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1 – 10 of over 2000Marco Santorsola, Rocco Caferra and Andrea Morone
Expanding on the real-world financial market framework and considering the current market turmoil, with cryptocurrencies (where contracts for difference (CFDs) are extremely…
Abstract
Purpose
Expanding on the real-world financial market framework and considering the current market turmoil, with cryptocurrencies (where contracts for difference (CFDs) are extremely common) (Hasso et al., 2019) displaying unprecedented volatility, the authors aim to test in an online laboratory setting whether displaying a risk warning message is truly effective in reducing the level of risk taken and whether the placement of this method makes a difference.
Design/methodology/approach
To explore the impact of risk disclosure framing on risk-taking behavior, the authors conducted an online pair-wise lottery choice experiment. In addition to manipulating risk awareness through the presence or absence of risk warning messages of varying intensity, the authors also considered dynamic inconsistency, cognitive ability and questionnaire-based financial risk tolerance (FRT) scores. The authors aimed to identify potential relationships between these variables and experimentally elicited risk aversion. The authors' study offers valuable insights into the complex nature of risky decision-making and sheds light on the importance of considering dynamic inconsistency in addition to risk awareness and aversion.
Findings
The authors' results provide statistical evidence for the efficacy of informative and very salient messages in mitigating risky decision, hinting at several policy implications. The authors also provide some statistical evidence in support of the relationship between cognitive abilities and risk preferences. The authors detect that individual with low cognitive abilities scores display great risk aversion.
Originality/value
This study investigates the impact of risk warning messages on investment decisions in an online laboratory setting – a unique approach. However, the authors go beyond this and also examine the potential influence of dynamic inconsistency on decision-making, adding further value to the literature on this topic. To ensure a comprehensive understanding of the participants, the authors collect data on cognitive ability and FRT using questionnaires. This study provides a simple and cost-effective framework that can be easily replicated in future research – a valuable contribution to the field.
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Hilda Du Plooy, Francesco Tommasi, Andrea Furlan, Federica Nenna, Luciano Gamberini, Andrea Ceschi and Riccardo Sartori
Following the imperative for human-centric digital innovation brought by the paradigm of Industry 5.0, the article aims to integrate the dispersed and multi-disciplinary…
Abstract
Purpose
Following the imperative for human-centric digital innovation brought by the paradigm of Industry 5.0, the article aims to integrate the dispersed and multi-disciplinary literature on individual risks for workers to define, explain and predict individual risks related to Industry 4.0 technologies.
Design/methodology/approach
The paper follows the question, “What is the current knowledge and evidence base concerning risks related to Industry 4.0 technologies, and how can this inform digital innovation management in the manufacturing sector through the lens of the Industry 5.0 paradigm?” and uses the method of systematic literature review to identify and discuss potential risks for individuals associated with digital innovation. N = 51 contributions met the inclusion criteria.
Findings
The literature review indicates dominant trends and significant gaps in understanding risks from a human-centric perspective. The paper identifies individual risks, their interplay with different technologies and their antecedents at the social, organizational and individual levels. Despite this, the paper shows how the literature concentrates in studying risks on only a limited number of categories and/or concepts. Moreover, there is a lack of consensus in the theoretical and conceptual frameworks. The paper concludes by illustrating an initial understanding of digital innovation via a human-centered perspective on psychological risks.
Practical implications
Findings yield practical implications. In investing in the adoption, generation or recombination of new digital technologies in organizations, the paper recommends managers ensure to prevent risks at the individual level. Accordingly, the study’s findings can be used as a common starting point for extending the repertoire of managerial practices and interventions and realizing human-centric innovation.
Originality/value
Following the paradigm of Industry 5.0, the paper offers a holistic view of risks that incorporates the central role of the worker as crucial to the success of digital innovation. This human-centric perspective serves to inform the managerial field about important factors in risk management that can result in more effective targeted interventions in risk mitigation approaches. Lastly, it can serve to reinterpret digital innovation management and propose future avenues of research on risk.
