Risky decision-making under the threat of organizational failure: Examining the role of formal versus psychological ownership


We approach organizational failure as a phenomenon distinct from performance, loss being organizational failure’s most important characteristic. When managers are faced with likely organizational failure, the prospect of losing their organization is arguably a key determinant of their decision-making processes. Managers however are not neccesairily the formal owners of their organization, however they may psychologically feel that it is theirs. This feeling is called psychological ownership. We examine in this project how psychological vis-a-vis formal ownership affects (risky) decision-making when organizational failure is likely. Leveraging big-data techniques this project will contribute not only to the management literature, it will also show how these contemporary techniques allow the investigation of novel research questions.

Accepted at EGOS 2019