Formal Strategic Analyses and Organizational Performance: Decomposing the Rational Model

2007 ◽  
Vol 28 (6) ◽  
pp. 853-883 ◽  
Author(s):  
George C. Mueller ◽  
Mark A. Mone ◽  
Vincent L. Barker
Keyword(s):  
Decision Making ◽  
Organizational Performance ◽  
Decision Process ◽  
Formal Analysis ◽  
Top Management Teams ◽  
Decision Processes ◽  
Strategic Decision ◽  
Performance Effects ◽  
Communication Control ◽  
And Control

Although a substantial body of literature suggests a positive relationship between decision process rationality and organizational performance, there is also compelling evidence that this relationship is negative. We argue that these equivocal findings may be due, in part, to a lack of construct specificity and different methodologies employed to assess decision process rationality. Drawing from Langley's (1989) framework of decision process rationality, we examined the effects of formal analysis for purposes of information, persuasion and communication, control and direction, and symbolism, considering also their effects in the context of environmental dynamism. Using survey data from top management teams in 42 organizations, we found that in both high and low dynamism environments, the instrumental use of information in decision processes was positively linked with organizational performance. In dynamic environments, while analyses for symbolic and control purposes were positively associated with performance, analysis for persuasion was negatively associated with performance. By unraveling the performance effects of different elements of decision-making rationality, we can better understand the nature of relationships between strategic decision processes and organizational performance. This understanding might ultimately lead to better strategic decision making in organizations.

Research: Franchising and Strategic Decision Making

1997 ◽  
Vol 21 (1) ◽  
pp. 160-178 ◽  
Author(s):  
Chris Roberts
Keyword(s):  
Decision Making ◽  
Organizational Performance ◽  
Strategic Choice ◽  
Top Management Teams ◽  
Managerial Discretion ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Study Results ◽  
Independent Hotels ◽  
Core Capabilities

The linkage between the strategic choice to franchise, consensus and organizational performance is empirically tested among top management teams (TMTs) in 44 hotels. The study results show that limits on managerial discretion imposed by franchising do direct the focus of strategic decision making. In achieving organizational performance, independent hotels focused more on reaching team consensus on core capabilities and franchised firms rely more upon team consensus on goals and means.

Examining the Implications of Process and Choice for Strategic Decision Making Effectiveness

2013 ◽  
pp. 344-359
Author(s):  
Paul L. Drnevich ◽  
Thomas H. Brush ◽  
Alok Chaturvedi
Keyword(s):  
Decision Making ◽  
Academic Research ◽  
Decision Processes ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Political Decision ◽  
Agent Based ◽  
Response Choice ◽  
Decision Making Processes ◽  
Using Data

Most strategic decision-making (SDM) approaches advocate the importance of decision-making processes and response choices for obtaining effective outcomes. Modern decision-making support system (DMSS) technology is often also needed for complex SDM, with recent research calling for more integrative DMSS approaches. However, scholars tend to take disintegrated approaches and disagree on whether rational or political decision-making processes result in more effective decision outcomes. In this study, the authors examine these issues by first exploring some of the competing theoretical arguments for the process-choice-effectiveness relationship, and then test these relationships empirically using data from a crisis response training exercise using an intelligent agent-based DMSS. In contrast to prior research, findings indicate that rational decision processes are not effective in crisis contexts, and that political decision processes may negatively influence both response choice and decision effectiveness. These results offer empirical evidence to confirm prior unsupported arguments that response choice is an important mediating factor between the decision-making process and its effectiveness. The authors conclude with a discussion of the implications of these findings and the application of agent-based simulation DMSS technologies for academic research and practice.

Strategic IT Investment Decisions

2011 ◽  
pp. 3589-3593
Author(s):  
Tzu-Chuan Chou ◽  
Robert G. Dyson ◽  
Philip L. Powell
Keyword(s):  
Organizational Performance ◽  
Decision Process ◽  
Investment Decision ◽  
Investment Decisions ◽  
Decision Processes ◽  
It Investment ◽  
Strategic Investment ◽  
Integrative Framework ◽  
Concept Of Information ◽  
Information Intensity

