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Heuristic Biases in Strategic Decision Making and Their Implications on the Design of DSS
Han,Man-Ho 同德女子大學校 産業硏究所 1994 산업연구 Vol.1 No.-
Strategic decision-making tyoically deals with the problems under uncertainty and risks in a series of phases. An effective and usual approach to handle this situation is the use of heuristics reducing complexity of problems. Despite usefulness of heuristics this simplification strategy generates systematic errors,i.e.biases,which may seriously affect the final results of a strategic decision. Researchers to data identified a lengthy list of heuristic biases and described the causes of these biases. However, we experrience difficulties in applying these general findings and recommendations to an actual strategic decision and recognize substantial gaps between a normative strategic decision model and practices in decision-making process. Previous research, furthermore, shows that heuristic biases are not always harmful in strategic decision-making process and they may be seen as an inevitable or valuable element rather than as uniformly problematic. Therefore, this study reconceptualizes heuristic biases in the context of strategic decisions and provides relevant implications in order to develop decision support systems(DSS) by incorporating previous research findings. The study also explores the capability of DSS to improve the outcome of the strategic decision.
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