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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.

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.

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.

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

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.

Decision-making competence (DMC) of entrepreneurs and managers is a longstanding topic in this increasingly globalized world. These figures operate in conditions not within their own control, and good levels of DMC are often considered to be desirable for the flourishing of business and society. This paper reports an empirical investigation on the DMC of entrepreneurs and managers, in an attempt to inform about their tendencies to incur in risky and costly choices.

Three cognitive biases associated with operational strategies and individual characteristics of entrepreneurs and managers, namely under/overconfidence (UOC, i.e. self-confidence in taking decisions), resistance to sunk costs (RSC, i.e. propensity to take cost investments) and consistency in risk perception (CRP, i.e. how well individuals understand probability rules) were considered . Cognitive biases measures were used in a cross-sectional study on a sample of n = 639 entrepreneurs and n = 512 managers. Data collected via online survey were analyzed using descriptive statistics and inferential statistics to determine differences among entrepreneurs and managers DMC.

Analyses reveal that entrepreneurs exhibit higher levels of UOC compared to managers with a marked presence of UOC among entrepreneurs at younger ages. Conversely, performance regarding RSC improves with higher education levels while age and RSC are positively correlated only for managers, regardless of education. Lastly, entrepreneurs and managers resulted as not being affected by CRP. This study discusses these results to provide initial insights for further avenues of research and practice.

The study offers an innovative, evidence-based viewpoint on how entrepreneurs and managers deal with risky and costly decisions. It offers an initial understanding of the role of UOC, RSC and CRP, that is specific cognitive biases associated with operational strategies and individual characteristics, in the DMC of these working figures. The study forwards avenues of scrutiny of quick-witted entrepreneurs and systematic managers.

Individual differences cause many differences in human behaviour, and the first source of these differences is personality. In various organisations, employees are encouraged to manage conflict through conflict management styles. The way people think can be an essential factor in their ability to conflict management. Difficult employees are individuals who constantly use problematic communication styles to express their feelings and thoughts to direct the behaviour of others. This empirical study aims to investigate the effect of thinking styles on individuals’ conflict management in dealing with difficult personalities.

To achieve the research purpose, a gamified situation was designed, and a survey was performed in laboratory settings and on an online platform. At first, participants’ reactions were measured in the simulated conflict management situation dealing with difficult personalities; subsequently, the dominant thinking style of participants was measured by the rational-experiential inventory (REI) and the cognitive reflection test. At the end, participants answered a series of demographic questions.

The collected data were then analysed by regression analysis. Based on the findings of this study, the rational thinking measured by the REI40 has a significant and positive effect on the performance of individuals in conflict management with difficult personalities in an organisational context; in other words, rational thinking leads to better performance in conflict management than experiential thinking.

The value of this article lies in the direct study of the impact of thinking styles on conflict management, which was done by focusing on difficult organisational personalities. Also, using gamification in research design is another research initiative.

Current research in the field of behavioural finance has attempted to discover behavioural biases and their characteristics in individual investors’ irrational decision-making. This study aims to find out how biases in information based on knowledge affect decisions about investments.

In step one, through existing research and consultation with specialists, 13 relevant items covering major aspects of bias were determined. In the second step, multiple linear regression and artificial neural network were used to analyse the data of 337 retail investors.

The investment choice was heavily impacted by regret aversion, followed by loss aversion, overconfidence and the Barnum effect. It was observed that the Barnum effect has a statistically significant negative link with investing choices. The research also found that investors’ fear of making mistakes and their tendency to be too sure of themselves were the most significant factors in their decisions about where to put their money.

This research contributes to the expansion of the knowledge base in behavioural finance theory by highlighting the significance of cognitive psychological traits in how leading investors end up making irrational decisions. Portfolio managers, financial institutions and investors in developing markets may all significantly benefit from the information offered.

This research is a one-of-a-kind study, as it analyses the emotional biases along with the cognitive biases of investor decision-making. Investor decisions generally consider the shadowy side of knowledge management.

The purpose of this review is to evaluate existing learning agility measures and offer recommendations for their use in organizational and scholarly contexts.

This is a general review paper assessing the psychometric qualities of prevalent learning agility measures. Measures were selected based on their predominance and use in the learning agility literature and organizational settings.

Learning agility measurement is an area requiring further research. Multiple conceptualizations of learning agility exist, making the true structure of learning agility unclear. The learning agility measures in the academic literature deviate from learning agility’s traditional conceptualization and require further validation and convergent validity studies. Commercial measures of learning agility exist, but their development procedures are not subjected to peer review and are not widely used in academic research, given the cost associated with their use.

Learning agility is prevalently used in organizational settings and is receiving increased scholarly attention. Various conceptualizations and measurement tools exist, and it is unclear how these theories and measures relate and differ. This paper contributes to practice by providing practical guidelines and limitations for measuring learning agility.

Learning agility was initially conceived as a multidimensional construct comprising people agility, results agility, change agility and mental agility. As the construct has evolved, the dimension structure of the measure has evolved as well. This study addresses a gap in our current understanding of how to conceptualize and measure learning agility.

The study aimed to explore the core competencies that make educators competent in delivering and achieving the purpose of business/management education effectively.

An exploratory-cum-descriptive approach has been used. Educators at different academic levels in university-led B-schools were the participants of this study. For data collection, a structured questionnaire was developed and implemented.

This study has explored ten core competencies that educators must possess. These competencies have been described based on their attributes and relevance in an educator's academic role.

