Franchise partner selection decision making

This paper aims to investigate international franchise partner selection from the perspective of different decision making models and analyse the influence of organisational factors on the franchise selection decision making. Empirical data were collected from a leading international hotel group through multiple data collection methods. The research findings indicate that the participant organisation mainly exploits a processual approach to decision making. Power over the decision making shifts to different levels where the necessary information can best be accumulated and interpreted in different stages of the process. Different organisational parameters interact and exert influence upon each other while a franchise organisation decides to choose the most appropriate franchise partner.     

Competitive analysis

Despite the strategic importance of understanding competitive structure and the dynamics of competitive behavior, there has been almost no empirical study of how managers perform these analyses. We provide a conceptualization of how competitive analyses can be framed by decision makers and for researching how human biases in decision making and corporate culture impact on the nature and use of competitive analysis information.We are grateful for the comments of George Day, Peter Dickson, Pete Fader, Don Lehmann, Rajan Varadarajan, and David Wheaton on an earlier version of this paper.     

Buyer-supplier relational characteristics and joint decision making

This paper explores propositions dealing with the influence of buyer-supplier relational characteristics on their joint decision making. Specifically, the proposed conceptual framework focuses on the link between three relational constructs (trust, commitment, relationship maturity) and two types of joint decision making (strategic and tactical). Strategic decisions are those that “expand the pie” for both parties (integrative decisions), and tactical decisions are those that “divide the pie” between the two parties (distributive decisions). We propose that the effect of relational characteristics on joint decision making is likely to be moderated by the characteristics of the supplier organization (such as team orientation) and its environment (such as competitive intensity). We conclude with a brief discussion of the implications and possible extensions of the theoretical model.     

Household preference revisions and decision making: The role of disconfirmation

In this paper, we examine the role of disconfirmation as an important determinant of household preference revisions and decision making. Although prior research has examined decision influence and information exchange in household decision making, the impact of disconfirmation on individual family member preferences and the joint household preference has not been explicitly studied. Analogous to the main types of social influence found within groups, we identify two types of disconfirmation that impact individual preferences arising from family interaction or discussion. These two types of disconfirmation are informational disconfirmation, related to new product information revealed in family discussion being different than one's prior beliefs, and preference disconfirmation, where a family member has incorrect expectations of the preferences of other influential household members. An empirical study involving a household vacation decision demonstrates significant disconfirmation effects in explaining individuals' post-discussion preferences, as well as the joint household preference and decision. Based on the empirical results, we discuss various implications and suggest future research to study the specific consequences of disconfirmation in household decisions.     

Competitive Bluffing: An Examination of a Common Practice and its Relationship with Performance

Bluffing, a common and consequential form of competitive behavior, has been comparably ignored in the management literature, even though misleading one’s rivals is suggested to be an advantageous skill in a multifaceted and highly competitive environment. To address this deficiency and advance scholarship on competitive dynamics, our study investigates the moral reasoning behind competitive bluffing and, using a simulated market-entry game, examines the performance effects of bluffing. Findings suggest that decision makers’ views on the ethicality of bluffing competitors differ from their beliefs on the ethicality of misleading other organizational stakeholders. Analysis also indicates that decision makers who view competitor bluffing as more ethical (less unethical) are more willing to engage in competitive bluffing. Finally, while bluffing is often thought to be an effective business practice, results show that in the context of repeated interaction, bluffing is not conducive to high levels of performance and, in fact, can have undesirable consequences.     

Artificial intelligence and the future of work: Human-AI symbiosis in organizational decision making

Artificial intelligence (AI) has penetrated many organizational processes, resulting in a growing fear that smart machines will soon replace many humans in decision making. To provide a more proactive and pragmatic perspective, this article highlights the complementarity of humans and AI and examines how each can bring their own strength in organizational decision-making processes typically characterized by uncertainty, complexity, and equivocality. With a greater computational information processing capacity and an analytical approach, AI can extend humans’ cognition when addressing complexity, whereas humans can still offer a more holistic, intuitive approach in dealing with uncertainty and equivocality in organizational decision making. This premise mirrors the idea of intelligence augmentation, which states that AI systems should be designed with the intention of augmenting, not replacing, human contributions.     

In search of fair trade: ethical consumer decision making in France

While the market for fair trade products has been growing in many countries, this paper examines the French market where fair trade remains marginal but is experiencing growth. Using a modified Theory of Planned Behaviour framework the research examines consumer intention to purchase fair trade grocery products in order to explain the pertinent decision‐making criteria of both consumers of and potential consumers of fair trade. Results reveal that concerned consumers should not be treated as one homogeneous group, rather, the distinct variations in the factors that influence their decision making must be considered when promoting, labelling and distributing fair trade products. Implications for both sustaining and developing the market for fair trade products in the future are highlighted and discussed.     

