Subodh Kulkarni, Matteo Cristofaro and Nagarajan Ramamoorthy
How can managers reduce information asymmetry in dyadic manager-external stakeholder relationships in a complex and evolving environment? Addressing this question has significant…
Abstract
Purpose
How can managers reduce information asymmetry in dyadic manager-external stakeholder relationships in a complex and evolving environment? Addressing this question has significant implications for firm survival, growth, and competitive advantage.
Design/methodology/approach
We have adopted a multiparadigm approach to theory building, known as metatriangulation. We integrate the dynamic capabilities, sensemaking, and evolutionary theory literatures to theorize how managers can relate to stakeholders in a complex and evolving environment.
Findings
We propose, via a conceptual framework and three propositions, “evolutionary sensemaking” as the managerial metacognitive dynamic capability that helps managers hone their understanding based on the evolutionary changes in the stakeholder’s interpretations of information quality preferences. The framework unfolds across three evolutionary stages: sensing preferences' variation of the stakeholder, seizing preferences, and transforming for complexity alignment and retention. The propositions focus on managing complexity in stakeholder information quality preference, employing cognitive capabilities to simplify, interpret, and align interpretations for effective information asymmetry reduction.
Practical implications
To develop the metacognitive dynamic capability of evolutionary sensemaking, managers need to train for and foster the underlying complex cognitive capabilities by enhancing their (1) perception and attention skills, (2) problem-solving and reasoning skills, and (3) language, communication, and social cognition skills, focusing specifically on reducing the complexity embedded in stakeholder cognition and diverse stakeholder preferences for information quality. Contrary to the current advice to “keep things simple” and provide “more” information to the stakeholders for opportunism reduction, trust-building, and superior governance, our framework suggests that managers hone their cognitive capabilities by learning to deal with the underlying complexity.
Originality/value
The proposed framework and propositions address research gaps in reducing information asymmetry. It enriches the dynamic capabilities literature by recognizing complexity (as opposed to opportunism) as an alternative source of information asymmetry, which needs to be addressed in this stream of research. It extends the sensemaking literature by identifying the complexity sources – i.e. stakeholder preferences for diverse information quality attributes and the associated cognitive preference interpretation processes. The article enhances evolutionary theory by delving into microprocesses related to information asymmetry reduction, which the existing literature does not thoroughly investigate.
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Bradley J. Olson, Satyanarayana Parayitam, Matteo Cristofaro, Yongjian Bao and Wenlong Yuan
This paper elucidates the role of anger in error management (EM) and organizational learning behaviors. The study explores how anger can catalyze learning, emphasizing its…
Abstract
Purpose
This paper elucidates the role of anger in error management (EM) and organizational learning behaviors. The study explores how anger can catalyze learning, emphasizing its strategic implications.
Design/methodology/approach
A double-layered moderated-mediated model was developed and tested using data from 744 Chinese CEOs. The psychometric properties of the survey instrument were rigorously examined through structural equation modeling, and hypotheses were tested using Hayes's PROCESS macros.
Findings
The findings reveal that anger is a precursor for recognizing the value of significant errors, leading to a positive association with learning behavior among top management team members. Additionally, the study uncovers a triple interaction effect of anger, EM culture and supply chain disruptions on the value of learning from errors. Extensive experience and positive grieving strengthen the relationship between recognizing value from errors and learning behavior.
Originality/value
This study uniquely integrates affect-cognitive theory and organizational learning theory, examining anger in EM and learning. The authors provide empirical evidence that anger can drive error value recognition and learning. The authors incorporate a more fine-grained approach to leadership when including executive anger as a trigger to learning behavior. Factors like experience and positive grieving are explored, deepening the understanding of emotions in learning. The authors consider both negative and positive emotions to contribute to the complexity of organizational learning.
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Matteo Cristofaro, Christopher P. Neck, Pier Luigi Giardino and Christopher B. Neck
This study aims to investigate the relationship between shared leadership (SL) and decision quality, utilizing shared leadership theory (SLT) and behavioral decision theory (BDT)…
Abstract
Purpose
This study aims to investigate the relationship between shared leadership (SL) and decision quality, utilizing shared leadership theory (SLT) and behavioral decision theory (BDT). The authors will explore the mediating role of “decision comprehensiveness” in the SL–decision quality linkage. Additionally, the authors will examine how individual “self-leadership” and “debate” among team members moderate the relationship between SL and decision comprehensiveness.
Design/methodology/approach
The authors tested the hypothesized moderated mediation model using a sample of 506 professionals employed in 112 research and development (R&D) teams, along with their direct managers from large Italian firms. To examine the relationships, the authors employed confirmatory factor analyses and path analyses. In order to address endogeneity concerns, the authors incorporated an instrumental variable, namely delegation, into the analysis.
Findings
SL positively influences decision quality, mediated by decision comprehensiveness, where teams include comprehensive information in decision-making. The level of debate among team members positively moderates the SL–decision comprehensiveness relationship. High levels of self-leadership can harm SL by reducing decision comprehensiveness, indicating a downside. However, low or moderate levels of self-leadership do not harm decision comprehensiveness and can even benefit SL.
Originality/value
This is the first work to investigate the relationship between SL and decision quality, shedding light on the mechanisms underlying this association. By integrating SLT and BDT, the authors provide insights into how managers can make higher-quality decisions within self-leading teams. Moreover, this research makes a distinct contribution to the field of self-leadership by delineating its boundaries and identifying a potentially negative aspect within the self-influence process.
