THE TRANSFORMATIVE EFFECT OF COGNITIVE BIASES AND THE DIGITALIZATION PROCESS ON FIRM PERFORMANCE

In today's world, the digitalization process is profoundly transforming firms' business practices and strategic decision-making mechanisms. However, this transformation is not confined to the adoption of technological innovations; it also encompasses the cognitive biases that significantly influence managers' decision-making processes. The purpose of this study is to thoroughly understand the effects of cognitive biases and the digitalization process on firm performance.To explore the transformative effects of digitalization on firms and the role of cognitive biases in this process, qualitative data collection and analysis methods were employed. Firms that had embraced the digitalization process and were influenced by cognitive biases during this journey were selected for the study.The perceptions of participants regarding the digitalization process, the challenges they faced, and the influence of cognitive biases in this context were investigated using a semi-structured interview technique during the data collection phase. The collected data were analyzed through thematic analysis, and the identified themes were interpreted to understand the relationship between digitalization and cognitive biases.The findings of the research reveal that cognitive biases present a significant obstacle in digitalization processes. As a result, the study proposes strategies and recommendations aimed at reducing cognitive biases in firms and enhancing the efficiency of the digitalization process.