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Open Access
Article
Publication date: 9 September 2024

Michael Wayne Davidson, John Parnell and Shaun Wesley Davenport

The purpose of this study is to address a critical gap in enterprise resource planning (ERP) implementation process for small and medium-sized enterprises (SMEs) by acknowledging…

Abstract

Purpose

The purpose of this study is to address a critical gap in enterprise resource planning (ERP) implementation process for small and medium-sized enterprises (SMEs) by acknowledging and countering cognitive biases through a cognitive bias awareness matrix model. Cognitive biases such as temporal discounting and optimism bias often skew decision-making, leading SMEs to prioritize short-term benefits over long-term sustainability or underestimate the challenges involved in ERP implementation. These biases can result in costly missteps, underutilizing ERP systems and project failure. This study enhances decision-making processes in ERP adoption by introducing a matrix that allows SMEs to self-assess their level of awareness and proactivity when addressing cognitive biases in decision-making.

Design/methodology/approach

The design and methodology of this research involves a structured approach using the problem-intervention-comparison-outcome-context (PICOC) framework to systematically explore the influence of cognitive biases on ERP decision-making in SMEs. The study integrates a comprehensive literature review, empirical data analysis and case studies to develop the Cognitive Bias Awareness Matrix. This matrix enables SMEs to self-assess their susceptibility to biases like temporal discounting and optimism bias, promoting proactive strategies for more informed ERP decision-making. The approach is designed to enhance SMEs’ awareness and management of cognitive biases, aiming to improve ERP implementation success rates and operational efficiency.

Findings

The findings underscore the profound impact of cognitive biases and information asymmetry on ERP system selection and implementation in SMEs. Temporal discounting often leads decision-makers to favor immediate cost-saving solutions, potentially resulting in higher long-term expenses due to the lack of scalability. Optimism bias tends to cause underestimating risks and overestimating benefits, leading to insufficient planning and resource allocation. Furthermore, information asymmetry between ERP vendors and SME decision-makers exacerbates these biases, steering choices toward options that may not fully align with the SME’s long-term interests.

Research limitations/implications

The study’s primary limitation is its concentrated focus on temporal discounting and optimism bias, potentially overlooking other cognitive biases that could impact ERP decision-making in SMEs. The PICOC framework, while structuring the research effectively, may restrict the exploration of broader organizational and technological factors influencing ERP success. Future research should expand the range of cognitive biases and explore additional variables within the ERP implementation process. Incorporating a broader array of behavioral economic principles and conducting longitudinal studies could provide a more comprehensive understanding of the challenges and dynamics in ERP adoption and utilization in SMEs.

Practical implications

The practical implications of this study are significant for SMEs implementing ERP systems. By adopting the Cognitive Bias Awareness Matrix, SMEs can identify and mitigate cognitive biases like temporal discounting and optimism bias, leading to more rational and effective decision-making. This tool enables SMEs to shift focus from short-term gains to long-term strategic benefits, improving ERP system selection, implementation and utilization. Regular use of the matrix can help prevent costly implementation errors and enhance operational efficiency. Additionally, training programs designed around the matrix can equip SME personnel with the skills to recognize and address biases, fostering a culture of informed decision-making.

Social implications

The study underscores significant social implications by enhancing decision-making within SMEs through cognitive bias awareness. By mitigating biases like temporal discounting and optimism bias, SMEs can make more socially responsible decisions, aligning their business practices with long-term sustainability and ethical standards. This shift improves operational outcomes and promotes a culture of accountability and transparency. The widespread adoption of the Cognitive Bias Awareness Matrix can lead to a more ethical business environment, where decisions are made with a deeper understanding of their long-term impacts on employees, customers and the broader community, fostering trust and sustainability in the business ecosystem.

Originality/value

This research introduces the original concept of the Cognitive Bias Awareness Matrix, a novel tool designed specifically for SMEs to evaluate and mitigate cognitive biases in ERP decision-making. This matrix fills a critical gap in the existing literature by providing a structured, actionable framework that effectively empowers SMEs to recognize and address biases such as temporal discounting and optimism bias. Its practical application promises to enhance decision-making processes and increase the success rates of ERP implementations. This contribution is valuable to behavioral economics and information systems, offering a unique approach to integrating cognitive insights into business technology strategies.

Details

Journal of Ethics in Entrepreneurship and Technology, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2633-7436

Keywords

Open Access
Article
Publication date: 14 August 2024

Huijun Tu and Shitao Jin

Due to the complexity and diversity of megaprojects, the architectural programming process often involves multiple stakeholders, making decision-making difficult and susceptible…

Abstract

Purpose

Due to the complexity and diversity of megaprojects, the architectural programming process often involves multiple stakeholders, making decision-making difficult and susceptible to subjective factors. This study aims to propose an architectural programming methodology system (APMS) for megaprojects based on group decision-making model to enhance the accuracy and transparency of decision-making, and to facilitate participation and integration among stakeholders. This method allows multiple interest groups to participate in decision-making, gathers various perspectives and opinions, thereby improving the quality and efficiency of architectural programming and promoting the smooth implementation of projects.

