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The Technology Effect: How Perceptions of Technology Drive Excessive Optimism

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Abstract

Purpose

We propose that constant exposure to advances in technology has resulted in an implicit association between technology and success that has conditioned decision makers to be overly optimistic about the potential for technology to drive successful outcomes. Three studies examine this phenomenon and explore the boundaries of this “technology effect.”

Design/Methodology/Approach

In Study 1, participants (N = 147) made simulated investment decisions where the information about technology was systematically varied. In Study 2 (N = 143), participants made decisions in a resource dilemma where technology was implicated in determining the amount of a resource available for harvest. Study 3 (N = 53 and N = 60) used two implicit association tests to examine the assumption that people associate technology with success.

Findings

Results supported our assumption about an implicit association between technology and success, as well as a “technology effect” bias in decision making. Signals of high performance trigger the effect, and the effect is more likely when the technology invoked is unfamiliar.

Implications

Excessive optimism that technology will result in success can have negative consequences. Individual investment decisions, organizational decisions to invest in R&D, and societal decisions to explore energy and climate change solutions might all be impacted by biased beliefs about the promise of technology.

Originality/Value

We are the first to systematically examine the optimistic bias in the technology effect, its scope, and boundaries. This research raises decision makers’ awareness and initiates research examining how the abstract notion of technology can influence perceptions of technological advances.

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Notes

  1. Overconfidence is conceptualized both as certainty that one’s prediction (success or failure) is accurate (e.g., Klayman et al. 1999), and as certainty that a positive or successful outcome is more likely than it actually is (e.g., Malmendier and Tate 2005). The latter is akin to definitions of overoptimism (e.g., Jager et al. 2002) and is the type of overconfidence focused on in this manuscript. Hereafter, we refer to this as overoptimism.

  2. Moore’s law is a description of the long-term trend that integrated circuits have tended to double in capacity every 2 years. This is most commonly linked to computer processing speed by the general public but relates also to things such as memory capacity and the number of pixels in digital cameras.

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Author information

Authors and Affiliations

  1. Department of Management, University of South Dakota, Vermillion, SD, USA

    Brent B. Clark

  2. Department of Management, University of Missouri, Columbia, MO, USA

    Christopher Robert

  3. Department of Marketing, University of Missouri, Columbia, MO, USA

    Stephen A. Hampton

Authors
  1. Brent B. Clark
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  2. Christopher Robert
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  3. Stephen A. Hampton
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Corresponding author

Correspondence to Brent B. Clark.

Appendix

Appendix

Category Exemplars (IAT-1: Technology Industries)

“Technology”: Robotics, Semiconductors, Biotech, Pharmaceuticals, Aerospace, Nanotech, Genetics

“Non-Technology”: Trucking, Livestock, Restaurants, Groceries, Textiles, Insurance, Apparel

Category Exemplars (IAT-2: Technological Products)

“Technology”: Laser, Fiber Optics, Wifi, Satellite, Software, Nuclear Energy, Solar Cells

“Non-Technology”: Soap, Ruler, Shoe, Chair, Backpack, Hammer, Brick

Evaluative Exemplars (Both IAT-1 and -2)

“Success”: Victory, Solution, Achievement, Triumph, Win, Accomplishment, Advancement

“Failure”: Defeat, Flop, Lose, Breakdown, Fiasco, Malfunction, Disaster

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Clark, B.B., Robert, C. & Hampton, S.A. The Technology Effect: How Perceptions of Technology Drive Excessive Optimism. J Bus Psychol 31, 87–102 (2016). https://doi.org/10.1007/s10869-015-9399-4

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