A Literature Review of the Strategic Decision-Making Context: A Synthesis of Previous Mixed Findings and an Agenda for the Way Forward

Abstract

The aim of this article is to conduct a comprehensive literature review concerning the influence of contextual factors on strategic decision processes. Our literature review organizes the existing literature on contextual factors along the lines of an integrative framework for studying strategic decisions. Interestingly, the stream of research on strategic decision processes is dominated by studies showing mixed, contradictory, and inconclusive findings. The effects of each contextual factor on the strategic decision process differ substantially across the reviewed studies. This creates several opportunities for further research on the topic. The review also reveals a paucity of cross-cultural studies, longitudinal studies, and tests of complex relationships such as three-way interactions, curvilinear relationships, and mediation effects. We conclude our review by suggesting seven directions for future research and identifying several implications for theory and practice.