Evidence-Based Strategic Decision Making Modeling in the Insurance Industry based on Grounded Theory.

Document Type : Research Paper

Authors

1 Associate Prof., Faculty of Management and Accounting, Allameh Tabataba’i University, , Iran

2 Department of Business Management, Faculty of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran.

Abstract

Objective
The inability to implement environmentally oriented decision-making approaches that improve reliability in decision-making is one of the major problems in organizations, especially the private sector. However, the formulation of an appropriate model of strategic decision-making within insurance companies can modify the movement trajectory in insurance companies. Therefore, the present study seeks to explore the evidence-based strategic decision-making model embedded in the behavior of senior executives in the insurance industry through analyzing the discourses among insurance industry experts and strategic decision-makers.
 
Methodology
The present research is fundamental in terms of purpose and is considered exploratory in nature. The statistical population of this research includes experts in organizations as well as policy making. Purposeful and snowball sampling were used to identify the experts. 20 experts were selected with regard to data adequacy. In-depth semi-structured interviews alongside library studies were used to collect the data.
 
Findings
The evidence-based strategic decision making model was designed using the grounded theory and the causal conditions of environmental uncertainty and strategic gap were identified. The main phenomena of discourse, seeking trust and strategic gap were identified with regard to the intervening conditions, moral constraints and personality traits of managers. The dominant context, organizational culture and organization's facilities and resources and the main evidence-based decision making strategy were identified and confirmed. The main consequences of this model are scientificism, coalitionism, strategic orientation and stakeholder engagement.
Conclusion
The quality of organizational decisions can be improved through regular application of six methods of eliminating bias. By expanding the amount of decision processes used in organizations, we can use our knowledge and agility in a world of uncertainty. Evidence-based decision-making is a process of systematic discernment, meticulous and rigorous evaluation and subsequently dissemination of the research findings to influence the management decisions; and it can continue to influence its management through change in management standards which can lead to positive effects on decision makings. Environmental uncertainty within the organizations which might be due to the lack of transparency of organizational goals and the mismatch between strategic decisions and organizational values ​​and the ambiguity of resource orientation often occurs as a result of lack of strategic planning in the organization. On the other hand, uncertainty beyond the organization and within the insurance market occurs due to high environmental complexity, the intensity of competition between insurance companies to attract portfolios and increase market share, the insecurity of insurance market information, changes in insurers' needs and non-technical breakdowns by competing companies and unethical practices by insurance companies aiming to attract portfolio and increase their market and the strategic gaps leading to the formation of the main phenomenon of the original model that is the trust-seeking discourse (including the need to make stable and clear decisions), gap analysis and identification of strategic issues. These are considered as an introduction to evidence-based strategic decision making.

Keywords

Main Subjects

References

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Journal of Business Management
Volume 11, Issue 4
2019
Pages 782-803

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