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Article
Publication date: 9 August 2023

Sanmugam Annamalah, Pradeep Paraman, Selim Ahmed, Thillai Raja Pertheban, Anbalagan Marimuthu, Kumara Rajah Venkatachalam and Ramayah T.

This study aims to analyse the resilience strategy utilized by small and medium-sized enterprises (SMEs), enabling these businesses to effectively adapt their operations in…

Abstract

Purpose

This study aims to analyse the resilience strategy utilized by small and medium-sized enterprises (SMEs), enabling these businesses to effectively adapt their operations in response to varying conditions by providing them with essential resources. SMEs operate in marketplaces that are both dynamic and frequently tumultuous. These markets provide SMEs with a variety of obstacles, including economic ups and downs, advances in technology, evolving customer tastes and new regulatory requirements. SMEs need to create a strategic strategy to survive and grow in such situations. This strategy ought to help strengthen their resiliency and make it possible for them to make the most of emerging opportunities while simultaneously lowering the dangers.

Design/methodology/approach

The questionnaires adopted and adapted from previous research served as the basis for gathering the data. The manufacturing industry was polled through the use of questionnaires. To test the hypothesis, the data were analysed using Smart PLS. Through the use of closed-ended questions directed to the proprietors, managers or senior executives of SMEs, data were collected from each and every institution in the sample. Following the examination of the data by means of descriptive analysis and the presentation of several scenarios using information relating to SMEs, the findings were presented.

Findings

The ambidextrous strategies that are used by SMEs have a propensity to offer a constructive contribution to SMEs. In this study, it was discovered that ambidexterity, which is defined as the capacity to both seek and capitalise on possibilities, has a significant bearing on the organisational effectiveness of SMEs. The results showed that ambidextrous strategies have a propensity to work as mediators in interactions involving proactive resilience tactics and performance.

Research limitations/implications

The research expands our understanding of how SMEs in the manufacturing sector may improve their performance by concentrating on growing their ambidextrous strategies.

Practical implications

This study provides a plausible explanation of two crucial management mechanisms for enhancing the sustainability of organisational effectiveness. The relationships between ambidextrous capabilities and firm effectiveness are malleable, and this study suggests that nurturing formal and informal relationships may be the key to SMEs' long-term sustainable performance. Improving the knowledge and performance of supply chain systems for SMEs in the manufacturing sector and boosting their competitiveness in domestic and international markets are the practical contributions of this study.

Social implications

Our comprehension of monitoring, cooperation and innovation within social management was deepened as a result of these facts. In addition, the study conducted in the sector uncovered four essential connections that outline how managers should actively work towards lowering social risks, developing new possibilities and increasing business performance. These capacities and links, when taken as a whole, provide the foundation upon which an integrated framework and five research propositions are built.

Originality/value

This research offers a convincing explanation of fundamental management processes for enhancing the sustainability of organisational effectiveness. This research implies that developing formal and informal interactions may be the key to the sustainable performance of SMEs over the long run. The relationships between ambidextrous capabilities, methods and organisational effectiveness are flexible, and this study also suggests that these relationships may be shaped. The practical contributions made by this research include boosting the understanding and performance of supply chain systems for SMEs as well as the competitive power of these businesses in both local and international markets.

Details

Journal of Global Operations and Strategic Sourcing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 21 July 2023

Michael Shick, Nathan Johnson and Yang Fan

The purpose of this viewpoint article is to serve as a discussion starting point regarding organizational leadership’s increasing reliance on AI – in particular, how the…

267

Abstract

Purpose

The purpose of this viewpoint article is to serve as a discussion starting point regarding organizational leadership’s increasing reliance on AI – in particular, how the technology is used as a supplemental tool for supporting rational decision-making. Practical implications and directions for further research are presented.

Design/methodology/approach

With its inception in economics, the concept of rationality has a rich history across multiple research domains. Based on that literature, coupled with the recent advancements in AI, the paper asks: will AI afford organizational leadership the ability to move from making bounded rational decisions to making fully rational decisions? The paper only scratches the surface of such a large question; however, the goal is to start the discussion around the topic.

Findings

While bounded rationality supports efficient decision-making, a complete understanding of any given decision is typically limited, and as a result, neither accuracy nor effectiveness is guaranteed. As AI systems grow in speed and accuracy, they should provide positive support for organizational leaders to make fully rational decisions. AI’s ability to collect and organize data, analyze it, and offer decision alternatives may help close the gap between bounded and rational decision-making.

