Business Decision Making
Groupthink has also been applied to the business world. It has been used to explain Ford Motor Company’s decision to produce and market the Edsel, as well as the suspicious business practices of companies like Beech-Nut and E.F. Hutton. In addition to its use in explaining business failures, groupthink has also been utilized for training purposes. Groupthink videos and questionnaires, both designed for use in business management, were best sellers in the 1990s (Esser, 1998). Paulus (1998) even suggests that the corporate world is partly to blame for the widespread acceptance of groupthink in the absence of evidence. He wrote, “If [social scientists] do not maintain significantly higher standards than the self-promoting management gurus, the credibility of our field will suffer greatly” (p. 371). He, like others, emphasizes the need for further research, so that groupthink does not become “a convenient label with little explanatory or predictive value” (Esser, 1998, p. 126).
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