Decision-making and firm success

Academy of Management Executive

Volumn 18, Issue 4, 2004, Pages 8-12

  Ireland, R Duarne ^a   Miller, C Chet ^b  

^a TEXAS A AND M UNIVERSITY   (United States)

^b Faculty Affairs at the School

Author keywords

[No Author keywords available]

Indexed keywords

EID: 11044220842     PISSN: 10795545     EISSN: None     Source Type: Journal    
DOI: 10.5465/AME.2004.15268665     Document Type: Review

References (31)

1. Increasingly, firm success is seen as being quite multi-dimensional. To read an intriguing description of the relationship between the idea of sustainability of the global environment and the creation of shareholder value, see Hart, S. L., & Milstein, M. B. 2003. Creating sustainable value. The Academy of Management Executive, 17(2): 56-67.
2. A number of scholars describe organizations as collections of knowledge sets. Works to read to learn more about this perspective include: Grant, R. M. 1996. Knowledge, strategy, and the theory of the firm. Strategic Management Journal, 17: 109-122; Kazanjian, R. K., Drazin, R., & Glynn, M. A. 2002. Implementing strategies for corporate entrepreneurship: A knowledgebased perspective. In Hitt, M. A., Ireland, R. D., Camp, S. M., & Sexton, D. L. Strategic entrepreneurship: Creating a new mindset: 173-199. London: Blackwell Publishers; Kogut, B., & Zander, U. 1992. Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science, 3: 383-397.
3. A number of scholars describe organizations as collections of knowledge sets. Works to read to learn more about this perspective include: Grant, R. M. 1996. Knowledge, strategy, and the theory of the firm. Strategic Management Journal, 17: 109-122; Kazanjian, R. K., Drazin, R., & Glynn, M. A. 2002. Implementing strategies for corporate entrepreneurship: A knowledgebased perspective. In Hitt, M. A., Ireland, R. D., Camp, S. M., & Sexton, D. L. Strategic entrepreneurship: Creating a new mindset: 173-199. London: Blackwell Publishers; Kogut, B., & Zander, U. 1992. Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science, 3: 383-397.
4. A number of scholars describe organizations as collections of knowledge sets. Works to read to learn more about this perspective include: Grant, R. M. 1996. Knowledge, strategy, and the theory of the firm. Strategic Management Journal, 17: 109-122; Kazanjian, R. K., Drazin, R., & Glynn, M. A. 2002. Implementing strategies for corporate entrepreneurship: A knowledgebased perspective. In Hitt, M. A., Ireland, R. D., Camp, S. M., & Sexton, D. L. Strategic entrepreneurship: Creating a new mindset: 173-199. London: Blackwell Publishers; Kogut, B., & Zander, U. 1992. Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science, 3: 383-397.
5. See Fiegener, M. K. 1997. The control of strategy in dynamic versus stable environments. Journal of Managerial Issues, 9:72-85.
6. For an analysis of a different approach that executives can use to help their firms learn how to respond to today's rapidly changing business environment, see Cummings, S., & Angwin, D. 2004. The future shape of strategy: Lemmings or chimeras? The Academy of Management Executive, 18(2): 21-36.
7. For a well-known and widely cited analysis of these issues, see Huber, G. P. 1991. Organizational learning: The contributing processes and the literatures. Organization Science, 2: 88-115.
8. See March, J. G. 1996. A preface to understanding how decisions happen in organizations. In Shapira, A. Organizational decision making. New York: Cambridge University Press.
9. Additional information about the foci of managers in terms of decision-making issues can be examined by reading Floyd, S. W., & Lane, P. J. 2000. Strategizing throughout the organization: Managing role conflict in strategic renewal. Academy of Management Review, 25: 154-177.
10. The specific nature of middle-level managerial work is described in Kuratko, D. F., Ireland, R. D., Covin, J. G., & Hornsby, J. S. 2005. A model of middle-level managers' entrepreneurial behavior. Entiepreneurship Theory and Practice, in press.
11. See Mitroff, I. I., & Mason, R. O. 1980. Structuring ill-structured policy issues: Further explorations in a methodology for messy problems. Strategic Management Journal, 1: 331-342.
12. Eisenhardt, K. M. 1999. Strategy as strategic decision making. Sloan Management Review, 40: 65-72.
13. A widely read analysis of real options as a decision-making tool appears in McGrath, R. M. 1997. A real options logic for initiating technology positioning investments. Academy of Management Review, 22: 974-996.
14. st century? The Academy of Management Executive (in press); Mintzberg, H. 1994. The rise and fall of strategic planning. New York: Free Press.
15. st century? The Academy of Management Executive (in press); Mintzberg, H. 1994. The rise and fall of strategic planning. New York: Free Press.
