Strategy Seminar: Professor Shayne Gary
Impact of Delays and Noise on the Emergence of Strategies
In an experiment using a realistic simulation of a service firm we investigate how two common features of organizational task environments—delays between actions and outcomes and noise in outcome feedback—impact managerial learning and emergent strategies. When multiple viable strategies exist, longer delays bias decision makers towards alternatives that have rapid returns rather than to the global optimum. This bias undermines long run performance and also reduces heterogeneity among firms, as most decision makers converge to the inefficient strategy. In contrast, the impact of noise is limited: noise impairs learning when delays are short and for subjects exploring strategies with slower performance feedback; otherwise noise has little effect on heterogeneity of strategies and outcomes.
Shayne Gary is a Professor of Strategy and Entrepreneurship at UNSW Business School. His research examines how differences in mental models, decision making, and strategies lead to differences in firm performance over time. Shayne investigates these issues through experiments, in-depth fieldwork, and system dynamics simulation modeling. His research has been funded by the Australian Research Council and has been published in the Strategic Management Journal, The Accounting Review, Organization Science, and other top journals. Shayne was awarded the 2016 Jay Wright Forrester Award and is a Managing Editor of the System Dynamics Review. He is a founding member of the Behavioral Strategy Interest Group in the Strategic Management Society and chaired the Interest Group in 2015. He has been a visiting scholar at MIT's Sloan School of Management and at Duke University's Fuqua School of Business. He also consults widely with clients on systems thinking and modeling projects to develop strategies for firm growth, corporate diversification, and mergers and acquisitions. Shayne received his Ph.D. at London Business School and his BSc degree from the Massachusetts Institute of Technology (MIT).