Originality/value

Although AI research is not new, the recent developments in natural language processing engines has rapidly brought about new possibilities for their use in rational decision-making in the business and organizational context. This is fertile ground for future research, particularly in the area of organizational decision-making.

Details

Development and Learning in Organizations: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1477-7282

Keywords

Article
Publication date: 22 March 2023

Hamzah Elrehail, Raed Aljahmani, Abdallah Mohammad Taamneh, Abdallah Khalaf Alsaad, Manaf Al-Okaily and Okechukwu Lawrence Emeagwali

This study explored the relationship between employees' cognitive capabilities and firm performance by exploring the moderating role of decision-making style and the mediating…

Abstract

Purpose

This study explored the relationship between employees' cognitive capabilities and firm performance by exploring the moderating role of decision-making style and the mediating effect of knowledge creation. Understanding the role of cognitive capabilities in value creation is crucial for human resource management to achieve the anticipated organizational performance.

Design/methodology/approach

Structural equation modeling, cognitive skills theory, cognitive skills acquisition theory and a knowledge creation framework were applied.

Findings

The first finding suggests that only A-shaped skills predict higher knowledge creation, while T-shaped skills do not. Second, knowledge creation predicts higher financial performance and a lower level of financial uncertainty. Third, T-shaped skills have no indirect effect on financial performance or financial uncertainty. Fourth, A-shaped skills exerted significant indirect effects on financial performance and uncertainty. Fifth, the rational decision-making style did not moderate the link between knowledge creation and financial performance, as opposed to the intuitive decision-making style.

Originality/value

A review of existing research indicates a lack of studies examining the effect of cognitive skills on organizational outcomes and contingencies under which cognitive skills lead to superior outcomes. This study advances research on T-shaped and A-shaped skills and knowledge creation by empirically exploring their interrelationships with financial performance. Managerial implications and suggestions for future research are also highlighted.

Details

EuroMed Journal of Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1450-2194

Keywords

Article
Publication date: 18 August 2023

Anniek Brink, Louis-David Benyayer and Martin Kupp

Prior research has revealed that a large share of managers is reluctant towards the use of artificial intelligence (AI) in decision-making. This aversion can be caused by several…

632

Abstract

Purpose

Prior research has revealed that a large share of managers is reluctant towards the use of artificial intelligence (AI) in decision-making. This aversion can be caused by several factors, including individual drivers. The purpose of this paper is to better understand the extent to which individual factors influence managers’ attitudes towards the use of AI and, based on these findings, to propose solutions for increasing AI adoption.

Design/methodology/approach

The paper builds on prior research, especially on the factors driving the adoption of AI in companies. In addition, data was collected by means of 16 expert interviews using a semi-structured interview guideline.

Findings

The study concludes on four groups of individual factors ranked according to their importance: demographics, familiarity, psychology and personality. Moreover, the findings emphasized the importance of communication and training, explainability and transparency and participation in the process to foster the adoption of AI in decision-making.

Research limitations/implications

The paper identifies four ways to foster AI integration for organizational decision-making as areas for further empirical analysis by business researchers.

Practical implications

This paper offers four ways to foster AI adoption for organizational decision-making: explaining the benefits and training the more adverse categories, explaining how the algorithms work and being transparent about the shortcomings, striking a good balance between automated and human-made decisions, and involving users in the design process.

Social implications

The study concludes on four groups of individual factors ranked according to their importance: demographics, familiarity, psychology and personality. Moreover, the findings emphasized the importance of communication and training, explainability and transparency and participation in the process to foster the adoption of AI in decision-making.

Originality/value

This study is one of few to conduct qualitative research into the individual factors driving usage intention among managers; hence, providing more in-depth insights about managers’ attitudes towards algorithmic decision-making. This research could serve as guidance for developers developing algorithms and for managers implementing and using algorithms in organizational decision-making.

Details

Journal of Business Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 19 April 2024

Anthony K. Hunt, Jia Wang, Amin Alizadeh and Maja Pucelj

This paper aims to provide an elucidative and explanatory overview of decision-making theory that human resource management and development (HR) researchers and practitioners can…

Abstract

Purpose

This paper aims to provide an elucidative and explanatory overview of decision-making theory that human resource management and development (HR) researchers and practitioners can use to explore the impact of heuristics and biases on organizational decisions, particularly within HR contexts.

