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In this chapter, we present a theory on how organizational performance feedback influences individual decision-maker cognitions and thereby changes a team’s attention focus in terms of strategy. We argue that when performance compares unfavorably to aspiration levels, decision-makers reconsider current strategies in favor of unfamiliar, uncertain ones and become more risk tolerant. Furthermore, as decision-makers devote additional cognitive resources to do so, changes in attention focus in a decision-making team will be observed. Using data from a business simulation and repeated questionnaires, we capture the teams’ attention focus and the organizational performance feedback evaluation process of the individuals and teams.

The paper aims to explore the internationalisation decision-making of small- and medium-sized enterprise (SME) owner/managers. Specifically, structural alignment theory (SAT) and regulatory focus theory (RFT) are utilised to examine the concept of opportunity recognition in the context of internationalisation choices.

This paper is conceptual in nature, and an integrative cognitive model of internationalisation choice decisions is developed based on SAT and RFT, underpinned by a critical review of the international entrepreneurship (IE) literature.

Scenarios are identified in which the structure of available information may affect the decision-evaluation process in terms of cognitive resource requirements. Further, the SME owner/manager’s motivational goal orientation is suggested to moderate the role of the information structure in line with IE literature. A conceptual model and propositions are presented.

The conceptual model and the propositions arising from the discussion in this paper offer new directions of research to explore SME internationalisation.

This paper offers a cognitive perspective of SME internationalisation. This paper offers insights for policymakers, SME owner/managers, practitioners and researchers alike. For internationalisation decisions, this paper highlights the potential impact of the structure of information that is made available to SME owner/managers by industry or policy bodies; further, the moderating influence of motivational goal orientation may inform policy on how information should be presented to SME owner/managers to aid their decision-making.

Although being fired up about changes such as firm expansion, chief executive officers (CEOs) have a hard time with changes that involve divesting businesses or downsizing operations. This study aims to examine how a particular psychological process – regulatory focus – serves as a managerial exit barrier in the context of store closings in the US retail industry. This study also examines how a particular corporate governance mechanism, the board of directors, moderates the relationship between CEO regulatory focus and divestment activity.

This study content-analyzed letters to shareholders to measure the regulatory focus of retail CEOs and used negative binomial regression to test the effect of the CEO’s regulatory focus and board independence on store closure activity.

The two motivation orientations – promotion and prevention – focuses have distinct effects on store closure decisions. As predicted, promotion-focused CEOs, who value attainment and growth, resist “pulling the plug.” Conversely, prevention-focused CEOs, who are more sensitive to losses, are more inclined to close stores. Independent boards decrease the CEOs’ resistance to “pull the plug” only when necessary, which is the case when CEOs have less vigilant tendencies.

This study contributes to the strategy and marketing literature. It examines an individual-level antecedent of store closure decisions and responds to the call for research on the effect of regulatory focus on divestment decisions.

Leaders themselves can be a source of resistance to change. The findings suggest the importance of boards hiring CEOs psychologically aligned with the firms’ strategic priorities. Promotion-focused CEOs may be a better fit for companies engaged in growth and acquisition. By contrast, prevention-focused CEOs may be a better fit for firms involved in retrenchment and restructuring. Independent boards still have the power to influence CEO decisions in the case of a misfit, as the findings suggest.

This study examines divestment decisions during the “retail apocalypse” and provides empirical evidence for the existence of managerial exit barriers, first introduced by Michael Porter.

Literature on choice has predominantly focused on selection decisions rather than rejection decisions. Research on rejection decisions has also only studied rejecting one option from two alternatives. This research aims to study the differences in decision confidence and satisfaction in rejection decisions between choice sets of small and large sizes.

The authors conducted three behavioral experiments in which they first tested the overall effect (Experiment 1) and then found out whether regulatory focus (Experiment 2) and the attractiveness of options (Experiment 3) moderated it.

The authors observed that decision satisfaction increased when rejecting larger (vs smaller) choice sets. Decision confidence mediated it (Experiment 1). The effect was strongest when participants had a prevention focus (Experiment 2) and when they were rejecting relatively unattractive options (Experiment 3).

This research expands the understanding of how individuals make rejection-based decisions and in particular how individuals make choices for one option out of many as in the selection-based choice overload literature.

The authors show how choice sets of varying sizes affect rejection decisions commonly faced by managers and consumers. This research provides implications for improving confidence and satisfaction, both of which are important elements of everyday decision-making, by suggesting that choice outcomes may differ depending on whether one is making a selection or a rejection decision and whether the choice set size is small or large.

This is the first study to examine rejection decisions with more than two alternatives. The findings complement the large body of work on the choice overload effect that focuses on selection decisions.

Despite skepticism, consumers rely on online reviews for their purchase decisions. However, academics mostly argue that skepticism has an inverse relationship with consumer decision-making. This study aims to investigate the relationship among skepticism, reliance and consumer purchase decisions in an online review context. It also investigates the moderating role of review self-efficacy and regulatory focus in the relationship between skepticism and reliance on online reviews.

A survey with a nationally representative sample and two experimental studies are conducted.

Skepticism negatively affects consumers’ reliance on online reviews and reliance on online reviews mediates the relationship between skepticism and review-based purchase decisions. High review self-efficacy participants tend to rely more on online reviews than low review self-efficacy participants. Promotion-focused people rely more on online reviews than prevention-focused people, despite similar levels of skepticism.

