Abstract
Purpose
The purpose of this paper is to present a conceptual framework for integrating strategic thinking factors, organisational performance and the decision-making process.
Design/methodology/approach
The methodology involves a synthesis of literature and proposes a framework that explores the relationship between strategic thinking enabling factors, organisational performance and the moderating effect of decision-making styles.
Findings
The framework includes strategic thinking enabling factors (systems perspective, focused intent, intelligent opportunism, thinking in time and hypothesis-driven analysis), organisational performance and the moderating effect of decision-making styles (intuitive and rational).
Research limitations/implications
This research results in a conceptual model only; it remains to be tested in actual practice. The expanded conceptual framework can serve as a basis for future empirical research and provide insights to practitioners into how to strengthen policy development in a strategic planning process.
Originality/value
A paradigm shift in the literature proves that strategic management and decision-making styles are vital in determining organisational performance. This paper highlights the importance of decision-making styles and develops a framework for strategic management by analysing the existing strategic management literature.
Keywords
Citation
Sinnaiah, T., Adam, S. and Mahadi, B. (2023), "A strategic management process: the role of decision-making style and organisational performance", Journal of Work-Applied Management, Vol. 15 No. 1, pp. 37-50. https://doi.org/10.1108/JWAM-10-2022-0074
Publisher
:Emerald Publishing Limited
Copyright © 2023, Tamilarasu Sinnaiah, Sabrinah Adam and Batiah Mahadi
License
Published in Journal of Work-Applied Management. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode
1. Introduction
Managers are appointed to achieve the organisation's objectives and goals. As these objectives gradually increase with competition, managers must become strategic thinkers with excellent decision-making skills. The strategy towards the organisational outcome highlighted in this section has been widely debated among academic scholars and practitioners. Organisational strategies are essential in sustaining an organisation's competitive advantage to face a complex and uncertain future.
Effective strategic management frameworks enable managers to focus on the complex issues that must be prioritised to hasten decision-making processes (Dlamini et al., 2020). Whilst enabling managers important to make the decisions needed to direct the organisational effort towards overcoming specific issues (Wang et al., 2021). The organisation's effectiveness in addressing critical issues with solutions that best fit the current environmental factors will ensure the vitality and image of the organisation. Strategic management is pertinent to manage the organisation in a continuous, systematic manner.
The term strategy indicates the implementation of two segments to achieve the organisation's objectives and goals.
The first segment of strategic management is the effective action programs chosen to reach these goals and objectives.
The second segment is the resource allocation pattern that relates the organisation to its environment.
Moreover, strategic management is defined as translating the thinking process into an action plan that benefits the organisation to sustain its competitive advantages. Strategy also can be categorised as strategic thinking and strategic planning. Strategy is also the commitment of the top-level management to attaining outcomes aligned with the organisation's strategic objectives. Strategy can be realised when there is consistent outcomes or patterns over the years. Therefore, strategy is planning for the future or determining patterns based on consistent outcomes. Organisations must develop plans and also evolve patterns derived from previous organisational outcomes. These phases can be explained as intended strategy and realised strategy.
The effectiveness of the strategies employed can indicate the organisation's performance in achieving its objectives and goals. Organisations need to measure the outcome of the strategies employed by having measurable objectives that will enhance the employees' commitment towards achieving the goals. Conversely, organisational learning and financial measures such as organisational profitability can also benchmark organisational performance. The responsiveness of organisational performance has a direct relationship and is influenced by management efforts to emphasise leadership within the organisational structure. This is done by observing the support and strategies utilised by managers to achieve the objectives and goals. This paper aims to enhance an understanding of strategic management processes involving decision-making styles towards organisational performance. First, this paper highlights strategic management's operational and theoretical approach towards organisational performance. Moreover, this study enhances the result of previous literature on strategic enablers by explaining the effort involving decision-making to strengthen the organisational structure, particularly the decision-making styles (intuitive and rational), that moderates the relationship between the strategic thinking process and organisational performances (Ritter, 2014).
Academic scholars and practitioners have highlighted the importance of strategic management in measuring organisational performance in terms of innovation, entrepreneurship, technology, knowledge, economics, healthcare and organisational performance (Adam et al., 2018, 2020; Alosani et al., 2020). Conversely, there is a knowledge gap on the effective judgement practices of strategic management enablers and organisational performance during decision-making (Abuhjeeleh et al., 2018; Acciarini et al., 2021; Elrehail et al., 2020; Nguyen, 2020). This paper analyses the relationship between strategic management and organisational performance and suggests a framework to elucidate the relationship variables such as moderators, rational and intuitive decision-making styles.
