Recently, behavioral operations management has seen an increased focus on understanding the role of humans in the decisions and processes these models aim to capture. However, still little is known about the factors that determine the observed behavioral heterogeneity. With this realization, Neslihan Özlü aspires to create knowledge about the drivers of this “behavioral heterogeneity” with the four studies in her dissertation The Heterogeneity of Behavior in Operations Processes. Neslihan Özlü defended her dissertation at Stockholm Business School on May 12th.

Neslihan Özlü with her dissertation The Heterogeneity of Behavior in Operations Processes. Photo: Maria Stoetzer

When human processing in decision making, choice-making, or forecasting is not investigated enough, these differences may remain unnoticed. Today’s business world agrees with the people’s role in the processes, however, needs a better understanding of the differences between humans to develop policies that embrace these differences and feed the models and smart systems being aware of the potential behavioral heterogeneity. With the advancements in technology and data analytics, we have necessary tools and techniques to make thorough analysis and generate insights.

- As potential drivers of heterogeneity, I studied experience, and the use of available information, in three articles and preferences and the trade-offs in one article, says Neslihan.

I studied different settings such as ordering in an industrial setting, retailing, as well as forecasting in an economic setting. Some of the findings of the studies have practical implications underscoring the need for managers to familiarize themselves with the work history and lifetime experiences of their employees. Also, our findings on customer choices may open up new avenues for developing better policies of fulfillment services in retail operations.

Neslihan Özlü in conversation with the opponent Professor Kai Hoberg, Department of Operations and Technology, Kühne Logistics University, Hamburg. Photo: Maria Stoetzer

We cannot improve the systems without knowing the potential drivers of behavioral heterogeneity; people are deviating for a reason. Information and experience, as well as the preferences and the trade-offs in choices, decisions, or forecasts, can be pointed out as the potential drivers of heterogeneity. This concept has its importance in decision support systems. If companies are investing a significant amount of money in those systems, and they are overwritten by humans, this is not a good practice. With more personalized treatment of human processing, we can more effectively facilitate decision-making.

- Most importantly, we need to understand the drivers of behavioral heterogeneity to be able to truly feed smart systems with how human processing works, and how it differs from individual to individual concludes Neslihan.

Supervisors Associate Professor Olov Isaksson, Associate Professor Fredrik Eng Larsson, Professor Thomas Hartman and Neslihan Özlü. Photo: Maria Stoetzer

Read the dissertation The Heterogeneity of Behavior in Operations Processes

Read more about Neslihan Özlü