research paper on management organization

A strategic management process: the role of decision-making style and organisational performance

Journal of Work-Applied Management

ISSN : 2205-2062

Article publication date: 16 February 2023

Issue publication date: 24 April 2023

The purpose of this paper is to present a conceptual framework for integrating strategic thinking factors, organisational performance and the decision-making process.

Design/methodology/approach

The methodology involves a synthesis of literature and proposes a framework that explores the relationship between strategic thinking enabling factors, organisational performance and the moderating effect of decision-making styles.

The framework includes strategic thinking enabling factors (systems perspective, focused intent, intelligent opportunism, thinking in time and hypothesis-driven analysis), organisational performance and the moderating effect of decision-making styles (intuitive and rational).

Research limitations/implications

This research results in a conceptual model only; it remains to be tested in actual practice. The expanded conceptual framework can serve as a basis for future empirical research and provide insights to practitioners into how to strengthen policy development in a strategic planning process.

Originality/value

A paradigm shift in the literature proves that strategic management and decision-making styles are vital in determining organisational performance. This paper highlights the importance of decision-making styles and develops a framework for strategic management by analysing the existing strategic management literature.

• Strategic management
• Intuitive decision-making
• Rational decision-making
• Strategic thinking process
• Organisational performance

Sinnaiah, T. , Adam, S. and Mahadi, B. (2023), "A strategic management process: the role of decision-making style and organisational performance", Journal of Work-Applied Management , Vol. 15 No. 1, pp. 37-50. https://doi.org/10.1108/JWAM-10-2022-0074

Emerald Publishing Limited

Copyright © 2023, Tamilarasu Sinnaiah, Sabrinah Adam and Batiah Mahadi

Published in Journal of Work-Applied Management . Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

1. Introduction

Managers are appointed to achieve the organisation's objectives and goals. As these objectives gradually increase with competition, managers must become strategic thinkers with excellent decision-making skills. The strategy towards the organisational outcome highlighted in this section has been widely debated among academic scholars and practitioners. Organisational strategies are essential in sustaining an organisation's competitive advantage to face a complex and uncertain future.

Effective strategic management frameworks enable managers to focus on the complex issues that must be prioritised to hasten decision-making processes ( Dlamini et al. , 2020 ). Whilst enabling managers important to make the decisions needed to direct the organisational effort towards overcoming specific issues ( Wang et al. , 2021 ). The organisation's effectiveness in addressing critical issues with solutions that best fit the current environmental factors will ensure the vitality and image of the organisation. Strategic management is pertinent to manage the organisation in a continuous, systematic manner.

The first segment of strategic management is the effective action programs chosen to reach these goals and objectives.

The second segment is the resource allocation pattern that relates the organisation to its environment.

Moreover, strategic management is defined as translating the thinking process into an action plan that benefits the organisation to sustain its competitive advantages. Strategy also can be categorised as strategic thinking and strategic planning. Strategy is also the commitment of the top-level management to attaining outcomes aligned with the organisation's strategic objectives. Strategy can be realised when there is consistent outcomes or patterns over the years. Therefore, strategy is planning for the future or determining patterns based on consistent outcomes. Organisations must develop plans and also evolve patterns derived from previous organisational outcomes. These phases can be explained as intended strategy and realised strategy.

The effectiveness of the strategies employed can indicate the organisation's performance in achieving its objectives and goals. Organisations need to measure the outcome of the strategies employed by having measurable objectives that will enhance the employees' commitment towards achieving the goals. Conversely, organisational learning and financial measures such as organisational profitability can also benchmark organisational performance. The responsiveness of organisational performance has a direct relationship and is influenced by management efforts to emphasise leadership within the organisational structure. This is done by observing the support and strategies utilised by managers to achieve the objectives and goals. This paper aims to enhance an understanding of strategic management processes involving decision-making styles towards organisational performance. First, this paper highlights strategic management's operational and theoretical approach towards organisational performance. Moreover, this study enhances the result of previous literature on strategic enablers by explaining the effort involving decision-making to strengthen the organisational structure, particularly the decision-making styles (intuitive and rational), that moderates the relationship between the strategic thinking process and organisational performances ( Ritter, 2014 ).

Academic scholars and practitioners have highlighted the importance of strategic management in measuring organisational performance in terms of innovation, entrepreneurship, technology, knowledge, economics, healthcare and organisational performance ( Adam et al ., 2018 , 2020 ; Alosani et al. , 2020 ). Conversely, there is a knowledge gap on the effective judgement practices of strategic management enablers and organisational performance during decision-making ( Abuhjeeleh et al ., 2018 ; Acciarini et al. , 2021 ; Elrehail et al ., 2020 ; Nguyen, 2020 ). This paper analyses the relationship between strategic management and organisational performance and suggests a framework to elucidate the relationship variables such as moderators, rational and intuitive decision-making styles.

2. Literature review

Strategic management is applying strategic decisions towards the organisational vision to achieve strategic competitiveness and sustain competitive advantages ( Alosani et al. , 2020 ; Rodrigues and Franco, 2019 ). Strategic management is a cognitive impairment of structuring the internal capabilities to fulfil external demands and involves plans, patterns, positions, perspectives and plots ( Mintzberg et al ., 2020 ). Strategic management is the managerial discourse involving a framework of the decision-making process, which highlights how the strategy process is formulated in organisations, acknowledging the cognitive management structure of the organisations. Additionally, the organisation's members need to respond effectually to the decisions made by the management and cooperate to ensure that the organisational vision is reached, given that this will affect the organisational adaptability, legitimacy and performance ( Johnsen, 2015 ). Organisations must be aware of the uncertain environments that can influence their welfare.

Consequently, the strategic management process can be reflected in two directions: strategic planning and strategic thinking. Strategic planning emphasises formulating strategies or disciplined efforts to produce strategic decisions to achieve the organisation's objectives ( Bryson, 2018 ). Strategic planning also can be reflected as a system that enhances the decision-making process among the members of an organisation. The strategic management process needs to be fulfilling for the organisation to sustain its competitive advantages. Moreover, strategic thinking is creative, disruptive, future-focused and experimental and often contradicts traditional notions of strategic planning ( Liedtka, 2000 ). Strategic planning is the principal element of the strategic management process involving resource management, implementation, control and evaluation of strategies ( Poister et al ., 2010 ). Strategic planning focuses on formalising existing strategies and employing creativity to enhance perspectives ( Mintzberg et al ., 2020 ). The uncertainties of environments and conflicting perspectives can be evaluated and addressed using strategic thinking as a part of the organisational decision-making process ( Chin et al ., 2018 ). Studies by Goldman et al . (2015) indicated that organisational members are not actively involved during the strategic decision-making process, leading to the decline in the organisation's performance.

The importance of the strategic decision-making process towards organisational performance was emphasised by Steptoe‐Warren et al. (2011) . The research suggested that evaluating, identifying and validating the process will enhance the strategic thinking process to positively impact performance ( Norzailan et al ., 2016 ). Moreover, strategic thinking plays a vital role in analysing the external factors influencing the process. If the organisational members take it lightly, it will lead to perception deficiencies ( Kızıloglu and Serinkan, 2015 ). Additionally, the study highlighted that strategic planning occurs after strategic thinking ( Alatailat et al ., 2019 ; Bonn, 2001 ; Mintzberg, 1994 ). Consequently, this study will focus on strategic thinking as the fundamental phase in the strategic management process.

A conceptual framework that highlights the management principles among the business process in delivering effective solutions for problems is shown in Figure 1 .

3. Strategic management

Strategic management is defined as a framework for achieving success, and it is pivotal for organisations to achieve their objectives and continuously perform better ( Elliott et al ., 2020 ). Additionally, strategic management is a continuous process of looking for a better action plan to ensure the organisation's competitiveness.

