Strategic Thinking and Decision Making: Literature Review

Abstract
Purpose – The paper seeks to examine both management and psychological literature on strategic
decision making.
Design/methodology/approach – A review of the management and psychological literature is
undertaken, with particular focus on factors affecting strategic decision making.
Findings – The literature review reveals that managerial cognition as well as individual and
corporate values can have an impact on strategic decision making. The review also finds that strategic
competencies are important although there is no agreement within the literature on what those
competencies are.
Originality/value – Strategic thinking and strategic decision making have been discussed within
the psychological and management literature for decades. Psychological and management theoretical
perspectives and empirical research have been discussed separately and failed to consider both
together. The current paper reviews both psychological and management literature to provide an
understanding of the strategic thinking and decision making process and factors that may affect the
process.
Keywords Strategic thinking, Strategic decision making, Individual values and beliefs,
Organizational culture, Competencies, Psychometric-objectivist model, Strategic management