Extant research provides incongruous answers to the question whether higher comprehensiveness in making strategic decisions is always desirable. To motivate a resolution, we study outcomes of decision-comprehensiveness by modeling strategic decision-making as an emergent process, accomplished through learning by managers over time for organizations focusing on exploration or exploitation, over short or long time horizons, in stable and changing environments. Three out of the eight resultant scenarios favor higher comprehensiveness, and two favor lower comprehensiveness. The remaining three scenarios call for a more nuanced consideration of the comprehensiveness construct. Our research enriches managerial decision-making by highlighting circumstances where higher comprehensiveness is beneficial or detrimental to the quality of a strategic decision.
AdnerRPólosLRyallM, et al. (2009) The case for formal theory. The Academy of Management Review34: 201–208.
2.
AguilarFJ (1967) Scanning the Business Environment. New York: Macmillan.
3.
AmasonAC (1996) Distinguishing the effects of functional and dysfunctional conflict on strategic decision making: Resolving a paradox for top management teams. The Academy of Management Journal39: 123–148.
4.
AmasonACMooneyAC (2008) The Icarus paradox revisited: How strong performance sows the seeds of dysfunction in future strategic decision-making. Strategic Organization6: 407–434.
5.
AnconaDGGoodmanPSLawrenceBS, et al. (2001) Time: A new research lens. The Academy of Management Review26: 645–663.
6.
AndersonCRPaineFT (1975) Managerial perceptions and strategic behavior. The Academy of Management Journal18: 811–823.
7.
AshmosDPDuchonDMcDanielRRJr (1998) Participation in strategic decision making: The role of organizational predisposition and issue interpretation. Decision Sciences29: 25–51.
8.
Atuahene-GimaKLiH (2004) Strategic decision comprehensiveness and new product development outcomes in new technology ventures. The Academy of Management Journal47: 583–597.
9.
Atuahene-GimaKMurrayJY (2004) Antecedents and outcomes of marketing strategy comprehensiveness. Journal of Marketing68: 33–46.
10.
BahaeeMS (1993) Strategy-comprehensiveness fit and performance. Australian Journal of Management17: 195–215.
11.
BarnardCI (1938/1970) The Functions of the Executive. 2nd ed.Cambridge, MA: Harvard University Press.
12.
BarringerBRBluedornAC (1999) The relationship between corporate entrepreneurship and strategic management. Strategic Management Journal20: 421–444.
13.
BatraSSharmaSDixitMR, et al. (2018) Does strategic planning determine innovation in organizations? A study of Indian SME sector. Australian Journal of Management43: 493–513.
BennerMJTushmanML (2003) Exploitation, exploration, and process management: The productivity dilemma revisited. The Academy of Management Review28: 238–256.
16.
BillingerSSrikanthKStieglitzN, et al. (2021) Exploration and exploitation in complex search tasks: How feedback influences whether and where human agents search. Strategic Management Journal42: 361–385.
BoydBK (1991) Strategic planning and financial performance: A meta-analytic review. Journal of Management Studies28: 353–374.
19.
BraybrookeDLindblomCE (1970) A Strategy of Decision: Policy Evaluation as a Social Process. New York: Free Press.
20.
BromileyPPapenhausenC (2003) Assumptions of rationality and equilibrium in strategy research: The limits of traditional economic analysis. Strategic Organization1: 413–437.
21.
CannellaAAJrParkJ-HLeeH-U (2008) Top management team functional background diversity and firm performance: Examining the roles of team member colocation and environmental uncertainty. The Academy of Management Journal51: 768–784.
22.
CarmeliATishlerAEdmondsonAC (2012) CEO relational leadership and strategic decision quality in top management teams: The role of team trust and learning from failure. Strategic Organization10: 31–54.
23.
ChandaSSMcKelveyB (2020) Back to the basics: Reconciling the continuum and orthogonal conceptions of exploration and exploitation. Computational and Mathematical Organization Theory26: 175–206.
ChenELKatilaR (2008) Rival interpretations of balancing exploration and exploitation: Simultaneous or sequential? In: ShaneS (ed.) Handbook of Technology and Innovation Management. Chichester: Wiley, pp. 197–214.
26.
CulnanMJ (1983) Environmental scanning: The effects of task complexity and source accessibility on information gathering behavior. Decision Sciences14: 194–206.
27.
CyertRMMarchJG (1963) A Behavioral Theory of the Firm. Englewood Cliffs, NJ: Prentice Hall.
28.
DaftRLSormunenJParksD (1988) Chief executive scanning, environmental characteristics, and company performance: An empirical study. Strategic Management Journal9: 123–139.
29.
DasTK (1999) Cognitive biases and strategic decision processes: An integrative perspective. Journal of Management Studies36: 757–777.
