Search results

1 – 10 of over 10000
To view the access options for this content please click here
Article
Publication date: 11 November 2020

Maqsood Ahmad, Syed Zulfiqar Ali Shah and Yasar Abbass

This article aims to clarify the mechanism by which heuristic-driven biases influence the entrepreneurial strategic decision-making in an emerging economy.

Abstract

Purpose

This article aims to clarify the mechanism by which heuristic-driven biases influence the entrepreneurial strategic decision-making in an emerging economy.

Design/methodology/approach

Entrepreneurs' heuristic-driven biases have been measured using a questionnaire, comprising numerous items, including indicators of entrepreneurial strategic decision-making. To examine the relationship between heuristic-driven biases and entrepreneurial strategic decision-making process, a 5-point Likert scale questionnaire has been used to collect data from the sample of 169 entrepreneurs who operate in small- and medium-sized enterprises (SMEs). The collected data were analyzed using SPSS and Amos graphics software. Hypotheses were tested using structural equation modeling (SEM) technique.

Findings

The article provides empirical insights into the relationship between heuristic-driven biases and entrepreneurial strategic decision-making. The results suggest that heuristic-driven biases (anchoring and adjustment, representativeness, availability and overconfidence) have a markedly negative influence on the strategic decisions made by entrepreneurs in emerging markets. It means that heuristic-driven biases can impair the quality of the entrepreneurial strategic decision-making process.

Practical implications

The article encourages entrepreneurs to avoid relying on cognitive heuristics or their feelings when making strategic decisions. It provides awareness and understanding of heuristic-driven biases in entrepreneurial strategic decisions, which could be very useful for business actors such as entrepreneurs, managers and entire organizations. Understanding regarding the role of heuristic-driven biases in entrepreneurial strategic decisions may help entrepreneurs to improve the quality of their decision-making. They can improve the quality of their decision-making by recognizing their behavioral biases and errors of judgment, to which we are all prone, resulting in a more appropriate selection of entrepreneurial opportunities.

Originality/value

The current study is the first to focus on links between heuristic-driven bias and the entrepreneurial strategic decision-making in Pakistan—an emerging economy. This article enhanced the understanding of the role that heuristic-driven bias plays in the entrepreneurial strategic decisions and more importantly, it went some way toward enhancing understanding of behavioral aspects and their influence on entrepreneurial strategic decision-making in an emerging market. It also adds to the literature in the area of entrepreneurial management specifically the role of heuristics in entrepreneurial strategic decision-making; this field is in its initial stage, even in developed countries, while, in developing countries, little work has been done.

Details

Management Decision, vol. 59 no. 3
Type: Research Article
ISSN: 0025-1747

Keywords

To view the access options for this content please click here
Article
Publication date: 15 August 2018

Gia-Shie Liu and Kuo-Ping Lin

The purpose of this paper is to develop a decision support system to consider geographic information, logistics information and greenhouse gas (GHG) emission information…

Abstract

Purpose

The purpose of this paper is to develop a decision support system to consider geographic information, logistics information and greenhouse gas (GHG) emission information to solve the proposed green inventory routing problem (GIRP) for a specific Taiwan publishing logistics firm.

Design/methodology/approach

A GIRP mathematical model is first constructed to help this specific publishing logistics firm to approximate to the optimal distribution system design. Next, two modified Heuristic-Tabu combination methods that combine savings approach, 2-opt and 1-1 λ-interchange heuristic approach with two modified Tabu search methods are developed to determine the optimum solution.

Findings

Several examples are given to illustrate the optimum total inventory routing cost, the optimum delivery routes, the economic order quantities, the optimum service levels, the reorder points, the optimum common review interval and the optimum maximum inventory levels of all convenience stores in these designed routes. Sensitivity analyses are conducted based on the parameters including truck loading capacity, inventory carrying cost percentages, unit shortage costs, unit ordering costs and unit transport costs to support optimal distribution system design regarding the total inventory routing cost and GHG emission level.

Originality/value

The most important finding is that GIRP model with reordering point inventory control policy should be applied for the first replenishment and delivery run and GIRP model with periodic review inventory control policy should be conducted for the remaining replenishment and delivery runs based on overall simulation results. The other very important finding concerning the global warming issue can help decision makers of GIRP distribution system to select the appropriate type of truck to deliver products to all retail stores located in the planned optimal delivery routes depending on GHG emission consumptions.

