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The logic of consequences and the logic of appropriateness have long been central to understanding behavior in organizations. However, scholarly work on the logic of appropriateness has consisted mostly of conceptual clarification and ex post explanation of observed behavior. In an effort to facilitate the study of the logic of appropriateness through experimental methods, this paper introduces an experimental paradigm that allows for the manipulation of decision logic as an independent variable. Using this paradigm, 710 participants played four iconic behavioral games in which profitability and ethics are both at play and, sometimes, at odds: Prisoners’ Dilemma, Dictator Game, Ultimatum Game, and Trust Game. The manipulation generated behavioral data, as well as qualitative data about participants’ considerations while deciding according to each logic. The behavioral data show that, compared to participants employing a logic of consequences, participants employing a logic of appropriateness rejected more unfair offers in an Ultimatum Game and were more generous when reciprocating trusting behavior in a Trust Game. In all other cases, behavior between the two logics was not significantly different. An analysis of the qualitative data suggests that a logic of consequences increased participants’ focus on monetary concerns, whereas a logic of appropriateness increased participants’ focus on moral concerns. Taken together, these data provide new insights into when, how, and why the two logics result in behavioral and cognitive differences. The authors conclude by considering directions for future research that they see as particularly amenable to study using the experimental manipulation presented here.

The purpose of this paper is to explore the logics that expert entrepreneurs use when faced with a critical incident threat.

Attempts have been made to define “entrepreneurial logic”. This paper is influenced by Sarasvathy’s work on high-performance entrepreneurs, which finds that when faced with uncertainty entrepreneurs employ unconventional logic, and encompasses later research acknowledging social contexts where entrepreneurs operate. A typology of decision-making logics is developed, taking into account the situation of crisis. Seven expert entrepreneurs who faced crisis and, despite this, are still successfully operating businesses were interviewed. The paper develops a critical incidents methodology.

Experienced entrepreneurs were found to tend towards causal logic when “the stakes were high” and the decision may affect the survival of their business. They also weigh up options before acting and tend to seek advice from trusted “others” within their network before or after they have made a decision. A mixture of causal and intuitive logic is evident in decisions dealing with internal business problems.

The decisions that entrepreneurs make shape and define their business and their ability to recover from crisis. If researchers can develop an understanding of how entrepreneurs make decisions – what information they draw upon, what support systems they use and the logic of their decision-making and rationalisation – then this can be used to help structure support.

By exploring decision-making through critical incidents we offer an innovative way to understand context-rich, first-hand experiences and behaviours of entrepreneurs around a focal point.

As two essential styles of firm decision-making, the relationships among effectuation logic, causation logic and firm performance are unclear. It is helpful to deepen the understanding of reasoning theory and the process of decision-making. The purpose of this paper is to explore the relationship between effectuation logic, causation logic and firm performance.

Based on 31 independent empirical studies (including 11,600 samples) published by predecessors, meta-analysis is used to systematically integrate the impact of two decision-making styles on firm performance and explore the potential factors affecting their relationship.

The results show a positive correlation between two decision-making styles and firm performance and the influence of effectuation decision-making style in firm performance is slightly stronger. However, the application environment is different: in the emerging market, the causation decision-making style is more effective for firm performance management. When the firm chooses the effectuation decision-making style, it is more effective for performance management in the emerging market. In addition, the industry type, firm performance evaluation tools, national development level and firm scale and firm age can significantly moderate the impact of two decision-making styles on firm performance.

Both decision-making logics are possible ways for firm to success. Still, the future needs to dig deeper into the black box that can unlock the decision-making styles to achieve firm performance or competitive advantage based on other factors of the decision-behavior-outcome business model, more longitudinal data and experiments.

To the best of the authors’ knowledge, this is the first study to explore the impact of decision-making styles (effectuation logic and causation logic) on firm performance using a meta-analysis.

It is unclear how nascent entrepreneurs make decisions during the venture creation process. The purpose of this paper is to investigate decision-making logics and their transformation over time among student entrepreneurs who aim to create new business ventures in the higher education setting.

The study employs the mixed methods approach through the use of survey and observation data. The longitudinal survey data comprise three surveys collected via an internet-aided tool. The constructs of causation and effectuation are measured using previously tested scales (Chandler et al., 2011). Non-participant observation data were collected during the course, focussing on the venture creation processes of four different start-ups, and were analysed thematically.

