Current Science

Open Access Open Access  Restricted Access Subscription Access

Brazilian and Romanian Decision-Makers:Is their Decision Behaviour Different? Evidence from an Empirical Study


Affiliations
1 Applied Social Sciences Center, Mackenzie Presbyterian University, 896 Rua da Consolação, São Paulo, SP, Brazil
2 Department of Business, Faculty of Business, Babeş-Bolyai University, 7 Horea Street, Cluj-Napoca 400174, Romania
3 Department of Business Administration and Marketing, Faculty of Economic Sciences, '1 Decembrie 1918' University of Alba Iulia, 15-17 Unirii Street, Alba Iulia 510009, Romania
4 Department of Finance, Faculty of Economics and Business Administration, Babeş-Bolyai University, 58–60 Teodor Mihali Street, Cluj-Napoca 400591, Romania
 

There are two types of processes involved while making a decision: a controlled process, which is rational, with introspective access and an automatic one, which is called experiential or decision by expertise. Both processes depend on the use of information and are influenced by social affective factors. The present study aims to identify the differences between decision behaviour adopted by managers in Brazil and Romania, when making decisions related to budget level estimation. The study is quantitative and the data were collected via a ten-point scale questionnaire on Brazilian and Romanian samples comprised of MBA students. The data were analysed using structural equation modelling estimated by means of the PLS methodology. Our results show that information search and social-affective factors influence both rational decision and decision by expertise in Brazil and Romania, however, in distinct degrees. Distinctions could arise based on cultural differences between Brazilian and Romanian decision-makers.

Keywords

Decision-Making, Cognitive Models, Neuro-Accounting, Management Accounting.
User
Notifications
Font Size

  • Kahneman, D., Rápido e Devagar: Duas Formas de Pensar, Objetiva, Rio de Janeiro, Brazil, 2012.

  • Hogarth, R. M., Portell, M., Cuxart, A. and Kolev, G., Emotion and reason in everyday risk perception. J. Behav. Decis. Making, 2011, 24, 202-222; doi:10.1002/bdm.689.

  • von Neumann, J. and Morgenstern, O., Theory of Games and Economic Behavior, Princeton University Press, Princeton, NJ, USA, 1944.

  • Simon, H. A., A behavioural model of rational choice. Q. J. Econ., 1955, 69(1), 99-118; doi:10.2307/1884852

  • Kahneman, D. and Tversky, A., Prospect theory: an analysis of decision under risk. Econometrica, 1979, 47(2), 263-291; doi:10.2307/1914185

  • Hogarth, R. M. and Karelaia, N., Simple models for multiattribute choice with many alternatives: when it does and does not pay to face trade-offs with binary attributes. Manage. Sci., 2005, 51(12), 1860-1872; doi:10.1287/mnsc.1050.0448.

  • Pennings, J. M. E., Garcia, P. and Hendrix, E., Towards a theory of revealed economic behaviour: the economic-neuroscience interface. J. Bioecon., 2005, 7(2), 113-137; doi:10.1007/s10818-0056417-z

  • Franken, I. H., Van Strien, J. W., Nijs, J. and Muris, P., Impulsivity is associated with behavioural decision-making deficits. Psychiatr. Res., 2008, 158(2), 155-163; doi:10.1016/j.psychres.2007.06.002

  • Hon-Snir, S., Kudryavtsev, A. and Cohen, G., Stock market investors: who is more rational, and who relies on intuition? Int. J. Econ. Financ., 2012, 4(5), 56-73; doi:10.5539/ijef.v4n5p56

  • Brown, S. B. R. E. and Ridderinkhof, K. R., Aging and the neuroeconomics of decision making: a review. Cogn. Affect. Behav. Neurosci., 2009, 9(4), 365-379; doi:10.3758/CABN.9.4.365

  • Raab, G., Elger, C. E., Neuner, M. and Weber, B., A neurological study of compulsive buying behaviour. J. Consum. Policy, 2011, 34, 401-413; doi:10.1007/s10603-011-9168-3

  • Trzaskowski, J., Behavioural economics, neuroscience, and the unfair commercial practices directive. J. Consum. Policy, 2011, 24, 377-392; doi:10.1007/s10603-011-9169-2

  • Weller, J. A. and Tikir, A., Predicting domain-Specific risk taking with the HEXACO personality structure. J. Behav. Decis. Making, 2011, 24, 180-201; doi:10.1002/bdm.677

  • Gao, X., LoBue, V., Irving, J. and Harvey, T., The effect of spatial frequency information and visual similarity in threat detection. Cogn. Emotion, 2016, 31(5), 912-922; doi:10.1080/02699931.2016.1180280

  • Peterson, R. L., Affect and financial decision-making: how neuroscience can inform market participants. J. Behav. Financ., 2007, 8(2), 70-78; doi:10.1080/15427560701377448

  • Rubinstein, A., Instinctive and cognitive reasoning: a study of response times. Econ. J., 2007, 117, 1243-1259; doi:10.1111/j.1468-0297.2007.02081.x

  • Wilson, R. M., Gaines, J. and Hill, R. P., Neuromarketing and consumer free Will. J. Consum. Affairs, 2008, 42(3), 389-410; doi:10.1111/j.1745-6606.2008.00114.x.

  • Lamiraud, K. and Vranceanu, R., Group gender composition and economic decision-making: evidence from the Kallystée business game. J. Econ. Behav. Organ., 2018, 145, 294-305.

  • Hügelschäfer, S. and Achtziger, A., Reinforcement, rationality, and intentions: how robust is automatic reinforcement learning in economic decision making? J. Behav. Decis. Making, 2017, 30(4), 913-932.

