The Influence of Overconfidence Bias and Digital Literacy on Decision-Making Quality Among Digital Business Practitioners

Jessica Kaligis; Audika Briantari   Briantari Zaen

doi:10.55227/ijhess.v6i1.2440

Authors

Jessica Kaligis UNIVERSITAS NEGERI SURABAYA
Audika Briantari Briantari Zaen Univeristas Negeri Surabaya

DOI:

https://doi.org/10.55227/ijhess.v6i1.2440

Abstract

This study aims to analyze the influence of Overconfidence Bias and Digital Literacy on Quality DecisionMaking among digital business actors. The research employed a quantitative approach. Data were collectedthrough an online questionnaire distributed to 144 digital business actors, including marketplace sellers, onlineshop owners, resellers, dropshippers, and digital-based MSMEs. The research instrument consisted of 13 Likert-scale items adapted from previous studies. Data were analyzed using the Partial Least SquaresStructural Equation Modeling (PLS-SEM) method with SmartPLS 3 software. The results indicate thatOverconfidence Bias has a negative and significant effect on Quality Decision Making, while Digital Literacyhas a positive and significant effect on Quality Decision Making. Furthermore, Digital Literacy demonstrates a more dominant influence than Overconfidence Bias in explaining decision-making quality. These findingssuggest that enhancing digital literacy and controlling cognitive biases are crucial factors in producing morerational, objective, and high-quality business decisions in the digital era.

Keywords: Overconfidence Bias, Digital Literacy, Quality Decision Making, Digital Business Practitioners;

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