The Influence of Confirmation Bias and Survivorship Bias on Electronic Industry

Abstract

This article explores the practical consequences judgmental biases have on organizations through the use of case study. Specifically, confirmation bias and survivorship bias will be discussed using organizations from the electronic industry. By studying the case of Nokia and Sony, this article aims to explain how the two judgmental biases influence the decision of the enterprises and their marketing pattern. This influence directly contributed to the failure of the smartphone production of the two operations at different points in time. In terms of the existing biases, this article also offers practical suggestions to reduce harmful effects caused by the two judgmental biases. A knowledge management system is introduced as a theoretical solution for confirmation bias and survivorship bias in innovative enterprises.