The thesis describes an exploration and analysis of the nature of strategic decision-making processes (SDMP) in Libyan Commercial Banks. The role of 'rationality‘, 'intuition‘ and 'political behaviour‘ in five strategic decisions of very high importance were explored in this study, by conducting sixteen face-to-face interviews with senior decision-makers, all closely involved with the decisions, from three commercial banks. Other observations of SDM behaviour and documentary information were also recorded. Field work enabled analysis and interpretation of the perceived influence of `decision importance` on the process, as well as an exploration of the three key influencing factors on the SDMP.\ud
Consistent findings for the nature of the process were found for all five decisions. Rationality was a key factor of the process. Considerable efforts were made by key staff to gather and analyse information, discuss issues, as well as engage consultants and seek advice from Commercial Banks outside Libya. This finding appeared to reflect the high importance of the decisions coupled with the inexperience of the senior management group. This lead to some anxiety and, as a consequence, risk-reducing activities. The SDs were based on analysis, advice and past experience, rather than on personal judgement. None of the banks exhibited strong political or intuitive behaviour in their DMPs. Instead there was constructive consultation in making decisions. DM was driven by clear decision motives, the importance attached to the decision, and a committed effort to minimize uncertainty and risk. Other factors considered were that the decisions were financially rewarding, delivered customer satisfaction and employee welfare, as well as being socially acceptable.\ud
Analysis of the data has enabled the development of a model which is consistent with an interpretation that places 'anxiety‘ in the senior management group as the dominant factor driving the adoption of a rational approach to DM, with low intuitive or political activity. Anxiety is derived from the crucial importance of the decision, the relative inexperience of the senior management group, and some policy pressure from the Central Bank of Libya to change and modernize banking methods. The availability of resources and time to the senior group, in a generally munificent environment, also made it feasible for senior staff to adopt rational methods of analysis for DM, and as a consequence reduce their degree of anxiety