Strategic decisions are often made by multiple organizational members who form decision-making structures specialized for a given strategic decision. We study a series of strategic decisions in a business unit of a global Fortune 500 firm, identifying for each decision the hierarchical and departmental positions of all participating organizational members. We find that firms substitute between different structural components in decision-making structures to combine hierarchical authority with cross-departmental coordination and redundant knowledge. This substitution between structural components takes place in response to changes in decision characteristics, including decision complexity, decision importance, CEO proximity, and the degree to which a decision is routine. We show various manifestations of the substitution mechanism and discuss implications for strategic decision-making.
|Number of pages||40|
|Publication status||Published - 2016|
|Event||The Academy of Management Annual Meeting 2016: Making Organizations Meaningful - Anaheim, United States|
Duration: 5 Aug 2016 → 9 Aug 2016
Conference number: 76
|Conference||The Academy of Management Annual Meeting 2016|
|Period||05/08/2016 → 09/08/2016|