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Ramon Palau-Saumell, Jorge Matute, Belén Derqui and Jan-Hinrich Meyer
This study analyzes the impact of the COVID-19 pandemic on the consumption of locally produced food. In particular, it examines an extended model of the theory of planned…
Abstract
Purpose
This study analyzes the impact of the COVID-19 pandemic on the consumption of locally produced food. In particular, it examines an extended model of the theory of planned behavior, with the addition of the perceived risk of becoming infected with the disease, locavorism and internal locus of control.
Design/methodology/approach
The study employs data collected from an online panel of consumers from the five largest cities in Spain (n = 1,000). It uses partial least squares structural equation modeling (PLS-SEM) to test and validate the proposed theoretical model.
Findings
The results indicate that the perceived risk of COVID-19 drives consumers to embrace locavorism more and, although locavorism is a strong predictor of attitude, internal locus of control also has a strong impact on attitude and switching intentions. Subjective norm and attitude are strong predictors of switching intentions and purchase intentions, and switching intentions also have a powerful impact on purchase intentions.
Originality/value
This study extends previous research on locally produced food consumption in that it has proposed and tested a new conceptual model with the inclusion of the perceived risk of COVID-19, locavorism, internal locus of control and switching intentions, which were found to have an influence on purchasing behavior.
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Aisling Jane Davis and Patricia Mc Clure
Discharge planning home visits (DPHVs) are a routine part of occupational therapy clinical practice. However, there is a dearth of evidence to support or refute their efficacy and…
Abstract
Purpose
Discharge planning home visits (DPHVs) are a routine part of occupational therapy clinical practice. However, there is a dearth of evidence to support or refute their efficacy and limited policies or standards to guide clinical practice. This study aims to investigate current clinical practice during home visits and the value that occupational therapists’ attribute to home visits within an Irish context.
Design/methodology/approach
Data collection was carried out by using a survey questionnaire (postal and electronic options). The study population comprised occupational therapists across 52 sites including acute, rehabilitation and convalescence settings within the Republic of Ireland. In total, 122 occupational therapists that completed the survey questionnaire were recruited for the study.
Findings
Quantitative data identified time spent per visit, departmental size, hospital size, number of visits and report writing times. Information was gathered regarding clinical areas assessed during visits in a Likert scale format. Qualitative data identified benefits, risks, recommendations to improve home visit practice and clinical criteria for home visits. Findings conclude that DPHVs are routinely carried out by occupational therapists and that there is consistency in clinical practice within an Irish setting. Occupational therapists value home visits as clinical assessments and have identified risks during practice, benefits of visits and ways to improve practice.
Originality/value
This study has provided a reflection of clinical practice in the Republic of Ireland. It is the only study of its kind in an Irish setting, and it could be used as a knowledge base regarding current practice on DPHV and occupational therapists’ clinical reasoning regarding home visits. The information gathered in this study could influence policies regarding DPHV and could serve as a comparison to standardise practice and justify the need for DPHV.
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Rangapriya Saivasan and Madhavi Lokhande
Investor risk perception is a personalized judgement on the uncertainty of returns pertaining to a financial instrument. This study identifies key psychological and demographic…
Abstract
Purpose
Investor risk perception is a personalized judgement on the uncertainty of returns pertaining to a financial instrument. This study identifies key psychological and demographic factors that influence risk perception. It also unravels the complex relationship between demographic attributes and investor's risk attitude towards equity investment.
Design/methodology/approach
Exploratory factor analysis is used to identify factors that define investor risk perception. Multiple regression is used to assess the relationship between demographic traits and factor groups. Kruskal–Wallis test is used to ascertain whether the factors extracted differ across demographic categories. A risk perception framework based on these findings is developed to provide deeper insight.
Findings
There is evidence of the relationship and influence of demographic factors on risk propensity and behavioural bias. From this study, it is apparent that return expectation, time horizon and loss aversion, which define the risk propensity construct, vary significantly based on demographic traits. Familiarity, overconfidence, anchoring and experiential biases which define the behavioural bias construct differ across demographic categories. These factors influence the risk perception of an individual with respect to equity investments.
Research limitations/implications
The reference for the framework of this study is limited as there has been no precedence of similar work in academia.
Practical implications
This paper establishes that information seekers make rational decisions. The paper iterates the need for portfolio managers to develop and align investment strategies after evaluation of investors' risk by including these behavioural factors, this can particularly be advantageous during extreme volatility in markets that concedes the possibility of irrational decision making.
