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The Influence of Decision, Environmental and Firm Characteristics on the Rationality of Strategic Decision‐Making

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  • Said Elbanna
  • John Child

Abstract

abstract This paper develops an integrated model of strategic decision‐making rationality. The model is informed by three perspectives that respectively identify decision, environmental and firm characteristics as influences on the rationality of decision processes. The results of a study in Egypt indicate that the rationality of strategic decision‐making processes is shaped by variables identified by all three perspectives, and that such decision processes cannot adequately be modelled in terms of a single perspective only. However, the study also suggests that the three perspectives do not contribute in equal measure to explaining strategic decision making, and that the national setting is relevant for the extent to which strategic decision‐makers take account of environmental characteristics. The location of the investigation in Egypt highlights some deviations from previous research that could be attributed to nation‐specific factors, both cultural and institutional.

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  • Said Elbanna & John Child, 2007. "The Influence of Decision, Environmental and Firm Characteristics on the Rationality of Strategic Decision‐Making," Journal of Management Studies, Wiley Blackwell, vol. 44(4), pages 561-591, June.
    • Handle: RePEc:bla:jomstd:v:44:y:2007:i:4:p:561-591
    DOI: 10.1111/j.1467-6486.2006.00670.x
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    1. Whittington, Richard & Mayer, Michael, 2000. "The European Corporation: Strategy, Structure, and Social Science," OUP Catalogue, Oxford University Press, number 9780199242085.
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