Strategic Decision-making Process Research Articles

Marketing strategy decision making in new product development: direct effects and moderation by market information time sensitivity and analyzability

PurposeResearch on market information use in product innovation suggests that firms utilize two key strategic decision-making processes: incremental and comprehensive. Drawing from organizational information processing theory, literature implies that these processes operate differently. However, this assumption remains untested. Moreover, the degree to which a comprehensive process affects the innovation strategy outcomes depends on market information time sensitivity (MITS) and analyzability. To-date, no study has tested these assertions, either. Finally, it is suggested that meaningful market strategy is a key driver of new product success and it is important to understand how decision-making processes influence it under differing time sensitivity and analyzability.Design/methodology/approachBased on survey data from 250 Chinese firms, authors use structural equation modeling to test the hypotheses.FindingsThe results generally support authors’ contentions. More specifically, marketing strategy outcomes are influenced by marketing strategy incrementality (MSI) and marketing strategy comprehensiveness (MSC) differently. Further, time sensitivity moderates the effect of both MSI and MSC on outcomes, except for the effect of MSI on decision quality. Finally, analyzability moderates the relationships between decision making processes and certain strategy outcomes such as between MSI and meaningfulness.Originality/valueDrawing from information processing theory, authors argue that incremental and comprehensive marketing strategy decision making for new product operate differentially under the same conditions. Further, the effects of these decision processes on outcomes depend on time sensitivity and analyzability of market information. Finally, auhtors argue that meaningful market strategy is a driver of success. The authors find support for most of our hypotheses and provide directions for future research.

Monitoring of the space-process management system of the enterprise’s economic potential

Methods. In the course of study of problems with monitoring the space-process management system of the enterprise’s economic potential, the method of abstraction was used - when determining the essence of the business process; systems approach – when building a model of business processes of an enterprise; logical approach – when allocating time horizons for providing information necessary for making strategic decisions; analysis and synthesis - when determining the internal and external factors of the development of the company’s potential. Results. The article examines the scientific aspects of the space-process management of the economic potential of the enterprise from the point of view of increasing the efficiency of its activity, namely through the substantiation of the expediency of restructuring the information support of the management decision-making process. It is shown that the constant maintenance of the company's competitive positions and the monitoring of its components and relationships in order to meet the interests of interested parties should be carried out through its strategic potential, which is the basis for developing an effective strategy and ensuring the appropriate level of development. Novelty. It is proposed to use a hierarchical structure of monitoring in the space-process management system of economic potential in order to provide managers with reliable information in order to optimize the process of strategic decision-making and the formation of appropriate information support, the choice of methods and time of updating information. The time horizons of providing information necessary for making strategic decisions are specified. Practical value. The results of the study make it possible to more effectively apply the spaceprocess management of the economic potential of the enterprise in terms of optimizing its work with information flows.

Mapping the maturity of SMART WORLD trends as a tool for developing business excellence and reducing organizational complexity

Abstract By highlighting the importance of tracking the maturity of various phenomena, this study aims at facilitating their response to the emerging changes and reducing the complexity of organizational management processes. To support business excellence and organization management in the SMART WORLD era, special attention was paid to previous findings. The pilot study research was carried out on a sample of 107 enterprises from Poland and Lithuania. The results of the data analysis collected during the quantitative research and their mapping identified: currently leading trends (mainstream - “new normal trends”), trends expected to undergo the development in short/medium/long term perspective and trends labelled as “no future” - fads or one step before their time. Research results were the basis for expressing preliminary conclusions about how to reduce uncertainty and complexity of the process of strategic decision making by contemporary managers.

Application of Data Envelopment Analysis (DEA) in the Selection of Sustainable Suppliers: A Review and Bibliometric Analysis

The supplier selection process is a strategic decision-making process that influences the company’s sustainability. Lately, the sustainability concept has been highlighted as an organization’s source of success and profitability. Therefore, the selection of a sustainable supplier has become an imperative for organizations and is the focus of this manuscript. Suppliers are key stakeholders in the supply chain, and their proper selection is a key factor in a successful and sustainable supply chain. For this reason, it is crucial to determine how and which methods are mostly used by companies when choosing sustainable suppliers with the aim of examining whether the Data Envelopment Analysis (DEA) contributes to the same. This article is the first to present a comprehensive bibliometric analysis of 87 articles dealing with the application of DEA in the sustainable supplier selection in the period 2010–2022, with the application of the keywords “Data Envelopment Analysis”, “Supplier”, and “Sustainable” in Scopus and Web of Science databases. The main goal of this manuscript is to explore the applications of DEA in a sustainable supplier selection and to provide an analysis and visualization of bibliometric data to reveal the annual trends of published articles in this area, the top contributing journals, the most cited papers, the most contributing authors, citations, affiliations, and countries’ analysis, and an in-depth keyword visualization analysis. The findings of this study provide valuable insights and emphasize the ever-growing trend toward the selection of sustainable partners and suppliers in business using DEA methodology. Notably, this work shows the applicability and efficacy of DEA in specialized areas of supply chain management and should contribute to the construction of an overview of the existing literature on DEA studies regarding the process of selection of sustainable suppliers in supply chain management as well as stimulate the interest in the topic. This article gives an overview of a research field that is actually insufficiently explored through the scientific literature and presents a wide area and guidelines for future work.

