Original 4

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Decision magnitude of impact and strategic decision-making process output 640

The mediating impact of rationality of the decision-making process

Received January 2008
Accepted January 2008

Mahmood Nooraie
School of Management, Islamic Azad University of Abhar, Tehran, Iran
Abstract
Purpose – The purpose of this paper is to identify the role of the rationality of the strategic decision-making process between decision magnitude of impact and the quality of the decision process output. Design/methodology/approach – From analysis of alternative research approaches, a field survey seems to be the most appropriate methodological choice. This is a field study of real strategic decision-making process rather than an artificial setting. The questionnaire consists of items measuring the variables of primary interest; namely the independent, mediator, and dependent variables. The study was conducted in Pinang, Malaysia, involving small, medium, and large-sized private manufacturing firms. To test and eliminate ambiguous or biased items and to improve the format, both for ease of understanding and to facilitate data analysis, a pilot study was conducted by computing Cronbach’s reliability alpha.
Findings – The results of regression analysis indicate that the decision magnitude of impact is significantly associated with the level of rationality in the decision-making process. The results of hierarchical regression analyses indicate that the extent of rationality in the decision-making process is able to significantly change the total variations in the decision- making quality explained by magnitude of impact.
Research limitations/implications – The complex nature of strategic decision-making process as a research topic places limitations on this study, particularly in the area of sample selection and data availability and collection. The major sample

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