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This study aims to explore and clarify the mechanism by which cognitive heuristics influence strategic decision-making during the coronavirus disease 2019 (COVID-19) pandemic in an emerging economy.

Data collection was conducted through a survey completed by 213 top-level managers from firms located in the twin cities of Pakistan. A convenient, purposively sampling technique and snowball method were used for data collection. To examine the relationship between cognitive heuristics and strategic decision-making, hypotheses were tested by using correlation and regression analysis.

The article provides further insights into the relationship between cognitive heuristics and strategic decision-making during the COVID-19 pandemic. The results suggest that cognitive heuristics (under-confidence, self-attribution and disposition effect) have a markedly negative influence on the strategic decision-making during the COVID-19 pandemic in an emerging economy.

The article encourages strategic decision-makers to avoid relying on cognitive heuristics or their feelings when making strategic decisions. It provides awareness and understanding of cognitive heuristics in strategic decision-making, which could be very useful for business actors such as managers and entire organizations. The findings of this study will help academicians, researchers and policymakers of emerging countries. Academicians can formulate new behavioural models that can depict the solutions to dealing with an uncertain situation like COVID-19. Policymakers and strategic decision-making teams can develop crisis management strategies based on concepts from behavioral strategy to better deal with similar circumstances in the future, such as COVID-19.

The paper’s novelty is that the authors have explored the mechanism by which cognitive heuristics influence strategic decision-making during the COVID-19 pandemic in an emerging economy. It adds to the literature in strategic management, explicitly probing the impact of cognitive heuristics on strategic decision-making; this field is in its initial stage, even in developed countries, while little work has been done in emerging countries.

The peer review history for this article is available at https://publons.com/publon/10.1108/IJSE-10-2021-0636.

The purpose of this study is to identify the critical components of the reverse logistics (RL) disposition decision‐making process and suggest a decision framework that may guide future investigation and practice.

The authors utilized a problem‐driven content analysis methodology. RL literature from 2000 through 2010 was content analyzed to determine which components may impact a firm's RL disposition decision.

The authors extrapolated seven RL disposition decision components from a compilation of 60 variables identified in the literature. Practical implications and suggestions for future research are offered, and a RL disposition decision‐making framework is presented.

Although methodological techniques were carefully followed, the nature of a content analysis may be subject to author bias. Future investigation and use of the framework presented will verify the findings presented here.

This study identifies seven components that should be considered when deciding which RL disposition alternative should be adopted and integrates these components into a decision‐making framework. Supply chain professionals who refer to this framework during the decision process will benefit from a more comprehensive analysis of potential RL disposition alternatives.

Congruent with recent assertions suggesting that RL research is evolving from an operational‐level focus to a holistic business process approach for maximizing value recovery, this study synthesizes operational‐level research to develop a practical framework for RL disposition decision‐making.

Although management researchers have long recognized that cognitive and behavioral constructs can influence strategic process, there have been surprisingly few empirical studies exploring their actual influence. More specifically, there have been no reported findings examining how an executive's general tendency to expect positive outcomes (i.e. optimism) shapes their strategic process. The purpose of this paper is to examine if optimism serves as a cognitive bias that short‐circuits the strategic process, or more specifically results in a greater use of incrementalism versus a comprehensive rational process.

This is an initial study to explore the relationships between optimism and strategic process. The authors opted for a large cross‐sectional sample of chief executive officers (CEOs) in the for‐profit sector of the US healthcare industry, distributed 810 surveys, and received a 21 percent response rate. The authors' methods incorporated the well‐established Life Orientation Test for optimism, and interaction effect regression models, correlations, and ANOVAs were used to test relationships.

It was found that at the time of the study, executives were more optimistic than average. It was further found that higher optimism is associated with less rational (and more incremental) strategic decision‐making processes. Organizational size also had an interaction effect on the optimism‐strategic process relationship.

