Neurofinance and Strategic Agility: A Study on Executive Cognitive Bias

Yazid Gharzah S. Amala () and Mursalim Nohong
Additional contact information
Yazid Gharzah S. Amala: Hasanuddin University
Mursalim Nohong: Hasanuddin University

A chapter in Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025), 2026, pp 675-685 from Springer

Abstract: Abstract This study examines the crucial role of neurofinance-based executive cognition in enhancing the quality of strategic decision-making in dynamic corporate environments. Grounded in the intersection of contemporary neurofinance and behavioral strategy literature, this study deeply explores the influence of neurocognitive bias on strategic agility. Furthermore, this research positions executive rationality as a key mediating variable to understand the mechanism of this relationship. To achieve this objective, a quantitative approach was applied through a structured survey involving 285 mid-to-senior-level managers from various industrial sectors in Indonesia. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) to validate the research model. The statistical analysis results show that neurocognitive bias has a significant negative influence on strategic agility. Interestingly, executive rationality was found to partially mediate this relationship. This indicates that while rationality can reduce the adverse impact of bias, its influence cannot be entirely eliminated. These findings make a significant contribution by providing empirical support for the integration of neurofinance insights into strategic management frameworks. Practically, the study recommends interventions such as cognitive awareness training for leaders and the development of a structured decision architecture to mitigate bias and strengthen organizational agility.

Keywords: Neurofinance; Strategic Agility; Executive Rationality; Cognitive Bias; PLS-SEM; Strategic Management (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6239-709-5_47

Ordering information: This item can be ordered from
http://www.springer.com/9789462397095

DOI: 10.2991/978-94-6239-709-5_47

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().