Strategic decision change : processes and timing /
Under a rapidly changing environment, fast decision making and fast decision change are both important and difficult. While fixing a bad decision is important, giving up a decision too quickly can terminate a large potential return. To examine the contemporary and undeveloped issue of strategic de...
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| Format: | Thesis Book |
| Language: | English |
| Published: |
[Place of publication not identified] :
[publisher not identified] ;
2000.
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| Subjects: | |
| Online Access: | http://proxy.library.tamu.edu/login?url=http://proquest.umi.com/pqdweb?did=728409701&sid=1&Fmt=2&clientId=2945&RQT=309&VName=PQD |
| Summary: | Under a rapidly changing environment, fast decision making and fast decision change are both important and difficult. While fixing a bad decision is important, giving up a decision too quickly can terminate a large potential return. To examine the contemporary and undeveloped issue of strategic decision change, this research was designed with two phases: theory building and theory testing. In the first phase, 18 case studies provided a model of decision change. In the second phase, 7 hypotheses were created based on the model of decision change process and were tested using a sample of firms that acquired and then divested another company/unit. Extending the implications of past research, this study showed that the relationships among initial decision outcomes, decision change, and decision change timing are more complex. While poor performance is an important motivation for strategic decision change, decision change timing is often determined by exogenous events unrelated to the initial decision and its outcomes, particularly when combined with poor performance. The trigger events include such actions as a change of CEO, an addition of new outside director(s), and a change of financial resources. Organizations cannot easily determine decision change timing, even when the outcomes from the initial decision are poor. It is because of the uncertainty in assessing the risks and benefits of the change and constraints from assumptions that were created when making the initial decision. As a result, exogenous chance events play a key role in determining actual decision change timing. Additionally, decision change can take place without poor outcomes from the initial decision when an outside CEO, who may have different assumptions and perspectives regarding the initial decision, is appointed. |
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| Item Description: | Vita. "Major Subject: Management". |
| Physical Description: | ix, 134 leaves : illustrations ; 28 cm. Issued also on microfiche from University Microfilm Inc. |
| Bibliography: | Includes bibliographical references (leaves 111-125). |