Behavioral Strategy and the Strategic Decision Architecture of the Firm

Abstract

This special issue explores the impacts of behavioral strategy on management practice. Behavioral strategy can best contribute to management practice by shifting its focus from individual decision biases to the design of behaviorally informed decision processes at the level of the firm. This introduction identifies three types of organizational decision processes, shows how they interact with individual and group biases, and proposes a model showing how managers can design and deploy these processes to shape the strategy of the firm. It then introduces the articles in this special issue and discusses their contributions to the future of behavioral strategy.

Full Steam Ahead or Abandon Ship? An Empirical Investigation of Complete Pivot Decisions

“…This recognition must be followed by strategies to mitigate such biases via establishing a decision architecture in early‐stage firms. Sibony, Lovallo, and Powell () offer a set of tools for building decision processes in ways that mitigate potential biases toward risk‐seeking, or conversely status‐quo inertia, and therein improve outcomes. This is useful because pivot decisions are needed to navigate the uncertain reception that potential customers will give to a new product (Schindehutte, Morris, and Kocak ), and thus formalizing an architecture around these decisions could improve effectiveness when the choice at hand is to potentially move to a totally new offering.…”

A Review on Behavioral Strategy Studies within Forest Products Industry

“…Çoğulcu okul; bireysel bilişi, sosyal psikolojiyi ve öğrenme ve işletme içi pazarlık gibi örgütsel olguları hesaba katarak firmanın karar çevresini birçok istatistiksel yöntemle çalışmaktadır. Bağlamsalcı okul ise örgütsel ve stratejik bağlamlardaki bireylerin dünya görüşlerine ve algısal çerçevelerine vurgu yaparak nitel veya yorumlayıcı yöntemleri kullanmaktadır [25].…”

Determinants of organizational vigilance: Leadership, foresight, and adaptation in three sectors

“…Their models need to reflect a broad array of factors that influence the need for vigilance, such as strategies chosen, market conditions, technological foundations, regulatory regimes, intellectual property, and country settings. Firm specific characteristics are also relevant, including leadership caliber, organizational design, incentives, decision rights, culture, and organizational design (Sibony et al, 2017). Although embryonic contingency models exist, they need further testing and operationalization.…”