Abstract:
This research study was completed to determine whether a relationship exists between executive and senior manager personality styles and the tendency to apply hyperbolic discounting in their strategic decision making.
Experiments were designed to test for hyperbolic discounting when comparing monetary value over time periods, as well as real-life scenarios. An online questionnaire was disseminated to executive and senior management respondents who formed the sample population from the FMCG industry that purported a monetary value experiment, which was based on a previous study done by Chark, Chew, and Zhong (2012), followed by four scenarios with high levels risk and uncertainty. The MBTI scores and organisational level (executives and senior managers) were supplied by the respondents and this was used to compare the MBTI Intuition and Judging personality styles with the respondents answers as per the questionnaires.
The results revealed that when using monetary value comparisons over time the respondents were prone to apply hyperbolic discounting. However, when the scenario questions were analysed there was a diminishing behaviour in the tendency to apply hyperbolic discounting. There was also no significant relationship between the use of MBTI Intuition or Judging between the two organisational levels in strategic decision making. No significance was found in the MBTI personality style and hyperbolic discounting.
Recommendations were made based on the results and what impact it could have for business as well as suggestions on further research.