Social implications
This study highlights that regulators need to acknowledge the investor's affective, cognitive and demographic impact on equity markets and align risk control measures that are conducive to market evolution. It also creates awareness among market participants that psychological factors and behavioural biases can have an impact on investment decisions.
Originality/value
This is the only study that looks at a three-dimensional perspective of the investor risk perception framework. The study presents the relationship between risk propensity, behavioural bias and demographic factors in the backdrop of “information” being the mediating variable. This paper covers five characteristics of risk propensity and eight behavioural biases, such a vast coverage has not been attempted within the academic realm earlier with the aforesaid perspective.
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Clemens Harten, Matthias Meyer and Lucia Bellora-Bienengräber
This paper aims to explore drivers of the effectiveness of risk assessments in risk workshops.
Abstract
Purpose
This paper aims to explore drivers of the effectiveness of risk assessments in risk workshops.
Design/methodology/approach
This study uses an agent-based model to simulate risk assessments in risk workshops. Combining the notions of transactive memory and the ideal speech situation, this study establishes a risk assessment benchmark and then investigates real-world deviations from this benchmark. Specifically, this study models limits to information transfer, incomplete discussions and potentially detrimental group characteristics, as well as interaction patterns.
Findings
First, limits to information transfer among workshop participants can prevent a correct consensus. Second, increasing the required number of stable discussion rounds before an assessment improves the correct assessment of high but not low likelihood risks. Third, while theoretically advantageous group characteristics are associated with the highest assessment correctness for all risks, theoretically detrimental group characteristics are associated with the highest assessment correctness for high likelihood risks. Fourth, prioritizing participants who are particularly concerned about the risk leads to the highest level of correctness.
Originality/value
This study shows that by increasing the duration of simulated risk workshops, the assessments change – as a rule – from underestimating to overestimating risks, unraveling a trade-off for risk workshop facilitators. Methodologically, this approach overcomes limitations of prior research, specifically the lack of an assessment and process benchmark, the inability to disentangle multiple effects and the difficulty of capturing individual cognitive processes.
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Francesco Tommasi, Riccardo Sartori, Sara Bollarino and Andrea Ceschi
Decision-making competence (DMC) of entrepreneurs and managers is a longstanding topic in this increasingly globalized world. These figures operate in conditions not within their…
Abstract
Purpose
Decision-making competence (DMC) of entrepreneurs and managers is a longstanding topic in this increasingly globalized world. These figures operate in conditions not within their own control, and good levels of DMC are often considered to be desirable for the flourishing of business and society. This paper reports an empirical investigation on the DMC of entrepreneurs and managers, in an attempt to inform about their tendencies to incur in risky and costly choices.
Design/methodology/approach
Three cognitive biases associated with operational strategies and individual characteristics of entrepreneurs and managers, namely under/overconfidence (UOC, i.e. self-confidence in taking decisions), resistance to sunk costs (RSC, i.e. propensity to take cost investments) and consistency in risk perception (CRP, i.e. how well individuals understand probability rules) were considered . Cognitive biases measures were used in a cross-sectional study on a sample of n = 639 entrepreneurs and n = 512 managers. Data collected via online survey were analyzed using descriptive statistics and inferential statistics to determine differences among entrepreneurs and managers DMC.
Findings
Analyses reveal that entrepreneurs exhibit higher levels of UOC compared to managers with a marked presence of UOC among entrepreneurs at younger ages. Conversely, performance regarding RSC improves with higher education levels while age and RSC are positively correlated only for managers, regardless of education. Lastly, entrepreneurs and managers resulted as not being affected by CRP. This study discusses these results to provide initial insights for further avenues of research and practice.
Originality/value
The study offers an innovative, evidence-based viewpoint on how entrepreneurs and managers deal with risky and costly decisions. It offers an initial understanding of the role of UOC, RSC and CRP, that is specific cognitive biases associated with operational strategies and individual characteristics, in the DMC of these working figures. The study forwards avenues of scrutiny of quick-witted entrepreneurs and systematic managers.
