Decision-maker's overconfidence and international performance: the role of the adoption of intuitive practices
Journal of Small Business and Enterprise Development
ISSN: 1462-6004
Article publication date: 24 January 2022
Issue publication date: 18 October 2022
Abstract
Purpose
The paper analyses the influence of the decision-makers' overconfidence on the intuitive practices' adoption, as well as on the international performance during international strategic decision-making processes (SDMPs) of small- and medium-sized enterprises (SMEs). Moreover, the study investigates the possible mediating effect of intuition on the relationship between overconfidence and international performance.
Design/methodology/approach
A semi-structured questionnaire based on a sample of 160 SMEs and a regression analysis have been employed.
Findings
Results show a negative relationship between intuition and international performance and a positive one between overconfidence and international performance. Furthermore, a negative relation between overconfidence and intuition has been identified. Findings also highlight the mediating role of intuition in the relationship between overconfidence and international performance.
Practical implications
The paper provides valuable implications related to the analysis of overconfidence as a critical decision-maker's character and intuition as a feature of the decision-making methodology. Moreover, the study offers indications for SMEs facing complex strategic decisions.
Originality/value
The paper adopts an original perspective by combining the SDMP analysis with that of international strategy within the SMEs context. Additionally, the study enriches the existing literature by (1) investigating overconfidence in the decision-making; (2) enhancing the examination of overconfidence and intuitive practices in the international SDMP; (3) deepening the research field focused on the identification of the intuitive processes' predictors that is still in its infancy.
Keywords
Acknowledgements
Funding: The research was funded by competitive research grant - Carlo Bo University of Urbino, Department of Economics, Society and Politics (Delibera n. 17/80 del 28 marzo 2018 del Consiglio di Dipartimento di Economia, Società, Politica).
Citation
Musso, F., Francioni, B., Curina, I., Tramontana, F., Polidori, P. and Pediconi, M.G. (2022), "Decision-maker's overconfidence and international performance: the role of the adoption of intuitive practices", Journal of Small Business and Enterprise Development, Vol. 29 No. 7, pp. 1049-1070. https://doi.org/10.1108/JSBED-10-2021-0429
Publisher
:Emerald Publishing Limited
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