Holistic Decision Making and Long Term Firm Performance

We propose a holistic managerial decision making framework that encourages managers to take into consideration the three impact dimensions of any decision involving interactions with stakeholders, internal or external. The impact dimensions are: a) effectiveness; b) operative learning, and c) relational learning. We submit that an organization whose managers systematically take these three impact dimensions into consideration in their decision making is more likely to achieve superior long-term performance. We discuss the implications of our framework for researchers, practitioners and educators.