Superstition and decision-making: Contradiction or complement?

This article discusses the relationship between superstition and business decision-making in Chinese business communities. Although superstition constitutes a crucial part 14 of business life in Chinese societies, the management literature has been virtually silent with respect to the phenomenon of superstitious business decision-making. Through discussing the pros and cons of integrating superstition into a decision-making process, this article helps managers, whether superstitious or not, understand the phenomenon. There are two key linkages between superstition and decision-making. On the one hand, the irrationality normally associated with superstition and the supposed rationality of decision-making suggest an apparent contradiction between the two. On the other hand, superstition and decision-making may be complementary in the sense that the former can be used as a means to cope with the uncertainty associated with the latter. The complementary aspect suggests that superstition fulfills two main functions: providing an additional source of information and reducing uncertainty-induced anxiety. These functions come with certain costs. Since superstition is. by definition, not supported by scientific evidence, a superstitious practice may be completely nonsensical. The risk of basing a decision on such a practice is obvious. Even if a superstitious practice is valid metaphysically, gaining access to this stock of knowledge is problematic. No matter whether the information provided by superstitious sources is valid or not, the information may distract managers from their normal decision-making processes. Finally, the apparent contradiction between superstition and decision-making may give rise to cognitive dissonance among managers who believe in rational business decision-making. Superstitious beliefs and behaviors are widespread in virtually all human societies. With the trend toward globalization, it pays for companies to be superstition-conscious and to develop an understanding of the superstitious practices in countries where they operate.