Identifying the factors affecting strategic decision-making ability to boost the entrepreneurial performance: A hybrid structural equation modeling – artificial neural network approach

Abstract

This study builds a conceptual model of strategic decision-making ability that leads to entrepreneurial performance (EP) based on the two-system decision-making theory and logical analysis. An empirical approach using structural equation modeling – artificial neural network (SEM-ANN) was performed to describe the linear and nonlinear relationships in the proposed model. The empirical results reveal that strategic decision-making abilities are affected by five factors: attention, memory, thinking, emotion, and sentiment, and whose influence mechanisms and degrees are varied. Results also describe that these abilities have a positive effect on overall EP. Therefore, results suggest that businesses’ strategic decision-making is usually strengthened when entrepreneurs have a clear understanding of these influencing elements, and the interaction between them leads to improved performance.

The Role of Financial Information Literacy in Strategic Decision-Making Effectiveness and Sustainable Performance among Agribusiness Entrepreneurs in Nigeria

“…Understanding the ever-changing trends in business environments enhances the effective strategic decision-making capabilities of firms [55]. This study concludes that to strengthen strategic decision-making capabilities, entrepreneurs must clearly understand and appreciate the influencing effects of these factors [56]. Knowledge management is also needed for effective strategic business decision-making processes among managers because valuable information is required in the decision-making process [52,57].…”

“…Anchoring their study on a two-system decision-making theoretical framework and applying structural equation modeling for data analysis, Feng, Han, Zheng, and Kamran [56] empirically demonstrated that strategic decision-making capabilities are influenced by memory and thinking capacity, among other factors. The study concludes that to strengthen strategic decision-making capabilities, entrepreneurs must clearly understand and appreciate the influencing effects of these factors.…”

A new mechanism for crisis management success

“…Risk management skills require a careful assessment of the values of decision‐makers and the ability to differentiate between scientific risk assessment and risk management processes (Aven, 2016). In addition, the ability to make strategic decisions is influenced by factors, such as attention, memory, thinking, emotion and the environment (Feng et al, 2022). Understanding these skills and integrating them into the corporate decision‐making process can significantly enhance a company's ability to manage risks effectively.…”

Entrepreneurial Development Activities and Business Skills Enhancement of Business Administration Students of Cavite State University- Tanza Campus

“…The result of the study can be justified by Feng et al (2022), who found out that entrepreneurship development activities are believed to contribute to the performance and wealth development of students. With the rapid expansion of the information economy, strategic decision-making is seen as a crucial tool for the success and prosperity of young entrepreneurs.…”