Strategic decision-making process (SDMP) in times of crisis: Evidence from Greek banks

Eleni Aravopoulou; Mohamed Branine; Merlin Stone; Fotios V. Mitsakis; Geoff Paul

Article Details

Research Article Volume 12 Issue 4

Strategic decision-making process (SDMP) in times of crisis: Evidence from Greek banks

Eleni Aravopoulou • Mohamed Branine • Merlin Stone • Fotios V. Mitsakis • Geoff Paul

Published: 04 Jul 2018 Issue:Volume 12 Issue 4 Jul 2018 Author details below

Eleni Aravopoulou

School of Management and Social Sciences, St Mary's University

Mohamed Branine

Dundee Business School, Abertay University

Merlin Stone

School of Management and Social Sciences, St Mary's University

Fotios V. Mitsakis

Nottingham Business School, Nottingham Trent University

Geoff Paul

School of Management and Social Sciences, St Mary's University

Strategic decision-making process (SDMP) Rationality Intuition Political behaviour Organisational change Acquisitions

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Abstract

Research summary

This paper investigates the strategic decision-making process (SDMP) of Greek banks’ top management in the context of profound organisational changes introduced in 2012 as a result of the 2008 global financial crisis. It focuses on the impact of three key dimensions of the SDMP, namely, rationality, intuition and political behaviour, relating to four changes introduced, namely, acquisitions, branch network rationalisation, integration of information technology (IT) and downsizing of operations and personnel. A questionnaire-based survey was conducted, targeting Greek banks’ top management. Out of 140 questionnaires, 78 were returned, a 55.71% response rate. Data was analysed using structural equation modelling. Research findings identify rationality as a key dimension of SDMP for all organisational changes, as there was high focus on identifying and analysing all required information, use of external financial advisors, and reliance on multiple methods of information gathering. Decision-makers used their intuition in the form of past experience when making acquisition decisions, whilst their personal judgment and “inner voice” were neglected.

Finally, political behaviour was not displayed during this process, as decision-makers were open with each other about their interests and preferences, and there was no bargaining, negotiation or use of power amongst them. One limitation was that of not considering all the factors that might help measure SDMP characteristics. Also, this study was conducted in a period of political and financial uncertainty for Greek banks, as well as for the Greek economy in general, so findings may not be generalizable to other industries and countries. Conducting interviews could have offered deeper insight as well. This study’s value lies in the fact that the organisational changes were determined by Greece’s leaders, and thus the Greek banks had to operate under a dynamic, inflexible and non-autonomous environment. Also, this study extends prior SDMP research by examining the impact of the three key SDMP dimensions on four types of organisational change.

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Article History

Published 04 Jul 2018

How to Cite

Aravopoulou, E., Branine, M., Stone, M., Mitsakis, F. V., & Paul, G.. (2018). Strategic decision-making process (SDMP) in times of crisis: Evidence from Greek banks. Journal of Business and Retail Management Research, Volume 12 Issue 4.

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APA

Aravopoulou, E., Branine, M., Stone, M., Mitsakis, F. V., & Paul, G.. (2018). Strategic decision-making process (SDMP) in times of crisis: Evidence from Greek banks. Journal of Business and Retail Management Research, Volume 12 Issue 4.

MLA

Aravopoulou, Eleni, et al.. "Strategic decision-making process (SDMP) in times of crisis: Evidence from Greek banks." Journal of Business and Retail Management Research, Volume 12 Issue 4, 2018.

Chicago

Eleni Aravopoulou, Mohamed Branine, Merlin Stone, Fotios V. Mitsakis, and Geoff Paul. "Strategic decision-making process (SDMP) in times of crisis: Evidence from Greek banks." Journal of Business and Retail Management Research Volume 12 Issue 4 (04 Jul 2018).

Harvard

Aravopoulou, E., Branine, M., Stone, M., Mitsakis, F. V., & Paul, G. (2018) Strategic decision-making process (SDMP) in times of crisis: Evidence from Greek banks. Journal of Business and Retail Management Research, Volume 12 Issue 4