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

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.

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.

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.

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.

This article aims to systematically review the literature published in recognized journals focused on cognitive heuristic-driven biases and their effect on investment management activities and market efficiency. It also includes some of the research work on the origins and foundations of behavioral finance, and how this has grown substantially to become an established and particular subject of study in its own right. The study also aims to provide future direction to the researchers working in this field.

For doing research synthesis, a systematic literature review (SLR) approach was applied considering research studies published within the time period, i.e. 1970–2021. This study attempted to accomplish a critical review of 176 studies out of 256 studies identified, which were published in reputable journals to synthesize the existing literature in the behavioral finance domain-related explicitly to cognitive heuristic-driven biases and their effect on investment management activities and market efficiency as well as on the origins and foundations of behavioral finance.

This review reveals that investors often use cognitive heuristics to reduce the risk of losses in uncertain situations, but that leads to errors in judgment; as a result, investors make irrational decisions, which may cause the market to overreact or underreact – in both situations, the market becomes inefficient. Overall, the literature demonstrates that there is currently no consensus on the usefulness of cognitive heuristics in the context of investment management activities and market efficiency. Therefore, a lack of consensus about this topic suggests that further studies may bring relevant contributions to the literature. Based on the gaps analysis, three major categories of gaps, namely theoretical and methodological gaps, and contextual gaps, are found, where research is needed.

The skillful understanding and knowledge of the cognitive heuristic-driven biases will help the investors, financial institutions and policymakers to overcome the adverse effect of these behavioral biases in the stock market. This article provides a detailed explanation of cognitive heuristic-driven biases and their influence on investment management activities and market efficiency, which could be very useful for finance practitioners, such as an investor who plays at the stock exchange, a portfolio manager, a financial strategist/advisor in an investment firm, a financial planner, an investment banker, a trader/broker at the stock exchange or a financial analyst. But most importantly, the term also includes all those persons who manage corporate entities and are responsible for making their financial management strategies.

Currently, no recent study exists, which reviews and evaluates the empirical research on cognitive heuristic-driven biases displayed by investors. The current study is original in discussing the role of cognitive heuristic-driven biases in investment management activities and market efficiency as well as the history and foundations of behavioral finance by means of research synthesis. This paper is useful to researchers, academicians, policymakers and those working in the area of behavioral finance in understanding the role that cognitive heuristic plays in investment management activities and market efficiency.

The paper addresses the following research question: how do decision-makers use heuristics in their international business (IB) environment? Whereas, the literature has focused on entrepreneurial companies, here contrasting approaches to learning and using heuristics in international marketing (IM) decisions are examined and discussed.

The paper aims to address a gap in the study of micro-foundations of internationalization, exploiting research from other disciplinary fields. It combines a multidisciplinary literature review and longitudinal case studies to illustrate different approaches in learning and using heuristics by international marketers.

International marketers can adopt “closed” heuristics that are consolidated and consistently followed, or “open” heuristics, which are constantly being adapted and learned. Established multinationals learn heuristics in international marketing decision-making, following both “closed” and “open” models.

This paper offers an original contribution by presenting different approaches not yet examined in the literature, focusing on how international marketers make decisions through learning and using heuristic rules. The focus is on established exporters, in contrast to the literature that has largely paid attention to the effectiveness of heuristics in new entrepreneurial firms.

This paper aims to introduce eristic decision-making in entrepreneurship. A decision is eristically made when it utilizes eristics, which are action-triggering short-cuts that draw on hedonic urges (e.g. sensation-seeking). Unlike heuristics, eristic decision-making is not intendedly rational as eristics lead to decision-making without calculating or even considering the consequences of actions. Eristics are adaptive when uncertainty is extreme. Completely novel strategies, nascent venturing, corporate venturing for radical innovation and adapting to shocks (e.g. pandemic) are typically subject to extreme uncertainties.

In light of the relevant debates in entrepreneurship, psychology and decision sciences, the paper builds new conceptual links to establish its theoretical claims through secondary research.

The paper posits that people adapt to extreme uncertainty by using eristic reasoning rather than heuristic reasoning. Heuristic reasoning allows boundedly rational decision-makers to use qualitative cues to estimate the consequences of actions and to make reasoned decisions. By contrast, eristic reasoning ignores realistic calculations and considerations about the future consequences of actions and produces decisions guided by hedonic urges.

