Using interpretive structural modelling in strategic decision‐making groups

Abstract

PurposeThe purpose of this paper is to apply interpretive structural modelling in the clarification of the perceptions of different individuals in a managerial group in order to improve group decision making. To limit conflict and increase shared knowledge in group decision making, there is a need to explain differences among group members at the cognitive level.Design/methodology/approachQualitative research has suggested methods that involve personal narratives and in‐depth interviews. The effectiveness of such methods can be enhanced using the techniques of formal logic. The approach used for the case is a simulation of a strategic group decision‐making process using interpretive structural modelling. The simulation contemplates a typical business scenario. It was done using role‐play in strategic corporate problem solving: four functional managerial roles and one general managerial role were assigned. Individual and group relationships were portrayed.FindingsAfter analysing the results the authors found major differences in priority orderings of the different roles. As there are differences in the perception of the priority of the issues in the different managerial roles, it would be more difficult to take a decision.Research limitations/implicationsThe limitations of this research are that it was done with assigned roles instead of real executives. Further research could provide ways of identifying schools of thought in decision‐making groups for strategic issues.Practical implicationsThe practical application of this paper would be in the hypothetical decision‐making arena, improving the decision‐making process among executives working in different functional areas.Originality/valueThe application of formal logic methods to a decision‐making process is the prime contribution of this paper.