The Superstitious Heuristic in Strategic Decision Making

Abstract

This study focuses on the phenomenon of using superstition as a decision heuristic in strategic decision-making. We introduce the construct of superstitious heuristic, which is defined as a decision shortcut based on superstitious beliefs. The superstitious heuristic is commonly used in strategic decision-making in various cultures and can lead to seemingly puzzling decisions that have strategic consequences for the firm. It is also distinctly different from other major decision heuristics (i.e., heuristics-and-biases, fast-and-frugal heuristics, expert intuition, and simple rules) and can be used over the latter, especially under high uncertainty. Nevertheless, this heuristic type has not yet received much attention in the strategy literature, presumably because its usage in strategic decision-making is less prevalent in Western contexts where most heuristics research takes place. In this study, we initiate an inquiry into this phenomenon through two objectives: (1) introducing the construct of superstitious heuristic with conceptualization and measurement and (2) probing the executive antecedents to the superstitious heuristic. Our study not only brings the superstitious heuristic to the attention of strategy scholars but also lays the conceptual and empirical foundation for advancing strategy research on this heuristic. By delineating the profile of executives who are prone to employing this heuristic in making strategic choices, our study also contributes to upper echelons research on the use of heuristics in strategic decision processes.