Navigating Transformation: Decision-Making and Cognitive Biases in Dynamic Environments

An effective implementation of new strategies by managers requires decision-makers to be able to detect signals and recognize trends – thus to adapt their vision. This chapter explores whether decision biases and institutions play a role in the decision-making process, especially in dynamic environments, with biases seen as non-rational beliefs influencing the capability to make rational decisions based on facts and evidence. The chapter also goes more in-depth about how extent decision-makers are able to leverage the trade-off between intuitive and rational decision-making while also taking into account the role of new technologies and data analytics.