“I feel and think,therefore I am”: An Affect-Cognitive Theory of management decisions

I propose an Affect-Cognitive Theory to comprehensively understand how decisions occur in organizations. To this aim, I first review the assumptions of sensemaking and decision-making streams of research, especially the influence of bounded rationality, affective states and their relationships with cognition; then, I integrate them on the common basis of socially situated cognition. This new theory emphasizes the role of affective states in determining/being determined by cognition and its errors, pointing out decision makers’ affect as the result of multi-level adaptations to the physical and social environment. Management decisions are path dependent but not immutable; they, indeed, bank on the predominant feeling resulting from the modifying interactions and regulations of decision makers with their physical and social environment. Here, decision makers are proposed as “emotional cognizers” overcoming the thinking-feeling dichotomy that has often featured in the study of management decisions. This theory is beneficial for behavioral strategy, offering the needed assumptions to intertwine human cognition, emotions, and social behavior.     

MANAGING PRODUCT VARIETY: AN INTEGRATIVE REVIEW AND RESEARCH DIRECTIONS

Variety management has emerged as a crucial dimension of successful business practice. In this paper, I first provide a framework for managerial decisions about variety. Variety‐creation decisions determine the amount, type, and timing of end‐product variety, while variety‐implementation decisions focus on the design and operation of internal processes and a supply chain to support a firm's variety‐creation strategy. I organize variety‐related decisions into four key decision themes in variety creation: 1) dimensions of variety, 2) product architecture, 3) degree of customization, and 4) timing; and three key decision themes in variety implementation: 1) process capabilities, 2) points of variegation, and 3) day‐to‐day decisions. I describe each theme and review the relevant literature on each theme, with a focus on research that provides insight to problems faced in practice. Finally, I identify untapped avenues for future research that would be of value to the practicing manager, paying special attention to interdependencies among decision themes.     

Management Consulting: Towards an Integrative Framework of Knowledge,Identity, and Power

This paper reviews the past 28 years of scholarship on management consulting to synthesize the field and establish more broadly its contribution to management research. Through a systematic review of 219 articles, we identify three core conceptual themes – knowledge, identity, and power – that have dominated the literature to date. Through a thematic inductive analysis of a subsection of articles, we then investigate how these themes have been defined, used, and linked. This allows us to uncover and problematize the relationships between these themes. In making explicit underlying theoretical assumptions and relationships between knowledge, identity, and power, we induce a unique framework that can guide and support future studies, instigate metaparadigmatic dialogue, and thus help consolidate the field.     

International Business and National Culture: A Literature Review and Research Agenda

This literature review analyzes leading international business and management journals from 2000 to 2012 in order to explore the role of national culture in international business research. Through the analysis of the 265 selected articles, the study thematically maps the field and identifies research challenges and opportunities. It reflects on avenues for future research related to both thematic and methodological issues, among them: research focused on the impact of the home/host national culture on internationalization processes (as existing literature mainly focuses on cultural distance); the role to be played by new theoretical frameworks; and the need to consider cultural positions and cultural friction rather than traditional cultural distance when analyzing internationalization decisions.     

Unveiling the Canvas Ceiling: A Multidisciplinary Literature Review of Refugee Employment and Workforce Integration

Increasing levels of displacement and the need to integrate refugees in the workforce pose new challenges to organizations and societies. Extant research on refugee employment and workforce integration currently resides across various disconnected disciplines, posing a significant challenge for management scholars to contribute to timely and relevant solutions. In this paper, we endeavour to address this challenge by reviewing and synthesizing multidisciplinary literature on refugee employment and workforce integration. Using a relational framework, we organize our findings around three levels of analysis – institutional, organizational and individual – to outline the complexity of factors affecting refugees’ employment outcomes. Based on our analysis, we introduce and elaborate on the phenomenon of the canvas ceiling ? a systemic, multilevel barrier to refugee workforce integration and professional advancement. The primary contributions of this paper are twofold. First, we map and integrate the multidisciplinary findings on the challenges of refugee workforce integration. Second, we provide management scholarship with a future research agenda to address the knowledge gap identified in this review and advance practical developments in this domain.     