3.1 Strategic thinking

The most challenging issue an organisation faces is awareness of the strategic vision and missions, available resources and identifying opportunities for growth within the organisation ( Bryson, 2018 ). Therefore, strategic thinking is a vital element in the chain of processes, which must be carried out effectively and systematically ( Sahay, 2019 ). Nevertheless, organisations need to be aware that strategic thinking can fail miserly if the decision-makers do not realise the strategic enablers or the factors responsible for the effective strategic thinking process. Strategic enablers influence the thoughts and decision process of the organisational members ( Goldman et al ., 2015 ). Therefore, strategic enablers will lead the organisation's members towards idea growth and personal development, while strategic thinkers expedite the organisational performances ( Alatailat et al ., 2019 ).

Individuals involved in the organisational structure utilise their experiences and thought processes in managing conflicts to enhance strategic thinking ( Alaarj et al ., 2016 ). Strategy managers or thinkers recognise the relationship between business responsibilities and departments and organisations and their business stakeholders ( Cabral et al. , 2019 ). This relationship is known as “system thinking”, where an organisation explores the structure reflected in the action and environment that causes the incident. Additionally, the direction or the organisational destiny is a type of strategic intent utilised to help achieve the business objectives. This occurs when all the employees can concentrate on their purpose until it is achievable.

Strategic intent is pertinent in increasing competitive advantages and improving organisational performance ( Chen et al ., 2015 ). Intelligent firms must be considered before becoming competitive to ensure the organisation can create intelligent opportunities to lead the business emerging strategies towards their vision ( Alaarj et al ., 2016 ). Conversely, the organisation should integrate previous events with the current situation to achieve and align with the organisation's objectives. This is vital for organisations to connect to the past and present environment to envision the firms and prepare for any internal or external challenges in their business ( Abubakar et al ., 2019 ). A hypothesis-driven analysis is the core element in the strategic thinking process to gather relevant information regarding the business. Therefore, the challenges faced must be transformed into a hypothesis-driven analysis to understand better the measures needed to be taken by the stakeholders to improve the organisational performances.

3.2 Decision-making style

The role of managers within an organisation must be elucidated to help enhance the decision-making process to create competitive advantages for the organisation ( Dionisio, 2017 ). Moreover, Porter (1990) emphasised the differences between competitive strategy and competitors. Decision-making styles also play a vital role in formalising the strategic decision procedure and can be defined as a habitual or formal response pattern taken by managers when there is an incident ( Kulcsár et al ., 2020 ). According to Acciarini et al. (2021) , decision-making styles are directly related to cognitive styles involved in the strategic thinking process. Decision-making style, which can be both at individual and team levels, can be classified into intuition and rationality ( Dayan and Di Benedetto, 2011 ; Dayan and Elbanna, 2011 ; Giermindl et al ., 2022 ; Luan et al ., 2019 ; Sukhov et al ., 2021 ). Therefore, the author highlighted that cognitive styles could be divided into two different categories: “feeling as information evaluators”, where managers actively gather information intuitively, and “thinking as information evaluators”, where managers systematically collect information ( Behling et al ., 1980 ). Alternatively, decision-making styles can be considered intuitive and rational information gathering and evaluating styles ( Calabretta et al ., 2017 ).

The intuitive decision-making style can be defined as the episodes of uncertainty patterns of action imposed by managers or the decision-makers based on the current situation. In addition, intuitive decision-makers must be aware of current issues and relate the relationship between cognitive schemes with holistic thinking to resolve problems ( Calabretta et al ., 2017 ). It is also believed that the intuitive decision-making process can be influenced by a sudden awareness of information ( Zhu et al ., 2017 ). Decision-makers can determine solutions without fully understanding or realising the extent of information available. Studies agree that the intuitive decision-making process can occur when unsorted information is restructured into an organised pattern of action that transforms into a conscious solution ( Zander et al ., 2016 ). Furthermore, the intuition organisations performance is enhanced when decision-makers utilise the intuition decision-making style when there is no access or relevant analytical data to support them in making strategic decisions that align with the organisation's objectives ( Temprano-García et al ., 2018 ). Conversely, intuition decision-making also contributes positively to the organisations performance when the issues are resolved quickly despite limited resources or knowledge on the current issues.

Studies by Sauter (1999) emphasised that intuition decision-making or illumination is a sudden awareness of information where the decision-makers are unaware of fundamental facts or information. The author also highlighted several ways to establish the intuitive decision-making process. First, detection is an intuition where decision-makers think of several different situations rather than focusing on the current issue ( Kolbe et al. , 2020 ). Working on current strategic issues will enable managers to comprehend related information to help solve the issue by connecting facts or elements that previously did not relate to each other ( Temprano-García et al ., 2018 ). Another form of intuition is evaluation, where the solution appears as an available option creating a sense of certainty or vague feelings towards the analytical data ( Hodgetts et al ., 2017 ).

Conversely, the intuition decision-making process can also be hypothesised as an explicit and implicit decision-making style ( Tabesh and Vera, 2020 ), where explicit decision utilises feelings or emotion and implicit decisions refer to the experience of the relevant situation ( Bhat  et al ., 2021 ; Remmers et al ., 2016 ). Moreover, intuitive decision-making styles also utilise the subconscious processing of verbalised and nonverbalised facts or information ( Tabesh and Vera, 2020 ). A recent study suggests that intuitive decision-making aided managers in enhancing the strategic decision towards the organisation's performance ( Francioni and Clark, 2020 ).

Rational decision-making involves several solutions that will be analysed based on the issues and the relevance of this information towards the current problem before implementing the final decision ( Temprano-García et al ., 2018 ). The structured information consisting of conscious thinking must be evaluated critically ( Acciarini et al. , 2021 ). In addition, the rational decision-making process will enhance the effectiveness of the decision by structuring the decision criteria by highlighting and evaluating the alternatives individually ( Fitzgerald et al ., 2017 ). The decision-makers or the managers who utilise rational decision-making styles are more likely to be vigilant and organised about available information during decision-making ( Zhu et al ., 2021 ).

3.3 Organisational performance

For five decades, organisational performance has been widely researched by academic scholars and business practitioners ( Adam et al ., 2018 ). Organisational performance has been analysed in terms of normative and descriptive explanations in strategic planning research for continuous improvement in managing organisational performance ( Buddika et al ., 2016 ). Organisational performance can be explained by describing how things happen without judging good or bad. Alternatively, the organisational performance also can be elucidated by an evaluation in terms of performance against a benchmarked alternative or standard or by a descriptive statement explaining how the situation occurs without judgement ( Camilleri, 2021 ). Even though most research is done on the continuous improvements of organisational performance, practitioners still have many arguments and discussions on the terminology and conceptual bases to determine organisational performance ( Sarraf and Nejad, 2020 ).

Organisational performance can be reflected based on the results of the organisation's common objectives, given that the methods implemented are coherently used. Consequently, the performance processes' flow or the input resources can be critically analysed ( Tsai et al ., 2020 ). The effectiveness of organisational performance is influenced by the process implemented and can be measured by the achievements. Furthermore, organisational performance is defined as analysing the series of improvements to achieve organisational objectives. Generally, various factors can be associated with organisational performance, such as organisational structures, conflict, cross-cultural and social influences ( Sinnaiah et al. , 2023 ).

Performance measurement is a systematic series to identify the effectiveness and efficiency of people's behaviour to perform to their utmost abilities. Adam et al . (2018) described performance measurement as a unit, department or business process. Therefore, it is conceptualised that there is a structural relationship between organisational performance and performance measurement. Moreover, performance measurement requires substantive and relevant restructuring of input resources and processes to be aligned with the current system to increase productivity level or performance. Failure to analyse the performance measures will weaken the organisational strength and drain the organisation's efforts ( Alosani et al. , 2020 ). Thus, strategic thinking can be a highly effective performance measure for organisations.

4. Propositions

4.1 strategic thinking process and performance.

