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1 – 10 of 424Managers must make numerous strategic decisions in order to initiate and implement a business model innovation (BMI). This paper examines how managers perceive the management team…
Abstract
Purpose
Managers must make numerous strategic decisions in order to initiate and implement a business model innovation (BMI). This paper examines how managers perceive the management team interacts when making BMI decisions. The paper also investigates how group biases and board members’ risk willingness affect this process.
Design/methodology/approach
Empirical data were collected through 26 in-depth interviews with German managing directors from 13 companies in four industries (mobility, manufacturing, healthcare and energy) to explore three research questions: (1) What group effects are prevalent in BMI group decision-making? (2) What are the key characteristics of BMI group decisions? And (3) what are the potential relationships between BMI group decision-making and managers' risk willingness? A thematic analysis based on Gioia's guidelines was conducted to identify themes in the comprehensive dataset.
Findings
First, the results show four typical group biases in BMI group decisions: Groupthink, social influence, hidden profile and group polarization. Findings show that the hidden profile paradigm and groupthink theory are essential in the context of BMI decisions. Second, we developed a BMI decision matrix, including the following key characteristics of BMI group decision-making managerial cohesion, conflict readiness and information- and emotion-based decision behavior. Third, in contrast to previous literature, we found that individual risk aversion can improve the quality of BMI decisions.
Practical implications
This paper provides managers with an opportunity to become aware of group biases that may impede their strategic BMI decisions. Specifically, it points out that managers should consider the key cognitive constraints due to their interactions when making BMI decisions. This work also highlights the importance of risk-averse decision-makers on boards.
Originality/value
This qualitative study contributes to the literature on decision-making by revealing key cognitive group biases in strategic decision-making. This study also enriches the behavioral science research stream of the BMI literature by attributing a critical influence on the quality of BMI decisions to managers' group interactions. In addition, this article provides new perspectives on managers' risk aversion in strategic decision-making.
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Matteo Cristofaro, Pier Luigi Giardino, Riccardo Camilli and Ivo Hristov
This article aims to trace the historical development of the behavioral strategy (BS) field, which implements psychology in strategic management. Mainly, it provides a contextual…
Abstract
Purpose
This article aims to trace the historical development of the behavioral strategy (BS) field, which implements psychology in strategic management. Mainly, it provides a contextual understanding of how this stream of research has historically evolved and what relevant future trajectories are. This work is part of the “over half a century of Management Decision” celebrative and informal Journal section.
Design/methodology/approach
We consider BS literature produced in management decision (MD), the oldest and longest-running scholarly publication in management, as a proxy for the evolution of management thought. Through a Systematic Literature Review (SLR) process, we collected – via the MD website and Scopus – a sample of 97 BS articles published in MD from its foundation (1967) until today (2024). Regarding the analysis, we adopted a Reflexive Thematic Analysis approach to synthesize the main BS topics, then read from a historical perspective regarding three “eras” over which the literature developed. Selected international literature outside the Journal’s boundaries was considered to complement this historical analysis.
Findings
Historically, within the BS field, the interest passed from the rules to rationally govern strategic decision-making processes, to studying what causes cognitive errors, to understanding how to avoid biases and to being prepared for dramatic changes. The article also identifies six future research trajectories, namely “positive heuristics,” “context-embedded mental processes,” “non-conventional thinking,” “cognitive evolutionary triggers,” “debiasing strategies” and “behavioral theories for new strategic challenges” that future research could investigate.
Research limitations/implications
The limitation of the study lies in its exclusive focus on MD for investigating the historical evolution of BS, thereby overlooking critical contributions from other journals. Therefore, MD’s editorial preferences have influenced results. A comprehensive SLR on the BS field is still needed, requiring broader journal coverage to mitigate selection biases and enhance field appraisal.
Originality/value
This contribution is the first to offer a historical evolutionary view of the BS field, complementing the few other reviews on this stream of research. This fills a gap in the study of the evolution of management thought.
