Leading the Strategic Decision-Making Process: Conceptual Frameworks

2016 ◽  
pp. 31-42
Author(s):  
Aşkın Özdağoğlu ◽  
Sabri Erdem ◽  
Güzin Özdağoğlu
Keyword(s):  
Decision Making ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Decision Making Process ◽  
Conceptual Frameworks

Analysis and Intuition in Strategic Decision Making

2011 ◽  
pp. 1531-1542
Author(s):  
Zita Zoltay Paprika
Keyword(s):  
Decision Making ◽  
Decision Makers ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Decision Making Process ◽  
Strategic Decisions ◽  
Managerial Skills ◽  
Research Scholarship ◽  
Empirical Tests

Many management scholars believe that the process used to make strategic decisions affects the quality of those decisions. However, several authors have observed a lack of research on the strategic decision-making process. Empirical tests of factors that have been hypothesized to affect the way strategic decisions are made are notably absent (Fredrickson, 1985). This article reports the results of a study that attempts to assess the effects of decision-making circumstances, focusing mainly on the approaches applied and the managerial skills and capabilities the decision makers built on during concrete strategic decisionmaking procedures. The study was conducted in California between September 2005 and June 2006 and it was sponsored by a Fulbright research scholarship grant.

Group Decision And Negotiation In Strategic-Decision-Making

2011 ◽  
pp. 322-351
Author(s):  
Tamio Shimizu ◽  
Marley Monteiro de Carvalho ◽  
Fernando Jose Barbin
Keyword(s):  
Decision Making ◽  
Point Of View ◽  
Strategic Decision ◽  
Rational Approach ◽  
Strategic Decision Making ◽  
Decision Making Process ◽  
Great Effort ◽  
Logical Operators ◽  
Cognitive Limitations ◽  
Decision Alternatives

In the previous chapters, decisions models have been modeled based on the economic point of view of the problem expressed mainly through quantitative values and, in some cases by qualitative representation. The economic perspective draws unique coherence from economic assumptions of rational behavior and it draws predictive power from strongly valid rules of influence that employ mathematical or logical operators. Because the decision must be expressed in a way that is compatible with the rules of inference, great simplicity, and structure are required. In strategic decision making problems great effort has been directed toward relaxing the mathematical constraints, while retaining the economic — logic inference. Another important aspect to be considered is that in both theoretical and practical decision-making models, fixed numbers of decision alternatives or prefixed value of parameters have been considered. The major inputs to the analysis of an econometric model of decision-making process are subjective probabilities, utility values, and decision tree structures. Individuals may differ in their subjective value of probabilities, their utilities of outcomes or in their perceptions of the subsequent actions available. Strategic decision problems involve not only one person’s opinion but involve a group of individuals belonging to different classes and levels of interests inside and outside the organization. No longer is the problem concerned with the selection of the preferred alternative of one person. The analysis must be extended for a group of decision-makers, each one exhibiting a certain preference structure, perceiving different consequences, and corresponding to a diverse set of interest and responsibility. In some cases, depending on the number of persons involved as well as on the nature of the decision problem (for instance, promoting or hiring persons or, electing the president) it will be necessary to adopt a voting system. How can different groups of individual affect a decision-making process? In this chapter, we consider some behavioral aspects of individuals and group of individuals that may affect a decision-making process. Behavioral perspectives of competitive decision-making are neither as well articulated nor as complete as those of economic view. In behavioral views cognitive limitations and the use of mental effort are emphasized. In contrast to the rational approach of the economic frame, the behavioral views acknowledge that players may adopt different kind of rationality.

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.

Do Public Enterprises Need a Corporate Strategy?

1987 ◽  
Vol 12 (2) ◽  
pp. 9-20 ◽  
Author(s):  
K R S Murthy
Keyword(s):  
Decision Making ◽  
Corporate Strategy ◽  
Team Work ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Decision Making Process ◽  
Public Enterprises ◽  
Strategic Competence ◽  
The Public ◽  
Low Level

A large gap has arisen between the stated objectives of the public enterprises in India and their achievements, largely owing to inherent conflicts in their strategic decision making process. In this article, K R S Murthy stresses that any public enterprise's strategic competence depends on the interplay among three actors (managers, bureaucrats, and politicians) with diverse motivations, careers, and systems. Team work with common values and commitment among the three actors alone can improve the low level of strategic competence. Since the prerequisites for strategic formulations are riot met in public enterprises, it is a debatable point whether they should have a corporate strategy at all.

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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