Long–Term Orientation and Intertemporal Choice in Family Firms

2011 ◽  
Vol 35 (6) ◽  
pp. 1149-1169 ◽  
Author(s):  
G. T. Lumpkin ◽  
Keith H. Brigham
Keyword(s):  
Family Firms ◽  
Intertemporal Choice ◽  
Higher Order ◽  
Self Control ◽  
Three Dimensions ◽  
Dominant Logic ◽  
Over Time ◽  
Intertemporal Choices

A long–term orientation (LTO) is often associated with family firms, but the LTO construct is underdeveloped. This paper sets forth a framework for studying LTO in family firms including developing three dimensions—futurity, continuity, and perseverance. It identifies LTO as a higher–order heuristic that, in matters of intertemporal choice, provides a dominant logic for decisions and actions. Intertemporal choice refers to decisions with payoffs or outcomes that play out over time. Three mechanisms affecting intertemporal choices are identified—representation, self–control, and anticipation. LTO and intertemporal choice are further examined and discussed in the context of family firms.

scholarly journals Intertemporal choice reflects value comparison rather than self-control: insights from confidence judgments

2021 ◽  
Author(s):  
Adam Bulley ◽  
Karolina Maria Lempert ◽  
Colin Conwell ◽  
Muireann Irish
Keyword(s):  
Decision Making ◽  
Intertemporal Choice ◽  
The Self ◽  
Self Control ◽  
Confidence Judgments ◽  
Adult Participants ◽  
Subjective Value ◽  
The Right ◽  
Intertemporal Decisions ◽  
Intertemporal Choices

Intertemporal decision-making has long been assumed to measure self-control, with prominent theories treating choices of smaller, sooner rewards as failed attempts to override immediate temptation. If this view is correct, people should be more confident in their intertemporal decisions when they “successfully” delay gratification than when they do not. In two pre- registered experiments with built-in replication, adult participants (n=117) made monetary intertemporal choices and rated their confidence in having made the right decisions. Contrary to assumptions of the self-control account, confidence was not higher when participants chose delayed rewards. Rather, participants were more confident in their decisions when possible rewards were further apart in time-discounted subjective value, closer to the present, and larger in magnitude. Demonstrating metacognitive insight, participants were more confident in decisions that better aligned with their independent valuation of possible rewards. Decisions made with less confidence were more prone to changes-of-mind and more susceptible to a patience-enhancing manipulation. Together, our results establish that confidence in intertemporal choice tracks uncertainty in estimating and comparing the value of possible rewards – just as it does in decisions unrelated to self-control. Our findings challenge self- control views and instead cast intertemporal choice as a form of value-based decision-making about future possibilities.

6. Taking time

2017 ◽  
pp. 67-81
Author(s):  
Michelle Baddeley
Keyword(s):  
Life Cycle ◽  
Mental Accounting ◽  
Time Inconsistency ◽  
Self Control ◽  
Best Interests ◽  
Policy Makers ◽  
Present Bias ◽  
Life Cycle Models ◽  
Over Time

Often our everyday decisions unfold over time and what we want today is not always consistent with what we might want tomorrow. Understanding why many people do not behave in a way that is consistent with their own long-term best interests is a key challenge for behavioural economists and policy-makers. ‘Taking time’ explains how humans (and animals) suffer from present bias: we have a disproportionate preference for smaller, immediate rewards over delayed, larger rewards—a reflection of underlying time inconsistency. It considers the intertemporal tussle between our patient and impatient selves, pre-commitment strategies, and self-control. The behavioural life cycle models of choice bracketing, framing, and mental accounting are also discussed.

scholarly journals Decision making does not benefit from using a foreign language: Evidence from cognitive reflection effects on intertemporal choice.

2020 ◽  
Author(s):  
Michal Bialek ◽  
Artur Domurat ◽  
Mariola Paruzel-Czachura ◽  
Rafal Muda
Keyword(s):  
Decision Making ◽  
Foreign Language ◽  
Decision Maker ◽  
Intertemporal Choice ◽  
Reference Points ◽  
Discount Rates ◽  
Negative Effects ◽  
Cognitive Reflection ◽  
Intertemporal Choices

Intertemporal choice requires to decide between smaller sooner and larger later payoffs, and is captured by discount rates. Across two preregistered experiments we found no evidence that using a foreign language benefitted intertemporal choices. On the contrary, there was some evidence of stronger discounting when a foreign language was used. Our results confirm that more reflective individuals tend to discount less strongly, and their intertemporal choices are also more consistent across different reference points and perspectives. In turn, this allows for greater consistency in long-term planning, benefitting a decision maker. Thinking in a foreign language did not affect such consistency, and may actually have negative effects for reflective people. Finally, although our findings hint that the benefits of cognitive reflection may be reduced when using a foreign language. This raises the questions as to why and how using a foreign language helps only some individuals, and in some decisions.

