Faithin Omaha eBook Collection

Download or read book Essays on Strategic Decision Making Under Uncertainty written by Shaohua Lu and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a study of firm strategic decision making under uncertainty combining empirical examination with formal models. The resource-based theory (RBV) has established a causal relationship between competitive advantage and superior resources. Yet, future payoffs for deploying resources and implementing a certain product market strategy depend upon both a firm's own resources and its competitors' resources. The fundamental "competitive imperfection" assumption of RBV in the presence of strategic interactions indicates a prominent role of decision-makers, or "strategists", in modifying the relationship between competitive advantage and superior resources. Disentangling mechanisms underlining firm decision making, this study formally demonstrates varying dynamics among firms of making strategic decisions in a variety of scenarios of uncertainty (imperfect information) and strategic interactions. The U.S. electric utility companies' adoption of solar technology is used as a novel empirical setting for testing how firms respond to competitors' strategic decisions under environmental uncertainty. The empirical examination provides support for predictions derived from the formal models. This study revives focus on the "strategist" in explaining performance differences, and helps determine more precise boundaries for theories of strategic decision making.