ENVIRONMENTAL DYNAMISM AND STRATEGIC DECISION-MAKING RATIONALITY: AN EXAMINATION AT THE DECISION LEVEL

摘要

Several approaches have been used to explore environmental dynamism as a contingent predictor of the relationship between rational-comprehensive strategic decision-making and firm-level performance. At the decision level of analysis, however, small sample sizes, low statistical power, and statistical dependence have plagued the research. Through the use of a simulated decision-making environment and multilevel analysis, this study examined 400 decisions from 54 executive teams. Consistent with much of the existing firm-level research, the results indicated that environmental dynamism may moderate the relationship between rational-comprehensive decision making and decision quality. Surprisingly, the form of the relationship differed from much of the firm-level research.