Past studies on strategic decision-making are mainly focused on large corporations in the western context. The knowledge on how strategic decisions are made in small to medium sized enterprises is limited. Its application in the context of a transitional economy like China is also lacking. The present study is conducted to fill such a knowledge gap and intended to advance the theory and practice to the context of transitional economy where institutional change is considered the most predominant variable affecting strategic decision-making behaviours. Hence, the overall objective of the present study is to identify the specific pattern of strategic decision-making processes by Chinese private enterprises and to analyse the unique characteristics of their strategic decision-making behaviours. In addition, the study will also address the question of what factors would contribute to the differences in processes and behaviours. / In order to explore the characteristics and the patterns of strategic decision-making behaviours and processes undertaken by private entrepreneurs in China, a qualitative approach using multiple case study method is justified and used in the study. Five companies are selected from various industries and locations in China. Fieldwork includes in-depth retrospective interviews, site observation/participation, document analyses, archival study, and informal discussion, etc. 15 decision events relating to strategic issues are reported, analysed and interpreted. The results are interesting. Firstly, bounded rationality is found the most dominant mode of strategic decision-making undertaken by private entrepreneurs in China. Secondly, dual mode is used in most of the decision events. The most common pattern is the combination of bounded rationality and adaptation/incremental approach or the combination of bounded rationality and political/visionary style. Thirdly, avoidance mode is not applied in all decision events, implying that private entrepreneurs in China tend to deal with strategic issues directly. / Moreover, the results suggest that the decision behaviours of private entrepreneurs in China are characterized with the following: no formality and procedure in making strategic decisions, preferred to search comprehensive decision information, obligatory government involvement but random or ad hoc staff involvement in decision situations, highly flexible and recursive decision making process, strong personal vision in the decision content, and great speed in decision-making. The unique patterns and characteristics of their strategic decision-making behaviours are attributed to four major factors: a) the psychological context of the private entrepreneurs, i.e. decision-makers, who are found “overconfident” and “optimistic”; b) the decision context, which is more opportunity-driven and goal-driven; c) the organizational context, which belongs to the type of “centralization of power” on one single person, i.e. the private entrepreneur; and d) the institutional context, which facilitates opportunistic behaviours of private entrepreneurs in making strategic decisions. / In sum, the study contributes to the understanding of the insight of strategic decision-making processes and behaviours undertaken by private enterprises in China. In particular, the institutional perspective is of more direct relevance in the explanation of strategic decision-making model under the transitional economy like China. Based on the findings of the study, practical implications are drawn to show how private entrepreneurs could make strategic decisions more effectively in the transitional economy like China, e.g. preparing to use dual mode, getting government involved in the decision process, using strong personal vision, making speedy decisions and paying due attention to institutional changes. / Thesis (PhDBusinessandManagement)--University of South Australia, 2003.
| Identifer | oai:union.ndltd.org:ADTP/267699 |
| Creators | Chan, Kelvin Kwong Fai. |
| Source Sets | Australiasian Digital Theses Program |
| Language | English |
| Detected Language | English |
| Rights | copyright under review |
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