Strategic Decision-making Process Research Articles

Performance Shortfall, Top Management Team Faultlines, and R&D Investment: Evidence from China

With the increasing uncertainty of the world economic situation, enterprises are facing the pressure of downward performance, and R&D has been an important strategic choice to solve the performance fall problem of high-tech enterprises. The article tries to explore the changes in the R&D investment intensity of enterprises under different performance lag levels and investigate the influence of the combination of characteristics of top management team(TMT) members on the strategic decision-making process. It is found that the relationship between the degree of performance disparity and R&D investment intensity is inverted U-shaped; the strength of the fracture faultline of the top management team negatively regulates the relationship between the degree of performance disparity and R&D investment and makes the inverted U-shaped curve flat. A further study of specific characteristic fracture bands revealed that team fracture bands based on tenure characteristics had a significant negative moderating effect, while professional and functional background fracture bands had a significant positive moderating effect. This study not only theoretically expands the understanding of the performance shortall and TMT disconnection on the deep-seated motivation of enterprise R&D investment, but also provides practical references for solving the problem of performance gap, optimizing the allocation of TMT human resources, and rationally promoting enterprise R&D investment to achieve transformation.

The Employer Perspective

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ESG Performance and Enterprise Competitive Advantage Construction: A Case Study of Walmart

This essay opens with an in-depth discussion of the growing importance of ESG concepts in modern corporate management and highlights their significant role in promoting long-term corporate value creation. With the increasing global focus on sustainability, ESG concepts have become an integral part of corporate strategic planning and operational decision-making. Next, this article selects the global retail giant Walmart as a case study and uses SWOT analysis and other management tools to analyse in detail how Walmart has effectively constructed and consolidated its competitive advantages in the highly competitive market through the implementation of an active ESG strategy. The article specifically describes Walmart's practices on several ESG dimensions, including but not limited to the implementation of environmental protection measures, active support to the community, the enhancement of employee welfare, and the optimisation of corporate governance structure. In terms of environmental protection, Walmart has significantly reduced the environmental impact of its operations through measures such as reducing carbon emissions, improving energy efficiency and promoting sustainable products. In terms of community support, the company has strengthened its ties with local communities and enhanced its brand image through various community programmes and charitable activities. Employee well-being has been achieved through improved working conditions and career development opportunities, which have not only increased employee satisfaction but also enhanced the company's attractiveness. The article concludes by summarising the important contribution of Walmart's ESG practices to the company's sustainability and long-term competitive advantage and suggests possible future strategic directions and recommendations for Walmart in ESG based on current market trends and company performance. These recommendations are intended to provide valuable references and insights for Walmart and other companies in their future strategic planning and decision-making processes, especially in terms of how to balance economic efficiency and social responsibility to achieve long-term sustainable development. However, due to the limitation of data and the depth of research on Walmart ESG, the article still has limitations.

The Role of Competitive Intelligence in Strategic Decision-Making: A Literature Review

Competitive Intelligence (CI) is an important element in a company's strategic decision-making in the midst of increasingly fierce business competition. In business literature, CI has been recognized as a vital tool for understanding a company's external environment and analyzing competitors' strategies. However, there is still debate regarding the role and effectiveness of CI in strategic decision-making. This study aims to explore the role of CI in strategic decision-making through a comprehensive literature review. The research method used is a qualitative method by analyzing various articles and journals related to CI and strategic decision making. The discussion in this study includes the importance of CI in providing relevant information, the methods used in CI implementation, and its impact on the company's strategic decisions. The results show that a deeper understanding of the role of CI in the context of strategic decision making, as well as providing recommendations to improve the effectiveness of CI in supporting corporate strategic decisions. The implication of this research is to provide valuable insights for business practitioners and researchers in understanding the contribution of CI to the strategic decision-making process. This research is also expected to be a reference for companies in optimizing CI implementation to strengthen competitive advantage in the market.