We are family! The role of family members’ identification in the internationalization of family firms

When examining family firms' strategic decision-making processes, it is important to consider the role of non-financial goals and the preservation of socioemotional wealth (SEW). This study contributes to this discussion by integrating arguments from the SEW framework into the Uppsala internationalization model to investigate the importance of family emotional attachment factors in family firms' internationalization. Specifically, we analyze how the identification of family members with the firm influences its international activities, proposing that this influence is moderated by family involvement in the governance of the firm. The results show that the initial negative effect of family members’ identification on firm internationalization turns positive with higher levels of family involvement in the board and longer CEO tenure.

Tactical positioning in short-track speed skating: The utility of race-specific athlete-opponent interactions

ABSTRACT In short-track speed skating, tactical positioning is essential for success as the race format (head-to-head) prioritises finishing position over finishing time. At present, our understanding of this phenomenon is based on measuring the similarity between athletes’ intermediate and final rankings. However, as this approach groups athlete performances across races, each lap’s estimate of tactical importance ignores the athlete-opponent interactions specific to each race. Here, we examine the utility of race-specific athlete-opponent interactions for investigating tactical positioning. Using intermediate and final rankings of elite 1,000 m short-track speed skating competitors collected from 2010/11–2017/18 (n = 6,196, races = 1,549), we compared the current method to a novel approach that accounted for race-specific athlete-opponent interactions. This approach first applied the current method to each race independently before using these values to form (1) discrete, empirical distributions of each lap’s tactical importance and (2) race-specific tactical positioning sequences. Our results showed that accounting for race-specific athlete-opponent interactions provided a higher measurement granularity (i.e. level of detail) for investigating tactical positioning in short-track speed skating, which better captured the complexity of the phenomenon. We observed 61 different tactical positioning behaviours and 1,269 unique tactical positioning sequences compared to the current approach’s nine-point estimates of tactical positioning importance. For this reason, we recommend that researchers and practitioners account for race-specific athlete-opponent interactions in the future as it offers a deeper understanding of tactical positioning that will enhance both strategic and tactical decisions. Highlights We compare the current approach for investigating tactical positioning to a novel approach that accounts for race-specific athlete-opponent interactions. We show that accounting for race-specific athlete-opponent interactions provides a higher measurement granularity (i.e. level of detail) for investigating tactical positioning in short-track speed skating. We demonstrate that this increased measurement granularity can facilitate a deeper understanding of tactical positioning by (1) producing theoretically-more-correct point estimates of tactical positioning importance, (2) enabling more rigorous statistical analyses into the effect of athlete-environment interactions on tactical positioning behaviour, and (3) allowing sequential analyses that capture the progressive relationships between laps. We recommend that researchers and practitioners account for race-specific athlete-opponent interactions in future investigations, as the findings will enhance analyst, coach, and athlete preparation for the strategic and tactical decision-making process essential for success in short-track.

Phenomenon Collaborative Management and Leadership in the Development of Traditional Village Kayu Batu City of Jayapura Indonesia

This research aimed to examine the relationship between collaborative management, leadership, and customary authority by Ondoafi in their strategic decision-making process as traditional leaders and government figures. Information analysis was then conducted descriptively with an ethnographic basis and normative analysis, using representative leaders from the government, traditions, youth, women, and religion, as participants. The results showed that collaborative management and leadership have not been examined efficiently because informal leaders/Ondoafi also act as formal government figures in the village government system

Mindfulness in Strategic Decision-Making Process and its Impact on Organizational Performance: A case of Small and Medium Saudi Based Businesses

The prompt response to market changes, demands managers and employees to be flexible and perform multiple tasks, simultaneously. Mindfulness encouraged companies to be goal-oriented by improving attention to the present moment. Unexpected events faced by firms should be approached wisely to achieve organizational objectives. Hence, a strategic decision process should be coupled with mindfulness to make effective decisions that result in increased performance. There is limited empirical mindfulness research in the management discipline, particularly on whether mindfulness foster or impedes task performance in the workplace. Therefore, the purpose of the study was to develop a view as to “how do small and medium firms react in uncertain conditions by employing mindfulness in predicting and comprising problems in their strategic decision process to achieve objectives and enhance performance in the context of Saudi Arabia”. The findings enriched the comprehension of the effect of mindfulness in the strategic decision process on organizational performance.

