Examining the Antecedents and Consequences of CIO Strategic Decision‐Making Authority: An Empirical Study*

Despite the strategic importance of information technology (IT) to contemporary firms, chief information officers (CIO) often still have varying degrees of strategic decision‐making authority. In this study, we apply the theory of managerial discretion to define CIO strategic decision‐making authority and argue that the CIO's level of strategic decision‐making authority directly influences IT's contribution to organization performance. We also draw on the power and politics perspective in the strategic decision‐making literature to identify the direct antecedents to the CIO's strategic decision‐making authority. A theoretical model is presented and empirically tested using survey data collected from a cross‐industry sample of 174 matched pairs of CIOs and top business executives through structural equation modeling. The results suggest that organizational climate, organizational support for IT, the CIO's structural power, the CIO's level of strategic effectiveness, and a strong partnership between the CIO and top management team directly influence the CIO's level of strategic decision‐making authority within the organization. The results also suggest that the CIO's strategic decision‐making authority in the organization directly influences the contribution of IT to firm performance and that effective CIOs have a greater influence on IT's contribution when provided with strategic decision‐making authority.     

How Much do CEOs and Top Managers Matter in Strategic Decision‐Making?

This research note explores the influence of both CEO and top-management team (TMT) characteristics on the process of making strategic decisions (SDs). Empirical testing is based on a sample of 70 SDs in industrial enterprises operating in Greece, using a combination of interviews, questionnaires and archival data. The results suggest that (a) the characteristics of both the TMT and the CEO influenced the strategic decision-making process, but the former had more influence, (b) the TMT and CEO influenced different dimensions of the process, and (c) the broader context of SDs is more influential than either the CEO or the TMT. Among the most important factors was the TMT's 'aggressiveness' (commitment to beating the competition, attitude to innovation, willingness to take risks). The results lend support to the 'upper echelons' perspective, but suggest that in studying strategic decision-making processes both CEO and TMT characteristics should be considered, in conjunction with the broader context. Such an approach should provide a more reliable view of strategic processes and their evolving dynamics.     

Distributed Decision‐Making in Supply Chains and Private E‐Marketplaces

This paper develops a distributed decision‐making framework for the players in a supply chain or a private e‐marketplace to collaboratively arrive at a global Pareto‐optimal solution. In this model, no player has complete knowledge about all the costs and constraints of the other players. The decision‐making framework employs an iterative procedure, based on the Integer L‐shaped method, in which a master problem is solved to propose global solutions, and each player uses his local problems to construct feasibility and optimality cuts on the master problem. The master problem is modeled as a mixed‐integer program, and the players' local problems are formulated as linear programs. Collaborative planning scenarios in private e‐marketplaces and in supply chains were formulated and solved for test data. The results show that this distributed model is able to achieve near‐optimal solutions considerably faster than the traditional centralized approach.     

A Multi‐level Dialectical–Paradox Lens for Top Management Team Strategic Decision‐Making in a Corporate Venture

This paper aims to critique the process of corporate‐owned, high‐tech start‐up strategizing through an inductive, longitudinal, case study of ‘UK‐Research‐Tech’. Insights are given through the combined ‘dialectical–paradox’ concept, thereby focusing on where ‘dialectic’ and ‘paradox’ theorizing overlap. This linked iterative, ‘dialogical–dialectic’ research approach also reflects chief executive officer/top management team (CEO/TMT) start‐up dynamics over time. These foci fill important gaps that impede better understanding of dialectical, dialogical and paradoxical forces within strategic decision‐making. As an interpretative tool, they illuminate CEO/TMT strategizing and changing interrelationships affected by broader, volatile, techno‐economic contexts and parent‐company influences on ventures. In this case study, it was found that the CEO's relatively autocratic, parent‐framed approach combined with TMT members' contradictory reactions to create ‘dialectical–paradox’ oppositional forces, eventually only resolved through ‘eleventh hour’ business strategy changes to rescue the venture. This research contributes to more nuanced understandings of corporate‐constrained ventures during early business development from start‐up strategic decisions at parent‐company level to subsequent conditions of more independent dynamic equilibrium. The ‘dialectical–paradox’ conceptual lens contributes an innovative critique of processes affecting strategic decision‐making dynamics. Another important contribution is the empirically inspired conceptual model, developed for use both to guide subsequent case‐study research analyses and as a reflective tool for CEO/TMT strategic decision‐making, especially within corporate‐inspired start‐ups.     