Design/methodology/approach

This study first clarifies the decision-making subjects, decision objects, and decision methods of APMS based on group decision-making theory and value-based architectural programming methods. Furthermore, the entropy weight method and fuzzy TOPSIS method are employed as calculation methods to comprehensively evaluate decision alternatives and derive optimal decision conclusions. The workflow of APMS consists of four stages: preparation, information, decision, and evaluation, ensuring the scientific and systematic of the decision-making process.

Findings

This study conducted field research and empirical analysis on a practical megaproject of a comprehensive transport hub to verify the effectiveness of APMS. The results show that, in terms of both short-distance and long-distance transportation modes, the decision-making results of APMS are largely consistent with the preliminary programming outcomes of the project. However, regarding transfer modes, the APMS decision-making results revealed certain discrepancies between the project's current status and the preliminary programming.

Originality/value

APMS addresses the shortcomings in decision accuracy and stakeholder participation and integration in the current field of architectural programming. It not only enhances stakeholder participation and interaction but also considers various opinions and interests comprehensively. Additionally, APMS has significant potential in optimizing project performance, accelerating project processes, and reducing resource waste.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 13
Type: Research Article
ISSN: 0969-9988

Keywords

Open Access
Article
Publication date: 26 August 2024

Vincent Cassar, Katarzyna Tracz-Krupa and Frank Bezzina

In this study, we explored factors driving evidence-based management (EBM) decision-making in Poland which has experienced changes from state-controlled market environments to…

Abstract

Purpose

In this study, we explored factors driving evidence-based management (EBM) decision-making in Poland which has experienced changes from state-controlled market environments to more competitive ones. Evidence-based management requires the critical use and adaptability to information to deal with complex problems.

Design/methodology/approach

In total, 422 Polish managers responded to a telephone survey measuring their perceptions about decision-making culture, styles, competence, and their use of specific sources to derive the evidence to enable them to make evidence-based decisions. Informed by theoretical principles, we used Hayes’ PROCESS macro (Model 4) to examine whether each factor produced direct effects on EBM decision-making and the mediating influence of competence and style in the relationship between culture and perceived evidence-based decision-making.

Findings

All three factors correlated positively with perceived evidence-based decision-making. Moreover, style was not predictive of EBM decision-making compared to competence and culture while culture had an imposing effect on decision-making both as a direct effect and indirectly through competence.

Originality/value

This study provides important insights into the perceptual state of EBM among Polish managers. It emphasizes the importance of embracing diverse cultures and improving critical thinking to help managers make more evidence-based decisions during significant changes in the business world.

Details

Central European Management Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2658-0845

Keywords

Open Access
Article
Publication date: 27 August 2024

Carla Canelas, Felix Meier zu Selhausen and Erik Stam

Female smallholder farmers in low-income countries face barriers to accessing capital and commodity markets. While agricultural cooperatives provide services that contribute to…

Abstract

Purpose

Female smallholder farmers in low-income countries face barriers to accessing capital and commodity markets. While agricultural cooperatives provide services that contribute to the income and productivity of small-scale producers, evidence of cooperatives' social and economic empowerment of female smallholders remains limited. We apply Sen's capability approach to female entrepreneurs' socioeconomic empowerment to examine whether women's participation in a coffee and microfinance cooperative from rural western Uganda benefits their social and economic position within their household. First, we study the relationship between women's cooperative participation and their household coffee sales and savings. Second, we investigate the link between women's cooperative participation and their intra-household decision-making and whether the inclusion of the husband in his wife's cooperative strengthens or lowers women's decision-making power.

Design/methodology/approach

We carry out a case study of a hybrid coffee and microfinance cooperative that promotes social innovation through the integration and empowerment of female smallholders in rural Uganda. Using a cross-sectional survey of 411 married female cooperative members from 26 randomly selected self-help groups of Bukonzo Joint Cooperative and 196 female non-members from the identical area, employing propensity score matching, this paper investigates the benefits of women's participation in a coffee and microfinance cooperative in the Rwenzori Mountains of western Uganda. We present and discuss the results of our case study within an extensive literature on the role of institutions in collective action for women's empowerment.

Findings

Our findings provide new empirical evidence on female smallholders' participation in mixed cooperatives. Our results indicate that women's participation in microfinance-producer cooperatives appears to be a conditional blessing: even though membership is linked to increased women's intra-household decision-making and raised household savings and income from coffee sales, a wife with a husband in the same cooperative self-help group is associated with diminished women's household decision-making power.

