Insights into Decision-Making in High-Tech Firms
PhD research by Maike Schmeitz reveals crucial insights into decision-making processes in high-tech companies, offering practical advice for entrepreneurs and managers
Two Approaches
In her paper "Lost in translation? A multi-level perspective on decision-making logics in high-tech firms," Maike Schmeiz examines the difference between causation and effectuation in decision-making. Managers use causation: setting goals, gathering resources, focusing on competition, and maximizing profits. Entrepreneurs use effectuation: starting with their own resources, developing goals, viewing competitors as co-creators, and limiting losses.
Multiple Levels
Schmeitz's research extends these concepts to team and organizational levels. Teams can switch between causation and effectuation, leading to adaptive decision-making. At the organizational level, effectuation can be integrated when employees follow the behavior of their leaders within a culture of cohesion and low hierarchy.
Mergers and Acquisitions
In mergers and acquisitions, aligning decision-making styles is essential for successful knowledge transfer and maintaining the autonomy of the acquired company. These insights help companies with strategic growth.
Practical Value
Schmeitz's research offers practical advice for better decision-making and innovation. Teams benefit from a mix of causation and effectuation, while employees can learn effectuation from leaders. Companies applying these insights are better prepared for future challenges and opportunities.
Maike Schmeitz defended her thesis on 3 July. Title of PhD thesis: "." Supervisors: Isabelle Reymen, Myriam Cloodt and Annelies Bobelyn