STRATEGIC DECISIONS IN ORGANIZATIONS: RATIONAL AND BEHAVIOURAL VIEWS

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Abstract
Various models or lenses have been used to predict and understand strategic decisions in organizations. This article examines four classes: (1) the unitary rational; (2) the organizational; (3) the political; and (4) the contextual. They are conceptualized as stemming from different assumptions about goal congruency and co‐ordinative efficiency. the contextual view is especially highlighted, as it is a relatively new perspective, both organizationally and cognitively.A brief discussion is offered of disciplines and findings that either support or refute some of these models. Possible syntheses and reconciliations of the four views are explored, focusing on: (1) assumptional fit; (2) level of analysis; (3) cost of fashioning collective rationality; (4) information processing limits in organizational design; and (5) the role of adaptation lags and disequilibrium. the article concludes with a call for a meta‐theory that places the various perspectives in a larger framework.

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