Comprehensiveness and Innovation in Strategic Decision Making: The Moderating Role of Connectivity

2017 ◽  
Vol 2017 (1) ◽  
pp. 14481
Author(s):  
Yair Friedman
Keyword(s):  
Decision Making ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Moderating Role

Seeking input when the train has left the station: The decoupling of participative strategic decision-making processes and the role of new technology in symbolic management

2021 ◽  
pp. 147612702110468
Author(s):  
James D Westphal ◽  
David H Zhu ◽  
Rajyalakshmi Kunapuli
Keyword(s):  
Decision Making ◽  
New Technology ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Strategic Option ◽  
Symbolic Management ◽  
Longitudinal Survey Data ◽  
Decision Making Processes ◽  
Executive Suite

We examine the symbolic management of participative strategic decision-making programs that purportedly use crowdsourcing technology to solicit strategic input below the executive suite, but are often decoupled from actual strategic decision making. Specifically, top management may decide on a strategic option before soliciting input under the program. The first portion of our theoretical framework explains why disclosure of a participative strategic decision making program in communicating with security analysts is associated with more positive analyst appraisals, despite decoupling, and why the benefits of disclosure are amplified to the extent that leaders highlight the use of crowdsourcing technology in the program. The second portion of our framework addresses the antecedents of symbolic adoption. We suggest that firms are more likely to adopt and decouple a program when the CEO has a personal friendship tie to the CEO of another firm that has adopted and decoupled, especially following relatively negative analyst appraisals. Analysis of a unique dataset that includes longitudinal survey data from executives supported our predictions.

The Role of Structured Conflict and Consensus Approaches inVirtual Team Strategic Decision Making

2008 ◽  
pp. 1480-1497
Author(s):  
Jerry Fjermestad
Keyword(s):  
Decision Making ◽  
Group Support Systems ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Face To Face ◽  
Systems Research ◽  
Computer Mediated ◽  
Computer Mediated Communications ◽  
Group Member

Do procedures that improve face-to-face decision meetings also improve virtual “meetings?” Might the effectiveness of such procedures improve with practice? This longitudinal experiment investigated the efficiency, effectiveness and group member perceptions of dialectical inquiry (DI) and constructive consensus (CC) approaches to strategic decision making in a virtual (distributed) computer-mediated- communications (CMC) environment. There were no differences between DI and CC groups in terms of decision effectiveness. However, this result has not been unusual in CMC research. DI groups had significantly higher perceived depth of evaluation than CC groups. CC groups reported greater decision acceptance and willingness to work together again than DI groups. The results are discussed in terms of their implications for group support systems research and design in the era of the World Wide Web.

scholarly journals M&As get another assist: when CEOs add intuition to the decision mix

2019 ◽  
Vol 41 (3) ◽  
pp. 57-65 ◽  
Author(s):  
Hannu Kuusela ◽  
Siiri Koivumäki ◽  
Mika Yrjölä
Keyword(s):  
Decision Making ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Strategic Decisions ◽  
Group Interactions ◽  
Content Type ◽  
Individual Level ◽  
Top Executives ◽  
Positive Effects

Purpose The purpose of this paper is to analyze the use of intuition in successful merger and acquisition (M&A) decisions. M&As are strategic decisions that can create growth, open up new markets and strengthen the company’s position and competence portfolio. Strategic decisions involve, by their very nature, considerable investments and have company-wide and long-lasting implications. At the same time, the decision-makers have access to large amounts of data from various sources, but these data are often uncertain and inaccurate and entail numerous assumptions. Therefore, M&A decisions are only rational to a degree, and emotional elements, such as intuition, likely play a significant role. Design/methodology/approach Acknowledging how critically important, but also how difficult, M&As are, the authors analyzed nine instances (cases) of successful acquisitions, in which the executives believed that the role of intuition was critical. Findings The findings show that intuition in strategic decision-making emerges on three levels: individual, collective and environmental. Practical implications This paper encourages top executives to proactively acknowledge and take advantage of intuition in their strategic decision-making. It proposes a framework to help with these endeavors. Originality/value This paper contributes by highlighting that intuition is not just a factor on an individual level; it can also surface from group interactions as well as the environment. Surprisingly, all the executives interviewed spoke of the positive effects that intuition can have on acquisition decisions. This is in contrast to the dominant view that considers intuition as nonrational and even as a form of bias.

scholarly journals Behavioral Strategy and the COVID-19 Disruption

2020 ◽  
Vol 46 (8) ◽  
pp. 1322-1329
Author(s):  
Nicolai J. Foss
Keyword(s):  
Decision Making ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Behavioral Strategy ◽  
Management Research ◽  
Strategy Research ◽  
Great Insight ◽  
Fundamental Uncertainty ◽  
Insight Into

What can strategic management research do to help to make sense of the COVID-19 disruption, and what are the implications of the disruption for the strategy field? I argue that among the streams in strategy research, behavioral strategy is uniquely situated in terms of providing a psychologically based interpretive lens that could lend great insight into decision making in extreme conditions. However, the disruption also points to weakness in current behavioral strategy thinking, notably with respect to the role of models vis-à-vis judgment in strategic decision making, the deeply social (political, institutional) nature of strategy making, and the treatment of fundamental uncertainty.

