scholarly journals Bounded rationality, capital budgeting decisions and small business

2020 ◽  
Vol 17 (2) ◽  
pp. 293-318
Author(s):  
Jaime A. Morales Burgos ◽  
Markus Kittler ◽  
Michael Walsh
Keyword(s):  
Decision Making ◽  
Grounded Theory ◽  
Bounded Rationality ◽  
Small Businesses ◽  
Capital Budgeting ◽  
The Body ◽  
Constructivist Grounded Theory ◽  
Comparative Approach ◽  
Content Type

Purpose The purpose of this paper is to provide insight into the capital budgeting decision-making of Canadian and Mexican entrepreneurs in small businesses in the food sector. The objective is to understand the capital budgeting decisions through the lens of bounded rationality and how these decisions are affected by different (national) contexts. Design/methodology/approach This is a comparative study in which the use of constructivist grounded theory allowed deep conversations about capital budgeting decisions. Data was collected from forty semi-structured interviews with entrepreneurs/managers in two regions, Mexico and Canada. Findings Insights from this study suggest that entrepreneurs’ capital budgeting decisions are not only taken under conditions of bounded rationality but also suggest a prominent role of context in how bounded rationality is applied differently towards investment decisions. Research limitations/implications While the findings cannot simply be generalized, exploring how capital budgeting decisions are made differently across two regional contexts adds to the understanding of the nexus of context, bounded rationality and capital budgeting decision-making. Practical implications Using a bounded rationality lens, this study contrasts and explains similarities and differences in the entrepreneur’s capital budgeting decision-making within small businesses. The insights add to the body of knowledge and help entrepreneurs to reflect on their approach to decision-making. Originality/value The paper uses a less commonly applied approach to understand two under-researched regional contexts. We use constructivist grounded theory to explore entrepreneurs’ capital budgeting decision-making in small businesses in two regions, Canada and Mexico. The comparative approach and the findings add to the understanding of decision-making, highlight the prominent role of context and also challenge some insights from previous research.

Facades of morality: the role of moral disengagement in green buying behaviour

2020 ◽  
Vol 23 (2) ◽  
pp. 217-239 ◽  
Author(s):  
Nitika Sharma ◽  
Madan Lal
Keyword(s):  
Grounded Theory ◽  
Moral Disengagement ◽  
Moral Dilemma ◽  
Research Work ◽  
Constructivist Grounded Theory ◽  
Consumption Pattern ◽  
Content Type ◽  
Green Consumption ◽  
Buying Behaviour

Purpose This study aims to presents the article regarding the influential role of moral inefficacy and moral disengagement to address green intention and behaviour gap among consumers, and how they attain self-exoneration because of the moral dilemma if any exist. Design/methodology/approach The present study is based on semi-structured interviews, using constructivist grounded theory, which offers a platform to investigate, explore and discover psychosocial mechanism that operates among the consumers regarding the dimension of morality and green practices. In-depth exhaustive dialogues with Indian green consumers are set up to stimulate dialogue on the study. Findings Findings of the study shed light on the moral dilemma arising from internal and external inefficacy of consumers and disengagement of morality to save consumers from self-condemnation. Also, the study proffers the potential conceptual framework of moral inefficacy, moral disengagement and green buying behaviour of consumers. Eventually, the study mapped the morality matrix to explore the consequents of moral inefficacy and moral disengagement. Research limitations/implications The idiographic nature of qualitative research, particularly grounded theory may be considered as a research limitation as it follows limited generalizability. Moreover, the present research work is exploratory in nature and depends on the candour of researchers’ reactivity and understanding. Practical implications The study subjectively concludes the green behaviour of consumers and discusses the rationality behind green intentions and behaviour gap. Marketers can strategize consumer morality as an approach to enhance green buying behaviour of consumers by removing moral inefficacies and disengagements. Social implications It is crucial for marketers and society to understand the reasons behind non-green consumerism and accordingly cope up with the situation. Originality/value The study has been designed in a way to discuss the philosophy of morality and psychology of consumers on green consumption. To elicit the crux and conceptualization of morality and green purchasing framework using constructivist grounded theory is the exclusivity of this study. This paper explores green consumption pattern using moral orientation and processes in detail.

