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An Information Processing Model of Organizational Perception, Strategy and Choice

Author

Listed:
  • Francis D. Tuggle

    (Rice University)

  • Donald Gerwin

    (University of Wisconsin, Milwaukee)

Abstract

The strategic decision making process is conceptualized to occur in seven phases. A computer simulation model based on these steps has been developed which integrates the processes of organizational perception of key environmental factors, strategy formulation by the organization, and execution of routine operating decisions and standard operating procedures. Fifty computer runs of the model show the necessity of qualifying more narrowly three simplistic, but "intuitively obvious," hypotheses: (1) A firm will do better in a more munificent environment than a less munificent one. (2) A firm more sensitive to changes in its environment will do better than a less sensitive firm. (3) The more uncertainty there is in a firm's environment, the worse that firm will perform. The role of computer simulation models of organizational strategy-making in training top managers and strategic planners is sketched.

Suggested Citation

  • Francis D. Tuggle & Donald Gerwin, 1980. "An Information Processing Model of Organizational Perception, Strategy and Choice," Management Science, INFORMS, vol. 26(6), pages 575-592, June.
    • Handle: RePEc:inm:ormnsc:v:26:y:1980:i:6:p:575-592
    DOI: 10.1287/mnsc.26.6.575
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    Cited by:

    1. Frederik Dahlmann & Jens K. Roehrich, 2019. "Sustainable supply chain management and partner engagement to manage climate change information," Business Strategy and the Environment, Wiley Blackwell, vol. 28(8), pages 1632-1647, December.
    2. Scott DuHadway & Steven Carnovale & Benjamin Hazen, 2019. "Understanding risk management for intentional supply chain disruptions: risk detection, risk mitigation, and risk recovery," Annals of Operations Research, Springer, vol. 283(1), pages 179-198, December.
    3. Stephen Sullivan & Diana Garza, 2021. "Supply Chain Risks, Cybersecurity and C-TPAT, a Literature Review," RAIS Conference Proceedings 2021 0082, Research Association for Interdisciplinary Studies.
    4. Du, Yunzhou & Kim, Phillip H., 2021. "One size does not fit all: Strategy configurations, complex environments, and new venture performance in emerging economies," Journal of Business Research, Elsevier, vol. 124(C), pages 272-285.

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