The role of heuristic-driven biases in entrepreneurial strategic decision-making: evidence from an emerging economy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maqsood Ahmad ◽  
Syed Zulfiqar Ali Shah ◽  
Yasar Abbass
Keyword(s):  
Decision Making ◽  
Emerging Economy ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Decision Making Process ◽  
Strategic Decisions ◽  
Content Type ◽  
The Relationship

PurposeThis article aims to clarify the mechanism by which heuristic-driven biases influence the entrepreneurial strategic decision-making in an emerging economy.Design/methodology/approachEntrepreneurs' heuristic-driven biases have been measured using a questionnaire, comprising numerous items, including indicators of entrepreneurial strategic decision-making. To examine the relationship between heuristic-driven biases and entrepreneurial strategic decision-making process, a 5-point Likert scale questionnaire has been used to collect data from the sample of 169 entrepreneurs who operate in small- and medium-sized enterprises (SMEs). The collected data were analyzed using SPSS and Amos graphics software. Hypotheses were tested using structural equation modeling (SEM) technique.FindingsThe article provides empirical insights into the relationship between heuristic-driven biases and entrepreneurial strategic decision-making. The results suggest that heuristic-driven biases (anchoring and adjustment, representativeness, availability and overconfidence) have a markedly negative influence on the strategic decisions made by entrepreneurs in emerging markets. It means that heuristic-driven biases can impair the quality of the entrepreneurial strategic decision-making process.Practical implicationsThe article encourages entrepreneurs to avoid relying on cognitive heuristics or their feelings when making strategic decisions. It provides awareness and understanding of heuristic-driven biases in entrepreneurial strategic decisions, which could be very useful for business actors such as entrepreneurs, managers and entire organizations. Understanding regarding the role of heuristic-driven biases in entrepreneurial strategic decisions may help entrepreneurs to improve the quality of their decision-making. They can improve the quality of their decision-making by recognizing their behavioral biases and errors of judgment, to which we are all prone, resulting in a more appropriate selection of entrepreneurial opportunities.Originality/valueThe current study is the first to focus on links between heuristic-driven bias and the entrepreneurial strategic decision-making in Pakistan—an emerging economy. This article enhanced the understanding of the role that heuristic-driven bias plays in the entrepreneurial strategic decisions and more importantly, it went some way toward enhancing understanding of behavioral aspects and their influence on entrepreneurial strategic decision-making in an emerging market. It also adds to the literature in the area of entrepreneurial management specifically the role of heuristics in entrepreneurial strategic decision-making; this field is in its initial stage, even in developed countries, while, in developing countries, little work has been done.

Strategic decision-making

2018 ◽  
Vol 41 (1) ◽  
pp. 2-28 ◽  
Author(s):  
Satyanarayana Parayitam ◽  
Chris Papenhausen
Keyword(s):  
Decision Making ◽  
Conflict Management ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Decision Making Process ◽  
Content Type ◽  
Decision Outcomes ◽  
Seeking Behavior ◽  
The Relationship

Purpose This paper aims to investigate the effect of cooperative conflict management on agreement-seeking behavior, agreement-seeking behavior on decision outcomes, moderating role of competence-based trust on the relationship between agreement-seeking behavior and decision outcomes, and mediating role of agreement-seeking behavior between cooperative conflict management and decision outcomes. Design/methodology/approach Using a structured survey instrument, this paper gathered data from 348 students enrolled in a strategic management capstone course that features strategic decision-making in a simulated business strategy game. The data from 94 teams were collected from the student population using a carefully administered instrument. The data were aggregated after running the inter-rater agreement test and the analyzed to test the hypotheses. Findings The results from the hierarchical regression of the complex moderated mediation model reveal that cooperative conflict management is positively related to agreement-seeking behavior, and agreement-seeking behavior mediates the relationship between cooperative conflict management and decision outcomes. The results also suggest that competence-based trust acts as a moderator in the relationship between agreement-seeking behavior and decision quality; agreement-seeking behavior and team effectiveness, and agreement-seeking behavior and decision commitment. Results also support mediation of agreement-seeking behavior between cooperative conflict management and decision outcomes. Research limitations/implications The present research is based on self-report measures, and hence, the limitations of social desirability bias and common method bias are inherent. However, adequate care is taken to minimize these limitations. The research has implications for the strategic decision-making process literature. Practical implications In addition to the strategic management literature, this study contributes to practicing managers. The study suggests that competence-based trust plays a vital role in decision effectiveness. Administrators need to select the members in the decision-making process who have competence-based trust on one another and engage in agreement-seeking behavior. Social implications The findings from the study help in creating a fruitful social environment in organizations. Originality/value This study provides new insights about the previously unknown effects of cooperative conflict management and agreement-seeking behavior in strategic decision-making process.

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