16. st century? The Academy of Management Executive (in press); Mintzberg, H. 1994. The rise and fall of strategic planning. New York: Free Press.
17. For more information about this subject, see Hambrick, D. C., & Finkelstein, S. 1987. Managerial discretion: A bridge between polar views on organizations. In Cummings, L. L., & Stow, B. M. Research in organizational behavior. Greenwich, CT.: JAI Press.
18. See Eisenhardt, K. M. 1989. Making fast strategic decisions in high-velocity environments. Academy of Management Journal 32: 543-576.
19. See Flynn, D., & Forman, A. M. 2001. Life cycles of new venture organizations: Different factors affecting performance. Journal of Developmental Entiepreneuiship, 6: 41-58; Nutt, P. C. 1998. Evaluating alternatives to make choices. Omega, 26: 333-354; Simons, T., Pelled, L. H., & Smith, K. A. 1999. Making use of difference: Diversity, debate, and decision comprehensiveness in top management teams. Academy of Management Journal, 42: 662-637.
20. See Flynn, D., & Forman, A. M. 2001. Life cycles of new venture organizations: Different factors affecting performance. Journal of Developmental Entiepreneuiship, 6: 41-58; Nutt, P. C. 1998. Evaluating alternatives to make choices. Omega, 26: 333-354; Simons, T., Pelled, L. H., & Smith, K. A. 1999. Making use of difference: Diversity, debate, and decision comprehensiveness in top management teams. Academy of Management Journal, 42: 662-637.
21. See Flynn, D., & Forman, A. M. 2001. Life cycles of new venture organizations: Different factors affecting performance. Journal of Developmental Entiepreneuiship, 6: 41-58; Nutt, P. C. 1998. Evaluating alternatives to make choices. Omega, 26: 333-354; Simons, T., Pelled, L. H., & Smith, K. A. 1999. Making use of difference: Diversity, debate, and decision comprehensiveness in top management teams. Academy of Management Journal, 42: 662-637.
22. Additional information about these points appears in Glick, W. H., Miller, C. C., & Huber, G. P. 1993. The impact of upper-echelon diversity on organizational performance. In Huber, G. P., & Glick, W. H. Organizational change and redesign: Ideas and insights for improving performance. New York: Oxford University Press; Priem, R. L., Rasheed, A. M. A., & Kotulic, A. G. 1995. Rationality in strategic decision processes, environmental dynamism and firm performance. Journal of Management, 21: 913-929.
23. Additional information about these points appears in Glick, W. H., Miller, C. C., & Huber, G. P. 1993. The impact of upper-echelon diversity on organizational performance. In Huber, G. P., & Glick, W. H. Organizational change and redesign: Ideas and insights for improving performance. New York: Oxford University Press; Priem, R. L., Rasheed, A. M. A., & Kotulic, A. G. 1995. Rationality in strategic decision processes, environmental dynamism and firm performance. Journal of Management, 21: 913-929.
24. Bourgeois, L. I., & Eisenhardt, K. M. 1988. Strategie decision processes in high velocity environments: Four cases in the minicomputer industry. Management Science, 34: 816-835.
25. Eisenhardt, 1999.
26. See Thompson, L. Improving the creativity of organizational work groups. The Academy of Management Executive, 17(1): 96-109.
27. Sometimes, managers find themselves intervening with parties when conflict surfaces. For an interesting explanation of how this is done, see P. S. Nugent. 2002. Managing conflict: Third-party interventions for managers. The Academy of Management Executive, 16(1): 139-154.
28. See Miller, C. C., Burke, L. M., & Glick, W. H. 1998. Cognitive diversity among upper-echelon executives: Implications for strategic decision processes. Strategic Management Journal, 19: 39-58.
29. See Amason, C. C., & Sapienza H. 1.1997. The effects of top management size and interaction norms on cognitive and affective conflict. Journal of Management, 23: 495-516; Korsgaard, M. A., Schweiger, D. M., & Sapienza, H. J. 1995. Building commitment, attachment, and trust in strategic decision-making teams: The role of procedural justice. Academy of Management Journal, 38: 60-84.
30. See Amason, C. C., & Sapienza H. 1.1997. The effects of top management size and interaction norms on cognitive and affective conflict. Journal of Management, 23: 495-516; Korsgaard, M. A., Schweiger, D. M., & Sapienza, H. J. 1995. Building commitment, attachment, and trust in strategic decision-making teams: The role of procedural justice. Academy of Management Journal, 38: 60-84.
31. See Schweiger, D. M., Sandberg, W. R., & Rechner, P. L. 1989, Experiential effects of dialectical inquiry, devil's advocacy, and consensus approaches to strategic decision making. Academy of Management Joumal, 32: 745-772.