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Article

John A. Yankey and Vera Vogelsang-Coombs

Strategic planning is a key management process in nonprofit organizations and a collaborative methodology for addressing complex community needs. This entry presents an overview of strategic planning, with dual emphasis on the content and format of the final product. It highlights phases and steps in the planning process, along with trends and directions for such planning in the future. Despite its increased use, however, confusion and skepticism about the value of strategic planning remain. Therefore, we describe specific approaches that have yielded good results.

Article

Steven A. Stewart and Allen C. Amason

Since the earliest days of strategic management research, scholars have sought to measure and model the effects of top managers on organizational performance. A watershed moment in this effort came with the 1984 introduction of Hambrick and Mason’s upper echelon view and their contention that firms are a reflection of their top management teams (TMT). An explosion of research followed and hundreds, if not thousands, of manuscripts have since been published on the subject. While a number of excellent reviews of this extensive literature exist, a relative few have asked questions about the overall state and future of the field. We undertook this assessment in an effort to answer some key questions. Are we still making progress on the big questions that gave rise to the upper echelon view, or have we reached a point of diminishing returns with this stream of research? If we are at an inflection point, what are the issues that should drive future inquiry about top management teams?

Article

Disproportionate policy response—which is composed of two core concepts, namely policy overreaction and under-reaction—is typically understood to be a lack of “fit” or balance between the costs of a public policy and the benefits deriving from this policy and/or between a policy’s ends and means. The disproportionate policy perspective introduces an intentional component into disproportionate response. It represents a conceptual turn whereby the concepts of policy overreaction and under-reaction are reentering the policy lexicon as types of intentional policy responses that are largely undertaken when political executives are vulnerable to voters. In times of crisis, disproportionate policy responses may be intentionally designed, implemented as planned, and sometimes successful in achieving policy goals and in delivering the political benefits sought by the political executives who design them. The premise underlying this argument is that crises vary in many respects, some of which may incentivize a deliberate crisis response by political executives that is either excessive, or lacking. For example, when crises occur at times of electoral vulnerability, the relevancy of policy instruments’ visibility, theatricality, spectacularity, and popularity may dominate the calculus of crisis management decisions. The same applies in cases where strong negative emotions emerge, and subsequently, political executives may opt to overwhelm hysterical populations cognitively and emotionally, trying to convince them that the policy system is viable.

Article

Lee Epstein and Nicholas W. Waterbury

Once the sole province of U.S. scholars—and mostly political scientists at that—researchers throughout the world, drawing on history, economics, law, and psychology, are analyzing judicial behavior: why judges make the choices they do and what effect those choices have on society. How the field moved from a modest, niche project of political scientists working in the mid-20th century to the powerhouse it has become makes for an interesting story, marked by several key developments along the way. One is certainly the influx of scholars and theories from other disciplines that have supplemented and challenged existing knowledge. Other developments include the growing interest in judging from a comparative perspective; the massive improvements in data acquisition through technological advancements; and, perhaps most importantly, the sheer number of topics that now fall under the rubric of “judicial behavior.” Although the field has advanced markedly, much work remains. Many of the canonical theories of judicial behavior rest on the assumption that judges are rational, goal-oriented, actors. But decades’ worth of studies in social psychology, including experiments on judges, raise serious questions about the plausibility of this assumption. Should observational results converge with the experimental evidence, scholars must grapple with how to integrate insights from social psychology into the analysis of judicial behavior. On the empirical side, however notable the improvements in data infrastructure, most products ignore obvious objects of interest: the actual opinions produced by judges. Developing tools carefully calibrated to account for the unique ways judges develop and frame their work products presents yet another challenge. But it is one worth pursuing if only because of its potential to bring scholars closer to the goal of developing a fuller, more realistic conception of judicial behavior.

Article

Bill Wooldridge and Birton Cowden

Scholarly interest in how managers make strategic decisions dates from the inception of the strategic management field and continues in the present. Although such decision-making was originally conceived as a completely rational, top-management process, contemporary thinking recognizes that strategies from across multiple organizational levels change within social and political contexts. Within this broad domain, multiple research streams address a wide variety of topics and issues. Prominent among these are, (1) the extent to which strategic decisions are formed through comprehensive analysis versus piecemeal decision-making, (2) how characteristics of top managers and the composition of top management teams affect strategic decision-making, (3) the role of politics, conflict, and consensus in strategy making, (4) how cognitive biases and heuristics influence the process, (5) when and how intuitive judgments can form the basis for effective decision-making, and (6) how managers at various organizational levels participate in the process. Research across these streams is both descriptive and normative, with a focus on contextual contingencies and relationships to firm performance. Taken as a whole this literature has significantly enhanced understanding of how strategies form within organizations. Contemporary work continues to provide new insights and demonstrates the continued value of this productive area of study.

Article

The process of foreign policy decision making is influenced in large part by beliefs, along with the strategic interaction between actors engendered by their decisions and the resulting political outcomes. In this context, beliefs encompass three kinds of effects: the mirroring effects associated with the decision making situation, the steering effects that arise from this situation, and the learning effects of feedback. These effects are modeled using operational code analysis, although “operational code theory” more accurately describes an alliance of attribution and schema theories from psychology and game theory from economics applied to the domain of politics. This “theory complex” specifies belief-based solutions to the puzzles posed by diagnostic, decision making, and learning processes in world politics. The major social and intellectual dimensions of operational code theory can be traced to Nathan Leites’s seminal research on the Bolshevik operational code, The Operational Code of the Politburo. In the last half of the twentieth century, applications of operational code analysis have emphasized different cognitive, emotional, and motivational mechanisms as intellectual dimensions in explaining foreign policy decisions. The literature on operational code theory may be divided into four general waves of research: idiographic-interpretive studies, nomothetic-typological studies, quantitative-statistical studies, and formal modeling studies. The present trajectory of studies on operational code points to a number of important trends that straddle political psychology and game theory. For example, the psychological processes of mirroring, steering, and learning associated with operational code analysis have the potential to enrich our understanding of game-theoretic models of strategic interaction.

Article

Vinícius Chagas Brasil and J.P. Eggers

In competitive strategy, firms manage two primary (non-financial) portfolios—the product portfolio and the innovation portfolio. Portfolio management involves resource allocation to balance the important tradeoff of risk reduction and upside maximization, with important decisions around the evaluation, prioritization and selection of products and innovation projects. These two portfolios are interdependent in ways that create reinforcing dynamics—the innovation portfolio is the array of potential future products, while the product portfolio both informs innovation strategy and provides inputs to future innovation efforts. Additionally, portfolio management processes operate at two levels, which is reflected in the literature's structure. The first is a micro lens which focuses on management frameworks to boost portfolio performance and success through project-level selection tools. This research has its roots in financial portfolio management, relates closely to research on new product development and marketing product management, and explores the effects of portfolio management decisions on other organizational functions (e.g., operations). The second lens is a macro lens on portfolio management research, which considers the portfolio as a whole and integrates key organizational and competitive concepts such as entry timing, portfolio management resource allocation regimes (e.g., real options reasoning), organizational experience, and the culling of products and projects. This literature aims to set portfolio management as higher level organizational decision-making capability that embodies the growth strategy of the organization. The organizational ability to manage both the product and innovation portfolios connects portfolio management to key strategic organizational capabilities, including ambidexterity and dynamic capabilities, and operationalizes strategic flexibility. We therefore view portfolio management as a source of competitive advantage that supports organizational renewal.