Competency,prior performance,opportunity framing,and competitive response: Exploring some behavioral decision theory perspectives

Theoretical perspectives from behavioral decision research and strategic management are employed to make competing predictions of managers' competitive response decisions. Results indicate that responses of greater magnitude are more likely when an ambiguous situation surrounding the market entry of a new competitor is framed as an opportunity rather than as a threat and when the prior performance and competency of the firm are at high levels. Faster responses are more likely under high levels of competency, especially when prior performance has been good. These results run counter to two of three predictions of behavioral decision research and raise questions about limits to the generalizability of these theoretical perspectives.     

Explaining Competitors' Reactions to New Product Introductions: The Roles of Event Characteristics,Managerial Interpretation,and Competitive Context

Competitive reactions to new product introductions can be explained by observable characteristics related to the event, and by the interpretations of these factors by the defending competitors. A general model of competitive response is developed to explore the mediating role of interpretation factors between event characteristics and reaction decisions, and to study the contextual factors that moderate the relationship between event characteristics and interpretations. Results clearly demonstrate that if the interpretation factor is not taken into account researchers may overlook the influence of important variables explaining competitive reactions. Also, results indicate heterogeneity among managers regarding their interpretation of observable characteristics. Possible moderating factors are explored. The outcomes of this study are important both for new scientific insights in competitive reaction decision making, and for managers who act in the competitive arena.     

A linguistic decision process in group decision making

Assuming a set of linguistic preferences representing the preferences of the individuals, a linguistic choice process is presented. This is developed using the concept of fuzzy majority for deriving a collective linguistic preference, and the concept of nondominated alternatives for deriving the selected alternatives in the linguistic choice process. The fuzzy majorities are equated with fuzzy linguistic quantifiers. The collective linguistic preference is derived by means of a linguistic ordered weighted averaging operator whose weights are defined using a fuzzy linguistic quantifier. In order to obtain the nondominated alternatives, we present a novel reformulation of Orlovski's nondominance degree under linguistic information.     

The price of unconditional love: Consumer decision making for high-dollar veterinary care

Animal companions play an increasingly important role in consumers' lives, and therefore many pets receive acceptance and treatment as members of the family. As the human-animal bond increases, so does consumer spending on pets, including that on high-dollar veterinary care. Unlike human health care, however, consumers must directly pay for the majority of high-dollar veterinary care. When an animal companion is ill, the consumer faces a stressful decision of whether even to engage in the treatment, along with the hardship of paying for it. Despite a rudimentary understanding of the factors relevant in the decision-making process regarding high-dollar veterinary care, knowledge is lacking about this often heart-wrenching choice. Using a depth-interview method, this study examines the decision-making process consumers go through when facing expensive medical treatment for their pets. The research results in an expansion of three a priori themes and the discovery and discussion of three factors that influence consumer decisions about veterinary care across all three themes.     

Merger and acquisition evaluation and decision making model

Based on three merger and acquisition (M&A) methods and applying multiple-criteria decision making, the purpose of this paper is to establish an M&A evaluation model. The decision making trial and evaluation laboratory (DEMATEL) results show that the three business M&A methods possess interactive effect and self-feedback relationships. This study utilizes the analytic network process to calculate the weights of seven evaluation criteria; expected stock dividend is ranked as the most important criterion, followed by stock price/earnings per share, stock dividend growth, sales/market capitalization ratio, discount rate, replacement value, and liquidation value. This study uses Vlsekriterijumska Optimizacija I Kompromisno Resenje (VIKOR) to evaluate the performance of three Taiwanese banks. The results show that Bank B is the best M&A investment choice. Finally, the study establishes a comprehensive M&A decision making evaluation model.     

