The Role of Analytics in Strategic Decisions

2022 ◽  
pp. 109-120
Keyword(s):  
Strategic Decisions

The risk associated with strategic decisions: is it a marketing issue?

2019 ◽  
Vol 35 (1) ◽  
pp. 6-8
Author(s):  
Davide Settembre-Blundo ◽  
Alfonso Pedro Fernández del Hoyo ◽  
Fernando Enrique García-Muiña
Keyword(s):  
Design Methodology ◽  
Management Practice ◽  
Current Debate ◽  
Strategic Decisions ◽  
New Approach ◽  
Content Type ◽  
Marketing Function ◽  
Strategic Approach ◽  
Management Perspective

Purpose The purpose of this paper is to analyze the strategic management of risks in companies from a marketing management perspective and to provide some guidance for management practice. Design/methodology/approach This paper presents the authors’ viewpoint, and it conceptualizes a new approach to risk management. Findings The conceptual discussion has opened up a possible new way for enterprises, especially SMEs, to start taking a strategic approach to risk. Originality/value This paper would like to contribute to the current debate on the role of marketing function in managerial practice beyond the classic four Ps.

scholarly journals Optimizing the Clerics (Religious Scholars) Role in Actualizing Good Governance Concept

2018 ◽  
Vol 1 (1) ◽  
pp. 23-30
Author(s):  
M Muhammadong ◽  
St Habibah ◽  
Dalilul Falihin ◽  
Muhammad Adnan Hudain
Keyword(s):  
Development Process ◽  
Good Governance ◽  
Development Programs ◽  
City Development ◽  
Strategic Decisions ◽  
The Government ◽  
And Function ◽  
Role And Function ◽  
Descriptive Method

The purpose of this research is to describe the role of the clerics to actualize good governance concept in the development of Makassar City. Therefore, clerics are not merely issuing “fatwas” (religious advises) for the sake of society, but also, clerics can also play a role in development process. The method applied in this research is a descriptive method. While the approach applied is a qualitative method because the issues that are studied are phenomenological. The results show that the role of clerics is optimal in actualizing good governance concept in Makassar City development process. The role and function of the clerics can be represented as a community counselor in line with the government's role as servant and protector of society. Moreover, the policy taken by the government has been supported by all the clerics in actualizing development programs for the mutual good of the societies. In making strategic decisions, clerics sometimes contribute and suggestions to the government to improve social support of that decision

Does deal size moderate the effects of board faultlines? Evidence from acquisitions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Daniel Tidbury ◽  
Steven F. Cahan ◽  
Li Chen
Keyword(s):  
Fixed Effects ◽  
Quantitative Research ◽  
Future Research ◽  
Research Approach ◽  
Strategic Decisions ◽  
Negative Effects ◽  
Content Type ◽  
Instrumental Variable Analysis

Purpose Board faultlines, which reflect intrinsic divisions of board members into relatively homogeneous subgroups, are associated with poor firm performance. This paper aims to extend the existing board faultline research by examining how acquisition deal size moderates the negative implications of board faultlines. Design/methodology/approach This paper uses a sample of acquisitions and a quantitative research approach to conduct statistical analysis. Findings Using a sample of acquisitions announced between 2007 and 2016, this paper finds evidence suggesting that strong faultlines are associated with poorer acquisition outcomes in the long-term, but not in the short term. Further, this paper finds that the effect of faultline strength on long-term acquisition outcomes is weaker for larger acquisition deals than smaller acquisition deals. The findings are consistent with deal size moderating the relation between faultlines and acquisition outcomes. Research limitations/implications This paper addresses possible endogeneity through firm fixed effects and instrumental variable analysis. Although this paper provides evidence on the moderating role of deal size in the context of faultlines, future research could examine the role of additional moderators, such as pro-diversity, trust, board leadership and board and task characteristics. Practical implications The findings suggest that boards need to be aware of situations where the negative effects of faultlines are more likely to come to the fore. For example, faultlines are more likely to play a role in more routine, obscure monitoring than for high-profile strategic decisions. Originality/value The study is multidisciplinary as it draws on the management, organizational behaviour and psychology and finance literature. It contributes to the developing literature on faultlines in several important ways. First, this paper supports their view that faultlines have adverse effects on board performance by showing that faultlines negatively impact discrete strategic investment decisions. Second, this paper provides evidence that deals size moderates the faultline-acquisition performance relation, indicating that the role of faultlines is contextual. Third, this paper finds evidence that suggests investors do not factor in board faultlines when responding to acquisition announcements.

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.

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.

