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What Makes a Decision Strategic?

Author

Listed:
  • Michael J. Leiblein

    (Fisher College of Business, The Ohio State University, Columbus, Ohio 43210)

  • Jeffrey J. Reuer

    (Leeds School of Business, University of Colorado, Boulder, Colorado 80309)

  • Todd Zenger

    (David Eccles School of Business, University of Utah, Salt Lake City, Utah 84112)

Abstract

The growth and diversity of strategic management research raise important questions about the field’s identity. In response to the increasing breadth of topics addressed in the field, scholars have suggested the need for a more topical focus, improved theoretical and empirical rigor, or additional integrative reviews. We suggest an alternative approach, one that emphasizes the distinctive contributions of strategic management. We highlight three unique characteristics of strategic decisions: interdependence across contemporaneous decisions, across the decisions of other economic actors, and across time. We suggest that this threefold characterization of strategic decisions improves on existing definitions that rely on the perceived importance of decisions or the trade-offs presented by a decision. Our definition of strategic decisions highlights patterns of interdependent choices that are complementary or superadditive to value creation. Moreover, this characterization of strategic decisions offers a ready way for scholars with multiple disciplinary or topical interests to connect with the field’s core. These characteristics of strategic decisions also relate to theories of resource allocation and strategic investment, competitive advantage, and firm boundaries that suggest opportunities to better connect these streams of research.

Suggested Citation

  • Michael J. Leiblein & Jeffrey J. Reuer & Todd Zenger, 2018. "What Makes a Decision Strategic?," Strategy Science, INFORMS, vol. 3(4), pages 558-573, December.
    • Handle: RePEc:inm:orstsc:v:3:y:2018:i:4:p:558-573
    DOI: 10.1287/stsc.2018.0074
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    4. Baaij, M.G., 2021. "Inside the Black Box of Strategy: Sequential Synthesis," ERIM Report Series Research in Management ERS-2021-006-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
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