scholarly journals The representativeness heuristic at work in decision-making: building blocks and individual-level cognitive and behavioral factors

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ilaria Galavotti ◽  
Andrea Lippi ◽  
Daniele Cerrato
Keyword(s):  
Decision Making ◽  
Conceptual Framework ◽  
Decision Rule ◽  
Building Blocks ◽  
Stopping Rule ◽  
Behavioral Factors ◽  
Content Type ◽  
Individual Level ◽  
Representativeness Heuristic ◽  
Search Rule

PurposeThis paper aims to develop a conceptual framework on how the representativeness heuristic operates in the decision-making process. Specifically, the authors unbundle representativeness into its building blocks: search rule, stopping rule and decision rule. Furthermore, the focus is placed on how individual-level cognitive and behavioral factors, namely experience, intuition and overconfidence, affect the functioning of this heuristic.Design/methodology/approachFrom a theoretical standpoint, the authors build on dual-process theories and on the adaptive toolbox view from the “fast and frugal heuristics” perspective to develop an integrative conceptual framework that uncovers the mechanisms underlying the representativeness heuristic.FindingsThe authors’ conceptualization suggests that the search rule used in representativeness is based on analogical mapping from previous experience, the stopping rule is the representational stability of the analogs and the decision rule is the choice of the alternative upon which there is a convergence of representations and that exceeds the decision maker's aspiration level. In this framework, intuition may help the decision maker to cross-map potentially competing analogies, while overconfidence affects the search time and costs and alters both the stopping and the decision rule.Originality/valueThe authors develop a conceptual framework on representativeness, as one of the most common, though still poorly investigated, heuristics. The model offers a nuanced perspective that explores the cognitive and behavioral mechanisms that shape the use of representativeness in decision-making. The authors also discuss the theoretical implications of their model and outline future research avenues that may further contribute to enriching their understanding of decision-making processes.

The value of sociality

foresight ◽  
2014 ◽  
Vol 16 (4) ◽  
pp. 309-328 ◽  
Author(s):  
Evgeniya Lukinova ◽  
Mikhail Myagkov ◽  
Pavel Shishkin
Keyword(s):  
Decision Making ◽  
Utility Function ◽  
Social Relationship ◽  
Social Utility ◽  
Content Type ◽  
Individual Level ◽  
Know How ◽  
General Utility ◽  
The Social ◽  
Individual Decisions

Purpose – This paper aims to study the value of sociality. Recent experimental evidence has brought to light that the assumptions of the Prospect Theory by Kahneman and Tversky do not hold in the proposed substantive domain of “sociality”. In particular, the desire to be a part of the social environment, i.e. the environment where individuals make decisions among their peers, is not contingent on the framing. Evolutionary psychologists suggest that humans are “social animals” for adaptive reasons. However, entering a social relationship is inherently risky. Therefore, it is extremely important to know how much people value “sociality”, when the social outcomes are valued more than material outcomes and what kinds of adaptations people use. Design/methodology/approach – We develop a new theory and propose the general utility function that features “sociality” component. We test the theory in the laboratory experiments carried out in several countries. Findings – Our results suggest that when stakes are low the theory of “sociality” is successful in predicting individual decisions: on average, people do value “sociality” and it surpasses the monetary loss. Originality/value – The main contribution of this paper is the breakdown of the risk attitudes under low stakes and individual level of decision-making. Another advancement is the ability to formalize the social utility or the theory of “sociality” in an economic model; we use general utility function that we define both on the outcomes and on the process of the decision-making itself and test in laboratory studies.

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.

A conceptual framework for wisdom-based decision-making process in audit profession

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hoang To Loan Nguyen
Keyword(s):  
Decision Making ◽  
Grounded Theory ◽  
Conceptual Framework ◽  
Research Process ◽  
Decision Making Process ◽  
Ethical Orientation ◽  
Content Type ◽  
External Auditors ◽  
Wise Decision ◽  
Knowledge Assimilation

