DEBIASING STRATEGIES IN SUPPLY MANAGEMENT DECISION-MAKING

✍ Scribed by Lutz Kaufmann; Alex Michel; Craig R. Carter

• Publisher: Wiley (John Wiley & Sons)
• Year: 2009
• Tongue: English
• Weight: 877 KB
• Volume: 30
• Category: Article
• ISSN: 0735-3766
• DOI: 10.1002/j.2158-1592.2009.tb00100.x

✦ Synopsis

Human judgment and decision making under uncertainty are vulnerable to decision biases leading to deviations from the standard assumptions of the rational paradigm in economics. This fact is currently not widely reflected by research on decision making in sourcing contexts. However, supply managers are aware of the judgment and decision challenges that result from existing and increasing levels of uncertainty in the external, upstream supply chain, and deploy decision supporting strategies for debiasing their judgments. The analysis of supply management decisions using 441 data units from 133 embedded cases from 15 buying organizations revealed high levels of such debiasing strategies. However, the seemingly most effective mitigation strategy recommended in the general debiasing literature ‐ creating awareness of the underlying mechanics causing decision biases ‐ was only employed by one buying organization, indicating a need to further investigate debiasing strategies specifically in supply management contexts.