Studying Deciding: An Exchange of Views Between Mintzberg and Waters, Pettigrew, and Butler

Mintzberg, Henry; Waters, Jim

doi:10.1177/017084069001100101

Cited by 94 publications

(46 citation statements)

References 6 publications

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“…We also accept that the unit of analysis of this research was a single decision maker in the Australian biotechnology industry, a limitation to the extent that the locus of decision making in organizations can be diffused (Mintzberg and Waters, 1990). Given the highly uncertain nature of investment decisions in the biotechnology industry, questioning a single decision maker may not provide an accurate representation of how the organization as a whole approaches investment appraisal.…”

Section: Caveats and Limitationsmentioning

confidence: 99%

Entrepreneurs’ Capital Budgeting Orientations and Innovation Outputs: Evidence From Australian Biotechnology Firms

Hayward¹,

Caldwell²,

Steen³

et al. 2017

Long Range Planning

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How do different kinds of planning orientations affect entrepreneurial firms' innovation outputs? To address this question, we position real options reasoning (ROR) and net present value (NPV) as business planning orientations with distinctive heuristics. We empirically investigate heterogeneity in entrepreneurs' business planning in terms of these ROR and NPV orientations and we relate this heterogeneity to material new venture outcomes. Key decision makers from biotechnology start-ups in Australia were surveyed and results from Generalized Method of Moments estimation models showed that an ROR orientation positively relates to the innovation outputs of new ventures in our sample, whereas a stronger NPV orientation is negatively associated with innovation outputs. We offer implications for the literatures on strategic decision-making and planning.© 2016 Elsevier Ltd. All rights reserved. IntroductionHow does business planning affect innovation outputs of nascent firms? On the one hand, Delmar and Shane (2003) found that planning in general helps entrepreneurs to make abstract and vague attitudes more concrete, to stage speedy future actions and to anticipate and minimize bottle necks. These authors operationalize business planning with a dichotomous variable that captures whether entrepreneurs have completed a formal business plan.1 Using a sample of 223 new Swedish ventures, they find that plans hasten product development, strengthen organizing activity (a measure of the level of development of organizational processes) and reduce the likelihood of venture failure. Each of these outcomes has the propensity to improve innovation outputs. Similarly Zott and Amit (2007) showed that business model design can result in novel initiatives that increase performance of entrepreneurial firms.On the other hand, there is reason to believe that planning may impede innovation outputs. In particular, greater planning may cause planners to commit to the strategic decisions underpinning projected cash that in turn limits their ability to flex with changing market conditions (Ghemawat, 1991). Planning, especially that which is based on cause and effect, may prevent entrepreneurs from resourcefully marshaling their means to find innovative solutions (Sarasvathy, 2001). The planning fallacy emphasizes that decision makers, in general, and entrepreneurs, in particular, are unduly optimistic about their ability to complete projects on time and to budget -factors that can hinder them from unleashing innovative potential (Buehler et al., 1994).Here we seek to contribute to this debate by suggesting that the heuristics embedded in different kinds of planning orientations affect innovation outputs in entrepreneurial firms. At one extreme, capital budgeting and planning involves hard decision rules based on whether a project is expected to generate a positive net present value analysis, a conventional way of considering decision making in corporate finance. Finance scholars note that NPV analysis is a cornerstone of capital budgeting th...

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Section: Caveats and Limitationsmentioning

confidence: 99%

Entrepreneurs’ Capital Budgeting Orientations and Innovation Outputs: Evidence From Australian Biotechnology Firms

Hayward¹,

Caldwell²,

Steen³

et al. 2017

Long Range Planning

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“…decisão como atribuição retrospectiva feita por um observador a partir da constatação de determinados efeitos provocados pela decisão e decisão como realidade empírica caracterizada pelo momento de escolha que antecede a ação (Mintzberg & Waters, 1990;Einsenhardt & Zbaracki, 1992;Tsoukas, 2010 Decisão é um conceito amplamente aceito no campo das teorias organizacionais (Mintzberg & Waters, 1990). Contudo, Barnard (1968) já apontava para a dificuldade de localizar ou revelar as decisões na medida em que estas "não existem".…”