The role of patience as a decision-making heuristic in leadership

2017 ◽  
Vol 12 (2) ◽  
pp. 111-129 ◽  
Author(s):  
M.D. Haque ◽  
Lu Liu ◽  
Angela TitiAmayah
Keyword(s):  
Decision Making ◽  
Grounded Theory ◽  
Theoretical Model ◽  
Leadership Capacity ◽  
Content Type ◽  
Grounded Theory Study ◽  
Leadership Quality ◽  
Grounded Theory Research ◽  
Theory Research

Purpose The purpose of this paper is to address the gap in the literature by providing a precise conceptualization of the concept of patience in the context of leadership. Design/methodology/approach The current study was conducted using a qualitative approach as it aimed to explore leaders’ perceptions and experiences with patience and eventually build a theoretical model in relation to the role of patience in leadership. Because the aim of the study was to obtain insight into the experiences of the participants in their own words, this study adopted a grounded theory research design. Findings The grounded theory study resulted in an emergent theoretical model for understanding the decision-making process of leaders who exhibit patience as a character strength and how those leaders promote organizational success. Through an inductive approach, this grounded theory study identified the behaviors that participating leaders viewed as patient, as well as the outcomes and the contextual conditions for the effectiveness of such behaviors. Research limitations/implications A major contribution of this study is that leaders epitomized by patience are guided by a decision-making framework that can contribute to more favorable decision making outcomes. Practical implications The proposed model for patience leadership has implications for developing the leadership capacity. Originality/value Patience, as a leadership quality, has been overlooked virtue in the social and psychological sciences. In order to explore the potential nexus between patience and leadership, the study has offered an emergent theoretical model and indicated the specific ways in which leaders may effectively practice patience.

scholarly journals IMP: it’s time to get emotional! Understanding the role of negative emotions in dynamic decision-making processes

2020 ◽  
Vol 35 (12) ◽  
pp. 2151-2163
Author(s):  
Nikolina Koporcic ◽  
Miika Nietola ◽  
John D. Nicholson
Keyword(s):  
Decision Making ◽  
Bounded Rationality ◽  
Negative Emotions ◽  
Dynamic Decision Making ◽  
Business World ◽  
Content Type ◽  
Methodological Choices ◽  
Managerial Implications ◽  
Decision Making Processes

Purpose The purpose of this paper is to investigate the current industrial marketing and purchasing (IMP) research that has a vague positioning of the bounded rationality of an actor. By borrowing insights from other disciplines, this study aims to develop the IMP approach further by acknowledging the importance of individuals who act and make decisions on behalf of their companies. Design/methodology/approach This study is conceptual. By examining the IMP studies in combination with decision-making literature from behavioral economics and psychology, this paper provides a new understanding of the phenomenon in question. Findings This study demonstrates that individual decision-making is not as rational as has previously been thought, thus indicating the bounded rationality of the actor. After examining the most common negative emotions that influence the decision-making process, the paper presents a research agenda. It provides a series of research topics and methodological choices for future IMP research endeavors. Research limitations/implications As this paper is conceptual, empirical research is needed to examine the role of negative emotions in dynamic decision-making processes. Practical implications Managerial implications of this paper are focused on providing instructions for managers on how to deal with negative emotions in dynamic decision-making processes. Originality/value To the best of the authors’ knowledge, this paper is one of the first papers that attempts to connect the IMP studies with the dynamics of decision-making by examining negative emotions in the business world.

Do female and male entrepreneurs differ in their proneness to heuristics and biases?