To view the access options for this content please click here
Article
Publication date: 1 January 2012

Panagiotis Zaharias and Panayiotis Koutsabasis

The purpose of this paper is to discuss heuristic evaluation as a method for evaluating e‐learning courses and applications and more specifically to investigate the…

Abstract

Purpose

The purpose of this paper is to discuss heuristic evaluation as a method for evaluating e‐learning courses and applications and more specifically to investigate the applicability and empirical use of two customized e‐learning heuristic protocols.

Design/methodology/approach

Two representative e‐learning heuristic protocols were chosen for the comparative analysis. These protocols augment the “traditional” heuristic sets so as to cover technology‐enhanced learning properties. Two reviewers that have considerable experience in usability evaluation as well as in e‐learning were involved in this comparative analysis. Coverage, distribution and redundancy were employed as three basic criteria for conducting the evaluation

Findings

The main results of the study indicate that both heuristic protocols exhibit wide coverage of potential usability problems. The distribution of usability problems is uneven to a large number of heuristics for both heuristic sets, which reveals that some heuristics are more general than others.

Originality/value

This study shows the empirical application of two heuristic protocols in a usability evaluation of e‐learning applications. Furthermore, it provides a comparison of the two heuristic sets according to a set of criteria and provides a first set of suggestions regarding further development and validation of these heuristic sets.

To view the access options for this content please click here
Article
Publication date: 1 October 1999

William Hardin

Behavioral research is an accepted research paradigm in business disciplines outside of finance including management, marketing and accounting. This paper looks at these…

Abstract

Behavioral research is an accepted research paradigm in business disciplines outside of finance including management, marketing and accounting. This paper looks at these disciplines and proposes goals for increasing acceptance of this form of research in real estate. Primary goals include investigation of actual heuristic use, concentration on expert decision makers, either as a group or in comparison to novices, incorporation of additional theory advocating functional heuristics, incorporation of real estate specific theory and identifying both theoretically and empirically when, why and how heuristic use may bias the decision process.

Details

Journal of Property Investment & Finance, vol. 17 no. 4
Type: Research Article
ISSN: 1463-578X

Keywords

To view the access options for this content please click here
Article
Publication date: 1 April 2005

Teemu Ylikoski

To describe consumers’ heuristic and analytical searches for a pre‐purchase information acquisition, and to assess the correspondence of flexibility of information task…

Abstract

Purpose

To describe consumers’ heuristic and analytical searches for a pre‐purchase information acquisition, and to assess the correspondence of flexibility of information task and the information found with a search.

Design/methodology/approach

Propositions based on current research in web use and consumer studies. Tracked records of searches are used for descriptive analysis of transitional patterns in the data. Regression is used for statistical verification of the information provided by searches.

Findings

Consumer searches center on chaining events, indicating heavy reliance on hyperlink navigation between web sites. Formal searches are seldom used, although when employed, tend to have a high level of diagnosticity. The emphasis on heuristic behavior is logical, as the way consumer information is currently presented on the internet rewards for this type of behavior. Use of heuristic search increases the likelihood of access to flexibly presented information.

Research limitations/implications

Consumers favor heuristic trial‐and‐error searches even in focused fact‐finding search tasks, which are typically considered the domain of analytical seeking. Consumers seem to benefit most from apparently inefficient, reactive and heuristic searches, because these are more likely to provide information in a format that the consumer can adapt. Convenience sample limits generalizability of findings.

Originality/value

While there is an increasing body of knowledge concerning internet use for finding information, fewer studies have focused on consumer uses of the web in search. This paper provides new information of online consumers, an increasingly important topic.

Details

Internet Research, vol. 15 no. 2
Type: Research Article
ISSN: 1066-2243

Keywords

To view the access options for this content please click here
Article
Publication date: 9 October 2017

Reijo Savolainen

The purpose of this paper is to elaborate the picture of strategies and tactics for information seeking and searching by focusing on the heuristic elements of such…

Abstract

Purpose

The purpose of this paper is to elaborate the picture of strategies and tactics for information seeking and searching by focusing on the heuristic elements of such strategies and tactics.