scholarly journals The Decimal Effect: Behavioral and Neural Bases for a Novel Influence on Intertemporal Choice in Healthy Individuals and in ADHD

2014 ◽  
Vol 26 (11) ◽  
pp. 2455-2468 ◽  
Author(s):  
Catherine Fassbender ◽  
Sebastien Houde ◽  
Shayla Silver-Balbus ◽  
Kacey Ballard ◽  
Bokyung Kim ◽  
...  
Keyword(s):  
Intertemporal Choice ◽  
Temporal Discounting ◽  
Behavioral Effect ◽  
Self Control ◽  
Hyperactivity Disorder ◽  
Brain Responses ◽  
Intertemporal Preferences ◽  
Reward Bias ◽  
Deliberative Processes ◽  
Intertemporal Choices

We identify a novel contextual variable that alters the evaluation of delayed rewards in healthy participants and those diagnosed with attention deficit/hyperactivity disorder (ADHD). When intertemporal choices are constructed of monetary outcomes with rounded values (e.g., $25.00), discount rates are greater than when the rewards have nonzero decimal values (e.g., $25.12). This finding is well explained within a dual system framework for temporal discounting in which preferences are constructed from separate affective and deliberative processes. Specifically, we find that round dollar values produce greater positive affect than do nonzero decimal values. This suggests that relative involvement of affective processes may underlie our observed difference in intertemporal preferences. Furthermore, we demonstrate that intertemporal choices with rounded values recruit greater brain responses in the nucleus accumbens to a degree that correlates with the size of the behavioral effect across participants. Our demonstration that a simple contextual manipulation can alter self-control in ADHD has implications for treatment of individuals with disorders of impulsivity. Overall, the decimal effect highlights mechanisms by which the properties of a reward bias perceived value and consequent preferences.

Self-Control, Mental Time Travel, and the Temporally Extended Self

2020 ◽  
pp. 434-452
Author(s):  
Erica Cosentino
Keyword(s):  
Intertemporal Choice ◽  
Explanatory Power ◽  
Time Travel ◽  
Self Control ◽  
Mental Time Travel ◽  
Extended Self ◽  
The Future ◽  
Future Self ◽  
Over Time

Intertemporal choice scenarios are scenarios in which someone must make a choice whose consequences play out over time. In those scenarios, the capacity to exercise self-control involves making a choice that does not provide an immediate advantage for the present self and instead benefits the future self. In this chapter, the author argues that the extent to which one can resist temptation in those scenarios is a function of the extent to which one cares about one’s future self. Caring about one’s future self entails having a temporally extended self. Given that mental time travel is crucially involved in the coming about of the temporally extended self, the author acknowledges its importance in self-control. After clarifying what this hypothesis does not imply about the relation between mental time travel and self-control, she discusses two puzzles concerning the phenomenology of resisting temptation and, respectively, the explanatory power of the temporally extended self and a possible solution.

Understanding industrialised house building as a company’s dynamic capabilities

2020 ◽  
Vol 21 (1) ◽  
pp. 5-21
Author(s):  
Lars Stehn ◽  
Susanne Engström ◽  
Petri Uusitalo ◽  
Rita Lavikka
Keyword(s):  
Dynamic Capabilities ◽  
Original Data ◽  
Higher Order ◽  
Content Type ◽  
Archival Material ◽  
Corporate Ability ◽  
House Building ◽  
Over Time

Purpose To further the understanding of industrialised house building (IHB) from a temporal, emergent corporate-ability perspective, this study aims to trace the build-up of corporate assets in an IHB company over time. The research draws on dynamic capabilities, acknowledging not only what assets the company have developed and currently are exploiting, but also how these assets were develop and managed (i.e. enhanced, combined, protected and potentially reconfigured) to sustain long-term competitiveness. Design/methodology/approach A case study design was used to form a narrative that covers the evolution of an IHB company over a 25-year period. Corporate archival material, analysis of original data from a large number of research studies during 1993-2013 and retrospective reflections of owners and managers, including crosschecking interpretations of archival material, developed and triangulated the narrative. Findings The study presents rich empirical findings on the build-up of corporate assets. Starting from a successive process of exploration and exploitation formation of dynamic capabilities eventually played out into an exponential dynamic capability build-up. The IHB case company displays the ability to not only continuously exploit and renew resources and competences, but also to sense, seize and reconfigure cumulative assets over time. The exponential development of dynamic capabilities resonates to literature on higher-order dynamic capabilities implying that: the accumulated and higher-order dynamic capabilities are difficult to imitate and a (any) company must possess higher-order dynamic capabilities to be able to exploit and/or take up IHB. Originality/value The study is complementing and potentially challenging frequent framings of the IHB concept. Previous research has addressed and characterised IHB mainly by encapsulating a moment in time and, thus, characteristics are momentary and represent static views on IHB. However, IHB has seen a strong development over the past 25 years, and the study reflects on this development from the perspective of one of the IHB-forerunner companies in Sweden. By exploring from a company perspective the developments, reconfiguration and capacity to develop/reconfigure over time in a changing environment, the study introduces an alternative understanding of IHB as dynamic capabilities.

