Reducing Uncertainty in Supplier Selection Decisions: Antecedents and Outcomes of Procedural Rationality

Journal of Operations Management, Forthcoming

Posted: 24 Jan 2013 Last revised: 28 Jan 2013

See all articles by Dominik Riedl

Dominik Riedl

WHU - Otto Beisheim School of Management

Lutz Kaufmann

WHU - Otto Beisheim School of Management

Carsten Zimmermann

University of San Diego - School of Business Administration

Johan Perols

University of San Diego - Department of Accountancy; University of San Diego - School of Business Administration

Date Written: October 1, 2012

Abstract

Supplier selection decisions are characterized by a high degree of uncertainty. We draw upon the behavioral operations management and decision-making literatures to examine factors that lead to the adoption of procedural rationality as a decision strategy. In addition, we emphasize the effect of procedural rationality on decision-makers’ perceived uncertainty and subsequent supplier decision performance. Our structural equation model with cross-country survey data from 461 respondents in the United States and China reveals that (i) organizational, situational, and personal antecedents significantly influence the use of procedural rationality, (ii) procedural rationality is effective in reducing uncertainty in supplier selection decisions, and (iii) the reduction in decision uncertainty improves supplier decision performance. We also emphasize contextual idiosyncrasies between China and the United States.

Keywords: behavioral operations management, uncertainty, information processing, procedural rationality, supplier selection, structural equation modeling

Suggested Citation

Riedl, Dominik and Kaufmann, Lutz and Zimmermann, Carsten and Perols, Johan, Reducing Uncertainty in Supplier Selection Decisions: Antecedents and Outcomes of Procedural Rationality (October 1, 2012). Journal of Operations Management, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2206647

Dominik Riedl (Contact Author)

WHU - Otto Beisheim School of Management ( email )

Burgplatz 2
Vallendar, 56179
Germany

Lutz Kaufmann

WHU - Otto Beisheim School of Management ( email )

Burgplatz 2
Vallendar, 56179
Germany

Carsten Zimmermann

University of San Diego - School of Business Administration ( email )

5998 Alcala Park
San Diego, CA 92110-2492
United States

Johan Perols

University of San Diego - Department of Accountancy ( email )

223 Olin Hall
5998 Alcalá Park
San Diego, CA
United States

University of San Diego - School of Business Administration ( email )

5998 Alcala Park
San Diego, CA 92110-2492
United States

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