Design/methodology/approach

A conceptual analysis of a sample of 31 pertinent investigations was conducted to find out how researchers have approached heuristics in the above context since the 1970s. To achieve this, the study draws on the ideas produced within the research programmes on Heuristics and Biases, and Fast and Frugal Heuristics.

Findings

Researchers have approached the heuristic elements in three major ways. First, these elements are defined as general level constituents of browsing strategies in particular. Second, heuristics are approached as search tips. Third, there are examples of conceptualizations of individual heuristics. Familiarity heuristic suggests that people tend to prefer sources that have worked well in similar situations in the past. Recognition heuristic draws on an all-or-none distinction of the information objects, based on cues such as information scent. Finally, representativeness heuristic is based on recalling similar instances of events or objects and judging their typicality in terms of genres, for example.

Research limitations/implications

As the study focuses on three heuristics only, the findings cannot be generalized to describe the use of all heuristic elements of strategies and tactics for information seeking and searching.

Originality/value

The study pioneers by providing an in-depth analysis of the ways in which the heuristic elements are conceptualized in the context of information seeking and searching. The findings contribute to the elaboration of the conceptual issues of information behavior research.

Details

Journal of Documentation, vol. 73 no. 6
Type: Research Article
ISSN: 0022-0418

Keywords

Content available
Article
Publication date: 6 November 2017

Júlio Lobão, Luís Pacheco and Carlos Pereira

People often face constraints such as a lack of time or information in taking decisions, which leads them to use heuristics. In these situations, fast and frugal rules may…

Abstract

Purpose

People often face constraints such as a lack of time or information in taking decisions, which leads them to use heuristics. In these situations, fast and frugal rules may be useful for making adaptive decisions with fewer resources, even if it leads to suboptimal choices. When applied to financial markets, the recognition heuristic predicts that investors acquire the stocks that they are aware of, thereby inflating the price of the most recognized stocks. This paper aims to study the profitability against the market of the most recognized stocks in Europe.

Design/methodology/approach

In this paper, the authors perform a survey and use Google Trends to study the profitability against the market of the most recognized stocks in Europe.

Findings

The authors conclude that a recognition heuristic portfolio yields poorer returns than a market portfolio. In contrast, from the data collected on Google Trends, weak evidence was found that strong increases in companies monthly search volumes may lead to abnormal returns in the following month.

Research limitations/implications

The applied investment strategy does not account for transaction costs, which may jeopardize its profitability given the fact that it is necessary to revise the portfolio on a monthly basis. Despite the results obtained, they are useful to understanding the performance of recognition heuristic strategies over a comprehensive time horizon, and it would be interesting to depict its viability during different market conditions. This analysis could provide additional information about a preferable scenario for employing our strategies and, ultimately, enhance the profitability of recognition heuristic strategies.

Practical implications

Through the exhaustive analysis performed here on the recognition heuristic in the European stock market, it is possible to conclude that no evidence was found for the viability of exploring this type of strategy. In fact, the investors would always gain better returns when adopting a passive investment strategy. Therefore, it would be wise to assume that the European market presents at least a degree of efficiency where no investment would yield abnormal returns following the recognition heuristic.

Originality/value

The main objective of this paper is to study the performance of the recognition heuristic in the financial markets and to contribute to the knowledge in this field. Although many authors have already studied this heuristic when applied to financial markets, there is a lack of consensus in the literature.

Details

Journal of Economics, Finance and Administrative Science, vol. 22 no. 43
Type: Research Article
ISSN: 2077-1886

Keywords

To view the access options for this content please click here
Article
Publication date: 5 February 2018

Syed Zulfiqar Ali Shah, Maqsood Ahmad and Faisal Mahmood

This paper aims to clarify the mechanism by which heuristics influences the investment decisions of individual investors, actively trading on the Pakistan Stock Exchange…

Abstract

Purpose

This paper aims to clarify the mechanism by which heuristics influences the investment decisions of individual investors, actively trading on the Pakistan Stock Exchange (PSX), and the perceived efficiency of the market. Most studies focus on well-developed financial markets and very little is known about investors’ behaviour in less developed financial markets or emerging markets. The present study contributes to filling this gap in the literature.

