TY - JOUR
T1 - Outcomes of decision speed
T2 - An empirical study in product elimination decision-making processes
AU - Argouslidis, Paraskevas
AU - Baltas, George
AU - Mavrommatis, A.
PY - 2014/5
Y1 - 2014/5
N2 - Purpose: This paper aims to consider decision speed's role in the largely neglected decision area of product elimination. Design/methodology/approach: Drawing on an inter-disciplinary theoretical background (e.g. organisational, decision speed and product elimination theories), the authors develop and test a framework for decision speed's effects on the market and financial outcomes of a stratified random sample of 175 consumer product eliminations. Findings: In contrast to decision speed research that hypothesised (and often failed to confirm) linearity, results show inverted ∪-shaped decision speed-to-decision outcomes relationships, with curvatures moderated by product importance, environmental complexity and turbulence. Research limitations/implications: Findings are suggestive of several implications for the above theories (e.g. contribution to the dialogue about performance-enhancing value of rational vs incremental decision-making; evidence that excessive decision speed may become too much of a good thing). Certain design limitations (e.g. sampling consumer goods' manufacturers only) point at avenues for future inquiry into the product elimination decision speed-to-outcomes link. Practical implications: Managerially, the findings suggest that product eliminations' optimal market and financial outcomes depend on a mix of speed and search in decision-making and that this mix requires adjustments to different levels of product importance, interdependencies with other decision areas of the firm and environmental turbulence. Originality/value: The paper makes a twofold contribution. It enriches decision speed research, by empirically addressing speed's outcomes in relation to a decision area that is not necessarily strategic and represents the first explicit empirical investigation into outcomes of decision speed in product line pruning decision-making.
AB - Purpose: This paper aims to consider decision speed's role in the largely neglected decision area of product elimination. Design/methodology/approach: Drawing on an inter-disciplinary theoretical background (e.g. organisational, decision speed and product elimination theories), the authors develop and test a framework for decision speed's effects on the market and financial outcomes of a stratified random sample of 175 consumer product eliminations. Findings: In contrast to decision speed research that hypothesised (and often failed to confirm) linearity, results show inverted ∪-shaped decision speed-to-decision outcomes relationships, with curvatures moderated by product importance, environmental complexity and turbulence. Research limitations/implications: Findings are suggestive of several implications for the above theories (e.g. contribution to the dialogue about performance-enhancing value of rational vs incremental decision-making; evidence that excessive decision speed may become too much of a good thing). Certain design limitations (e.g. sampling consumer goods' manufacturers only) point at avenues for future inquiry into the product elimination decision speed-to-outcomes link. Practical implications: Managerially, the findings suggest that product eliminations' optimal market and financial outcomes depend on a mix of speed and search in decision-making and that this mix requires adjustments to different levels of product importance, interdependencies with other decision areas of the firm and environmental turbulence. Originality/value: The paper makes a twofold contribution. It enriches decision speed research, by empirically addressing speed's outcomes in relation to a decision area that is not necessarily strategic and represents the first explicit empirical investigation into outcomes of decision speed in product line pruning decision-making.
KW - Curvilinear effects
KW - Decision-making speed
KW - Outcomes
KW - Product elimination
KW - Product line pruning
UR - http://www.scopus.com/inward/record.url?scp=84940234820&partnerID=8YFLogxK
U2 - 10.1108/EJM-10-2012-0573
DO - 10.1108/EJM-10-2012-0573
M3 - Article
AN - SCOPUS:84940234820
SN - 0309-0566
VL - 48
SP - 982
EP - 1008
JO - European Journal of Marketing
JF - European Journal of Marketing
IS - 5-6
ER -