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| An Empirical Study on the Mechanism of Introducing Management Innovation
Based on Cognitive Biases |
| SU Jing-Qin, LIN Hai-Fen |
| Dalian University of Technology, Dalian, Laoning, China |
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Abstract The popularity of introduced management innovations stands out its irreplaceable role in improving organization performance and winning continuous competitive advantages. However, since core managers of enterprises, who are directly responsible for management innovation decision, tend to perceive lower risk than the fact affected by cognitive biases, the high failure rate of management innovation has attracted extensive attention. Therefore, from the perspective of individual cognitive biases, and based on data from 237 managers of different enterprises as well as the results of relevant regression analysis, this research indicates that: i)overconfidence, illusion of control and representativeness are negatively associated to risk perception of managers; ii) risk perception is negatively associated to management innovation introduction level; iii) risk perception partially mediates the relationship between overconfidence, illusion of control and management innovation introduction level, but completely mediates the relationship between representativeness and management innovation introduction level.
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Received: 17 January 2011
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2012, Vol. 9 