PurposeWisdom is considered as crucial in decision-making in both management and auditing practice. This research aims to investigate the concept of wisdom in auditing, thereby empirically exploring the determinants of wisdom in audit decision-making and explaining inter-relations among these determinants.Design/methodology/approachThis study employs grounded theory methodology that is based on in-depth interviews with twenty-seven practicing auditors who are audit partners, managers, seniors and assistants of auditing firms. Guided by the grounded theory, data collection and data analyses were conducted simultaneously to look into the new insights of the research phenomenon. The coding process was constantly compared until the research's theoretical saturation is reached after four rounds. At the end of the research process, the study conducted a survey to confirm the proposed framework as well as examine the inter-relationships between the defined determinants.FindingsResults suggest developing a conceptual framework to interpret wisdom-based decision-making process in auditing. A wise process of audit decision-making is defined as an integrated exercise of multiple determinants including knowledge assimilation, judgmental ability and ethical orientation. The research also explains and examines the potential interrelationships among these determinants in the audit decision-making process.Practical implicationsWisdom is a valuable tacit ability for all external auditors. The development of wise decision-making abilities of auditors should be considered an integral part of multiple virtues including knowledge and judgmental and ethical aspects.Originality/valueThe contributions of this study are original and significant because it proposes a new approach to explain for the audit decision-making process and enhances better understandings of the concept of wisdom in auditing practices and its roles in audit decision-making.

scholarly journals M&As get another assist: when CEOs add intuition to the decision mix

2019 ◽  
Vol 41 (3) ◽  
pp. 57-65 ◽  
Author(s):  
Hannu Kuusela ◽  
Siiri Koivumäki ◽  
Mika Yrjölä
Keyword(s):  
Decision Making ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Strategic Decisions ◽  
Group Interactions ◽  
Content Type ◽  
Individual Level ◽  
Top Executives ◽  
Positive Effects

Purpose The purpose of this paper is to analyze the use of intuition in successful merger and acquisition (M&A) decisions. M&As are strategic decisions that can create growth, open up new markets and strengthen the company’s position and competence portfolio. Strategic decisions involve, by their very nature, considerable investments and have company-wide and long-lasting implications. At the same time, the decision-makers have access to large amounts of data from various sources, but these data are often uncertain and inaccurate and entail numerous assumptions. Therefore, M&A decisions are only rational to a degree, and emotional elements, such as intuition, likely play a significant role. Design/methodology/approach Acknowledging how critically important, but also how difficult, M&As are, the authors analyzed nine instances (cases) of successful acquisitions, in which the executives believed that the role of intuition was critical. Findings The findings show that intuition in strategic decision-making emerges on three levels: individual, collective and environmental. Practical implications This paper encourages top executives to proactively acknowledge and take advantage of intuition in their strategic decision-making. It proposes a framework to help with these endeavors. Originality/value This paper contributes by highlighting that intuition is not just a factor on an individual level; it can also surface from group interactions as well as the environment. Surprisingly, all the executives interviewed spoke of the positive effects that intuition can have on acquisition decisions. This is in contrast to the dominant view that considers intuition as nonrational and even as a form of bias.

scholarly journals Building information modelling to support maintenance management of healthcare built assets

Facilities ◽  
2019 ◽  
Vol 37 (7/8) ◽  
pp. 415-434 ◽  
Author(s):  
Nadeeshani Wanigarathna ◽  
Keith Jones ◽  
Adrian Bell ◽  
Georgios Kapogiannis
Keyword(s):  
Health Care ◽  
Decision Making ◽  
Conceptual Framework ◽  
Asset Management ◽  
Building Information Modelling ◽  
Content Type ◽  
Information Modelling ◽  
Wide Range ◽  
Building Information ◽  
Use Phase

Purpose This paper aims to investigate how digital capabilities associated with building information modelling (BIM) can integrate a wide range of information to improve built asset management (BAM) decision-making during the in-use phase of hospital buildings. Design/methodology/approach A comprehensive document analysis and a participatory case study was undertaken with a regional NHS hospital to review the type of information that can be used to better inform BAM decision-making to develop a conceptual framework to improve information use during the health-care BAM process, test how the conceptual framework can be applied within a BAM division of a health-care organisation and develop a cloud-based BIM application. Findings BIM has the potential to facilitate better informed BAM decision-making by integrating a wide range of information related to the physical condition of built assets, resources available for BAM and the built asset’s contribution to health-care provision within an organisation. However, interdepartmental information sharing requires a significant level of time and cost investment and changes to information gathering and storing practices within the whole organisation. Originality/value This research demonstrated that the implementation of BIM during the in-use phase of hospital buildings is different to that in the design and construction phases. At the in-use phase, BIM needs to integrate and communicate information within and between the estates, facilities division and other departments of the organisation. This poses a significant change management task for the organisation’s information management systems. Thus, a strategically driven top-down organisational approach is needed to implement BIM for the in-use phase of hospital buildings.