Selection of wines for wine lists in restaurants of Bosnia-Herzegovina: A comparative study

This study examines the wine list strategy preferences among restaurateurs in Bosnia and Herzegovina, focusing on identifying which criteria are deemed most and least important. A structured analysis categorizes strategies based on their frequency of selection as “Most Important” and “Least Important,” establishing a clear hierarchy of value among various criteria. The findings highlight two predominant strategies: “Preference for local wine” and “High reputation brand,” which is significant in the decision-making process. Restaurateurs consistently prioritize these strategies, with a dual emphasis on promoting local wine traditions and responding to market demands for reputable brands. The study underscores a pragmatic approach among Bosnian-Herzegovinian restaurateurs, who prioritize familiarity and perceived market security in their wine selections, potentially at the expense of enhancing gastronomic experiences and customer education. Further analysis using Z-scores confirmed the statistical signif-icance of these findings, identifying Strategy Choices 4 and 6 with notably high Z-scores, indicating their distinct importance compared to other criteria. This quantitative approach enhances the understanding of how these strat-egies stand out within the surveyed context, emphasizing their relevance in shaping wine list strategies. The study contributes insights into the strategic decision-making processes of Bosnian-Herzegovinian restaurateurs regard-ing wine selection, highlighting the dominance of local wine preference and brand reputation considerations. It underscores potential areas for improvement in integrating gastronomic expertise and enhancing customer expe-riences, suggesting avenues for future research and strategic refinement in the local restaurant industry.

News-Driven Volatility: A Deep Dive into Leading Nifty Healthcare Stocks

This study conducts a comprehensive analysis of stock price volatility within the healthcare sector, concentrating on five prominent companies: Sun Pharma, Dr. Reddy, Cipla, Apollo Hospitals, and Divis Laboratories. Leveraging annual daily data from the Nifty Healthcare Index for 2023, the research delves into the intricate relationship between stock price fluctuations and market-sensitive news events. Employing a robust methodology that integrates slope calculations, ANOVA, Tukey’s HSD tests, moving averages, and standard deviation metrics, the study evaluates the differential impact of these events on stock volatility. The findings reveal significant volatility, with Apollo Hospitals demonstrating the highest levels of price variability. The research highlights the profound influence of regulatory shifts, financial performance metrics, and macroeconomic conditions on stock behavior. These insights are pivotal for investors and financial analysts seeking to navigate the complex dynamics of the healthcare market. The application of moving averages further refines the analysis, offering a sophisticated lens through which to assess and interpret market trends, ultimately enhancing the strategic decision-making process within this critical sector.

Strategic decision-making of competitive manufacturers: Assessing the role of product substitutability in energy performance contracting

Maximizing benefits through optimized strategic decisions is a crucial concern in Energy Performance Contracting (EPC) arrangements among competing manufacturers, yet this area remains underexplored. This paper develops a model to examine EPC cooperation between two manufacturers producing substitutable products in a duopoly market. By applying game theory, the study investigates the strategic decision-making processes of these manufacturers, with a particular focus on product substitutability. The analysis of equilibrium outcomes reveals that when both manufacturers engage in EPC, total market output increases. Although EPC results in lower prices, it enhances overall consumer surplus due to the price reduction. Additionally, EPC contributes to a decrease in total energy consumption as the cost of energy-saving service rises. The study find that as product substitutability increases, the sharing ratio determined by the client in the EPC arrangement gradually decreases. Concurrently, the level of energy-saving service provided by the Energy Service Company (ESCO) increases. However, when the cost coefficient of energy-saving retrofitting services is relatively high and the sharing ratio falls within a certain range, the service level initially decreases before rising again. This research offers novel insights into the impact of product substitutability on EPC engagements between two competing manufacturers, providing valuable perspectives on strategic decision-making within a competitive market environment.