Strategic thinking is a structured assessment of analysing and synthesising information, intensively assessing the current situation and initiating new ideas or best available options to achieve strategic objectives ( Dhir and Dhir, 2020 ). An organisation's success depends on strategic thinking as it will enhance a decision-maker's skills, abilities and knowledge and help sustain competitiveness in uncertain environments ( Dhir et al ., 2021 ). Consequently, the process of strategic thinking is crucial for any organisation to successfully achieve and survive in the market for a more extended period. Decision-makers need to be effective and cognisant of the business opportunities that arise from innovating new ideas to enhance the strategic portfolio of organisations ( Bryson et al ., 2018 ).

Strategic thinking process will positively influence organisational performance.

4.2 Rational decision-making style, strategic thinking process and performance

In evaluating an organisation's performance and the uncertainties of the environment that influences the complexities in achieving positive growth for the organisation successfully, managers must have decision-making skills that utilise strategic thinking processes. Moreover, managers must be responsible for making fast and effective solutions by analysing, evaluating and prioritising available information to overcome strategic issues and obtain positive results ( Acciarini et al. , 2021 ). According to Calabretta et al . (2017) , there is a positive correlation between the strategic thinking process and decision-making style. Decision-making styles have the same structure as strategic thinking, which involves different levels, such as organisation or individuals.

Rational decision-making will moderate the relationship between the strategic thinking process and organisational performance.

4.3 Intuitive decision-making style, strategic thinking process and performance

Several studies highlight the roles of the strategic thinking process among managers within the boundaries of our cognitive capacities ( Kaufmann et al ., 2017 ) and postulate that mental flexibility can influence it ( Barlach and Plonski, 2021 ). Studies also emphasise that managers or decision-makers often utilise intuition during challenging situations, which is expected compared to the rational way of analysing the issues ( Kaufmann et al ., 2017 ). This intuition process can be a two-fold construct consisting of experience-based and emotionally affected situations. Additionally, this can involve a complex process of information affected by new cues towards previous experiences stored in their memory and transform it into subconscious action in the decision-making process ( Stanczyk et al ., 2015 ). Based on the study done by Simon (1976) , academic scholars and practitioners emphasised that managers are highly keen on inner feelings or gut feelings involving strategic decisions when faced with competitive issues ( Al-Jaifi and Al-Rassas, 2019 ; Bozhinov et al ., 2021 ; Palaniappan, 2017 ). The decision-making process utilising intuition uses available information, which might not have been available in the past, to quicken the process of decision-making. It is also important to realise that decision-making depends on the issues faced by the organisations, and not all issues require a rational decision-making style. For specific issues, managers might only need relevant information, deliberation and formal procedures to derive effective solutions for the organisation compared to instances where the managers are not bounded by any set of procedures or rules to solve the issue.

Therefore, strategic thinking is a process of synthesis, and based on intuitive decision-making style, where the outcome is an integrated perspective of the enterprise, managers can utilise intuition decision-making style to arrive at a solution with complete freedom and flexibility towards the organisational performance. The decision-makers attempt to be involved in the decision-making process while being aware of the current issues and having a sense of relationship among the cognitive schemas with the approach of holistic thinking to determine the solution to the problem ( Khemka and Hickson, 2021 ). It is clear that the intuitive decision-making process would include the issues faced by the organisation in analysing the issues and synthesis ( Zhu et al ., 2017 ) although all the processes occur under the sense of relationship or perception. It is also believed that the intuitive decision-making process could be influenced by the decision-makers upon the sudden awareness of information ( Peng et al ., 2020 ), whereby the decision-makers could propose a solution without the understanding or realisation of why the facts are present.

Intuitive decision-making will moderate the relationship between the strategic thinking process and organisational performance.

5. Discussion and conclusion

This paper reviews strategic management involving the strategic thinking process, organisational performance and decision-making styles with extant empirical work transforming into propositions, with the ultimate goal being to integrate the strategic management process into a systematised and approachable process that needs a fast response. Strategic management plays a vital role in aligning the standard repertoire of an organisation's strategic thinking. Moreover, managers must realise that strategic thinking has a unique process that depends on the situation. The thinking process should be aligned with the specific scenarios to ensure the best solution can be implemented. To sustain competitive advantage, managers should be effectively involved in the strategic thinking process to positively impact their organisations ( Bryson et al ., 2018 ).

The importance of strategic thinking enablers (systems perspective, focused intent, intelligent opportunism, thinking in time and hypothesis-driven analysis) was emphasised in the strategic thinking process and organisational performance. The systems perspective exposes the importance of organisations understanding the relationship between functions and departments internally and externally. Furthermore, organisations need to consider the functional, business and organisation strategies towards a highly competitive environment ( Buddika et al ., 2016 ). Consequently, these systems perspectives will help organisations manage interactions effectively across all departments to enhance productivity. Focus on intent will guide the organisations towards achieving strategic objectives and resisting eccentricity ( Bromiley and Rau, 2015 ). Focus intent will positively aid organisations to be more competitive in the long run as the managers realise the sense of discovery in managing strategic objectives. Therefore, it will improve the performance and consciously push the organisation towards innovation by eliminating limitations and becoming high achievers. Conversely, intelligent opportunism will enhance the strategic objectives by creating new opportunities to be more competitive although the strategies do not align with the current vision of the organisation. This is where intelligent opportunism will play an essential role at the managerial level of the organisation to effectively communicate and measure organisational performances ( Camilleri, 2021 ).

Emerging strategies will boost the organisation's motivation and productivity and should be carefully evaluated from time to time as the future of the organisations might be projected based on the past performance. Therefore, the importance of swift thinking permits the strategic managers to purposefully analyse the mission and vision of the organisation over time. The right action at the right time will help the organisations sustain competitively and save the organisations from self-destruction by limiting the positive changes made to help improve the organisation's performance ( Adam et al ., 2018 ).

Maintaining the balance between thinking creation and cognitive processing ( Calabretta et al ., 2017 ) and enhancing organisational performance (education, financial, creative, innovation, e-commerce and quality) is a challenge faced when creating effective management strategies ( Adam et al ., 2018 ; Al-Jaifi and Al-Rassas, 2019 ; Alharbi et al ., 2019 ; Arvis et al ., 2018 ). In addition, based on previous theoretical perspectives, most of the research scenarios will be based on the governance mechanisms of management and the policy development impacts on organisational performance ( Abubakar et al ., 2019 ). Therefore, based on extensive empirical and conceptual research, strategic thinking processes positively contribute to measuring organisational performance. Based on previous research, this study infers that cognitive development plays an effective role in the segregation of control between strategic thinking, which serves as a barrier to becoming more competitive and innovative in the long run ( Adam et al ., 2018 ). In addition, this happens among employees and directly impacts the quality of the organisational harmonies, such as mutual respect, trust and welfare of the employees. A cognitive processing environment is the use of intuition and rationality in decision-making with equal importance. The managers utilise intuition decision-making styles to resolve unrelated information received. During the strategic thinking process, the managers will receive unsorted information without processed knowledge which will be later organised into sorted knowledge using intuition styles ( Zander et al ., 2016 ). However, the rational decision-making style focuses more on the analytical procedure to conclude an issue the organisation faces. This helps the managers build confidence in the solution by eliminating uncertainty during decision-making ( Zhu et al ., 2021 ). Moreover, managers will only accept solutions with clear and less ambiguous information (rational) compared to managers utilising a more subconscious style (intuition) when formulating solutions. Consequently, there will be conflict in the decision-making process within the organisations.

