scholarly journals The effect of individuals’ analytical orientation and capabilities on decision quality and regret

2022 ◽  
Vol 9 (1) ◽  
pp. 0-0
Keyword(s):  
Decision Making ◽  
Least Squares ◽  
Business Students ◽  
Decision Makers ◽  
Data Driven ◽  
Decision Quality ◽  
Business Analytics ◽  
Path Modeling ◽  
Individual Decision ◽  
Data Driven Decisions

Decision makers are exposed to an increasing amount of information. Algorithms can help people make better data-driven decisions. Previous research has focused on both companies’ orientation towards analytics use and the required skills of individual decision makers. However, each individual can make either analytically based or intuitive decisions. We investigated the characteristics that influence the likelihood of making analytical decisions, focusing on both analytical orientation and capabilities of individuals. We conducted a survey using 462 business students as proxies for decision makers and used partial least squares path modeling to show that analytical capabilities and analytical orientation influence each other and affect analytical decision-making, thereby impacting decision quality and decision regret. Our findings suggest that when implementing business analytics solutions, companies should focus on the development not only of technological capabilities and individuals’ skills but also of individuals’ analytical orientation.

Storytelling, business analytics and big data interpretation

2019 ◽  
Vol 43 (2) ◽  
pp. 204-222 ◽  
Author(s):  
Valeriia Boldosova ◽  
Severi Luoto
Keyword(s):  
Decision Making ◽  
Data Interpretation ◽  
Daily Basis ◽  
Data Driven ◽  
Complex Data ◽  
Business Analytics ◽  
Content Type ◽  
Individual Level ◽  
Business Practitioners ◽  
Data Driven Decisions

Purpose The purpose of this paper is to explore the role of storytelling in data interpretation, decision-making and individual-level adoption of business analytics (BA). Design/methodology/approach Existing theory is extended by introducing the concept of BA data-driven storytelling and by synthesizing insights from BA, storytelling, behavioral research, linguistics, psychology and neuroscience. Using theory-building methodology, a model with propositions is introduced to demonstrate the relationship between storytelling, data interpretation quality, decision-making quality, intention to use BA and actual BA use. Findings BA data-driven storytelling is a narrative sensemaking heuristic positively influencing human behavior towards BA use. Organizations deliberately disseminating BA data-driven stories can improve the quality of individual data interpretation and decision-making, resulting in increased individual utilization of BA on a daily basis. Research limitations/implications To acquire a deeper understanding of BA data-driven storytelling in behavioral operational research (BOR), future studies should test the theoretical model of this study and focus on exploring the complexity and diversity in individual attitudes toward BA. Practical implications This study provides practical guidance for business practitioners who struggle with interpreting vast amounts of complex data, making data-driven decisions and incorporating BA into daily operations. Originality/value This cross-disciplinary study develops existing BOR, storytelling and BA literature by showing how a novel BA data-driven storytelling approach can facilitate BA adoption in organizations.

Jumping to conclusions – an analysis of the NBA Draft Combine athleticism data and its influence on managerial decision-making

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tobias Berger ◽  
Frank Daumann
Keyword(s):  
Decision Making ◽  
Design Methodology ◽  
Predictive Power ◽  
Principal Component ◽  
Decision Makers ◽  
Decision Quality ◽  
Managerial Behavior ◽  
Managerial Decision ◽  
Content Type ◽  
Selection Behavior

PurposeThe NBA Draft policy pursues the goal to provide the weakest teams with the most talented young players to close the gap to the superior competition. But it hinges on appropriate talent evaluation skills of the respective organizations. Research suggests the policy might be valid but to date unable to produce its intended results due to the “human judgement-factor”. This paper investigates specific managerial selection-behavior-influencing information to examine why decision-makers seem to fail to constantly seize the opportunities the draft presents them with.Design/methodology/approachAthleticism data produced within the NBA Draft Combine setting is strongly considered in the player evaluations and consequently informs the draft decisions of NBA managers. Curiously, research has failed to find much predictive power within the players pre-draft combine results for their post-draft performance. This paper investigates this clear disconnect, by examining the pre- and post-draft data from 2000 to 2019 using principal component and regression analysis.FindingsEvidence for an athletic-induced decision-quality-lowering bias within the NBA Draft process was found. The analysis proves that players with better NBA Draft Combine results tend to get drafted earlier. Controlling for position, age and pre-draft performance there seems to be no proper justification based on post-draft performance for this managerial behavior. This produces systematic errors within the structure of the NBA Draft process and leads to problematic outcomes for the entire league-policy.Originality/valueThe paper delivers first evidence for an athleticism-induced decision-making bias regarding the NBA Draft process. Informing future selection-behavior of managers this research could improve NBA Draft decision-making quality.