A new framework of firm-level innovation capability: A propensity–ability perspective

One of the critical topics in contemporary innovation management literature concerns what constitutes innovation capability (IC) at the firm level. There have been many attempts to conceptualize and operationalize this capability. Still, they either fail to discriminate the elements that characterize IC or to present consistent, comparable elements across distinct models or frameworks. This paper reports the results of a systematic approach to formulate a firm-level IC framework. To do so, the authors conducted an extensive systematic literature review, screened 19,589 papers, and analyzed in detail 186 documents that directly address empirical or theoretical elements of IC. The researchers cross-analyzed these papers for direct and indirect references to ICs (and related concepts, such as innovation orientation, innovation competence, and innovativeness) and generated thematic categories. We drew on a hybrid approach moving between inductive and deductive coding and theme development. We adopted an ex-ante theoretical perspective of the propensity/ability axis built upon the willingness–ability approach and the dynamic capability lens. The proposed synthetizing framework is coherent with Teece’s (2014) ordinary and dynamic capabilities. It comprises two sets of elements: on one hand, structural and contextual antecedents that characterize an organization's propensity toward innovation and, on the other hand, actions and resource-related capacities that act as causal mechanisms that, articulated within functions—sensing, seizing, and transforming—constitute the ability to generate innovation.     

Institutional voids and firms' resource commitment in emerging markets: A review and future research agenda

The impact of institutional environments on firms' strategic decisions has been examined in strategy and international business literature. Yet, the current state of knowledge about how institutional voids affect firms' resource commitment in emerging markets is equivocal. This paper reviews and develops an integrative framework that maps the key conceptualizations, theoretical frames, mechanisms, contingencies and outcomes in the institutional voids – resource commitment literature. Altogether, this paper structures institutional voids and resource commitment research into salient themes to help scholars scope the field and explore value-adding avenues to further our understanding of internationalization and resource commitment decisions in emerging markets.     

Deterministic cash flow management: State of the art and research directions

Cash flow management has attracted the increasing attention of both academicians and practitioners in recent time. There is increasing emphasis on cash management as a vital organizational function and evidence indicates that the role and responsibilities of cash managers are expanding beyond conventional boundaries. In an earlier article, Gregory presented an excellent review of a limited class of cash management models. This paper attempts to review the rather large body of deterministic cash flow models that were not reviewed by Gregory. The review places the models in proper perspective by identifying the underlying decision processes and points out the somewhat narrow focus of these models. A modified taxonomy of cash management decisions is suggested as a possible framework for future research. The paper also recognizes the tremendous growth in information and computer technology and its implications for normative modeling efforts in cash management.     

Heuristic Coordination of Decentralized Inventory Systems Using Induced Backorder Costs

In this paper, we investigate a one‐warehouse multiple‐retailer system, where the inventory control decisions are coordinated using a near optimal induced backorder cost, β*. All installations use continuous review installation‐stock (R, Q) policies. The analysis builds on an approximation model where the stochastic warehouse delays are replaced by their correct averages. The contributions include insights as to how β* is influenced by system parameters, and the determination of simple closed form β* estimates. The latter offering a practical means to achieve coordinated control of large size systems.     

The SAM Framework: Modeling the Effects of Management Factors on Human Behavior in Risk Analysis

Complex engineered systems, such as nuclear reactors and chemical plants, have the potential for catastrophic failure with disastrous consequences. In recent years, human and management factors have been recognized as frequent root causes of major failures in such systems. However, classical probabilistic risk analysis (PRA) techniques do not account for the underlying causes of these errors because they focus on the physical system and do not explicitly address the link between components' performance and organizational factors. This paper describes a general approach for addressing the human and management causes of system failure, called the SAM (System-Action-Management) framework. Beginning with a quantitative risk model of the physical system, SAM expands the scope of analysis to incorporate first the decisions and actions of individuals that affect the physical system. SAM then links management factors (incentives, training, policies and procedures, selection criteria, etc.) to those decisions and actions. The focus of this paper is on four quantitative models of action that describe this last relationship. These models address the formation of intentions for action and their execution as a function of the organizational environment. Intention formation is described by three alternative models: a rational model, a bounded rationality model, and a rule-based model. The execution of intentions is then modeled separately. These four models are designed to assess the probabilities of individual actions from the perspective of management, thus reflecting the uncertainties inherent to human behavior. The SAM framework is illustrated for a hypothetical case of hazardous materials transportation. This framework can be used as a tool to increase the safety and reliability of complex technical systems by modifying the organization, rather than, or in addition to, re-designing the physical system.     