According to Boamah et al. (2022) , the effectiveness of decision-making styles can differ according to the situation and the dependents. Alternatively, both decision-making styles were highlighted as an alternative way of generating a problem–solution approach within organisations ( Kolbe et al. , 2020 ; Stanczyk et al ., 2015 ). This study argues that both decision-making styles have equal importance in resolving problem–solution approaches and can be a harmonious process to achieve an effective performance measure. This argument is supported by Acciarini et al. (2021) , Tabesh and Vera (2020) . Therefore, this study concludes that both decision-making styles (rational and intuition) positively impact the strategic thinking process and organisational performance. Based on the framework in Figure 1 , the proposed framework highlights the missing sections of cognitive processing among businesses when delivering effective solutions for a complex problem. Organisations have only emphasised human capital and treated it as a scarce resource that will determine the organisation's performance. This study proposed that future strategic management researchers should explore the thinking process literature's core principles to investigate policy development further. Future research should transform these academic initiatives into empirical research by implementing this proposed model.

Conceptual framework

Competing interests: The authors reported no competing interests.

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Acknowledgements

The authors acknowledge the administration of Azman Hashim International Business School, Block T08, Universiti Teknologi Malaysia, Johor, for providing the facilities and the PhD Scholar room during this research.

Corresponding author

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Management and Organization Theses and Dissertations

Theses/dissertations from 2023 2023.

For Love or Money: Investor Motivations in Equity-Based Crowdfunding , Jason C. Cherubini

The Great Resignation: An Exploration of Strategies to Combat School Bus Driver Shortages in the Post-COVID-19 Era , James E. Cole Jr.

An Empirical Analysis of Sentiment and Confidence Regarding Interest Rates in Disclosures of Public Firms in the U.S. Fintech Sector , James J. Farley

Motivations for Planning: Uncovering the Inhibitors to the Adoption of Comprehensive Financial Planning for Business Owners , Daniel R. Gilham

An Examination of Reward-Based Crowdfunding Performance and Success , Matthew Alan Grace

All Quiet on The Digital Front: The Unseen Psychological Impacts on Cybersecurity First Responders , Tammie R. Hollis

Commitment to Change Dimensions: The Influence of Innovative Work Behavior and Organizational Environments , Michael Holmes

Turmoil in the Workforce: Introduction of the Nomadic Employee , Catrina Hopkins

Attention-Grabbing Tactics on Social Media , Arjun Kadian

Theses/Dissertations from 2022 2022

Building a Mentor-Mentee Maturity Model , Leroy A. Alexander

Do Auditors Respond to Changes in Clients’ Analyst Coverage? Evidence from a Natural Experiment , Mohammad Alkhamees

Designing a Messaging Strategy to Improve Information Security Policy Compliance , Federico Giovannetti

Are all pictures worth 1,000 words? An Investigation of Fit Between Graph Type and Performance on Accounting Data Analytics Tasks , Shawn Paul Granitto

An Enterprise Risk Management Framework to Design Pro-Ethical AI Solutions , Quintin P. McGrath

Deceptive Appeals and Cognitive Influences Used in Fraudulent Scheme Sales Pitches , Rafael J. Toledo

Using Online Reviews to Identify How Hotels Can Satisfy Travelers With Pets While Making Money , Sonia Weinhaus

Theses/Dissertations from 2021 2021

The IS Social Continuance Model: Using Conversational Agents to Support Co-creation , Naif Alawi

The Use of Data Analytic Visualizations to Inform the Audit Risk Assessment: The Impact of Initial Visualization Form and Documentation Focus , Rebecca N. Baaske (Becca)

Identification of Entrepreneurial Competencies in I-Corps Site Teams at the University of South Florida , Mark A. Giddarie

Understanding Nonprofit Boards: An Exploratory Study of the Governance Practices of Regional Nonprofits , Susan Ryan Goodman

Strengthening the Entrepreneurial Support Community , Andrew J. Hafer

Who to Choose? Rating Broker Best Practices in the Medicare Advantage Industry , Darwin R. Hale

Bridging the Innovatino Gap at SOCOM , Gregory J. Ingram

Improving Environmental Protection: One Imagined Touch at a Time , Luke Ingalls Liska

Residential Curbside Recycle Context Analysis , Ntchanang Mpafe

Fighting Mass Diffusion of Fake News on Social Media , Abdallah Musmar

Managing Incomplete Data in the Patient Discharge Summary to Support Correct Hospital Reimbursements , Fadi Naser Eddin

GAO Bid Protests by Small Business: Analysis of Perceived and Reported Outcomes in Federal Contracting , David M. Snyder

Engagement and Meaningfulness as Determinants of Employee Retention: A Longitudinal Case Study , Calvin Williams

Public Budgeting as Moral Dilemma , Ben Wroblewski

Theses/Dissertations from 2020 2020

Improving Engagement: The Moderating Effect of Leadership Style on the Relationship Between Psychological Capital and Employee Engagement , Scott Beatrice

Physician Self-Efficacy and Risk-Taking Attitudes as Determinants of Upcoding and Downcoding Errors: An Empirical Investigation , Samantha J. Champagnie

Digital Identity: A Human-Centered Risk Awareness Study , Toufic N. Chebib

Clarifying the Relationship of Design Thinking to the Military Decision-Making Process , Thomas S. Fisher

Essays on the Disposition Effect , Matthew Henriksson

Analysis of Malicious Behavior on Social Media Platforms Using Agent-Based Modeling , Agnieszka Anna Onuchowska

Who Rises to the Top: An Investigation of the Essential Skills Necessary for Partners of Non-Big 4 Public Accounting Firms , Amanda K. Thompson-Abbott

Theses/Dissertations from 2019 2019

The Financial and Nonfinancial Performance Measures That Drive Utility Abandonments and Transfers in the State of Florida , Daniel Acheampong

Locating a New Collegiate Entrepreneurship Program, a Framework for a University Campus , Douglas H. Carter

Understanding Employee Engagement: An Examination of Millennial Employees and Perceived Human Resource Management Practices , Danielle J. Clark

The Potential Impact Radius of a Natural Gas Transmission Line and Real Estate Valuations: A Behavioral Analysis , Charles M. Hilterbrand Jr.

Introducing a Mobile Health Care Platform in an Underserved Rural Population: Reducing Assimilations Gaps on Adoption and Use via Nudges , Joseph Hodges

Controlling Turnover in an Inside Sales Organization: What are the Contributing Factors , Dennis H. Kimerer

An Emergent Theory of Executive Leadership Selection: Leveraging Grounded Theory to Study the U.S. Military's Special Forces Assessment and Selection Process , Darryl J. Lavender

Essays on Migration Flows and Finance , Suin Lee

The Underutilized Tool of Project Management - Emotional Intelligence , Gerald C. Lowe

Increasing the Supply of the Missing Middle Housing Types in Walkable Urban Core Neighborhoods: Risk, Risk Reduction and Capital , Shrimatee Ojah Maharaj

Playing Darts in the Dark: How are Chamber of Commerce Leaders Aligned for Greater Effectiveness? , Robert J. Rohrlack Jr.

Are Transfer Pricing Disclosures Related to Tax Reporting Transparency? The Impact of Auditor-Provided Transfer Pricing Services , Stephanie Y. Walton

Theses/Dissertations from 2018 2018

Price Transparency in the United States Healthcare System , Gurlivleen (Minnie) Ahuja

How to Build a Climate of Quality in a Small to Medium Enterprise: An Action Research Project , Desmond M. Bishop III

Banking on Blockchain: A Grounded Theory Study of the Innovation Evaluation Process , Priya D. Dozier

Enhancing the Design of a Cybersecurity Risk Management Solution for Communities of Trust , James E. Fulford Jr.

