STRATEGIC DECISION-PROCESSES IN MATRIX ORGANIZATIONS

The matrix structure was developed to facilitate adaptiveness for organizations operation in uncertain environments. In the management literature one area of controversy is the appropriate approach to strategic decision-making for organizations operating in this type of environment. This paper reports the results of a study examining the relative effectiveness of the rational-analytic and incremental approaches to strategic decision-making. Analyses of data from a sample of 27 matrix organizations indicate that strategic decision processes which are high in comprehensiveness (rational-analytic) produce more favorable strategic results than processes which are more incremental in nature. Implication of these findings to theory development and management are discussed.