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Strategic decision making
Author(s) -
Eisenhardt Kathleen M.,
Zbaracki Mark J.
Publication year - 1992
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/smj.4250130904
Subject(s) - bounded rationality , rationality , normative , politics , positive economics , economics , decision theory , key (lock) , strategic management , power (physics) , profit (economics) , management science , sociology , epistemology , microeconomics , political science , computer science , management , law , philosophy , physics , computer security , quantum mechanics
This article reviews the strategic decision making literature by focusing on the dominant paradigms–i.e., rationality and bounded rationality, politics and power, and garbage can. We review the theory and key empirical support, and identify emergent debates within each paradigm. We conclude that strategic decision makers are boundedly rational, that power wins battles of choice, and that chance matters. Further, we argue that these paradigms rest on unrealistic assumptions and tired controversies which are no longer very controversial. We conclude with a research agenda that emphasizes a more realistic view of strategic decision makers and decision making, and greater attention to normative implications, especially among profit‐seeking firms in global contexts.