The Influence of Context on the Strategic Decision‐Making Process: A Review of the Literature

Abstract

This paper critically reviews the strategic decision‐making process literature, with a specific focus on the effects of context. Context refers to the top management team, strategic decision‐specific characteristics, the external environment and firm characteristics. This literature review also develops an illustrative framework that incorporates these four different categories of contextual variables that influence the strategic decision‐making process. As a result of the variety and pervasiveness of contextual variables featured within the literature, a comprehensive and up‐to‐date review is essential for organizing and synthesizing the extant literature to explicate an agenda for future research. The purpose of this literature review is threefold: first, to critically review the strategic decision‐making process literature to highlight the underlying themes, issues, tensions and debates in the field; second, to identify the opportunities for future theory development; and third, to state the methodological implications arising from this review.