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Decision making within and between organizations: Rationality, politics, and alliance performance

Jorge Walter, F.W. Kellermanns & Christoph Lechner

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abstract This study extends research on strategic decision making into the realm of strategic al-liances by examining the interactive effect of decision process characteristics at the firm and al-liance levels on alliance performance. Located both within and at the boundary between partners, alliance-related decision processes have to balance each partner’s self-interest on one hand and collective actions on the other hand, with both partners being dependent on each other’s collabo-ration. Using primary, cross-sectional data obtained from 103 high-technology alliances, we study the effects of procedural rationality and politics in decision making. Our results corroborate the importance of procedural rationality that facilitates collective actions between alliance partners, but also uncover the pitfall of an unconditional reliance on procedural rationality at the firm level. Our results further show that politically charged decision processes impair decision makers’ ability to reconcile individual interests both within and between alliance partners, and therefore jeopardize alliance performance.
   
type journal paper
   
keywords
   
language English
kind of paper journal article
date of appearance 9-2012
journal Journal of Management
publisher Journal of Management (Thousand Oaks, CA/USA)
ISSN 10525629
ISSN (online) 1557-1211
DOI 10.1177/0149206310363308
volume of journal 38
number of issue 5
page(s) 1582-1610
review double-blind review
   
citation Walter, J., Kellermanns, F., & Lechner, C. (2012). Decision making within and between organizations: Rationality, politics, and alliance performance. Journal of Management, 38(5), 1582-1610, DOI:10.1177/0149206310363308.