2. Literature review
Strategic management is applying strategic decisions towards the organisational vision to achieve strategic competitiveness and sustain competitive advantages (Alosani et al., 2020; Rodrigues and Franco, 2019). Strategic management is a cognitive impairment of structuring the internal capabilities to fulfil external demands and involves plans, patterns, positions, perspectives and plots (Mintzberg et al., 2020). Strategic management is the managerial discourse involving a framework of the decision-making process, which highlights how the strategy process is formulated in organisations, acknowledging the cognitive management structure of the organisations. Additionally, the organisation's members need to respond effectually to the decisions made by the management and cooperate to ensure that the organisational vision is reached, given that this will affect the organisational adaptability, legitimacy and performance (Johnsen, 2015). Organisations must be aware of the uncertain environments that can influence their welfare.
Consequently, the strategic management process can be reflected in two directions: strategic planning and strategic thinking. Strategic planning emphasises formulating strategies or disciplined efforts to produce strategic decisions to achieve the organisation's objectives (Bryson, 2018). Strategic planning also can be reflected as a system that enhances the decision-making process among the members of an organisation. The strategic management process needs to be fulfilling for the organisation to sustain its competitive advantages. Moreover, strategic thinking is creative, disruptive, future-focused and experimental and often contradicts traditional notions of strategic planning (Liedtka, 2000). Strategic planning is the principal element of the strategic management process involving resource management, implementation, control and evaluation of strategies (Poister et al., 2010). Strategic planning focuses on formalising existing strategies and employing creativity to enhance perspectives (Mintzberg et al., 2020). The uncertainties of environments and conflicting perspectives can be evaluated and addressed using strategic thinking as a part of the organisational decision-making process (Chin et al., 2018). Studies by Goldman et al. (2015) indicated that organisational members are not actively involved during the strategic decision-making process, leading to the decline in the organisation's performance.
The importance of the strategic decision-making process towards organisational performance was emphasised by Steptoe‐Warren et al. (2011). The research suggested that evaluating, identifying and validating the process will enhance the strategic thinking process to positively impact performance (Norzailan et al., 2016). Moreover, strategic thinking plays a vital role in analysing the external factors influencing the process. If the organisational members take it lightly, it will lead to perception deficiencies (Kızıloglu and Serinkan, 2015). Additionally, the study highlighted that strategic planning occurs after strategic thinking (Alatailat et al., 2019; Bonn, 2001; Mintzberg, 1994). Consequently, this study will focus on strategic thinking as the fundamental phase in the strategic management process.
A conceptual framework that highlights the management principles among the business process in delivering effective solutions for problems is shown in Figure 1.
3. Strategic management
Strategic management is defined as a framework for achieving success, and it is pivotal for organisations to achieve their objectives and continuously perform better (Elliott et al., 2020). Additionally, strategic management is a continuous process of looking for a better action plan to ensure the organisation's competitiveness.
3.1 Strategic thinking
The most challenging issue an organisation faces is awareness of the strategic vision and missions, available resources and identifying opportunities for growth within the organisation (Bryson, 2018). Therefore, strategic thinking is a vital element in the chain of processes, which must be carried out effectively and systematically (Sahay, 2019). Nevertheless, organisations need to be aware that strategic thinking can fail miserly if the decision-makers do not realise the strategic enablers or the factors responsible for the effective strategic thinking process. Strategic enablers influence the thoughts and decision process of the organisational members (Goldman et al., 2015). Therefore, strategic enablers will lead the organisation's members towards idea growth and personal development, while strategic thinkers expedite the organisational performances (Alatailat et al., 2019).
Individuals involved in the organisational structure utilise their experiences and thought processes in managing conflicts to enhance strategic thinking (Alaarj et al., 2016). Strategy managers or thinkers recognise the relationship between business responsibilities and departments and organisations and their business stakeholders (Cabral et al., 2019). This relationship is known as “system thinking”, where an organisation explores the structure reflected in the action and environment that causes the incident. Additionally, the direction or the organisational destiny is a type of strategic intent utilised to help achieve the business objectives. This occurs when all the employees can concentrate on their purpose until it is achievable.
