Intuitive forecasting and analytical reasoning: does investor personality matter?

2019 ◽  
Vol 12 (2) ◽  
pp. 177-195
Author(s):  
Rupali Misra ◽  
Sumita Srivastava ◽  
Devinder Kumar Banwet
Keyword(s):  
Decision Making ◽  
Cultural Context ◽  
Empirical Support ◽  
Personal Characteristics ◽  
Type B ◽  
Content Type ◽  
Religious Traditions ◽  
Analytical Reasoning ◽  
Personality Difference

Purpose In spite of an intuitive appeal regarding association between personality and investment efficacy, there is a dearth of empirical support for the effects of theoretically meaningful personality difference on intuitive and analytical ability, which further explains investment efficacy. The current study aims to explore this link using multi-method analysis. Design/methodology/approach In Study 1, the experimental protocol captures intuitive responses of naïve investors in four different investment horizons and maps the findings with personality constituents of the Big Five (Costa and McCrae, 1992), while in Study 2, survey of active investors seeks their preference for intuition or deliberation (PID, Betsch, 2004) in decision-making, along with measuring their investment efficacy and analysing the results on the basis their personality Type A vs Type B. Findings Subjects with lower extraversion tend to have superior forecasting accuracy for gold and dollar, while those with lower neuroticism have tendency of superior forecasting for dollar and Nifty index in mid-term investment. Further, in Study 2, the results indicate superior intuitive ability, analytical ability and investment efficacy of Type B investors. Originality/value The study is unique in two ways. One, it explores the role of personality in ambidextrous decision-making framework, where rationality and intuition iteratively operate in a parallel, yet synchronous, fashion. Two, the study attempts to examine the role of personality in the unique socio-cultural context of an emerging economy such as India with Eastern religious traditions, having strong implications on the personal characteristics of the decision agents.

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 The hospitality franchise purchase decision making process

2016 ◽  
Vol 28 (5) ◽  
pp. 1009-1025 ◽  
Author(s):  
Ruth M.W. Yeung ◽  
Maureen Brookes ◽  
Levent Altinay
Keyword(s):  
Decision Making ◽  
Cultural Values ◽  
National Culture ◽  
Cultural Context ◽  
Purchase Decision ◽  
Decision Making Process ◽  
Content Type ◽  
Post Purchase ◽  
Depth Interviews

Purpose The purpose of this study is to explore the hospitality franchise purchase decision-making process undertaken by franchisees in Macau as an emerging tourism destination and the role of national culture on purchasing a franchise brand and selecting a potential franchisor. Design/methodology/approach Semi-structured in-depth interviews with 18 franchisees in Macau, who purchased international and domestic hospitality franchise brands, were conducted to understand the feelings, attitudes and motivation of franchisees toward purchasing a hospitality franchise. Findings The study reveals that national culture can play an important role in franchisees’ decision-making process. Personal networks of friends and family (guanxi) are very influential in introducing and steering aspiring entrepreneurs toward franchising as an option to realize their ambitions, although there may be some limitations to franchisees with this approach. Guanxi was also found to be particularly relevant during negotiations and franchisees’ post-purchase reviews. Practical implications International franchisors should understand the importance of guanxi at different stages of the franchisees’ decision-making process. Franchisees should realize how a reliance on guanxi might negatively affect their efforts to undertake sufficient research to thoroughly evaluate the franchisor offer before contract signature. Originality/value A comprehensive hospitality franchisee decision-making purchase framework is developed, which includes the cultural context and cultural values. Guanxi, in particular, affects the franchisee decision-making process.

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.

