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A large body of research has analyzed individual psychological characteristics as antecedents of strategic decision-making. However, this research has mainly focused on trait-based characteristics that explain impaired strategic decision outcomes. Recently, PsyCap has been proposed as an alternative driver of strategic decision outcomes that, in contrast to other drivers, can be influenced by management.

Drawing on research on psychological capital (PsyCap), a psychological construct conceptualized as a state-like individual strength that is malleable, the authors argue that PsyCap exerts an inverted curvilinear effect on strategic decision outcomes. The authors use a computerized strategic decision simulation involving 102 managers to empirically test our hypotheses.

The authors show that PsyCap improves strategic decision outcomes up to an inflection point, after which it negatively affects those outcomes. The authors also show that this effect is mediated by heuristic information processing.

For the empirical study the authors relied on a sample of 102 practicing managers from the financial services industry in Germany.

PsyCap has been shown to be malleable through, for instance, micro-interventions and dedicated web-based trainings. Therefore, depending on managers' PsyCap levels, either further increases in PsyCap or a regulation of this characteristic might be appropriate in order to optimize strategic decision outcomes.

As a state-like individual strength that is malleable, PsyCap might serve as a management characteristic that is particularly important in challenging situations such as the COVID-19 pandemic.

This paper contributes to research on strategic decision making by introducing PsyCap as an important antecedent of strategic decision outcomes that – in contrast to other individual characteristics – is state-like and, hence, malleable.

This paper highlights that the strategic use of design, a competitive pattern typically associated with creative industries, those creating and trading meanings, also characterizes industries that produce functional or utilitarian goods not typically considered creative. The paper explores the origins of this phenomenon in the context of three industry settings: cars, speciality coffee and personal computers. The analysis theorizes three distinct strategic paths that explain how design may become an institutionalized aspect of competition in industries that are not creative. We explain how firms link their products to the identities of their users, how design is linked to stakeholders' emotions and visceral reactions to products and how intermediaries are relevant to enhancing attention to design. Illuminating these strategic paths allows harnessing some of the well-established understandings about competition in creative industries towards understanding competition in noncreative industries.

The purpose of this paper is to provide insights to the impact of acquisition experience from prior acquisitions on the performance of subsequent ones. The authors base the analysis on the concept of mindfulness which has recently gained increasing attention in organizational learning theory. The aim is to extend prior research on mindfulness in organizational learning by empirically addressing how mindfulness in knowledge transfer affects task performance in the context of a rare organizational event, i.e. an acquisition, and how it is moderated by the conditions surrounding that event.

Employing a path-related approach, the authors analyzed large acquisitions of multiple US acquirers in a sequence to be able to clearly identify feedback from preceding acquisitions on subsequent ones. The authors adopt individual acquisition events as the unit of analysis to demonstrate the effect of mindfulness on task performance, and follow the widely used approach of measuring acquisition performance by abnormal stock market returns around the time of an acquisition announcement.

The analysis reveals an alternating relationship between an acquirer's acquisition experience and its acquisition performance. This relationship is positively moderated by an acquirer's cash reserves and by the temporal spacing of its acquisitions, but negatively moderated by an acquirer's market-to-book value.

Path-related approaches are rarely used in the mergers & acquisitions literature. The paper is based on the concept of mindfulness and identifies an up to now unrecognized pattern in the performance of multiple acquisitions.

People experiencing homelessness often have complex needs requiring a range of support. These may include health problems (physical illness, mental health and/or substance misuse) as well as social, financial and housing needs. Addressing these issues requires a high degree of coordination amongst services. It is, thus, an example of a wicked policy issue. The purpose of this paper is to examine the challenge of integrating care in this context using evidence from an evaluation of English hospital discharge services for people experiencing homelessness.

The paper undertakes secondary analysis of qualitative data from a mixed methods evaluation of hospital discharge schemes and uses an established framework for understanding integrated care, the Rainbow Model of Integrated Care (RMIC), to help examine the complexities of integration in this area.

