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Strategic decision‐making processes: the role of management and context
Author(s) -
Papadakis Vassilis M.,
Lioukas Spyros,
Chambers David
Publication year - 1998
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/(sici)1097-0266(199802)19:2<115::aid-smj941>3.0.co;2-5
Subject(s) - strategic planning , strategic control , strategic management , strategic thinking , decentralization , dominance (genetics) , strategic financial management , rationality , business , context (archaeology) , process (computing) , process management , decision process , management science , knowledge management , economics , marketing , computer science , political science , paleontology , biochemistry , chemistry , biology , law , market economy , gene , operating system
This paper investigates the relationship between the process of strategic decision‐making and management and contextual factors. First, drawing on a sample of strategic decisions, it analyzes the process through which they are taken, into seven dimensions: comprehensiveness/rationality, financial reporting, rule formalization, hierarchical decentralization, lateral communication, politicization, problem‐solving dissension. Second, these process dimensions are related to (1) decision‐specific characteristics, both perceived characteristics and objective typologies of strategic decisions, (2) top management characteristics, and (3) contextual factors referring to external corporate environment and internal firm characteristics. Overall, the results support the view that strategic decision processes are shaped by a multiplicity of factors, in all these categories. But the most striking finding is that decision‐specific characteristics appear to have the most important influence on the strategic decision‐making process, as decisions with different decision‐specific characteristics are handled through different processes. The evident dominance of decision‐specific characteristics over management and contextual factors enriches the traditional ‘external control’ vs. ‘strategic choice’ debate in the area of strategic management. An interpretation of results is attempted and policy implications are derived. © 1998 John Wiley & Sons, Ltd.