How financial systems and firm strategy impact the choice of innovation funding

2019 ◽  
Vol 23 (2) ◽  
pp. 251-272
Author(s):  
Jaime Sierra
Keyword(s):  
Decision Making ◽  
Firm Strategy ◽  
Alternative View ◽  
Illustrative Case ◽  
Strategic Decisions ◽  
Policy Makers ◽  
Content Type ◽  
Investment Theory ◽  
Innovation Characteristics

Purpose The funding of innovation is explained by typical cost-based financial approaches. This paper breaks away from such tradition, and the purpose of this paper is to propose an alternative view where innovation funding decisions are strategic and concern interactions between actors – each with their own characteristics and strategic intentions – project features, and traits of the setting in which interactions take place. Design/methodology/approach This paper builds up an alternative framework to understand how innovation is financed by considering the interplay of innovation characteristics, the strategic reasons of project owners and funders, and the role of the matching environment and conditions. This proposal includes explanatory elements overlooked by extant theories. An illustrative case is presented to support the need for this proposal. Findings The framework proposed proves useful to better understand innovation funding cases where the traditional financial theory does not suffice. Practical implications Innovative companies may improve decision making about resource allocation to innovation; innovation funders may refine their decision-making criteria and implementation; and policy makers and practitioners need to devise better supporting strategies for innovative companies. Originality/value This proposal considers a continuum of funding options where supply/demand will match on the grounds of strategic decisions made during the interaction itself, under certain contextual conditions. Hence, it enriches the understanding of strategic decisions regarding firm capital structure and investment theory when it comes to funding innovation.

Re-thinking the role of intellectual property in nano-strategy

2012 ◽  
Vol 1 (1) ◽  
pp. 97-102
Author(s):  
Sara Giordani
Keyword(s):  
Supply Chain ◽  
Intellectual Property ◽  
Property Rights ◽  
Intellectual Property Rights ◽  
Current Situation ◽  
Strategic Partnerships ◽  
Strategic Decisions ◽  
Business Opportunities ◽  
Interpretative Model

AbstractIn two past studies we observed and analyzed a group of European new and adolescent ventures, looking in particular at how they were about exploiting nanotechnology-based business opportunities, what was the role of intellectual property rights (IPRs), mainly patents, in those strategies, what was the link between patent filings in nanotechnology and exploitation patterns in the market. We formulated hypotheses and proposed an interpretative model of the strategic decisions and business choices. After a couple of years we took the opportunity to revisit some of the hypotheses and outcomes of the proposed interpretative model. If the overall framework of analysis is still, at least partly, applicable to the current situation, new trends emerge, which involve: the creation of extended portfolios of IPRs and intangible assets, which are both technology and marketing related, the entry of strategic investors and the new role of the financial and funding instruments, and the emergence of new types of consolidation patterns which are rooted in the net of strategic partnerships, collaborations and new forms of alliances in the supply chain and in the market.

scholarly journals Neuroeconomics

2004 ◽  
Vol 359 (1451) ◽  
pp. 1737-1748 ◽  
Author(s):  
S. Zeki ◽  
O. R. Goodenough ◽  
Paul J. Zak
Keyword(s):  
Public Policy ◽  
Decision Making ◽  
Brain Activity ◽  
Measurement Techniques ◽  
Delay Of Gratification ◽  
Strategic Decisions ◽  
Social Decisions ◽  
New Directions

This paper introduces an emerging transdisciplinary field known as neuroeconomics. Neuroeconomics uses neuroscientific measurement techniques to investigate how decisions are made. First, I present a basic overview of neuroanatomy and explain how brain activity is measured. I then survey findings from the neuroeconomics literature on acquiring rewards and avoiding losses, learning, choice under risk and ambiguity, delay of gratification, the role of emotions in decision-making, strategic decisions and social decisions. I conclude by identifying new directions that neuroeconomics is taking, including applications to public policy and law.

Jet without fuel: nosedive of Jet Airways

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Satwik Upadhyay ◽  
Rayees Farooq ◽  
Nachiketa Tripathi
Keyword(s):  
Case Reports ◽  
Business Community ◽  
Aviation Industry ◽  
Strategic Decisions ◽  
Content Type ◽  
Secondary Sources ◽  
External Threats ◽  
Available Information ◽  
Present Case Study

PurposeThis case describes the vulnerability of the Indian aviation sector by highlighting the fall of Jet Airways from one of the biggest airlines in India to bankruptcy. The present case discusses the role of Jet Airways' leadership in managing the external threats that affect aviation business in India.Design/methodology/approachThe present case is built on data collected from secondary sources, including publicly available information about the company, journals, websites, newspapers and reports.FindingsThe case reports findings of how hubris-driven strategic decisions and insecurity of the leader in losing control of the company, led to the grounding of one of the major airline companies in the Indian aviation industry.Originality/valueThe present case study provides valuable insights into the aviation industry in India, focusing on the threats to the aviation business. The case is useful to other airline companies and the aviation business community in dealing with external threats to business and issues of leadership dysfunction.

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