Hedonic motivations and managers’ information choices

56 Pages Posted: 11 Jan 2021 Last revised: 21 May 2023

See all articles by Darren Bernard

Darren Bernard

University of Washington - Department of Accounting

Nicole L. Cade

University of Pittsburgh - Accounting Group

Elizabeth Connors

affiliation not provided to SSRN

Ties de Kok

University of Washington - Michael G. Foster School of Business

Date Written: May 18, 2023

Abstract

Using direct measures of information acquisition from a business intelligence provider, we examine the actions managers take to learn about their business. We first provide descriptive evidence that managers of small businesses adopt the business intelligence service due to business complexity and growth expectations, and, after adoption, managers become heavy consumers of financial and related nonfinancial metrics. We then show that, despite offsetting economic motivations, the hedonic motivations of managers appear to significantly affect their information diet—i.e., managers consume information, at least in part, based on their expectation of how the information will make them feel. These findings highlight a significant friction for managers’ information processing and inform the design of pervasive data products such as dashboards.

Keywords: Hedonic motivations; information acquisition; business intelligence.

JEL Classification: M41, D83, G40

Suggested Citation

Bernard, Darren and Cade, Nicole L. and Connors, Elizabeth and de Kok, Ties, Hedonic motivations and managers’ information choices (May 18, 2023). Available at SSRN: https://ssrn.com/abstract=3752507 or http://dx.doi.org/10.2139/ssrn.3752507

Darren Bernard (Contact Author)

University of Washington - Department of Accounting ( email )

PACCAR Hall
4273 E Stevens Way NE
Seattle, WA 98195-3200
United States

Nicole L. Cade

University of Pittsburgh - Accounting Group ( email )

United States

Elizabeth Connors

affiliation not provided to SSRN

Ties De Kok

University of Washington - Michael G. Foster School of Business ( email )

Box 353200
Seattle, WA 98195-3200
United States

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