Supporting people experiencing homelessness to have a good discharge from hospital was confirmed as a wicked policy issue. The RMIC provided a strong framework for exploring the concept of integration, demonstrating how intertwined the elements of the framework are and, hence, that solutions need to be holistically organised across the RMIC. Limitations to integration were also highlighted, such as shortages of suitable accommodation and the impacts of policies in aligned areas of the welfare state.

The data for this secondary analysis were not specifically focussed on integration which meant the themes in the RMIC could not be explored directly nor in as much depth. However, important issues raised in the data directly related to integration of support, and the RMIC emerged as a helpful organising framework for understanding integration in this wicked policy context.

Integration is happening in services directly concerned with the discharge from hospital of people experiencing homelessness. Key challenges to this integration are reported in terms of the RMIC, which would be a helpful framework for planning better integrated care for this area of practice.

Addressing homelessness not only requires careful planning of integration of services at specific pathway points, such as hospital discharge, but also integration across wider systems. A complex set of challenges are discussed to help with planning the better integration desired, and the RMIC was seen as a helpful framework for thinking about key issues and their interactions.

This paper examines an application of integrated care knowledge to a key complex, or wicked policy issue.

Advisors play a key role in the mergers and acquisitions (M&A) process, but research to date has rarely focused on how their influence impacts these transactions. The present chapter takes stock of the present literature on M&A advisors from finance, economics, and management in order to integrate the currently diverging research traditions into a coherent framework. The current research has focused on proximal acquisition outcomes, like acquisition premiums or expected performance in the form of cumulative abnormal returns, but there is limited theoretical understanding of the advisors impact on the post-acquisition period. Moreover, while the role of advisor reputation has been highlighted on both the management and finance literatures as an important aspect of the role advisors play in the M&A process, there seems to be much to be addressed. Furthermore, and perhaps most importantly, the nature of the relationship between the advisor and the acquirer or target presents challenges to researchers where the advisor acts both as a provider of expertise in the M&A process, but may be simply acting on their own best interest. The new framework that the authors present here provides management scholars with a roadmap into a cohesive research agenda that can inform our theoretical understanding of the role of M&A advisors.

This meta-analysis reviews and summarizes the results of 34 studies to investigate the relationship between overconfidence and financial decision-making.

A correlation meta-analysis was conducted with three moderators of the relationship between overconfidence and financial decision-making examined: the type of overconfidence construct, the type of overconfidence measuring method and the type of financial decision-making.

It was found that the effect of overconfidence on financial decision-making was significant, but the magnitude of this effect was low. Additionally, indirect measures of overconfidence showed to have stronger effect than direct measures, and the overconfidence was mostly related to investment, followed by trading and innovativeness.

This was the first attempt to meta-analytically integrate results concerning the relationship between overconfidence and financial decision-making. Although overconfidence is described as a keystone for understanding financial decision-making, it was shown that it has rather limited effect on individuals' financial decisions. The findings suggest that indirect measures increase the overall effect and may cause the overvaluation of overconfidence in literature. The results call for more rigorous and consistent conceptualization of overconfidence in behavioral research.

Haptic interfaces enable person‐machine communication through touch, and most commonly, in response to user movements. We comment on a distinct property of haptic interfaces, that of providing for simultaneous information exchange between a user and a machine. We also comment on the fact that, like other kinds of displays, they can take advantage of both the strengths and the limitations of human perception. The paper then proceeds with a description of the components and the modus operandi of haptic interfaces, followed by a list of current and prospective applications and a discussion of a cross‐section of current device designs.

This article looks at how capital equipment innovations are adopted. The reception of innovations by adoptors and non‐adoptors provides “profiles” of the characteristics of innovations, which can highlight good selling features and identify markets.