Liminality in Management and Organization Studies: Process,Position and Place

This paper explores liminality, a concept receiving increased attention in management and organization studies and gaining prominence because of its capacity to capture the interstitial and temporary elements of organizing and work. The authors present a systematic review of the literature on liminality, covering 61 published papers, and undertake a critical analysis of how the concept of liminality has been used in prior research. This review reveals associations with three main themes: process; position; and place. For each theme, the authors identify the central research questions posed, while comparing individual and collective levels of analysis. During this process, the authors revisit several ideas central to the original, anthropological research on liminality, a perspective from which they suggest a rejuvenation of liminality research in management and organization studies. This paper argues for a greater focus on the liminal experience itself – especially its ritual and temporal dimensions – and for improving the comparative analysis of liminality following the three themes identified in this paper. The authors suggest that revising the agenda for liminality research along these lines could facilitate more informed responses to the challenges of an increasingly temporary and dynamic work life.     

The Corporate Management of Human Resources Under Conditions of Decentralization

This paper relates an aspect of recent corporate change – namely, decentralization – to the strategic management of human resources. Corporate attention to human resources in the decentralized organization is of particular interest because it represents a significant departure from decentralized norms, and signals a major revision of thinking about the role, status, and activities of the personnel function. At the centre of the argument is the notion of the internal labour market, a hitherto neglected theme in treatments of decentralization. The paper begins by outlining the circumstances that encouraged decentralization in the 1980s. It then sets out the influences on the operation of a corporate internal labour market, before identifying initiatives taken by some firms to offset the shortcomings of decentralization without overturning it. In the process, the shift in the centre of gravity of the corporate personnel function, away from industrial relations management and towards human resource development, has been reinforced.     

MANAGING PRODUCT RETURNS FOR REMANUFACTURING

Firms are often encouraged to offer environmentally friendly products as a demonstration of corporate citizenship. However, this may prove to be an unrealistic expectation since a rational firm will only engage in profitable ventures; those that increase shareholder wealth. We develop a framework for analyzing the profitability of reuse activities and show how the management of product returns influences operational requirements. We show that the acquisition of used products may be used as the control lever for the management and profitability of reuse activities. These activities, termed product acquisition management, affect several important business decisions. First, if a firm is to pursue reuse activities, these reuse activities must be value‐creating. Second, if a firm is to compete by offering remanufactured products, then we show how product returns management influences the overall profitability of such activities via a trial and error EVA approach. Third, we show how operational issues are strongly affected by the approach used to manage product returns. There is a need for future research specifying the mathematical relationship between acquisition price and the nominal quality of the returned product.     

Value of Formalization for Women Entrepreneurs in Developing Contexts: A Review and Research Agenda

Formalization is constantly being proposed as being of great benefit to business expansion and success. This claim, however, has not been previously tested through a review of the empirical evidence, especially in relation to the large number of women in the developing world that operate in the informal economy. Therefore, the aim of this review is to systematize the current empirical evidence on gender, the informal economy and formalization, using a narrative synthesis of 76 papers. The papers were analysed along three main analytical themes – identity, institutions, and constraints and preferences – highlighting their conceptualization in studies of different academic disciplines – economics, sociology, entrepreneurship and development. The review calls for more accurate accounts of formalization decisions by widening the lens through which formalization decisions are conceptualized. These should take account of the rich contextual and temporal dimensions central to these decisions, and recognize that gender alone is not a sufficient factor in explaining women's choices in the informal economy. The review also highlights limitations in relation to the limited conceptual and empirical evidence on which development priorities such as formalization are set. The authors propose a research agenda centred on the need for conceptual frameworks that are more sensitive towards the multidimensional contexts of women's choices.     

The Strategic Management of Innovation: A Systematic Review and Paths for Future Research

Strategic management scholars have long emphasized the importance of innovation for a firm's competitive advantage and performance. However, the current state of knowledge about the strategic management of innovation is characterized by conflicting theoretical predictions, persisting knowledge gaps and theoretical inconsistencies. Adopting a ‘systematic’ approach to reviewing the literature, this paper combines different quantitative methods – co‐word analysis, cluster analysis and frequency analysis – to review 342 articles on the strategic management of innovation published in seven journals from 1992 to 2010. On the basis of these analyses, suggestions are developed for future research which could help to promote future theory development and provide relevant material for policy decisions that managers and executives have to make when they manage innovation.     

