Business strategic decision making: the role and influence of directors

Abstract

Drawing on interviews with HR, finance and marketing directors, this article examines the locus of strategic decision making in organisations, who makes those decisions and the characteristics and competencies of strategic decision makers. The article finds that strategic formulation takes place in the Chief Executive Officer Group (CEOG). Board of director membership is unnecessary to be influential on the strategic decisions made in organisations. The article also concludes that even if directors are not members of the main board of directors and/or of the CEOG, there exists in organisations informal channels through which they can exert influence in the formulation of strategy. A third conclusion is that strategic decision makers are business‐focused general managers rather than advocates of their management speciality. The article concludes by considering the implications of its findings for management education and for the research agenda and management academics.