This paper examines the use of signaling theory in the M&A context. We review some of the most important developments in applications and extensions of this theory to the realm of M&A, indicating how this theory has been used to explain many M&A decisions and outcomes and has offered fresh perspectives in the mature literature on acquisitions. For example, we show how signaling theory provides a new view of the determinants of acquisition premiums, and it can contribute to an improved understanding of firms’ search for acquisition opportunities as well as target selection. We also provide a critique of existing research to identify gaps in understanding on the roles played by signals. For instance, we discuss how signals can create contracting problems during M&A negotiations, how the value of signals might vary across deals, and how bidder heterogeneity and bidders’ own signals matter for certain transactions. Finally, in addition to taking stock of this stream of research, we identify some of the most important areas that deserve research attention. Signaling theory can contribute to an improved understanding of acquisition performance outcomes, and signals need to be investigated along with other solutions to enhance M&A deal making and execution. We identify new research methods that would help to advance signaling theory in the acquisitions literature.

The purpose of this paper is to provide an understanding of how backward intelligence and forward-looking intelligence interact and impact decision making in the context of acquisitions. Past experiences provide essential information used for decision making, however, the ex ante nature of premiums, which require forward-looking intelligence, can change how experience is utilized.

The authors utilize a fixed effects model to examine acquisitions conducted by US public firms during the period of 1993–2015.

The authors find that as past acquisition returns increase, acquirers are likely to adopt a backward-looking perspective of past performance that leads to higher premiums, as opposed to a forward-looking perspective of consequences. The relationship between past performance and premium is moderated by differences in the target's industry and the target's slack levels relative to the acquirer. The study findings suggest that forward-looking intelligence can alter attention and ultimately behavior based on backward-looking intelligence. By focusing on how these two contrasting perspectives interact, our findings extend research on the tension between backward-looking and forward-looking logics of decision making.

Unlike extant literature of acquisition premiums that have mainly focused on the valence and magnitude of experience, the authors focus on how backward-looking decision behavior changes when the firm's expectations of the future are incorporated. The authors empirically demonstrate how a lower acquisition premium is achieved when the decision of how much to pay is an interaction of the past and the future.

The purpose of this paper is to develop and test theoretical propositions explaining why and under what circumstances highly self-efficacious employees experience victimization at work and how task interdependence leads to the situation that employee victimization emerges.

To test hypotheses, the authors collected the data from four organizations, which are private company, public enterprise, medical institution and government office in Gyungbuk province, South Korea. The final sample for analyses was 209 employees.

Contrary to the prediction, high self-efficacy did not show a statistically significant relationship with victimization. However, task interdependence is related to victimization and functions as an important situational contributor to exacerbate highly self-efficacious employees’ victimization.

The findings have research implications by exploring victimization of the employees with high self-efficacy, which is an underdeveloped area in the victimization literature and showing that task interdependence is the critical factor to trigger and aggravate employee victimization. Despite these implications, this study should be evaluated in light of several limitations such as the data from single source for all variables and the use of cross-sectional data.

Managers need to be aware that highly self-efficacious employees can be vulnerable to victimization at work, where there is high task interdependence. The evidence suggests that managers may take safeguards to deter employee victimization, when tasks are closely related among members.

This paper contributes to expand the understanding of employee victimization by examining the roles of self-efficacy and task interdependence to crystalize antecedents and boundary conditions of victimization at workplace.

One problem in studying quality circles (QCs) is the shortage of objective measures of success. Another is the fact that many previous studies have been longitudinal but based on only one site. Presents results of a large sample of over 5,000 QCs which capture some longitudinal aspects of quality circle development and relate them to several objective and subjective measures of success. Contrary to previous small, longitudinal studies which have been reported in the literature, this study found no evidence at the level of organizational QC programmes to support the role of top and middle management in QC success, except for the need for management representation on steering committees. Data suggest that organizations with TQM have more successful QC programmes and (weakly) that older QC programmes are more successful.