Design/methodology/approach

This paper draws upon three theoretical resources anchored in decision-making research: the theory of bounded rationality, the heuristics and biases program, and cognitive-experiential self-theory (CEST). A selective narrative review approach was adopted to identify, translate, and contextualize research findings that provide immense applicability, connection, and significance to the field and study of HR.

Findings

The authors extract key insights from the theoretical resources surveyed and illustrate the linkages between HR and decision-making research, presenting a theoretical framework to guide future research endeavors.

Practical implications

Decades of decision-making research have been distilled into a digestible and accessible framework that offers both theoretical and practical implications.

Originality/value

Heuristics are mental shortcuts that facilitate quick decisions by simplifying complexity and reducing effort needed to solve problems. Heuristic strategies can yield favorable outcomes, especially amid time and information constraints. However, heuristics can also introduce systematic judgment errors known as biases. Biases are pervasive within organizational settings and can lead to disastrous decisions. This paper provides HR scholars and professionals with a balanced, nuanced, and integrative framework to better understand heuristics and biases and explore their organizational impact. To that end, a forward-looking and direction-setting research agenda is presented.

Details

Personnel Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 2 August 2023

Rukma Ramachandran, Vimal Babu and Vijaya Prabhagar Murugesan

This systematic literature review aims to explore the adoption, global acceptance and implementation of human resources (HR) analytics (HRA) by reviewing literature on the…

Abstract

Purpose

This systematic literature review aims to explore the adoption, global acceptance and implementation of human resources (HR) analytics (HRA) by reviewing literature on the subject. HRA adoption can assist HR professionals in managing complex procedures and making strategic human resource management (SHRM) decisions more effectively. The study also aims to identify the applications of analytics in various disciplines of management.

Design/methodology/approach

The review is conducted using a domain-based structured literature review (SLR), emphasizing the diffusion of innovative thinking and the adoption process of HRA among early adopters. The philosophical stances are analyzed with the combination of research onion model and PRISMA protocol. Secondary data are gathered from published journals, books, case studies, conference proceedings, web pages and media stories as the primary source of information.

Findings

The study finds that skilled professionals and management assistance can significantly impact adoption intentions, enabling professionals to deal with analytics. The examples and analytical models provided by early adopters allow managers to manage complex processes and make SHRM decisions.

Research limitations/implications

The study suggests that the lack of use of quantitative techniques is a key limitation and should be considered in future studies. Despite the rise in the number of research papers on HRA, its application in the workplace remains limited.

Practical implications

This research can assist managers in implementing HRA and help resolve complex and inefficient processes, making SHRM decisions.

Originality/value

This study adds to the existing body of knowledge on how HRA can aid a company's efficacy and performance and can be considered one of the first to link adoption and HRA.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 17 April 2024

Niluh Putu Dian Rosalina Handayani Narsa, Lintang Lintang Merdeka and Kadek Trisna Dwiyanti

The primary aim of this research was to investigate the mediating effect of the decision-making structure on the relationship between perceived environmental uncertainty and…

Abstract

Purpose

The primary aim of this research was to investigate the mediating effect of the decision-making structure on the relationship between perceived environmental uncertainty and hospital performance.

Design/methodology/approach

Online and manual survey questionnaires were used to collect data in this study. The target population of this study consists of all middle managers within 11 COVID-19 referral hospitals in Surabaya. A total of 189 responses were collected, however, 27 incomplete responses were excluded from the final dataset. Data was analyzed using SEM-PLS.

Findings

The study's findings indicate that decision-making structure plays a role in mediating the link between perceived environmental uncertainty and hospital performance assessed via the Balanced Scorecard, highlighting the significance of flexible decision-making processes during uncertain periods. Moreover, based on our supplementary test, respondents' demographic characteristics influence their perceptions of hospital performance.

Practical implications

Hospital administrators can consider the significance of decision-making structures in responding to environmental uncertainties like the COVID-19 pandemic. By fostering adaptable decision-making processes and empowering middle managers, hospitals may enhance their performance and resilience in challenging situations. Additionally, based on supplementary tests, it is found that differences in the perception of the three Balanced Scorecard perspectives imply that hospitals categorized as types A, B, C, and D should prioritize specific areas to improve their overall performance.