An Examination of the Progressive and Regressive Factors that Business Owners Consider When Choosing Whether or Not to Implement an Exit Strategy , David C. Pickard

The Relationship between Ambient Lighting Color and Hotel Bar Customer Purchase Behavior and Satisfaction , Kunal Shah

The Unmanned Aerial Systems (UASs) Industry and the Business Impacts of the Evolution of the Federal Regulatory Environment , Darren W. Spencer

Intercultural Communication Between International Military Organizations; How Do You Turn a ‘No’ Into a ‘Yes’? , Douglas A. Straka

Essential Leadership Skills for Frontline Managers in a Multicultural Organization , Janelle Ward

Moffitt Cancer Center: Leadership, Culture and Transformation , W. James Wilson

Two Essays on String of Earnings Benchmarks , Yiyang Zhang

Theses/Dissertations from 2017 2017

Multi-Step Tokenization of Automated Clearing House Payment Transactions , Privin Alexander

The Effect of Corporate Social Responsibility Investment and Disclosure on Cooperation in Business Collaborations , Sukari Farrington

What Factors during the Genesis of a Startup are Causal to Survival? , Gilbert T. Gonzalez

The Great Recession of 2007 and the Housing Market Crash: Why Did So Many Builders Fail? , Mohamad Ali Hasbini

The Effect of Expanded Audit Report Disclosures on Users’ Confidence in the Audit and the Financial Statements , Peter Kipp

An Examination of Innovation Idea Selection Factors in Large Organizations , Troy A. Montgomery

Essays on Sales Coaching , Carlin A. Nguyen

Vital Signs of U.S. Osteopathic Medical Residency Programs Pivoting to Single Accreditation Standards , Timothy S. Novak

Leaders Who Learn: The Intersection of Behavioral Science, Adult Learning and Leadership , Natalya I. Sabga

Toward a Systemic Model for Governance and Strategic Management: Evaluating Stakeholder Theory Versus Shareholder Theory Approaches , James A. Stikeleather

A Longitudinal Study of the Effects of Cognitive Awareness Training on Transaction Processing Accuracy: An Introduction to the ACE Theoretical Construct , John Townsend

Theses/Dissertations from 2016 2016

The Effect of Presentation Format on Investor Judgments and Decisions: Does the Effect Differ for Varying Task Demands? , Kevin Agnew

Theses/Dissertations from 2014 2014

Multi-Task Setting Involving Simple and Complex Tasks: An Exploratory Study of Employee Motivation , Maia Jivkova Farkas

Essays on Mergers and Acquisitions , Marcin Krolikowski

Do Social Biases Impede Auditor Reliance on Specialists? Toward a Theory of Social Similarity , Rina Maxine Limor

Theses/Dissertations from 2013 2013

Psychological Distance: The Relation Between Construals, Mindsets, and Professional Skepticism , Jason Rasso

Theses/Dissertations from 2011 2011

Combining Natural Language Processing and Statistical Text Mining: A Study of Specialized Versus Common Languages , Jay Jarman

An Empirical Investigation of Decision Aids to Improve Auditor Effectiveness in Analytical Review , Robert N. Marley

The Effects of Item Complexity and the Method Used to Present a Complex Item on the Face of a Financial Statement on Nonprofessional Investors` Judgments , Linda Gale Ragland

Theses/Dissertations from 2010 2010

Two Essays on Information Ambiguity and Informed Traders’ Trade-Size Choice , Ziwei Xu

Theses/Dissertations from 2008 2008

Two Essays on the Conflict of Interests within the Financial Services Industry-- Financial Industry Consolidation: The Motivations and Consequences of the Financial Services Modernization Act (FSMA) and “Down but Not Out” Mutual Fund Manager Turnover within Fund Families , Lonnie Lashawn Bryant

Two Essays on Multiple Directorships , Chia-wei Chen

Two Essays on Financial Condition of Firms , Sanjay Kudrimoti

A Study of Cross-Border Takeovers: Examining the Impact of National Culture on Internalization Benefits, and the Implications of Early Versus Late-Mover Status for Bidders and Their Rivals , Tanja Steigner

Two Essays on Corporate Governance⎯Are Local Directors Better Monitors, and Directors Incentives and Earnings Management , Hong Wan

Theses/Dissertations from 2007 2007

The Role of Ethnic Compatibility in Attitude Formation: Marketing to America’s Diverse Consumers , Cynthia Rodriguez Cano

Two Essays on Venture Capital: What Drives the Underpricing of Venture CapitalBacked IPOs and Do Venture Capitalists Provide Anything More than Money? , Donald Flagg

Two essays on market efficiency: Tests of idiosyncratic risk: informed trading versus noise and arbitrage risk, and agency costs and the underlying causes of mispricing: information asymmetry versus conflict of interests , Jung Chul Park

The impact of management's tone on the perception of management's credibility in forecasting , Robert D. Slater

Uncertainty in the information supply chain: Integrating multiple health care data sources , Monica Chiarini Tremblay

Theses/Dissertations from 2006 2006

Adolescent alcohol use and educational outcomes , Wesley A. Austin

Certificate of need regulation in the nursing home industry: Has it outlived its usefulness? , Barbara J. Caldwell

The impacts of the handoffs on software development: A cost estimation model , Michael Jay Douglas

Using emergent outcome controls to manage dynamic software development , Michael Loyd Harris

The information technology professional's psychological contract viewed through their employment arrangement and the relationship to organizational behaviors , Sandra Kay Newton

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Tommy Hilfiger’s Adaptive Clothing Line: Making Fashion Inclusive

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• Organizational Management

Group and Organization Management

• January 2014
• Group & Organization Management 39(4):389-415
• 39(4):389-415

• Macquarie Graduate School of Management

• The Hong Kong Polytechnic University

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Extraordinary Labor Market Developments and the 2022-23 Disinflation

Two extraordinary U.S. labor market developments facilitated the sharp disinflation in 2022-23 without raising the unemployment rate. First, pandemic-driven infection worries and social distancing intentions caused a sizable drag on labor force participation that began to reverse in the first quarter of 2022, and perhaps earlier. As the reversal unfolded, it raised labor supply and reduced wage growth. Second, the pandemic-instigated shift to work from home (WFH) raised the amenity value of employment in many jobs and for many workers. This development lowered wage-growth pressures along the transition path to a new equilibrium with pay packages that recognized higher remote work levels and their benefits to workers. Surveys of business executives imply that the shift to WFH lowered average wage growth by two percentage points from spring 2021 to spring 2023. A direct inspection finds that average real wage growth from 2021 Q1 to 2024 Q1 in the U.S. economy was at least 3.5 to 4.4 ppts below the path suggested by pre-pandemic experience. This large shortfall in real wage growth aligns well with the interpretation of the 2022-23 disinflation offered here.

This essay draws on my research with Jose Maria Barrero, Nick Bloom, Brent Mayer and Emil Mihaylov. Hyoseul Kim assisted in the preparation of figures and tables. Errors are my own. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.

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The state of AI in 2023: Generative AI’s breakout year

You have reached a page with older survey data. please see our 2024 survey results here ..

The latest annual McKinsey Global Survey  on the current state of AI confirms the explosive growth of generative AI (gen AI) tools . Less than a year after many of these tools debuted, one-third of our survey respondents say their organizations are using gen AI regularly in at least one business function. Amid recent advances, AI has risen from a topic relegated to tech employees to a focus of company leaders: nearly one-quarter of surveyed C-suite executives say they are personally using gen AI tools for work, and more than one-quarter of respondents from companies using AI say gen AI is already on their boards’ agendas. What’s more, 40 percent of respondents say their organizations will increase their investment in AI overall because of advances in gen AI. The findings show that these are still early days for managing gen AI–related risks, with less than half of respondents saying their organizations are mitigating even the risk they consider most relevant: inaccuracy.

The organizations that have already embedded AI capabilities have been the first to explore gen AI’s potential, and those seeing the most value from more traditional AI capabilities—a group we call AI high performers—are already outpacing others in their adoption of gen AI tools. 1 We define AI high performers as organizations that, according to respondents, attribute at least 20 percent of their EBIT to AI adoption.

The expected business disruption from gen AI is significant, and respondents predict meaningful changes to their workforces. They anticipate workforce cuts in certain areas and large reskilling efforts to address shifting talent needs. Yet while the use of gen AI might spur the adoption of other AI tools, we see few meaningful increases in organizations’ adoption of these technologies. The percent of organizations adopting any AI tools has held steady since 2022, and adoption remains concentrated within a small number of business functions.