Research limitations/implications

The focus of this study is on female coffee smallholders in an agricultural cooperative in rural western Uganda. In particular, we focus on a case study of one major coffee cooperative. Our cross-sectional survey does not allow us to infer causal interpretations. Also, the survey does not include variables that allow us to measure other dimensions of women's empowerment beyond decision-making over household expenditures and women's financial performance related to savings and income from coffee cultivation.

Practical implications

Our empirical results indicate that female smallholders' cooperative membership is associated with higher incomes and coffee sales. However, husband co-participation in their wives' cooperative group diminishes wives' decision-making, which suggests that including husbands and other family members in the same cooperative group may not be perceived as an attractive route to empowerment for female smallholders. For these reasons, an intervention that encourages the cooperation of both spouses and that is sensitive to context-specific gender inequalities, may be more successful at stimulating social change toward household gender equality than interventions that focus on women's autonomous spheres only.

Originality/value

While the literature thus far has focused on microfinance's potential for women's empowerment, evidence on agricultural cooperatives' affecting women's social and economic position is limited. First, our findings provide novel empirical evidence on the empowering effects of women's participation in a self-help group-based coffee cooperative in rural Uganda. Second, our data allows us to explore the role of husbands' participation in their wives' cooperative and SGH. We embed our hypotheses and empirical results in a rich discussion of female entrepreneurship, microfinance and cooperative literature.

Details

Journal of Small Business and Enterprise Development, vol. 31 no. 8
Type: Research Article
ISSN: 1462-6004

Keywords

Open Access
Article
Publication date: 25 July 2024

Luca Carrubbo, Silvia Cosimato and Anna Roberta Gagliardi

Service organizations operate in an increasingly complex and uncertain context that makes decision-making challenging. Despite well-recognized changes in the operational context…

Abstract

Purpose

Service organizations operate in an increasingly complex and uncertain context that makes decision-making challenging. Despite well-recognized changes in the operational context of government as service organization, service literature has given surprisingly limited attention to what these changes imply for organizational decision-making. This study aims to face with the lack of fit of decision-making theorizing with the reality, within which most service practitioners operate, in order to foster the relevance of decision-making in service research and properly approach the false assumptions and misguided instructions for action.

Design/methodology/approach

To rectify the situation, the purpose of this paper is to advance a more holistic understanding of decision-making in government as service organization. The authors do so by reviewing the sparse, though insightful, prior literature on decision-making in service research and identifying four foundational assumptions of decision-making in the service context, that radically differ from the traditional assumptions of decision-making within the wider management literature.

Findings

The authors contribute to service research by further advancing the emerging dynamic understanding of decision-making by developing eight systems thinking-informed research propositions and a connected research agenda. In doing so, the paper offers the essential ground work that can revitalize the field of service management and equip it for facing the challenges that government as service organization is encountering in the 21st century.

Originality/value

The formulated eight research propositions demonstrate that decision-making in a government as service organization occurs within complex adaptive systems composed of multiple subsystems and is characterized by a high degree of unpredictability. It is a process influenced by multiple actors part of the system and subsystems, through multiple feedback loops, where the implications of prior decisions inform the future decisions.

Details

Transforming Government: People, Process and Policy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-6166

Keywords

Open Access
Article
Publication date: 23 February 2024

Sarah Mueller-Saegebrecht

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…

2714

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.

Details

Management Decision, vol. 62 no. 13
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 1 March 2024

Ahsan Siraj, Yongming Zhu, Shilpa Taneja, Ehtisham Ali, Jiaxin Guo and Xihui Chen

With rapidly changing marketing landscape, nowadays, the formulation of various marketing strategies is increasingly focused on how consumers tend to make decisions. To meet the…

2449

Abstract

Purpose

With rapidly changing marketing landscape, nowadays, the formulation of various marketing strategies is increasingly focused on how consumers tend to make decisions. To meet the highly demanding consumer expectations, market segmentation can be used as an important marketing strategy. Due to gender marketing concept familiarity in the contemporary world, gender difference is one of the reference features in the process of market segmentation for marketers. This research is aimed to examine various determining factors that foster consumer purchase decision-making and the differences between consumers of different genders while making shopping and purchase decisions with special reference to an emerging economy, i.e. Pakistan.

Design/methodology/approach

Based on a cross-sectional sample of 367 consumers, the study adapted Sproles and Kendall's (1986) Consumer Style Inventory (CSI) to scrutinize the decision-making of both genders in Pakistan. For data analysis, the exploratory and confirmatory factor analysis in addition to the structural equation modeling has been used.

Findings

The study emphasized that, with the exception of quality awareness, brand consciousness, fashion consciousness, option overload and price consciousness greatly affect buying decisions. In addition, when it comes to consumer purchase decision-making, significant gender variations were discovered for both fashion consciousness and price consciousness.

