Strategic Decision Making in an Information-Rich Environment: A Synthesis and an Organizing Framework for Innovation Research

Abstract

Purpose

In the era of Big Data, larger volumes of data arrive in various forms at an increasing pace but of questionable quality and value. The abundant information (that emanates from these 5Vs – volume, variety, velocity, veracity, and value) taxes the bounded capacity of managers. This chapter introduces a taxonomy of approaches available for strategic decision making in an information-rich environment, several of which showcase that automation can help to augment (not supplant) managerial decision making. This taxonomy is then applied to an innovation context. Mapping a stylized version of the phases of the innovation process (i.e., front-end innovation, new product development, commercialization) onto the four decision-making approaches yields an organizing framework for understanding strategic decision making in the realm of innovation. The chapter concludes by identifying promising areas for future research.

Methodology/approach

This conceptual chapter: (1) explicates the foundational terminology regarding strategic decision making in a marketing context; (2) provides a primer on the era of Big Data and making strategic decisions in an information-rich environment; (3) introduces a taxonomy, which features approaches to decision making in an information-rich environment; and (4) applies the taxonomy in an innovation context to yield an organizing framework.

Findings

This chapter focuses on the nascent field that is emerging at the intersection of innovation, marketing strategy, and information-rich environments, and breaks new ground by exploring automation available to aid managerial decision making in this realm.

Practical implications

The main practical implication is to elucidate that managers can apply different approaches to decision making in today’s information-rich environment. Tables 2–4 provide to managers 12 examples of the types of decision making in an innovation context.

Originality/value

This chapter introduces a new taxonomy to classify four approaches for making strategic decisions in an information-rich environment, and extends that framework to the innovation realm. This framework aims to prompt researchers to explore important topics that exist at the intersection of innovation, marketing strategy, and managerial decision making in an information-rich environment.

Citation

Bharadwaj, N. (2018), "Strategic Decision Making in an Information-Rich Environment: A Synthesis and an Organizing Framework for Innovation Research", Innovation and Strategy (Review of Marketing Research, Vol. 15), Emerald Publishing Limited, Leeds, pp. 3-30. https://doi.org/10.1108/S1548-643520180000015003