The influence of context on the strategic decision-making process: a review of the literature

This paper critically reviews the strategic decision-making process literature, with a specific focus on the effects of context. Context refers to the top management team, strategic decision-specific characteristics, the external environment and firm characteristics. This literature review also develops an illustrative framework that incorporates these four different categories of contextual variables that influence the strategic decision-making process. As a result of the variety and pervasiveness of contextual variables featured within the literature, a comprehensive and up-to-date review is essential for organizing and synthesizing the extant literature to explicate an agenda for future research. The purpose of this literature review is threefold: first, to critically review the strategic decision-making process literature to highlight the underlying themes, issues, tensions and debates in the field; second, to identify the opportunities for future theory development; and third, to state the methodological implications arising from this review.