The findings contribute to the skepticism, self-efficacy and regulatory focus literature. The general framework of the relationship among skepticism, reliance and purchase decision is also applicable in an online review context.

The results provide evidence of a stronger reliance on online reviews of high review self-efficacy and promotion-oriented consumers compared to low review self-efficacy and prevention-oriented consumers.

Previous studies point to a range of factors as influencing managerial decision‐making processes. There are four major trends with regard to the studies. They are environmental antecedents, organisational antecedents, decision‐specific antecedents and individual managerial characteristics. While the majority of literature has chosen to focus in a specialised way on the influence of unidimensional variables there are a number of studies advocating the study of multiple dimensions simultaneously. This paper examines the findings from a qualitative research methodology, convergent interviewing, focussing on the impact of environmental, organisational, decision‐specific and individual characteristics, in combination with environmental and organisational characteristics on managerial decisions. Information from managers suggested decision‐specific and individual characteristics in combination with environmental and organisational characteristics, were highly relevant to the process of decision making. For all managers, managerial years of experience and the complexity and politicality of decision content were indicated as an important preconditions for determining the nature of managerial decision making. Furthermore, environmental and organisational factors such as environmentally determined time constraints (e.g. government policy) and staff conflict were important issues influencing managers’ decisions. A number of multidimensional interactions were posited from the findings. Implications for future research are discussed.

This study aims to aid theory building, the use of decision theory (DT) concepts in sustainable supply chain management (SSCM) research is examined.

An abductive approach considers two DT concepts, Snowden’s Cynefin framework for sense-making and Keeney’s value-focussed decision analysis, in a systematic literature review of 160 peer-reviewed papers in English.

Around 60 per cent of the papers on decision-making in SSCM come from operational research (OR), which makes explicit use of DT. These are almost all normative and rationalist and focussed on structured decision contexts. Some exceptions seek to address unstructured decision contexts via Complex Adaptive Systems or Soft Systems Methodology. Meanwhile, a second set, around 16 per cent, comes from business ethics and are empirical, behavioural decision research. Although this set does not explicitly refer to DT, the empirical evidence here supports Keeney’s value-focussed analysis.

There is potential for theory building in SSCM using DT, but the research only addresses SSCM research (including corporate responsibility and ethics) and not DT in SCM or wider sustainable development research.

Use of particular decision analysis methods for SSCM may be improved by better understanding different decision contexts.

The research shows potential synthesis with ethical DT absent from DT and SCM research.

Empirical behavioural decision analysis for SSCM is considered alongside normative, rational analysis for the first time. Value-focussed DT appears useful for unstructured decision contexts found in SSCM.

Empirical, behavioural decision analysis for SSCM is considered alongside normative rational analysis for the first time. Value-focussed DT appears useful for unstructured decision contexts found in SSCM.

The purpose of this paper is to explore the decision‐making implications of “regrets of the heart” versus “regrets of the head” in economic decision making.

The phenomenon in three empirical studies is examined. Study 1 is a protocol analysis of people's “regrets of the heart” and “regrets of the head”. Study 2 uses the same recall prompt and examined decision makers' choices in an ultimatum bargaining game. Study 3 tests regrets of heart versus the head in an interactive face to face negotiation setting.

Overall, it is found that people who were prompted to recall a time in which they regretted “not following their heart” were more likely to recall situations in which they experienced a loss or lost opportunity compared to people who recalled a time when they regretted “not following their head”. Recalling a regret of the heart prompts decision makers and negotiators to put a greater value on maintaining relationships and avoid loss in an interpersonal exchange situation.

These findings contribute to the literature on how emotions affect economic decision making and provide a more nuanced examination of regret.

Focusing on “regrets of the head” may lead to greater economic gains in economic decisions.

This article examines a different type of regret and demonstrates how this type of regret impacts economic decision‐making behavior.

The employee selection process has generally focused on the near‐term performance potential of internal candidates in filling vacant positions. This research addresses the potential influence of adding a career development emphasis to the employee transfer decision process. In a career‐focused transfer process the applicants' individual career development needs and growth opportunities are a key basis for internal selection decisions.

Using web‐based survey methodology, a US financial services firm is used to evaluate the relationship between the use of career‐focused employee transfer criteria and key employee attitudes.

The study finds that the use of career‐focused processes are positively related to employees' developmental opportunity satisfaction and perceived support for career development. Regression analyses finds that these two attitudes mediate the positive relationship between the use of career‐focused transfer criteria and perceived organization support (POS). Other research efforts (e.g. Allen and Shore) have linked POS to a variety of positive outcomes, including lower employee turnover. Past research, however, has not considered how specific human resource practices can be the basis for the development of key attitudes.

This research – while limited due to it cross‐sectional methodology – builds on that stream of research by focuses on the design of the employee transfer process and how it can be a key practice for achieving a developmental focus and associated benefits.

The results suggest that focusing on performance potential of applicants and career‐focused criteria are not necessarily antagonistic but can be used jointly to make internal selection decisions.

The garbage can model showed that what appears to be irrational and unpredictable choices can be explained by processes that regulate attention allocation and the availability of choice alternatives. Because attention to alternatives fluctuates, the model generates context-dependent choices: evaluations of alternatives depend on the mix of other alternatives considered. I re-examine the mechanisms by which fluctuating attention can cause context-dependent choices. Using insights from behavioral decision theory I demonstrate how adding fluctuating attention to a well-known model of organizational decision making generates context-dependent choices of a kind that could not be explained by a maximizing process.