Table of Contents

• It’s early days still, but use of gen AI is already widespread
• Leading companies are already ahead with gen AI
• AI-related talent needs shift, and AI’s workforce effects are expected to be substantial
• With all eyes on gen AI, AI adoption and impact remain steady

About the research

1. it’s early days still, but use of gen ai is already widespread.

The findings from the survey—which was in the field in mid-April 2023—show that, despite gen AI’s nascent public availability, experimentation with the tools  is already relatively common, and respondents expect the new capabilities to transform their industries. Gen AI has captured interest across the business population: individuals across regions, industries, and seniority levels are using gen AI for work and outside of work. Seventy-nine percent of all respondents say they’ve had at least some exposure to gen AI, either for work or outside of work, and 22 percent say they are regularly using it in their own work. While reported use is quite similar across seniority levels, it is highest among respondents working in the technology sector and those in North America.

Organizations, too, are now commonly using gen AI. One-third of all respondents say their organizations are already regularly using generative AI in at least one function—meaning that 60 percent of organizations with reported AI adoption are using gen AI. What’s more, 40 percent of those reporting AI adoption at their organizations say their companies expect to invest more in AI overall thanks to generative AI, and 28 percent say generative AI use is already on their board’s agenda. The most commonly reported business functions using these newer tools are the same as those in which AI use is most common overall: marketing and sales, product and service development, and service operations, such as customer care and back-office support. This suggests that organizations are pursuing these new tools where the most value is. In our previous research , these three areas, along with software engineering, showed the potential to deliver about 75 percent of the total annual value from generative AI use cases.

In these early days, expectations for gen AI’s impact are high : three-quarters of all respondents expect gen AI to cause significant or disruptive change in the nature of their industry’s competition in the next three years. Survey respondents working in the technology and financial-services industries are the most likely to expect disruptive change from gen AI. Our previous research shows  that, while all industries are indeed likely to see some degree of disruption, the level of impact is likely to vary. 2 “ The economic potential of generative AI: The next productivity frontier ,” McKinsey, June 14, 2023. Industries relying most heavily on knowledge work are likely to see more disruption—and potentially reap more value. While our estimates suggest that tech companies, unsurprisingly, are poised to see the highest impact from gen AI—adding value equivalent to as much as 9 percent of global industry revenue—knowledge-based industries such as banking (up to 5 percent), pharmaceuticals and medical products (also up to 5 percent), and education (up to 4 percent) could experience significant effects as well. By contrast, manufacturing-based industries, such as aerospace, automotives, and advanced electronics, could experience less disruptive effects. This stands in contrast to the impact of previous technology waves that affected manufacturing the most and is due to gen AI’s strengths in language-based activities, as opposed to those requiring physical labor.

Responses show many organizations not yet addressing potential risks from gen AI

According to the survey, few companies seem fully prepared for the widespread use of gen AI—or the business risks these tools may bring. Just 21 percent of respondents reporting AI adoption say their organizations have established policies governing employees’ use of gen AI technologies in their work. And when we asked specifically about the risks of adopting gen AI, few respondents say their companies are mitigating the most commonly cited risk with gen AI: inaccuracy. Respondents cite inaccuracy more frequently than both cybersecurity and regulatory compliance, which were the most common risks from AI overall in previous surveys. Just 32 percent say they’re mitigating inaccuracy, a smaller percentage than the 38 percent who say they mitigate cybersecurity risks. Interestingly, this figure is significantly lower than the percentage of respondents who reported mitigating AI-related cybersecurity last year (51 percent). Overall, much as we’ve seen in previous years, most respondents say their organizations are not addressing AI-related risks.

2. Leading companies are already ahead with gen AI

The survey results show that AI high performers—that is, organizations where respondents say at least 20 percent of EBIT in 2022 was attributable to AI use—are going all in on artificial intelligence, both with gen AI and more traditional AI capabilities. These organizations that achieve significant value from AI are already using gen AI in more business functions than other organizations do, especially in product and service development and risk and supply chain management. When looking at all AI capabilities—including more traditional machine learning capabilities, robotic process automation, and chatbots—AI high performers also are much more likely than others to use AI in product and service development, for uses such as product-development-cycle optimization, adding new features to existing products, and creating new AI-based products. These organizations also are using AI more often than other organizations in risk modeling and for uses within HR such as performance management and organization design and workforce deployment optimization.

AI high performers are much more likely than others to use AI in product and service development.

Another difference from their peers: high performers’ gen AI efforts are less oriented toward cost reduction, which is a top priority at other organizations. Respondents from AI high performers are twice as likely as others to say their organizations’ top objective for gen AI is to create entirely new businesses or sources of revenue—and they’re most likely to cite the increase in the value of existing offerings through new AI-based features.

As we’ve seen in previous years , these high-performing organizations invest much more than others in AI: respondents from AI high performers are more than five times more likely than others to say they spend more than 20 percent of their digital budgets on AI. They also use AI capabilities more broadly throughout the organization. Respondents from high performers are much more likely than others to say that their organizations have adopted AI in four or more business functions and that they have embedded a higher number of AI capabilities. For example, respondents from high performers more often report embedding knowledge graphs in at least one product or business function process, in addition to gen AI and related natural-language capabilities.

While AI high performers are not immune to the challenges of capturing value from AI, the results suggest that the difficulties they face reflect their relative AI maturity, while others struggle with the more foundational, strategic elements of AI adoption. Respondents at AI high performers most often point to models and tools, such as monitoring model performance in production and retraining models as needed over time, as their top challenge. By comparison, other respondents cite strategy issues, such as setting a clearly defined AI vision that is linked with business value or finding sufficient resources.

The findings offer further evidence that even high performers haven’t mastered best practices regarding AI adoption, such as machine-learning-operations (MLOps) approaches, though they are much more likely than others to do so. For example, just 35 percent of respondents at AI high performers report that where possible, their organizations assemble existing components, rather than reinvent them, but that’s a much larger share than the 19 percent of respondents from other organizations who report that practice.

Many specialized MLOps technologies and practices  may be needed to adopt some of the more transformative uses cases that gen AI applications can deliver—and do so as safely as possible. Live-model operations is one such area, where monitoring systems and setting up instant alerts to enable rapid issue resolution can keep gen AI systems in check. High performers stand out in this respect but have room to grow: one-quarter of respondents from these organizations say their entire system is monitored and equipped with instant alerts, compared with just 12 percent of other respondents.

3. AI-related talent needs shift, and AI’s workforce effects are expected to be substantial

Our latest survey results show changes in the roles that organizations are filling to support their AI ambitions. In the past year, organizations using AI most often hired data engineers, machine learning engineers, and Al data scientists—all roles that respondents commonly reported hiring in the previous survey. But a much smaller share of respondents report hiring AI-related-software engineers—the most-hired role last year—than in the previous survey (28 percent in the latest survey, down from 39 percent). Roles in prompt engineering have recently emerged, as the need for that skill set rises alongside gen AI adoption, with 7 percent of respondents whose organizations have adopted AI reporting those hires in the past year.

The findings suggest that hiring for AI-related roles remains a challenge but has become somewhat easier over the past year, which could reflect the spate of layoffs at technology companies from late 2022 through the first half of 2023. Smaller shares of respondents than in the previous survey report difficulty hiring for roles such as AI data scientists, data engineers, and data-visualization specialists, though responses suggest that hiring machine learning engineers and AI product owners remains as much of a challenge as in the previous year.

Looking ahead to the next three years, respondents predict that the adoption of AI will reshape many roles in the workforce. Generally, they expect more employees to be reskilled than to be separated. Nearly four in ten respondents reporting AI adoption expect more than 20 percent of their companies’ workforces will be reskilled, whereas 8 percent of respondents say the size of their workforces will decrease by more than 20 percent.

