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The Influence of Decision Style on Decision Making Behavior

Author

Listed:
  • John C. Henderson

    (University of Pennsylvania)

  • Paul C. Nutt

    (Ohio State University)

Abstract

Cognitive styles measured by the Myers-Briggs indicator were studied to isolate how style influences decision behavior. An experiment was conducted in which experienced decision makers from hospitals and firms were asked to assess several capital expansion projects. To control for environmental factors, the project summaries were tailored to be compatible or incompatible with each individual's cognitive style. Risk and information sources were also controlled in the summary by using two levels of risk, defined by the spread of the return on investment (ROI) projections, and by using personal judgements or a computer-based model to provide the ROI estimates. The decision makers assessed each project, indicating their likelihood of adopting it and their perception of its risk. The impact of style, setting (hospital or firm), and the control factors (environment, information source, and risk) were related to a decision to adopt and assessments of risk by ANOVA techniques. Cognitive style was found to be an important factor in the decision to adopt and the assessment of risk. ST (sensation-thinking) styles saw the highest risk and were reluctant to adopt the projects, while SF (sensation-feeling) styles were risk tolerant and more likely to adopt the same projects. Our results support the views of cognitive theorists, who argue that decision style is an important determinant of behavior. Decisions seem to be a function of the decision maker's cognitive makeup which differs for different psychological types.

Suggested Citation

  • John C. Henderson & Paul C. Nutt, 1980. "The Influence of Decision Style on Decision Making Behavior," Management Science, INFORMS, vol. 26(4), pages 371-386, April.
    • Handle: RePEc:inm:ormnsc:v:26:y:1980:i:4:p:371-386
    DOI: 10.1287/mnsc.26.4.371
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    Cited by:

    1. Hafkamp, Wim & Nijkamp, Peter, 1986. "Integrated economic-environmental-energy policy and conflict analysis," Journal of Policy Modeling, Elsevier, vol. 8(4), pages 551-576.
    2. Shipley, Margaret F. & Johnson, Madeline, 2009. "A fuzzy approach for selecting project membership to achieve cognitive style goals," European Journal of Operational Research, Elsevier, vol. 192(3), pages 918-928, February.
    3. Abby Mello & Joan Rentsch, 2014. "Cognitive Style Diversity in Decision Making Teams: A Conceptual Framework," International Journal of Business and Social Research, LAR Center Press, vol. 4(4), pages 123-135, April.
    4. John W. Boudreau, 2004. "50th Anniversary Article: Organizational Behavior, Strategy, Performance, and Design in Management Science," Management Science, INFORMS, vol. 50(11), pages 1463-1476, November.
    5. Fuming Jiang & Subramaniam Ananthram & Jizhong Li, 2018. "Global Mindset and Entry Mode Decisions: Moderating Roles of Managers’ Decision-Making Style and Managerial Experience," Management International Review, Springer, vol. 58(3), pages 413-447, June.
    6. Butler, Stephen A. & Ghosh, Dipankar, 2015. "Individual differences in managerial accounting judgments and decision making," The British Accounting Review, Elsevier, vol. 47(1), pages 33-45.
    7. Shen, Huayu & Xiong, Hao & Zheng, Shaofeng & Hou, Fei, 2021. "Chief executive officer (CEO)’s rural origin and internal control quality," Economic Modelling, Elsevier, vol. 95(C), pages 441-452.
    8. Asghar Afshar Jahanshahi & Alexander Brem & Mohammad Shahabinezhad, 2018. "Does Thinking Style Make a Difference in Environmental Perception and Orientation? Evidence from Entrepreneurs in Post-Sanction Iran," Sustainability, MDPI, vol. 10(5), pages 1-19, May.
    9. Céline Bérard, 2010. "Complexité et décision participative : le cas du système de la propriété intellectuelle des innovations biotechnologiques," Post-Print halshs-00519036, HAL.
    10. Abby Mello & Joan Rentsch, 2014. "Cognitive Style Diversity in Decision Making Teams: A Conceptual Framework," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(4), pages 123-135, April.
    11. Sebastian Kruse & David Bendig & Malte Brettel, 2023. "How Does CEO Decision Style Influence Firm Performance? The Mediating Role of Speed and Innovativeness in New Product Development," Journal of Management Studies, Wiley Blackwell, vol. 60(5), pages 1205-1235, July.
    12. L A Franco & M Meadows, 2007. "Exploring new directions for research in problem structuring methods: on the role of cognitive style," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(12), pages 1621-1629, December.
    13. Steul, Martina, 2006. "Does the framing of investment portfolios influence risk-taking behavior? Some experimental results," Journal of Economic Psychology, Elsevier, vol. 27(4), pages 557-570, August.
    14. Céline Bérard & L.M., Cloutier & Luc Cassivi, 2017. "The effects of using system dynamics-based decision support models: testing policy-makers’ boundaries in a complex situation," Post-Print hal-02128255, HAL.
    15. Berthon, Pierre R. & Pitt, Leyland F. & Morris, Michael H., 1998. "The Impact of Individual and Organizational Factors on Problem Perception: Theory and Empirical Evidence from the Marketing-Technical Dyad," Journal of Business Research, Elsevier, vol. 42(1), pages 25-38, May.
    16. Thomas J. Housel & Waymond Rodgers, 1994. "A Multi‐Stage Model of Decision Bias: Implications for Expert Systems," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 3(3), pages 165-186, August.
    17. Gerrit H. van Bruggen & Ale Smidts & Berend Wierenga, 1998. "Improving Decision Making by Means of a Marketing Decision Support System," Management Science, INFORMS, vol. 44(5), pages 645-658, May.
    18. Céline Bérard, 2013. "Les démarches participatives en matière de politiques publiques : le cas de la propriété intellectuelle des innovations biotechnologiques," Post-Print halshs-00987945, HAL.
    19. Céline Bérard & Martin Cloutier L. & Luc Cassivi, 2017. "The effects of using system dynamics-based decision support models: testing policy-makers’ boundaries in a complex situation," Post-Print halshs-01666605, HAL.
    20. O'Keefe, Robert M., 2016. "Experimental behavioural research in operational research: What we know and what we might come to know," European Journal of Operational Research, Elsevier, vol. 249(3), pages 899-907.

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