Recommendations and Strategies to Mitigate Environmental Implications of Artificial Island Developments in the Gulf

Artificial island development (AID) to tackle rampant urbanization on scarce land puts all marine biodiversity at huge risk and is recognized as a global conservation issue worldwide. This study critically reviews the gaps that undermined biodiversity and ecology during construction activities of the artificial islands in the Gulf region that could be alleviated if apposite environmental values and sustainable strategies of different regions of the world had paid enough heed to economic and social aspects. The method used for this study was an analytical descriptive literature survey, and the resources were chosen after three phases of quality assessment. This survey found various barricades to sustainable AID, such as lack of scientific data, adequate site selection, ineffective environmental evaluations, noncompliance with legislation, and economic gains over the environmental aspects. It was concluded that to protect the marine ecosystem from inevitable degradation, strict compliance with international and national legislation, research and baseline data collection, strengthening of the existing environmental assessment, continuous capacity building, and modern practices of different countries should be brought to the forefront. Furthermore, this study aims to provide guidance to policymakers and governmental organizations to mitigate emerging environmental issues during AID through strategic decision-making processes.

Decision-Making Process in Foreign Investment Choices

Abstract This exploratory investigation aims to develop a managerial decision model that assist international firms and investors in selecting the right valuable foreign country for their international operations. Two comparative and rich-information case studies were purposefully selected from among Arabian large firms. Additionally, six international investment decisions were investigated within these two cases and data were collected by in-depth interviews, follow-up interviews and questionnaire instrument. Within and cross-case analyses were undertaken in the current investigation. The findings demonstrated that a methodical and international experience-based strategic decision-making process was adopted to attain a profitable foreign country choice. The decision process comprised five critical managerial phases; that is, (1) analysis of internationalization drivers, (2) searching and development of location determinants and country alternatives, (3) obtaining adequate and related-information about potential countries, and, ultimately, assessment for these alternatives, (4) selection of a final beneficial foreign country choice, and, finally, (5) effective implementation of the selected country choice. The research findings provide theoretical and practical implications to the internationalization of firms as well as international investment. Further, it provides significant methodological contributions to international business research in relation to an effective multiple case study approach to capture elements of the international market selection process.

Innovative Expert Methods in Strategic Decision Making

Purpose: This study introduces managerial techniques applied for the first time in the high-level strategic public policy decision-making process in Slovakia with an aim to assess the strategic decision-making of groups of experts in a methodologically supported environment. It compares groups of internal analysts and external specialists and should demonstrate the extent to which these two groups are able to process problems analytically and suppress intuition. Methodology/Approach: Multi-criteria decision methods are used when deciding on complex problems. One of the most popular and most frequently used is the Analytic Hierarchy Process. Application of this method enables measurement of preference consistency, and its relationship with cognitive reflection. Findings: Consistency of judgement was very similar in both groups. The prioritisation of measures resulted in a similar set of priorities determined by both groups. The assumed relationship of consistency and cognitive reflection score and/or overconfidence was not detected, and decision makers proved to be well calibrated. Research Limitation/Implication: The main limitation of our research was the small sample size of decision makers, which complied with the requirements of the decision method, but was not sufficient to confirm the statistical validity. Originality/Value of paper: The introduction of the multi-criteria decision method into decision-making for public policy strategies combines practical policy exercises with scientific research on high-stakes decisions and enables to carry out participatory decision-making process with relevant stakeholders.

The complementary effects of rationality and intuition on strategic decision quality

Rationality and intuition are important dimensions of the strategic decision process. Prior studies have viewed these as distinct dimensions, providing limited insights for our understanding of strategic decision processes. Drawing on the dual process theory and research on process capability, this study examines the interplay between rationality and intuition based on a sample of 103 strategic decisions made by service firms in Greece. The results suggest that combining rationality and intuition at the same time leads to successful strategic decisions. Also, the moderating role of environmental dynamism was investigated. We found that in dynamic settings, decision-making teams which combine rationality and intuition outperform teams which use rationality or intuition separately. The implications of these findings for theory and practice are important and are analysed in the paper.

