confirmed. The research was conducted on a sample of 127 participants (M = 40.65 years; SD = 4.68). The sample consisted of 55.1% women (n = 70) and 44.9% men (n = 57). The data were subjected to correlation analysis and structural equation modeling. Machiavellianism correlated significantly positively with avoidant, dependent, and spontaneous decision-making styles. Narcissism correlated significantly positively with spontaneous decision-making style and significantly negatively with rational decision-making style. Psychopathy correlated significantly positively with avoidant and spontaneous decision-making style and significantly negatively with rational decision-making style. The value of the results lies in revealing what decision-making strategies are used by people with different socially aversive personality traits. Finding explanations for why some people use non-adaptive decision-making styles and experience the negative results of their decisions in real life, which cause their overall discomfort, can be explained by their dark features.

Entrepreneurial decision-making and family social capital

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cizhi Wang ◽  
Giulia Flamini ◽  
Kai Wang ◽  
Rong Pei ◽  
Chiyin Chen
Keyword(s):  
Decision Making ◽  
Social Capital ◽  
Family Firms ◽  
Family Members ◽  
Chinese Family ◽  
Content Type ◽  
Family Social Capital ◽  
The Family ◽  
Entrepreneurial Decision ◽  
The Impact

PurposeThe purpose of this paper is to adopt a collective perspective in the study of entrepreneurial decision-making processes and empirically analyse the ways in which social relationships between family members can shape their collective entrepreneurial decision-making behaviour (ED).Design/methodology/approachThis paper considers the family social capital (FSC) in inducing overall conformity to the focal family member's decision to exploit an opportunity. In terms of the seminal construct of social capital, the authors propose three FSC dimensions that can be used to induce conformity: structural, relational and cognitive dimensions. Then, the authors design questionnaires to collect data pertaining to the relationships between the family members' ED and the FSC. Finally, the authors collect 152 valid questionnaires from Chinese family firms.FindingsThe data analysis consists of two parts. The first section of this paper analyses conformity by testing the discriminant validity of models. Regression analysis is then used to test the relationship between family members' ED and the FSC. Significant relationships between the cognitive dimension of FSC and the entrepreneur's decision-making are found.Originality/valueThe research contributes towards academic literature concerning both entrepreneurship and social capital. On the one hand, this paper is one of the rare pieces of entrepreneurial research that responds to the call for the study of entrepreneurship from a collective perspective. On the other hand, our study quantitatively tests the impact of FSC at a multidimensional level. It provides conclusions regarding the social influence of other family members and provides insights into social capital by studying entrepreneurship from a social/community perspective.

Contingent use of rational, intuitive and political decision-making in R&D

2019 ◽  
Vol 58 (6) ◽  
pp. 997-1020 ◽  
Author(s):  
Linn Marie Kolbe ◽  
Bart Bossink ◽  
Ard-Pieter de Man
Keyword(s):  
Decision Making ◽  
Innovation Process ◽  
High Tech ◽  
Rational Decision ◽  
Political Decision ◽  
Content Type ◽  
Rational Decision Making ◽  
Decision Making Processes ◽  
Political Decision Making ◽  
Over Time

Purpose The purpose of this paper is to gain insight into the contingent use of rational, intuitive and political decision-making in R&D. Design/methodology/approach This research is based on a study in an R&D department of a multinational high-tech firm in the Netherlands. The study consists of a case study design, focusing on four embedded cases, longitudinally studying each case. Findings The literature distinguishes three dimensions of innovation decision-making processes: rational, intuitive and political. By studying these interwoven dimensions over time, this study finds that the dominant use of each of these dimensions differs across the innovation process. There is an emphasis on intuitive decision-making in an early phase, followed by more emphasis on political decision-making, and moving to more emphasis on rational decision-making in a later phase of the R&D process. Furthermore, the predominant choice in a specific innovation phase for one of the three decision-making dimensions is influenced by the decision-making dimension that is dominantly employed in the preceding phase. Research limitations/implications This study contributes to the innovation decision-making literature by developing and applying a model that distinguishes rational, intuitive and political decision-making dimensions, the interactions among these dimensions in innovation decision-making in R&D, and the contingency of these dimensions upon the innovation phase. It calls for further research into the contingent nature of innovation decision-making processes. Practical implications For practitioners this study has two relevant insights. First it highlights the importance and usefulness of intuitive and political decision-making in addition to the prevailing emphasis on rational decision-making. Second, practitioners may be more alert to consciously changing their dominant decision-making approach across the phases of the innovation process. Third, companies may adjust their human resource policies to this study’s findings. Originality/value The literature on rational, intuitive and political decision-making is quite extensive. However, research has hardly studied how these decision-making dimensions develop in conjunction, and over time. This paper reports on a first study to do so and finds that the dominant use of these dimensions is contingent upon the phase of the R&D process and on the decision-making dimensions used in earlier phases. The study suggests that using a contingency approach can help to further integrate the debate in research and practice.

Private tutoring and the subjective rationalities of parents: the experiences in South Korea and Singapore

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Charlene Tan
Keyword(s):  
Decision Making ◽  
Private Tutoring ◽  
Original Model ◽  
Decision Making Process ◽  
Rational Decision ◽  
Dynamic Interactions ◽  
Content Type ◽  
Rational Decision Making ◽  
Process And Outcome ◽  
Shed Light

PurposeThis article proposes a model of subjective rationalities to shed light on the global phenomenon of parental reliance on private tutoring for their children. The model is illustrated using the examples of the rational decision-making process and outcome of parents with regards to enrolling their children in private tutoring in South Korea and Singapore.Design/methodology/approachThis is a theoretical paper that relies on a critical review of official documents, academic publications and newspaper reports.FindingsThis article proposes an original model to shed light on the global phenomenon of parental reliance on private tutoring for their children. The model highlights the following: the dynamic interactions between parents, education policy and private tutoring; the active role of private tutoring providers; and the socio-culturally embedded and complex nature of educational decisions.Research limitations/implicationsThis is a conceptual paper that proposes a theoretical model, so there is no empirical data.Originality/valueThis article fills an existing research gap on the dynamic interactions between the parents, education policy and private tutoring. It offers an original model that illuminates the rational decision-making process and outcome of parents that pertains to private tutoring for their children.

scholarly journals The Effects of Perceived Decision-Making Styles on Evaluations of Openness and Competence That Elicit Collaboration

2019 ◽  
Vol 46 (1) ◽  
pp. 124-139
Author(s):  
Ming-Hong Tsai ◽  
Nadhilla Velda Melia ◽  
Verlin B. Hinsz
Keyword(s):  
Decision Making ◽  
Social Perception ◽  
Idea Generation ◽  
Rational Decision ◽  
Generation Task ◽  
Rational Decision Making ◽  
Decision Making Styles ◽  
Intuitive Decision Making

When interacting with a task partner, individuals often rely upon characteristics they infer about their partner to determine their level of collaboration with the partner. To explore social perception processes related to collaboration, we examined perceptions of an actor’s decision-making style as predictors. Using different methods in various research settings, we found that compared with perceptions of an actor’s intuitive decision-making style or of a nonspecific decision-making style, perceptions of an actor’s rational decision-making style were more positively associated with inferences of the actor’s openness and competence, both of which were in turn associated with the perceiver’s collaborative intention with the actor. Intentions to engage in mutual collaboration were also positively associated with performance in an idea generation task. Therefore, our research offers a novel illustration of how to enhance collaboration based on perceptions of openness and competence inferred from others’ rational rather than intuitive decision-making style.

Sign in / Sign up

Export Citation Format

Share Document