The findings show three transformation patterns – doubts in how to proceed, unwillingness to proceed, and unsatisfactory team dynamics – that led individuals towards a coping decision-making logic in which no causation or effectuation is emphasised. The findings illustrate that, despite this stage of decision-making logic, the learning process continues: Even if no new business venture is launched, entrepreneurship education can still generate learning outcomes that improve students’ understanding of entrepreneurship as well as understanding of themselves as entrepreneurs.

This study brings the theories of causation and effectuation into the teaching of entrepreneurship. Of particular value to scholars is the fact that the study generates new understanding of the decision-making logics during new venture creation. Accordingly, this study sheds new light on the transformation and complementarity of the decision-making logic of an individual as new ventures emerge in an educational context reflecting the real-life start-up context.

The purpose of this paper is to examine strategic decisions surrounding critical events to show how the decision-making processes evolve and how the dominant logic changes vis-à-vis those decisions. Further, this study explores the processes of managerial decision making focusing on spatial and temporal cognition dimensions.

The methodology adopted in this study is a case study using the retrospective processual analysis approach. Data were collected using both primary and secondary sources. In all, 40 years of secondary data on key critical events and decision making were collected using a range of secondary sources. Those events were further examined using 49 in-depth semi structured interviews.

The findings of this study explain the relationship between operant conditions, strategic actions and outcomes of strategic decisions by highlighting the significance of knowledge strategy, strategic agility and intentionality in shaping and reshaping managers’ dominant logic. Further, the authors show that the dominant coalition, among other factors, plays an important role in building decision-making capacity and in the formation and transformation of an existing dominant logic.

The study identified a number of limitations. First, the issue of generalization as the data were collected from only two case study companies. Second, in some cases respondents were asked to respond to research questions using “memory of the events” which took place a long time ago, hence the issue of credibility. Further, sometimes respondents reported information collected through hearsay. To overcome the limitations of this research, the authors made all efforts to ensure that the data collected were reliable and credible such as by using diverse data sources, confirmation of events at multiple level and personal observations.

The study identifies and explains a number of factors which influence decision making. The authors also present the revised dominant logic model which can act as a tool in managerial decision making.

The paper shows how managerial decision making changes knowledge strategy, which in turn leads to changes in existing dominant logic or the creation of a new dominant logic, hence looking at the issues of decision making using an evolutionary perspective. Second, the paper empirically tests and explains the relationship between intentionality, actions and organizational outcomes using spatial and temporal learning. Finally, the use of the longitudinal retrospective processual analysis and events analysis, is a novel way of understanding a particular phenomenon.

Why do managers redesign global supply chains in a particular manner when faced with compounding geopolitical disruptions? In answering this research question, this study identifies a constrained system of reasoning (decision-making logic) employed by managers when they redesign their supply chains in situations of heightened uncertainty.

The authors conducted 40 elite interviews with senior supply chain executives in 28 companies across nine industries from November 2019 to June 2020, when the UK was preparing to leave the European Union, the US–China trade war was escalating, and Covid-19 was spreading rapidly around the globe.

When redesigning global supply chains, the authors find that managerial decision-making logic is constrained by three distinct environmental ecosystem conditions: (1) the perceived intensity of institutional pressures; (2) the relative mobility of suppliers and supply chain assets; and (3) the perceived severity of the potential disruption risk. Intense government pressure and persistent geopolitical risk tend to impact firms in the same industry, resulting in similar approaches to decision-making regarding supply chain design. However, where suppliers are relatively immobile and supply chain assets are relatively fixed, a dominant logic is consistently present.

Building on an institutional logics perspective, this study finds that managerial decision-making under heightened uncertainty is not solely guided by institutional pressures but also by perceptions of the severity of risk related to potential supply chain disruption and the immobility of supply chain assets. These findings support the theoretical development of a novel construct that the authors term ‘supply chain logics’. Finally, this study provides a decision-making framework for Senior Executives competing in an increasingly complex and unstable business environment.

Although experiential consumption has received some attention from tourism and hospitality researchers in the past decade, the profile of experiential consumers has not been discussed thus far. The purpose of this paper is thus twofold: to test the sociodemographic antecedents of experiential versus utilitarian consumption for profiling purposes and to examine the potential behavioral consequences of experiential versus utilitarian consumption tendencies.

On an online research platform, 413 respondents answered questions concerning logic-based/emotion-based decision-making traits, as well as sociodemographic characteristics and several travel behavior variables.

