Deciding Fast:Examining the Relationship between Strategic Decision Speed and Decision Quality across Multiple Environmental Contexts

Abstract

Rapid innovation, shortened product life cycles and fierce competition place great pressures on top managers to make fast strategic decisions. However, a key question in strategic decision-making research is whether decision speed helps or harms decision quality, and there is a shortage of theory and evidence concerning the consequences of decision speed across different environmental contexts. We develop new theory by considering the effects of decision speed on decision quality under conditions of environmental munificence, under conditions of dynamism, and under the joint conditions of munificence and dynamism. We test our theory through analysis of multi-informant survey data drawn from top management teams and secondary databases, in 117 UK firms. Our findings demonstrate that munificence is the central generative mechanism which moderates the relationship between decision speed and decision quality, and markedly alters the previously theorized positive effects of decision speed in dynamic contexts.

Publication DOI: https://doi.org/10.1111/emre.12430
Divisions: College of Business and Social Sciences > Aston Business School > Marketing & Strategy
Additional Information: © 2020 The Authors. European Management Review published by John Wiley & Sons Ltd on behalf of European Academy of Management (EURAM) This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
Uncontrolled Keywords: decision speed,environmental dynamism,environmental munificence,strategic decision-making,top management teams,Business and International Management,Strategy and Management
Publication ISSN: 1740-4762
Full Text Link:
Related URLs: https://onlinel ... 1111/emre.12430 (Publisher URL)
http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2021-07-16
Published Online Date: 2020-10-03
Accepted Date: 2020-09-13
Authors: Shepherd, Neil (ORCID Profile 0000-0002-8020-0293)
Mooi, Erik A
Elbanna, Said
Rudd, John

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