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Morteza Ghobakhloo, Masood Fathi, Mohammad Iranmanesh, Mantas Vilkas, Andrius Grybauskas and Azlan Amran
This study offers practical insights into how generative artificial intelligence (AI) can enhance responsible manufacturing within the context of Industry 5.0. It explores how…
Abstract
Purpose
This study offers practical insights into how generative artificial intelligence (AI) can enhance responsible manufacturing within the context of Industry 5.0. It explores how manufacturers can strategically maximize the potential benefits of generative AI through a synergistic approach.
Design/methodology/approach
The study developed a strategic roadmap by employing a mixed qualitative-quantitative research method involving case studies, interviews and interpretive structural modeling (ISM). This roadmap visualizes and elucidates the mechanisms through which generative AI can contribute to advancing the sustainability goals of Industry 5.0.
Findings
Generative AI has demonstrated the capability to promote various sustainability objectives within Industry 5.0 through ten distinct functions. These multifaceted functions address multiple facets of manufacturing, ranging from providing data-driven production insights to enhancing the resilience of manufacturing operations.
Practical implications
While each identified generative AI function independently contributes to responsible manufacturing under Industry 5.0, leveraging them individually is a viable strategy. However, they synergistically enhance each other when systematically employed in a specific order. Manufacturers are advised to strategically leverage these functions, drawing on their complementarities to maximize their benefits.
Originality/value
This study pioneers by providing early practical insights into how generative AI enhances the sustainability performance of manufacturers within the Industry 5.0 framework. The proposed strategic roadmap suggests prioritization orders, guiding manufacturers in decision-making processes regarding where and for what purpose to integrate generative AI.
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Jari Huikku, Elaine Harris, Moataz Elmassri and Deryl Northcott
This study aims to explore how managers exercise agency in strategic investment decisions (SIDs) by drawing on their knowledgeability of the strategic context. Specifically, the…
Abstract
Purpose
This study aims to explore how managers exercise agency in strategic investment decisions (SIDs) by drawing on their knowledgeability of the strategic context. Specifically, the authors address the role of position–practice relations and irresistible causal forces in this conduct.
Design/methodology/approach
The authors examine SID-making (SIDM) practices in four case organisations operating in highly competitive markets, conducting interviews with managers at various levels and analysing company documents. Drawing on strong structuration theory, the authors show how managerial decision makers draw upon their knowledge of organisational context when exercising agency in SIDs.
Findings
The authors provide insights into how SIDM behaviour, specifically agents’ conduct, is shaped by a combination of position–practice relations and the agents’ comprehension of their organisation’s context.
Research limitations/implications
The authors extend the SIDM literature by surfacing the issue of how actors’ conjuncturally-specific knowledge of external structures shapes the general dispositions they draw on in exercising agency in practice.
Originality/value
The authors extend the SIDM literature by surfacing the issue of how actors’ conjuncturally-specific knowledge of external structures shapes the general dispositions they draw on in exercising agency in practice. Particularly, the authors contribute to this literature by identifying irresistible causal forces and illuminating why actors might not resist in SIDM processes, despite having the potential to do so.
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Nisreen Abd ALrhman Aljaafreh, Carmen De-Pablos-Heredero and Alicia Orea-Giner
This study explores the crucial role of competitive intelligence (CI) in the tourism sector’s strategic decision-making. CI has significantly transformed the tourism sector…
Abstract
Purpose
This study explores the crucial role of competitive intelligence (CI) in the tourism sector’s strategic decision-making. CI has significantly transformed the tourism sector through new insights and sophistication in data analysis and strategic planning. The rise in tourism-related competition, due to new destinations, varied tourist preferences and sustainability emphasis, makes competitive intelligence essential for understanding future market trends and making informed strategic choices.
Design/methodology/approach
Utilising PRISMA techniques for bibliometric analysis, the study examines literature from 1998 to 2023 (WoS), focusing on service innovation, customer experience management and sustainable strategies. It presents an analysis of the evolution of CI in tourism, its impact, influential works and future research directions.
