Short and to the point summary of the lectures SDM Tilburg University, including an overview of the integrative framework for all relevant topics. All important concepts and models are mentioned, but it doesn't include extra information such as the methodology parts from the papers.
Strategic Decision-Making (441058-B-6)
Tilburg University Lectures
Inhoud
Lecture 1: Introduction strategic management ...................................................................................... 2
Lecture 2: Integrative framework & Environmental context .................................................................. 3
Lecture 3: Organizational context & Top managerial context ................................................................ 6
Lecture 4: Decision context & Processes................................................................................................. 8
Lecture 5: Formulation of strategic decisions ....................................................................................... 10
Lecture 6: Implementation of strategic decisions ................................................................................. 12
Lecture 7: The consequences and outcomes of strategic decisions ..................................................... 14
Lecture 8: Forms of participation in strategy 1 ..................................................................................... 16
Lecture 9: Forms of participation in strategy 2 ..................................................................................... 19
Lecture 10: History and future in strategy 1 ......................................................................................... 21
Lecture 11: History and future in strategy 2 ......................................................................................... 23
Lecture 12: Course summary................................................................................................................. 25
Overview of the course:
Introduction 1
Integrative framework of SDM 2-7
Current topics to strategy process 8-11
Exam training and wrap-up 12
,Lecture 1: Introduction strategic management
Readings Leiblein, M. J., Reuer, J. J., & Zenger, T. R. 2018. What makes a decision
strategic? Strategy Science, 3(4): 658-667.
PART 1: INTRODUCTION
What are strategic decisions?
We make decisions all day.
E.g. Needing additional information, asking advice, narrowing down alternatives.
Organizations are also confronted with decision-situations. The key challenge to any decision is the
reduction of uncertainty.
Strategic decisions have 4 characteristics:
• Complexity: Large number of aspects
• Uncertainty: Unknown number of alternatives or solutions
• Rationality: Try to reach a goal
• Control: Intentionality
Strategic decisions: Decisions committing substantial resources, setting precedents and creating
waves of lesser decisions; as ill-structured, non-routine and complex; and as substantial, unusual and
all-pervading.
There are 3 perspectives on what qualifies as a strategic decision:
• Strategy as important decisions
• Strategy as critical tensions
• Strategy as decision interdependence along three dimensions
o Inter-decisional: Interdependence across decisions
o Inter-actor: Interdependence across economic actors
o Inter-temporal: Interdependence across time.
→ Third perspective is the best! Strategic does not always equal ‘importance’, but it should equal
sharp trade-offs. Strategic decisions are interdependent with other decisions and actors. Decisions
are more strategic when they are inter-decisional, inter-actor and inter-temporal (Leiblein, 2018).
Readings Jansen, R. J. G. 2022. Strategic Decision-Making: A Course Companion Introductory
Text, Tilburg.
Eisenhardt, K. M. 1989. Making fast strategic decisions in high-velocity
environments. Academy of Management Journal 32(3): 543–576.
PART 1: INTEGRATIVE FRAMEWORK
Introduction to SDM
SDM process: The process by which a strategic decision is made and implemented.
De departure point of SDM thinking is research and theorizing (rationality → performance).
Professionals should develop tools based on analysis and evidence-based approaches, because
variation in SDM processes → different strategic choices → variation in effectiveness.
SO: We need to investigate:
• How can we understand variation/heterogeneity of the effects of context on SDM processes?
• How can we understand variation/heterogeneity of the effects of context and SDM processes
on outcomes?
The integrative framework
To answer these questions, many
organizations use a generic annual strategic
planning cycle.
But, an integrative framework is better!
This is an analytical scheme to study strategic
decisions, and an integration of factors from
a multi-theoretic perspective.
It consists of:
• Context: The aspects that are not subject to the choice situation at the moment of decision.
o Creates the decision premise and strategic options.
o The problem to respond to and the options available to remedy the problem.
o Input for the formulation process (starting point for the process-effectiveness link).
• Process: The process by which a strategic decision is made (formulated) and implemented.
• Outcomes: The intended and unintended consequences of a strategic decision.
o Decision level outcomes: In terms of financial/nonfinancial outcomes isolated from
other influences, i.e. outcomes as a consequences of de strategic decision.
o Organization level outcomes: In terms of financial/nonfinancial outcomes in the
aggregate of all influences on the organizational outcomes, i.e. outcomes as the
consequence of all relevant activity, including the strategic decisions.
o Supra-level outcomes: Organizational level outcomes including environment and
inter-organizational (network) outcomes.
Process – Outcomes relationship: How a decision is made and put into action. This is where
practitioners look forward and make estimations.
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