Purpose – The purpose of this paper is to review and integrate the extensive literature base which examines judgment and decision‐making biases, to introduce this literature to the field of supply management, to create a valid, mutually exclusive, and exhaustive taxonomy of decision biases that can affect supply managers, and to provide guidance for future research and applications of this taxonomy.Design/methodology/approach – The authors use a qualitative cluster analysis, combined with a Q‐sort methodology, to develop a taxonomy of decision biases.Findings – A mutually exclusive, and exhaustive taxonomy of nine decision biases is developed through a qualitative cluster analysis. The Q‐sort methodology provides initial confirmation of the reliability and validity of the cluster analysis results. The findings, along with numerous examples provided in the text, suggest that supply management decisions are vulnerable to the described biases.Originality/value – This paper provides a comprehensive review of ...

Behavioral supply management: a taxonomy of judgment and decision‐making biases

A mediated model on the adoption of social media and SMEs’ performance in developing countries

Small and medium enterprises (SMEs) have become a vibrant and dynamic sector of the world economy. Information technology plays a vital role in improving the productivity and competitiveness of SMEs. The dynamic business environment has brought fierce competition among SMEs and, therefore, requires the owners to interact with internal and external members actively. Hence, this study aims to investigate the impact of technology, organization, and environment as important factors in the performance of small and medium-sized enterprises. It also examines the mediating role of social media adoption. Items were developed to measure the various purposes of social media use in organizations, which contribute to increasing the measurement of social media usage. For the empirical investigation, this paper used a closed-ended questionnaire. Using a quantitative method, we observed 423 responses through structural equation modeling. The findings of the study indicate that technology, organization, and the environment play effective roles for SME performance. More importantly, social media adoption positively mediates the relationship between technology, organization, environment, and SME performance. The study also helps organizations realize the advantages of using social media and specifies the rationale behind an organization’s investment in social media.

Examining the Factors Affecting SME Performance: The Mediating Role of Social Media Adoption

Linking sourcing and collaborative strategies to financial performance: The role of operational innovation

Alignment and synergy between the areas of lean construction and safety management are expected because all near misses and injury incidents represent waste from the lean perspective. This paper describes a research study of lean and safety principles and practices with regards to worker behavior and safety practices. Specifically, the study aimed to investigate the extent of alignment between lean construction principles/practices and worker behaviors associated with construction safety. To conduct the study, the researchers used a multistep process involving a comprehensive literature review, document content analyses by an expert panel, and a survey of industry practitioners knowledgeable about lean construction. The findings support the perspective that many similarities exist between the application and impacts of lean and safety principles and practices. Lean practitioners surveyed believe that implementation of the last planner system as a lean practice is most beneficial to the following s...

Alignment between Lean Principles and Practices and Worker Safety Behavior

The innovation adoption research dealing with the causes of adoption have addressed factors that stimulate innovation and the pro-innovation bias assumption called a bandwagon pressure. Bandwagon pressures are caused by the fear of non-adopters appearing different from adopters and possibly performing at a below-average level if competitors substantially benefit from innovation. Bandwagons are stated to be diffusion processes that innovative organizations go through. This is because organizations are pressured to adopt innovation by the sheer number of adopting organizations in the market even when individual assessments of the merits of innovation adoption are not complete. Top management of publicly-held corporations adopts operations innovation, such as just-in-time (JIT) and total quality management (TQM), based on the belief that the adoption will enhance the market perception of the value of the organization even when it knows the innovation adoption might not produce tangible economic benefits. In the presence of strong bandwagon pressures, innovation adoptions by firms would not produce higher firm value since there are no real economic benefits to the adopting firms. Thus, a test of innovation adoption, involving JIT and TQM, would allow us to examine whether top management adopts innovation based on the promised enhancement of the organization's value in the market. In this view, we empirically test the relationship between innovation adoption and the market's (capital market's) perception of the value of the adopting organization. Assuming top management makes a rational choice, it will decide to adopt operational innovation if it expects the stock price effect to be positive, ex ante. We test the hypothesis that innovation adoption will produce a positive change in innovation adopters' stock prices, ex post. INNOVATION ADOPTION AND BANDWAGON CLAIM Innovation adoption decisions have long been the concern of innovation researchers (Drucker, 1985; Lewis and Siebold, 1993; Lind and Zmud, 1991; Tornatzky et al., 1983). Precedents and correlates to formal adoption decisions were the initial focus of innovation adoption research. The research has also seen theoretical advances in understanding the dynamics of intraorganizational adoption processes (Meyer and Goes, 1988; Pelz, 1983; Rogers, 1988) and the changes in interrelationships among key factors of organizational innovation (Van de Ven and Poole, 1990). Further developments have also been made in the way the outcomes of the innovation process are conceptualized. Moving beyond the traditional diffusion literature, innovation adoption researchers have found a lack of uniformity in technological innovation adoption (Child et al., 1987; Leonard-Barton, 1988). The innovation adoption research dealing with the causes of adoption have addressed factors that stimulate innovation (Brophy and Shulman, 1993) and bandwagon pressures, both institutional and competitive (Abrahamson, 1991; Kimberly, 1981; Van de Ven, 1986). Bandwagon pressures are caused by the fear of non-adopters appearing different from adopters and possibly performing at a below-average level if competitors substantially benefit from innovation. Bandwagons are stated to be diffusion processes that innovative organizations go through. This is because organizations are pressured to adopt innovation by the sheer number of adopting organizations in the market even when individual assessments of the merits of innovation adoption are not complete (Abrahamson and Rosenkopf, 1990; Tolbert and Zucker, 1983). In this article, we examine bandwagon pressure from a different perspective. Based on the bandwagon pressure argument, top management of publicly-held corporations adopts innovation based on the belief that the adoption will enhance the market perception of the value of the organization even when it knows the innovation adoption might not produce real tangible economic benefits. …

Kam C. Chan

Papers

Assessing the Operations Innovation Bandwagon Effect: A Market Perspective on the Returns