Looking specifically at gen AI’s predicted impact, service operations is the only function in which most respondents expect to see a decrease in workforce size at their organizations. This finding generally aligns with what our recent research  suggests: while the emergence of gen AI increased our estimate of the percentage of worker activities that could be automated (60 to 70 percent, up from 50 percent), this doesn’t necessarily translate into the automation of an entire role.

AI high performers are expected to conduct much higher levels of reskilling than other companies are. Respondents at these organizations are over three times more likely than others to say their organizations will reskill more than 30 percent of their workforces over the next three years as a result of AI adoption.

4. With all eyes on gen AI, AI adoption and impact remain steady

While the use of gen AI tools is spreading rapidly, the survey data doesn’t show that these newer tools are propelling organizations’ overall AI adoption. The share of organizations that have adopted AI overall remains steady, at least for the moment, with 55 percent of respondents reporting that their organizations have adopted AI. Less than a third of respondents continue to say that their organizations have adopted AI in more than one business function, suggesting that AI use remains limited in scope. Product and service development and service operations continue to be the two business functions in which respondents most often report AI adoption, as was true in the previous four surveys. And overall, just 23 percent of respondents say at least 5 percent of their organizations’ EBIT last year was attributable to their use of AI—essentially flat with the previous survey—suggesting there is much more room to capture value.

Organizations continue to see returns in the business areas in which they are using AI, and they plan to increase investment in the years ahead. We see a majority of respondents reporting AI-related revenue increases within each business function using AI. And looking ahead, more than two-thirds expect their organizations to increase their AI investment over the next three years.

The online survey was in the field April 11 to 21, 2023, and garnered responses from 1,684 participants representing the full range of regions, industries, company sizes, functional specialties, and tenures. Of those respondents, 913 said their organizations had adopted AI in at least one function and were asked questions about their organizations’ AI use. To adjust for differences in response rates, the data are weighted by the contribution of each respondent’s nation to global GDP.

The survey content and analysis were developed by Michael Chui , a partner at the McKinsey Global Institute and a partner in McKinsey’s Bay Area office, where Lareina Yee is a senior partner; Bryce Hall , an associate partner in the Washington, DC, office; and senior partners Alex Singla and Alexander Sukharevsky , global leaders of QuantumBlack, AI by McKinsey, based in the Chicago and London offices, respectively.

They wish to thank Shivani Gupta, Abhisek Jena, Begum Ortaoglu, Barr Seitz, and Li Zhang for their contributions to this work.

This article was edited by Heather Hanselman, an editor in the Atlanta office.

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Research: The Most Common DEI Practices Actually Undermine Diversity

• Traci Sitzmann,
• Shoshana Schwartz,
• Mary Lee Stansifer

Organizations over-rely on approaches that consistently fail to diversify management ranks — and overlook those that have proven effective.

While companies say they champion diversity, there are glaring disparities in diverse representation within managerial ranks. The authors examine the impact of various management practices on diverse representation in managerial roles and how often each management practice is utilized in organizations, shedding light on why organizations are not making greater progress toward diverse representation. Despite not working well for attaining diverse representation, diversity training is widely used in organizations. In contrast, formal mentoring programs and targeted recruitment are effective for increasing diverse representation but are underused. Indeed, the relationship between how often management practices are implemented in organizations and their effectiveness in attaining diverse representation is negative and strong. This article breaks down the practices organizations should utilize to achieve diverse representation, underscoring the need to shift toward practices that increase diverse representation in management.

Despite the U.S. population’s growing diversity , managerial roles are still predominantly held by white men. While the largest firms have been pledging to recruit and train Black workers for over 40 years, there has been little increase in Black representation in managerial roles during this timeframe. In a 2021 analysis , Black employees held only 7% of managerial roles despite comprising 14% of all employees. Women have difficulty attaining leadership roles despite evidence that “women are more likely than men to lead in a style that is effective.”

• TS Traci Sitzmann is a Professor of Management and Workforce Development Scholar at the University of Colorado Denver.
• SS Shoshana Schwartz is an Assistant Professor of Management at Christopher Newport University’s Luter School of Business.
• MS Mary Lee Stansifer is an Assistant Teaching Professor at the University of Colorado Denver.

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Collective action in fishery resource management and its challenges in Ethiopia: a review

• Open access
• Published: 18 June 2024
• Volume 4 , article number  42 , ( 2024 )

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• Oliyad Sori Zenbaba 1  

Natural resources such as fish are vital for improving human livelihood and serving as sources of food, income and employment opportunities in Ethiopia. But, its degradation and overexploitation lead to anxiety about the living standards of human beings and other living things. The degradation of these resources, which is caused by the less common participation of all stakeholders in protecting the resources, is the most challenging issue in the country. The objective of this paper is to review fishery production and management and their challenges, the extent of the overexploitation of natural resources, the contributions of collective action in fishery production and management, and fishery collective action challenges in Ethiopia. The review paper identified that the existence of a lack of strong coordination among different actors like local communities, the government, development agents, research centers and donor organizations whose concern are with the fishery sector caused the degradation of water bodies and fishery resources in Ethiopia. These issues resulted in challenges in fishery resource production and management, mismanagement in solving social differences among local communities, and low cooperation among communities in protecting fish resources. Besides, these challenges also caused a limited expansion of fishery collective action, overexploitation of fishery resources, and less concern for the protection of fish diversity species in the country. Therefore, essential policy implications forwarded are creating and improving joint collaboration between fish users, local communities, government institutions and development agents; organizing and empowering the local communities in collective action to involve them in the fishery sector to contribute to practical improvements in the protection, production, management and sustainability of fish resources.

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1 Introduction

Natural resources and their common property rights are highly interlinked and the governance, appropriation, and maintenance of the resource and its interdependence need the involvement of local community, national and international actors [ 1 , 2 ]. However, its use property rights are influenced by the behaviors of the users and collectively shared social cooperation such as trust, reciprocity, reputation, leadership, sanction, social networks and law enforcement [ 1 , 3 , 4 ]. Common pool resources are natural or man-made resources that are rival and non-excludable and are mostly used simultaneously by members of a community [ 5 , 6 , 7 ]. These resources face management problem complexity caused by the nature of the communities, like heterogeneity or homogeneity [ 8 ]. Common pool resources provide substantial benefits for human beings and others but their inherent problems are beyond the estimated by literatures especially in developing countries like Ethiopia. By its nature, protection and management of these resources require a comprehensive role  of all stakeholders rather than a single or a few members. Overall, the participation of the communities around the resources more than any other stakeholders plays a significant role in keeping the resource for current and future generations.

In Ethiopia, too, common pool resources are serving in improving the livelihood of greater proportion of the societies. However, the resource is being damaged due to lack of social awareness and management to protect the resource [ 9 ]. The community composed of diversified social classes if not used as opportunity, they could fail to agree on when, how much and how to use the resource. When these differences occurred, the community could also be unable to jointly organize themselves in group to participate in the protection of the resource. Such challenges create mistrust in between all users and participants of the resource. In addition, these resources are limited in its nature and absence of strict rule set on the users of the resources and lack of regular monitoring hamper the sustainability of the resource.

