Is comprehensiveness in making strategic decisions always helpful?

Sasanka Sekhar Chanda and Sougata Ray
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Sasanka Sekhar Chanda: Strategic Management department, Indian Institute of Management Indore, Indore, India
Sougata Ray: Strategy and Entrepreneurship Department, Indian School of Business, Hyderabad, India

Australian Journal of Management, 2025, vol. 50, issue 4, 1011-1036

Abstract: Extant research provides incongruous answers to the question whether higher comprehensiveness in making strategic decisions is always desirable. To motivate a resolution, we study outcomes of decision-comprehensiveness by modeling strategic decision-making as an emergent process, accomplished through learning by managers over time for organizations focusing on exploration or exploitation, over short or long time horizons, in stable and changing environments. Three out of the eight resultant scenarios favor higher comprehensiveness, and two favor lower comprehensiveness. The remaining three scenarios call for a more nuanced consideration of the comprehensiveness construct. Our research enriches managerial decision-making by highlighting circumstances where higher comprehensiveness is beneficial or detrimental to the quality of a strategic decision. JEL Classification: D70, D81, D91

Keywords: Bounded rationality; comprehensiveness; dynamic environment; emergence; genetic algorithm; simulation; strategic decision-making (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:50:y:2025:i:4:p:1011-1036

DOI: 10.1177/03128962231201497

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