Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Prospect theory: an analysis of corporate actions and priorities in pandemic crisis

Prospect theory: an analysis of corporate actions and priorities in pandemic crisis The purpose of this study is to examine and interpret the findings from different sources on the corporate decisions during COVID-19.Design/methodology/approachThe COVID-19 is a new phenomenon; grounded theory research approach is adopted to develop propositions on prospect theory and strategic decisions. The paper examines and interprets the findings from different sources on the corporate decisions during COVID-19.FindingsConventionally, it is believed that innovation brings risks, and individuals preferred certainty over uncertainty, even if the gains under uncertainty were twice as high. But, the results of the study indicate a divergent trend. Under threat perceptions of risks, companies explore significant opportunities and possibilities for organizational growth.Practical implicationsThe study provides a framework to analyze the strategic decisions of corporate enterprises. The decisions replicate value function as concave in a gain situation and convex in a loss realm in times of pandemic crises.Originality/valueThis paper uses “actions taken” by enterprises offering various solutions in the testing times. The study is multidisciplinary in nature; it analyses the transformation strategic decisions in the context of economic and social dimensions for surviving the pandemic crises. The study provides a foundation for future research, as inferences are based on select examples. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Innovation Science Emerald Publishing

Prospect theory: an analysis of corporate actions and priorities in pandemic crisis

Loading next page...
 
/lp/emerald-publishing/prospect-theory-an-analysis-of-corporate-actions-and-priorities-in-SMakwLqwjl

References (43)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1757-2223
DOI
10.1108/ijis-10-2020-0241
Publisher site
See Article on Publisher Site

Abstract

The purpose of this study is to examine and interpret the findings from different sources on the corporate decisions during COVID-19.Design/methodology/approachThe COVID-19 is a new phenomenon; grounded theory research approach is adopted to develop propositions on prospect theory and strategic decisions. The paper examines and interprets the findings from different sources on the corporate decisions during COVID-19.FindingsConventionally, it is believed that innovation brings risks, and individuals preferred certainty over uncertainty, even if the gains under uncertainty were twice as high. But, the results of the study indicate a divergent trend. Under threat perceptions of risks, companies explore significant opportunities and possibilities for organizational growth.Practical implicationsThe study provides a framework to analyze the strategic decisions of corporate enterprises. The decisions replicate value function as concave in a gain situation and convex in a loss realm in times of pandemic crises.Originality/valueThis paper uses “actions taken” by enterprises offering various solutions in the testing times. The study is multidisciplinary in nature; it analyses the transformation strategic decisions in the context of economic and social dimensions for surviving the pandemic crises. The study provides a foundation for future research, as inferences are based on select examples.

Journal

International Journal of Innovation ScienceEmerald Publishing

Published: Sep 5, 2022

Keywords: Innovation; Prospect theory; Risk; Pandemic; COVID-19; Crises; Strategic decisions; Corporate enterprises

There are no references for this article.