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This paper aims to review 69 studies related to Muslim consumer behavior and determine the relationship between these topics and Islamic rationality. In addition, this paper elaborates on Al-Ghazali’s Islamic rationality model.

A text analytics approach is used to map 69 studies on Muslim consumer behavior. In addition, the historical-critical and inductive approach is used to identify Muslim scholars’ concepts and opinions regarding Islamic rationality, especially Al-Ghazali.

This study confirms that Muslim consumer behavior is in line with the concept of Islamic rationality proposed by Al-Ghazali. This is evidenced by a strong awareness of Islamic morals and values, which fosters a high commitment to halal products.

The findings of this study will provide essential benefits in the development of Islamic rationality theory, which can then be used as an alternative in explaining Muslim consumer behavior and also can be used as a reference for stakeholders in the industry to mainstream halalfication on products offered in the Muslim market.

The value of originality in this study lies in identifying the relation between Islamic rationality and Muslim consumer behavior, and this effort was confirmed through 69 selected studies related to Muslim consumer behavior.

This paper aims to explore the development of investment decision tools by understanding the rationality behind the disposition effect. We suspect that not all disposition decisions are irrational. The decisions should be evaluated based on the bounded rationality of the individuals’ target and tolerance level, which is not covered in previous literature. Adding the context of individual preference (target and tolerance) in their decision could improve the classic measurement of disposition effect.

The laboratory web experiment is prepared to collect the responses in holding and selling the stocks within 14 days. Two groups of Gen Z investors are observed. The control group makes a decision based on their judgment without any system recommendation. In contrast, the second group gets help inputting their target and tolerance. Furthermore, the framing effect is also applied as a reminder of their target and tolerance to induce more holding decisions on gain but selling on loss.

The framing effect is adequate to mitigate the disposition effect but only at the early day of observation. Bounded rationality explains the rationality of liquidating the gain because the participants have reached their goal. The framing effect is not moderated by days to affect the disposition effect; over time, the disposition effect tends to be higher. A new measurement of the disposition effect in the context of bounded rationality is better than the original disposition effect coefficient.

Gen Z investors need a system aid to help their investment decisions set their target and tolerance to mitigate the disposition effect. Investment firms can make a premium feature based on real-time market data for investors to manage their assets rationally in the long run. Bounded rationality theory offers more flexibility in understanding the gap between profit maximization and irrational decisions in behavioral finance. The government can use this finding to develop a suitable policy and ecosystem to help beginner investors understand investment risk and manage their assets based on subjective risk tolerance.

The classic Proportion Gain Realized (PGR) and Proportion Loss Realized (PLR) measurements cannot accommodate several contexts of users’ targets and tolerance in their choices, which we argue need to be re-evaluated with bounded rationality. Therefore, this article proposed new measurements that account for the users’ target and tolerance level to evaluate the rationality of their decision.

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

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.

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.

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.

The purpose of this study is to analyze the integration of sustainable practices in the strategies and operations of world-class higher education institutions (HEIs) under the theoretical guidance of Max Weber's instrumental and value rationalities.

The results of the Quacquarelli-Symonds World University Ranking, Times Higher Education World University Rankings, THE Impact Rankings and GreenMetric World University Ranking rankings from 2019 to 2022 were paired, and the correlation between them was verified. Institutions with simultaneous occurrence in the four rankings in at least one of the years were also classified. A quantitative and qualitative methodology was used to explore how elite HEIs integrate sustainable practices into their operations and strategies, under the theoretical guidance of Max Weber's instrumental and value rationalities. Furthermore, multivariate regression models with supervised data mining techniques were applied, using the SMOReg algorithm on 368 instances with multiple attributes, to predict the numerical value of sustainability in the rankings. Coefficients were assigned to variables to determine their relative importance in predicting rankings.

The results of this study suggest that although many HEIs demonstrate a commitment to sustainability, this rarely translates into improvements in traditional rankings, indicating a disconnect between sustainable practices and global academic recognition.

The research has limitations, including the analysis being restricted to data from specific rankings between 2019 and 2022, which may limit generalization to future editions or rankings. The predictive models used selected data and, therefore, cannot cover the full complexity of metrics from other rankings. Furthermore, internal factors of HEIs were not considered, and the correlations identified do not imply direct causality. The limited sample and potential methodological biases, together with the heterogeneity of the rankings, restrict the generalization of the results. These limitations should be considered in future studies.

The theoretical contributions of this study include an in-depth understanding of the intersection between academic excellence and environmental and social responsibility. From a management perspective, guidance is provided on integrating sustainability into HEI strategies to enhance visibility and classification in global rankings, while maintaining academic integrity and commitment to sustainability.

This highlights the importance of reassessing academic rankings criteria to include sustainability assessments, thereby encouraging institutions to adopt practices that genuinely contribute to global sustainable development.

The originality lies in the predictive analysis between these rankings, examining the link between the level of sustainability of an HEI and its classification as a World Class University. Furthermore, it combines theories of rationality with the analysis of sustainability integration in elite HEIs, introducing new analytical perspectives that can influence future educational policies and institutional practices.