STRATEGIC MARKET ENTRY DECISION-MAKING IN AFRICA'S SATELLITE SECTOR: A COMPARATIVE ANALYSIS USING TOPSIS AND AHP METHODS

This paper investigates the strategic decision-making process for market entry into Africa's satellite telecommunications sector using two well-established multi-criteria decision-making (MCDM) methods: the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) and the Analytic Hierarchy Process (AHP). Given the complex and varied nature of the African market, these methodologies are applied to evaluate multiple countries based on criteria such as market potential, regulatory compliance, and infrastructural development. By conducting a parallel analysis with TOPSIS and AHP, this study not only identifies Kenya as the most suitable market for entry but also validates the consistency and reliability of both methods in handling decision-making complexities in emerging markets. The findings highlight the importance of systematic and objective criteria evaluation in reducing uncertainty and enhancing decision quality in international business strategies. This paper contributes to the strategic management and international business literature by demonstrating the practical application and comparative effectiveness of TOPSIS and AHP in a high-stakes decision-making scenario. Keywords: Strategic Market Entry, Satellite Telecommunications, TOPSIS, Analytic Hierarchy Process (AHP), Multi-Criteria Decision-Making (MCDM). Decision-Making Framework

Exploring strategic decision making as a mediator between enterprise resource planning, innovation, strategic planning, and organizational performance

This study aimed to explore the effect of enterprise resource planning (ERP), innovation (IN), and strategic planning (SP) on the organizational performance (OP) of large industrial companies in Saudi Arabia, with the mediating role of strategic decision-making (SDM). To this end, data was collected from 358 participants and analyzed using structured equation modeling (SEM) via SmartPLS 4. The findings confirmed that ERP positively affects both SDM and OP. Likewise, IN positively affects SDM but does not directly affect OP. On the contrary, SP positively affects both SDM and OP. These results emphasized the important role of SDM as a mediator. Theoretical implications highlight the integration of ERP, IN, SDM, and SP into a coherent model that explains OP dynamics. In practical terms, organizations can leverage these insights to enhance SDM processes aimed at improving operational processes. Overall, this study contributes to the literature by providing a nuanced understanding of how ERP, IN, SDM, and practices collectively drive operational processes in industrial contexts, particularly in Saudi Arabia.

Assessing Southeast Asia countries’ potential in the semiconductor supply chain: an objectively weighting multi-criteria decision-making approach

The semiconductor industry serves as a key enabler of technological progress and economic growth on a global scale. With Southeast Asia emerging as a region of increasing importance in the global supply chain landscape, understanding the potential for its countries to participate in the semiconductor supply chain becomes crucial. Despite extensive research on global supply chain dynamics, a focused analysis on the role of Southeast Asia within this crucial industry has been notably absent, particularly considering recent geopolitical and economic shifts. This gap has been filled by employing a rigorously designed Multi-Criteria Decision Making (MCDM) approach that integrates the Criteria Importance Through Intercriteria Correlation (CRITIC) method and the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). Data on fifteen indicators, including economic stability, technological innovation capacity, and infrastructural capabilities, were collected and identified through an extensive literature review and consultations with stakeholders. These indicators were weighted using the CRITIC method to reflect their relative importance, and each country’s position relative to an ideal solution was assessed using the TOPSIS method. It was revealed that countries such as Singapore and Malaysia possess significant potential due to their advanced technological infrastructure and stable economic environments. Other countries, like Vietnam and Indonesia, were also found to exhibit promising capabilities, albeit with certain limitations. The study highlights the varying strengths and strategic areas that should be considered by policymakers and investors to enhance integration into the global semiconductor supply chain. Significant contributions to the strategic decision-making process have been made by providing a nuanced analysis of the region’s readiness and identifying specific areas for investment and policy intervention. By offering a methodological framework that can be adapted to other regions and sectors, not only has an existing research void been filled, but the practical understanding of effectively leveraging Southeast Asia’s potential in the semiconductor industry has also been enhanced.

