The Role of Emotions in Managerial Decision Making Processes under Uncertainty - A Systematic Review

Abstract: Purpose – With an increasing attention given to emotions in decision making processes, this paper investigates how and to what extent they can influence managerial strategic decisions under uncertainty. Therefore, this study explores the existing knowledge and reveals underlying mechanisms. The final aim is to provide valuable insights for the top managerial level (i.e. strategy makers) while at the same time supporting the academic research field by emphasising current gaps and proposing further research areas. Methodology – This qualitative review follows a systematic approach to provide objective findings. 1,200 academic journal articles were screened, out of which 80 were included. Findings – The literature’s current stand remains scarce and inconsistent. It is widely acknowledged that emotions affect decisions directly or moderate other factors that in turn impact decision making processes. Thus, it is undeniable that emotions interfere with more analytical processes in the managerial context. However, no unanimous conclusion could be found regarding their extent, since exogenous intermediate variables come into play and nuance the role of emotions. These factors and their influences are explained in detail in this paper. Contribution – This study contributes to the status quo of this research topic by combining the findings of different research fields and displaying the underlying mechanisms between multiple factors investigated separately until now. On the basis of the analysis, a self- developed framework is created, practical implications are presented and insightful inputs regarding future research are provided, thereby shedding light on a long neglected topic in management.