The Impact of Conflict- Generating Techniques on Student Reactions and Decision Quality

1995 ◽  
Vol 58 (4) ◽  
pp. 39-45
Author(s):  
Granger Macy ◽  
Joan C. Neal
Keyword(s):  
Decision Making ◽  
Business Students ◽  
Decision Quality ◽  
Structured Decision Making ◽  
Constructive Conflict ◽  
Significant Difference ◽  
Student Reactions ◽  
Graduate Business Students ◽  
The Impact

This study examined the effectiveness of conflict-generating decision-making techniques in the college classroom. Utiliz ing constructive conflict in classroom exercises may affect decision-making quality and student reactions. This study of undergraduate and graduate business students found significant difference in both the quality of the decisions and in student reactions to the techniques. The findings and discussion indicate the potential for appropriate use of structured decision-making techniques in the classroom.

Designing a Business Analytics Culture in Organizations in India

2021 ◽  
pp. 670-678
Author(s):  
Tanushri Banerjee ◽  
Arindam Banerjee
Keyword(s):  
Decision Making ◽  
Decision Makers ◽  
Data Organization ◽  
Business Analytics ◽  
Domain Specific ◽  
Consumer Lending ◽  
Effective Decision ◽  
Effective Decision Making

There are several challenges faced by decision makers while deploying Business Analytics in their organization. There may not be one resolution approach that is suitable for creating a Business Analytics culture in all organizations. However, it is easy to perceive that most India-based organizations may have similar issues of data organization that may be impeding their progression in the field of Analytics. Based on their research, the authors have proposed a framework for adoption of Analytics in Indian firms in their book “Weaving Analytics for Effective Decision Making” by SAGE. They propose to use that model for explaining certain domain specific adoption of Business Analytics in organizations in India. They have used a case study of a Global Bank which is in the process of establishing its consumer lending USA operations, an offshore captive operation, in India to describe the process of building an Analytics team in an organization in India. Data processed using R has been added as screenshots for supporting the findings.

scholarly journals Building strong health supply chain systems: the visibility and analytics network approach to improving the Nigeria immunisation supply chain

2018 ◽  
Vol 25 (4) ◽  
pp. 199-206 ◽  
Author(s):  
Chibuzo Ottih ◽  
Kevin Cussen ◽  
Mahmud Mustafa
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Data Analytics ◽  
Data Driven ◽  
Evidence Based ◽  
Type Method ◽  
Effective Operation ◽  
Data Driven Decisions ◽  
Vaccine Availability ◽  
Evidence Based Decision Making

BackgroundHealth supply chain managers are unable to effectively monitor the performance of the immunisation supply chain in Nigeria. As a result, they are unable to make effective, data-driven decisions. This results in poor vaccine availability at some service delivery points. A lack of reliable data for evidence-based decision making is a significant contributor to this challenge.MethodThe visibility and analytics network (VAN) principles were introduced to enable end-to-end visibility in the immunisation supply chain and logistics (ISCL) system and make more accurate data available to health supply chain managers.ResultsThe application of the VAN principles has led to improved data collection, real-time stock visibility and enhanced data analytics framework. This enhanced visibility has promoted a culture of accountability and data-driven decision-making, previously unattainable. Health supply chain managers are now equipped with better skills and tools to promote effective operation of the immunisation supply chain.ConclusionThe introduction of VAN principles has been an effective approach to improving data visibility and creating incremental improvements in the ISCL in Nigeria.

Stressed decision makers and use of decision aids: a literature review and conceptual model

2019 ◽  
Vol 33 (2) ◽  
pp. 710-754 ◽  
Author(s):  
Monica Adya ◽  
Gloria Phillips-Wren
Keyword(s):  
Decision Making ◽  
Conceptual Model ◽  
Perceived Stress ◽  
Decision Aids ◽  
Decision Makers ◽  
Decision Quality ◽  
Negative Effects ◽  
Managerial Decision ◽  
Content Type ◽  
The Impact

Purpose Decision making is inherently stressful since the decision maker must choose between potentially conflicting alternatives with unique hazards and uncertain outcomes. Whereas decision aids such as decision support systems (DSS) can be beneficial in stressful scenarios, decision makers sometimes misuse them during decision making, leading to suboptimal outcomes. The purpose of this paper is to investigate the relationship between stress, decision making and decision aid use. Design/methodology/approach The authors conduct an extensive multi-disciplinary review of decision making and DSS use through the lens of stress and examine how stress, as perceived by decision makers, impacts their use or misuse of DSS even when such aids can improve decision quality. Research questions examine underlying sources of stress in managerial decision making that influence decision quality, relationships between a decision maker’s perception of stress, DSS use/misuse, and decision quality, and implications for research and practice on DSS design and capabilities. Findings The study presents a conceptual model that provides an integrative behavioral view of the impact of a decision maker’s perceived stress on their use of a DSS and the quality of their decisions. The authors identify critical knowledge gaps and propose a research agenda to improve decision quality and use of DSS by considering a decision maker’s perceived stress. Originality/value This study provides a previously unexplored view of DSS use and misuse as shaped by the decision and job stress experienced by decision makers. Through the application of four theories, the review and its findings highlight key design principles that can mitigate the negative effects of stressors on DSS use.