Originality/value

Drawing upon the distinctive cultural characteristics of Pakistan and its people, in-depth research was conducted on purchasing behaviors of Pakistani consumers and the decision-making characteristics of customers of different genders were summarized. The outcomes are expected to make a significant contribution to the field of gender marketing by organizations.

Details

Arab Gulf Journal of Scientific Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-9899

Keywords

Open Access
Article
Publication date: 26 July 2023

Maria Bendtsen Kronkvist, Patrik Dahlqvist Jönsson, Karl-Anton Forsberg and Mikael Sandlund

The purpose of this study is to describe participation in decision-making among service users with severe mental illness.

Abstract

Purpose

The purpose of this study is to describe participation in decision-making among service users with severe mental illness.

Design/methodology/approach

Service users want to participate in decision-making and in the planning of their care. There are widely known methods, such as shared decision-making, that could be used to facilitate service user participation. Three focus group interviews were conducted with the participation of 14 persons with mental illness and/or substance abuse who were service users at two Swedish Homes for Care and Residence (HVB). Data were analyzed by qualitative content analysis.

Findings

Two themes emerged: service users’ involvement in decisions is hampered by the professionals’ approach and adequate information and experience of participation means greater empowerment.

Research limitations/implications

Although it is known that service users would like to have more influence, and that methods like shared decision-making are recommended to empower service users and improve the decision process, research on these matters is limited.

Practical implications

This study reveals that there is a need of more systematic decisional support, such as shared decision-making, so that service users can be seen as important persons not only in guidelines and policy documents but also in clinical practice.

Social implications

The findings indicate that service users do not participate in decisions systematically, although policies, guidelines and laws providing that service users should be offered an active part in decision-making with regard to their care and treatment.

Originality/value

Although it is known that service users would like to have more influence, and that methods like shared decision-making are recommended to empower service users and improve their decision process, research on these matters is limited. The findings indicate that service users do not participate in decisions systematically, even though policies, guidelines and laws are in place stipulating that service users should be offered an active part in decision-making with regard to their own care and treatment. The results of this project bring improvement opportunities to light.

Details

Journal of Public Mental Health, vol. 22 no. 4
Type: Research Article
ISSN: 1746-5729

Keywords

Open Access
Article
Publication date: 5 September 2023

Simone Guercini

This paper examines the relationship between marketing automation emergence and the marketers' use of heuristics in their decision-making processes. Heuristics play a role for the…

3154

Abstract

Purpose

This paper examines the relationship between marketing automation emergence and the marketers' use of heuristics in their decision-making processes. Heuristics play a role for the integration of human decision-making models and automation in augmentation processes, particularly in marketing where automation is widespread.

Design/methodology/approach

This study analyzes qualitative data about the impact of marketing automation on the scope of heuristics in decision-making models, and it is based on evidence collected from interviews with twenty-two experienced marketers.

Findings

Marketers make extensive use of heuristics to manage their tasks. While the adoption of new automatic marketing tools modify the task environment and field of use of traditional decision-making models, the adoption of heuristics rules with a different scope is essential to defining inputs, interpreting/evaluating outputs and control the marketing automation system.

Originality/value

The paper makes a contribution to research on the relationship between marketing automation and decision-making models. In particular, it proposes the results of in-depth interviews with senior decision makers to assess the impact of marketing automation on the scope of heuristics as decision-making models adopted by marketers.

Details

Management Decision, vol. 61 no. 13
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 16 February 2023

Tamilarasu Sinnaiah, Sabrinah Adam and Batiah Mahadi

The purpose of this paper is to present a conceptual framework for integrating strategic thinking factors, organisational performance and the decision-making process.

33390

Abstract

Purpose

The purpose of this paper is to present a conceptual framework for integrating strategic thinking factors, organisational performance and the decision-making process.

Design/methodology/approach

The methodology involves a synthesis of literature and proposes a framework that explores the relationship between strategic thinking enabling factors, organisational performance and the moderating effect of decision-making styles.

Findings

The framework includes strategic thinking enabling factors (systems perspective, focused intent, intelligent opportunism, thinking in time and hypothesis-driven analysis), organisational performance and the moderating effect of decision-making styles (intuitive and rational).

Research limitations/implications

This research results in a conceptual model only; it remains to be tested in actual practice. The expanded conceptual framework can serve as a basis for future empirical research and provide insights to practitioners into how to strengthen policy development in a strategic planning process.

Originality/value

A paradigm shift in the literature proves that strategic management and decision-making styles are vital in determining organisational performance. This paper highlights the importance of decision-making styles and develops a framework for strategic management by analysing the existing strategic management literature.

Details

Journal of Work-Applied Management, vol. 15 no. 1
Type: Research Article
ISSN: 2205-2062

Keywords

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