The indirect effects of performance measurement system and organizational ambidexterity on performance

2018 ◽  
Vol 24 (5) ◽  
pp. 1176-1199 ◽  
Author(s):  
Elizandra Severgnini ◽  
Valter Afonso Vieira ◽  
Edwin Vladimir Cardoza Galdamez
Keyword(s):  
Decision Making ◽  
Organizational Performance ◽  
Three Dimensions ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Organizational Ambidexterity ◽  
Exploration And Exploitation ◽  
Content Type ◽  
Software Companies ◽  
Attention Focus

Purpose Performance measurement systems (PMSs) have long been used for monitoring and improving administrative performance. In parallel, organizational ambidexterity refers to firms that manage different organizational functions and various demands to generate performance. The purpose of this paper is to propose that three dimensions of PMS increase organizational ambidexterity and consequently they influence organizational performance. In this framework, organizational ambidexterity mediates the relationships between three dimensions of PMS and organizational performance. Design/methodology/approach The data were collected through a structured questionnaire sent to Brazilian software companies. Owners, directors, project managers and responsible for company strategy answered the questionnaire. The final sample was 227 Brazilian software firms that answered according to their PMSs and organizational ambidexterity. Findings The results provide four main findings. First, the three dimensions of PMS, namely—attention focus, legitimization and strategic decision-making—influenced organizational ambidexterity. Second, organizational ambidexterity had a major effect on organizational performance. Third, organizational ambidexterity mediated the indirect effects of attention focus, legitimization and strategic decision-making on organizational performance. Fourth, exploration and exploitation—two dimensions of organizational ambidexterity—mediated the indirect effect of the abovementioned PMS dimensions on organizational performance. Research limitations/implications Although there are different dimensions of organizational ambidexterity, this paper is limited to two of the most used ones: exploitation and exploration. In addition, the results were limited to subjective—in contrast to objective—performance measures. Practical implications Software companies can use PMS for attention focus, legitimization of firm’s choices and strategic decision-making to increase their exploration and exploitation capabilities. Moreover, software companies can use strategic decision-making to control existing strategies and establish new strategies for legitimizing ambidextrous choices and thereby support their decision-making process. Originality/value The data showed that not only organizational ambidexterity mediates the effects of the three dimensions of PMS use on performance, but also exploration and exploitation.

Corporate foresight and its effect on innovation, strategic decision making and organizational performance (case study: Iranian banking industry)

foresight ◽  
2017 ◽  
Vol 19 (6) ◽  
pp. 559-576
Author(s):  
Mahdi Joneidi Jafari ◽  
Seyed Akbar NiliPourTabataba’i
Keyword(s):  
Decision Making ◽  
Organizational Performance ◽  
Structural Equation ◽  
Banking Industry ◽  
Strategic Decision ◽  
Equation Modeling ◽  
Strategic Decision Making ◽  
Content Type ◽  
Corporate Foresight

Purpose This paper aims to examine the capability of corporate foresight in the organizations and its impacts on innovation, quality of managers’ strategic decision-making and organizational performance in the banking industry of Iran. Design/methodology/approach In the first part, upon introducing corporate foresight from the two process and content perspectives, influential elements in this construct are discussed. Then, corporate foresight’s relationship with innovation and strategic decision-making is examined and its effect on organizational performance is analyzed within a structural model. Using interview and questionnaire, the data research were collected from the banking industry of Iran including 30 banks (state-commercial banks, specialist-state banks, interest-free loan funds and private banks). Through descriptive, inferential statistical analyses and structural equation modeling using SPSS and Smart PLS software, reliability of the measurement model with 576 samples was confirmed. Findings The results show that the corporate foresight playing three roles of initiator, strategist, and opponent affects the innovation. Moreover, the research results suggest that using the data from the foresight and identifying the weak signals, we can reduce the uncertainty and issue prior warnings in order to enhance the quality of manager’s strategic decision making and promote the organizational performance. Originality/value This paper is one of the articles from the sources of the doctoral thesis of Futures Studies as “The relationship between knowledge absorption capacity, corporate foresight and its effect on the performance of the banking industry in Iran”.