Strategic intent is pertinent in increasing competitive advantages and improving organisational performance (Chen et al., 2015). Intelligent firms must be considered before becoming competitive to ensure the organisation can create intelligent opportunities to lead the business emerging strategies towards their vision (Alaarj et al., 2016). Conversely, the organisation should integrate previous events with the current situation to achieve and align with the organisation's objectives. This is vital for organisations to connect to the past and present environment to envision the firms and prepare for any internal or external challenges in their business (Abubakar et al., 2019). A hypothesis-driven analysis is the core element in the strategic thinking process to gather relevant information regarding the business. Therefore, the challenges faced must be transformed into a hypothesis-driven analysis to understand better the measures needed to be taken by the stakeholders to improve the organisational performances.
3.2 Decision-making style
The role of managers within an organisation must be elucidated to help enhance the decision-making process to create competitive advantages for the organisation (Dionisio, 2017). Moreover, Porter (1990) emphasised the differences between competitive strategy and competitors. Decision-making styles also play a vital role in formalising the strategic decision procedure and can be defined as a habitual or formal response pattern taken by managers when there is an incident (Kulcsár et al., 2020). According to Acciarini et al. (2021), decision-making styles are directly related to cognitive styles involved in the strategic thinking process. Decision-making style, which can be both at individual and team levels, can be classified into intuition and rationality (Dayan and Di Benedetto, 2011; Dayan and Elbanna, 2011; Giermindl et al., 2022; Luan et al., 2019; Sukhov et al., 2021). Therefore, the author highlighted that cognitive styles could be divided into two different categories: “feeling as information evaluators”, where managers actively gather information intuitively, and “thinking as information evaluators”, where managers systematically collect information (Behling et al., 1980). Alternatively, decision-making styles can be considered intuitive and rational information gathering and evaluating styles (Calabretta et al., 2017).
The intuitive decision-making style can be defined as the episodes of uncertainty patterns of action imposed by managers or the decision-makers based on the current situation. In addition, intuitive decision-makers must be aware of current issues and relate the relationship between cognitive schemes with holistic thinking to resolve problems (Calabretta et al., 2017). It is also believed that the intuitive decision-making process can be influenced by a sudden awareness of information (Zhu et al., 2017). Decision-makers can determine solutions without fully understanding or realising the extent of information available. Studies agree that the intuitive decision-making process can occur when unsorted information is restructured into an organised pattern of action that transforms into a conscious solution (Zander et al., 2016). Furthermore, the intuition organisations performance is enhanced when decision-makers utilise the intuition decision-making style when there is no access or relevant analytical data to support them in making strategic decisions that align with the organisation's objectives (Temprano-García et al., 2018). Conversely, intuition decision-making also contributes positively to the organisations performance when the issues are resolved quickly despite limited resources or knowledge on the current issues.
Studies by Sauter (1999) emphasised that intuition decision-making or illumination is a sudden awareness of information where the decision-makers are unaware of fundamental facts or information. The author also highlighted several ways to establish the intuitive decision-making process. First, detection is an intuition where decision-makers think of several different situations rather than focusing on the current issue (Kolbe et al., 2020). Working on current strategic issues will enable managers to comprehend related information to help solve the issue by connecting facts or elements that previously did not relate to each other (Temprano-García et al., 2018). Another form of intuition is evaluation, where the solution appears as an available option creating a sense of certainty or vague feelings towards the analytical data (Hodgetts et al., 2017).
Conversely, the intuition decision-making process can also be hypothesised as an explicit and implicit decision-making style (Tabesh and Vera, 2020), where explicit decision utilises feelings or emotion and implicit decisions refer to the experience of the relevant situation (Bhat et al., 2021; Remmers et al., 2016). Moreover, intuitive decision-making styles also utilise the subconscious processing of verbalised and nonverbalised facts or information (Tabesh and Vera, 2020). A recent study suggests that intuitive decision-making aided managers in enhancing the strategic decision towards the organisation's performance (Francioni and Clark, 2020).
Rational decision-making involves several solutions that will be analysed based on the issues and the relevance of this information towards the current problem before implementing the final decision (Temprano-García et al., 2018). The structured information consisting of conscious thinking must be evaluated critically (Acciarini et al., 2021). In addition, the rational decision-making process will enhance the effectiveness of the decision by structuring the decision criteria by highlighting and evaluating the alternatives individually (Fitzgerald et al., 2017). The decision-makers or the managers who utilise rational decision-making styles are more likely to be vigilant and organised about available information during decision-making (Zhu et al., 2021).
