Understanding the Perspective of  Behavioral Economics’ Planning Fallacy in  Improving Business Strategy for Kopi Bon

In seeking differentiation value, Small Medium Enterprises tend to have limitations which hinder their way in developing the business strategy. As an SME that has established its two-year business operation—Kopi Bon is being analyzed and investigated from the perspective of behavioral economics’ Planning Fallacy—as it shows that the planning process is filled with distortion made from judgments as a result of behavioral biases. The study revealed how cognitive biases that involve planning fallacy as a supporting theory influences the company’s decision-making process—where later could be affected to the decision making in terms of operational activities which comprises of the quality of products and services, to the company’s branding. Also, the study reveals how understanding planning fallacy would make improvement towards business strategy to survive within the pandemic of COVID-19.

Download Full-text

Strategizing Information Systems: An Empirical Analysis of IT Alignment and Success in SMEs

Computers ◽

10.3390/computers8040074 ◽

2019 ◽

Vol 8 (4) ◽

pp. 74 ◽

Cited By ~ 1

Author(s):

Kitsios ◽

Kamariotou

Keyword(s):

Information Systems ◽

Organizational Structure ◽

Organizational Performance ◽

Business Strategy ◽

Planning Process ◽

Multivariate Regression Analysis ◽

It Alignment ◽

Systems Planning ◽

Small Medium Enterprises ◽

Medium Enterprises

IT investment is a crucial issue as it does not only influence the performance in Small-Medium Enterprises (SMEs) but it also helps executives to align business strategy with organizational performance. Admittedly, though, there is ineffective use of Information Systems (IS) due to a lack of strategic planning and of formal processes resulting in executives’ failure to develop IS plans and achieve long-term sustainability. Therefore, the purpose of this paper is to examine the phases of Strategic Information Systems Planning (SISP) process that contribute to a greater extent of success so that guidelines regarding the implementation of the process in SMEs can be provided. Data was collected by 160 IS executives in Greek SMEs during February and May 2017. Multivariate Regression Analysis was applied on the detailed items of the SISP process and success constructs. The results of this survey present that managers should be aware of the strategic use of IS planning so as to increase competitive advantage. Senior executives should choose the appropriate IT infrastructure (related to their business strategy and organizational structure), so as to align business strategy with organizational structure. The findings of this paper could help IS executives concentrate their efforts on business objectives and recognize the great value of the planning process on their business.

Download Full-text

Cognitive Biases in Decision Making in Post-Bureaucratic Organizations

Advances in Human Resources Management and Organizational Development - Evolution of the Post-Bureaucratic Organization ◽

10.4018/978-1-5225-1983-6.ch017 ◽

2017 ◽

pp. 358-382

Author(s):

Marie-Therese Claes ◽

Thibault Jacquemin

Keyword(s):

Decision Making ◽

Behavioral Economics ◽

Cognitive Biases ◽

Rational Choice Theory ◽

Choice Theory ◽

Decision Making Process ◽

Rational Decision ◽

Bureaucratic Organization ◽

System 2 ◽

System 1

In today's post-bureaucratic organization, where decision-making is decentralized, most managers are confronted with highly complex situations where time-constraint and availability of information makes the decision-making process essential. Studies show that a great amount of decisions are not taken after a rational decision-making process but rather rely on instinct, emotion or quickly processed information. After briefly describing the journey of thoughts from Rational Choice Theory to the emergence of Behavioral Economics, this chapter will elaborate on the mechanisms that are at play in decision-making in an attempt to understand the root causes of cognitive biases, using the theory of Kahneman's (2011) System 1 and System 2. It will discuss the linkage between the complexity of decision-making and post-bureaucratic organization.

Download Full-text

A behavioral economics perspective on the COVID-19 vaccine amid public mistrust

Translational Behavioral Medicine ◽

10.1093/tbm/ibaa147 ◽

2021 ◽

Author(s):

Jessica Londeree Saleska ◽

Kristen R Choi

Keyword(s):

Decision Making ◽

Side Effects ◽

Behavioral Economics ◽

Cognitive Biases ◽

Vaccine Development ◽

Vaccine Uptake ◽

Public Health Professionals ◽

Human Decision ◽

Vaccine Decision Making ◽

To Receive

Abstract The COVID-19 vaccine development, testing, and approval processes have moved forward with unprecedented speed in 2020. Although several vaccine candidates have shown promising results in clinical trials, resulting in expedited approval for public use from the U.S. Food and Drug Administration, recent polls suggest that Americans strongly distrust the vaccine and its approval process. This mistrust stems from both the unusual speed of vaccine development and reports about side effects. This article applies insights from behavioral economics to consider how the general public may make decisions around whether or not to receive a future COVID-19 vaccine in a context of frequent side effects and preexisting mistrust. Three common cognitive biases shown to influence human decision-making under a behavioral economics framework are considered: confirmation bias, negativity bias, and optimism bias. Applying a behavioral economics framework to COVID-19 vaccine decision-making can elucidate potential barriers to vaccine uptake and points of intervention for clinicians and public health professionals.

