Toward a General Theoretical Model of Computer-Based Factors That Affect Managerial Decision Making

Graphics and interactive visualization components are being used to display complex structures and relationships (Gershon et al., 1998), facilitate comparative analysis (Goddard, 2000; Sauter, 1999), assist in manufacturing production and project scheduling (Zhang, 1998), find information (Ahlberg et al., 1992), recognize patterns or organize data by geographic region (Smelcer and Carmel, 1997; Swink and Speier, 1999), sequence events (Pack, 1998), portray uncertainty (Lamberti and Wallace, 1987), and visualize large amounts of data (Gershon et al., 1998; Lohse et al., 1995; Zhang, 1996). Since these capabilities are directly related to the management task being performed, it is important to understand the applicability and effectiveness of the various presentation formats on decision making in order to further enhance the efficacy of software systems that support management activities. A multitude of formats including bar charts, pie charts, scatter plots, control charts, time series charts, maps, PERT charts, and others have been used to present information graphically (Dix et al., 1998; Preece et al., 1994; Shneiderman, 1998). All of these have the potential for increasing managerial understanding of information, provided that managers are appropriately trained in reading and using these formats (Elikai et al., 1999; Lucas 1981). Unfortunately, the various information formats have not been used consistently for management decision making and, in fact, some managers may select an inappropriate format in a particular decision-making situation. Efforts to associate particular tasks with presentation formats have been shown to be inconclusive (Carey and White, 1991; DeSanctis, 1984; Dickson et al., 1986; Jarvenpaa and Dickson, 1988; Levy et al., 1996; Montazemi and Wang, 1988; Vessey, 1991). For example, some studies report that line graphs are more easily interpreted and improve decision making (Zmud, 1978), while other studies report that bar charts are more effective (Dickson et al., 1986). Jarvenpaa and Dickson (1988) and Dickson et al. (1986) initiated changes in research methodology such that characteristics of the task being performed were factored into experimental designs. In other words, the cognitive fit between characteristics of the task and how information is presented was shown to affect decision-making performance (Umanath and Vessey, 1994; Vessey, 1991). On the other hand, factors other than task and cognitive fit, such as social influence (Tractinsky and Meyer, 1999), were not generally considered in experiments, even though these too were shown to be important factors on decision making. We at tribute these omissions to the lack of a general theoretical model regarding task and presentation format on decision making. Hence, an integrative model that encompasses the various factors from previous research is needed in order to serve as a framework for conducting future work. Therefore, the goals of this article are twofold: (1) to develop a theoretical model of managerial decision making based on characteristics of the individual, the task being performed, and how information is presented; and (2) to demonstrate the application of the model within the context of a decision-making experiment. The remaining sections of this article are organized as follows: the next section discusses previous research in terms of a general model that defines the impact of presentation format on decision making. This is followed by the development of an enhanced model that introduces new factors and relationships that affect decision making. Selected elements of the new model, specifically those elements that have not previously been considered involving complex decision-making tasks, are tested in an empirical study to demonstrate the applicability of the new model. The article concludes by presenting the results of the study and discussing implications of the model for future research. …