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Holistic versus analytic thinking orientation and its relationship to the bullwhip effect

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  • Manuel Brauch
  • Andreas Größler

Abstract

Previous research has shown that decision‐makers contribute with individually varying intensity to the bullwhip effect, which refers to the amplification of demand variability along supply chains. This article examines whether differences in decision‐makers’ holistic versus analytic thinking orientation are related to these variations. The hypothesis is put forward that a stronger holistic thinking orientation is negatively correlated with the bullwhip effect. We also hypothesize that holistic thinkers report a higher use of information and that reported use of information is negatively correlated with the bullwhip effect. While no relationship was found between the overall thinking orientation and the bullwhip effect, a negative relationship was observed between one subdomain of the holistic versus analyic thinking orientation and the bullwhip effect. Furthermore, the results show that holistic thinking is not correlated with reported use of information and that only reported use of specific information is negatively related to the bullwhip effect. © 2022 The Authors. System Dynamics Review published by John Wiley & Sons Ltd on behalf of System Dynamics Society.

Suggested Citation

  • Manuel Brauch & Andreas Größler, 2022. "Holistic versus analytic thinking orientation and its relationship to the bullwhip effect," System Dynamics Review, System Dynamics Society, vol. 38(2), pages 121-134, April.
    • Handle: RePEc:bla:sysdyn:v:38:y:2022:i:2:p:121-134
    DOI: 10.1002/sdr.1702
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    References listed on IDEAS

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    2. Sumaiya Haque & Hesam Mahmoudi & Navid Ghaffarzadegan & Konstantinos Triantis, 2023. "Mental models, cognitive maps, and the challenge of quantitative analysis of their network representations," System Dynamics Review, System Dynamics Society, vol. 39(2), pages 152-170, April.

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