Download Full-text

USED THE BUSINESS MODEL OF CANVAS (BMC) TO CREATE ALTERNATIVE STRATEGIES IN BUSINESS DEVELOPMENT OF THE MICRO SMALL MEDIUM ENTERPRISES

10.31219/osf.io/7evdj ◽

2017 ◽

Author(s):

purwantoro ◽

Rina Ari Rohmah

Keyword(s):

Business Model ◽

Business Strategy ◽

Swot Analysis ◽

Business Owners ◽

Customer Segmentation ◽

Business Strategies ◽

Business Model Canvas ◽

Small Medium Enterprises ◽

The Right ◽

Medium Enterprises

Micro Small medium enterprises (UMKM) in each state specifically in the ASEAN region faced with the situation of global competition. A very tight competition is forcing businessmen to Become the best. One of the ways that it can be Reached by the trade to be Able to be the best business strategy is Appropriate, effective and efficient. This research aims to find out how the application business model canvas in creating alternative business strategies for the development of UMKM. The second objective is to know the proper strategic alternatives for the development of UMKM. The methods used in this research is descriptive qualitative approach with the use of informants as respondents research. The source of data used is the business owners as much as 16 UMKM who open businesses in the downtown area of Pasir Pengaraian. Data collection techniques directly using interview techniques, observation and documentation. This research uses a template business model canvas to map strategy for the effort and combined with the SWOT analysis. Based on Data Obtained from the results of research, that the description of the business model approach of UMKM using Business Model Canvas outline can be used as Recommendations for business strategy, the business model of the which is currently already underway is Able to meet the Nine elements of the blocks on the template business model canvas. The findings of this research are that not all the UMKM business strategy and have just run a business without the vision of enterprise development. Based on the results of the SWOT analysis can be found that new alternative Efforts by optimizing internal strength in revenue streams on each of UMKM and conduct of elections to the right customer segments. Suggestions that may the researcher pointed out every UMKM should be more online to have the vision to grow and continue to innovate against products goods or services, increase of customer segmentation and the make use of business model canvas approach in making the strategy of the business.

Download Full-text

EVALUASI PENGEMBANGAN UMKM KABUPATEN ROKAN HULU MENGGUNAKAN BUSINES MODEL CANVAS

JURNAL NUSANTARA APLIKASI MANAJEMEN BISNIS ◽

10.29407/nusamba.v4i2.12977 ◽

2019 ◽

Vol 4 (2) ◽

pp. 165-174

Author(s):

Purwantoro Purwantoro

Keyword(s):

Business Model ◽

Business Strategy ◽

Swot Analysis ◽

Customer Segmentation ◽

Business Strategies ◽

Business Model Canvas ◽

Data Source ◽

Small Medium Enterprises ◽

The Right ◽

Medium Enterprises

Micro Small medium enterprises (UMKM) in each state specifically in the ASEAN region faced with the situation of global competition. A very tight competition is forcing businessmen to become the best. One of the ways that it can be reached by the trade to be able to be the best business strategy is appropriate, effective and efficient. This research aims to find out how the application business model canvas in creating alternative business strategies for the development of UMKM. The second objective is to know the proper strategic alternatives for the development of UMKM. The methods used in this research is descriptive qualitative approach with the use of informants as respondents research. The data source used is the business owners as much as 16 UMKM who open businesses in the downtown area of Pasir Pengaraian. Data collection techniques using interview techniques directly, observation and documentation. This research uses a template business model canvas to map strategy for the effort and combined with the SWOT analysis. Based on data obtained from the results of research, that the description of the business model approach UMKM using Business Model Canvas outline can be used as recommendations for business strategy, the business model which is currently already underway is able to meet the Nine elements of the blocks on the template business model canvas. The findings of this research are that not all the UMKM business strategy and have just run a business without the vision of enterprise development. Based on the results of the SWOT analysis can be found that alternative new efforts by optimizing internal strength in revenue streams on each UMKM and conduct elections to the right customer segments. Suggestions that may the researcher pointed out every UMKM should be more daring to have the vision to grow and continue to innovate against products goods or services, increase customer segmentation and make use of business model canvas approach in making the strategy of the business.

