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The contingency approach and its relevance to theory building and research in marketing is described. The approach is delineated and its theoretical foundations traced. Several established contingency theories within the management discipline are outlined and the research they have stimulated on related topics in marketing are highlighted. An assessment of the current state of the contingency approach in marketing literature is then provided.

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Strategic decision‐makers typically are involved in a series of incremental decisions, each affected by a variety of contextual factors. This papers develops a model of the psychological context of strategic decisions and reports two experiments. First, students made reinvestment decisions faced with success or failure feedback on a past decision, high or low perceived organizational slack, and decisions framed to depict a positive or negative future outlook. All three variables had main and interactive effects. Second, managers made similar decisions in a related experimental design. Results confirmed and extended the initial findings. Implications and directions for future research are discussed.

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