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).
, Lecture 2: Integrative framework & Environmental context
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.
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).
, Lecture 2: Integrative framework & Environmental context
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.