Section: Introductionunclassified

“…Yates (1990), por exemplo, verificou algum grau de consenso quanto à existência de diferentes tipos de decisões. As decisões denominadas estratégicas, segundo Pennings (1985) ao restringir os estudos à lógica da "máquina da burocrática", esquecendose do fenômeno em si (Mintzberg & Waters, 1990). Chia (1994) critica o trabalho de Mintzberg e Waters (1990) por tratar-se, em sua opinião, de uma discussão superficial a respeito do significado da palavra "escolha"…”

Section: Introductionunclassified

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Análise do Constructo Decisão Estratégica a partir de um Esquema de Classificação Multidimensional do Fenômeno

Villar¹,

Matitz²,

Róglio³

2016

FSRJ

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RESUMONeste trabalho, o objetivo consiste em ampliar a compreensão das potencialidades e das limitações relacionadas ao uso do constructo decisão estratégica, a partir de uma análise multidimensional do fenômeno. Metodologicamente, além do levantamento bibliográfico utilizado para a construção do referencial teórico, foi desenvolvido um esquema de classificação multidimensional desse constructo decisão estratégica por meio da análise categorial temática de conteúdo realizada em um corpus textual formado por artigos selecionados a partir da literatura da área. Finalmente, a partir da descrição e análise das dimensões propostas -estrutura da decisão, importância da decisão, dificuldade da decisão, interação com outras decisões, participação na decisão e efetividade da decisão -, foram discutidas aplicações do esquema de classificação multidimensional do constructo decisão estratégica sob o ponto de vista (i) das formas de conceituação e operacionalização do fenômeno e (ii) da construção de tipologias de decisão estratégica. Incluem-se, entre as principais contribuições do esquema proposto, seu potencial em Analysis of the Construct Strategic Decision from a Classification Scheme of Multidimensional Phenomenon ABSTRACTThe objective of this study consists of broadening the understanding of the potentialities and limitations related to the use of the construct strategic decision, from a multidimensional analysis of the phenomenon. Methodologically, in addition to the literature survey used for the construction of the theoretical framework, we developed a classification scheme of the multidimensional construct strategic decision by means of categorical thematic analysis of content in a textual corpus consisting of articles selected from the

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“…As a result, there has been some debate between Mintzberg and Waters, Pettigrew and Butler (in Mintzberg, Waters, Pettigrew, & Butler, 1990) about how best to study the process of strategy formation. Mintzberg & Waters, Pettigrew and others such as Hellgren andLo¨wstedt (1998),andLangley, Mintzberg, Pitcher, Posada, andSaint-Macary (1995) have argued that 'decision-making' as a concept has ceased to be fruitful.…”

Section: Introductionmentioning

confidence: 99%

Strategy formation as layered discussion

Sminia

2005

Scandinavian Journal of Management

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This paper seeks to elucidate the day-to-day activities comprising the strategy process at the senior management level as part of a layered discussion. The recent interest in micro-strategy has stimulated a re-examination of data gathered during an eight-month stay with the senior management group of one of the larger construction companies in the Netherlands in 1990 and 1991. It emerged that the intended strategy was rarely debated deliberately or openly. If strategy content was ever discussed, it was usually in an implicit manner while dealing with other subjects, where the outcome appeared to have a bearing on the strategic direction of the firm. r

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Studying Deciding: An Exchange of Views Between Mintzberg and Waters, Pettigrew, and Butler

Cited by 94 publications

References 6 publications

Entrepreneurs’ Capital Budgeting Orientations and Innovation Outputs: Evidence From Australian Biotechnology Firms

Entrepreneurs’ Capital Budgeting Orientations and Innovation Outputs: Evidence From Australian Biotechnology Firms

Análise do Constructo Decisão Estratégica a partir de um Esquema de Classificação Multidimensional do Fenômeno

Strategy formation as layered discussion

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