Visualizing the historical COVID-19 shock in the US airline industry: A Data Mining approach for dynamic market surveillance

One of the purposes of Artificial Intelligence tools is to ease the analysis of large amounts of data. In order to support the strategic decision-making process of the airlines, this paper proposes a Data Mining approach (focused on visualization) with the objective of extracting market knowledge from any database of industry players or competitors. The method combines two clustering techniques (Self-Organizing Maps, SOMs, and K-means) via unsupervised learning with promising dynamic applications in different sectors. As a case study, 30-year data from 18 diverse US passenger airlines is used to showcase the capabilities of this tool including the identification and assessment of market trends, M&A events or the COVID-19 consequences.

Does risk governance mediate the impact of governance and risk management on banks’ performance? Evidence from a selected sample of Islamic banks

PurposeRelying on the agency theory and the financial intermediation theory, the purpose of this paper is to examine to what extent risk governance would improve corporate governance and risk management effectiveness. The paper especially investigates the mediating role that would have the risk governance mechanisms in explaining both of the following relationships: the corporate governance–the banks’ performance, and the risk management–the banks’ performance.Design/methodology/approachThis research uses the Baron and Kenny’s (1986) approach to investigate the mediating effect of risk governance; besides, the study refers to structural equation modeling in carrying out the appropriate panel regressions. The data collection was based largely on Bank scope Database, but some missing qualitative data were gathered manually from the banks’ annual reports available on the banks’ websites.FindingsThe study findings illustrate the significant role of risk governance mechanisms in improving both corporate governance and risk management’s effectiveness. Especially, this paper finds that risk governance is fully explaining the corporate governance–bank performance relationship, but risk governance would explain partially the risk management–bank performance relationship. Further, findings suggest that the internal corporate governance mechanisms seem to be more relevant than the external ones in improving the sample bank performance, and that risk management mechanisms seem to impede rather the sample bank performance.Practical implicationsThe findings would make an important contribution to the current debate on the need to reinvent the optimal organization of the bank’s board and directorates and would allow readers to develop more cost-effective governance and risk-management thinking. Besides, the findings may help bank deciders and boards to rationalize costs and to focus only on the relevant corporate governance and risk management mechanisms. Finally, findings might illustrate to regulatory instance the importance of recommending risk governance in their coming corporate governance guidance.Social implicationsThe global credit crisis of 2008 caused significant difficulties to financial institutions, so it would be worth enlightening practitioners and policymakers, even regulators, on the importance of considering the level of potential risk and risk monitoring as a key component in the decision-making process, to strengthen the stability and resilience of banks in an increasingly uncertain environment.Originality/valueThe issues raised in the paper are important in that Islamic banking is an integral part of the global banking and finance industry. This paper extends the knowledge of the potential importance of the new concept of risk governance with specific reference to Islamic banking industry peculiarities. It also provides a telling illustration of the need for the enhancements of the Basel Committee’s prudential requirements as well as the accounting and auditing organization for Islamic financial institutions and Islamic Financial Services Board set out especially regarding the consideration of risk in the strategic decision process.

A Note on the Role of Social Impact Investments in Minimum Variance Portfolios

This paper explores a possible way in which strategic asset allocation decision-making processes can suitably exploit Social Impact Investments (SIIs). We focus on the role that SIIs play in the context of variance-minimizing investments. To this aim, we employ an index that tracks companies' financial performance. A hand-collected sample of Social Impact Firms (SIFs) is the basis of the empirical experiments. Our results point out that, on average, investors should invest a relevant fraction of their wealth in stocks of SIFs.

Micro-foundations of strategic decision-making in family business organisations: A cognitive neuroscience perspective

Emotion significantly affects strategic decision-making by entrepreneurs in family business organisations. This paper proposes a cognitive framework of strategic decision-making that emphasises the importance of emotion, based on a micro-foundational perspective: that is, an integrated hierarchy of cognitive processes underlying entrepreneurs' strategic decision-making and the interactions with external affective events. Previous studies that used traditional behavioural methodologies are reviewed with reference to the proposed cognitive framework to highlight importance of understanding effect of emotion-cognition interactions on entrepreneurs’ strategic decision-making process. New techniques using biological, physiological, and neuroscientific tools are then introduced as complementary methods for this line of research. Finally, future research directions are discussed with a focus on implicit cognitive processing, complex emotions, and cognitive interventions.