2019 ◽  
Vol 12 (3) ◽  
pp. 357-375
Author(s):  
Pouria Nouri ◽  
Abdollah AhmadiKafeshani
Keyword(s):  
Small Businesses ◽  
The Body ◽  
Escalation Of Commitment ◽  
Heuristics And Biases ◽  
Female Entrepreneurs ◽  
Content Type ◽  
Representativeness Heuristic ◽  
Body Of Knowledge ◽  
Strong Body

Purpose Although heuristics and biases seal the fate of entrepreneurial enterprises by directly influencing entrepreneurs’ decisions, previous studies have ignored the role of gender in this regard by considering female and male entrepreneurs homogeneous in their susceptibility to heuristics and biases. Thus, this paper aims to advance the existing body of knowledge on heuristics and biases in the field of entrepreneurship by exploring two heuristics of affect and representativeness as well as three biases of overconfidence, escalation of commitment and illusion of control in female and male entrepreneurs’ entry and opportunity-related decisions. Design/methodology/approach The data were gathered through semi-structured and in-depth interviews with ten male and nine female Iranian techno-entrepreneurs active in advanced medicine and biotechnology. The gathered data were analyzed by thematic and narrative data analysis. Findings According to the results, while both male and female entrepreneurs show certain heuristics and biases, there are some noteworthy distinctions. More precisely, contrary to their male counterparts, the female entrepreneurs neither rely on the representativeness heuristic nor show any signs of the escalation of commitment in their decisions. Practical implications There are some valuable implications emanated from this study which could be of use for not only future researchers but also entrepreneurs, especially the ones founding and running small businesses themselves. Originality/value While there is a strong body of literature on heuristics and biases in the field of entrepreneurship, previous studies have considered female and male entrepreneurs homogeneous in their proneness to heuristics and biases. Thus, the current study enriches the body of knowledge by being the first comparative study of heuristics and biases in female and male entrepreneurs’ decisions.

scholarly journals Decision Making from the Experience of Orthognathic Surgery Patients: A Grounded Theory Approach

2021 ◽  
pp. 238008442110144
Author(s):  
N.R. Paul ◽  
S.R. Baker ◽  
B.J. Gibson
Keyword(s):  
Decision Making ◽  
Grounded Theory ◽  
Treatment Options ◽  
Study Data ◽  
Primary Objective ◽  
Major Surgery ◽  
Future Research ◽  
Decision Making Process ◽  
Theory Approach

Introduction: Patients’ decisions to undergo major surgery such as orthognathic treatment are not just about how the decision is made but what influences the decision. Objectives: The primary objective of the study was to identify the key processes involved in patients’ experience of decision making for orthognathic treatment. Methods: This study reports some of the findings of a larger grounded theory study. Data were collected through face-to-face interviews of patients who were seen for orthognathic treatment at a teaching hospital in the United Kingdom. Twenty-two participants were recruited (age range 18–66 y), of whom 12 (male = 2, female = 10) were 6 to 8 wk postsurgery, 6 (male = 2, female = 4) were in the decision-making stage, and 4 (male = 0, female = 4) were 1 to 2 y postsurgery. Additional data were also collected from online blogs and forums on jaw surgery. The data analysis stages of grounded theory methodology were undertaken, including open and selective coding. Results: The study identified the central role of dental care professionals (DCPs) in several underlying processes associated with decision making, including legitimating, mediating, scheduling, projecting, and supporting patients’ decisions. Six categories were related to key aspects of decision making. These were awareness about their underlying dentofacial problems and treatment options available, the information available about the treatment, the temporality of when surgery would be undertaken, the motivations and expectation of patients, social support, and fear of the surgery, hospitalization, and potentially disliking their new face. Conclusion: The decision-making process for orthognathic treatment is complex, multifactorial, and heavily influenced by the role of DCPs in patient care. Understanding the magnitude of this role will enable DCPs to more clearly participate in improving patients’ decision-making process. The findings of this study can inform future quantitative studies. Knowledge Transfer Statement: The results of this study can be used both for informing clinical practice around enabling decision making for orthognathic treatment and also for designing future research. The findings can better inform clinicians about the importance of their role in the patients’ decision-making process for orthognathic treatment and the means to improve the patient experience. It is suggested that further research could be conducted to measure some of the key constructs identified within our grounded theory and assess how these change during the treatment process.