Download Full-text

Penerapan Strategi E-business Untuk Meningkatkan Keunggulan Kompetitif dari Usaha Mikro Kecil Menengah di Indonesia (Studi kasus Trooper Electronic Yogyakarta)

Jurnal Buana Informatika ◽

10.24002/jbi.v8i4.1444 ◽

2017 ◽

Vol 8 (4) ◽

Author(s):

Yonathan Dri Handarkho ◽

Timothy Ryan Suryanto ◽

Findra Kartika Sari Dewi ◽

Eddy Julianto

Keyword(s):

Social Media ◽

Business Model ◽

Business Strategy ◽

Evaluation Model ◽

Internet Technology ◽

The Internet ◽

Organization Strategy ◽

Use Of Social Media ◽

Small Medium Enterprises ◽

Medium Enterprises

Abstract. Today, many micro small medium enterprises (MSME) utilize the internet technology to enhance their competitive advantage. One of the popular strategies is the use of e-business to enhance business process performance of the organization. However, to implement e-business strategy, an organization needs to have a model that can help align e-business strategy with organization strategy. That is why in this research, the authors try to apply and implement e-business strategy in MSME Trooper Electronic Yogyakarta by using e-business evaluation model proposed by Raisinghani et al. (2007). In this research, an e-commerce website for Trooper Electronic Yogyakarta will be developed and the use of social media will be maximized.Keyword: e-business, model, e-commerce, social media, MSME Abstrak. Penerapan Strategi E-business Untuk Meningkatkan Keunggulan Kompetitif dari Usaha Mikro Kecil Menengah di Indonesia (Studi Kasus Trooper Electronic Yogyakarta). Berkembangnya teknologi internet membuat banyak pelaku usaha termasuk UMKM mulai memanfaatkan teknologi tersebut untuk meningkatkan keunggulan kompetitifnya. Strategi pemanfaatan teknologi internet untuk meningkatkan performa proses bisnis dari sebuah unit usaha disebut sebagai E-business. Hanya saja untuk menerapkan strategi e-business tersebut, unit usaha seperti UMKM memerlukan sebuah model atau kerangka kerja yang dapat membantu mereka memastikan bahwa strategi yang mereka terapkan sesuai dengan kondisi dan proses bisnis dari UMKM tersebut. Terkait dengan hal tersebut, pada penelitian ini, penulis mencoba menerapkan dan mengimplementasikan strategi e-busines pada UMKM Trooper Electronic Yogyakarta dengan mengadopsi model strategi e-busines yang diusulkan oleh Raisinghani dkk. (2007). Penerapan strategi e-business pada penelitian ini diwujudkan dalam bentuk pembangunan web e-commerce dan pemanfaatan media sosial untuk mendukung proses bisnis dari UMKM Trooper Electronic Yogyakarta. Kata Kunci: e-business, model, e-commerce, media sosial, UMKM

Download Full-text

Strategic Management Accounting And Decision-Making In Small Medium Enterprises In Malaysia

10.15405/epsbs.2020.12.05.17 ◽

2020 ◽

Author(s):

Azrinawati Mohd Remali

Keyword(s):

Decision Making ◽

Strategic Management ◽

Management Accounting ◽

Strategic Management Accounting ◽

Small Medium Enterprises ◽

Medium Enterprises

Download Full-text

KAJIAN ANALISIS KINERJA USAHA MIKRO KECIL MENENGAH (UMKM) DENGAN MENGGUNAKAN METODE BALANCE SCORECARD

JURNAL LENTERA BISNIS ◽

10.34127/jrlab.v6i2.188 ◽

2018 ◽

Vol 6 (2) ◽

pp. 25

Author(s):

Edi Wahyu Wibowo

Keyword(s):