Data revealed that emotion-based decision makers are more likely to be females, who are more passionate about their travel needs than are logic-based decision makers. Results also revealed that the importance that emotion-based decision makers place on travel preferences, potential travel risks and travel information sources is higher than that of their logic-based counterparts.

The current study used one personality trait, emotion-based decision-making, as a proxy for experiential consumption. There are other potentially explanatory traits that should be investigated in future studies.

Destination marketing organizations (DMOs) promoting destinations with historical and cultural attractions can capitalize on the finding that these attractions are highly demanded by both types of decision makers, whereas DMOs of man-made attraction destinations may need to find ways to embellish the significance of these attractions for both types of decision makers.

Even though social risk was the lowest-rated item in general, both decision-making traits were highly correlated with social risk. The higher the tendency in the decision-making style, either logic-based or emotion-based, the more important how a trip would make them look within their social circle. Social risk concerns for both types of decision makers should be addressed in marketing messages.

The current study represents one of the earliest attempts to draw a picture of experiential consumers in comparison with utilitarian consumers in sociodemographic and behavioral characteristics.

This paper investigates the suitability of fuzzy-logic-based support tools for initial screening of manufacturing reshoring decisions.

Two fuzzy-logic-based support tools are developed together with experts from a Swedish manufacturing firm. The first uses a complete rule base and the second a reduced rule base. Sixteen inference settings are used in both of the support tools.

The findings show that fuzzy-logic-based support tools are suitable for initial screening of manufacturing reshoring decisions. The developed support tools are capable of suggesting whether a reshoring decision should be further evaluated or not, based on six primary competitiveness criteria. In contrast to existing literature this research shows that it does not matter whether a complete or reduced rule base is used when it comes to accuracy. The developed support tools perform similarly with no statistically significant differences. However, since the interpretability is much higher when a reduced rule base is used and it require fewer resources to develop, the second tool is more preferable for initial screening purposes.

The developed support tools are implemented at a primary-criteria level and to make them more applicable, they should also include the sub-criteria level. The support tools should also be expanded to not only consider competitiveness criteria, but also other criteria related to availability of resources and strategic orientation of the firm. This requires further research with regard to multi-stage architecture and automatic generation of fuzzy rules in the manufacturing reshoring domain.

The support tools help managers to invest their scarce time on the most promising reshoring projects and to make timely and resilient decisions by taking a holistic perspective on competitiveness. Practitioners are advised to choose the type of support tool based on the available data.

There is a general lack of decision support tools in the manufacturing reshoring domain. This paper addresses the gap by developing fuzzy-logic-based support tools for initial screening of manufacturing reshoring decisions.

The study explores the decision-making logics driving the usage of social media among internationalising small and medium-sized enterprises (SMEs), and how it supports entrepreneurial opportunity recognition. The author draws on qualitative data from four internationalising firms all of which had adopted social media. The findings show that causal decision-making logic is the main element driving the initial usage of social media (i.e. pre-adoption). Concerning ongoing usage, the author found evidence of both causal and effectual logic; the choice being dependent on the firm’s resources. The findings also show that both drivers of social media users have a paramount role in entrepreneurial opportunity recognition.

The purpose of this paper is to explore the application of fuzzy logic in real estate investment in Hong Kong. There have been sufficient debates on the literature, providing the theoretical background on real estate investment decisions but there has been a lack of empirical support in this regard. This paper attempts to fill the gap between theorem and application.

The fuzzy logic system is adopted to evaluate the situation of a real estate market with imprecise and vague information. An indicator‐portfolio, rather than a specific indicator/index usually employed by practitioners, is explored to assist investors in risk management. The result derived from this framework is then compared to the property price index. This approach provides a framework in understanding the market without statistical and mathematical models. It tries to stimulate the complex human cognitive process involving decision making.

The housing‐indicator portfolio composition produces an outcome value which is able to reflect the complexities of both the real estate market and investors' expectations. An increase of this value implies that the investment condition is becoming more positive.

The paper reveals that fuzzy logic can provide some insights in an intuitive manner and is capable of obtaining information not found in market data. It is particularly useful to investors without experience in mathematical modeling.

This paper establishes a basic framework of fuzzy logic for real estate investment on which a base is formed as a reference for practitioners and investors. However, they should make references to the specific housing‐indicator portfolio composition in their own regions.

This paper has used a fuzzy logic system to assist practitioners as well as investors on decision making in real estate investment with imperfect market information. With the aid of the system, practitioners and investors are able to enhance their investment decision‐making quality by reducing the risk incurred by such uncertainties.