Strategic decision-making processes: the role of management and context
This paper investigates the relationship between the process of strategic decision-making and management and contextual factors. First, drawing on a sample of strategic decisions, it analyzes the process through which they are taken, into seven dimensions: comprehensiveness/rationality, financial re...
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Published in | Strategic management journal Vol. 19; no. 2; pp. 115 - 147 |
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Main Authors | , , |
Format | Journal Article |
Language | English |
Published |
Chichester
John Wiley & Sons, Ltd
01.02.1998
John Wiley and Sons Wiley John Wiley Wiley Periodicals Inc |
Subjects | |
Online Access | Get full text |
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Summary: | This paper investigates the relationship between the process of strategic decision-making and management and contextual factors. First, drawing on a sample of strategic decisions, it analyzes the process through which they are taken, into seven dimensions: comprehensiveness/rationality, financial reporting, rule formalization, hierarchical decentralization, lateral communication, politicization, problem-solving dissension. Second, these process dimensions are related to (1) decision-specific characteristics, both perceived characteristics and objective typologies of strategic decisions, (2) top management characteristics, and (3) contextual factors referring to external corporate environment and internal firm characteristics. Overall, the results support the view that strategic decision processes are shaped by a multiplicity of factors, in all these categories. But the most striking finding is that decision-specific characteristics appear to have the most important influence on the strategic decision-making process, as decisions with different decision-specific characteristics are handled through different processes. The evident dominance of decision-specific characteristics over management and contextual factors enriches the traditional 'external control' vs. 'strategic choice' debate in the area of strategic management. An interpretation of results is attempted and policy implications are derived. |
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Bibliography: | istex:0705FF41DF4C537D7ED01A09698B265F18EDD5D1 ArticleID:SMJ941 ark:/67375/WNG-B2VRLNN2-4 ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23 |
ISSN: | 0143-2095 1097-0266 |
DOI: | 10.1002/(SICI)1097-0266(199802)19:2<115::AID-SMJ941>3.0.CO;2-5 |