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The effect of personality traits and knowledge on the quality of decisions in supply chains

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  • J. Erjavec
  • A. Popovič
  • P. Trkman

Abstract

Supply chain and operations management requires frequent decision making, and decisions are importantly influenced by the personality traits and knowledge of the decision maker. Thus, we analyse the effect of those factors on the confidence and quality of decisions taken in the context of supply chain management. The data were gathered via an online supply chain simulation game where subjects needed to make several decisions. Personality traits of the participants were tested using the Big Five model. The structural model was estimated using the partial least squares structural equation modelling approach. We found that decision-makers with lower levels of extraversion and agreeableness and higher levels of conscientiousness and openness make better decisions. On the other hand, neuroticism and agreeableness negatively affect confidence in decisions. Tested knowledge positively influences both decision-makers’ confidence in and the quality of their decisions while self-reported knowledge has no significant effect. Therefore, the companies should carefully consider how an individual’s personality matches the type of job at hand and rely on tested instead of self-reported knowledge.

Suggested Citation

  • J. Erjavec & A. Popovič & P. Trkman, 2019. "The effect of personality traits and knowledge on the quality of decisions in supply chains," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 2269-2292, January.
    • Handle: RePEc:taf:reroxx:v:32:y:2019:i:1:p:2269-2292
    DOI: 10.1080/1331677X.2019.1642788
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    Cited by:

    1. S. Di Luozzo & A. Fronzetti Colladon & M. M. Schiraldi, 2024. "Decoding excellence: Mapping the demand for psychological traits of operations and supply chain professionals through text mining," Papers 2403.17546, arXiv.org.

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