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Managerial decision-making in international business: A forty-five-year retrospective

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  • Aharoni, Yair
  • Tihanyi, Laszlo
  • Connelly, Brian L.
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    Abstract

    We identify key theoretical developments in international managerial decision-making research, synthesize how they have been employed, and discuss contributions that may emerge as researchers devote increased attention to bounded rationality. Since behavioral factors were first introduced into the international business literature, there has been an increasing trend toward acknowledging the decision makers' role in foreign direct investment and related strategies. However, the reasoning, which explains the characteristics and outcomes of managerial decision-making in the multinational enterprise (MNE), remains implicit and ambiguous. There are a number of potential concerns associated with the assumptions of dominant rational decision-making models and with models that omit decision makers. We highlight these concerns and discuss the benefits of, and opportunities for, models that incorporate bounded rationality, decision-making biases, and judgments by managers.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 46 (2011)
    Issue (Month): 2 (April)
    Pages: 135-142

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    Handle: RePEc:eee:worbus:v:46:y:2011:i:2:p:135-142

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    Related research

    Keywords: Managerial decision-making Bounded rationality Multinational enterprise Foreign direct investment Environmental uncertainty;

    References

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    Cited by:
    1. Mai Thai & Li Chong, 2013. "Dynamic experimental internationalization: Strategy of SMEs from a transition economy," Journal of International Entrepreneurship, Springer, vol. 11(4), pages 370-399, December.
    2. Schmid, Stefan & Dauth, Tobias, 2014. "Does internationalization make a difference? Stock market reaction to announcements of international top executive appointments," Journal of World Business, Elsevier, vol. 49(1), pages 63-77.
    3. Peng, George Z. & Beamish, Paul W., 2014. "MNC subsidiary size and expatriate control: Resource-dependence and learning perspectives," Journal of World Business, Elsevier, vol. 49(1), pages 51-62.
    4. Musso, Fabio & Francioni, Barbara, 2012. "The Influence Of Decision-Maker Characteristics On The International Strategic Decision-Making Process: An SME Perspective," MPRA Paper 50063, University Library of Munich, Germany.

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