Making fast strategic decisions in high-velocity environments

Author(s)
Eisenhardt, K. M.
Pages
35pp
Date published
01 Sep 1989
Publisher
The Academy of Management Journal
Type
Articles
Keywords
Leadership and Decisionmaking

How do executive teams make rapid decisions in the high-velocity microcomputer industry? This inductive study of eight microcomputer firms led to propositions exploring that question. Fast decision makers use more, not less, information than do slow decision makers. The former also develop more, not fewer, alternatives, and use a two-tiered advice process. Conflict resolution and integration among strategic decisions and tactical plans are also critical to the pace of decision making. Finally, fast decisions based on this pattern of behaviors lead to superior performance.