Understanding strategic decision making in manufacturing organizations

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Virginia Polytechnic Institute and State University

Strategic decision making has been a widely covered topic in a number of fields. While some researchers have concentrated on the"content" of strategic decisions, others have looked at the"process" of strategic decision making. A review of recent strategy-related literature shows that researchers disagree not only on how strategic decisions are made, but what strategic decisions are as well. In an attempt to understand how strategic decisions are made in manufacturing organizations, this study builds on data collected from strategy-related literature and from interviews with practicing managers. These data were used to develop a conceptual model showing the variables affecting strategic decisions and the relationships between these variables. In addition to the conceptual model, this study makes recommendations to practicing managers in manufacturing organizations on how the outcome of strategic decisions can be improved. Finally, based on the results obtained in this study, recommendations for future research in strategic decision making are provided.