Understanding how the contextual variables influence political behaviour in strategic decision-making

2014 ◽  
Vol 7 (3) ◽  
pp. 226-250 ◽  
Author(s):  
Said Elbanna ◽  
Ioannis C. Thanos ◽  
Vassilis M. Papadakis
Keyword(s):  
Decision Making ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Strategic Decisions ◽  
Empirical Examination ◽  
Content Type ◽  
Political Behaviour ◽  
Practitioner Education ◽  
The Impact ◽  
Practical Implications

Purpose – The purpose of this paper is to enhance the knowledge of the antecedents of political behaviour. Whereas political behaviour in strategic decision-making (SDM) has received sustained interest in the literature, empirical examination of its antecedents has been meagre. Design/methodology/approach – The authors conducted a constructive replication to examine the impact of three layers of context, namely, decision, firm and environment, on political behaviour. In Study 1, Greece, we gathered data on 143 strategic decisions, while in Study 2, Egypt, we collected data on 169 strategic decisions. Findings – The evidence suggests that both decision-specific and firm factors act as antecedents to political behaviour, while environmental factors do not. Practical implications – The findings support enhanced practitioner education regarding political behaviour and provide practitioners with a place from which to start by identifying the factors which might influence the occurrence of political behaviour in SDM. Originality/value – The paper fills important gaps in the existing research on the influence of context on political behaviour and delineates interesting areas for further research.

Mitchell’s Brewery: entrepreneurship challenges in the South African craft beer industry

2018 ◽  
Vol 8 (4) ◽  
pp. 1-35
Author(s):  
Geoff Bick ◽  
Fezile Sidubi
Keyword(s):  
Decision Making ◽  
South African ◽  
Work Experience ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
The South ◽  
School Students ◽  
Content Type ◽  
Craft Beer ◽  
Beer Industry

Learning outcomes They are as follows: to identify strategic growth opportunities for SMEs in the South African craft beer industry; to understand the complexities associated with operating a craft beer SME in the South African alcohol sector and analyse the SME’s strategic decision-making process that happens as a result; to understand the challenges and identify opportunities for entrepreneurship and growth in an emerging economy and niche segment; to develop a differentiation strategy for a small player in a competitive market; and to impart industry-specific knowledge and insight on the craft brewing industry. Case overview/synopsis The case is centred on the challenges that Hein Swart, managing director of Mitchell’s Brewery, is facing in sustaining business operations amid heavy regulations and increasing competition from existing craft breweries. In addition, there is the entry of a different type of competitor into the South African market that did not exist previously. The case narrative broadly presents several industry themes that interact with each other and create the existing complexities. Complexity academic level This case is targeted at postgraduate business school students with some work experience who want to build their critical thinking, business management and strategic decision-making skills such as Masters of Business Administration (MBA) and Executive MBA academic programmes, and also delegates on Executive Education programmes. The case is expected to be used as a case study for courses in entrepreneurship and strategic management; however, it can also be applied in strategic marketing courses. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 3: Entrepreneurship

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.

Integrated methodology for industrial facilities management and design based on FCA and lean manufacturing principles

Facilities ◽  
2020 ◽  
Vol 38 (7/8) ◽  
pp. 523-538 ◽  
Author(s):  
Diego Guillen ◽  
Diego Gomez ◽  
Ingrid Hernandez ◽  
Daniela Charris ◽  
Juan Gonzalez ◽  
...  
Keyword(s):  
Decision Making ◽  
Continuous Improvement ◽  
Lean Manufacturing ◽  
Primary Objective ◽  
Strategic Decision ◽  
Systematic Evaluation ◽  
Internal Quality ◽  
Strategic Decision Making ◽  
Production Plant ◽  
Content Type

Purpose The purpose of this paper is to provide a comprehensive methodology and a case study about the successful integration of FCA with continuous improvement tools for strategic decision-making processes. Reliable knowledge of the condition of tangible assets and their ability to fulfill their target activities over time are required for an assertive strategical decision process. Facility condition assessment (FCA) is a recognized methodology that allows the systematic evaluation of this performance. For those companies whose primary objective is the production of goods, decisions associated with improvements on the productive system or re-adaptation of existing assets may also require the implementation of alternative methodologies, with a direct impact on the indicators of the company and therefore on the FCA. Design/methodology/approach This study presents a methodology for the integration of FCA and lean manufacturing (LM) as a tool in strategic decision-making process that involves the integration of continuous improvement processes or significant changes in the production process, in which the condition of the installation impacts decisively the productivity of the system. Findings The results of the implementation on an insecticide and herbicide production plant indicate an increase of 33 per cent in the capacity of the formulation process and over 20 per cent reduction in the internal quality claims associated with the packaging system. Practical implications Those methodological stages are applicable to facilities in which the FCA shows the need for significant reconditioning of assets, the need to increase the efficiency and/or the production capacity. This methodology integrates elements of continuous improvement and redesign of production systems. Originality/value The original value of this paper is oriented to the capacity to integrate different FCA and LM tools through the company indicators of productivity key performance indicators and, in addition, of a comprehensive illustration based on a study case.

