Article ID: | iaor199979 |
Country: | United Kingdom |
Volume: | 9 |
Issue: | 2 |
Start Page Number: | 115 |
End Page Number: | 132 |
Publication Date: | Jun 1998 |
Journal: | British Journal of Management |
Authors: | Papadakis Vassilis M. |
Keywords: | performance, management |
The central question that this paper aims to answer is whether there is a relationship between organizational performance and the characteristics of strategic investment decision (SID) processes. To do so, it adopts an empirically derived nine-dimensional framework for classifying SID processes and employs a set of objective and perceptual measures of performance. The empirical results stemming from the process–performance relationship, suggest that higher performance is strongly related to more rational decision-making processes (DMPs); more financial reporting activities; broader participation both in terms of departments and in terms of hierarchical levels. Furthermore, our data suggest that long-term performance appears to be more strongly related to SID processes than short-term performance and the ‘structural’ characteristics of the DMPs (i.e. rationality, financial reporting) are mainly related to long-term objective performance, while such ‘behavioural’ characteristics of the DMPs as problem-solving dissension reveal some interesting associations with short-term performance. In light of these findings, implications for theory and future research are advanced.