The constructive aspect of political behavior in strategic decision-making: The role of diversity

While there have been extensive empirical and theoretical investigations on political behavior, most previous empirical studies have focused on political behavior as a negative force. In order to extend prior research, this study reconciles the upper echelons theory with the broaden-and-build theory and the work of the positive organizational behavior movement to investigate the antecedents and effects of constructive politics. It explores how different aspects of diversity influence constructive politics and the extent to which the latter contribute to decision performance, namely, decision success and decision pace. Data were drawn from 200 survey respondents in Dubai. The results supported not only the role of constructive politics in decision performance but also the role of demographic and competency diversity in constructive politics. The current research contributes to the exploration of constructive politics in decision-making and raises additional questions in an attempt to supply, with related research, significant missing portions of the political behavior story.     

Is bounded-vision an adequate explanation of strategic decision-making failures

One important area in which Management Science should be involved must surely be in the prevention of corporate failure. In this paper we therefore use a scientific methodology to try to identify the major causes of such failure. Two widely differing systems are examined and a large number of hypotheses considered as explanations of failure. In each case the only hypothesis which we are unable to reject, is that prior to the failure the dominant decision-makers in the system were not prepared to accept facts which were plainly available and which, if acted upon, could have prevented disaster. This allows us to suggest some ways of helping to prevent failure. Nevertheless, we feel that research into the mechanisms generating this phenomenon, which we have called bounded-vision, is required before adequate technologies can be designed.     

Board members’ contribution to strategic decision-making in small firms

This article explores how the boards of small firms actually undertake to perform strategic tasks. Board strategic involvement has seldom been investigated in the context of small firms. We seek to make a contribution by investigating antecedents of board strategic involvement. The antecedents are “board working style” and “board quality attributes”, which go beyond the board composition features of board size, CEO duality, the ratio of non-executive to executive directors and ownership. Hypotheses were tested on a sample of 497 Norwegian firms (from 5 to 30 employees). Our results show that board working style and board quality attributes rather than board composition features enhance board strategic involvement. Moreover, board quality attributes outperform board working style in fostering board strategic involvement.     

Fast and rigorous: Configurational determinants of strategic decision-making balance

A longstanding debate in the strategic decision-making literature has focused on whether top management teams (TMTs) can effectively balance speed and comprehensiveness when making important decisions. In our research, we build on early insights and pivot from considering whether TMTs can engage indecision-making that balances these tensions to focus instead on when certain types of TMTs are able to achieve such balance. We employ a novel configurational analytical approach and a theoretical framework built from role theory to examine the CEO-TMT interface in a new way. In so doing, we are able to identify specific CEO-TMT constellations that support decision-making that is both fast and rigorous. Using a unique primary dataset and an abductive, configurational approach grounded in fuzzy set qualitative comparative analysis (fsQCA), we identify six specific leader-team configurations that each facilitate decision processes characterized by rigorous intra-team debate, meaningful reconciliation of divergent ideas, and fast decision speed (which we describe as strategic decision-making balance). The range of CEO-TMT configurations that emerge from our analyses contribute new theory and findings for the strategic decision-making and interface literatures more broadly, as well as the specific research streams on executive gender, humility, and TMT structure.     

An integrated multi-objective decision-making process for multi-period lot-sizing with supplier selection

Supplier selection is a multi-criteria problem which includes both tangible and intangible factors. In these problems if suppliers have capacity or other different constraints two problems will exist: which suppliers are the best and how much should be purchased from each selected supplier? In this paper an integrated approach of analytic network process (ANP) and multi-objective mixed integer linear programming (MOMILP) is proposed. This integrated approach considers both tangible and intangible factors in choosing the best suppliers and defines the optimum quantities among selected suppliers to maximize the total value of purchasing (TVP), and to minimize the total cost and total defect rate and to balance the total cost among periods. The priorities are calculated for each supplier by using ANP. Four different plastic molding firms working with a refrigerator plant are evaluated according to 14 criteria that are involved in the four clusters: benefits, opportunities, costs and risks (BOCR). The priorities of suppliers will also be used as the parameters of the first objective function. This multi-objective and multi-period real-life problem is solved by using previous techniques and a reservation level driven Tchebycheff procedure (RLTP). Finally the most preferred nondominated solutions are determined by considering the decision maker's (DM's) preferences and the results obtained by these techniques are compared.     

Fuzzy multi-attribute decision-making for grouping of electronic components in process planning

The grouping of objects problem has a wide-range of applications in industry. In electronic assembly planning, grouping components play an important role as they can reduce drastically the number of possible sequences of operations. This paper considers the grouping problem of electronic component families based on their multiple attributes. The difficulty lies with the conflict of criteria when selecting a certain component into a group. In order to overcome this difficulty, the proposed approach introduces the concept of fuzziness, which expresses the degree of concordance on the decision. An example of classification electronic components is presented to illustrate the proposed method.     

Strategic adaptation as a partially rational process

Limits to the action of strategic adaptation derive essentially from the temporal and dimensional complexity of the system of the firm. Consequently, a ‘temporal/organizational area decision-making matrix’ has been developed and decisions classified accordingly. Problem-solving approaches adopted in facing complexity and uncertainty appear to be based mainly on the criterion of simplification and on that which ensues of decomposition. Measures currently applied in the process of simplification are examined, including utilization of models. Extra-rational or even irrational elements intervene in the process of strategic adaptation, caused primarily by complexity and by the social-heuristic nature of planning. Basic areas in which extra-rational elements (such as personal opinions, imagination and intuition) play an essential role are singled out and appropriate organizational mechanisms are identified which could assist in attaining the maximum synergic effect from the combined application of rational and extra-rational contributions to planning.     