3.3 Organisational performance
For five decades, organisational performance has been widely researched by academic scholars and business practitioners (Adam et al., 2018). Organisational performance has been analysed in terms of normative and descriptive explanations in strategic planning research for continuous improvement in managing organisational performance (Buddika et al., 2016). Organisational performance can be explained by describing how things happen without judging good or bad. Alternatively, the organisational performance also can be elucidated by an evaluation in terms of performance against a benchmarked alternative or standard or by a descriptive statement explaining how the situation occurs without judgement (Camilleri, 2021). Even though most research is done on the continuous improvements of organisational performance, practitioners still have many arguments and discussions on the terminology and conceptual bases to determine organisational performance (Sarraf and Nejad, 2020).
Organisational performance can be reflected based on the results of the organisation's common objectives, given that the methods implemented are coherently used. Consequently, the performance processes' flow or the input resources can be critically analysed (Tsai et al., 2020). The effectiveness of organisational performance is influenced by the process implemented and can be measured by the achievements. Furthermore, organisational performance is defined as analysing the series of improvements to achieve organisational objectives. Generally, various factors can be associated with organisational performance, such as organisational structures, conflict, cross-cultural and social influences (Sinnaiah et al., 2023).
Performance measurement is a systematic series to identify the effectiveness and efficiency of people's behaviour to perform to their utmost abilities. Adam et al. (2018) described performance measurement as a unit, department or business process. Therefore, it is conceptualised that there is a structural relationship between organisational performance and performance measurement. Moreover, performance measurement requires substantive and relevant restructuring of input resources and processes to be aligned with the current system to increase productivity level or performance. Failure to analyse the performance measures will weaken the organisational strength and drain the organisation's efforts (Alosani et al., 2020). Thus, strategic thinking can be a highly effective performance measure for organisations.
4. Propositions
4.1 Strategic thinking process and performance
Strategic thinking is a structured assessment of analysing and synthesising information, intensively assessing the current situation and initiating new ideas or best available options to achieve strategic objectives (Dhir and Dhir, 2020). An organisation's success depends on strategic thinking as it will enhance a decision-maker's skills, abilities and knowledge and help sustain competitiveness in uncertain environments (Dhir et al., 2021). Consequently, the process of strategic thinking is crucial for any organisation to successfully achieve and survive in the market for a more extended period. Decision-makers need to be effective and cognisant of the business opportunities that arise from innovating new ideas to enhance the strategic portfolio of organisations (Bryson et al., 2018).
It is imperative for decision-makers to holistically understand the organisation's structure and environment and recognise the relationship among the departments and the complexity of these structures. Moreover, the organisation's performance is boosted when creativity is used to determine the survival of new ideas and processes in line with the organisation's vision (Buddika et al., 2016). Consequently, organisations will then reshuffle their strategic objectives accordingly to ensure positive results (Dhir and Dutta, 2020). This is a double-edged sword where the organisation must balance and simultaneously enforce change (Dhir et al., 2021). The organisation's effectiveness can determine the implementation of the strategic thinking process towards the organisation's goals and strategic objectives. Moreover, the organisations will then develop core competencies that will determine the competitive position and sustainability of the organisation in any uncertainties (Bamel et al., 2019). Various studies have postulated that organisational performance can be determined by the output of the strategic thinking process (Dhir and Dhir, 2020; Dhir et al., 2021; George, 2021; Sarraf and Nejad, 2020; Supramaniam and Singaravelloo, 2020; Tabesh and Vera, 2020; Tsai et al., 2020; Wang et al., 2021; Zhu et al., 2021). Therefore, organisations that are aware of strategic resources and employ innovative solutions are more competitive and sustain favourable positions for a longer period. Based on these arguments, the following proposition was proposed:
Strategic thinking process will positively influence organisational performance.
4.2 Rational decision-making style, strategic thinking process and performance
In evaluating an organisation's performance and the uncertainties of the environment that influences the complexities in achieving positive growth for the organisation successfully, managers must have decision-making skills that utilise strategic thinking processes. Moreover, managers must be responsible for making fast and effective solutions by analysing, evaluating and prioritising available information to overcome strategic issues and obtain positive results (Acciarini et al., 2021). According to Calabretta et al. (2017), there is a positive correlation between the strategic thinking process and decision-making style. Decision-making styles have the same structure as strategic thinking, which involves different levels, such as organisation or individuals.