Findings
Findings show that the multidisciplinary nature of CI in tourism is further evidenced by studies on quality cues, travellers’ information needs and the utilisation of big data. Future studies need to understand both global trends and regional specifics, as shown in investigations of spatial-temporal tourism dynamics.
Originality/value
This study represents a novel contribution to the field of tourism research by offering a comprehensive bibliometric analysis of CI literature from 1998 to 2023. It uniquely integrates service innovation, customer experience management and sustainable strategies within the context of CI, highlighting its multidisciplinary impacts and evolution. These insights collectively emphasise the need for future innovation and a comprehensive understanding of the global-local nexus to inform future tourism research and practice.
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Andrea Lippi and Ilaria Galavotti
This paper aims to explore the relationship between board composition and a firm’s commitment to combatting climate change. Specifically, this study investigates how various…
Abstract
Purpose
This paper aims to explore the relationship between board composition and a firm’s commitment to combatting climate change. Specifically, this study investigates how various characteristics of the board, namely its size and presence of independent directors, and of the directors themselves, including gender diversity, age, educational background and national homogeneity, affect the corporate-level climate change orientation. From a theoretical standpoint, the authors take a cross-fertilizing perspective, bridging upper echelons theory with agency, resource dependence and critical mass theories.
Design/methodology/approach
The study uses ordered probit regression models on a hand-collected multi-country and multi-industry sample of 35 listed firms included in the Global Climate Change Liquid Equity Index (GALPLACC) provided by ECPI. This index is particularly relevant as it focuses on firms that have demonstrated a commitment to climate change, providing a robust dataset for the analysis.
Findings
The findings underscore the importance of disentangling various characteristics of corporate boards and directors. Specifically, the orientation toward climate change is negatively influenced by both board size and having a higher number of independent directors, while it is positively affected by reaching a critical mass of women on the board. Conversely, factors such as average age, educational background and the level of national homogeneity do not show significant effects.
Originality/value
This paper has an exploratory nature and contributes to the ongoing debate on the crucial, yet controversial role played by board-level and directors’ sociodemographic characteristics in shaping a firm’s environmental stance. Moreover, this study offers potential recommendations for policymakers regarding board composition to enhance firms’ climate change orientation.
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Bradley J. Olson, Satyanarayana Parayitam, Matteo Cristofaro, Yongjian Bao and Wenlong Yuan
This paper elucidates the role of anger in error management (EM) and organizational learning behaviors. The study explores how anger can catalyze learning, emphasizing its…
Abstract
Purpose
This paper elucidates the role of anger in error management (EM) and organizational learning behaviors. The study explores how anger can catalyze learning, emphasizing its strategic implications.
Design/methodology/approach
A double-layered moderated-mediated model was developed and tested using data from 744 Chinese CEOs. The psychometric properties of the survey instrument were rigorously examined through structural equation modeling, and hypotheses were tested using Hayes's PROCESS macros.
Findings
The findings reveal that anger is a precursor for recognizing the value of significant errors, leading to a positive association with learning behavior among top management team members. Additionally, the study uncovers a triple interaction effect of anger, EM culture and supply chain disruptions on the value of learning from errors. Extensive experience and positive grieving strengthen the relationship between recognizing value from errors and learning behavior.
Originality/value
This study uniquely integrates affect-cognitive theory and organizational learning theory, examining anger in EM and learning. The authors provide empirical evidence that anger can drive error value recognition and learning. The authors incorporate a more fine-grained approach to leadership when including executive anger as a trigger to learning behavior. Factors like experience and positive grieving are explored, deepening the understanding of emotions in learning. The authors consider both negative and positive emotions to contribute to the complexity of organizational learning.
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Gayatri Panda, Manoj Kumar Dash, Ashutosh Samadhiya, Anil Kumar and Eyob Mulat-weldemeskel
Artificial intelligence (AI) can enhance human resource resiliency (HRR) by providing the insights and resources needed to adapt to unexpected changes and disruptions. Therefore…
Abstract
Purpose
Artificial intelligence (AI) can enhance human resource resiliency (HRR) by providing the insights and resources needed to adapt to unexpected changes and disruptions. Therefore, the present research attempts to develop a framework for future researchers to gain insights into the actions of AI to enable HRR.
