Strategic Decision-Making in High-Risk Industries: A Focus on Resource Allocation

Abstract

Strategic decision-making in high-risk industries is pivotal due to the inherent uncertainties and potential severe consequences associated with operational failures. This study aims to explore the decision-making processes regarding risk assessment and resource allocation within these industries, providing insights into how strategic decisions are formulated, implemented, and their subsequent impact on organizational resilience and performance. This qualitative research utilized semi-structured interviews with 22 senior managers and department heads from industries identified as high-risk, including aerospace, chemical manufacturing, and healthcare. The study employed thematic analysis to achieve theoretical saturation, ensuring a comprehensive understanding of the strategic decision-making processes. Four main themes were identified: Risk Assessment, Resource Management, Decision-Making Processes, and Impact and Outcomes. Each theme encompassed several categories: Risk Assessment included Perception of Risk, Evaluation Methods, Impact of External Factors, and Mitigation Strategies; Resource Management covered Allocation Efficiency, Human Resources, Technological Resources, and Financial Resources; Decision-Making Processes were detailed through Approach to Decision-Making, Information Gathering, Decision Influencers, and Crisis Response; Impact and Outcomes were divided into Short-term Outcomes, Long-term Outcomes, and Lessons Learned. The study highlights the complexity and multi-dimensionality of strategic decision-making in high-risk industries. Effective risk assessment and resource management are crucial for navigating the uncertainties these industries face. Strategic agility and the ability to integrate comprehensive risk management practices significantly enhance organizational resilience and long-term success.