- The Oxford Handbook Of Organizational Decision Making
- List of Figures
- List of Tables
- Notes on Contributors
- Organizational Decision Making: Mapping Terrains on Different Planets
- Boom and Bust Behavior: On the Persistence of Strategic Decision Biases
- Information Overload Revisited
- Decision Making with Inaccurate, Unreliable Data
- Borgs in the Org? Organizational Decision Making and Technology
- Making the Decision to Monitor in the Workplace: Cybernetic Models and the Illusion of Control
- Culture and Decision Making
- Facing the Threat of Disaster: Decision Making When the Stakes are High
- The Fit Between Crisis Types and Management Attributes as a Determinant of Crisis Consequences
- Employing Adaptive Structuring as a Cognitive Decision Aid in High Reliability Organizations
- Expertise and Naturalistic Decision Making in Organizations: Mechanisms of Effective Decision Making
- Cognitively Skilled Organizational Decision Making: Making Sense of Deciding
- Linking Rationality, Politics, and Routines in Organizational Decision Making
- Superstitious Behavior as a Byproduct of Intelligent Adaptation
- On The Implications of Behavioral Decision Theory for Managerial Decision Making: Contributions and Challenges
- Intuition in Organizational Decision Making
- Affect and Information Processing
- Individual Differences And Decision Making
- Group Composition and Decision Making
- Making Sense of Real Options Reasoning: An Engine of Choice that Backfires?
- The Social Construction of Rationality in Organizational Decision Making
- When “Decision Outcomes” are not the Outcomes of Decisions
- What Lies Behind Organizational Façades and How Organizational Façades Lie: An Untold Story of Organizational Decision Making
- Teaching Decision Making
- Facilitating Serious Play
- Do Activities of Consultants and Management Scientists Affect Decision Making by Managers?
- Risk Communication in Organizations
- Structuring the Decision Process: An Evaluation of Methods
- Strategy Workshops and “Away Days” as Ritual
- Troubling Futures: Scenarios and Scenario Planning for Organizational Decision Making
- Subject Index
- Personal Name Index: Includes All Referenced Authors
Abstract and Keywords
This article examines the underlying cognitive and behavioral factors responsible for strategic decisions driving B&B dynamics, discusses the reasons firms do not learn to avoid boom and bust, and identifies tentative strategies for mitigating B&B (Boom and Bust) behavior. At the same time, it conjecturally concludes, there might be a positive collective side to B&B behavior fostering accumulation of knowledge and physical infrastructure, especially regarding new technological paradigms. The next section discusses a number of real world cases of B&B dynamics. The examples illustrate quite common dynamic behaviors and highlight the crucial role of capacity investment decisions in B&B outcomes. Subsequent sections review the findings from prior experimental research on B&B dynamics and discuss some key decision biases and heuristics that play important roles in B&B decision making. The final section outlines some tentative strategies for moderating B&B decision making. The conclusion highlights some of the collectively positive aspects of booms and busts.
Michael Shayne Gary is a senior lecturer of strategy and entrepreneurship at the Australian Graduate School of Management (AGSM). He is also Associate Director of the Accelerated Learning Laboratory at AGSM. His research focuses on the impact of managerial policies and decision making on performance in complex decision environments. At the firm level, he examines managerial policies adopted to pursue organizational strategies—such as corporate growth and diversification—and the impact on firm performance of implementing different policies. In another line of related research at the micro level, he investigates mental models, dynamic decision making, and learning, through behavioral experiments using management flight simulators. His research has been published in the Strategic Management Journal and other leading journals. He received his PhD at the London Business School.
Giovanni Dosi is Professor of Economics at the Scuola Superiore Sant'Anna in Pisa, Italy, where he also coordinates the Laboratory of Economics and Management (LEM). His major research areas include economics of innovation and technological change, industrial organization and industrial dynamics, theory of the firm and corporate governance, economic growth and development. Professor Dosi is Co‐Director of the task forces “Industrial Policy” and “Intellectual Property Rights” within the Initiative for Policy Dialogue, founded and chaired by Joseph Stiglitz, at Columbia University (New York); editor for Continental Europe of Industrial and Corporate Change; and Visiting Professor at the University of Manchester, UK. He is author and editor of several works in the areas of economics of innovation, industrial economics, evolutionary theory, and organizational studies. A selection of his works has been published in Innovation, Organization and Economic Dynamics: Selected Essays (Edward Elgar, 2000).
Dan Lovallo is Professor of Business Strategy at the University of Sydney Business School. His research focuses on the psychology of strategic decision making and has been published in the American Economic Review, Management Science, and the Harvard Business Review. He has previously held positions at Wharton, the Australian Graduate School of Management, and McKinsey & Co.
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