30.
DeanJWJrSharfmanMP (1993) Procedural rationality in the strategic decision-making process. Journal of Management Studies30: 587–610.
31.
DeanJWJrSharfmanMP (1996) Does decision process matter? A study of strategic decision-making effectiveness. The Academy of Management Journal39: 368–396.
32.
DenrellJMarchJG (2001) Adaptation as information restriction: The hot stove effect. Organization Science12: 523–538.
33.
DiltheyW (2002) The Formation of the Historical World in the Human Sciences. Princeton, NJ: Princeton University Press.
34.
DreyfusHL (2014) Intuitive, deliberative, and calculative models of expert performance. In: ZsambokCEKleinF (eds) Naturalistic Decision Making. New York: Taylor & Francis, pp. 17–28.
35.
DuncanRB (1972) Characteristics of organizational environments and perceived environmental uncertainty. Administrative Science Quarterly17: 313–327.
36.
EisenhardtKM (1989) Making fast strategic decisions in high-velocity environments. The Academy of Management Journal32: 543–576.
37.
ElbannaSThanosICJansenRJG (2020) A literature review of the strategic decision-making context: A synthesis of previous mixed findings and an agenda for the way forward. M@n@gement23: 42–60.
38.
ElenkovDS (1997) Strategic uncertainty and environmental scanning: The case for institutional influences on scanning behavior. Strategic Management Journal18: 287–302.
39.
FarhJLHoffmanRCHegartyWH (1984) Assessing environmental scanning at the subunit level: A multitrait-multimethod analysis. Decision Sciences15: 197–220.
40.
FeldmanJKanterHE (1965) Chapter 14: Organizational decision making. In: MarchJG (ed.) Handbook of Organizations. Chicago, IL: Rand McNally, pp. 614–615.
41.
FillenbaumS (1974) Information amplified: Memory for counterfactual conditionals. Journal of Experimental Psychology102: 44–49.
42.
FinkelsteinSHambrickDCCannellaAA (2009) Strategic Leadership: Theory and Research on Executives, Top Management Teams, and Boards. New York: Oxford University Press.
43.
FlemingL (2001) Recombinant uncertainty in technological search. Management Science47: 117–132.
44.
FlemingLSorensonO (2004) Science as a map in technological search. Strategic Management Journal25: 909–928.
45.
ForbesDP (2007) Reconsidering the strategic implications of decision comprehensiveness. The Academy of Management Review32: 361–376.
46.
FredricksonJW (1984) The comprehensiveness of strategic decision processes: Extension, observations, future directions. The Academy of Management Journal27: 445–466.
47.
FredricksonJWIaquintoAL (1989) Inertia and creeping rationality in strategic decision processes. The Academy of Management Journal32: 516–542.
48.
FredricksonJWMitchellTR (1984) Strategic decision processes: Comprehensiveness and performance in an industry with an unstable environment. The Academy of Management Journal27: 399–423.
49.
FriedmanYCarmeliA (2018) The influence of decision comprehensiveness on innovative behaviors in small entrepreneurial firms: The power of connectivity. Innovation20: 61–83.
GancoM (2017) NK model as a representation of innovative search. Research Policy46: 1783–1800.
52.
GersickCJ (1991) Revolutionary change theories: A multilevel exploration of the punctuated equilibrium paradigm. The Academy of Management Review16: 10–36.
53.
GranovetterM (1985) Economic action and social structure: The problem of embeddedness. American Journal of Sociology91: 481–493.
54.
HageJ (1980) Theories of Organizations: Form, Process, and Transformation. New York: Wiley.
55.
HambrickDC (1981) Specialization of environmental scanning activities among upper level executives. Journal of Management Studies18: 299–320.
HeaveyCSimsekZRocheF, et al. (2009) Decision comprehensiveness and corporate entrepreneurship: The moderating role of managerial uncertainty preferences and environmental dynamism. Journal of Management Studies46: 1289–1314.
60.
HiattSRSineWD (2014) Clear and present danger: Planning and new venture survival amid political and civil violence. Strategic Management Journal35: 773–785.
61.
HoughJRWhiteMA (2003) Environmental dynamism and strategic decision-making rationality: An examination at the decision level. Strategic Management Journal24: 481–489.
62.
IsmailKMZhaoX (2017) Comprehensiveness in strategic decision making: Toward clarifying the construct. American Journal of Management17: 133–142.
63.
JansenJJPVan den BoschFAJVolberdaHW (2006) Exploratory innovation, exploitative innovation, and performance: Effects of organizational antecedents and environmental moderators. Management Science52: 1661–1674.
64.
JudgeWQMillerA (1991) Antecedents and outcomes of decision speed in different environmental contexts. The Academy of Management Journal34: 449–463.
