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Research Article

Cognitive Biases, SCM Decision-Making Quality, and Logistics Performance: An Empirical Investigation

Changjoon Lee1 · Soohyo Kim2

1 School of Business and Economics, University of Ulsan, 2 Sogang Business School, Sogang University

Published: June 2026 · Vol. 55 No. 3 · pp. 1335-1359

DOI: https://doi.org/10.17287/kmr.2026.55.3.1335

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Abstract

This study examines how cognitive biases from behavioral economics impact supply chain management (SCM) decision-making quality and logistics performance. Using structural equation modeling with 314 survey responses from SCM professionals, we investigated the effects of three core cognitive biases: confirmation bias, availability heuristic, and loss aversion on supplier selection quality and inventory management accuracy, and their subsequent impact on logistics performance. Results demonstrate that all three cognitive biases significantly impair both supplier selection quality and inventory management accuracy. Furthermore, both supplier selection quality and inventory management accuracy positively influence logistics performance. These findings extend behavioral economics principles to SCM contexts, providing empirical evidence that human cognitive limitations systematically affect operational decisions and performance outcomes. The study offers practical implications for developing bias-aware decision-making processes and highlights the need for structured evaluation frameworks in supply chain operations.
Keywords: Behavioral economicsCognitive biasesSupply chain managementDecision-making qualityLogistics performance