The impact of strategic decision-making process on firm performance

The current dissertation evaluates whether and in what extend tree dimensions of strategic decision-making process (rationality, intuition, political behavior) impact both financial and non-financial firm performances. According to the already existing literature for this specific topic, these three dimensions have been examined individually in terms of their impact, at the same time research have been conducted mainly in geographical areas quite distant from Greece. Therefore, since these gaps have been already observed, this study come to fill them by evaluating these dimensions simultaneously and for companies operating in Greece. The data was collected by distributing a questionnaire, which include already established scales for each and every dependent (financial and non-financial firm performance), independent (rationality, intuition, political behavior), and control variables (firm size, years of operations, ownership structure), to 200 companies, 25 of which responded positively with 58 participations. Then the statistical analyses include ordered probit and robustness regression analysis that evaluate the relationship between dependent and independent variables while controlling by the three control ones. The analyses indicates that rationality shows a robust positive coefficient for non-financial firm performance and ordered probit positive coefficient for financial. Political behavior shows neither positive nor negative affection for both firm performances and finally intuition indicates an ordered probit positive coefficient for non-financial firm performances. Given this results, the study provides remarkable and important conclusions and suggestion to the decision-makers and senior executives, regarding the optima approach of strategic decision-making process.