The Strategic Decision-Making as a Complex Adaptive System: A Conceptual Scientific Model

Abstract

A company in a competitive environment that wishes to be a benchmark in the business world needs a management model that enables the development of systemic thinking on the part of its executives. In addition to systemic thinking, it is also necessary that executives (i) are aware that the decision-making processes should be shared, (ii) have bounded rationality, and (iii) exert political influence according to their preferences. In this context, the aim of this paper is to describe a conceptual scientific model for strategic decision-making from rules originating from Complex Adaptive Systems and the following mathematical techniques: Analytic Network Process and Linear Programming. This applied and quantitative study is a theoretical essay developed from an integrative review of the aforementioned concepts and techniques, resulting in the proposition of a scientific and conceptual mathematical model that can be applied to a wide variety of business environments. The results obtained from a hypothetical example (Strategic Operation Management Decision) show that the model is able to rank a set of strategic decisions in the environment of most companies and generate information to minimize the negative effects of shared decisions.

Dynamic Analysis for a Kaldor–Kalecki Model of Business Cycle with Time Delay and Diffusion Effect

“…In the following, one investigates the conditions of Hopf bifurcation of (2). By (14), one can obtain…”

“…Recently, business cycle, as one of the important economic phenomena, has received attractive attentions due its widely application in many fields such as economic decisions, macroeconomic regulation, and market regulation [1][2][3][4][5][6][7][8]. In order to understand the mechanisms of business cycle, many models are proposed.…”

A Multilayer Model Predictive Control Methodology Applied to a Biomass Supply Chain Operational Level

“…Thus, it is important to efficiently use the resources at the minimum cost possible [22] trying also to reduce the impacts and a continuous feedstock supply [7]. This is also the main challenge of supply chains [9,15], where complex decisionmaking processes are needed to achieve short-, medium-, and long-term goals [23].…”

How should strategy prevail if organisations are seen as having the properties of complex adaptive systems?

“…The ambiguity between differentiating strategy-making from its implementation characteristic in the choice perspective became increasingly confronted as a false division of work between executives who viewed themselves as 'think engines' of the organisation and the rest of the employees as implementers. As a result of this, there was a shift from a strategy-making process from being perceived as a strategic choice into being perceived as a strategic change, now known as CAS (Metcalf andBenn, 2013, Wollman andSteiner, 2017).…”