Abstract
Business owners are faced with complex problems and are required to make decisions on a daily basis. The purpose of this study was to investigate complex problem solving (CPS) between experts and novices and to explore the competing theories of expert-rigidity versus expert-adaptability, as part of exploring which theory better explains crystallized intelligence. Participants were 140 business owners, business management undergraduate students and psychology students. Each participant managed a highly complex simulated chocolate company. Decisions and systems data were automatically saved in log files. Results revealed that small business owners performed best, followed by business students and then psychology students. A process analysis revealed that experts compared to novices spent more time initially exploring the complex situation. Experts were found to have greater flexibility in their decisions, having made the most personnel and advertising changes in response to situational demands. Adaptability and flexibility were predictive of performance, with results supporting the adaptability/flexibility theory of expertise. This study shows the influence of expertise on complex problem solving and the importance of flexibility when solving dynamic business problems. Complex business simulations are not only useful tools for research, but could also be used as tools in training programs teaching decision making and problem solving strategies.
Highlights
This study shows the influence of expertise on complex problem solving and the importance of flexibility when solving dynamic business problems
How does an experienced business leader compared to a novice balance production numbers and demand on the market? Which strategies do experts and novices use to expand their company’s position in the market? Are business experts reacting to changes in the market with flexibility? Do experts and novices differ in their information collection strategy? The current study investigates complex problem solving (CPS) behavior in a complex and uncertain, business simulation of a chocolate company called CHOCO-FINE
One indicator of the face validity of CHOCO-FINE is the results from the survey distributed to the business owners
Summary
Which strategies do experts and novices use to expand their company’s position in the market? The current study investigates complex problem solving (CPS) behavior in a complex and uncertain, business simulation of a chocolate company called CHOCO-FINE. The research focus was to empirically investigate the role of expertise in CPS strategies by comparing experts and novices over time, contributing to the literature on prior knowledge in CPS as outlined in the editorial to this Special Issue. Complex Problem Solving and Dynamic Decision Making under Uncertainty Using Micro-Worlds. The first attempts to use simulations pertaining to complex and uncertain problems as part of investigating participants’ decision making occurred some years ago. In Europe, computer-simulated complex problems, called micro-worlds or virtual environments, were developed to investigate. This research technique became popular under the label complex problem solving (CPS) [6]
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