Behavioral strategy in the wild

Abstract

Purpose A decade after Powell et al.’s (2011) seminal article on behavioral strategy, which called for models to solve real-world problems, the authors revisit the field to ask whether behavioral strategy is coming of age. The purpose of this paper is to explain how behavioral strategy can and has been used in real-world settings. Design/methodology/approach This study presents a conceptual review with case study examples of the impact of behavioral strategy on real-world problems. Findings This study illustrates several examples where behavioral strategy debiasing has been effective. Although no causal claims can be made, with the stark contrast between the negative impact of biased strategies and the positive results emerging from debiasing techniques, this study argues that there is evidence of the benefits of a behavioral strategy mindset, and that this should be the mindset of a responsible strategic leader. Practical implications This study presents a demonstration of analytical, debate and organizational debiasing techniques and how they are being used in real-world settings, specifically military intelligence, Mergers and acquisitions deal-making, resource allocation and capital projects. Social implications Behavioral strategy has broad application in private and public sectors. It has proven practical value in various settings, for example, the application of reference class forecasting in large infrastructure projects. Originality/value A conceptual review of behavioral strategy in the wild.

Guest editorial: Behavioral strategy: (re-) affirming foundations

“…Finally, it is recommended to study the phenomenon in the context of culture, considering different aspects related to both organizational culture and cultural dimensions associated with the local or national context, which can be included in the adoption process of this type of innovation. Borchardt et al (2022) have cited a handful of studies to establish the effectiveness and popularity of debiasing techniques in real-world settings, but otherwise noted a dearth of studies that explore behavioral strategy in the wild. They found no studies that discuss the interaction of multiple behavioral biases in complex settings.…”

“…Borchardt et al (2022) have cited a handful of studies to establish the effectiveness and popularity of debiasing techniques in real-world settings, but otherwise noted a dearth of studies that explore behavioral strategy in the wild. They found no studies that discuss the interaction of multiple behavioral biases in complex settings.…”

“…The fourth work of this Special Issue, by Wayne Borchardt et al (2022), is entitled “Behavioral strategy in the wild”, and contemplates whether the behavioral strategy is coming of age, that is, if it has moved from the lab into the real world. The authors have described four real-world settings of business managers’ and political leaders’ strategic decision-making “in the wild”.…”