Emotion in IT Investment Decision Making with A Real Options Perspective: The Intertwining of Cognition and Regret

Author List: Park, Eun Hee; Ramesh, Balasubramaniam; Cao, Lan;
Journal of Management Information Systems, 2016, Volume 33, Issue 3, Page 652-683.
Real options thinking helps individuals cope with uncertainties in the information technology (IT) investment decision-making process. Our study examines the intertwining of cognition and a specific emotion, regret, in IT real options decision making using a multisite case study of IT investments. We develop a process model that explains the context in which regret is triggered, the strategies used to regulate regret, and how these strategies influence the valuation, creation, exercise, and revaluation of several types of IT real options. Our research highlights that while some regret regulation strategies may be productive, others are counterproductive. Our findings extend the studies on cognition-based models of IT real options by including emotion, which allows us to explore human behavior on a psychological level and offer a more fundamental understanding of IT real options thinking. Practitioners must recognize the presence of regret that could cloud cognition-based analysis and must be sensitive to its impact. > >
Keywords: emotion ;IT investment decision ;IT real options ;decision regret ;regret regulation strategy
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#267 0.400 options real investment option investments model valuation technology value analysis uncertainty portfolio models using context intuitive managerial regret uncertain case
#290 0.105 emotions research fmri emotional neuroscience study brain neurois emotion functional neurophysiological distrust cognitive related imaging tools effects warnings magnetic turn
#8 0.087 decision making decisions decision-making makers use quality improve performance managers process better results time managerial task significantly help indicate maker
#227 0.082 commitment need practitioners studies potential role consider difficult models result importance influence researchers established conduct investigated establishing appear clearly determining
#194 0.081 use habit input automatic features modification different cognition rules account continuing underlying genre emotion way light triggers conscious triggered habitual
#10 0.067 strategies strategy based effort paper different findings approach suggest useful choice specific attributes explain effective affect employ particular online control
#116 0.062 research study influence effects literature theoretical use understanding theory using impact behavior insights examine influences mechanisms specifically context perspective findings
#239 0.051 privacy information concerns individuals personal disclosure protection concern consumers practices control data private calculus regulation risk individual legislation government sensitive