Heuristics in Organizations: Toward an Integrative Process Model

Abstract

Heuristics play an important role in organizational decision-making. Although management and organizational scholars have contributed significantly to our understanding of heuristics in organizations over the past seven decades, the literature has become fragmented over time. Three parallel streams of research—(1) heuristics and biases, (2) fast-and-frugal heuristics, and (3) simple rule heuristics—have emerged with somewhat conflicting views on the origins, use, and implications of heuristics. Despite their shared focus, these research streams tend to ignore or decry one another and operate in isolated camps. The purpose of our review is to integrate three largely disconnected streams to provide a more holistic view of heuristics in organizations. To do so, we review and synthesize the literature and put forward an integrative process model of heuristics in organizations. The model suggests that management and organizational researchers should pay closer attention to (a) the emergence of individual-level heuristics, (b) the conversion of individual-level heuristics to the organizational level, and (c) the evolution of an organization’s portfolio of heuristics. Based on this novel process model, we set forth a fresh agenda for future research.

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