Design/methodology/approach
The present study used a systematic literature review, bibliometric analysis, and network analysis followed by content analysis. In doing so, we reviewed the literature to explore the present state of research in AI and HRR. A total of 98 articles were included, extracted from the Scopus database in the selected field of research.
Findings
The authors found that AI or AI-associated techniques help deliver various HRR-oriented outcomes, such as enhancing employee competency, performance management and risk management; enhancing leadership competencies and employee well-being measures; and developing effective compensation and reward management.
Research limitations/implications
The present research has certain implications, such as increasing the HR team's proficiency, addressing the problem of job loss and how to fix it, improving working conditions and improving decision-making in HR.
Originality/value
The present research explores the role of AI in HRR following the COVID-19 pandemic, which has not been explored extensively.
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Jorge Villagrasa, Alejandro Escribá-Esteve, Colin Donaldson and Esther Sánchez-Peinado
In this paper we propose to study the differences among family and non-family-firms in relation to its financial strength, and therefore its potential position to resist in front…
Abstract
Purpose
In this paper we propose to study the differences among family and non-family-firms in relation to its financial strength, and therefore its potential position to resist in front of financial crisis and receive financial support or conditions by public or private institutions.
Design/methodology/approach
We used multiple hierarchical regressions on a sample of 137 Spanish medium-sized firms (SMEs).
Findings
We observe that the perspectives and idiosyncratic characteristics of family-firms (strongly influenced by their socioemotional wealth) will affect the way these companies invest and operate in the market, which would be more related to efficiency because of their higher willingness to continue the legacy of the business and their weak risk-bearing attributes.
Research limitations/implications
Our study adopts a measure of familiness with a dummy variable, and not as a continuous variable as proposed by recent research. Therefore, our results although relevant and significant for the family firm literature, must be viewed carefully. Additional research could also retest some prior studies to depict differences caused by “real” family firm involvement.
Practical implications
Under a non-munificent environment, the financial strength maintained by firms will be highly relevant since this context could likely stress and influence their immediate future and viability, overcoming and blurring any other characteristic present in the firm or its managers.
Originality/value
This paper contributes to the family firm literature by offering insights into the nuanced dynamics between family and non-family firms during economic downturns, specifically examining their financial strength when different strategic options are pursued and when firms are managed by different type of managers.
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Kağan Sırdar, Timothy Kiessling, Marina Dabic and Nüfer Yasin Ateş
Past research is mixed on family small and medium-sized enterprises’ (SMEs) use of external advisors and the limited empirical evidence is confined to developed markets. Drawing…
Abstract
Purpose
Past research is mixed on family small and medium-sized enterprises’ (SMEs) use of external advisors and the limited empirical evidence is confined to developed markets. Drawing on the knowledge-based view of the firm, this research focuses on the “familiness” characteristic of SMEs and their use of external accountants as advisors in an emerging marketplace. Using internal resources for basic tasks is proposed to strengthen this relationship from a managerial cognition lens. Focusing also on SME internalization, this research probes the performance ramifications of using external accountants as advisors.
Design/methodology/approach
Hierarchical regression is used to test the hypotheses. The mediation hypothesis is tested by bootstrapping the indirect effect. The interaction hypothesis is visualized with simple slope analysis.
Findings
The results indicate that the familiness of SMEs is positively associated with the use of external advisors, and thereby, with high performance. SMEs with higher international exposure also use these external advisors to a greater degree. Family SMEs that have a focused use of internal resources for basic tasks benefit more from the use of external accountants for advising tasks.
Originality/value
This research sheds light on how family involvement in management influences firm performance, showing the moderating role of the use of internal advisors for basic tasks and the mediating role of the use of external accountants for advising. We add to the knowledge-based view by describing how family SMEs can utilize internal and external knowledge resources simultaneously.
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