Strategic Decision Making under Uncertainty: R&D and Pricing Strategies in Biopharmaceuticals

2014 ◽  
Vol 2014 (1) ◽  
pp. 11873
Author(s):  
William G. Mitchell
Author(s):  
Mattia Vettorello ◽  
Boris Eisenbart ◽  
Charlie Ranscombe

AbstractTo be successful in innovation, organisations need to be dynamically adaptable to novel situations to avoid getting ‘left behind’. Yet, they face vast uncertainties stemming from unforeseeable technological shifts or future user and market behaviour, making strategic decision-making on innovation an extremely difficult task. Decision-makers thus increasingly try to control or shape the future, rather than foresee it. This includes thinking ahead and generating potential pathways that will make an innovation viable. This captures the essence of designerly ways of thinking in reasoning toward ‘what might be’. Extant literature has been reviewed that discusses alternative strategies how this future-oriented thinking can be applied to become better at selecting novel ideas for development. We observe parallels between divergent thinking, abductive reasoning, analogising and lateral thinking suggested by different authors in this process. The paper continues to propose how these key mechanisms can be embedded within an existing framework for decision-making under uncertainty, the ‘OODA Loop’, which has seen increasing uptake in such decision-making scenarios.


2021 ◽  
Vol 13 (2) ◽  
pp. 845
Author(s):  
Marli Gonan Božac ◽  
Katarina Kostelić

The inclusion of emotions in the strategic decision-making research is long overdue. This paper deals with the emotions that human resource managers experience when they participate in a strategic problem-solving event or a strategic planning event. We examine the patterns in the intensity of experienced emotions with regard to event appraisal (from a personal perspective and the organization’s perspective), job satisfaction, and coexistence of emotions. The results reveal that enthusiasm is the most intensely experienced emotion for positively appraised strategic decision-making events, while frustration is the most intensely experienced emotion for negatively appraised problem-solving events, as is disappointment for strategic planning. The distinction between a personal and organizational perspective of the event appraisal reveals differences in experienced emotions, and the intensity of experienced anger is the best indicator of the difference in the event appraisals from the personal and organizational perspective. Both events reveal the variety of involved emotions and the coexistence of—not just various emotions, but also emotions of different dominant valence. The findings indicate that a strategic problem-solving event triggers greater emotional turmoil than a strategic planning event. The paper also discusses theoretical and practical implications.


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