Global Integration vs. Local Responsiveness: Managing Strategic Dilemmas in Multinational Corporations

In the dynamic landscape of multinational corporations (MNCs), achieving a balance between global integration and local responsiveness poses a significant strategic dilemma. This study investigates how MNCs navigate this dual challenge to maintain competitive advantage and operational efficiency in diverse global markets. theoretical frameworks and empirical evidence to understand the strategic choices made by MNCs in integrating global operations while responding to local market demands. the tensions between standardized global strategies aimed at achieving economies of scale and localized strategies tailored to meet unique customer preferences, regulatory requirements, and cultural nuances. Key aspects analyzed include the strategic decision-making processes, organizational structures, and management practices that facilitate or hinder effective global-local integration. The study reviews case studies and comparative analyses of MNCs across different industries to illustrate successful strategies and best practices in managing these strategic dilemmas.

Enhancing valuation of variable annuities in Lévy models with stochastic interest rate

This paper extends the valuation and optimal surrender framework for variable annuities with guaranteed minimum benefits in a Lévy equity market environment by incorporating a stochastic interest rate described by the Hull-White model. This approach frames a more dynamic and realistic financial setting compared to previous literature. We exploit a robust valuation mechanism employing a hybrid numerical method that merges tree methods for interest rate modeling with finite difference techniques for the underlying asset price. This method is particularly effective for addressing the complexities of variable annuities, where periodic fees and mortality risks are significant factors. Our findings reveal the influence of stochastic interest rates on the strategic decision-making process concerning the surrender of these financial instruments. Through comprehensive numerical experiments, and by comparing our results with those obtained through the Longstaff-Schwartz Monte Carlo method, we illustrate how our refined model can guide insurers in designing contracts that equitably balance the interests of both parties. This is particularly relevant in discouraging premature surrenders while adapting to the realistic fluctuations of financial markets. Lastly, a comparative statics analysis with varying interest rate parameters underscores the impact of interest rates on the cost of the optimal surrender strategy, emphasizing the importance of accurately modeling stochastic interest rates.

Exploring the Interplay between Business Economics and Global Trade

This study explores the interplay between Business Economics and global trade, focusing on how firms apply economic principles to navigate international markets. The primary aim is to understand how economic policies, risk management, and strategic decision-making processes influence global trade strategies. Utilizing a qualitative research methodology, the study involves in-depth interviews with business economists, trade experts, and senior executives from multinational corporations. Data collection centers on participants' experiences and insights regarding the impact of economic policies, risk management strategies, and decision-making processes in global trade contexts. Thematic analysis of the interview data reveals that firms actively use Business Economics to adapt to changing trade policies, manage risks such as currency fluctuations and geopolitical instability, and optimize their market entry and pricing strategies. The study highlights that businesses leveraging economic models and principles are better positioned to respond to external changes, mitigate risks, and capitalize on growth opportunities in the global market. These findings underscore the critical role of Business Economics in shaping effective global trade strategies and offer valuable insights for firms seeking to enhance their international operations.

Understanding behavioral strategy: a historical evolutionary perspective in “Management Decision”

PurposeThis article aims to trace the historical development of the behavioral strategy (BS) field, which implements psychology in strategic management. Mainly, it provides a contextual understanding of how this stream of research has historically evolved and what relevant future trajectories are. This work is part of the “over half a century of Management Decision” celebrative and informal Journal section.Design/methodology/approachWe consider BS literature produced in management decision (MD), the oldest and longest-running scholarly publication in management, as a proxy for the evolution of management thought. Through a Systematic Literature Review (SLR) process, we collected – via the MD website and Scopus – a sample of 97 BS articles published in MD from its foundation (1967) until today (2024). Regarding the analysis, we adopted a Reflexive Thematic Analysis approach to synthesize the main BS topics, then read from a historical perspective regarding three “eras” over which the literature developed. Selected international literature outside the Journal’s boundaries was considered to complement this historical analysis.FindingsHistorically, within the BS field, the interest passed from the rules to rationally govern strategic decision-making processes, to studying what causes cognitive errors, to understanding how to avoid biases and to being prepared for dramatic changes. The article also identifies six future research trajectories, namely “positive heuristics,” “context-embedded mental processes,” “non-conventional thinking,” “cognitive evolutionary triggers,” “debiasing strategies” and “behavioral theories for new strategic challenges” that future research could investigate.Research limitations/implicationsThe limitation of the study lies in its exclusive focus on MD for investigating the historical evolution of BS, thereby overlooking critical contributions from other journals. Therefore, MD’s editorial preferences have influenced results. A comprehensive SLR on the BS field is still needed, requiring broader journal coverage to mitigate selection biases and enhance field appraisal.Originality/valueThis contribution is the first to offer a historical evolutionary view of the BS field, complementing the few other reviews on this stream of research. This fills a gap in the study of the evolution of management thought.

