To Change or Not to Change: How Regulatory Focus Affects Change in Dyadic Decision-Making

Creativity and Innovation Management, Vol. 19, No. 4, pp. 346-363, December 2010

UIC College of Business Administration Research Paper No. 10-11

39 Pages Posted: 1 Dec 2010 Last revised: 5 Dec 2010

See all articles by Jelena Spanjol

Jelena Spanjol

Ludwig Maximilian University of Munich (LMU) - Faculty of Business Administration (Munich School of Management)

Leona Tam

University of Wollongong - School of Management, Operations and Marketing

Multiple version iconThere are 2 versions of this paper

Date Written: November 1, 2010

Abstract

Successful innovation requires teams to embrace and enact change. However, team members often differ in their preferences for change. We examine how regulatory focus affects dyadic teams’ tendencies to enact change across an array of repeated brand management decisions. Understanding such tendencies is important, since the innovation process is characterized by a series of investment decisions typically made by teams, yet prone to significant biases. Regulatory focus theory provides a framework for understanding the dominant motivations driving decision-making during goal pursuit. It argues that individuals operate under either a promotion or prevention focus, influencing preferences for stability vs. change. We develop a set of hypotheses regarding regulatory focus match vs. mismatch in teams and their effects on the relative tendency to enact change in decision-making. In the context of dyads involved in a complex management simulation consisting of multiple decision cycles, we empirically demonstrate that a promotion focus match is associated with greater levels of change in decisions than a prevention focus match, regardless of the type of goal pursuit strategy prescribed to dyads. Under regulatory focus mismatch, however, dyads are guided by the goal pursuit strategy (vigilant vs. eager) provided to them, which in turn informs their propensity to implement change.

Keywords: Innovation, Team decision-making, Regulatory focus theory, Leadership effectiveness, Change management, Brand management, Simulation research, Dyads

JEL Classification: C12, C1, C2, C9, D2, d29, D7, D70, D81, M00, M1, M3, M5, O3, O31

Suggested Citation

Spanjol, Jelena and Tam, Leona, To Change or Not to Change: How Regulatory Focus Affects Change in Dyadic Decision-Making (November 1, 2010). Creativity and Innovation Management, Vol. 19, No. 4, pp. 346-363, December 2010; UIC College of Business Administration Research Paper No. 10-11. Available at SSRN: https://ssrn.com/abstract=1717987 or http://dx.doi.org/10.2139/ssrn.1717987

Jelena Spanjol (Contact Author)

Ludwig Maximilian University of Munich (LMU) - Faculty of Business Administration (Munich School of Management) ( email )

Kaulbachstr. 45
Munich, DE 80539
Germany

Leona Tam

University of Wollongong - School of Management, Operations and Marketing ( email )

Building 40
Northfields Avenue
Wollongong, 2522
Australia

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