Independent decision making of adolescents regarding food choice

The adolescence period is the stage in the life cycle in which individuals begin to develop independent decision making related to their social environment including their dietary intake. The period is fundamental in the development of longer term eating habits that may be reflected in adulthood. This study aimed to investigate the decision‐making process of adolescents and their dietary behaviour in the achievement of a balanced diet and to determine the underlying factors that may affect these choices. To meet this aim, a three phase data collection was utilized. In phase 1, a baseline questionnaire (n = 239) measured factors affecting dietary behaviour and the barriers in the achievement of a balanced diet. Phase two employed and measured respondents’ (n = 235) independent decision making by rating nineteen menu choices which reflected all options of dietary guidelines. This was analyzed through conjoint analysis. In phase three a subsample (n = 55) from the first two phases completed a food map which determined underlying reasons for food decisions and choice behaviour. Results revealed that when adolescents are given free choice they tend to follow an unbalanced diet with some diets raising concerns for their current and future health. Fifty‐seven percent of respondents displayed serious concerns in their dietary choice of which 18% were identified as requiring immediate intervention. The most noticeable factors affecting dietary choice were the desire to eat foods high in fat and carbohydrates and low in fruit and vegetable consumption. Food‐mapping indicated prior knowledge and attitudes had no effect on the choices made but that that behaviour of parents in the preparation of meals at home and peers in the selection of snack choices had the most influence on the unbalanced diet.     

Decision making and decision aiding: Defining the process,it representations,and support

We present a formalized account of decision making as a multistep process that involves several classes of participating entities. The purpose of this article is to lay the foundations for a conceptual framework in which decision support systems can be placed. A series of increasingly formal representations of the decision problem are developed, from a mental model conceived by the decision maker to a knowledge base that may be used in a decision support system. The reformulations of the decision problem lead us to contemplate different forms of support: for mental models, for formal models (this includes supporting measurement and representation), for solution, and for communication.     

Using informal learning for business decision making and knowledge management

The process of making decisions in business requires, among other things, the efficient management of information to do with employee competencies. Dealing solely with competencies that employees learn in institutional contexts, however, is insufficient, as employees also acquire competencies through informal learning activities outside the organization. If an organization is to make well-informed decisions, the entity must gather information about the external activities of its employees that contribute to their competency development. This paper proposes a methodology to facilitate the identification and recognition of an employee's informal learning instances, which receives support from a technological framework. To validate the methodology, a pan-European project implements the framework, and a panel of experts evaluates its modus operandi. The main findings from this study suggest that, although making decisions on the basis of instances of informal learning is possible, both the methodology and the tools behind the gathering of this information should be flexible enough to satisfy the needs of the organization.     

Consumer strategic decision making and choice process: prefabricated house purchase

This study examines the consumer choice process in case of strategic purchases, such as house buying. In view of the existing literature exploring consumer decision making and choice for strategically important products, the purpose of this research is twofold: (a) to develop a conceptual model of strategic decision making; and (b) to empirically explore this model with regard to prefabricated house purchases. The results of our qualitative research suggest that in addition to the idiosyncratic characteristics of the customer, his or her personal situation, environmental factors, the role of feelings, experience, subconscious factors, needs, and goals should to be taken into account to better understand strategic consumer decision making and their choice process when buying a house.     

Building consensus in strategic decision making: System dynamics as a group support system

System dynamics was originally founded as a method for modeling and simulating the behavior of industrial systems. In recent years it is increasingly employed as a Group Support System for strategic decision-making groups. The model is constructed in direct interaction with a management team, and the procedure is generally referred to as group model-building. The model can be conceptual (qualitative) or a full-blown (quantitative) computer simulation model. In this article, a case is described in which a qualitative system dynamics model was built to support strategic decision making in a Dutch government agency.Since people from different departments held strongly opposite viewpoints on the strategy, the agency had discussed its strategic problem for more than a year, but was obviously not able to reach consensus. The application of group model-building was successful in integrating opposite points of view, as well as in fostering consensus and creating commitment.The purpose of the article is twofold: first, to illustrate the process of group model-building with system dynamics; second, to evaluate why it was successful. Evaluation results reveal the importance of both systemic thinking through model-building and the role of the facilitator in catalyzing the strategic decision-making process.     

I'll have what she's having: (Social) Perceptions of default options and implications for marketing and decision making

The power that default options have in shaping choice has been well established, yet relatively little is known about how decision makers experience and interpret such preselected options. Research suggests that individuals assume defaults represent a recommended course of action, yet the basis for this recommendation is unclear. Across two experimental studies, we explored consumer theories of default recommendations, examining spontaneous and experimentally manipulated perceptions of the basis of the default, and the impact on decision making across different contexts. Evidence across diverse populations and tasks shows that options were retained to a greater extent when represented as the default, consistent with classic default effects. Furthermore, a significant default effect emerged when the decision context was framed as complex. In line with research on social influence, defaults were most effective when they were presumed to reflect the most popular option (regardless of context). Interestingly, participants rated defaults as being more likely to represent the most popular option, regardless of decision context or default explanation provided to them. These findings highlight the importance of understanding the contexts in which default choices are relied upon and how those defaults are perceived by decision makers.