How abusive supervision climate affects team creativity: the contingent role of task interdependence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chenghao Men ◽  
Lei Yue ◽  
Huo Weiwei ◽  
Bing Liu ◽  
Guangwei Li
Keyword(s):  
Collective Efficacy ◽  
Cultural Context ◽  
Group Identification ◽  
Abusive Supervision ◽  
Task Interdependence ◽  
Positive Relation ◽  
Paired Data ◽  
Team Creativity ◽  
Content Type

PurposeDrawing on theories of social information processing and social identity, the authors explore how abusive supervision climate affects team creativity in a Chinese cultural context. The authors propose that this relation will be mediated by collective efficacy and group identification and moderated by task interdependenceDesign/methodology/approachThe study conducted a confirmatory factor analysis and hierarchical regression to analyze the paired data from 67 research and development (R&D) teams involving 378 employees and employers in a Chinese cultural context.FindingsResults demonstrate that abusive supervision climate was negatively related to team creativity, fully mediated by collective efficacy and group identification in a Chinese cultural context. In addition, task interdependence strengthened the positive relation between collective efficacy and team creativity, as well the positive relation between group identification and team creativity.Originality/valueAlthough research has explored how abusive supervision climate influences individual creativity, few studies have investigated the relation between abusive supervision climate and team creativity in a Chinese cultural context. This study is one of the first to explore how abusive supervision climate affects team creativity in a Chinese cultural context and examine the moderating role of task interdependence in the relation between abusive supervision climate and team creativity.

The quicker, the better? The antecedents and consequences of response timing strategy in the aftermath of a corporate crisis

2019 ◽  
Vol 14 (1) ◽  
pp. 19-38 ◽  
Author(s):  
Nengzhi (Chris) Yao ◽  
Jiuchang Wei ◽  
Weiwei Zhu ◽  
Alexander Bondar
Keyword(s):  
Media Coverage ◽  
Firm Value ◽  
Structural Equation ◽  
Empirical Support ◽  
Equation Model ◽  
Response Strategy ◽  
Content Type ◽  
Response Timing ◽  
Buffering Effects

Purpose The conclusions on the importance of corporate response timing to a crisis have remained inconsistent. Some studies suggest that active response may reduce negative impacts, whereas managers argue that issuing official response frustrates stakeholders and thus decreases the firm value. The purpose of this paper is to investigate the role of external media in the response timing strategy and the consequent stock market reaction. Design/methodology/approach Based on 130 corporate crises that befell publicly listed firms in China from 2007 to 2014, this paper uses the Baidu News Search Engine and Chinese Lexical Analysis System to construct the variables of the media characteristics. A structural equation model is established to test the hypotheses. Findings The results of this paper suggest that media coverage drives response timing after a crisis. Although an official response is a burden for firms, the timing strategy has multidimensional benefits including effectively alleviating negative effects (defined as buffering effects) and repairing the market (defined as restoring effects). Moreover, the buffering effects of response timing are stronger when completeness of response is low. Originality/value This study mainly contributes to crisis communication literature by introducing the role of media in prompting managers to make timing decisions. The findings of this study provide empirical support for the importance of timing response strategy.

Agentic work behaviour and thriving at work: role of decision making authority

2018 ◽  
Vol 25 (8) ◽  
pp. 3225-3237 ◽  
Author(s):  
Surendra Kumar Sia ◽  
Pravakar Duari
Keyword(s):  
Decision Making ◽  
Three Dimensions ◽  
Positive Contribution ◽  
Manufacturing Companies ◽  
Content Type ◽  
Independent Contribution ◽  
The Relationship ◽  
Task Focus ◽  
Thriving At Work

PurposeThe purpose of this paper is to examine the contribution of agentic work behaviour and decision-making authority (DMA) to thriving at work and, more importantly, the moderating role of DMA in the relationship between agentic behaviour and thriving.Design/methodology/approachThe study has been carried out upon a random sample of 330 employees below supervisory level from manufacturing companies located at Odisha (a state located at the eastern part of India). After verifying the significance of correlation among the study variables through Pearson’s product moment correlation, moderated regression analyses were carried out to examine the independent contribution of agentic work behaviour and DMA to thriving as well as the moderating contribution of DMA towards thriving.FindingsResults reveal that the three dimensions of agentic work behaviour, namely, task focus, exploration and heedful relation, have a direct positive contribution towards thriving at workplace. As far as the moderation is concerned, it is observed that the thriving level is higher for the employees having high DMA irrespective of the level of agentic work behaviour at each dimension.Research limitations/implicationsThe findings imply for designing interventions to enhance task focus, super-ordinate relationship and interest for learning. In addition, the organisations should provide autonomy to employees for decision making.Originality/valueThe study is first of its kind in the Indian context upon employee thriving. In this study, the authors have not only investigated the separate independent contribution of agentic behaviour and DMA, but also their interacting contribution to employee thriving.