The authors operationalized only a few variables in this initial study. A more comprehensive study, utilizing many more variables and exploring optimism for the top management team (beyond just the CEO) is being incorporated into subsequent studies.

If disposition (e.g. optimism) is associated with strategic processes, then a better understanding of executive's dispositions could be used to better align CEOs with organizational types and stage of life cycle.

This is the first study of its kind to begin to explore the association between dispositional optimism and strategic processes.

The purpose of this paper is to investigate the relationship between rational decision-making and behavioural biases among individual investors in India, as well as to examine the influence of demographic variables on rational decision-making process and how those differences manifest themselves in the form of behavioural biases.

Using a structured questionnaire, a total of 386 valid responses have been collected from May to October 2015. Statistical techniques like t-test, analysis of variance (ANOVA) and Fisher’s least significant difference (LSD) test have been used in this study. Structural equation modelling (SEM) has been used to analyse the relationship between rational decision-making and behavioural biases.

The findings show that the structural path model closely fits the sample data, indicating investors follow a rational decision-making process while investing. However, behavioural biases also arise in different stages of the decision-making process. It further explores that gender and income have a significant difference with respect to rational decision-making process. Male investors are more prone to overconfidence and herding bias in India.

The findings of the study have significant implication for the individual investors. It is recommended that if individuals are aware about the biases, they may become alert before taking irrational investment decisions.

To best of the authors’ knowledge, the present study is a first of its kind to investigate the relationship between rational decision-making and behavioural biases among individual investors in India.

Great uncertainty accompanies entrepreneurs’ processes of designing promising business models (BMs). Therefore, stabilising factors act as important means in this process. In this study, we examined the impact of cognitive dispositions and visual BM frameworks on the BM process and outcomes. By using partial-least-square structural equation modelling (PLS-SEM) and an experimental setting, our results show that the stabilising function of BM frameworks depends on entrepreneurs’ cognitive dispositions. This finding contributes to the cognitive BM perspective and explains how cognitive dispositions and visual framing effects act as boundary conditions for the theory of stabilising factors. This also has important implications for applying frameworks in practice.

Entrepreneurial orientation (EO) plays an important role in explaining firm performance. In this study, we investigate the relation between EO and performance at the strategic business unit (SBU) level and examine the influence of decision-making mode and social capital of the focal business unit manager. Adopting the attention-based view (ABV) as our main theoretical perspective, we examine the impact of decision-making mode (i.e., participative vs. autocratic) on the EO–performance relation. In addition, we investigate the extent to which strong network ties with actors at lower, similar, and higher hierarchical positions, respectively, enable SBU managers to effectively engage in participative decision-making processes when leveraging EO. Our findings based on 119 SBUs of one large international company provide nuanced insights into how local conditions interact to shape EO’s influence on performance.

The literature on international entrepreneurship offers two competing views on why new ventures internationalize: (a) the nature of the opportunity pulls them international or (b) the founder pushes the firm international. While these two internationalization drivers are not independent, they do represent unique causal mechanisms. Previously, the tools available to understand the entrepreneur’s disposition toward internationalization were limited. The present study uses the theoretical foundation of the international entrepreneurial orientation construct and from it develops and tests an attitudinally-based individual-level measure of disposition toward internationalization. To ensure the validity and reliability of the new measure, termed International Entrepreneurial Orientation Disposition, studies were conducted to: develop new scale items, examine their psychometric properties and construct validity, and demonstrate criterion validity. A strong measurement model is developed using structural equation modeling (CFI = 0.93, RMSEA = 0.07), and the measure is shown to be useful as a predictor of perceived international venture attractiveness.

This study aims to use a qualitative approach to explore and clarify the mechanism by which heuristic-driven biases influence the decisions and performance of individual investors actively trading on the Pakistan Stock Exchange (PSX). It also aims to identify how to overcome the negative effect of heuristic-driven biases, so that finance practitioners can avoid the expensive errors which they cause.