The role of agency in project initiation decisions

2014 ◽  
Vol 7 (3) ◽  
pp. 518-535 ◽  
Author(s):  
Mark Mullaly
Keyword(s):  
Decision Making ◽  
Decision Rules ◽  
Personal Characteristics ◽  
Decision Makers ◽  
Organizational Dynamics ◽  
Substantive Theory ◽  
Content Type ◽  
The Subject ◽  
Board Level

Purpose – The purpose of this paper is to explore the role of decision rules and agency in supporting project initiation decisions, and the influences of agency on decision-making effectiveness. Design/methodology/approach – The study this paper is based upon used grounded theory methodology, and sought to understand the influences of individual decision makers on project initiation decisions within organizations. Data collection involved 28 participants who were involved in project initiation decisions within their organizations, who discussed the process of project initiation in their organization and their role within that process. Findings – The study demonstrates that the overall effectiveness of project initiation decisions is a product of agency, process effectiveness or rule effectiveness. The employment of agency can have a direct influence on decision-making effectiveness, it can compensate for organizational inadequacies of a process or political nature, and it can be constrained in the evidence of formal and effective organizational practices. Research limitations/implications – While agency was recognized by all participants, there are clearly circumstances where actors perceive the ability to exercise agency to be externally constrained. The study is exploratory, contributing to the development of substantive theory. Theory testing as well as a more in-depth investigation of the underlying drivers of agency would be valuable. Practical implications – The study provides executives and individuals supporting the initiation of projects with insights on how to effectively influence the effectiveness of project initiation decisions, and the degree to which personal characteristics influence organizational dynamics. Originality/value – Most discussions of agency has been framed the subject as an executive- or board-level phenomenon. The current study demonstrates that agency is in fact being perceived and operationalized at all levels. Those demonstrating agency in the majority of instances in this study do so in exercising stewardship behaviours. This has important implications for how agency is perceived by executives, and by how agency is exercised by actors at all levels of the organization.

scholarly journals Exploring the role of anticipated emotions in product adoption and usage

2018 ◽  
Vol 35 (3) ◽  
pp. 300-316 ◽  
Author(s):  
Debora Bettiga ◽  
Lucio Lamberti
Keyword(s):  
Decision Making ◽  
Conceptual Model ◽  
Structural Equation ◽  
Consumer Products ◽  
Product Adoption ◽  
Radical Product ◽  
Content Type ◽  
Product Decision ◽  
Anticipated Emotions

Purpose This study aims to explore the role of positive and negative anticipated emotions on adoption and continued usage of consumer products. The components of value eliciting anticipated emotions are investigated as well. Design/methodology/approach The conceptual model proposed is tested in two empirical studies, one focussing on functional and hedonic products and one on incremental and radical product innovations. Data are collected through online surveys on consumers and are analysed using structural equation modelling. Findings Results confirm the ability of anticipated emotions to influence product decision-making process. Moreover, anticipated emotions mediate the influence of value perceptions on product attitude. Findings show that these relationships vary greatly between initial adoption and further usage of the product. Practical implications Findings from this study may help marketers in the development of the right brand strategies and communication campaigns, aimed at building emotional connections with the consumer which prompt product adoption and usage. Originality/value Anticipated emotions, the predictions about the emotional consequences of a behaviour, have been acknowledged as strong drivers of consumer choices. Despite that, the role of anticipated emotions in product decision-making has not been explored yet. The present research, by means of a novel conceptual model, uncovers the role of anticipated emotions in both product adoption and continued usage decisions and depicts the components of value arousing such anticipated emotions.

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.