Originality/value

This research adds substantial originality and value to the existing body of knowledge by exploring the interplay between decision-making structures, environmental uncertainty, and hospital performance. It contributes to the literature by specifically focusing on the Covid-19 pandemic, a unique and unprecedented global crisis.

Details

International Journal of Productivity and Performance Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

Keywords

Open Access
Article
Publication date: 12 April 2024

Aleš Zebec and Mojca Indihar Štemberger

Although businesses continue to take up artificial intelligence (AI), concerns remain that companies are not realising the full value of their investments. The study aims to…

Abstract

Purpose

Although businesses continue to take up artificial intelligence (AI), concerns remain that companies are not realising the full value of their investments. The study aims to provide insights into how AI creates business value by investigating the mediating role of Business Process Management (BPM) capabilities.

Design/methodology/approach

The integrative model of IT Business Value was contextualised, and structural equation modelling was applied to validate the proposed serial multiple mediation model using a sample of 448 organisations based in the EU.

Findings

The results validate the proposed serial multiple mediation model according to which AI adoption increases organisational performance through decision-making and business process performance. Process automation, organisational learning and process innovation are significant complementary partial mediators, thereby shedding light on how AI creates business value.

Research limitations/implications

In pursuing a complex nomological framework, multiple perspectives on realising business value from AI investments were incorporated. Several moderators presenting complementary organisational resources (e.g. culture, digital maturity, BPM maturity) could be included to identify behaviour in more complex relationships. The ethical and moral issues surrounding AI and its use could also be examined.

Practical implications

The provided insights can help guide organisations towards the most promising AI activities of process automation with AI-enabled decision-making, organisational learning and process innovation to yield business value.

Originality/value

While previous research assumed a moderated relationship, this study extends the growing literature on AI business value by empirically investigating a comprehensive nomological network that links AI adoption to organisational performance in a BPM setting.

Details

Business Process Management Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 24 January 2023

Dario Natale Palmucci

This work aims to shed light on the cognitive biases that may have an influence on the strategic decision-making process, with a particular focus on those impacting both human…

Abstract

Purpose

This work aims to shed light on the cognitive biases that may have an influence on the strategic decision-making process, with a particular focus on those impacting both human resources (HR) standard activities within organizations and new innovative change management initiatives critical for them to survive.

Design/methodology/approach

This is a conceptual paper based on a literature review on cognitive biases and managerial decision-making. The conceptual approach is employed to outline how subjective cognitive barriers can undermine managerial decisions and, in particular, the objectivity of HR practices and change management initiatives.

Findings

The discussion emphasizes that cognitive biases are ever-present elements in the decision-making process of professionals, and they influence several areas of management including HR and change management.

Research limitations/implications

Limitations of the study concern the method adopted, as it is conceptual. The implications of the paper are relevant for supervisors and employees working in the HR and innovation/R&D departments in order to create awareness within the organizational contexts and limit the negative influence of these cognitive barriers during their daily activities.

Originality/value

The research contributes to the knowledge on HR management and decision-making process by combining literature findings with practical examples and tips suggesting how to avoid biases in the decision-making process regarding HR and change management.

Details

EuroMed Journal of Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1450-2194

Keywords

Article
Publication date: 22 April 2024

Christian Scholtes, Sabina Trif and Petru Lucian Curseu

Our study aims to explore the interplay between dysfunctional cognitive schemas and rationality for decision comprehensiveness in organizational strategic decisions.

Abstract

Purpose

Our study aims to explore the interplay between dysfunctional cognitive schemas and rationality for decision comprehensiveness in organizational strategic decisions.

Design/methodology/approach

We used a cross-sectional design in which we evaluated individual decision rationality using an objective decision competence test and dysfunctional cognitive schemas in a sample of 270 managers (145 women with an average age of 41 years old). In addition, we asked managers to rate the decision comprehensiveness of their organization’s strategic decision processes.

Findings

Our findings support the detrimental impact of dysfunctional cognition in strategic decision-making in such a way that the association between individual managerial rationality and the comprehensiveness of organizational strategic decisions was positive only when managers reported low dysfunctional cognition, while when managers reported high levels of dysfunctional cognitive schemas, the association between rationality and comprehensiveness was negative.

Originality/value

Our study provides initial empirical evidence for the interplay between dysfunctional cognition and managerial rationality in strategic decision processes, and it opens venues for future research to explore the detrimental role of dysfunctional cognitive schemas in strategy processes.

Details

Journal of Organizational Change Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0953-4814

Keywords

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