Neurofinance and Strategic Agility: A Study on Executive Cognitive Bias

This study examines the crucial role of neurofinance-based executive cognition in enhancing the quality of strategic decision-making in dynamic corporate environments. Grounded in the intersection of contemporary neurofinance and behavioral strategy literature, this study deeply explores the influence of neurocognitive bias on strategic agility. Furthermore, this research positions executive rationality as a key mediating variable to understand the mechanism of this relationship. To achieve this objective, a quantitative approach was applied through a structured survey involving 285 mid-to-senior-level managers from various industrial sectors in Indonesia. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) to validate the research model. The statistical analysis results show that neurocognitive bias has a significant negative influence on strategic agility. Interestingly, executive rationality was found to partially mediate this relationship. This indicates that while rationality can reduce the adverse impact of bias, its influence cannot be entirely eliminated. These findings make a significant contribution by providing empirical support for the integration of neurofinance insights into strategic management frameworks. Practically, the study recommends interventions such as cognitive awareness training for leaders and the development of a structured decision architecture to mitigate bias and strengthen organizational agility.