This study was limited to university-led B-schools of South Asia, thus further validation may more adequately generalize the findings.

This study is raising awareness of the current state of educators in university-led B-schools in South Asian countries and the need for educator competencies toward responsible management education. This study would help educators to develop core competencies, and university-led B-schools to make and manage a system for their educators to keep them competent and performing.

Business/management education is expected to offer the required competencies and opportunities to learn the intricacies of business and management, so students can readily enter into corporate life. It exhibits the significance of educators' competencies. University-led South Asian institutions have seldom tried to develop a standardized framework for the sensitization and development of their educators. It is a key challenge to identify, understand and define a diverse range of competencies and methods of competency development.

The purpose of this Real Impact Research Article is to empirically explore one of the most controversial and elusive concepts in knowledge management research – practical wisdom. It develops a 10-dimensional practical wisdom construct and tests it within the nomological network of counterproductive and productive knowledge behavior.

A survey instrument was created based on the extant literature. A model was developed and tested by means of Partial Least Squares with data obtained from 200 experienced employees recruited from CloudResearch Connect crowdsourcing platform.

Practical wisdom is a multidimensional construct that may be operationalized and measured like other well-established knowledge management concepts. Practical wisdom guides employee counterproductive and productive knowledge behavior: it suppresses knowledge sabotage and knowledge hiding (whether general, evasive, playing dumb, rationalized or bullying) and promotes knowledge sharing. While all proposed dimensions contribute to employee practical wisdom, particularly salient are subject matter expertise, moral purpose in decision-making, self-reflection in the workplace and external reflection in the workplace. Unexpectedly, practical wisdom facilitates knowledge hoarding instead of reducing it.

Managers should realize that possessing practical wisdom is not limited to a group of select, high-level executives. Organizations may administer the practical wisdom questionnaire presented in this study to their workers to identify those who score the lowest, and invest in employee training programs that focus on the development of those attributes pertaining to the practical wisdom dimensions.

The concept of practical wisdom is a controversial topic that has both detractors and supporters. To the best of the author’s knowledge, this is the first large-scale empirical study of practical wisdom in the knowledge management domain.

The paper provides a detailed historical account of Douglass C. North's early intellectual contributions and analytical developments in pursuing a Grand Theory for why some countries are rich and others poor.

The author approaches the discussion using a theoretical and historical reconstruction based on published and unpublished materials.

The systematic, continuous and profound attempt to answer the Smithian social coordination problem shaped North's journey from being a young serious Marxist to becoming one of the founders of New Institutional Economics. In the process, he was converted in the early 1950s into a rigid neoclassical economist, being one of the leaders in promoting New Economic History. The success of the cliometric revolution exposed the frailties of the movement itself, namely, the limitations of neoclassical economic theory to explain economic growth and social change. Incorporating transaction costs, the institutional framework in which property rights and contracts are measured, defined and enforced assumes a prominent role in explaining economic performance.

In the early 1970s, North adopted a naive theory of institutions and property rights still grounded in neoclassical assumptions. Institutional and organizational analysis is modeled as a social maximizing efficient equilibrium outcome. However, the increasing tension between the neoclassical theoretical apparatus and its failure to account for contrasting political and institutional structures, diverging economic paths and social change propelled the modification of its assumptions and progressive conceptual innovation. In the later 1970s and early 1980s, North abandoned the efficiency view and gradually became more critical of the objective rationality postulate. In this intellectual movement, North's avant-garde research program contributed significantly to the creation of New Institutional Economics.

Entrepreneurs are generally considered to be committed in order to strive for highly desirable goals, such as growth or commercial success. However, commitment is a multidimensional concept and may have asymmetric relationships with positive or negative entrepreneurial outcomes. This paper aims to provide a nuanced perspective to show under what conditions commitment may be detrimental for entrepreneurs and lead to overinvestment.

Using a sample of entrepreneurs from incubators in France (N = 437), this study employs a configurational perspective, fuzzy-set qualitative comparative analysis (fsQCA), to identify which commitment profiles lead entrepreneurs to overinvest different resources in their entrepreneurial projects.

The paper exposes combinations of conditions that lead to overinvestment and identifies five different commitment profiles: an “Affective profile”, a “Project committed profile”, a “Profession committed profile”, an “Instrumental profile”, and an “Affective project profile”.

The results show that affective commitment is a necessary condition for entrepreneurs to conduct overinvesting behaviors. This complements previous linear research on the interdependence between affect and commitment in fostering detrimental outcomes for nascent entrepreneurs.

This paper aims to introduce the experience-dominant (Ex-D) logic model, which synthesizes the creation, perceptions and outcomes of Ex-D logic. It is designed to offer valuable insights for strategic managerial applications and future research directions.

Employing a qualitative approach by using eight selected product launch events from reviewed 100 event videos and 55 in-depth interviews with industrial managers to develop an Ex-D logic model, and data were coded and analysed via NVivo.

Results show that the firm’s Ex-D logic is operationalized as the mentalizing of the three types of customer needs (service competence, hedonic excitations and meaning making), the materializing of three types of customer experiences and customer journeys (service experience, hedonic experience and brand experience) and the moderating of three types of customer values (service values, hedonic values and brand values).

This study has implications for adding new insights into existing theory on dominant logic and customer experience management and also offers actionable recommendations for managerial applications.

This study sheds light on the importance of Ex-D logic from a strategic point of view and provides an organic view of the firm. It distinguishes firm perspective from customer perspective, firm experience from customer experience and firm journey from consumer journey.