Enhancing Production Quality by Avoiding Dishonest Behavior

Abstract

Purpose: This paper elucidates the determinants of dishonest behavior affecting various domains and aims to demonstrate how addressing these practices can substantially improve overall quality. Methodology/Approach: A framed laboratory experiment with economics students from the University of West Bohemia was conducted, where participants chose between honest and lower-quality production. Using the Holt-Laury method, we measured risk aversion and personality traits using the Myers-Briggs Type Indicator (MBTI). Findings: Increased inspection probability significantly reduced lower-quality production, with a statistical significance level of less than 1%. Thinking type of personality and Risk Aversion are significant at the 10% level, indicating a moderate impact. Conversely, punishment and rewards were statistically insignificant, with p-values exceeding 10%. Research Limitation/Implication: The study is limited by its homogeneous sample of economics students from a single university and insufficient gender representation, which may affect generalizability. Originality/Value of paper: This research provides insights into how inspection probabilities, rewards, punishments, risk aversion, and personal characteristics influence dishonest behavior, aiding the development of strategies to reduce dishonesty and improve overall quality.