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Matteo Cristofaro, Federico Giannetti and Gianpaolo Abatecola
Unicorn companies, such as Facebook, Uber, and Airbnb, significantly impact our economies. This happens although they had a dramatic initial start – at least in terms of financial…
Abstract
Purpose
Unicorn companies, such as Facebook, Uber, and Airbnb, significantly impact our economies. This happens although they had a dramatic initial start – at least in terms of financial performance – that would have let any other “conventional” business close. In other words, Unicorns challenge the start-ups’ problems traditionally associated with early failure (liability of newness). This paper aims to understand what helps Unicorn firms initially survive despite huge losses.
Design/methodology/approach
By adopting a behavioral lens, this historical case study article focuses on key strategic decisions regarding the famous social media Unicorn Snapchat from 2011 to 2022. The case combines secondary data and a thematic analysis of Snapchat founders’ and investors’ interviews/comments to identify the behavioral antecedents leading to Snapchat’s honeymoon.
Findings
Snapchat network effect triggered cognitive biases of Snapchat founders’ and investors’ decisions, leading them to provide initial assets (i.e. beliefs/goodwill, trust, financial resources and psychological commitment) to the nascent Unicorn. Therefore, the network effect and biases resulted in significant antecedents for Snapchat’s honeymoon.
Originality/value
The authors propose a general, theoretical framework advancing the possible impact of biases on Unicorns’ initial survival. The authors argue that some biases of the Unicorns’ founders and investors can positively support a honeymoon period for these new ventures. This is one of the first case studies drawing on a behavioral approach in general and on biases in particular to investigate the liability of newness in the Unicorns’ context.
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Matteo Cristofaro, Alexandre Anatolievich Bachkirov, Nicholas Burton, Oana Fodor, Christian Julmi and Francesca Loia
Matteo Cristofaro, Pier Luigi Giardino, Riccardo Camilli and Ivo Hristov
This article aims to trace the historical development of the behavioral strategy (BS) field, which implements psychology in strategic management. Mainly, it provides a contextual…
Abstract
Purpose
This article aims to trace the historical development of the behavioral strategy (BS) field, which implements psychology in strategic management. Mainly, it provides a contextual understanding of how this stream of research has historically evolved and what relevant future trajectories are. This work is part of the “over half a century of Management Decision” celebrative and informal Journal section.
Design/methodology/approach
We consider BS literature produced in management decision (MD), the oldest and longest-running scholarly publication in management, as a proxy for the evolution of management thought. Through a Systematic Literature Review (SLR) process, we collected – via the MD website and Scopus – a sample of 97 BS articles published in MD from its foundation (1967) until today (2024). Regarding the analysis, we adopted a Reflexive Thematic Analysis approach to synthesize the main BS topics, then read from a historical perspective regarding three “eras” over which the literature developed. Selected international literature outside the Journal’s boundaries was considered to complement this historical analysis.
Findings
Historically, within the BS field, the interest passed from the rules to rationally govern strategic decision-making processes, to studying what causes cognitive errors, to understanding how to avoid biases and to being prepared for dramatic changes. The article also identifies six future research trajectories, namely “positive heuristics,” “context-embedded mental processes,” “non-conventional thinking,” “cognitive evolutionary triggers,” “debiasing strategies” and “behavioral theories for new strategic challenges” that future research could investigate.
Research limitations/implications
The limitation of the study lies in its exclusive focus on MD for investigating the historical evolution of BS, thereby overlooking critical contributions from other journals. Therefore, MD’s editorial preferences have influenced results. A comprehensive SLR on the BS field is still needed, requiring broader journal coverage to mitigate selection biases and enhance field appraisal.
Originality/value
This contribution is the first to offer a historical evolutionary view of the BS field, complementing the few other reviews on this stream of research. This fills a gap in the study of the evolution of management thought.
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Luna Leoni, Matteo Cristofaro, Koteshwar Chirumalla and Stephen Dobson
Pier Luigi Giardino, Matteo Cristofaro and Cristina Marullo
How can joint open innovation (OI) projects between small and medium-sized enterprises (SMEs) and large companies (LCs) be effectively managed? This study aims to try to answer…
Abstract
Purpose
How can joint open innovation (OI) projects between small and medium-sized enterprises (SMEs) and large companies (LCs) be effectively managed? This study aims to try to answer this research question with a focus on the critical success factors (CSFs) of such cooperation.
Design/methodology/approach
Based on 40 semi-structured interviews with Italian SMEs and LCs engaged in various industries, 20 open OI projects involving SMEs and LCs are investigated using a reflexive thematic analysis, a methodology involving both deductive and inductive approaches.
Findings
Fifteen CSFs grouped into seven categories emerge from the analysis of joint OI projects between SMEs and LCs. Among them, shared leadership, dynamic decision-making and priority setting emerge as essential elements at the basis of the proposed SMEs–LCs cooperation in joint OI projects that were not sufficiently addressed by prior studies.
Originality/value
To the best of the authors’ knowledge, this study is the first to provide an evidence-based framework for managing joint OI projects between SMEs and LCs. Relatedly, this study links the practices and most recurring CSFs that facilitate such cooperation.
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Matteo Cristofaro, Nicola Cucari, Sibel Yamak, Patricia Gabaldon Quiñones, Remmer Sassen and Yongjian (Y.J.) Bao