Annotated Bibliography on Organizational Decision Making

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Annotated Bibliography
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Annotated Bibliography
Introduction
Some contextual factors like organizational structure and governance, risk management,
external and internal environmental forces, organization and business practices and diversity are
critical in ensuring effective organizational decision making. First, organizations should evaluate
the forms of risk associated with specific strategies to identify whether they can adopt them.
Second, firms should consistently conduct environmental analysis using such models as SWOT
to enable them to identify and take advantage of their opportunities and make relevant attempts
to improve on its weaknesses and handle the threats to which they may be exposed. For proper
governance, the managers should be aware of their roles in the organizational structure and be
able to make relevant strategic decisions. Besides, firms should observe diversity such as culture,
gender, and ethnicity to promote inclusive decision making and avoid resistance from different
stakeholders. Lastly, different external and internal practices in which firms involve, enable them
to implement their strategic decisions successfully.
Aguilera, R. V., Judge, W. Q., & Terjesen, S. A. (2018). Corporate governance deviance.
Academy of Management Review, 43(1), 87-109. Doi: 10.5465/amr.2014.0394
The primary contextual factor analyzed in this journal is corporate governance.
Specifically, the authors used the postulates of institutional theory coupled with corporate
governance and entrepreneurship literature to advance a middle range model of antecedents of
corporate governance deviance that considers both institutional context and organizational level
agency. Ideally, Aguilera, Judge & Terjesen (2018), sought to answer three questions: why,
when and how an organization assumes governance practices that deviate from the dominant

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governance logic. Governance is the process whereby managers establish and monitor the
implementation of policies in the organization. The research found that as an organization’s
governance discretion increases, there is a high tendency for the managers to adopt
underconforming or overconforming governance practices that deviate from the existing
practices and norms. However, the research has not specifically evaluated the possible causes of
nonconformance with the laid down principles and governance norms in an organization.
Besides, the authors unearthed that adopting a deviant corporate governance practice solely
depends on an enterprise's corporate governance capacity and the regulatory governance setting.
This research implies that managers should closely monitor the organization's corporate
governance capacity and the governance regulatory environment, before advancing a new form
of corporate governance deviance. Moreover, the adoption of deviant corporate governance
approaches should be done with regards to an organizations under-or over conformity with the
entrepreneurial identity motives and the dominant national logic. This study extends our
knowledge of institutional governance perspectives, and the factors considered by institutional
managers when adopting different corporate governance perspectives.
Buckley, P. J., Chen, L., Clegg, L. J., & Voss, H. (2018). Risk Propensity in the Foreign Direct
Investment Location Decision of Emerging Multinationals. Journal of International
Business Studies, 49(2), 153-171. Doi: 10.1057/s41267-017-0126-4
The important contextual factor evaluated in this research is the risk in organizations.
Specifically Buckley, Chen, Clegg & Voss (2018), have employed quasi-experimental data and
the provisions of the behavioral decision model to analyze the propensity of multinational
companies to develop the tolerance for their host countries' institutional risks. Two types of risk-