Design/methodology/approach

Investors’ heuristic biases have been measured using a questionnaire, containing numerous items, including indicators of speculators, investment decisions and perceived market efficiency variables. The sample consists of 143 investors trading on the PSX. A convenient, purposively sampling technique was used for data collection. To examine the relationship between heuristic biases, investment decisions and perceived market efficiency, hypotheses were tested by using correlation and regression analysis.

Findings

The paper provides empirical insights into the relationship of heuristic biases, investment decisions and perceived market efficiency. The results suggest that heuristic biases (overconfidence, representativeness, availability and anchoring) have a markedly negative impact on investment decisions made by individual investors actively trading on the PSX and on perceived market efficiency.

Research limitations/implications

The primary limitation of the empirical review is the tiny size of the sample. A larger sample would have given more trustworthy results and could have empowered a more extensive scope of investigation.

Practical implications

The paper encourages investors to avoid relying on heuristics or their feelings when making investments. It provides awareness and understanding of heuristic biases in investment management, which could be very useful for decision makers and professionals in financial institutions, such as portfolio managers and traders in commercial banks, investment banks and mutual funds. This paper helps investors to select better investment tools and avoid repeating expensive errors, which occur due to heuristic biases. They can improve their performance by recognizing their biases and errors of judgment, to which we are all prone, resulting in a more efficient market. So, it is necessary to focus on a specific investment strategy to control “mental mistakes” by investors, due to heuristic biases.

Originality/value

The current study is the first of its kind, focusing on the link between heuristics, individual investment decisions and perceived market efficiency within the specific context of Pakistan.

Details

Qualitative Research in Financial Markets, vol. 10 no. 1
Type: Research Article
ISSN: 1755-4179

Keywords

To view the access options for this content please click here
Article
Publication date: 3 November 2014

John H Drake, Matthew Hyde, Khaled Ibrahim and Ender Ozcan

Hyper-heuristics are a class of high-level search techniques which operate on a search space of heuristics rather than directly on a search space of solutions. The purpose…

Abstract

Purpose

Hyper-heuristics are a class of high-level search techniques which operate on a search space of heuristics rather than directly on a search space of solutions. The purpose of this paper is to investigate the suitability of using genetic programming as a hyper-heuristic methodology to generate constructive heuristics to solve the multidimensional 0-1 knapsack problem

Design/methodology/approach

Early hyper-heuristics focused on selecting and applying a low-level heuristic at each stage of a search. Recent trends in hyper-heuristic research have led to a number of approaches being developed to automatically generate new heuristics from a set of heuristic components. A population of heuristics to rank knapsack items are trained on a subset of test problems and then applied to unseen instances.

Findings

The results over a set of standard benchmarks show that genetic programming can be used to generate constructive heuristics which yield human-competitive results.

Originality/value

In this work the authors show that genetic programming is suitable as a method to generate reusable constructive heuristics for the multidimensional 0-1 knapsack problem. This is classified as a hyper-heuristic approach as it operates on a search space of heuristics rather than a search space of solutions. To our knowledge, this is the first time in the literature a GP hyper-heuristic has been used to solve the multidimensional 0-1 knapsack problem. The results suggest that using GP to evolve ranking mechanisms merits further future research effort.

To view the access options for this content please click here
Article
Publication date: 1 January 1995

Michael J. Brusco and T. Reid Johns

Labour scheduling heuristic methods have been applied in serviceoperating environments using both actual and synthetic demand patterns.Two important characteristics of…

Abstract

Labour scheduling heuristic methods have been applied in service operating environments using both actual and synthetic demand patterns. Two important characteristics of these demand patterns are (1) demand smoothness and (2) mean demand. Investigates the effects of demand smoothness and mean demand on the solution quality associated with four prominent heuristic methods. Indicates that both characteristics can affect the performance of the heuristic methods. An especially important finding is that the two methods which use information from linear programming solutions are far more robust to changes in the degree of demand smoothness. Concludes that managers should consider linear programming methods as an alternative or supplement for making their scheduling decisions. Also recommends that labour scheduling researchers use multiple levels of mean demand and demand smoothness when evaluating new heuristic methods.

Details

International Journal of Operations & Production Management, vol. 15 no. 1
Type: Research Article
ISSN: 0144-3577

Keywords

1 – 10 of over 10000