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.

Top management team international experience and strategic decision-making

2018 ◽  
Vol 26 (1) ◽  
pp. 50-70 ◽  
Author(s):  
Akbar Azam ◽  
Cristina Boari ◽  
Fabiola Bertolotti
Keyword(s):  
Decision Making ◽  
Top Management Team ◽  
Time Frame ◽  
International Experience ◽  
Top Management Teams ◽  
Management Team ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Top Management ◽  
Content Type

Purpose This study aims to explore the influence of top management team international experience on international strategic decision-making rationality and, subsequently, its effect on decision effectiveness (decision performance). Design/methodology/approach This analysis is based on survey data of small- and medium-sized international Pakistani firms operating in the IT industry. Findings Results show that top management team international experience is positively related to international strategic decision-making rationality, and the latter partially mediates the international experience – decision effectiveness relationship. Research limitations/implications The study is based on data collected from a single industry and focuses on an international decision that occurred within a time-frame of previous four years. Practical implications Findings suggest that international firms, when composing their top management teams, should favor the inclusion of internationally experienced managers. Originality/value The study of the influence of international experience on the decision-making process in general and decision-making rationality in particular has been largely neglected in extant literature. This paper highlights one way through which the international experience of the top management team as a whole relates to the effectiveness of international decisions. The paper also advances emergent managerial cognition literature focusing on the top management team and not individual decision makers.

Agreement-seeking behavior, trust, and cognitive diversity in strategic decision making teams

2016 ◽  
Vol 13 (3) ◽  
pp. 292-315 ◽  
Author(s):  
Satyanarayana Parayitam ◽  
Chris Papenhausen
Keyword(s):  
Decision Making ◽  
Group Process ◽  
Team Effectiveness ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Cognitive Diversity ◽  
Content Type ◽  
Decision Outcomes ◽  
Seeking Behavior ◽  
Process Conflict

Purpose The purpose of this paper is to investigate the effect of three important group process variables, namely, agreement-seeking behavior, group trust, and cognitive diversity, on decision outcomes. In addition, it seeks to examine the role of process conflict as a moderator in the relationship between agreement-seeking behavior and team effectiveness; agreement-seeking behavior and decision commitment; cognitive diversity and team effectiveness; and cognitive diversity and decision commitment. Design/methodology/approach Using a structured survey instrument, this paper gathered data from 160 students enrolled in a strategic management capstone course that features strategic decision making in a simulated business strategy game. The data from 41 teams were collected from the student population using a carefully administered instrument, and the data were aggregated only after appropriate inter-rater agreement tests were run. Findings Results show that the group process variables are positively related to decision outcomes. The data support the view that process conflict acts as a moderator in the relationship between agreement-seeking behavior and team effectiveness and decision commitment. Further, the results support that cognitive diversity has a positive impact on decision commitment and team effectiveness. Process conflict, which acts as a deterrent, is outweighed by the presence of agreement-seeking behavior. Research limitations/implications Since the present research is based on self-report measures, the limitations of social desirability bias and common method bias are inherent. However, sufficient care is taken to minimize these limitations. The research has implications for both the conflict management and strategic decision-making process literatures. Practical implications This study contributes to both practicing managers and the strategic management literature. The study suggests that administrators should select those teams who are prone to agreement-seeking behavior; and team members who trust one another. Administrators need not unduly avoid process conflict because diversity in opinions and thinking and agreement-seeking behavior outweigh the negative effects of process conflict. Social implications The findings from the study will be useful for creating congenial social environment in the organizations. Originality/value This study provides new insights about the previously unknown effects of process conflict in strategic decision-making process.

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