Business Strategy ◽

Process Time ◽

Balance Scorecard ◽

Management Tools ◽

Customer Complaints ◽

Financial Perspective ◽

Small Medium Enterprises ◽

Medium Enterprises ◽

Number Of Customers

ABSTRACT Micro Small Medium Enterprises (MSMEs) as an organization is required to have a good performance. Performance is becoming a world issue today. This happens as a consequence of the public demand for the need for excellent service or high quality service. Quality is inseparable from the standard, because performance is measured by standards. Through performance, it is expected to demonstrate its professional contribution significantly in improving the quality of service affecting general service to the organization in which it works, and the ultimate impact is on the quality of life and welfare of the community. In order for the performance of MSMEs is good then the measuring tool is needed to know how far the success rate performance of MSMEs itself. One tool to measure performance is to use a balance scorecard. Balance scorecard is a measure of company performance strategy integrated in 4 perspectives that is financial perspective, customer, internal process and learning and growth. Balance scorecard is a management system mechanism capable of translating organizational vision and strategy into real action in the field. Balance Scorecard is one of the management tools that has been proven to help many companies in implementing its business strategy. Balance Scorecard is expected to generate strategic decisions to improve the performance of MSMEs. Balance scorecard will measure in 4 perspectives, namely the financial perspective that is about Increased revenue and cost efficiency. In the customer perspective will be measured on increasing the number of customers and reduce the number of customer complaints. In an internal perspective the process will be analyzed on improving service process time and after-sales service efficiency. In the learning and growth perspective will be analyzed on improving employee skills and retaining employee retention. Keywords : Micro Small Medium Enterprises (MSMEs), Balance Scorecard, Performance

Download Full-text

Instagram Influencer Selection Analysis on the SME’s Brand Campaign in Indonesia using Correlation Analysis (Case Study: IAM.ID)

Psychology and Education Journal ◽

10.17762/pae.v58i1.1285 ◽

2021 ◽

Vol 58 (1) ◽

pp. 3455-3461

Author(s):

Icha Isana Febriana, Isti Raafaldini Mirzanti

Keyword(s):

Content Analysis ◽

Correlation Analysis ◽

Business Strategy ◽

Data Analytics ◽

Strong Relationship ◽

Market Potential ◽

Small Medium Enterprises ◽

Medium Enterprises ◽

Selection Of

The number of Small Medium Enterprises (SMEs) in Indonesia reached 64,194,057 units in 2018 and made a good impact on Indonesia’s economy. However, it turns out that SMEs face various problems, such as business strategy, marketing, and branding. Only 12% of SMEs currently use digital as one of their platforms and most of these businesses are still in stagnant condition. Currently, SMEs are starting to use influencers as their marketing strategy on Instagram. However, it is difficult to find a suitable influencer for their product or service due to so many influencers with various categories. The market potential in this field is quite high considering that Indonesia has the largest number of social media users in the world, especially Facebook and Instagram. Globally 5-10 billion USD marketing is done through influencer marketing in 2020, 65% of companies plan to use more influencer marketing and 92% of customers trust personal recommendations more than conventional advertising. An analysis was conducted of the selection of Instagram influencers on the brand campaign in Indonesia through a case study from IAM.ID. This company provides solutions in the fields of influencer marketing and technology with influencers data analytics. IAM.ID services include content creations, endorsement, store visits, and influencer’s community. In this research, the hypothesis is based on the level of engagement and influencer category. Influencers are considered more effective if they match the advertised brand. Influencer data analytics are obtained from engagement rate (ER) influencers, the number of followers, influencer categories, and content analysis. Brand analysis is obtained from brand preferences obtained through questionnaires. Then a correlation analysis was carried out on the ER campaign and the result was that both the number of followers and ER influencers had a strong relationship to the ER campaign. Besides, the suitability of the influencer category can also be checked using content analysis.

Download Full-text

How Behavioral Economics and Nudges Could Help Diminish Irrationality in Suicide-Related Decisions

Perspectives on Psychological Science ◽

10.1177/1745691619866463 ◽

2019 ◽

Vol 15 (1) ◽

pp. 44-61 ◽

Cited By ~ 2

Author(s):

Brian W. Bauer ◽

Daniel W. Capron

Keyword(s):

Decision Making ◽

Suicide Attempt ◽

Behavioral Economics ◽

Bounded Rationality ◽

Suicide Prevention ◽

Cognitive Biases ◽

Confirmation Bias ◽

Computational Power ◽

Behavioral Economic ◽

New Evidence

People regularly make decisions that are not aligned with their own self-interests. These irrational decisions often stem from humans having bounded rationality (e.g., limited computational power), which produces reliable cognitive biases that occur outside of people’s awareness and influences the decisions people make. There are many important decisions leading up to a suicide attempt, and it is likely that these same biases exist within suicide-related decisions. This article presents an argument for the likely existence of cognitive biases within suicide-related decision making and how they may influence people to make irrational decisions. In addition, this article provides new evidence for using a behavioral economic intervention—nudges—as a potential way to combat rising suicide rates. We explore how nudges can help increase means safety, disseminate suicide prevention skills/materials, diminish well-known biases (e.g., confirmation bias), and uncover biases that may be occurring when making suicide-related decisions.

Download Full-text