Decision-making is a complex cognitive activity filled with bias. Leader decision-making is unique because it occurs in a social context. We examine how biases resulting from social network dynamics complicate leaders' decision-making. In particular, we focus on a specific case of leader cognition: nepotism in the succession decisions in the context of family businesses. Succession often leads to a decline in performance because leaders frequently choose family members as their successor, a form of nepotism. We show that even when a leader can overcome individual decision biases, a bias in sampling resulting from families' strong ties can still allow a leader to wrongly conclude that family members are better qualified than external candidates when the opposite is true. We demonstrate this phenomenon using simulation modeling and explore solutions to family business succession planning.\ud
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机译：决策是充满偏见的复杂认知活动。领导者决策是独特的，因为它发生在社会环境中。我们研究了社交网络动态产生的偏见如何使领导者的决策复杂化。特别是，我们专注于领导者认知的特定案例：家族企业背景下的继任决策中的裙带关系。继任通常会导致业绩下降，因为领导者经常选择家庭成员作为继任者，即裙带关系。我们证明，即使领导者可以克服个人的决策偏见，但由于家庭关系牢固而导致的抽样偏见仍然可以使领导者错误地得出结论：相反的事实，家庭成员比外部候选人具有更好的资格。我们使用仿真模型演示了这种现象，并探索了家族企业继任计划的解决方案。\ ud
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