Consequences of centralized strategic decision making in high technology firms

A model which focuses on the consequences of centralized strategic decision making in high-tech firms has been developed and tested. The model links centralization to other organizational attributes. This model is tested using a sample of firms in the computer hardware manufacturing and aerospace industries. It is proposed that centralized strategic decision making will result in a closed system perspective, internal political struggles, and poor firm performance. Generalizations of the model to nonhigh-tech organizations and the implications for management are discussed