Article1993

PROCEDURAL RATIONALITY IN THE STRATEGIC DECISION‐MAKING PROCESS*

411 citations0/0 files storedJournal of Management Studies

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Organizational Management and Leadership Management and Organizational Studies Leadership, Behavior, and Decision-Making Studies

Abstract

ABSTRACT Despite the central place of rationality in the organization theory, strategic management, and decision‐making literatures, we know relatively little about why some strategic decision‐making procedures are more rational than others. This question was addressed in a study of 57 strategic decisions in 24 companies, using a multiple‐informant, structured interview protocol. Results indicate that environmental competitive threat, perceived external control of the organization, and the uncertainty of the strategic issues being addressed are related to procedural rationality. Surprisingly, some of these relationships were in the opposite direction from our predictions. These results are interpreted within a framework that emphasizes the link between procedural rationality and managerial discretion.

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References

1983The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields 2004The iron cage revisited institutional isomorphism and collective rationality in organizational fields 1955A BEHAVIORAL MODEL OF RATIONAL CHOICE 1983Strategy‐making and environment: The third link 1988Strategic Decision Processes in High Velocity Environments: Four Cases in the Microcomputer Industry 1987Managerial discretion: A bridge between polar views of organizational outcomes.1984Strategic Decision Processes: Comprehensiveness and Performance in an Industry with an Unstable Environment 1984The Comprehensiveness of Strategic Decision Processes: Extension, Observations, Future Directions

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