scholarly journals In pursuit of supply chain fit

2019 ◽  
Vol 30 (3) ◽  
pp. 821-844 ◽  
Author(s):  
Yasmine Sabri
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Firm Performance ◽  
Conceptual Framework ◽  
Organisational Structure ◽  
Content Type ◽  
Supply Chain Strategy ◽  
Corporate Groups ◽  
The Relationship

Purpose The purpose of this paper is to develop exploratory propositions and a conceptual framework on the interaction between organisational structure (decision-making centralisation and internal coordination) and the relationship between supply chain fit and firm performance. Design/methodology/approach Through a case study, two corporate groups with distinctive organisational structures were examined; both are undergoing a critical moment of changes to their top management and are reshaping their corporate and supply chain strategies. Data on decision-making centralisation, internal coordination mechanisms, supply, demand and innovation uncertainties, and supply chain strategies were collected from key respondents. Findings The analysis conducted suggests the need to consider the joint interaction between organisational structure and supply chain fit in offsetting the implications of a potential misfit on firm performance. Furthermore, the context sensitivity of a supply chain is often overlooked, hence simply modifying supply chain strategy does not necessarily lead to a variation in firm performance. Practical implications This research is of particular importance to most organisations in the testing times of uncertainty in the global landscape. It guides supply chain practitioners to better understand which elements of the organisational structure interact with the uncertainty of supply, demand and innovation. Originality/value This paper is one of the first to investigate the interaction between elements of organisational structure and supply chain fit and identify decision-making centralisation and coordination as the internal uncertainty factors that are most relevant to supply chain fit research. A conceptual framework has been built for future testing, in which the organisational structure moderates the relationship between supply chain fit and firm performance.

Rise of the machines: towards a conceptual service-robot research framework for the hospitality and tourism industry

2020 ◽  
Vol 13 (12) ◽  
pp. 3835-3851
Author(s):  
Glenn McCartney ◽  
Andrew McCartney
Keyword(s):  
Decision Making ◽  
Conceptual Framework ◽  
Hospitality Industry ◽  
Tourism Industry ◽  
Service Robot ◽  
Content Type ◽  
Hospitality And Tourism ◽  
Tourism And Hospitality Industry ◽  
Hospitality And Tourism Industry ◽  
Practical Implications

Purpose This study aims to introduce a conceptual framework for service robot (SR) acceptance by customers, employees and policymakers – a framework to help determine corporate decision-making on SR workplace integration. Design/methodology/approach This study reviews SR adoption literature within the tourism and hospitality industry. These SRs may have some level of artificial intelligence capability and possibly anthropomorphic (e.g. humanoid) or zoomorphic (e.g. animal-like) features, contingent on task and design choices. The study then identifies factors that potentially influence employee and consumer acceptance and experiences of SR, as well as policy and compliance factors and all elements of the corporate decision-making process concerning SR adoption in the hospitality setting. Findings This paper reviews the obstacles and benefits of SR adoption in the hospitality industry based on employee, consumer and public policy considerations. Research limitations/implications SRs are increasingly deployed within hospitality and tourism settings. Future studies should further explore the value-adding functions of SRs implemented in existing hospitality operations. Practical implications Hospitality and tourism industry practitioners should integrate the dimensions in the conceptual framework to make fully informed decisions on SR adoption. Originality/value To the best of the authors’ knowledge, this is one of the first studies to provide a holistic SR adoption framework offering theoretical and practical implications for ongoing SR research and implementation.

Evolution of national heritage inventories for Scotland and Wales

2016 ◽  
Vol 6 (2) ◽  
pp. 113-127 ◽  
Author(s):  
Peter McKeague ◽  
David Thomas
Keyword(s):  
Decision Making ◽  
Digital Technologies ◽  
Renewable Resource ◽  
Building Blocks ◽  
Evidence Base ◽  
Digital Data ◽  
Content Type ◽  
National Heritage ◽  
Access To Knowledge ◽  
The Impact