Thus far, we have treated critical thinking descriptively and analytically in previous chapters. In this, the epilogue, as a closing chapter, we intend to consider critical thinking normatively – what it should be, ideally and holistically. We do this in four stages. First, recapitulating the essential concepts, theories, and paradigms of social welfare, social well-being, and social progress, we suggest that critical thinking should ultimately understand and further social progress and social well-being for all humanity. Second, we submit that the great wealth of corporate and free-market capitalism should – as spiritual capital – benefit all, especially the poor and the marginalized. Third, in order to realize the first two objectives, we posit that critical thinking should be repositioned as the art of aesthetic reasoning and aesthetic rationality such that, fourth, it is best realized within the framework of social mindfulness. We discuss major theories grounding these four parts and reflect on their managerial implications and propose future directions for critical thinking research and development.

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.

This study constructed an information search process model based on costs and benefits to reflect different information search processes under different decisions from a behavioural economics perspective.

This study used a deductive approach to conceptualise the costs, benefits, and uncertainties of the information search process. Subsequently, we constructed an information search process model based on the costs and benefits using graphical reasoning, loss aversion theory, bounded rationality theory, the satisficing theory of behavioural economics, and the uncertainty changes of information search process.

The model revealed four types of user behaviours in the information search process: (1) avoiding search at the initiation of the search process; (2) exiting in the middle of a search; (3) stopping at the point of satisficing; and (4) continuing the search until experiencing physical discomfort.

The model constructed in this study treats the information search as a process based on costs and benefits with uncertainty. This model integrates information search avoidance and stopping into an information search process model. The model identifies users’ bounded rationality by evaluating ideal and real situations. Moreover, the model explains relative and absolute information overloads and the area beyond the user’s bounded rationality. These findings could help improve users’ information literacy and optimise information systems.

This study aims to analyse the outcomes of Indian insolvency proceedings for their ex-post economic efficiency. Ideally, insolvent yet viable companies should witness resolution, whereas insolvent-unviable companies should be liquidated. This study aims to ascertain the key forces that ensure or prevent the application of the first part of this maxim in practice.

The study uses logistic regression on a sample of 320 corporate insolvencies (out of 942 insolvencies) reported under the Insolvency and Bankruptcy Code (IBC), 2016. Two-stage least squares regression is used to check endogeneity issues.

The results claim high levels of rationality from the financial creditors and acceptable levels of viability from the plan proposers for precluding liquidation of insolvent yet viable companies. The findings reveal that an excess of value from resolution over that from liquidation, controls the outcomes of insolvency proceedings. Further examinations indicate that financial creditors’ focus on upfront recovery prevents them from judging the plans on other viability-related factors. Based on the findings, this study recommends that IBC must focus on the importance of both long-term recovery rates and resolution.

To the best of the authors’ knowledge, this is one of the first studies to empirically analyse Type 2 efficiency-related errors prevalent in the Indian insolvency proceedings since the enactment of its new code. The empirical explorations offered in this research can prove to be unique for policy-making.

Alain Verbeke is one of the world’s leading thinkers on international business (IB) and globalization, a renowned scholar and educator who contributes to creating a better global business environment by addressing some of today’s most critical challenges. He was one of the first scholars to advance a theoretically rigorous and practically significant perspective on international corporate social responsibility (CSR). Verbeke’s work on international CSR is particularly impactful because it is rooted in IB theory and based on a realistic set of assumptions about the behavior of managers, policymakers, and other market and nonmarket stakeholders. In this chapter, the authors apply theoretical principles central to Verbeke’s research – most notably behavioral assumptions of bounded rationality and bounded reliability – to analyze businesses’ and societies’ pace of progress in relation to stated environmental, social, and governance (ESG) goals. The authors argue that bounded rationality and reliability challenges create misalignment between stated/imposed commitments toward ESG performance, and economic actors’ ability to deliver on these commitments. The authors discuss examples of such misalignment, focusing on tensions among stakeholders, between stakeholder organizations and firms, and within firms. The authors propose that to be relevant for policy and practice, the sustainability research should be based on realistic microfoundational assumptions.

This study aims to explore how management accounting practices act as drivers of organizational change in situations of institutional complexity.

A case study was carried out in a small company with a strongly rooted social culture, which was acquired by a large conglomerate and underwent a process of strategic change as part of a new control logic. Based on this, the study analyzes the evolution of this change, with a particular focus on the efforts to construct the meaning of the performance through the inscription of objects from the cultural system to which it is attached and the “situated rationality” of the managers who are involved in its production.

The authors show how managers link their own concepts of performance to accounting practices. At the same time, the authors show how accounting practices unfold through representational gaps that their production generates.

This study acknowledges that bias may arise from reliance on retrospective views of past processes and events, gathered primarily through interviews, documentation and observations.

This study highlights that the way in which the performance concept is presented by accounting practices can have a constructive effect on the organization through the aspirations that its representations entail, thus having the potential to stimulate change in organizations.

This study contributes to the organizational literature by clarifying that accounting practices drive change by providing spaces for debates and questions that affect the way organizations understand and report their performance.