Forecasting management climate theory: construct development and measurement

Purpose Despite technological advancements in supply chain forecasting methods and supporting software, human know-how remains indispensable to the forecasting process. Research suggests that forecasting models that incorporate human feedback will continue to outperform models that do not. The current research develops a theory about forecasting management climate and an associated measurement scale. Design/methodology/approach This research employs an exploratory sequential mixed-methods research design to develop and validate a forecasting management climate construct. We began with an initial qualitative approach to refine and contextualize the concept of forecasting management climate and then used survey and structural equation modeling to assess the reliability and validity of the resulting measurement scale. Findings The findings suggest a new theory about and measures of forecasting management climate, including seven managerial practices (first-order constructs) that characterize an organization’s forecasting climate. Originality/value This research provides empirically validated theory on the dimensions of forecasting management climate that managers can use to inform management best practices aimed toward improving forecasting processes.