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

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

International Journal of Humanities Education and Social Sciences
Vol 6 No 1 (2026): IJHESS AUGUST 2026

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;