Cognitive biases and decision-making strategies in times of change: a systematic literature review

Abstract

PurposeIn a work environment marked by unprecedented complexity, volatility and ambiguity, managers must accomplish their objectives while navigating many challenges. This paper aims to investigate potential interrelations among environmental transformations, cognitive biases and strategic decisions. In particular, the purpose of the study is to crystallize the state of art on the impact of cognitive biases on strategic decisions, in the context of environmental transformations.Design/methodology/approachThe authors have conducted a systematic literature review to identify existing relevant work on this topic and to detect potential avenues for future research.FindingsThe findings highlight how decision-making is influenced and enabled by internal (e.g. perception) and external factors (e.g. digitalization). Specifically, the strategic role of cognitive biases appears to be crucial when investigating the related impact on strategic decisions in times of environmental transformation.Practical implicationsImplications are drawn for scholars and practitioners interested in evaluating the role of specific decision-making determinants for the formation and implementation of strategic decisions. In this sense, we stress that decision-makers need to manage their cognitive biases and select the right information out of a wide data set in order to adapt to environmental transformations.Originality/valueBy systematizing the literature review, potential interrelations among environmental transformations, cognitive biases and strategic decisions are identified. Furthermore, the primary phases that drive the decision-making process are proposed (analysis, decision, onboarding and control).

Tunnel Construction Workers’ Cognitive Biases and Unsafe Behaviors: The Mediating Effects of Risk Perceptions

“…Construction workers' BCs can directly influence WUBs. is finding is consistent with prior studies in other fields [32,33]. Low et al [26] included cognitive bias as an antecedent in their construction workers' risk-taking behavior model.…”

“…CBs and eir Relationships with WUBs. CBs refer to a wide range of recurring reasoning tendencies that can cause deviations from the realistic facts [32,33]. ese psychological tendencies indicate human's systematic analysis shortcuts in information-processing [28].…”

“…More researchers introduced CBs to their disciplines and conducted salient investigations including health-caring [36], management [29], forensic [37], software engineering [33], and strategic decision-making [32]. us, over 200 CBs have been identified in previous studies [33].…”

“…e mediating effects can function at the individual level or the group level. For instance, CBs influence managers' risky behaviors by decreasing managers' risk perception [32]. In team decision-making, Houghton et al [28] highlighted that group cognitive biases can cause deviated RP and then lead to improper risky behaviors.…”

A round of dancing and then one more: embedding intuition in the ballet of entrepreneurial decision making

“…Sacrificing intuition on the altar of rationality is thought to undermine the entrepreneurs' ability to timely frame the competitive challenges they have to overcome in order to ensure the success of the entrepreneurial venture (Emami et al, 2020). Moreover, it paves the way for a detrimental delay in making appropriate organizational and management choices, which puts the viability of the entrepreneurial venture under stress (Acciarini et al, 2020).…”