Strategic decision making
Article Abstract:
The dominant paradigms of strategic decision making are examined and their conclusions and present-day relevance evaluated. The first paradigm involves the debate between rationality and bounded rationality. The former assumes that decision-makers follow a set of objectives in gathering data for the formulation of alternatives, from which a choice or decision is made. In contrast, the latter states that there are cognitive constraints on rational decision-making. The political paradigm, on the other hand, involves the importance of conflicting agenda, power and political tactics in decision-making. Finally, the garbage can paradigm depicts decision making in acomplex, unstable and uncertain environment. Analysis suggests that empirical evidence supports both the boundedly rational and the political frameworks of decision-making, while the garbage can approach has only modest support.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
Breaking the silos: distributed knowledge and strategic responses to volatile exchange rates
Article Abstract:
A study was conducted to examine the effect of factors generated from multiple theoretical approaches on the quality of strategic decision-making in response to volatile exchange rates. The study assumed that knowledge needed to arrive at effective strategic decisions is distributed within the organization. An integrative model of the effectiveness of strategic responses in a distributed-knowledge situation that draws on three perspectives was developed. The three perspectives involved are the socio-cognitive perspective, the economic perspective and the process perspective. When the model was tested, it was found that all three perspectives explained the effectiveness of strategic responses to volatile exchange rates. Results indicated that concurrently considering managerial mindsets, incentives and processes may help in arriving at effective strategic responses across functions.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: New law taxes excess distributions and contains additional restrictions on plans. Rules on plan distributions and rollovers modified by new law, but many options remain
- Abstracts: Accounting knowledge and professional privilege: a replication and extension. Accounting as a legitimating institution
- Abstracts: Strategy process research: focusing on corporate self-renewal. Strategic decision models: integrating different perspectives
- Abstracts: Fit for yuppies. At the top, and determined to stay there
- Abstracts: Critical factors affecting the planning and implementation of major projects. An application of metric conjoint analysis for the evaluation of top managers' individual strategic decision making processes: a research note