How Does Bounded Rationality Affect Strategic Decision Making

question 53

Multiple Choice

How does bounded rationality affect strategic decision making?

• A)​Managers pursue their interests and make choices within the formal and informal constraints in a given institutional framework.
• B)​Relying on informal connections as a strategy is only relevant for firms in emerging economies.
• C) ​Only with prior experience can managers of multinationals make rational strategy decisions.
• D) ​Bounded rationality has no effect on decision making.

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Definitions:

Consuming

The act of using up resources or commodities, or engaging with media, content, or experiences.

Social Construction

The theory that certain aspects of the social world are shaped by social processes and interactions.

Active Interpretation

The process by which individuals actively engage with and make sense of media content, rather than passively consuming it.

Application Analysis

The process of examining and evaluating the features, functionality, and performance of software applications.