How much information to consider when choosing action to change? The impact of managers’ promotion versus prevention focus

Abstract

PurposeThis research sought to understand better how readily managers choose action to change the status quo. Specifically, in experimentally manipulated ambiguous situations, I examined the effect of managers’ promotion and prevention focus on how much information they wish to review to help them choose.Design/methodology/approachI developed a novel experimental paradigm and applied it in a sample of 157 managers. Managers faced choosing action (change the status quo) versus non-action (keep the status quo), and I test under which circumstances they want to review more information that they believe will help them choose effectively.FindingsThe experiment showed evidence that (1) managers with a prevention focus want to review more information when they are trying to assure that they do not choose action erroneously; (2) managers with a promotion focus want to review more information when they are trying to assure that they do not choose non-action erroneously.Originality/valueThis research provides an original perspective on a managerial decision-making phenomenon. It goes beyond managers’ choice preferences to examine a practically relevant outcome of the process of deliberating about taking action to change the status quo.