65.
KatilaRAhujaG (2002) Something old, something new: A longitudinal study of search behavior and new product introduction. The Academy of Management Journal45: 1183–1194.
66.
KauffmanSA (1993) The Origins of Order: Self-Organization and Selection in Evolution. New York: Oxford University Press.
67.
KauppilaO-PLorenzoBObstfeldD (2018) Connecting and creating:Tertius iungens, individual creativity, and strategic decision processes. Strategic Management Journal39: 697–719.
68.
KefalasASchoderbekPP (1973) Application and implementation: Scanning the business environment. Decision Sciences4: 63–74.
69.
KleinKJTosiHCannellaAAJr (1999) Multilevel theory building: Benefits, barriers, and new developments. The Academy of Management Review24: 243–248.
70.
KlingebielRDe MeyerA (2013) Becoming aware of the unknown: Decision making during the implementation of a strategic initiative. Organization Science24: 133–153.
71.
KlingebielRJosephJ (2016) Entry timing and innovation strategy in feature phones. Strategic Management Journal37: 1002–1020.
72.
KnightFH (1921) Risk, Uncertainty and Profit. Des Plaines, IL: Hart Schaffner & Marx; Boston, MA: Houghton Mifflin Company.
73.
KnudsenTLevinthalDA (2007) Two faces of search: Alternative generation and alternative evaluation. Organization Science18: 39–54.
74.
LandsbergenDCourseyDHLovelessS, et al. (1997) Decision quality, confidence, and commitment with expert systems: An experimental study. Journal of Public Administration Research and Theory7: 131–157.
75.
LangleyAMintzbergHPitcherP, et al. (1995) Opening up decision making: The view from the black stool. Organization Science6: 260–279.
76.
LeeJMParkJCFoltaTB (2018) CEO career horizon, corporate governance, and real options: The role of economic short-termism. Strategic Management Journal39: 2703–2725.
77.
LevinthalDA (1997) Adaptation on rugged landscapes. Management Science43: 934–950.
78.
LinYShiWPrescottJE, et al. (2019) In the eye of the beholder: Top managers’ long-term orientation, industry context, and decision-making processes. Journal of Management45: 3114–3145.
79.
LindblomCE (1959) The science of “muddling through.”Public Administration Review19: 79–88.
80.
MaitlandESammartinoA (2015) Decision making and uncertainty: The role of heuristics and experience in assessing a politically hazardous environment. Strategic Management Journal36: 1554–1578.
81.
MarchJG (1991) Exploration and exploitation in organizational learning. Organization Science2: 71–87.
82.
MillerCC (2008) Decisional comprehensiveness and firm performance: Towards a more complete understanding. Journal of Behavioral Decision Making21: 598–620.
83.
MillerCCMcKeeRA (2021) Decision comprehensiveness and the outcomes of firms: Reinterpreting and extending a recent meta-analysis. Strategic Organization19: 441–448.
84.
MillerDFriesenPH (1983) Strategy-making and environment: The third link. Strategic Management Journal4: 221–235.
85.
MillerRLessardDR (2008) Evolving strategy: Risk management and the shaping of mega-projects. In: PriemusHFlyvbjergBVan WeeB (eds) Decision-Making on Mega-Projects: Cost-Benefit Analysis, Planning and Innovation. Cheltenham: Edward Elgar Publishing, pp. 145–172.
86.
MintzbergH (1973) Strategy-making in three modes. California Management Review16: 44–53.
87.
MintzbergH (1978) Patterns in strategy formation. Management Science24: 934–948.
88.
MintzbergHRaisinghaniDTheoretA (1976) The structure of “unstructured” decision processes. Administrative Science Quarterly21: 247–275.
89.
NadkarniSNarayananVK (2007) Strategic schemas, strategic flexibility, and firm performance: The moderating role of industry clockspeed. Strategic Management Journal28: 243–270.
90.
NadolskaABarkemaHG (2014) Good learners: How top management teams affect the success and frequency of acquisitions. Strategic Management Journal35: 1483–1507.
91.
NauhausSLugerJRaischS (2021) Strategic decision making in the digital age: Expert sentiment and corporate capital allocation. Journal of Management Studies58: 1933–1961.
92.
NewkirkHELedererAL (2006) Incremental and comprehensive strategic information systems planning in an uncertain environment. IEEE Transactions on Engineering Management53: 380–394.
93.
NuttPC (1976) Models for decision-making in organizations and some contextual variables which stipulate optimal use. The Academy of Management Review1: 84–98.
94.
NuttPC (2008) Investigating the success of decision making processes. Journal of Management Studies45: 425–455.
95.