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.

Increasing the flow of Guinness: the role of strategic investment decision-making in organizations

2017 ◽  
Vol 33 (3) ◽  
pp. 19-21
Keyword(s):  
Decision Making ◽  
Design Methodology ◽  
Investment Decision ◽  
Strategic Investment ◽  
Content Type ◽  
Strategic Direction ◽  
Investment Decision Making ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The decision by Guinness in 1965 to expand into Ghana was based on a robust and experienced strategic investment decision-making process (SIDM). It required the knowledge of past failures and successes to implement those lessons onto a new project. As such, the SIDM process can be seen to be one of the most important in terms of an organizations ability to expand and take advantage of situations. What Alkaraan (2016) demonstrates is the factors that govern the SIDM process, why they are important and how they function within an organization. In doing so, organizations that are struggling to succeed may be able to highlight areas that have previously been ignored, to implement a new strategic direction. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

The joint impact of servant leadership and team-based HRM practices on team expediency: the mediating role of team reflexivity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shuang Ren ◽  
Zhining Wang ◽  
Ngan Thuy Collins
Keyword(s):  
Servant Leadership ◽  
Deviant Behavior ◽  
Empirical Support ◽  
Theory And Practice ◽  
Limited Attention ◽  
Content Type ◽  
Deviant Behaviors ◽  
Hrm Practices ◽  
Organizational Rules

PurposeThis study focuses on an emerging deviant behavior at the team level and investigates when and why the team level processes reduce team expedient behavior. Anchored on the input–process–outcome (I–P–O) theoretical framework for studying team effectiveness, it conceptualizes and tests a research model where servant leadership and team-based human resource management (HRM practices) serve as a team-level input that interacts to influence the process of team reflexivity and ultimately reduces team expedient behavior as the outcome.Design/methodology/approachData are from 109 teams involving a total of 584 employees and analyzed at the team level.FindingsThe findings provide empirical support that team-based HRM practices positively moderate the relationship between servant leadership and team reflexivity and that team reflexivity transforms the influence of servant leadership into reduced team expedient behavior. Implications for theory and practice are discussed.Research limitations/implicationsThe participants in this study were drawn from diverse backgrounds (n = 584), and they were nested within 109 teams. Therefore, the authors were cautious of making claims that the findings would apply to every team in the context of China. The authors acknowledge that the research design of this study is not the strongest to test for causal relationship.Practical implicationsThe findings show the synergistic role of servant leadership and team-based HRM practices and suggest organizations have both in place to mitigate deviant behaviors by teams. The study also suggests organizations develop and promote an environment where team members are motivated and encouraged to share their ideas, openly discuss experiences and set up forward plans.Social implicationsOrganizations should focus on training their leaders of the behaviors such as supporting followers, enhancing subordinates' commitment to the collective goal and emphasizing the equality between themselves and subordinates. Organizations need to increase their awareness that the teams are more likely to perform their tasks by the means prescribed by the organizational rules if they communicate, discuss and get modeling or feedback from other teams.Originality/valueThis study enriches research on team-based HRM practices, which so far have received limited attention, and deserves further investigation. It sharpens the underlying mechanism that translates team-level input of leadership and HRM to the desired outcomes of reduced expedient behavior by introducing the role of team reflexivity. The study adds to the growing research on workplace deviance by addressing team-level expedient behavior.

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.

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