| This research investigates the role of adaptive decision making in the development of strategy in small and medium-sized manufacturing companies. In a survey of 3,965 SME manufacturing companies in Michigan, Indiana, and Ohio a total of 547 valid responses were obtained (13.74% response rate). In a research framework that relates strategic contextual factors consisting of external (industry competitive forces) and internal (internal resources and capabilities) factors to strategy making constructs (environmental scanning, manufacturing strategy, and adaptive decision making) and performance we identified several significant relationships. Two new constructs are proposed, explored, confirmed, and tested using the structural model including a multi-dimensional performance construct and adaptive decision making. Adaptive decision making is defined as a "conscious or unconscious tendency to place a high priority on adaptation to ones environment throughout the decision making process". Another important contribution of this research includes identifying antecedents to environmental scanning activity and the linkages between environmental scanning, adaptive decision making, manufacturing strategy, and performance. |