This study adopts an interpretative approach. Qualitative data was collected in semistructured interviews, in which the target population was asked open-ended questions. The sample consists of five brokers and/or investment strategists/advisors who maintain investors’ accounts or provide investment advice to investors on the PSX, who were selected on a convenient basis. The researchers analyzed the interview data thematically.

The results confirm that investors often use heuristics, causing several heuristic-driven biases when trading on the stock market, specifically, reliance on recognition-based heuristics, namely, alphabetical ordering of firm names, name memorability and name fluency, as well as cognitive heuristics, such as herding behavior, disposition effect, anchoring and adjustment, repetitiveness, overconfidence and availability biases. These lead investors to make suboptimal decisions relating to their investment management activities. Due to these heuristic-driven biases, investors trade excessively in the stock market, and their investment performance is adversely affected.

This study provides a practical framework to explore and clarify the mechanism by which heuristic-driven biases influence investment management activities. To the best of authors’ knowledge, the current study is the first to focus on links between heuristic-driven biases, investment decisions and performance using a qualitative approach. Furthermore, with the help of a qualitative approach, the investigators also highlight some factors causing an increased use of heuristic variables by investors and discuss practical approaches to overcoming the negative effects of heuristics factors, so that finance practitioners can avoid repeating the expensive errors which they cause, which also differentiates this study from others.

The objective of this paper is to empirically examine the impact that different disposition strategies have on strategic performance in the reverse logistics process. This research also includes the role of the returns policy in the customer decision‐making process as a foundation for determining the appropriate disposition strategy.

A general review of the literature and depth interviews with logistics professionals following commonly employed investigative techniques provided the foundation for the study. A survey was developed and mailed to the senior supply chain operations professional at 400 companies in the auto parts industry resulting in 118 usable responses.

The current research shows that under instances of active resource commitment to reverse logistics programs, operations and supply chain managers may expect superior performance by choosing destroying, recycling, refurbishing, and/or remanufacturing of product.

If firms focus on reverse logistics activities as a must do, a strategic approach that examines outcomes rather than day‐to‐day operations is suggested. If managers do not have adequate resource support for reverse logistics, they should destroy the product. The other disposition options all require significant resources in order to reclaim value from returns.

Traditional strategy research has focused on the importance of a strategic fit between a firm's internal strengths and weaknesses and the external environment. In contrast, a resource approach stresses internal aspects of the firm. This study combines the two views along with examining the effects of resource commitment.

Strategic management is traditionally seen as an exclusive managerial task rather than inclusive where accountability is reserved for top managers. However, contemporary strategy management practices increasingly pay attention to equality, diversity, and inclusion (EDI) by engaging with broader internal and external stakeholders via more open business models such as ecosystems. Hence, central to our examination is the concept of openness disposition, which in the context of strategic management refers to the tendency of individuals, collectives, and managers to make strategy transparent, participatory, and/or inclusive, or look for closure. While openness in strategy is regarded as a positive means of contemporary management, fostering diversity, creativity, innovation, and empowerment, there are some researched downsides too. The purpose of this chapter is to address the openness puzzle in strategy and gain a deeper understanding of the dilemmas of bottom-up strategy initiatives, and investigate the associated dilemmas, if any in the context of manufacturing small and medium enterprises (SMEs). We contribute to addressing the performative effects of the dynamic expansion and contraction in openness within the SME strategy process while using the concept of openness dilemmas, tensions, and disposition. Using the Management Control Theory, this chapter will combine theory with SME practitioners’ experiences of bottom-up strategy initiatives to increase EDI in their organisations. Based on findings that emerged from a four-year longitudinal multiple case study research with 10 European SMEs, we found that bottom-up strategy exercises are more interactive. They consider a greater number of views, increase legitimacy, and EDI at the workplace, and yield more process benefits, but are time-consuming and difficult to organise that require special attention to the capability, reciprocity, and credibility dimensions.