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The Influence of Decision, Environmental and Firm Characteristics on the Rationality of Strategic Decision-Making

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  • Said Elbanna
  • John Child

Abstract

This paper develops an integrated model of strategic decision-making rationality. The model is informed by three perspectives that respectively identify decision, environmental and firm characteristics as influences on the rationality of decision processes. The results of a study in Egypt indicate that the rationality of strategic decision-making processes is shaped by variables identified by all three perspectives, and that such decision processes cannot adequately be modelled in terms of a single perspective only. However, the study also suggests that the three perspectives do not contribute in equal measure to explaining strategic decision making, and that the national setting is relevant for the extent to which strategic decision-makers take account of environmental characteristics. The location of the investigation in Egypt highlights some deviations from previous research that could be attributed to nation-specific factors, both cultural and institutional. Copyright Blackwell Publishing Ltd 2007.

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  • Said Elbanna & John Child, 2007. "The Influence of Decision, Environmental and Firm Characteristics on the Rationality of Strategic Decision-Making," Journal of Management Studies, Wiley Blackwell, vol. 44(4), pages 561-591, June.
  • Handle: RePEc:bla:jomstd:v:44:y:2007:i:4:p:561-591
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    1. Whittington, Richard & Mayer, Michael, 2000. "The European Corporation: Strategy, Structure, and Social Science," OUP Catalogue, Oxford University Press, number 9780199242085.
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    1. repec:eee:joecas:v:6:y:2009:i:1:p:29-47 is not listed on IDEAS
    2. repec:eee:worbus:v:52:y:2017:i:5:p:664-679 is not listed on IDEAS
    3. Fabiola Baltar, 2013. "A Suitable ‘GPS’ for SME’s: the Strategic Planning and Organizational Learning Nexus," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 3(2), pages 1-1, April.
    4. Meissner, Philip & Wulf, Torsten, 2014. "Antecendents and effects of decision comprehensiveness: The role of decision quality and perceived uncertainty," European Management Journal, Elsevier, vol. 32(4), pages 625-635.
    5. Moore, Fiona, 2012. "Identity, knowledge and strategy in the UK subsidiary of an Anglo-German automobile manufacturer," International Business Review, Elsevier, vol. 21(2), pages 281-292.
    6. Loock, Moritz & Hinnen, Gieri, 2015. "Heuristics in organizations: A review and a research agenda," Journal of Business Research, Elsevier, vol. 68(9), pages 2027-2036.
    7. Amankwah-Amoah, Joseph, 2017. "Cultivating greater self-confidence in African management research," MPRA Paper 79751, University Library of Munich, Germany, revised 2017.
    8. 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.
    9. Shuo Wang & Yuhui Gao & Gerard Hodgkinson & Denise Rousseau & Patrick Flood, 2015. "Opening the Black Box of CSR Decision Making: A Policy-Capturing Study of Charitable Donation Decisions in China," Journal of Business Ethics, Springer, vol. 128(3), pages 665-683, May.
    10. Flora F. T. Chiang & Thomas A. Birtch, 2010. "Appraising Performance across Borders: An Empirical Examination of the Purposes and Practices of Performance Appraisal in a Multi-Country Context," Journal of Management Studies, Wiley Blackwell, vol. 47(7), pages 1365-1393, November.
    11. Baltar, Fabiola, 2013. "A suitable 'GPS' for SME's: the strategic planning and organizational learning nexus," Nülan. Deposited Documents 1877, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.

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