The Influence of Context on the Strategic Decision‐Making Process: A Review of the Literature

This paper critically reviews the strategic decision‐making process literature, with a specific focus on the effects of context. Context refers to the top management team, strategic decision‐specific characteristics, the external environment and firm characteristics. This literature review also develops an illustrative framework that incorporates these four different categories of contextual variables that influence the strategic decision‐making process. As a result of the variety and pervasiveness of contextual variables featured within the literature, a comprehensive and up‐to‐date review is essential for organizing and synthesizing the extant literature to explicate an agenda for future research. The purpose of this literature review is threefold: first, to critically review the strategic decision‐making process literature to highlight the underlying themes, issues, tensions and debates in the field; second, to identify the opportunities for future theory development; and third, to state the methodological implications arising from this review.     

新经济背景下合资企业与战略联盟的区别

从企业战略角度,以合作战略的两种形式--合资战略(joint venture strategies)和战略联盟战略(strategic alliance strategies)的差别性为分析对象,尝试认识在新经济背景下企业战略创造价值的两种不同方式.合资战略和战略联盟作为两种战略行动,共性是基于合作行为的资源配置方式,属于合作战略的范畴;但两者的差别体现出对企业而言截然不同的价值创造过程.合资战略本质上是企业组织内部化战略的结果,即在组织形式上趋向于母子公司之间关系,价值创造呈降低成本导向机理;战略联盟本质上是企业间关系变化的结果,这种企业间关系以协调为特征,既不同于市场交易关系,也不同于组织内部的层级关系,是内部层级市场和外部产权交换不可替代的产物,价值创造呈潜在的利润导向机理.     

Rational Inattention Dynamics: Inertia and Delay in Decision‐Making

We solve a general class of dynamic rational inattention problems in which an agent repeatedly acquires costly information about an evolving state and selects actions. The solution resembles the choice rule in a dynamic logit model, but it is biased toward an optimal default rule that is independent of the realized state. The model provides the same fit to choice data as dynamic logit, but, because of the bias, yields different counterfactual predictions. We apply the general solution to the study of (i) the status quo bias; (ii) inertia in actions leading to lagged adjustments to shocks; and (iii) the tradeoff between accuracy and delay in decision‐making.     

The Effects of Interruptions,Task Complexity,and Information Presentation on Computer‐Supported Decision‐Making Performance

Interruptions are a frequent occurrence in the work life of most decision makers. This paper investigated the influence of interruptions on different types of decision‐making tasks and the ability of information presentation formats, an aspect of information systems design, to alleviate them. Results from the experimental study indicate that interruptions facilitate performance on simple tasks, while inhibiting performance on more complex tasks. Interruptions also influenced the relationship between information presentation format and the type of task performed: spatial presentation formats were able to mitigate the effects of interruptions while symbolic formats were not. The paper presents a broad conceptualization of interruptions and interprets the ramifications of the experimental findings within this conceptualization to develop a program for future research.     

Media Effects on Group Collaboration: An Empirical Examination in an Ethical Decision‐Making Context

Even though it is widely acknowledged that collaboration underlies much of the decision‐making efforts in contemporary organizations, and that organizational groups are increasingly making decisions that have ethical implications, few studies have examined group ethical decision‐making processes and outcomes. In addition, while there is increasing evidence that groups often collaborate/communicate using different mediating technologies, few studies have examined the effect of the characteristics of the media in group ethical decision‐making contexts. Finally, there is a clear paucity of studies that have investigated group decision making pertaining to information technology (IT)‐related ethical dilemmas, an area of rising importance for information systems (IS) and decision science researchers. This article seeks to address the gaps described above through an experimental study where groups collaborating either in a face‐to‐face context or in a computer‐mediated context (using NetMeeting or Wiki) were required to make a decision with respect to a scenario with an IT‐related ethical dilemma. Results indicate that media characteristics (e.g., anonymity, immediacy of feedback, parallelism) do not have an effect on whether groups make ethical (or unethical) decisions. However, several media characteristics were found to play a significant role on downstream variables, such as the quality of a follow‐up task (i.e., creation of a decision justification document), and overall process satisfaction of the group members.     

UK International Joint Ventures: An Analysis of Patterns of Activity and Distribution

To date no study has presented data which systematically considers the detailed activity of UK firms in joint venture formation over a significant period of time. This paper attempts to rectify this position by providing key statistics on the formation of joint ventures between UK firms and partner firms in Western Europe, the USA and Japan over the 1980s. The study examines several dimensions of activity: Trends in UK joint ventures over time, geographic distribution, industry characteristics, joint venture purpose, number of partners, contractual form and the equity share of UK partners.     