Purpose: The emotions that accompany failure, in and of organizations, and their consequences have been researched in multiple domains of management, but comparative approaches have seldom been attempted. The failure of organizations to survive has been a common occurrence over centuries, particularly in the modern era of start-ups, innovation, and political, economic, and environmental turbulence. With the advent of the COVID-19 pandemic, failure at many levels of society, including the organizational and individual, has increased significantly and produced even more intense emotions. Study Design/Methodology/Approach: For this conceptual chapter, literature from many disciplines was consulted on failure in organizations, and the emotions it elicit, including studies on the process of failure as well as its outcomes. Findings: Failing and failure are likely to evoke negative emotions, with negative consequences for the actor. However, positive emotions can also occur, and a matrix of emotional valence and consequences presents an intriguing set of possibilities. The dimensions of emotions (valence, intensity, duration, and frequency) interact with a wide range of contributing factors (salience, personality, identity, emotional intelligence, emotional regulation, prior experience of failure, and context) in producing the emotions of failure and their consequences. Originality/Value: This chapter contributes to the literature by explicating the types of emotions that emanate during and after failure across many domains of management research, their dimensions and contributing factors, and the consequences for the individual actor. The model of the emotions of failure that is presented here assembles a wider variety of elements than prior research has offered. We indicate avenues for further research as we approach an era of even more demanding challenges.

Despite the number of articles over the past two decades mentioning the importance of the negotiation stage in the M&A process, there has been very limited theoretical development and empirical analysis emphasizing multiple factors critical to M&A negotiations. The purpose of our paper is twofold. First, we provide a review of the extant academic literature on negotiations in the M&A process. Then, drawing on the M&A process perspective and classical negotiation theory, we develop a framework to highlight major components of the M&A negotiation stage examined in existing studies and offer key insights of how this underdeveloped area of study is ripe with opportunities for future theoretical development and empirical research.

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.

The search for methods of improving the efficiency and competitiveness of manufacturing industry in the UK has been intensified during the present recession and has led many managers to look to Japan as a model for economic prosperity. A prominent feature of the Japanese model is a form of employee involvement known in the West as Quality Circles. These are small groups who meet on a regular basis to select, analyse and solve problems in their work area. As they are obviously experts at the jobs they do, their knowledge and expertise can greatly enhance the running of their departments and they can at first hand suggest improvements to the quality of their working life. Hutchins claims that in Japan, quality circles are responsible for around 16 per cent of the profits in their manufacturing companies.

This chapter looks at the role the investment banks play in the acquisition process. The existing literature presents a conflicting account of the banks' advice on the performance of the acquiring firm. By distinguishing between two different types of investment banks – bulge bracket and boutique firms – the chapter shows that the acquirer's performance may be a function of the interaction between the acquirer's choice of the bank's type and the acquirer's experience. More specifically, it appears that while the inexperienced acquirers can benefit from the deeper acquisition expertise of the boutique banks, the experienced acquirers can benefit more from the broader information search capabilities of the bulge bracket banks.

This chapter focuses on how corporate entrepreneurs seize opportunities and deal with threats through resource acquisition, control, and use. When corporate entrepreneurs fail to gain control of preferred resources they must rely on their ability to optimize their use of resources on hand in order to avoid the typical limitations inherent in a constrained set of resources. However, control of resources, whether existing or supplementary, by itself is an insufficient basis for influencing performance. Performance also depends on an organization’s capacity to deploy resources in combination with strategically important organizational processes to affect a desired end. The way in which corporate entrepreneurs utilize their resources is likely to have a more significant effect on performance than is merely having control of them. The current research aims to elaborate on how corporate entrepreneurs can become more resourceful by using a vacillation approach to resource acquisition and utilization. In this context, vacillation is movement between exploration and exploitation, or knowledge acquisition and knowledge integration from a knowledge management perspective. Vacillation is distinguished from the “balance” hypothesis prevalent in the organizational ambidexterity literature. A balance hypothesis states that both exploration and exploitation may be pursued simultaneously either by creating structural or contextual organizational ambidexterity. Here, we explain how vacillation enables an organization’s corporate entrepreneurship posture to lead to improved performance. In this chapter, we first describe the extant literature and construct relationships between corporate entrepreneurship posture, organizational resource level, vacillation, and organizational performance. We then analyze the learning processes associated with vacillation and discuss the research and managerial implications associated with the proposed relationships.

This is the second of a series of three articles dealing with Quality Circle failures. The concept of organisational readiness and implementation issues were discussed in Part I, while in Part II we focus on operational issues and the problem of maintaining the long‐term viability of quality circles.