Understanding Cognitive Biases in Strategic Decisions for Value Creation and Capture

Mariusz Bratnicki () and Wojciech Dyduch ()
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Mariusz Bratnicki: Akademia WSB
Wojciech Dyduch: University of Economics in Katowice

Chapter Chapter 19 in Contemporary Challenges in Cooperation and Coopetition in the Age of Industry 4.0, 2020, pp 359-373 from Springer

Abstract: Abstract Firm-level strategies of value creation are typically identified with rational, analysis-based processes as well as conscious strategic choices made by decision-makers upon the broad access to information. Meanwhile, decisions concerning the sources of value creation (e.g., innovation, shaping strategic potential) and the value creation and capture itself (e.g., imitation, mergers, and acquisitions) are often dependent on inward-oriented managerial choices that underestimate facts and information. In this paper, we attempt to describe how cognitive biases, perceived as an irrational perception of reality, may influence strategic decisions, which translate into value creation and capture in organizations. In a similar vein, we offer some ideas of debiasing managerial decisions, looking specifically at organizational learning and diligent strategy based on interactions, constructive dialogue, and facts rather than perceptions.

Keywords: Cognitive biases; Value creation and capture; Strategy (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-030-30549-9_19

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DOI: 10.1007/978-3-030-30549-9_19

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