University of Twente Student Theses
As of Friday, 8 August 2025, the current Student Theses repository is no longer available for thesis uploads. A new Student Theses repository will be available starting Friday, 15 August 2025.
Augmenting Decision-Making in Purchasing: Improving on Bounded Rationality effects with the use of Industry 4.0 Technologies
Gumbinas, Marius (2025) Augmenting Decision-Making in Purchasing: Improving on Bounded Rationality effects with the use of Industry 4.0 Technologies.
|
PDF
511kB |
| Abstract: | With the developments of Industry 4.0, its related Task Augmentation technologies have proved to be an effective tool for managing increased data volumes and complexity. This study explores how Task Augmentation technologies (such as AI, Business Intelligence, and risk analysis tools) can reduce the cognitive limitations of Purchasers in a strategic-level context. Using Bounded Rationality theory as a part of Transaction Cost Economics, the study identifies common cognitive constraints such as satisficing, heuristic thinking, over-reliance on tacit knowledge that may be seen in Purchasing. With the selected level of analysis in Strategic Purchasing, including supplier selection and negotiation, this study examines effects encountered in real-life business scenarios. Thematic analysis based on a sample of 10 semi-structured interviews found that AI-supported or Internet-supported supplier identification, Business Intelligence tools integrated in ERP systems, and other tech applications were already in use in current day Purchasing practices. The findings suggest that the tools can assist in managing bounded rationality effects of purchasers, as they provide human users with data-driven insights. Furthermore, the study found usual barriers to I4.0 technology adoption, such as budget limitations, limited management support or lack of a business case in technology adoption. To facilitate and improve the implementation and adoption of new technologies, study finds gradual change management, use of expert technology users, and attention to user needs to be of upmost importance. |
| Item Type: | Essay (Bachelor) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | International Business Administration BSc (50952) |
| Link to this item: | https://purl.utwente.nl/essays/106852 |
| Export this item as: | BibTeX EndNote HTML Citation Reference Manager |
Show download statistics for this publication
Show download statistics for this publicationRepository Staff Only: item control page