Timing the Use of Breast Cancer Risk Information in Biopsy Decision‐Making

Available clinical evidence is inconclusive on whether radiologists should use the patient risk profile information when interpreting mammograms. On the one hand, risk profile information is informative and can improve radiologists’ performance, but on the other hand, it may impair their judgment by introducing biases in mammography interpretation. Therefore, it is important to assess whether and when profile information use translates into improved outcomes. We model the use of profile information in mammography, using a decision theoretic approach and explore the value of profile information using three process design choices: mammography only, unbiased, and biased reading. We estimate the parameters of our model using clinical data and find that using profile information along with the mammography information can achieve a better performance than not using the profile information. However, the better performance is contingent on the weight assigned to the profile information as well as the extent of bias due to profile information. Translating our findings into clinical practice would require properly designed experiments aiming to quantify the effect of the timing and the use of profile information on performance while accounting for radiologist and patient characteristics. When conducting an experiment is not feasible, a uniform operational sequence for interpreting mammograms and related guidelines may be a useful starting point to improve the quality of mammography operations.     

New Product Development Decision‐Making Effectiveness: Comparing Individuals,Face‐To‐Face Teams,and Virtual Teams*

A total of 411 subjects participated in two decision‐making experiments in order to examine the effectiveness of new product development project continuation decisions. Using escalation of commitment theory, in Study 1, individual versus face‐to‐face team decision‐making effectiveness was compared. Study 2, an extension of Study 1, compared the new product development decision‐making effectiveness of individuals, face‐to‐face teams, and virtual teams. A virtual team is a geographically and temporally dispersed and electronically communicating work group. In Study 2, the virtual teams communicated asynchronously via groupware technology. Our findings suggest that teams make more effective decisions than individuals, and virtual teams make the most effective decisions.     

Addressing the Challenge of Modeling for Decision‐Making in Socially Responsible Operations

Companies seek sustainability by combining the quest for profitability with the pursuit of social responsibility. Since socially responsible operations are characterized by the presence of multiple stakeholders with conflicting goals, applying classical optimization models would seem premature; we first need to capture the behavior of the entire system before attempting to optimize sub‐systems to ensure that we focus on the ones driving the behavior of interest. Alternative methodologies are required if we are to gain insight into the most important drivers of socially responsible operations in order to apply traditional operations research (OR)/management science (MS) models correctly. This study presents an umbrella approach which combines different methodologies to tackle the complexity, unfamiliar context, and counter‐intuitive behavior of socially responsible operations at the overall system level.     

国际合资企业中的合作匹配度分析

本文提出并界定了中外合资企业合作匹配度的概念,建立了合作匹配度的计算模型与合资决策模型,分析了合资协议达成的理想匹配条件。     

Using Real‐Time Decision Tools to Improve Distributed Decision‐Making Capabilities in High‐Magnitude Crisis Situations*

Multi‐organizational collaborative decision making in high‐magnitude crisis situations requires real‐time information sharing and dynamic modeling for effective response. Information technology (IT) based decision support tools can play a key role in facilitating such effective response. We explore one promising class of decision support tools based on machine learning, known as support vector machines (SVM), which have the capability to dynamically model and analyze decision processes. To examine this capability, we use a case study with a design science approach to evaluate improved decision‐making effectiveness of an SVM algorithm in an agent‐based simulation experimental environment. Testing and evaluation of real‐time decision support tools in simulated environments provides an opportunity to assess their value under various dynamic conditions. Decision making in high‐magnitude crisis situations involves multiple different patterns of behavior, requiring the development, application, and evaluation of different models. Therefore, we employ a multistage linear support vector machine (MLSVM) algorithm that permits partitioning decision maker response into behavioral subsets, which can then individually model and examine their diverse patterns of response behavior. The results of our case study indicate that our MLSVM is clearly superior to both single stage SVMs and traditional approaches such as linear and quadratic discriminant analysis for understanding and predicting behavior. We conclude that machine learning algorithms show promise for quickly assessing response strategy behavior and for providing the capability to share information with decision makers in multi‐organizational collaborative environments, thus supporting more effective decision making in such contexts.     

Scenario Discovery with Multiple Criteria: An Evaluation of the Robust Decision‐Making Framework for Climate Change Adaptation

There is increasing concern over deep uncertainty in the risk analysis field as probabilistic models of uncertainty cannot always be confidently determined or agreed upon for many of our most pressing contemporary risk challenges. This is particularly true in the climate change adaptation field, and has prompted the development of a number of frameworks aiming to characterize system vulnerabilities and identify robust alternatives. One such methodology is robust decision making (RDM), which uses simulation models to assess how strategies perform over many plausible conditions and then identifies and characterizes those where the strategy fails in a process termed scenario discovery. While many of the problems to which RDM has been applied are characterized by multiple objectives, research to date has provided little insight into how treatment of multiple criteria impacts the failure scenarios identified. In this research, we compare different methods for incorporating multiple objectives into the scenario discovery process to evaluate how they impact the resulting failure scenarios. We use the Lake Tana basin in Ethiopia as a case study, where climatic and environmental uncertainties could impact multiple planned water infrastructure projects, and find that failure scenarios may vary depending on the method used to aggregate multiple criteria. Common methods used to convert multiple attributes into a single utility score can obscure connections between failure scenarios and system performance, limiting the information provided to support decision making. Applying scenario discovery over each performance metric separately provides more nuanced information regarding the relative sensitivity of the objectives to different uncertain parameters, leading to clearer insights on measures that could be taken to improve system robustness and areas where additional research might prove useful.     

