IDEAS home Printed from https://ideas.repec.org/a/inm/ororsc/v10y1999i5p672-690.html
   My bibliography  Save this article

Argumentation Rationality of Management Decisions

Author

Listed:
  • Axel v. Werder

    (Technical University Berlin, WW 2, Uhlandstr. 4-5, D-10623 Berlin, Germany)

Abstract

This article is concerned with the assessment of the substantiation of management decisions in practice. The necessity for this undertaking derives from the fact that to be successful, management must choose the right extent of analysis for preparing major decisions. Testing this hypothesis requires the ability to measure the thoroughness of a decision preparation and to relate different levels of thoroughness to the success of the decision outcomes. In this paper, the author first presents the conceptual framework of argumentation rationality which makes it possible to measure the thoroughness of a decision preparation—or in other words, the soundness of reasons given for the decision.For a concrete-trial usage, the concept is then combined with the methodology of account analysis introduced by Lewin (Lewin 1996, Lewin and Hunter 1996, Hunter 1999) for the research project on “New Organization Forms in the Information Age” (NOFIA). The arguments given explicitly in the accounts express rationales for management decisions and thus give hints on the intensity of the decision preparation. Using a simplified version of the measuring concept which assesses the argumentation rationality on three selected rationality determinants (pro/contra relation, depth of arguments, and breadth of arguments), two different types of rationality analyses are carried out to illustrate the fruitfulness of the approach. First, on the basis of 16 accounts concerning an important strategic decision of Daimler-Benz made in 1985 (becoming an integrated technology group), the arguments discussed during that time are identified and structured for assessing the substantiation of decision preparation. The developed structure of reasoning not only allows a formal evaluation, but in addition offers starting points for a substantial discussion of the change action. Secondly, 138 accounts from the German automotive industry of the years 1990–1997 are analyzed in order to identify first typical patterns of management argumentation. Based on the available empirical foundation, four types of reasoning are isolated, which differ characteristically with respect to the considered rationality determinants. The paper closes with a perspective on significant questions for further elaborating as well as employing the concept in future research.

