A multi-level model of global decision-making: developing a composite global frame-of-reference

Abstract

As organizations globalize their operations, managers are finding that making decisions in a global context is more complex. This research develops a multi-level model that examines the influence of group, organizational and society points of reference on managerial decision-making. Reference Point Theory (RPT) is employed as a foundation for a multi-level global decision-making process. The basic premise of RPT is that global managers need to match global environmental conditions with certain reference points. Yet the more dynamic the environment, the greater the risk associated with misinterpreting the appropriate reference points for making global decisions. © 2010 Elsevier Inc.