Managerial Decision Making

To make this book self-contained, this chapter introduces the basics of systems science necessary for the reader to understand all the conclusions developed in the rest of the book. This chapter is organized as follows: Section 2.1 introduces the reader to the concept of systems and its related history. Section 2.2 studies the basics of the systemic yoyo model and where it is from. Section 2.3 looks at some elementary properties of the yoyo model.

This chapter, which is based on (Forrest et al. 2017), investigates market entry of small firms and market characteristics that motivate such firms to penetrate markets. By emphasizing firm scales, this chapter provides a dynamic picture of entrant-incumbent relations and conditions on how, when, and where small entrants will penetrate markets. Conceptually, this chapter generalizes and unifies both resource partitioning and mutual forbearance theories into one with much increased utility for applications. It is shown that (1) penetration into markets is possible only when smaller entrants solidify large incumbents’ positions while target niches large incumbent firms cannot occupy, (2) market evolution can be measured by either integration or modularity of the large incumbents, etc.

This chapter, based on Forrest and Tallapally’s work (2018), presents a main result on how for any company its base of loyal customers diminishes with increase in the number of competing firms. On top of this result, the rest of the chapter provides deductive explanations for:

This chapter, mainly based on Forrest and Nightingale (2017), establishes a specific set of procedural steps for any firm to transit smoothly and successfully into the era of fast strategic changes while the firm’s once sustainable competitive advantages have become transient. To accomplish this goal, this chapter bases its reasoning on the established result of when new competitions will naturally appear within an established market and why competitions within any business organization always exist inevitably. By combining with published conclusions derived on anecdotal analyses and inductive reasoning, this chapter advances the systemic reasons for why a list of time-honored steps will practically work so that firms can successfully surf through waves of transient competitive advantages with improving performance.

The aim of this chapter, which is mainly based on Forrest et al. (2018), is a comprehensive analysis of the 16 strategy-related factors, which have been empirically classified in the literature, to identify the ones that symbolize the main determinants of a firm’s innovativeness versus the secondary ones. The chapter constructs a general systemic theory of the importance of having clearly stated missions for a firm, along with long-term, unwavering ambition. The primary theory utilized in the chapter is based on the systemic yoyo model. This study further categorizes the 16 variables, pertaining to the overall strategic orientation, growth, and operational strategies, as a part of the primary or secondary factors that influence the innovativeness of a firm. Finally, pragmatic and efficient recommendations for managerial decision-making are formulated, which highlight the real-life applications and contribution of this scholarly research.

Utilizing a system of holistic thinking, this chapter, which is mainly based on (Forrest et al. 2018), identifies the primary factors that contribute to the innovativeness of a manufacturing firm and distinguishes the secondary factors which follow the primary ones. These primary factors are discerned out of the 20 plus internal factors that are recognized in the empirical literature. The impact of the general characteristics of firms’ culture on innovation in manufacturing is studied, based on general organizational culture. This chapter utilizes a cost-benefit analysis approach to identify the impact that firms’ general attributes have on innovation. Analyzing the systemic modelling of firms, the impact of firms’ structure on innovation is recognized. In particular, the impact of leadership at the firm level on innovation is demonstrated. Finally, pragmatic recommendations for effective managerial decision-making are presented.

Being able to obtain a self-sustained momentum of economic growth has been the dream of many developing countries in the past 100 plus years. However, the mainstream economics has not been able to figure out preciously what a nation needs to do to detonate its desired economic takeoff. Based on the recent research development in the area of development economics, this chapter presents a detailed procedure on how to engineer the occurrence and evolution of a self-sustained momentum of economic growth for an impoverished agrarian nation. This procedure is developed on top of two theoretical results established earlier. So, other than its theoretical value to economics, what is presented in this chapter is expected to be able to bring tangible economic benefits for developing nations in the years to come.

Based on the exponentially growing literature in recent years on international trade and firm performance, this chapter presents a general theory for this area based on systemic logic and game theory. Based on two theorems on the dynamics of the domestic market established in the previous chapters, we pay attention to results on exports to either less developed or advanced markets. Then, formulated is a general theory regarding international trade (exports and imports) that includes selected indices of firm performance (productivity, profitability, wages, and survival). In addition to confirming empirical findings in the literature, this chapter also delineates some suggestions for future research. The systemic thinking this chapter introduces into the study of international trades is expected to provide a much needed framework for public debates and policy decision-making.

This chapter presents game theoretical models useful for studying the interactive, competitive plays and relevant decision-making regarding the dumping and antidumping actions between an importing nation and an exporting nation. The latter considers potentially dumping its product in the domestic market of the former, while the former attempts to protect its market and its domestic firms from exiting the market by implementing necessary trading strategies. Understanding how to deal with potential intruders, when to take actions, and what appropriate actions to take under different sets of conditions are very crucial both theoretically and practically, because countermeasures may or may not be effective depending on what conditions one is constrained with. The theoretical framework, presented in this chapter, will provide a better understanding of antidumping policies and their implications for regulators, policymakers, managers, and academicians, while the results presented herein can be readily employed in real-life scenarios, making the results presented in this chapter practically useful for understanding how international trade conflicts can be handled effectively.