Suggested Citation

  • Axel v. Werder, 1999. "Argumentation Rationality of Management Decisions," Organization Science, INFORMS, vol. 10(5), pages 672-690, October.
    • Handle: RePEc:inm:ororsc:v:10:y:1999:i:5:p:672-690
    DOI: 10.1287/orsc.10.5.672
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/orsc.10.5.672
    Download Restriction: no
    File URL: https://libkey.io/10.1287/orsc.10.5.672?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Michael A. Hitt & Beverly B. Tyler, 1991. "Strategic decision models: Integrating different perspectives," Strategic Management Journal, Wiley Blackwell, vol. 12(5), pages 327-351, July.
    2. Paul C. Nutt, 1993. "The Formulation Processes and Tactics Used in Organizational Decision Making," Organization Science, INFORMS, vol. 4(2), pages 226-251, May.
    3. Robert A. Burgelman, 1991. "Intraorganizational Ecology of Strategy Making and Organizational Adaptation: Theory and Field Research," Organization Science, INFORMS, vol. 2(3), pages 239-262, August.
    4. Stephen J. Mezias & Mary Ann Glynn, 1993. "The three faces of corporate renewal: Institution, revolution, and evolution," Strategic Management Journal, Wiley Blackwell, vol. 14(2), pages 77-101, February.
    5. Henry Mintzberg & James A. Waters, 1985. "Of strategies, deliberate and emergent," Strategic Management Journal, Wiley Blackwell, vol. 6(3), pages 257-272, July.
    6. Marjolijn S. Dijksterhuis & Frans A. J. Van den Bosch & Henk W. Volberda, 1999. "Where Do New Organizational Forms Come From? Management Logics as a Source of Coevolution," Organization Science, INFORMS, vol. 10(5), pages 569-582, October.
    7. Glenn J. Browne & Shawn P. Curley & P. George Benson, 1997. "Evoking Information in Probability Assessment: Knowledge Maps and Reasoning-Based Directed Questions," Management Science, INFORMS, vol. 43(1), pages 1-14, January.
    8. Robert C. Blattberg & Stephen J. Hoch, 1990. "Database Models and Managerial Intuition: 50% Model + 50% Manager," Management Science, INFORMS, vol. 36(8), pages 887-899, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Arie Y. Lewin & Henk W. Volberda, 1999. "Prolegomena on Coevolution: A Framework for Research on Strategy and New Organizational Forms," Organization Science, INFORMS, vol. 10(5), pages 519-534, October.
    2. Kirsten Martin & Bidhan Parmar, 2012. "Assumptions in Decision Making Scholarship: Implications for Business Ethics Research," Journal of Business Ethics, Springer, vol. 105(3), pages 289-306, February.
    3. Matin Mohaghegh & Andreas Größler, 2020. "The Dynamics of Operational Problem-Solving: A Dual-Process Approach," Systemic Practice and Action Research, Springer, vol. 33(1), pages 27-54, February.
    4. Talaulicar, Till & Grundei, Jens & Werder, Axel v., 2005. "Strategic decision making in start-ups: the effect of top management team organization and processes on speed and comprehensiveness," Journal of Business Venturing, Elsevier, vol. 20(4), pages 519-541, July.
    5. Thomas Hutzschenreuter & Un‐Seok Han & Ingo Kleindienst, 2020. "Exploring managerial intentionality," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(3), pages 406-414, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Friederike Neugebauer & Frank Figge & Tobias Hahn, 2016. "Planned or Emergent Strategy Making? Exploring the Formation of Corporate Sustainability Strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 25(5), pages 323-336, July.
    2. Sirén, Charlotta & Kohtamäki, Marko, 2016. "Stretching strategic learning to the limit: The interaction between strategic planning and learning," Journal of Business Research, Elsevier, vol. 69(2), pages 653-663.
    3. Shepherd, Dean A. & Zacharakis, Andrew, 2002. "Venture capitalists' expertise: A call for research into decision aids and cognitive feedback," Journal of Business Venturing, Elsevier, vol. 17(1), pages 1-20, January.
    4. Jennifer Adolph & Markus Beckmann, 2024. "Corporate sustainability strategy: From definitional ambiguity toward conceptual clarification," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4708-4729, July.
    5. J. Ignacio Canales, 2015. "Sources of Selection in Strategy Making," Journal of Management Studies, Wiley Blackwell, vol. 52(1), pages 1-31, January.
    6. Tina C. Ambos & Julian Birkinshaw, 2010. "How Do New Ventures Evolve? An Inductive Study of Archetype Changes in Science-Based Ventures," Organization Science, INFORMS, vol. 21(6), pages 1125-1140, December.
    7. Daniel Tzabbar & Jaclyn Margolis, 2017. "Beyond the Startup Stage: The Founding Team’s Human Capital, New Venture’s Stage of Life, Founder–CEO Duality, and Breakthrough Innovation," Organization Science, INFORMS, vol. 28(5), pages 857-872, October.
    8. Pascal Le Masson & Armand Hatchuel & Mario Le Glatin & Benoit Weil, 2018. "Designing Decisions In The Unknown: Towards A Generative Decision Model For Management Science," Post-Print hal-01937103, HAL.
    9. van den Oever, Koen, 2017. "Uncharted waters : A behavioral approach to when, why and which organizational changes are adopted," Other publications TiSEM 0136c8c2-ecdd-4f82-8ca7-d, Tilburg University, School of Economics and Management.
    10. Raji Srinivasan & Pamela Haunschild & Rajdeep Grewal, 2007. "Vicarious Learning in New Product Introductions in the Early Years of a Converging Market," Management Science, INFORMS, vol. 53(1), pages 16-28, January.
    11. Clark G. Gilbert, 2006. "Change in the Presence of Residual Fit: Can Competing Frames Coexist?," Organization Science, INFORMS, vol. 17(1), pages 150-167, February.
    12. Talaulicar, Till & Grundei, Jens & Werder, Axel v., 2005. "Strategic decision making in start-ups: the effect of top management team organization and processes on speed and comprehensiveness," Journal of Business Venturing, Elsevier, vol. 20(4), pages 519-541, July.
    13. Shameen Prashantham & Mark P. Healey, 2022. "Strategy as Practice Research: Reflections on its Rationale, Approach, and Contributions," Journal of Management Studies, Wiley Blackwell, vol. 59(8), pages 1-17, December.
    14. Arie Y. Lewin & Henk W. Volberda, 1999. "Prolegomena on Coevolution: A Framework for Research on Strategy and New Organizational Forms," Organization Science, INFORMS, vol. 10(5), pages 519-534, October.
    15. Shubha Patvardhan & J. Ramachandran, 2020. "Shaping the Future: Strategy Making as Artificial Evolution," Organization Science, INFORMS, vol. 31(3), pages 671-697, May.
    16. Petra Andries & Dirk Czarnitzki, 2014. "Small firm innovation performance and employee involvement," Small Business Economics, Springer, vol. 43(1), pages 21-38, June.
    17. Brauer, Matthias & Heitmann, Mark, 2013. "Antecedents and temporal dynamics of strategic divergence in multinational corporations: Evidence from Europe," Journal of World Business, Elsevier, vol. 48(1), pages 110-121.
    18. Augsdorfer, Peter, 2005. "Bootlegging and path dependency," Research Policy, Elsevier, vol. 34(1), pages 1-11, February.
    19. Koberg, Christine S. & Uhlenbruck, Nikolaus & Sarason, Yolanda, 1996. "Facilitators of organizational innovation: The role of life-cycle stage," Journal of Business Venturing, Elsevier, vol. 11(2), pages 133-149, March.
    20. Pascal Aurégan & Patrick Joffre & Thomas Loilier & Albéric Tellier, 2007. "L’approche projet du management stratégique:quelles contributions pour quel positionnement ?," Revue Finance Contrôle Stratégie, revues.org, vol. 10(4), pages 217-250, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ororsc:v:10:y:1999:i:5:p:672-690. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.