Analysis of the Correlation Between Enterprise Digital Transformation and ESG Performance

This essay explores the intricate relationship between enterprise digital transformation and Environmental, Social, and Governance (ESG) integration within modern business strategy and operations. It addresses the dynamic and rapidly evolving nature of today’s business environment, emphasizing the necessity for companies to embed sustainability and digital transformation in their strategic decision-making processes. The essay examines how digital transformation, characterized by the adoption of technologies like artificial intelligence, big data analytics, and cloud computing, fundamentally alters business processes, organizational structures, and corporate culture, leading to enhanced operational efficiency, innovative business models, and improved stakeholder engagement. It also delves into how integrating ESG principles with digital strategies enables companies to address environmental challenges, such as pollution reduction and resource management, as well as social and governance issues, fostering transparency, accountability, and sustainable growth. However, the essay acknowledges the complexities and challenges in merging digital and ESG strategies, including technological integration, data management, and the necessity for cultural change within organizations. Overall, it posits that the successful integration of digital transformation and ESG principles can significantly enhance a company’s competitive advantage while contributing to sustainable development and ethical business practices.

Utilizing machine learning algorithms to enhance predictive analytics in customer behavior studies

Machine learning (ML) algorithms have revolutionized the field of predictive analytics, particularly in understanding and anticipating customer behavior. This review explores how these advanced algorithms are utilized to enhance predictive analytics in customer behavior studies, driving more informed and strategic decision-making processes within businesses. Predictive analytics leverages historical data to predict future outcomes, and when combined with ML, it becomes significantly more powerful and accurate. ML algorithms can analyze vast amounts of data, identifying patterns and trends that would be impossible for humans to discern. These algorithms, including decision trees, neural networks, and support vector machines, can handle complex and nonlinear relationships within data, making them exceptionally well-suited for customer behavior studies. The application of ML in predictive analytics begins with data collection from various sources, such as transaction records, social media interactions, and customer feedback. This data is then preprocessed to ensure quality and relevance before being fed into ML models. Through techniques like clustering, classification, and regression, ML algorithms can segment customers, predict purchasing behaviors, and identify potential churners. One significant advantage of using ML for predictive analytics in customer behavior is the ability to deliver personalized experiences. By predicting individual customer preferences and needs, businesses can tailor their marketing efforts, product recommendations, and customer service interactions, thereby enhancing customer satisfaction and loyalty. For instance, e-commerce platforms use ML-driven predictive analytics to suggest products that a customer is likely to purchase based on their browsing and buying history. Moreover, ML algorithms continuously learn and improve from new data, allowing for real-time updates and more accurate predictions over time. This dynamic nature is crucial in today’s fast-paced market environments where customer preferences and behaviors can change rapidly. In conclusion, utilizing ML algorithms in predictive analytics significantly enhances the ability to understand and predict customer behavior. This integration not only helps businesses optimize their strategies and operations but also fosters deeper customer relationships through personalized and timely engagements. As ML technology continues to evolve, its impact on predictive analytics and customer behavior studies is expected to grow, offering even more sophisticated and actionable insights.