Research in Management Control: An Overview of its Development

This paper builds on a series of earlier reviews of the management control literature (Giglioni and Bedeian, 1974; Hofstede, 1968; Merchant and Simons, 1986; Parker, 1986) and considers the development of the management control literature in the context of organizational theories. Early themes which have provided the roots for the development of the subject area are explored as is more recent work which has evolved both as a continuation and a reaction against them, with Scott's (1981) framework being used to organize this literature. It is argued that one of the unintended consequences of the influential work of Robert Anthony (1965) has been a restriction of the subject to an accounting-based framework and that this focus needs to be broadened. The review points to the potential of the subject as a integrating theme for the practice and research of management and some themes for future research are suggested.     

A Decisional Framework of Offshoring: Integrating Insights from 25 Years of Research to Provide Direction for Future*

Mirroring the growing trend for firms to support their operations by locating activities abroad, research on the practice of offshoring has increased considerably in recent years. However, despite the mounting research, understanding of the key factors influencing decision‐making for offshoring remains surprisingly limited due to fragmentation. In this study, we synthesize and integrate insights from different research domains in order to develop a comprehensive decisional framework for key offshoring decisions. The integrative decisional framework is based on a systematic review of offshoring research published in the most influential management and business journals in the past 25 years. In addition to providing a snapshot of the state of research on decision‐making for offshoring, this study aims to stimulate future research by identifying promising research opportunities. In particular, we propose that future research should use alternative theories to incorporate overlooked aspects of decision‐making, integrate different theories to account for the interdependencies between decisions, and adopt a portfolio perspective that considers each decision as part of an overall offshoring strategy.     

Collective Intuition: Implications for Improved Decision Making and Organizational Learning

This article establishes the foundation for research on collective intuition through a study of decision making and organizational learning processes in police senior management teams. We conceptualize collective intuition as independently formed judgement based on domain‐specific knowledge, experience and cognitive ability, shared and interpreted collectively. We contribute to intuition research, which has tended to focus its attention at the individual level, by studying intuition collectively in team settings. From a dual‐process perspective, we investigate how expert intuition and deliberation affect decision making and learning at various levels of the organization. Furthermore, we contribute to organizational learning research by offering an empirically derived elaboration of the foundational 4I framework, identifying additional ‘feed‐forward’ and ‘feedback’ loop processes, and thereby providing a more complete account of this organizational learning model. Bridging a variety of relevant but previously unconnected literatures via our focal concept of collective intuition, our research provides a foundation for future studies of this vitally important but under‐researched organizational phenomenon. We offer theoretical and practical implications whereby expert intuitions can be developed and leveraged collectively as valuable sources of organizational knowledge and learning, and contribute to improved decision making in organizations.     

The edge of reason: A thematic analysis of how professional financial traders understand analytical decision making

This study uses thematic analysis to investigate accounts of Type 2 (analytical, rational and reflective) decision-making processes in professional financial traders working in the City of London. Previous studies have focused on using qualitative methods to examine trader understanding of Type 1 decision-making (intuition and ‘gut feeling’). No published study has investigated how traders view Type 2 decisions. Findings from semi-structured interviews with 14 traders revealed two overarching themes derived from four subthemes. The first overarching theme (‘Knowledge gap’) demonstrated that traders do not find their analytical decision-making processes as accessible as dual-process theory predicts. In particular, traders failed to label processes such as reading research or evaluating data as analytical. In contrast, they viewed Type 2 decisions in a ‘saviour’ role where these processes offered traders psychological or emotional support during loss making periods. The implications of these findings are discussed with respect to the decision-training of traders, their management, and practice.     

The Impact of Alliance Management Capabilities on Alliance Attributes and Performance: A Literature Review

The literature on alliances has identified a variety of inter‐firm antecedents of performance, including information and knowledge sharing between partners, shared partner understanding, and a focus on collective objectives. Recent studies have focused on alliance management capabilities (AMC) – firms' abilities to capture, share, store and apply alliance management knowledge – as an important antecedent of performance. This paper reviews 90 studies on AMC and makes two important contributions to the literature. First, the review provides an overview of and classification scheme for the different types of AMC to better organise the diverse empirical findings that have been presented in the literature. The novel classification distinguishes between general and partner‐specific AMC and between AMC stored within the firm and within the alliance. Second, consistent with the dynamic capabilities perspective, this paper offers a more detailed understanding of why AMC improve performance, by highlighting the intermediate impact of AMC on alliance attributes. In particular, the review demonstrates how the different categories of AMC influence alliances in terms of information and knowledge‐sharing between partners, shared partner understanding and the pursuit of collective goals. The review also demonstrates that these attributes improve performance. The authors note promising avenues for future empirical research that involve combining the classification scheme with research on the impact of AMC on alliance attributes and performance.