Therefore, strategic thinking and the decision-making process involve step-by-step procedures to effectively utilise rational decision-making within organisations (Hodgkinson and Sadler-Smith, 2018). Academic scholars agree that rational decision-making will help managers highlight the issues, generate effective solutions, choose the most relevant solutions and apply and evaluate the solution. Conversely, managers also utilise strategic thinking when searching for possible solutions for the organisations (Calabretta et al., 2017). Various studies have empirically researched the correlation between the rational decision-making style towards organisational performance (Deslatte, 2020; Hamidullah et al., 2021; Nagtegaal et al., 2020). Furthermore, the rational decision-making process enhances the managers' skills and abilities to employ a formal planning process to detect and highlight issues before assessing possible resolutions. Bellé et al. (2018) emphasised that decision-makers who employ this type of decision-making can be highly participative and liberal. Additionally, the managers should be more aware of the organisation's internal and external competitive advantages before deriving strategic decisions that can positively affect the organisation. Based on these arguments, the following proposition was proposed:
Rational decision-making will moderate the relationship between the strategic thinking process and organisational performance.
4.3 Intuitive decision-making style, strategic thinking process and performance
Several studies highlight the roles of the strategic thinking process among managers within the boundaries of our cognitive capacities (Kaufmann et al., 2017) and postulate that mental flexibility can influence it (Barlach and Plonski, 2021). Studies also emphasise that managers or decision-makers often utilise intuition during challenging situations, which is expected compared to the rational way of analysing the issues (Kaufmann et al., 2017). This intuition process can be a two-fold construct consisting of experience-based and emotionally affected situations. Additionally, this can involve a complex process of information affected by new cues towards previous experiences stored in their memory and transform it into subconscious action in the decision-making process (Stanczyk et al., 2015). Based on the study done by Simon (1976), academic scholars and practitioners emphasised that managers are highly keen on inner feelings or gut feelings involving strategic decisions when faced with competitive issues (Al-Jaifi and Al-Rassas, 2019; Bozhinov et al., 2021; Palaniappan, 2017). The decision-making process utilising intuition uses available information, which might not have been available in the past, to quicken the process of decision-making. It is also important to realise that decision-making depends on the issues faced by the organisations, and not all issues require a rational decision-making style. For specific issues, managers might only need relevant information, deliberation and formal procedures to derive effective solutions for the organisation compared to instances where the managers are not bounded by any set of procedures or rules to solve the issue.
Therefore, strategic thinking is a process of synthesis, and based on intuitive decision-making style, where the outcome is an integrated perspective of the enterprise, managers can utilise intuition decision-making style to arrive at a solution with complete freedom and flexibility towards the organisational performance. The decision-makers attempt to be involved in the decision-making process while being aware of the current issues and having a sense of relationship among the cognitive schemas with the approach of holistic thinking to determine the solution to the problem (Khemka and Hickson, 2021). It is clear that the intuitive decision-making process would include the issues faced by the organisation in analysing the issues and synthesis (Zhu et al., 2017) although all the processes occur under the sense of relationship or perception. It is also believed that the intuitive decision-making process could be influenced by the decision-makers upon the sudden awareness of information (Peng et al., 2020), whereby the decision-makers could propose a solution without the understanding or realisation of why the facts are present.
Academicians agree that the decision-making process occurs with several unconscious facts from unorganised information that is restructured into an organised pattern of action, followed by its transformation into a conscious solution (Parker et al., 2018). It was also emphasised that the intuition decision-making process enhances the organisation performance when the decision-makers utilise the intuition style in the form of intelligence despite the absence of access or relevant analytical data that will support them in making strategic decisions in line with the organisation objectives (Temprano-García et al., 2018). Besides, intuition decision styles also contribute positive impacts to organisation performance when the decision-makers or the managers are able to react to the issues swiftly despite the limited resources or knowledge on the current issues. Bruine de Bruin et al. (2020) highlighted that the intuition decision-making style could also be known as illumination, which is a sudden awareness of information where the decision-makers are not aware of the fundamental facts and information they agreed upon. Based on these arguments, the following proposition was proposed:
Intuitive decision-making will moderate the relationship between the strategic thinking process and organisational performance.
5. Discussion and conclusion
This paper reviews strategic management involving the strategic thinking process, organisational performance and decision-making styles with extant empirical work transforming into propositions, with the ultimate goal being to integrate the strategic management process into a systematised and approachable process that needs a fast response. Strategic management plays a vital role in aligning the standard repertoire of an organisation's strategic thinking. Moreover, managers must realise that strategic thinking has a unique process that depends on the situation. The thinking process should be aligned with the specific scenarios to ensure the best solution can be implemented. To sustain competitive advantage, managers should be effectively involved in the strategic thinking process to positively impact their organisations (Bryson et al., 2018).