ADOPTION OF STRATEGIC DECISIONS AT THE ENTERPRISE

The process of determining the best way to achieve goals and objectives is called strategic decision making. These are long-term goals and objectives, as well as strategic decision-making tools, that help describe the company's primary goals in order to achieve short-term goals with a broad mission. In the long run, the company gains clarity and consistency in achieving its goals. Strategic decision-making is used in competitive companies to give the company a competitive advantage by changing its scale and the way the company manages its operations. The difference between strategic decision-making and other decision-making processes, such as administrative and operational decision-making, is that strategic decision-making is a long-term process that requires significant resources and is fraught with uncertainty. Administrative decisions are based on short-term goals. Unlike other decision-making processes, strategic decision-making considers the long-term future of the company. Successful business managers do more than just make money and sell products. They not only perform day-to-day sales tasks, but also look at the big picture and make decisions that will lead the company to its desired goal. This is known as strategic decision making, and it occurs when decisions are made in line with the company's goals or mission. This type of decision-making directs the choices made, aligning them with the company's goals. This requires creative thinking as managers must consider future scenarios that may or may not occur. These scenarios will determine the direction of the company's development. Business strategy is a competitive advantage. Businesses need strategies to ensure that resources are allocated in the most efficient way. There has been much research on strategies and much literature outlining the importance of strategies for successful business management. The word "strategy" is probably one of the most used words in business and everyday life [26]. According to Schendel, there are many preparation strategies in the business world for almost every potential activity, from employee management strategies to knowledge management strategies. At first glance, we have the idea that strategy is something simple that refers to the use of resources to realize pre-planned goals. But in practice, strategies differ in terms of time, and its formulation and implementation cannot be perfect. When a firm earns earnings above the average for its industry, the firm is said to have a competitive advantage over its rivals.

CEO Turnover and Openness of Decision-making Processes in the Post-succession Phase: Exploring a Threat-rigidity Perspective

This study examines how top leader turnover in the public sector affects organizational strategic decision-making processes in the post-succession phase. Survey responses of managers were combined with a novel database on CEO turnover in the U.S. Federal Government. Drawing on threat-rigidity theory, we hypothesize that as CEO turnover is perceived as a threatening event for both managers and CEOs themselves, organizations as a whole respond by becoming more rigid, centralizing strategic decision-making and restricting the flow of information. This has knock-on effects on the quality of strategic decisions and their implementation, with detrimental effects on the delivery of public services.

Impact of Corporate Governance Structures on Strategic Decision-Making Processes in Organizations

Impact of Corporate Governance Structures on Strategic Decision-Making Processes in Organizations

The moderating role of knowledge sharing in the relationship of transformational leadership style and environmental sustainability: an empirical study on the employee of ministries in the United Arab Emirate

Purpose In response to the prevalent significance of combating climate change, government agencies are required to achieve the critical goals of protecting natural resources, fostering long-term growth and promoting environmental sustainability. On this account, this study aims to investigate the moderating effect of knowledge sharing on the relationship between transformational leadership style and environmental sustainability. Design/methodology/approach To ensure the accuracy of the outcome, the study was designed using the resource-based view approach, comprising a sample of 276 employees across various United Arab Emirates (UAE) ministries, administering a validated questionnaire. The non-parametric software (i.e. Smart PLS 4) was used to analyse the data. Findings The findings indicated that three dimensions of transformational leadership style, idealised influence, individualised consideration and intellectual stimulation, were significantly related to environmental sustainability. Inspirational motivation, however, did not predict environmental sustainability. Originality/value In terms of value, the novelty of this study is the theoretical foundations that it provides for future research on the role of knowledge sharing that can affect transformational leadership and environmental sustainability among the ministries in the UAE. This study also sets a benchmark for these ministries and other public sectors’ strategic decision-making process of increasing knowledge sharing through a transformational leadership style.