Strategic Decision Making: The Influence Of CEO Experience And Use Of Tacit Knowledge

Managers are expected to use rationality in their strategic decision processes. However, everyone develops ways to engage cognitive economy to lessen the task of making decisions. This study examined one such process in the CEOs' strategic decision-making process; namely, the relationship between the use of tacit knowledge and level of experience. Responses from 110 CEOs to a survey revealed a positive relationship between the CEOs' use of tacit knowledge and industry experience. Other types of experiences proved to be inconsequential. Furthermore, intuition was found to moderate the relationship between industry experience and the use of tacit knowledge. These findings are congruent with, and extend the knowledge of, strategic decision making.