Thünen-Vorlesung: Unternehmensführung und ökonomische Rationalität

2003 ◽  
Vol 4 (3) ◽  
pp. 295-312 ◽  
Author(s):  
Herbert Hax
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Decision Theory ◽  
Organizational Context ◽  
Market Value ◽  
Normative Theory ◽  
Decision Makers ◽  
Individual Decision ◽  
Individual Decision Making ◽  
Definition Of

Abstract In a normative theory of decision making in the firm, limited cognitive capabilities of decision makers can be taken into account in different ways. If individual decision making alone is being considered, the concept of rationality must be defined in such a way that it is acceptable from the viewpoint of potential users of the theory. In an organizational context, normative theory deals primarily with the design of contracts; as far as the anticipation of the actual behaviour of contract partners is concerned an empirically valid descriptive decision theory is needed. A major problem which arises if one applies contract theory to problems of corporate governance is the definition of an adequate standard to evaluate the firm’s outcome periodically. Accounting profit and market value are two possible measures, but both have grave shortcomings.

On Extending Power-Geometric Operators to Interval-Valued Hesitant Fuzzy Sets and Their Applications to Group Decision Making

2016 ◽  
Vol 15 (05) ◽  
pp. 1055-1114 ◽  
Author(s):  
Sheng-Hua Xiong ◽  
Zhen-Song Chen ◽  
Yan-Lai Li ◽  
Kwai-Sang Chin
Keyword(s):  
Decision Making ◽  
Fuzzy Sets ◽  
Group Decision Making ◽  
Group Decision ◽  
Aggregation Operators ◽  
Decision Makers ◽  
Individual Decision ◽  
Hesitant Fuzzy Sets ◽  
Variable Power ◽  
Interval Valued

Developing aggregation operators for interval-valued hesitant fuzzy sets (IVHFSs) is a technological task we are faced with, because they are specifically important in many problems related to the fusion of interval-valued hesitant fuzzy information. This paper develops several novel kinds of power geometric operators, which are referred to as variable power geometric operators, and extends them to interval-valued hesitant fuzzy environments. A series of generalized interval-valued hesitant fuzzy power geometric (GIVHFG) operators are also proposed to aggregate the IVHFSs to model mandatory requirements. One of the important characteristics of these operators is that objective weights of input arguments are variable with the change of a non-negative parameter. By adjusting the exact value of the parameter, the influence caused by some “false” or “biased” arguments can be reduced. We demonstrate some desirable and useful properties of the proposed aggregation operators and utilize them to develop techniques for multiple criteria group decision making with IVHFSs considering the heterogeneous opinions among individual decision makers. Furthermore, we propose an entropy weights-based fitting approach for objectively obtaining the appropriate value of the parameter. Numerical examples are provided to illustrate the effectiveness of the proposed techniques.

Searching for Herbert Simon

2013 ◽  
Vol 4 (1) ◽  
pp. 1-12 ◽  
Author(s):  
Michael F. Gorman ◽  
Donald E. Wynn ◽  
William David Salisbury
Keyword(s):  
Decision Making ◽  
Analytical Techniques ◽  
Decision Makers ◽  
Business Analytics ◽  
Herbert Simon ◽  
Business Decision ◽  
Wide Range ◽  
Human Decision ◽  
Potential Impact ◽  
Effective Use

Since Herbert Simon’s seminal work (Simon, 1957) on bounded rationality researchers and practitioners have sought the “holy grail” of computer-supported decision-making. A recent wave of interest in “business analytics” (BA) has elevated interest in data-driven analytical decision making to the forefront. While reporting and prediction via business intelligence (BI) systems has been an important component to business decision making for some time, BA broadens its scope and potential impact in business decision making further by moving the focus to prescription. The authors see BA as the end-to-end process integrating the production through consumption of the data, and making more extensive use of the data through heavily automated, integrated and advanced predictive and prescriptive tools in ways that better support, or replace, the human decision maker. With the advent of “big data”, BA already extends beyond internal databases to external and unstructured data that is publicly produced and consumed data with new analytical techniques to better enable business decision makers in a connected world. BI research in the future will be broader in scope, and the challenge is to make effective use of a wide range of data with varying degrees of structure, and from sources both internal and external to the organization. In this paper, we suggest ways that this broader focus of BA will also affect future BI research streams.

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