The importance of strategic thinking enablers (systems perspective, focused intent, intelligent opportunism, thinking in time and hypothesis-driven analysis) was emphasised in the strategic thinking process and organisational performance. The systems perspective exposes the importance of organisations understanding the relationship between functions and departments internally and externally. Furthermore, organisations need to consider the functional, business and organisation strategies towards a highly competitive environment (Buddika et al., 2016). Consequently, these systems perspectives will help organisations manage interactions effectively across all departments to enhance productivity. Focus on intent will guide the organisations towards achieving strategic objectives and resisting eccentricity (Bromiley and Rau, 2015). Focus intent will positively aid organisations to be more competitive in the long run as the managers realise the sense of discovery in managing strategic objectives. Therefore, it will improve the performance and consciously push the organisation towards innovation by eliminating limitations and becoming high achievers. Conversely, intelligent opportunism will enhance the strategic objectives by creating new opportunities to be more competitive although the strategies do not align with the current vision of the organisation. This is where intelligent opportunism will play an essential role at the managerial level of the organisation to effectively communicate and measure organisational performances (Camilleri, 2021).
Emerging strategies will boost the organisation's motivation and productivity and should be carefully evaluated from time to time as the future of the organisations might be projected based on the past performance. Therefore, the importance of swift thinking permits the strategic managers to purposefully analyse the mission and vision of the organisation over time. The right action at the right time will help the organisations sustain competitively and save the organisations from self-destruction by limiting the positive changes made to help improve the organisation's performance (Adam et al., 2018).
Maintaining the balance between thinking creation and cognitive processing (Calabretta et al., 2017) and enhancing organisational performance (education, financial, creative, innovation, e-commerce and quality) is a challenge faced when creating effective management strategies (Adam et al., 2018; Al-Jaifi and Al-Rassas, 2019; Alharbi et al., 2019; Arvis et al., 2018). In addition, based on previous theoretical perspectives, most of the research scenarios will be based on the governance mechanisms of management and the policy development impacts on organisational performance (Abubakar et al., 2019). Therefore, based on extensive empirical and conceptual research, strategic thinking processes positively contribute to measuring organisational performance. Based on previous research, this study infers that cognitive development plays an effective role in the segregation of control between strategic thinking, which serves as a barrier to becoming more competitive and innovative in the long run (Adam et al., 2018). In addition, this happens among employees and directly impacts the quality of the organisational harmonies, such as mutual respect, trust and welfare of the employees. A cognitive processing environment is the use of intuition and rationality in decision-making with equal importance. The managers utilise intuition decision-making styles to resolve unrelated information received. During the strategic thinking process, the managers will receive unsorted information without processed knowledge which will be later organised into sorted knowledge using intuition styles (Zander et al., 2016). However, the rational decision-making style focuses more on the analytical procedure to conclude an issue the organisation faces. This helps the managers build confidence in the solution by eliminating uncertainty during decision-making (Zhu et al., 2021). Moreover, managers will only accept solutions with clear and less ambiguous information (rational) compared to managers utilising a more subconscious style (intuition) when formulating solutions. Consequently, there will be conflict in the decision-making process within the organisations.
According to Boamah et al. (2022), the effectiveness of decision-making styles can differ according to the situation and the dependents. Alternatively, both decision-making styles were highlighted as an alternative way of generating a problem–solution approach within organisations (Kolbe et al., 2020; Stanczyk et al., 2015). This study argues that both decision-making styles have equal importance in resolving problem–solution approaches and can be a harmonious process to achieve an effective performance measure. This argument is supported by Acciarini et al. (2021), Tabesh and Vera (2020). Therefore, this study concludes that both decision-making styles (rational and intuition) positively impact the strategic thinking process and organisational performance. Based on the framework in Figure 1, the proposed framework highlights the missing sections of cognitive processing among businesses when delivering effective solutions for a complex problem. Organisations have only emphasised human capital and treated it as a scarce resource that will determine the organisation's performance. This study proposed that future strategic management researchers should explore the thinking process literature's core principles to investigate policy development further. Future research should transform these academic initiatives into empirical research by implementing this proposed model.
Figures
Competing interests: The authors reported no competing interests.
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Acknowledgements
The authors acknowledge the administration of Azman Hashim International Business School, Block T08, Universiti Teknologi Malaysia, Johor, for providing the facilities and the PhD Scholar room during this research.