The robustness of linear models for decision-making

This paper elaborates on some issues discussed by Moskowitz, who presented evidence that linear multiple regression models, estimated from decisions made by individuals, often outperform the individuals themselves. In discussing his results, Moskowitz (1) suggested that inconsistency in information utilization by individuals may account for the relative superiority of regression models, and (2) expressed concern over the robustness of linear regression models to changes in (a) information environments, (b) weighting parameters, and (c) functional form of the model. This paper discusses reasons (in addition to inconsistency) for the relative superiority of model over man, and it summarizes recent research in psychology concerning the robustness of linear regression models (and linear models in general). This paper is supportive, rather than critical, of Moskowitz's research.     

Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal

In this qualitative study, we explore how incumbent firms in traditional industries build dynamic capabilities for digital transformation. Digital transformation has been defined as the use of new digital technologies, such as mobile, artificial intelligence, cloud, blockchain, and the Internet of things (IoT) technologies, to enable major business improvements to augment customer experience, streamline operations, or create new business models. In making sense of digital transformation, we discovered that leaders in various industry circles use the term inconsistently to describe various strategizing and organizing activities; in addition, the term has gained limited scholarly attention as a context for study of strategic change. Drawing on senior executives' experiences with leading digitalization projects at incumbent firms, we propose a process model comprising of nine microfoundations to reveal the generic contingency factors that trigger, enable, and hinder the building of dynamic capabilities for digital transformation. Our findings reveal that digital transformation is an ongoing process of using new digital technologies in everyday organizational life, which recognizes agility as the core mechanism for the strategic renewal of an organization's (1) business model, (2) collaborative approach, and eventually the (3) culture.     

How to integrate strategic planning into your management process

The primary purpose of strategic planning is to enable management to make decisions today which will affect the firm over the long run where the long run is characterized by risk and uncertainty. If strategic planning is to be useful to management it must be an integral part of the decision making process and not merely an appendage to the management process. In this paper we shall define some of the problems involved in integrating strategic planning and strategic planning tools into the decision process. We shall also suggest some possible solutions to these problems.     

The hazards of strategic planning for global markets

Global strategic marketing planning has emerged as a key process in managing today's worldwide marketplace. This survey of 90 large American global corporations reveals that most are bottom-up planners. US firms appear to have distinct cost and numbers orientations. Industry and competitive analyses are used in many companies, although managers appear to lack suitable frameworks for SWOT analyses. Economic climate changes tend to be most disruptive to global planning efforts. When faced with non-achievement of goals, most firms reformulate both objectives and strategies.     

The strategic divestment decision

Management, periodicals have of late been reflecting the increasing attention corporate managers are paying to the difficult problem of divestment. The purpose of this paper is to outline conceptually a planning and analytical framework for dealing with divestments.Corporate Planners in manufacturing organizations will find particular relevance in the author's comments.     

The competitive advantage: strategic thinking for physician leaders

Physician executives should manage their career strategies like a well-run company. Learn how to start thinking aout your career strategy.     

Planning for strategic flexibility

In the last 10 years much has been written about the increasing environmental uncertainty firms and other organizations have to cope with. This uncertainty made it much more difficult to plan, since unexpected events often made them obsolete.Flexibility is frequently considered as a way to ‘solve’ the problem of environmental turbulence.In this article, based upon theoretical and empirical research, the author explores the concept of flexibility, puts forward some of his research findings, and advances some implications on how to increase strategic flexibility.     

Horizons for strategic planning

In this paper we present a normative model for setting time horizons for planning. Provided that certain conditions are met, we can state that only part of the future is relevant for present strategic planning, and a study of the future beyond that time horizons is a waste of resources.Following the introduction the impact of predetermined planning horizon on planning is discussed. Next, the model is presented: the problem is defined, developed and solved. The discussion of the model is designed to incorporate—and to show its implication on—existing views and methods for setting time horizons for strategic planning. Thus, simplifying assumptions which facilitate the mathematical solution of the problem, are discussed and relaxed in order to show how realistic situations are illuminated by the model.     

Organizing for strategic management

In this paper, the author—a well-known Dutch academic and consultant—discusses the factors which make ‘strategic management’ effective. Among these, a dominant factor is the organization climate which, in its turn, is determined by the quality of the managers and the availability of alternatives. He suggests that to improve the organization climate in which strategic management can be effective, the quality of the managers is a crucial factor. The scope for alternatives is an important constraint. This article assesses common problems and failures in strategic management and gives some suggestions for organizing it, including the use of consultants and the role of formal procedures.     

Metachoice for strategic analysis

A necessary precursor to strategic choice is the selection of a strategic choice evaluation method — metachoice. Unfortunately, managers are unlikely to find much guidance on how to conduct metachoice analysis in the strategy literature. In light of this problem, a template is presented based on two questions that must be addressed by those engaged in strategic analysis generally and metachoice specifically: (1) what are the organization's strategic goals? (2) how willing are they to monetize their predictions and valuations? Four resulting choice methods are presented and discussed: Discounted Cash Flow Analysis (including variants based on real options), Profitability Analysis, Modified Discounted Cash Flow Analysis and Multi-Goal Analysis.     

The components of strategic planning

What is the current level of strategic planning in the United States? What objectives are quantified in the strategic plans? What kinds of environmental factors are identified in the planning process? What areas are planned for? How often are the strategic plans reviewed? These are among the questions which were raised in a recent survey of 323 companies whose results are summarized in this paper. It is hoped that this study will permit practitioners to compare their planning with planning being performed in their industry.Suggested improvements in the stategic planning process include more frequent monitoring of performance against the plans, more comprehensive environmental surveillance, and greater emphasis on organizational structure plans. The strategic planning process was found to be constantly evolving and cyclical. The strategic planning activity expanded during adversity and contracted when business prospects were good.