Individual decision-making by top executives as a valuable resource for strategic management – A resource-based view and dynamic capability approach

Strategy is highly important for organisational success and the achievement of competitive advantage. Strategy is dynamic and it depends on accurate individual decision-making from medium and high-level managers and executives. Since managers always formulate strategy, its formulation depends mostly on their assertive decisions. Making good decisions is a complex task, even more in today’s business world where a large quantity of information and a dynamic environment forces people to decide without having complete information. As Shafir, Simonson, & Tversky (1993) point out, "the making of decisions, both big and small, is often difficult because of uncertainty and conflict". In this paper the author will explain a basic theoretical framework about top manager's individual decision-making, showing how complex the process of making high-impact decisions is; then, he will compare this theory with one of the most important streams in strategic management, the Resource-Based View (RBV) of the firm. Finally, within the context of individual decision-making and the RBV stream, the author will show how individual decision makers in top management positions constitute a valuable, rare, non-imitable and non-substitutable resource that provides sustained competitive advantage.

Patterns of dynamic changes in supply management – a triadic approach

Research has followed a network perspective of supply management from as early as the publication of Krajlic matrix. This portfolio approach is still static. Recently the triad is interpreted as the smallest unit of a network through which dynamics can be studied. Analyzing triads seems to be a promising way through which a deeper insight into the dynamics of supplier development can be gained. Using case study approach the paper investigates this dynamics with a special emphasis on coopetitive behavior. Analyzing a triadic sourcing setting operating in a make to engineer (and order) environment we show the importance of governance.