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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.

In 1989, the Brazilian city of Porto Alegre initiated a model of budget participation known internationally as "participatory budgeting." In this process of diagnosis, deliberation and decision-making, city residents directly decide how to allocate part of a public budget, typically at the level of municipal government. During the past two decades, hundreds of cities in Latin America, Europe, Asia, and Africa have adapted this model of participatory democracy to their own contexts. In this article, we explore one of the first Canadian experiments of participatory budgeting. In Guelph, Ontario, a civil society organization called the Neighbourhood Support Coalition uses participatory budgeting to allocate of public and private funds. We discuss the Canadian context for this experiment, as well as the history and evolution of participatory budgeting in Guelph. Based on four years of interviews, ethnographic observation, and primary and secondary literature, we identify several lessons learned through the Guelph process, as well as the conditions that have enabled its development and posed challenges for its success.

Evaluating and exploiting an opportunity is an iterative process, and one of the triggers for the re-evaluation is the feedback received from stakeholders. Most of the time, the feedback comes in the form of harsh comments, criticisms and rejections, which can cause shame. There is also a lack of studies on the impact of shame on the decision-making ability of the entrepreneur, which is addressed through this study.

The study uses an experimental design, which is considered the “gold standard” in establishing causality. By manipulating the emotions of 107 entrepreneurs and making them assess a hypothetical opportunity, the study finds conclusive evidence for the proposed hypotheses.

Using the appraisal tendency framework, the authors show that shame makes an entrepreneur assess an opportunity as lower in desirability and feasibility. Shame also makes an entrepreneur give more significant weight to feasibility (over desirability) when deciding on entrepreneurial action.

The study provides strong empirical evidence that shame is an important emotion and influences the decision-making ability of the entrepreneur. The study reveals that important stakeholders assessing entrepreneurs need to be careful about how they provide feedback. Since the emotion it can elicit has a bearing on the subsequent decisions made by the entrepreneur.

Although there has been increasing interest in the role of affect in work settings, the impact of moods and emotions in strategic decision making remains largely unexplored. In this essay, we address this shortcoming by proposing a conceptual model of strategic decision making that incorporates, at its core, the impact of affective states on cognitive processes that are integral to the decision outcome. The model is based on the principles of Affective Events Theory, which holds that environmental exigencies generate “affective events” that cause emotional reactions in organizational members which, in turn, determine members’ attitudes and behaviors. We extend this model to include the effect of the extra-organizational environment, and propose that emotions “infuse” those cognitive processes that are critical to the strategic decision making process. We conclude that strategic decision making in organizations is not always a controlled, deliberate, purely cognitive process, as it is often described. Rather, we contend that the moods and emotions that managers experience in response to positive and negative workplace events have a significant affect on strategic decision-making processes and ultimately, organizational-level outcomes. We discuss the implications of our model for theory, research, and practice.

Organizational behavior scholars have long recognized the importance of a variety of emotion-related phenomena in everyday work life. Indeed, after three decades, the span of research on emotions in the workplace encompasses a wide variety of affective variables such as emotional climate, emotional labor, emotion regulation, positive and negative affect, empathy, and more recently, specific emotions. Emotions operate in complex ways across multiple levels of analysis (i.e., within-person, between-person, interpersonal, group, and organizational) to exert influence on work behavior and outcomes, but their linkages to human resource management (HRM) policies and practices have not always been explicit or well understood. This chapter offers a review and integration of the bourgeoning research on discrete positive and negative emotions, offering insights about why these emotions are relevant to HRM policies and practices. We review some of the dominant theories that have emerged out of functionalist perspectives on emotions, connecting these to a strategic HRM framework. We then define and describe four discrete positive and negative emotions (fear, pride, guilt, and interest) highlighting how they relate to five HRM practices: (1) selection, (2) training/learning, (3) performance management, (4) incentives/rewards, and (5) employee voice. Following this, we discuss the emotion perception and regulation implications of these and other discrete emotions for leaders and HRM managers. We conclude with some challenges associated with understanding discrete emotions in organizations as well as some opportunities and future directions for improving our appreciation and understanding of the role of discrete emotional experiences in HRM.

Alvin Hansen and John Williams’ Fiscal Policy Seminar at Harvard University is widely regarded as a key mechanism for the spread of Keynesianism in the United States. An original and regular participant, Richard A. Musgrave was invited to prepare remarks for the fiftieth anniversary of the seminar in 1988. These were never published, though a copy was filed with Musgrave’s papers at Princeton University. Their reproduction here is important for several reasons. First, it is one of the last reminiscences of the original participants. Second, the remarks make an important contribution to our understanding of the Harvard School of macro-fiscal policy. Third, the remarks provide interesting insights into Musgrave’s views on national economic policymaking as well as the intersection between theory and practice. The reminiscence demonstrates the importance of the seminar in shifting Musgrave’s research focus and moving him to a more pragmatic approach to public finance.

This study examined the effectiveness of a 4.5-day service leadership program for students from Chinese universities using objective outcome evaluation. The participants were assessed before and after the program, with two post-test measurements (immediate assessment and assessment 12 days after the completion of class learning). At pretest and two posttest time points, the participants completed a questionnaire measuring positive youth development, service leadership qualities and beliefs, and life satisfaction. Results showed that students’ performance in both the immediate posttest and follow-up test was better than that in the pretest. Despite the limitations of the one-group pretest-posttest design, results suggest that the curricular-based service leadership program was effective to promote students’ positive youth development, service leadership qualities and beliefs, as well as life satisfaction, and the effectiveness maintained a short period after the class had ended. While the existing findings are promising, these findings should be replicated in the future.

Academic research has intensively analyzed the relationship between market concentration or market power and banking stability but provides ambiguous results, which are summarized under the concentration-stability/fragility view. We provide empirical evidence that the mixed results are due to the difficulty of identifying reliable variables to measure concentration and market power.

Using data from 3,943 banks operating in the European Union (EU)-15 between 2013 and 2020, we employ linear regression models on panel data. Banking market concentration is measured by the Herfindahl–Hirschman Index (HHI), and market power is estimated by the product-specific Lerner Indices for the loan and deposit market, respectively.

Our analysis reveals a significantly stability-decreasing impact of market concentration (HHI) and a significantly stability-increasing effect of market power (Lerner Indices). In addition, we provide evidence for a weak (or even absent) empirical relationship between the (non)structural measures, challenging the validity of the structure-conduct-performance (SCP) paradigm. Our baseline findings remain robust, especially when controlling for a likely reverse causality.

Our results suggest that the HHI may reflect other factors beyond market power that influence banking stability. Thus, banking supervisors and competition authorities should investigate market concentration and market power simultaneously while considering their joint impact on banking stability.

The purpose of this paper is to investigate the roles of online leadership in open collaborative innovation success by extending functional leadership theory in the context of open source projects.

This study uses negative binomial regression models to empirically test the proposed hypotheses with samples of blockchain open source projects on GitHub.

The results indicate that task-oriented leadership behaviors in forms of technical contributions have little influence on open collaborative innovation success; relation-oriented leadership behaviors embedded in internal social capital and external social capital contribute to open collaborative innovation success prominently. Furthermore, the joint effects of technical contributions, internal social capital and community commitment with openness orientation are positively significant on open collaborative innovation success, respectively.

For leaders and participants of open collaborative innovation projects, they should attach importance to both leadership behaviors and the joint effects with openness orientation so as to make informed decisions.

This study offers a new fine-grained framework of open collaborative innovation success by investigating specific dimensions of task-oriented and relation-orientated leadership behaviors, as well as their joint effects with openness orientation.