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Josep Llados-Masllorens and Elisabet Ruiz-Dotras
This study aims to determine the contribution of financial skills to entrepreneurial intentions among women involved in university education.
Abstract
Purpose
This study aims to determine the contribution of financial skills to entrepreneurial intentions among women involved in university education.
Design/methodology/approach
Clustering and logistic regression analyses were used to infer the determinants and motivators of entrepreneurial intention in a sample of women students at a Spanish online university.
Findings
Financial and numerical skills could play a significant role in boosting entrepreneurial culture, overcoming reticence and increasing awareness of business opportunities, particularly when women are motivated to increase their autonomy and income. The study offers meaningful implications for policymakers.
Research limitations/implications
Further research will be needed before these conclusions may be inferred to other settings and circumstances. Comparison with a similar sample of potential male entrepreneurs may also be necessary to deduce the influence of gender.
Practical implications
The introduction of certain financial content into the education system by governments and policymakers would produce remarkable results on entrepreneurship intention among women.
Social implications
Relational capital and positive social influences also contribute to mitigating the effects of risk aversion, one of the main barriers for potential female entrepreneurs.
Originality/value
The role of financial literacy in entrepreneurial intention among women has scarcely been addressed in academic research. The literature also has paid little attention to the analysis of what motivates women into entrepreneurship, and whether women who decide to embark on a business venture show different profiles. The aim of this study is to contribute to closing these gaps, exploring the effect of cognitive skills, personality traits, contextual factors and motivations.
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Chiara Acciarini, Federica Brunetta and Paolo Boccardelli
In a work environment marked by unprecedented complexity, volatility and ambiguity, managers must accomplish their objectives while navigating many challenges. This paper aims to…
Abstract
Purpose
In a work environment marked by unprecedented complexity, volatility and ambiguity, managers must accomplish their objectives while navigating many challenges. This paper aims to investigate potential interrelations among environmental transformations, cognitive biases and strategic decisions. In particular, the purpose of the study is to crystallize the state of art on the impact of cognitive biases on strategic decisions, in the context of environmental transformations.
Design/methodology/approach
The authors have conducted a systematic literature review to identify existing relevant work on this topic and to detect potential avenues for future research.
Findings
The findings highlight how decision-making is influenced and enabled by internal (e.g. perception) and external factors (e.g. digitalization). Specifically, the strategic role of cognitive biases appears to be crucial when investigating the related impact on strategic decisions in times of environmental transformation.
Practical implications
Implications are drawn for scholars and practitioners interested in evaluating the role of specific decision-making determinants for the formation and implementation of strategic decisions. In this sense, we stress that decision-makers need to manage their cognitive biases and select the right information out of a wide data set in order to adapt to environmental transformations.
Originality/value
By systematizing the literature review, potential interrelations among environmental transformations, cognitive biases and strategic decisions are identified. Furthermore, the primary phases that drive the decision-making process are proposed (analysis, decision, onboarding and control).
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Lisete Barlach and Guilherme Ary Plonski
This paper aims to investigate the decision-making on new ventures of eight directors or managers of Brazilian accelerators, aiming to understand if the Einstellung effect …
Abstract
Purpose
This paper aims to investigate the decision-making on new ventures of eight directors or managers of Brazilian accelerators, aiming to understand if the Einstellung effect – mental rigidity – operates during the judgment of new ventures to accelerate.
Design/methodology/approach
Through a quasi-experiment design, the study was conducted with directors or managers of Brazilian accelerators, who were separately interviewed and responded to a psychological test, previously consented, as well as to a simulated decision-making questionnaire.
Findings
The selection process, with the criteria for decision-making, functions as a “template” for the recognition of potentially successful companies and is, indeed, subject to various cognitive biases, among which, the Einstellung effect, characteristic of mental rigidity.
Research limitations/implications
The main contribution of the present study is to identify the cognitive mechanisms, which can negatively affect the evaluation of innovative projects and propose ways that can counteract or mitigate them.
Originality/value
The psychological approach to decision-making, usually studied in chess game context or problem-solving, was applied to a relatively unexplored field that is startups to accelerate. Its originality remains at the interdisciplinary approach, combining knowledge from psychology, decision-making and entrepreneurship.
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