Effects of Decision Motive and Organizational Performance Level on Strategic Decision Processes

The purpose of this study was to increase the understanding of how the performance level of an organization and the CEO's perceptions of a strategic issue affect the processes employed toward the development of recommendations for solutions. Two of the most important mechanisms mentioned in the strategic decision‐making literature are the CEO's subjective labeling of strategic issues and the performance level of the organization. These two variables were examined in this study. Superintendents from 220 school districts and presidents from 68 community colleges were asked through a questionnaire to report what processes they employ in recommending solutions to strategic issues described in a case study. A MANOVA procedure was used for the statistical analyses. The findings generally support the existing literature that contextual factors play an important role in the way leaders of organizations attempt to tackle strategic issues. Overall, results provide a clearer picture of the relationship between organizational performance level, the CEO's decision motive, and the processes used in finding solutions to strategic issues.