The Effect of Strategic Decision Making Tools on Rationality of Decision Making Process

This paper has analyzed the effect of using strategic decision making tools on the level of rationality of decision making process; through investigating the effect of nineteen strategic decision making tools and five main dimensions of rationality in decision making process. This paper includes two parts; the first part represents a theoretical research that covers the topic of research, while the second part represents a field study that used a random sample of eighty four Egyptian firms that represents 84% of the EGX100 companies. results of this research shows a significant statistical relationship between using SDMT and RSDMP in both service and manufacturing firms, and the relationship was more strong and significant in manufacturing firm and also in case of using the high usage level tools. The results also showed a variation of effect between the five dimensions of rationality under study. This paper provides new evidence related to the factors that affect the level of rationality in strategic decision making. It also adds to previous research that have focused on the importance of strategy decision-making tools and the different factors that affect the tools selection and use. The current research raises some significant points for future research, such as the effective use of strategic decision-making and the level of strategic decision effectiveness, and to what extent, the level of rationality in strategic decision making can affect an organization's performance. Addressing these points will enhance knowledge, and support the development of the strategic management theory and practice. Keywords Strategic Decision Making Tools, Rationality of Strategic Decision Making Process, Service and Manufacturing firms.