Rationality in Strategic Decision Processes.

Two research efforts attempted to assess the relationship between the rationality of strategic decision processes, environmental stability, and organization performance. Field studies used written stimulus materials to investigate the impact of one measure of rationality in both a stable and an unstable industry. The initial study (Fredrickson and Mitchell, 1982) found a consistently negative relationship between the construct and performance in an unstable industry, while an extension in a stable industry established a positive relation between performance and the same measure of rationality.