scholarly journals Self-control: An integrative framework

2021 ◽  
Author(s):  
Kaitlyn M. Werner ◽  
Brett Quaid Ford
Keyword(s):  
Self Regulation ◽  
Self Control ◽  
Future Research ◽  
Integrative Framework ◽  
Multi Stage ◽  
Stage Process ◽  
Three Stages ◽  
Over Time ◽  
Selection Of

Research on self-control has flourished within the last two decades, with researchers trying to answer one of the most fundamental questions regarding human behaviour – how do we successfully regulate desires in the pursuit of long-term goals? While recent research has focused on different strategies to enhance self-control success, we still know very little about how strategies are implemented or where the need for self-control comes from in the first place. Drawing from parallel fields (e.g., emotion regulation, health) and other theories of self-regulation, we propose a framework that describes self-control as a dynamic, multi-stage process that unfolds over time. In this review, we first provide an overview of this framework, which poses three stages of regulation: the identification of the need for self-control, the selection of strategies to regulate temptations, and the implementation of chosen strategies. These regulatory stages are then flexibly monitored over time. We then propose a series of questions to organize existing literature by highlighting what we already know, what we need to learn, and methodological recommendations for future research. Finally, we conclude by highlighting the need to bridge across disciplines, thereby improving our understanding of how self-control unfolds in everyday life and across different domains.

Researching Long-Term Orientation

2013 ◽  
Vol 27 (1) ◽  
pp. 72-88 ◽  
Author(s):  
Keith H. Brigham ◽  
G. T. Lumpkin ◽  
G. Tyge Payne ◽  
Miles A. Zachary
Keyword(s):  
Family Business ◽  
External Validity ◽  
Concurrent Validity ◽  
Family Firms ◽  
Three Dimensions ◽  
Future Research ◽  
Business Research ◽  
Analysis Techniques ◽  
Key Questions

Assumptions about the long-term orientation (LTO) of family firms are common in family business research. Drawing on prior conceptualizations, this article further develops and validates the LTO construct using content analysis techniques on two separate samples of data. Validation comes through empirical analysis of content validity, external validity, dimensionality, and concurrent validity. We find that family firms are higher than nonfamily firms on all three dimensions of LTO. We also discuss how future research can use this now-validated construct to address key questions in family business research, as well as inform the broader business literature.

scholarly journals Retrieval-extinction within the memory reconsolidation window does not influence appetitive choice

2015 ◽  
Author(s):  
Akram Bakkour ◽  
Tom Schonberg ◽  
Ashleigh Hover ◽  
Russell Poldrack
Keyword(s):  
Reversal Learning ◽  
Behavioral Change ◽  
Choice Behavior ◽  
Self Control ◽  
Memory Reconsolidation ◽  
Automatic Processes ◽  
Future Directions ◽  
Behavioral Maintenance ◽  
Over Time

Influencing choice behavior is key to achieving behavioral change. Traditional means to influence choice behavior rely on effortful self control, which is known to be fragile under several circumstances, rendering these methods ineffectual in maintaining any change in behavior over time. Behavioral maintenance efforts are likely more effective over the long term if they target more automatic processes such as attention or memory. Memories are not set in stone and are vulnerable to change and updating under certain circumstances when retrieved. It is possible to target specific memories for updating. In two studies, we sought to update the memory for an appetitive choice by way of reversal learning following retrieval of the targeted choice behavior. We found that targeting memories of a choice behavior for updating shortly after a reminder did not significantly attenuate the renewal of the targeted choice under extinction conditions. Possible explanations and suggested future directions are discussed.

Knowledge Combination and the Potential Advantages of Family Firms in Searching for Opportunities

2011 ◽  
Vol 35 (6) ◽  
pp. 1179-1197 ◽  
Author(s):  
Pankaj C. Patel ◽  
James O. Fiet
Keyword(s):  
Human Capital ◽  
Family Firms ◽  
Family Relations ◽  
Knowledge Structures ◽  
Systematic Search ◽  
Economies Of Scope ◽  
Specific Knowledge ◽  
Knowledge Stocks ◽  
Over Time

This study examines differences in knowledge structures and combinative capabilities that provide family firms with distinct advantages over nonfamily firms in identifying opportunities. Drawing on constrained, systematic search, we explore how noneconomic goals and family relations enhance searching for opportunities. Unique human capital conditions create specific knowledge and economies of scope in knowledge combination. Differences in knowledge stocks, knowledge combination, and the long–term orientation of family firm managers explain differences in finding opportunities between family and nonfamily firms. Furthermore, we propose that family firms are more likely to improve their search routines over time. Fewer endgame scenarios in family firms allow the refinement of search routines.

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