  • Raharja, B. S., Suhaeli, D. and Mranani, M., Did manager behave overconfidently? Financ. Stud., 2017, 21(3), 32-44.

  • Harrison, R., Mason, C. and Smith, D., Heuristics, learning and the business angel investment decision-making process. Entrepreneur. Reg. Dev., 2015, 27(9-10), 527-554.

  • Rakow, T. and Newell, B. R., Degrees of uncertainty: an overview and framework for future research on experience-based choice. J. Behav. Decis. Making, 2010, 23, 1-14; doi:10.1002/bdm.681.

  • Minkov, M. and Hofstede, G., The evolution of Hofstede's doctrine. Cross Cult. Manag., 2011, 18(1), 10-20; doi:10.1108/13527601111104269

  • Gupta, A., Kannan, K. and Sanyal, P., Economic experiments in information systems. MIS Q., 2018, 42(2), 595-606.

  • Borawska, A., Cognitive neuroscience tools in economic experiments investigating the decision making process. Folia Oecon. Stetin., 2017, 17(1), 159-169.

  • Camerer, C. F., Loewenstein, G. and Prelec, D., Neuroeconomics: how neuroscience can inform economics. J. Econ. Lit., 2005, 43(1), 9-64; doi:10.1257/0022051053737843.

  • Goleman, D., Emotional Intelligence, Bantam, New York, USA, 1995.

  • Viscott, D., The Language of Feelings, Pocket Books, New York, USA, 1982.

  • Merchant, K. and Van der Stede, W., Management Control Systems: Performance Measurement, Evaluations and Incentives, Pearson, New York, USA, 2007, 2nd edn.

  • Anthony, R. N. and Govindarajan, V., Sistemas de Controle Gerencial, McGraw Hill, Brazil, 2008.

  • Horngren, C. T., Sundem, G. L. and Stratton, W. O., Introduction to Management Accounting, Pearson Education, NJ, USA, 2005.

  • Baron, J. N. and Kreps, D. M., Strategic Human Resources: Farmework for General Managers, Wiley & Sons, New York, USA, 1999.

  • Faul, F., Erdfelder, E., Buchner, A. and Lang, A.-G., Statistical power analyses using G*Power 3.1: tests for correlation and regression analyses. Behav. Res. Meth., 2009, 41, 1149-1160.

  • Hair, J. F., Hult, G., Thomas, M., Ringle, C. M. and Sarstedt, M., A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM), Sage Publications, Los Angeles, CA, USA, 2014, 2nd edn.

  • Cesar Roux, V. C., A. M., Boggio, P. S. and Campanhã, C., Neuroeconomia: Uma Visão Geral Sobre o Tema. In Guia de Economia Comportamental e Experimental (eds Ávila, F. and Bianchi, A. M.), Economia Comportamental.org: São Paulo, SP, Brazil, 2015, pp. 250-262.

  • Cadez, S. and Guilding, C., An exploratory investigation of an integrated contingency model of strategic management accounting. Account. Organ. Soc., 2008, 33(7-8), 836-863; doi:10.1016/j.aos.2008.01.003.

  • Wilkinson, J. W., Accounting and Information Systems, John Wiley, New York, USA, 1991.

  • O'Brien, J. A. and Marakas, G. M., Administração de Sistemas de Informação: Uma Introdução, McGraw-Hill, São Paulo, SP, Brazil, 2008, 13th edn.

  • Turban, E., McLean, E. and Wetherbe, J., Tecnologia da Informação para Gestão, Bookman, Porto Alegre, Brazil, 2007, 3rd edn.

  • Sternberg, R. J., Psicologia Cognitiva, Artmed, Porto Alegre, Brazil, 2008.

  • https://geert-hofstede.com (accessed on 27 January 2016).


Abstract Views: 281

PDF Views: 89




  • Brazilian and Romanian Decision-Makers:Is their Decision Behaviour Different? Evidence from an Empirical Study

Abstract Views: 281  |  PDF Views: 89

Authors

Ana Maria Roux Valentini Coelho Cesar
Applied Social Sciences Center, Mackenzie Presbyterian University, 896 Rua da Consolação, São Paulo, SP, Brazil
Gilberto Perez
Applied Social Sciences Center, Mackenzie Presbyterian University, 896 Rua da Consolação, São Paulo, SP, Brazil
Larissa Batrancea
Department of Business, Faculty of Business, Babeş-Bolyai University, 7 Horea Street, Cluj-Napoca 400174, Romania
Anca Nichita
Department of Business Administration and Marketing, Faculty of Economic Sciences, '1 Decembrie 1918' University of Alba Iulia, 15-17 Unirii Street, Alba Iulia 510009, Romania
Ioan Batrancea
Department of Finance, Faculty of Economics and Business Administration, Babeş-Bolyai University, 58–60 Teodor Mihali Street, Cluj-Napoca 400591, Romania

Abstract


There are two types of processes involved while making a decision: a controlled process, which is rational, with introspective access and an automatic one, which is called experiential or decision by expertise. Both processes depend on the use of information and are influenced by social affective factors. The present study aims to identify the differences between decision behaviour adopted by managers in Brazil and Romania, when making decisions related to budget level estimation. The study is quantitative and the data were collected via a ten-point scale questionnaire on Brazilian and Romanian samples comprised of MBA students. The data were analysed using structural equation modelling estimated by means of the PLS methodology. Our results show that information search and social-affective factors influence both rational decision and decision by expertise in Brazil and Romania, however, in distinct degrees. Distinctions could arise based on cultural differences between Brazilian and Romanian decision-makers.

Keywords


Decision-Making, Cognitive Models, Neuro-Accounting, Management Accounting.

References





DOI: https://doi.org/10.18520/cs%2Fv116%2Fi3%2F445-456