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APPENDIX

Appendix I: Summary of comprehesiveness-performance research

 

 

Moderating factors examined

 

 

Unit of analysis

 

 

 

 

 

 

 

 

 

Environment-specific

Firm-specific

Decision-specific

Decision-maker specific

Firm

Individual

Decision

 

 

 

 

 

 

 

 

Miller (2008)

X

-

-

-

X

-

-

Elbanna and Child (2007a)

X

X

X

X

-

-

X

Forbes (2005)1

-

-

-

-

-

X

-

Atuahene-Gima and Li (2004)

X

-

-

-

X

-

-

Walters and Bhuian (2004)

X

-

-

-

X

-

-

Hough and White (2003)

X

-

-

-

-

-

X

Morgan and Strong (2003)2

-

-

-

-

X

-

-

Covin et al. (2001)

X

-

-

-

X

-

-

Flynn and Forman (2001)

-

X

X

-

X

-

-

Simons et al. (1999)3

-

-

-

-

X

-

-

Nutt (1998)

-

-

-

-

-

-

X

Papadakis (1998)

-

-

-

-

X

-

 

Goll and Rasheed (1997)

X

-

-

-

X

-

-

Dean and Sharfman (1996)

X

-

-

-

-

-

X

Priem et al. (1995)

X

-

-

-

X

-

-

Priem (1994)

-

-

-

X

X

-

-

Glick et al. (1993)

X

-

-

-

X

-

-

Fredrickson and Iaquinto (1989)

X

-

-

-

X

-

-

Bourgeois and Eisenhardt(1988)

X

-

-

-

X

-

-

Smith et al. (1988)

-

X

-

-

X

-

-

Fredrickson (1984)

X

-

-

-

X

-

-

Fredrickson and Mitchell (1984)

X

-

-

-

X

-

-

 

 

 

 

 

 

 

 

 

14

3

2

2

17

1

4

1Forbes (2005) examined the effects of comprehensive decision making on entrepreneurial self-efficacy in internet ventures. While the relevant environment can be considered dynamic according the definition of Bourgeois and Eisenhardt (1988), the moderating role of the environment on the comprehensiveness-performance relationship was not directly analyzed.

2Morgan and Strong (2003) examined the effects of comprehensive decision making on performance in high-tech industries. While the relevant environment can be considered dynamic according the definition of Bourgeois and Eisenhardt (1988), the moderating role of the environment on the comprehensiveness-performance relationship was not directly analyzed.

3In their study on the impact of diversity and debate on comprehensiveness and performance, Simons et al. (1999) looked at comprehensiveness primarily as a mediator on the impact TMT diversity and debate have on performance.

Appendix II. List of measurement items

Variable

Items

Scale

Source

Alpha

Comprehensiveness

1. Managers held regular meetings with a pre-specified agenda to discuss

(7-point Likert-type scale)

the strategic decision.

 

2.

Managers made systematic use of external sources (e.g., industry reports,

 

analyst reports, journals) in making this strategic decision.

 

3.

Managers relied on historical data review and past deal statistics when

 

making the strategic decision.

 

4.

Managers involved in the decision-making process used quantitative

 

analytic techniques (e.g., NPV-IRR methods, detailed cost analysis,

 

scenario analysis) in making the strategic decision.

 

5.

Alternative options were considered and analyzed before going with

 

the strategic decision.

 

6.

Managers involved in the decision-making process considered the actual

 

probability of failure for each decision option.

 

7.

Standardized strategic or financial criteria (e.g., acquirer/target/ partner

 

similarity, price range, financial indicators and target rates) were used for

 

eliminating alternative options to the strategic decision.

1 = to no extent, 7 = to a very great extent

Dean et al., 1993;

0.72

Fredrickson, 1984; Miller et al., 1998; Papadakis, 1998; Talaulicar et al., 2005

Problem-solving dissent 1. There was disagreement between managers during the decision-making (7-point Likert-type scale) process about whether the strategic decision was the best way to ensure the

firm’s long term profitability.

2. There was disagreement between managers during the decision-making process about whether the selected course of action was the best one.

1 = to no extent, 7 = to a very great extent

Ideas drawn from:

0.83

Butler et al., 1991; Eisenhardt and Bourgeois, 1988; Papadakis et al., 1998

Deal Performance

Please, assess the strategic decision made by the company on

1 = very unsuccessful,

7 Ideas drawn from:

0.85

(7-point Likert-type scale)

each of the following criteria (up to now):

= very successful

Khatri and Ng, 2000;

 

 

1.

Revenue objectives

 

Elbanna et al., 2007b;

 

 

2.

Budget objectives

 

Walter et al., 2007

 

 

3.

Efficiency objectives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

75

Appendix III: Results of confirmatory factor analysis

 

 

Item

Factor

Comprehensiveness

Problem-solving dissent

Extensiveness of scheduled meetings

0.63**

-0.10

Systematic use of external resources

0.57**

0.01

Review of historical data and deal statistics

0.41**

-0.17

Use of quantative analytique techniques

0.62**

0.17

Consideration of alternative options

0.68**

0.13

Use of standard strategic and financial criteria

0.77**

-0.01

Consideration of outcome probabilities

0.59**

-0.00

Agreement on objectives sought

0.05

0.93**

Agreement on selected course of action

-0.03

0.93**

Eigenvalue

2.10

1.40

Percentage of variance explained

0.55

0.36

Cumulative percentage of variance explained

0.55

0.91

* p < 0.10; ** p < 0.05; *** p < 0.001

 

 

76

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