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The Effects Of Information Technology On Strategic Decision Making

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  • Steve Molloy
  • Charles R. Schwenk

Abstract

Information technology (IT) may be defined as computer‐based technology for the storage, accessing, processing and communication of information. Many writers have suggested that the use of IT should improve strategic decisions and have developed a number of propositions about the effects of IT on strategic decision making. However, no study has yet addressed the specific effects of IT on major phases of this process. Using Mintzberg, Raisinghani and Theoret's (1976, ‘The structure of unstructured decision processes’, Administrative Science Quarterly, 21, 2, 246–75) strategic decision‐making model, this study assessed the effects of IT on the major phases of the process through an intensive examination of eight decisions in four companies. the results of the study provide new information on the specific ways IT improves decision‐making efficiency and effectiveness at each stage of the strategic decision process.

Suggested Citation

  • Steve Molloy & Charles R. Schwenk, 1995. "The Effects Of Information Technology On Strategic Decision Making," Journal of Management Studies, Wiley Blackwell, vol. 32(3), pages 283-311, May.
    • Handle: RePEc:bla:jomstd:v:32:y:1995:i:3:p:283-311
    DOI: 10.1111/j.1467-6486.1995.tb00777.x
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    Cited by:

    1. Neil Terry & Anne Macy & Amjad Abdullat, 2010. "Stock Market Volatility: A Comparison Of Computer And Cellular Hardware Companies," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 4(3), pages 11-24.
    2. Cao, Guangming & Duan, Yanqing & Cadden, Trevor, 2019. "The link between information processing capability and competitive advantage mediated through decision-making effectiveness," International Journal of Information Management, Elsevier, vol. 44(C), pages 121-131.
    3. Citroen, Charles L., 2011. "The role of information in strategic decision-making," International Journal of Information Management, Elsevier, vol. 31(6), pages 493-501.
    4. André Hanelt & René Bohnsack & David Marz & Cláudia Antunes Marante, 2021. "A Systematic Review of the Literature on Digital Transformation: Insights and Implications for Strategy and Organizational Change," Journal of Management Studies, Wiley Blackwell, vol. 58(5), pages 1159-1197, July.
    5. Meissner, Philip & Poensgen, Christian & Wulf, Torsten, 2021. "How hot cognition can lead us astray: The effect of anger on strategic decision making," European Management Journal, Elsevier, vol. 39(4), pages 434-444.
    6. E Tapinos & R G Dyson & M Meadows, 2011. "Does the Balanced Scorecard make a difference to the strategy development process?," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(5), pages 888-899, May.
    7. Korzynski, Pawel & Kozminski, Andrzej Krzysztof & Baczynska, Anna & Haenlein, Michael, 2021. "Bounded leadership: An empirical study of leadership competencies, constraints, and effectiveness," European Management Journal, Elsevier, vol. 39(2), pages 226-235.
    8. Jinyoung Min & Junyeong Lee & Sunghan Ryu & Heeseok Lee, 2022. "The effects of interaction between team climates and KMS value perception on knowledge activities: a multilevel socio-technical systems approach," Information Technology and Management, Springer, vol. 23(1), pages 1-21, March.
    9. Shrestha, Yash Raj & Krishna, Vaibhav & von Krogh, Georg, 2021. "Augmenting organizational decision-making with deep learning algorithms: Principles, promises, and challenges," Journal of Business Research, Elsevier, vol. 123(C), pages 588-603.
    10. repec:dgr:rugsom:04a03 is not listed on IDEAS
    11. Genni Perlangeli & Andrea Rea, 2021. "The Industry 4.0, the Corporate Social Responsibility and the Impacts of Brand in the Digital Transformation," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 13(4), pages 1-54, December.
    12. Boonstra, Albert, 2004. "An empirical taxonomy of IS decision-making processes," Research Report 04A03, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    13. Gerard P. Hodgkinson & Barbara Burkhard & Nicolai J. Foss & Dietmar Grichnik & Riikka M. Sarala & Yi Tang & Marc Van Essen, 2023. "The Heuristics and Biases of Top Managers: Past, Present, and Future," Journal of Management Studies, Wiley Blackwell, vol. 60(5), pages 1033-1063, July.
    14. Laure Cabantous & Jean-Pascal Gond, 2011. "Rational Decision Making as Performative Praxis: Explaining Rationality's Éternel Retour," Organization Science, INFORMS, vol. 22(3), pages 573-586, June.
    15. Meissner, Philip & Wulf, Torsten, 2017. "The effect of cognitive diversity on the illusion of control bias in strategic decisions: An experimental investigation," European Management Journal, Elsevier, vol. 35(4), pages 430-439.

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