PapadakisVMLioukasSChambersD (1998) Strategic decision-making processes: The role of management and context. Strategic Management Journal19: 115–147.
96.
PearceJAIIFreemanEBRobinsonRBJr (1987) The tenuous link between formal strategic planning and financial performance. The Academy of Management Review12: 658–675.
97.
PearlJ (2000) Causality: Models, Reasoning, and Inference. New York: Cambridge University Press.
98.
PeterafMABergenME (2003) Scanning dynamic competitive landscapes: A market-based and resource-based framework. Strategic Management Journal24: 1027–1041.
99.
PettigrewAM (2014) The Politics of Organizational Decision-Making. London: Routledge.
100.
PosenHELevinthalDA (2012) Chasing a moving target: Exploitation and exploration in dynamic environments. Management Science58: 587–601.
101.
PriemRLRasheedAMAKotulicAG (1995) Rationality in strategic decision processes, environmental dynamism and firm performance. Journal of Management21: 913–929.
102.
QuinnJB (1980) Strategies for Change: Logical Incrementalism. Homewood, IL: Richard D. Irwin.
103.
ReymenIAndriesPBerendsH, et al. (2015) Understanding dynamics of strategic decision making in venture creation: A process study of effectuation and causation. Strategic Entrepreneurship Journal9: 351–379.
104.
RivkinJWSiggelkowN (2003) Balancing search and stability: Interdependencies among elements of organizational design. Management Science49: 290–311.
105.
Robert MitchellJShepherdDASharfmanMP (2011) Erratic strategic decisions: When and why managers are inconsistent in strategic decision making. Strategic Management Journal32: 683–704.
106.
RodbergS (2016) Strategically logical and ethical decision-making in leadership and management. In: WangVX (ed.) Encyclopedia of Strategic Leadership and Management. Hershey, PA: IGI Global, pp. 1709–1718.
107.
RomanelliETushmanML (1994) Organizational transformation as punctuated equilibrium: An empirical test. The Academy of Management Journal37: 1141–1166.
108.
SambaCTabeshPThanosIC, et al. (2021) Method in the madness? A meta-analysis on the strategic implications of decision comprehensiveness. Strategic Organization19: 414–440.
SchumpeterJA (1942) Capitalism, Socialism and Democracy. New York: Harper & Brothers.
111.
SchwarzGMSandersKBouckenoogheD (2020) In the driving seat: Executive’s perceived control over environment. Australian Journal of Management45: 317–342.
SiggelkowNLevinthalDA (2003) Temporarily divide to conquer: Centralized, decentralized, and reintegrated organizational approaches to exploration and adaptation. Organization Science14: 650–669.
114.
SiggelkowNRivkinJW (2005) Speed and search: Designing organizations for turbulence and complexity. Organization Science16: 101–122.
115.
SiggelkowNRivkinJW (2006) When exploration backfires: Unintended consequences of multilevel organizational search. The Academy of Management Journal49: 779–795.
116.
SimonHA (1955) A behavioral model of rational choice. Quarterly Journal of Economics69: 99–118.
117.
SimonHA (1960) The New Science of Managerial Decision. New York: Harper & Row.
118.
SimonHA (1965) The New Science of Management Decision. Englewood Cliffs, NJ: Prentice Hall.
119.
StieglitzNKnudsenTBeckerMC (2016) Adaptation and inertia in dynamic environments. Strategic Management Journal37: 1854–1864.
120.
TavanaMDi CaprioDArteagaFJS (2016) Modeling sequential information acquisition behavior in rational decision making. Decision Sciences47: 720–761.
121.
ThomasLAmbrosiniV (2015) Materializing strategy: The role of comprehensiveness and management controls in strategy formation in volatile environments. British Journal of Management26: S104–S124.
Van DoornSHeydenMLMVolberdaHW (2017) Enhancing entrepreneurial orientation in dynamic environments: The interplay between top management team advice-seeking and absorptive capacity. Long Range Planning50: 134–144.
124.
WeickKE (1979) The Social Psychology of Organizing. Reading, MA: Addison-Wesley.
125.
Yasai-ArdekaniMNystromPC (1996) Designs for environmental scanning systems: Tests of a contingency theory. Management Science42: 187–204.
126.
ZhuKWeyantJP (2003) Strategic decisions of new technology adoption under asymmetric information: A game-theoretic model. Decision Sciences34: 643–675.
Supplementary Material
Please find the following supplemental material available below.
For Open Access articles published under a Creative Commons License, all supplemental material carries the same license as the article it is associated with.
For non-Open Access articles published, all supplemental material carries a non-exclusive license, and permission requests for re-use of supplemental material or any part of supplemental material shall be sent directly to the copyright owner as specified in the copyright notice associated with the article.