Improving the quality of strategic decision-making process in universities through employing expert systems: A case study from a developing country

Strategic decisions represent the fundamental core of the strategic planning process and strategic management in universities and they are essential in shaping the universities' policies and achieving their strategic goals. Without those strategic decisions, the universities stand unable to achieve their strategic goals and mission; therefore, specialists realized the critical importance of improving the quality of strategic decision-making in the current complex fast-changing environment that its dynamism continuously increases and which is based on the use of cutting-edge information and communications technology (ICT). Undoubtedly strategic decision-making process requires processing a huge amount of information with different robust smart methods and the extensive use of experts knowledge. There are many discussions about the uses and applications of expert systems (ESs), which are evolving rapidly in solving real problems in many fields that require experienced experts with deep sound experiences, and despite these many applications in many different fields and domains. Literature reveals that there is a scarcity of scientific research on how to employ expert systems to raise the quality of strategic decision-making processes in universities. Thus the purpose of the research is to fill this research gap by investigating how expert systems will enhance the quality of the strategic decision-making process in universities. The research design is a case study applied in Ain Shams University as a model of public universities in a developing country. This research makes a new research contribution by suggesting a futuristic proposal for improving the quality of the strategic decision-making process in universities through employing expert systems that are based on the theoretical framework of the research and the results of the field study.

Decision-maker's overconfidence and international performance: the role of the adoption of intuitive practices

PurposeThe paper analyses the influence of the decision-makers' overconfidence on the intuitive practices' adoption, as well as on the international performance during international strategic decision-making processes (SDMPs) of small- and medium-sized enterprises (SMEs). Moreover, the study investigates the possible mediating effect of intuition on the relationship between overconfidence and international performance.Design/methodology/approachA semi-structured questionnaire based on a sample of 160 SMEs and a regression analysis have been employed.FindingsResults show a negative relationship between intuition and international performance and a positive one between overconfidence and international performance. Furthermore, a negative relation between overconfidence and intuition has been identified. Findings also highlight the mediating role of intuition in the relationship between overconfidence and international performance.Practical implicationsThe paper provides valuable implications related to the analysis of overconfidence as a critical decision-maker's character and intuition as a feature of the decision-making methodology. Moreover, the study offers indications for SMEs facing complex strategic decisions.Originality/valueThe paper adopts an original perspective by combining the SDMP analysis with that of international strategy within the SMEs context. Additionally, the study enriches the existing literature by (1) investigating overconfidence in the decision-making; (2) enhancing the examination of overconfidence and intuitive practices in the international SDMP; (3) deepening the research field focused on the identification of the intuitive processes' predictors that is still in its infancy.

Механизмы применения Золотого правила нравственности и экономическая политика современной России

The article analyzes the interaction of national economic, legal and social macrosystems as a complex metasystem, justifies and solves the problem of their balance (equilibrium) based on the Berger equilibrium concept, which is a mathematical reflection of the Golden Rule of Morality. The influence of morality, understood in the sense of Kant’s imperative or the Golden Rule of Morality, close to it, on the process of strategic decision-making in the national complex metasystem is considered. A Nash equilibrium model of the three considered macrosystems is described as a reflection of the currently applied neoliberal economic doctrine. Using systems theory and game theory an alternative to it moral-philo­sophical economic doctrine (based on the Golden Rule of Morality) is substantiated. Rele­vant is the description of the model of system equilibrium of the complex metasystem on the basis of the Golden Rule of Morality to determine effective strategic decisions under conditions of uncertainty in the social sphere, which reflects the ideas of building a social state. The research is multidisciplinary as it uses synthesis of scientific approaches of sys­tems analysis, philosophical ethics, economics, law, sociology, game theories, manage­ment and systems.

Shifting boundaries in healthcare supply chains' HRM: a qualitative perspective

Human resource (HR) functionally lies at the kernel of supply chains for a variety of expectations it meets in various roles. However, which role is more contributing to the organisational effectiveness is an issue worth investigating. This study aims at exploring the advancing nature of traditional HR roles using Ulrich's (1997) four roles typology in the context of healthcare supply chains operating in India. Furthermore, it aims to assess the association of HR roles with HR effectiveness. The experts' opinions, arguments, point of views and a thorough literature review helped in deriving a conceptual research model. The data collected through structured telephonic interviews from 26 experts of healthcare supply chain entities were analysed using NVivo 10.0 software. The researchers found that the HR function is receiving increased attention constantly and the HR managers are being engaged in the strategic decision-making process. It concludes that certain non-core HR functions are being outsourced.