Determinants of StrategicLevel Decision-Making Process in the Banks in UAE

Abstract

The Strategic level decision-making process significantly influences organizational performance, particularly in the highly regulated and competitive sector such as  banking . The study is aimed at to understanding the key determinants shaping strategic-level decision-making process in the banks operating in United Arab Emirates (UAE). For this purpose the research design that the author used was a qualitative research design, this study integrates an extensive review of  literature which is recent with empirical evidence gathered from 22 in-depth interviews conducted with senior and middle-level managers across 12 conventional and Islamic banks in UAE. The findings present that strategic level decision-making process in banks in UAE is influenced by factors which are   economic, organizational, social,personal, and psychological as the determinants. Among these, organizational factors such as leadership style, organizational structure, and availability of resources and economic considerations such as strategic objectives and competitive pressures emerge as the most dominant. Managerial experience, competence, and intuition further shape decision outcomes in conditions where there are information constraints and time pressure. Based on the findings the study develops an integrative framework that benchmarks the strategic level decision-making process and its key influencing factors in  banking context. This study contributes to strategic management literature and provides practical insights for improving decision effectiveness in financial institutions.To achieve this objective, the study employs inductive–deductive reasoning, a focused literature review, and 22 in-depth interviews (IDI) with managers across different hierarchical levels in 12 UAE banks. By capturing first-hand managerial perspectives in these banks, the study provides nuanced insights into how strategic decisions are made in practice. The findings aim to contribute to strategic management and process benchmarking literature while offering actionable implications for banking practitioners.