This paper investigates how reports concerning a given country’s prospects affect investment decisions in two stylized, artificial organizational settings. We designed a role-game laboratory experiment, where subjects were asked to make investment decisions for two types of fictitious companies from the same country. We found that when available reports included positive country prospects, subjects strategized more on investments regardless of the characteristics of their organization. When reports included negative prospects, however, certain organizational peculiarities influenced the subjects’ interpretations, with decision-makers opting for more prudent plans when managing a more traditional company. Cognitive maps of decision makers showed that subjects considered investment strategies as a means to fulfil a company’s role expectations regarding appropriate decisions. Notwithstanding all caveats due to the artificial and simplified nature of our experimental setting, our findings indicate the need for more research on the effect of reports and prospect analysis on strategic decisions of companies, especially when business prospects are uncertain.

A role-game laboratory experiment on the influence of country prospects reports on investment decisions in two artificial organizational settings / M. Castellani, L. Alengoz, N. Casnici, F. Squazzoni. - In: MIND & SOCIETY. - ISSN 1593-7879. - (2021), pp. 1-29. [Epub ahead of print] [10.1007/s11299-021-00283-3]

A role-game laboratory experiment on the influence of country prospects reports on investment decisions in two artificial organizational settings

F. Squazzoni
Ultimo
2021

Abstract

This paper investigates how reports concerning a given country’s prospects affect investment decisions in two stylized, artificial organizational settings. We designed a role-game laboratory experiment, where subjects were asked to make investment decisions for two types of fictitious companies from the same country. We found that when available reports included positive country prospects, subjects strategized more on investments regardless of the characteristics of their organization. When reports included negative prospects, however, certain organizational peculiarities influenced the subjects’ interpretations, with decision-makers opting for more prudent plans when managing a more traditional company. Cognitive maps of decision makers showed that subjects considered investment strategies as a means to fulfil a company’s role expectations regarding appropriate decisions. Notwithstanding all caveats due to the artificial and simplified nature of our experimental setting, our findings indicate the need for more research on the effect of reports and prospect analysis on strategic decisions of companies, especially when business prospects are uncertain.
Investment decisions; Companies; Organizational settings; Cognitive maps; Lab experiment
Settore SPS/07 - Sociologia Generale
Settore SPS/09 - Sociologia dei Processi economici e del Lavoro
DECC18ACHIE_01 - Dipartimenti di Eccellenza 2018-2022 - Dipartimento di SCIENZE SOCIALI E POLITICHE - CHIESI, ANTONIO MARIA - DECC - Bando Dipartimenti di Eccellenza - 2018
PRIN201719FSQUA_01 - One for all, all for one. Reputational mechanisms for aggression, revenge, and forgiveness in intergroup relationships (14ALL) - SQUAZZONI, FLAMINIO - PRIN2017 - PRIN bando 2017 - 2019
27-ott-2021
https://doi.org/10.1007/s11299-021-00283-3
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/2434/877963
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