Decision‐Making Analytics Using Plural Resilience Parameters for Adaptive Management of Complex Systems

It is critical for complex systems to effectively recover, adapt, and reorganize after system disruptions. Common approaches for evaluating system resilience typically study single measures of performance at one time, such as with a single resilience curve. However, multiple measures of performance are needed for complex systems that involve many components, functions, and noncommensurate valuations of performance. Hence, this article presents a framework for: (1) modeling resilience for complex systems with competing measures of performance, and (2) modeling decision making for investing in these systems using multiple stakeholder perspectives and multicriteria decision analysis. This resilience framework, which is described and demonstrated in this article via a real‐world case study, will be of interest to managers of complex systems, such as supply chains and large‐scale infrastructure networks.     

信任、治理策略与合资企业社会困境

 合资企业管理面临的重要挑战就是如何解决社会困境,困境管理能力直接影响合资企业的有效运作。合资企业的社会困境主要体现为合资伙伴个人自利理性的选择导致合资企业的失败。因此,探讨合资企业社会困境的影响因素和治理策略,并以此提升合资双方的合作关系,降低合资伙伴的机会主义行为,进而解决社会困境,对理论研究者和合资企业实践者都非常重要。        在社会困境理论、交易成本理论和关系交换理论的基础上,构建信任、合约治理、关系治理对合资企业行为影响的模型,将信任、合约治理、关系治理对合作和伙伴机会主义行为的影响进行实证研究。以242家合资企业为研究对象,运用结构方程的统计方法实证分析信任对两种治理策略、合作和伙伴机会主义行为的影响。将信任分为高信任和低信任两种情景,将其作为调节变量,探讨信任、治理策略和合资伙伴行为之间的关系。        研究结果表明,无论在高或低信任情景下,合资企业间信任对关系治理比对合约治理的正向影响大;与低信任情景相比,在高信任情景下,信任和关系治理对合作的正向影响大,合约治理对合作的正向影响小。        研究结论提供了有效解决社会困境的思路和治理方式,强调学习如何运用治理策略以破解社会困境是至关重要的,认为合资企业高管应考虑结合双重治理方式解决社会困境。由于不同类型的治理策略具有不同的功能,特定治理策略的使用取决于合资企业伙伴相互信任的密切程度。也就是说在低信任情景下,合资企业高管应重视运用合约治理促进合作行为;在高信任的情景下,运用关系治理处理社会困境的效用更大。此外,研究结论有利于提升对合资企业管理的认识,有效指导并改善实践以降低合资企业的失败率。     

Decision Style in British and Swedish Organizations: A Comparative Examination of Strategic Decision Making

In this paper results from parallel large scale studies of strategic decision making in Sweden and the United Kingdom are reported. Swedish decision makers are found to employ a decision making style which emphasizes negotiation within a restricted group. This style, which involves considerable information search, leads to very long decision times. Strategic decisions in Britain are made among groups which include fewer strongly committed participants. Delays are common and often serious, but do not lengthen the process unduly. Decision styles in both countries include contrasting tendencies which produce a dynamic tension in the decision arena.     

Evidence‐based Management in Practice: Opening up the Decision Process,Decision‐maker and Context

Evidence‐based management (EBM) has been subject to a number of persuasive critiques in recent years. Concerns have been raised that: EBM over‐privileges rationality as a basis for decision‐making; ‘scientific’ evidence is insufficient and incomplete as a basis for management practice; understanding of how EBM actually plays out in practice is limited; and, although ideas were originally taken from evidence‐based medicine, individual‐situated expertise has been forgotten in the transfer. To address these concerns, the authors adopted an approach of ‘opening up’ the decision process, the decision‐maker and the context (Langley et al. ( 1995 ). ‘Opening up decision making: the view from the black stool’, Organization Science, 6, pp. 260–279). The empirical investigation focuses on an EBM decision process involving an operations management problem in a hospital emergency department in Australia. Based on interview and archival research, it describes how an EBM decision process was enacted by a physician manager. It identifies the role of ‘fit’ between the decision‐maker and the organizational context in enabling an evidence‐based process and develops insights for EBM theory and practice.