Original scientific paper
https://doi.org/10.1080/1331677X.2019.1642788
The effect of personality traits and knowledge on the quality of decisions in supply chains
J. Erjavec
A. Popovič
P. Trkman
Abstract
Supply chain and operations management requires frequent decision making, and decisions are importantly influenced by the personality traits and knowledge of the decision maker. Thus, we analyse the effect of those factors on the confidence and quality of decisions taken in the context of supply chain management. The data were gathered via an online supply chain simulation game where subjects needed to make several decisions. Personality traits of the participants were tested using the Big Five model. The structural model was estimated using the partial least squares structural equation modelling approach. We found that decision-makers with lower levels of extraversion and agreeableness and higher levels of conscientiousness and openness make better decisions. On the other hand, neuroticism and agreeableness negatively affect confidence in decisions. Tested knowledge positively influences both decision-makers’ confidence in and the quality of their decisions while self-reported knowledge has no significant effect. Therefore, the companies should carefully consider how an individual’s personality matches the type of job at hand and rely on tested instead of self-reported knowledge.
Keywords
Behavioural supply chain management; individual decision making; knowledge; big five personality traits; quality of decisions; simulation game; structural equation modelling
Hrčak ID:
229540
URI
Publication date:
22.1.2019.
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