Purpose – The purpose of this paper is to present a review of the origins and development of national inventories in Scotland and Wales from paper-based records to digital databases. The impact of digital technologies on data management and dissemination is considered. Design/methodology/approach – Exploring the evolution of historic environment inventories in Scotland and Wales highlights the common issues faced and solutions adopted. In considering the longue durée, the durability and flexibility of information is highlighted. Findings – Inventories may combine locational, descriptive and visual material to help document a fragile, finite and non-renewable resource. They provide the evidence base for decision making and stewardship in managing change, stimulating interest in and valuing the historic environment. Contribution to recognised inventories should be a requirement for activities documenting the historic environment. Digital technologies shape the expectations of a modern inventory and associated digital archives, with emphasis placed on the repurposing of inventory contents so that they can better contribute to an information network serving multiple audiences. Social implications – Transformation from paper records to digital data has radically enhanced and democratised access to knowledge about the historic environment. Digital delivery helps place heritage data within mainstream societal activities and fosters public interest and engagement in the historic environment. Originality/value – Inventories are the foundation building blocks of informed decision making. Digital technologies have transformed these resources to help place the historic environment within mainstream societal activities and interest.

Managerial perceptions of energy in logistics

2017 ◽  
Vol 47 (6) ◽  
pp. 447-471 ◽  
Author(s):  
Christian Busse ◽  
Alexander Regelmann ◽  
Hariganesh Chithambaram ◽  
Stephan M. Wagner
Keyword(s):  
Decision Making ◽  
Conceptual Framework ◽  
Subjective Norms ◽  
Future Research ◽  
Organizational Research ◽  
Content Type ◽  
Managerial Perceptions ◽  
Decision Making Processes ◽  
Awareness Raising

Purpose Because of the major contribution of logistics to the greenhouse gas effect, logistics research has begun to address the topic of energy, but it has not yet targeted the role of energy within logistical decision-making processes. To facilitate such endeavors, the purpose of this paper is to explore the perceptions of energy which managers in logistics organizations portray. Design/methodology/approach This investigation is based on interviews with 17 managers. The findings are embedded in the theory of planned behavior (TPB) and stakeholder theory (SHT). Findings The study depicts initial insights on which energy-related perceptions exist, how they can be categorized into attitudes, subjective norms, and perceived behavioral controls (PBCs), and how different stakeholders seem to affect them. Research limitations/implications This research suggests a tentative comprehensive conceptual framework that describes the role of energy in logistical decision-making processes. The findings on attitudes and subjective norms appear to be unspecific to the logistics domain, whereas some of the PBCs are presumably unique to the logistics context. Future logistics research should hence focus its efforts on the PBCs. Generalizability and completeness of the managerial perceptions must be validated by future research. Practical implications The findings help logistics organizations in scrutinizing managerial perspectives on energy and in developing awareness-raising measures. Originality/value The behavioral perspective applied in this study can complement extant, more technically oriented views. The conceptual framework that integrates the TPB and SHT may also be useful for organizational research beyond the logistics domain.

A proposed new psychological model for judgement and decision-making

2017 ◽  
Vol 38 (4) ◽  
pp. 549-563 ◽  
Author(s):  
Christopher Wray
Keyword(s):  
Decision Making ◽  
Leadership Development ◽  
Conceptual Framework ◽  
Dual Process ◽  
Development Theory ◽  
Future Research ◽  
Relational Leadership ◽  
Psychological Model ◽  
Content Type ◽  
Cognitive Faculties

Purpose The purpose of this paper is to consider the implications for leadership development of a proposed new psychological model based on the integration of two distinct fields of research in cognitive science and neuroscience, namely, judgement and decision-making in the heuristics and biases tradition, and in particular the dual-process theory of cognition and its development into a tri-partite model; and the differences between the distinct modes of attention supported by left and right cerebral hemispheres. Design/methodology/approach The distinct fields of research are critically reviewed, the proposed new integrated conceptual framework is presented and compared with other relevant theory, and finally the implications for practice and the connection with contemporary leadership development theory are explored. Findings It is suggested that decision-makers’ performance in volatile or complex environments could be enhanced through the appropriate engagement of each among the expanded set of cognitive faculties identified in the proposed model, and that a decision-making methodology incorporating prompts to engage each of these aspects of cognition could be adopted by individuals or embedded in organisational processes. Research limitations/implications Potential connections for future research are suggested between the proposed new conceptual framework and existing theories concerning shared leadership in teams and reframing processes in a relational leadership context, and more comprehensive psychological theories of leadership incorporating relevant personality traits. Testable claims for future research are proposed, as the model is yet to be validated empirically. Originality/value This paper proposes a novel, integrated psychological model with potential relevance both as a conceptual framework for future research in contemporary leadership theory and as the basis for a decision-making methodology with practical application in leadership development.

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