An empirical foundation of strategic decision-making processes: towards a synthesis and a future research agenda

Abstract

Despite the crucial role of strategic decisions (SDs), the stream of research on strategic decision-making has not departed significantly from a stage of being based on "mature paradigms and incomplete assumptions" (Eisenhardt and Zbaracki, 1992, pp. 17). Arguably, one of the major reasons for this, is the difficulty encountered in identifying and measuring process
variables. This paper based on a sample of 70 SDs offers an empirically derived framework for identifying and measuring strategic decision-making processes (DMPs) on the following nine dimensions: comprehensiveness/rationality, formalised rules, formal co-ordination devices, financial reporting, hierarchical decentralisation, lateral communication, politicisation, problemsolving, dissension, gestation and duration process time. Based on these dimensions a holistic framework for studying of strategic DMPs is advanced, which takes into account both their antecedents and outcomes. Directions for research in the area of strategy process are discussed.

JEL Classification: M10