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Decision‐making in the supply chain: Examining problem solving approaches and information availability
Author(s) -
Cantor David E.,
Macdonald John R.
Publication year - 2009
Publication title -
journal of operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.649
H-Index - 191
eISSN - 1873-1317
pISSN - 0272-6963
DOI - 10.1016/j.jom.2008.09.002
Subject(s) - supply chain , computer science , context (archaeology) , construal level theory , supply chain management , psychology , marketing , social psychology , paleontology , business , biology
In this paper we investigate the role of two types of problem solving approaches on supply chain performance. Additionally, we investigate how the level of information availability moderates problem solving approach on supply chain performance. We draw on construal level theory from the experimental psychology literature to explain how the problem solving approaches (abstract problem solving approach vs. concrete problem solving approach) contribute to supply chain performance. From this foundation, we run a series of behavioral experiments to test our hypotheses that problem solving approaches and information availability impact supply chain performance as presented in the beer distribution game. A key finding of this study is that individuals who take an abstract problem solving approach are able to perform better than individuals who take a concrete problem solving approach in the context of limited information availability. However, in the context of complete information availability, the impact of both types of problem solving approaches on performance becomes negligible.