Politics of strategic decision making in high-velocity environments: toward a midrange theory

Article Abstract:

How do politics affect the strategic decision processes of top executives in the 'high-velocity' microcomputer industry? We induced a midrange theory linking power, politics, and performance from a study of eight firms in the microcomputer industry. We found that politics - the observable, but often covert, actions by which executives enhance their power to influence decisions - arise from power centralization. Autocratic CEOs engage in politics and generate political behavior among subordinates. We also found that politics are not organized into shifting and temporary alliances based on issues. Rather, they are organized into stable coalitions based on demographic characteristics such as age and office location. Finally, politics within top management teams are associated with poor firm performance. (Reprinted by permission of the publisher.)

Analysis, Usage, Business planning, Coalition (Social sciences), Coalitions (Social sciences), Power (Social sciences), Political power

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Making fast strategic decisions in high-velocity environments

Article Abstract:

How do executive teams make rapid decisions in the high-velocity microcomputer industry? This inductive study of eight microcomputer firms led to propositions exploring the question. Fast decision makers use more, not less, information than do slow decision makers. The former also develop more, not fewer alternatives, and use a two-tiered advice process. Conflict resolution and integration among strategic decisions and tactical plans are also critical to the pace of decision making. Finally, fast decisions based on this pattern of behavior lead to superior performance. (Reprinted by permission of the publisher.)

Research, Executives

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