How perceived information transparency and psychological attitude impact on the financial well-being: mediating role of financial self-efficacy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Zia-ur-Rehman ◽  
Khalid Latif ◽  
Muhammad Mohsin ◽  
Zahid Hussain ◽  
Sajjad Ahmad Baig ◽  
...  
Keyword(s):  
Financial Institutions ◽  
Self Efficacy ◽  
Well Being ◽  
The Body ◽  
Main Concern ◽  
Productivity Level ◽  
Content Type ◽  
Information Transparency ◽  
Psychological Attitude

PurposeThe basic intention of this research is to investigate the role of information transparency of financial institutions and psychological attitude of the individuals toward their attention to saving and borrowing. This study also tries to know how an individual's psychological factor affects a person's attitude to motivate them to save or borrow and contribute to well-being by giving them confidence that they can face financial challenges. So, the main concern of this study is to explore different factors that ultimately contribute to the financial well-being (FWB) of individual.Design/methodology/approachA survey was conducted by using a well-structured questionnaire to collect data and test the developed hypotheses by using SmartPLS. Data were collected from 120 customers of seven different commercial banks in Pakistan.FindingsThe findings of this study show that perceived information transparency positively affects FWB. It is also because transparent shared information creates positive change in individuals' perceived self-efficacy and leads to FWB. Furthermore, an individual's psychological attitude toward borrowing and saving did not contribute to the FWB of people who belong to Pakistan.Research limitations/implicationsThe research area is limited to one city of Pakistan and analysis is done with small numbers of sample, it can be increased and more areas can be explored.Practical implicationsThis research provides significant implications for people and economists by providing awareness about the antecedents of FWB. The policymakers or managers who work in financial institutions should provide more transparent information and create less risky opportunities to improve the individual's well-being. If person, manager and financial institution can properly utilize the information of this study, then they are able to improve their FWB. By providing more transparent services and favorable experience with your dealings, it could help to obtain and retain more loyal internal (employees) and external customers. The loyal customers and sincere employees can increase the productivity level of organization. The more productive organizations in countries means better society and progress in the economy.Originality/valueThis research contributes to the body of knowledge that how perceived information transparency and psychological attitude of borrowing create improvement and upward changes in the FWB of a person.

Knowledge hiding in academia: an empirical study of Indian higher education students

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Neha Garg ◽  
Asim Talukdar ◽  
Anirban Ganguly ◽  
Chitresh Kumar
Keyword(s):  
Higher Education ◽  
Academic Performance ◽  
Self Efficacy ◽  
The Body ◽  
Equation Modeling ◽  
Content Type ◽  
Indian Higher Education ◽  
Knowledge Hiding ◽  
Academic Self Efficacy

Purpose This study aims to investigate the role of knowledge hiding (KH) on academic performance, using three antecedents – relatedness with peers, territoriality of knowledge and performance motivation. It also looked into the moderating role of academic self-efficacy upon student’s KH behavior and academic performance. The research was grounded on the theory of reasoned action. Design/methodology/approachx Structural equation modeling (SEM) was used to analyze the five hypotheses. The data was collected through a primary survey based on a structured questionnaire with a sample size of 324 students from the Indian higher education institutions. Findings The study found that performance motivation and territoriality are positively associated with KH, which is further positively related to students’ academic performance. Sense of relatedness had no influence upon KH behavior, implying that proximity of social relationships does not predict KH behavior among students. Additionally, it was also observed that while evasive (a situation where the knowledge hider deliberately provides incorrect, partial or misleading information) and rationalized KH (a situation where the knowledge hider tries to provide a rational justification for not sharing the knowledge) had a significant influence on the academic performance of the students, the effect of “playing dumb” was not significant. The study did not reveal any moderating effect of academic self-efficacy on all three forms of KH and academic performance. Practical implications The findings of the study are expected to be valuable for instructors, administrative authorities and policymakers at the higher education level, to create a more conducive teaching and learning environment. Out of the three hiding strategies, students indulge more often in rationalized KH. Based on the outcomes of this research, management may focus toward the creation of an institutional environment conducive toward knowledge sharing interdependency among students. Originality/value One of the novel contributions of this study is that it analyzes Indian higher education, providing a developing country perspective, thereby contributing to the body of knowledge in knowledge management and hiding. The study also intends to understand the interplay of constructs such as KH, territoriality, sense of relatedness and academic performance, which have not been discussed previously within the higher education context, thus making the research work original. The study was done among the students and hence, brings in the academic perspective in the KH literature, which has seen limited research impetus.

Sign in / Sign up

Export Citation Format

Share Document