Current entrepreneurial research on uncertainty usually focuses on moderate levels of uncertainty where heuristics and other intendedly rational decision-making approaches pay off. By contrast, this paper focuses on extreme uncertainty where eristics are adaptive. While not intendedly rational, the adaptiveness of eristic reasoning offers theoretically and psychologically grounded new explanations about action under extreme uncertainty.

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 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.

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.

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.

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.

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.

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.

The purpose of this paper is to address the gap in the literature by providing a precise conceptualization of the concept of patience in the context of leadership.

The current study was conducted using a qualitative approach as it aimed to explore leaders’ perceptions and experiences with patience and eventually build a theoretical model in relation to the role of patience in leadership. Because the aim of the study was to obtain insight into the experiences of the participants in their own words, this study adopted a grounded theory research design.

The grounded theory study resulted in an emergent theoretical model for understanding the decision-making process of leaders who exhibit patience as a character strength and how those leaders promote organizational success. Through an inductive approach, this grounded theory study identified the behaviors that participating leaders viewed as patient, as well as the outcomes and the contextual conditions for the effectiveness of such behaviors.

A major contribution of this study is that leaders epitomized by patience are guided by a decision-making framework that can contribute to more favorable decision making outcomes.

The proposed model for patience leadership has implications for developing the leadership capacity.

Patience, as a leadership quality, has been overlooked virtue in the social and psychological sciences. In order to explore the potential nexus between patience and leadership, the study has offered an emergent theoretical model and indicated the specific ways in which leaders may effectively practice patience.

Heuristics are used in the judgment and decision-making process of bank employees; however, discussions and research on the type or range of judgmental heuristics are very difficult to find throughout the world. In light of this, the purpose of this paper is to empirically analyze what types of heuristics are used in bank employees’ judgment and decision-making processes and the extent to which those types of heuristics prevent rational decision making due to the systematic biases they generate. In particular, this study aims to conduct empirical research based on various scenarios related to the banking industry.

To examine the heuristics in decision-making circumstances and the level of subsequent biases, the present study narrowed the scope of research to the three main types of heuristics introduced by Tversky and Kahneman (1974), namely, representativeness heuristics, availability heuristics and anchoring and adjustment heuristics. To analyze the bank employees’ decision making, this study specifically investigated the level of decision-making heuristics and the level of bias by focusing on these three types of heuristics. This study targeted bank employees who either sell financial products or are engaged in customer service work at a real/physical bank.

For representativeness heuristics, this study found bank employees’ judgment of probability was influenced by biases, such as insensitivity to prior probability, insensitivity to sample size, misconception of chance and insensitivity to predictability. Regarding availability heuristics, it found that bank employees judge the probability of events based on the ease of recalling an event instead of the actual frequency of the event, and so they fall prey to systematic biases. Finally, regarding anchoring and adjustment heuristics, this study found that employees fall prey to judgment biases as they judge the probability of conjunctive events and disjunctive events based on anchoring and insufficient adjustment.

Although people who are well-trained in statistics can avoid rudimentary errors, they fall prey to biased judgment at a similar level to those who are not properly trained in statistics when it comes to more complicated and ambiguous issues. It clearly indicates that it is risky to determine that financial experts would be more rational than the general public in making various judgments required in the policy-making process. To conclude, it is imperative to recognize the existence of heuristics-based systematic biases in the judgment and decision-making process and, furthermore, to reinforce the education and training system to improve bank employees’ rational choice and judgment ability.

The purpose of this paper is to explain why individuals with attention deficit/hyperactivity disorder (AD/HD) gravitate towards and excel in highly dynamic environments such as those encountered by family business owners.

This conceptual paper draws on extant literature to establish parallels between the executive functions of individuals with AD/HD and entrepreneurial cognition. The authors use previous theoretical and empirical research to suggest that the use of intuition in the decision‐making process may explain the link between individuals with AD/HD and entrepreneurs.

Family members with AD/HD suffer from diminished executive functions that force them to make decisions and act upon information that would be insufficient for the non‐entrepreneur in the family.

The paper presents evidence suggesting a link between executive functions and intuitive decision making in the family business context, however, empirical research is now warranted to advance this line of research.

Establishing the relationship between AD/HD and entrepreneurship may lead family business leaders to identify and integrate family members with AD/HD in to the family firm.

The contribution of this paper is to explain, based on bounded rationality, why individuals with AD/HD gravitate to entrepreneurship.