As many as half the decisions taken in organizations result in failure (Nutt, 1999). As information technology (IT) assumes a greater prominence in firms’ strategic portfolios, managers need to pay more attention to managing the technology. However, while IT can have a significant impact on organizational performance, it can also be a major inhibitor of change and can be a resource-hungry investment that often disappoints. Organizations can best influence the success of IT projects at the decision stage by rejecting poor ones and accepting beneficial ones. This may enable better implementation, as Nutt (1999) suggests most decision failures are due to implementation failure that tends to be under managers’ control. However, little is known about IT decision processes. Research demonstrates the importance of managing strategic IT investment decisions (SITIDs) effectively. SITIDs form part of the wider range of corporate strategic investment decisions (SIDs) that cover all aspects in which the organization might wish to invest. Strategic investment decisions will have different degrees of IT intensity that may impact outcome. IT investment intensity is the degree to which IT is present in an investment decision. That is, some decisions will be wholly about IT investments while others will have little or no IT—most, though, will be blended programs of IT and non-IT elements. Here, IT investment intensity is defined as the ratio of IT spending to total investment. The higher the IT investment intensity, the more important IT is to the whole investment. For example, Chou, Dyson, and Powell (1997) find IT investment intensity to be negatively associated with SID effectiveness. The concept of IT intensity is similar to, but also somewhat different from, the concept of information intensity. Information intensity is the degree to which information is present in the product or service (Porter & Millar, 1985). Management may use different processes in order to make different types of decisions (Dean & Sharfman, 1996). The link between decision process and outcome is so intimate that “the process is itself an outcome” (Mohr, 1982, p. 34). This may imply that the link between IT investment intensity and SID effectiveness is not direct but that the impact of IT investment intensity may be through the decision process. If different IT intensity in projects leads to different decision processes, leading to different outcomes, then it is important to know what factors act in this, in evaluating and managing SITIDs. This chapter presents an integrative framework for exploring the IT investment intensity-SID effectiveness relationship.

Cyber Operations, Legal Secrecy, and Civil-Military Relations

2020 ◽  
pp. 245-262
Author(s):  
Dakota S. Rudesill
Keyword(s):  
Decision Process ◽  
Low Cost ◽  
Decision Processes ◽  
Cyber Warfare ◽  
Civil Military Relations ◽  
Military Commanders ◽  
Conventional Weapons ◽  
Planning Decision ◽  
Military Relations ◽  
And Control

What civil-military challenges will arise from the virtual world of cyber warfare? Congress and the president have grown increasingly comfortable with permissive grants of authorities and decentralized delegations—including via classified documents with legal force (secret law)—, allowing military commanders to operationalize cyber tools in both defensive and offensive modes with greater ease and frequency. These cyber tools are unusually complex in their variety, design, and potential uses, at least relative to more traditional and conventional weapons. Their technical attributes render them difficult to monitor and regulate because those responsible for decisions to use such weapons—civilian officials—are often least likely to have experience or familiarity with them. The relatively low-cost, rapid-effect nature of cyberwar also encourages not just use in armed conflict, but also below the standard threshold of war. Cyber operations initiated without careful inter-agency planning, decision process, and presidential review drive up operational risk and undermine civil-military norms. To foster more effective civilian oversight and control of the nation’s military’s cyber sword, and to encourage more deliberative application of ever-evolving technologies, Congress should use its constitutional authorities over “the [cyber] land and naval Forces” to craft better decision processes and better civil-military and legal transparency balances.

Rehabilitation of water networks: analysis of the decision making processes

2005 ◽  
Vol 5 (2) ◽  
pp. 23-30
Author(s):  
J.P. Torterotot ◽  
M. Rebelo ◽  
C. Werey ◽  
J. Craveiro
Keyword(s):  
Decision Making ◽  
Decision Process ◽  
Decision Processes ◽  
Water Networks ◽  
Process Data ◽  
Water Pipes ◽  
Decision Making Processes ◽  
Operational Decision Making ◽  
Networks Analysis ◽  
Institutional Stakeholders

The European Project CARE-W (Computer Aided Rehabilitation of Water Networks), which is supported by the European Commission, has created and tested a prototype of decision support system for the rehabilitation of water pipes. Inside the project, the present operational decision making processes have been analysed in 14 water utilities. The objectives were to identify the involved actors and their interactions, as well as the structure (formal and non formal) of the decision processes: institutional and regulatory contexts, steps of decision making, information fluxes, sharing out of responsibilities and of influence, participation of social and institutional stakeholders. Synthetic results are presented. The cases studied are diversified on several aspects. An “average” situation could be described as showing a moderate level of confrontation, with rather formalised procedures, and very centralised decision making out of the interrelations with road works programming. The highest diversity encountered among the utilities concerns the level of information inside the decision process: data considered, fluxes of information, “sophistication” of criteria taken into account.

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.

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