Fisheries are common pool resources that are complex and interdependent ecological and social systems [ 10 ]. The sector contributes a lion's share to enhancing export competitiveness, food security, employment opportunities, income generation, poverty reduction and contributes to the overall socioeconomic development of least-developed countries such as Ethiopia, where its consumption is higher than its production [ 11 , 12 , 13 , 14 , 15 , 16 ]. However, management of fishery resources is extremely exposed to tragedy of the commons, lack of control for use restrictions, environmental instability, degradation of water bodies, and overexploitation [ 17 , 18 , 19 , 20 , 21 ]. Ethiopia is endowed with an abundance of water bodies such as lakes, rivers, streams, wetlands and man-made reservoirs that are comfortable for the production of different species of fish. But, the contributions of the sector to the development of the country are too low. Fish production faces complex challenges attributed to the types and nature of its species, lack of infrastructures, markets, technologies and attitudes of both producers and consumers. Moreover, lack of coordination between different actors in the sector, such as producers, traders, the government, institutions like NGOs, and consumers, also contributed to low fish production and productivity in the country. By comparing the contributions of fishery production to the livelihood of agrarian communities and its severe challenges, low efforts are being applied to minimize its issues and improve the benefits from the sector in developing countries like Ethiopia. Similarly, the weakness of property rights over the use of the resource and absence of controlling environmental impacts also fired fishery resource challenges.

In Ethiopia, a variety of fish species  exist, and diversified ranges of ichthyofaunalakes are found in the rivers and reservoirs, though estimating the exact number of species is difficult [ 22 ]. But approximately, over 200 species of fish exist in lakes, rivers, and reservoirs throughout the country, where larger proportions of these species are native. These species are found in various water bodies, such as Wabishebele-Genale, Abay, Omo-Gibe, Awash, Rift valley lakes, and Baro Akobo basins. Among fish species living in these water bodies, 23 species from Abay, 7 species from Rift Valley, 6 species from Awash, 2 species from Omo, and 1 species from Baro are endemic [ 23 , 24 ]. Similarly, lakes and reservoirs such as Fincha, Hawassa, Tana, Turkana, Chamo, Ziway, Koka, Abaya, Langano, South Wollo lakes Hayq, Ardibo, and various rivers are serving as a home for a greater proportion of fish supply for different users [ 25 , 26 ]. The water bodies have a total surface area of 13,637 km 2 , with the annual potential to produce 94,541 tons of fish in the country. However, the total actual fish production is extremely below the potential capacity of fish production in the country [ 25 ]. [ 23 ] also pointed out that the fish production quantity has improved in Ethiopia, but the overall amount of its production is below the expected level and falls behind at the standard level.

Restriction and regulation policies in the use and access of natural resources profoundly endure the sustainability of the resources [ 27 ]. However, intensive competition for natural resources causes degradation and increases greenhouse gas emissions, which are significant challenges to fishery production [ 28 ]. But efficient production and productivity of fisheries need effective management, conservation of freshwater and water bodies, land use and investing in rehabilitating of degraded land [ 29 , 30 , 31 ]. These issues call for the importance of organizing community members in collective action for the improvement of fishery resources. According to [ 32 ], collective action in resource management happens when a group of people work together to achieve some common objectives aimed at solving resource management problems. People engage in collective action to use natural resources, fulfill basic needs, use a common facility for marketing their products, and meet to decide on rules-related actions in the member [ 33 ]. Fishery resource management requires effective and well-organized collective actions [ 34 ], while including all members of the community and isolated groups in fishery collective action depending on their interests profoundly builds a base for fostering co-management of fishery resources [ 35 ]. Therefore, natural resources such as fisheries need continuous management and monitoring through forwarding rules and regulations for resource use, protection, and reproduction. To achieve this, collective action has powerful positive impacts and plays a central role in addressing fish management issues and imposing reasonable rules to sustain the continuity of the resources and their upcoming benefits for future generations.

The sustainability of collective action, including its emergence, contributions to fishery resource management, success and failure, and expected outcome, are determined by social norms [ 36 ]. When social norms have good attributes, they have a positive impact on developing collective action for fishery resource management through creating a conducive environment for the resource, including and excluding methods, strengthening institutional capacity, solving its use conflicts, reducing environmental impacts and enforcing use law. In Ethiopia, a lot of studies were undertaken on the role of collective action in natural resource management, such as grazing land, forest coffee, forest resources, rangeland resources, soil and water conservation, and irrigation system management [ 27 , 37 , 38 , 39 , 40 , 41 , 42 ]. However, studies conducted specifically considering the contributions of collective action in fishery resource management and its challenges were scant in the country. But, far away from collective action, [ 43 ] studied the role of social norms in natural resource management, while [ 44 ] discussed the impact of the attitudes of fish users on its management. These studies failed to consider the role of collective action in the effective management of natural resources by involving and identifying the interests of the collective members, their motivation for resource protection and management, the heterogeneity of the community, and lessening the conflict between members over resource use and access.

This review study is highly motivated by collective action in fishery resource management and its challenges in Ethiopia. The country is facing fishery production challenges and underutilizing of the sector caused by a lack of well-organized fishery collective action for its proper management. Management of natural resources such as fish needs the joint action and common objectives of collective actors against their individual interests, which cannot be realized by the specific traits and characteristics of the communities. The successful sustainability of fishery production directly or indirectly relies on the efforts of all stakeholders, such as users, local communities, government, NGOs, and their interdependent institutions. Therefore, this review paper on collective action in fishery resource management and its existing challenges is undertaken to fill the research gaps in the sector. It also adds valuable awareness for all stakeholders in the fishery sectors, such as users, local communities, government and NGOs, to jointly protect the resource and implement fishery production policies  for tackling the complex problems of the sector, and it also provides clear insights for the readers and researchers.

2 Collective action and fishery resource management

2.1 collective action drivers of fishery.

Good monitoring and sanctioning mechanisms, strong leadership and the economic heterogeneity of actors contributes to the success of collective action management [ 45 ]. Besides, environmental, economic and social factors are pillars of fishery production sustainability and more firmly embedded in its management [ 46 ]. Similarly, [ 47 ] explained that addressed resource tenure, resolved conflict, discussed dialogue on equitable resource use, negotiation on resource access and use are the central elements collective action strength. As drivers, empowerment of communities through community-based management, adaptive capacity building and encouraging institutions facilitate its production, protection and management. Moreover, the cooperation of internal or self-organized, externally initiated and facilitated collective actors are a key for management of natural resources [ 48 , 49 ]. But, the effectiveness of actors in fishery production depends on to a large extent of collective involvement of the community and ownership of the system by the resource users [ 13 ].

2.2 Collective action and its importance for fishery resource management

Collective action is a condition for individual strategy for achieving a common goal by accepting constraints along each activity undertaken by the community [ 50 ]. It uses social norms as a central element and essential criterion for managing and conserving overexploited fishery resources [ 51 ]. It favors the protection and rehabilitation of the resources that were overextracted and resulted in the collapse of fish stocks, the threatened food and livelihood of people who are dependent on them [ 52 ]. Stakeholders acting to improve the quality of fish products, strengthen the fisher group and capacity of the government, expand its product and marketing are the base for its management in Ethiopia [ 53 ]. Involvement of collective stakeholders in fishery management through the planning of short-, medium-, and long-term production and development plans are  the way in which technology adoption, production seed and productivity of fish are improved in Ethiopia [ 54 ].

Collective action creates a conducive environment for fisheries through recovering from disaster, minimizing conflict, training youth with appropriate capacity, enabling the government to participate in fisheries, and finding markets for fisheries [ 35 ]. It is mostly organized within a given group by linking resource conditions, community attributes and institutional arrangements for natural resource management, while its institutions shape how people use natural resources when the use determines the development of the resource, help users make productive management strategies and affect the distribution of benefits from the resource [ 55 , 56 ]. Moreover, diversified collective actions in natural resource management from different perspectives directly or indirectly contribute to the sustainability of fishery resource management and reduce influence of external factors [ 34 ] where actors from different backgrounds, norms, values and understandings organize themselves and share resource use knowledge [ 57 ].

The central motivation for collective action in different organizations that organize stakeholders to participate in fishery developments and decision-making is the way the community’s benefit is maximized through identifying threats of mismanagement, livelihood insecurity and poverty [ 14 , 45 ]. Active participation and cooperation of the government, non-governmental organizations (NGOs), organized groups, and other stakeholders in management decisions build the basis for its development [ 10 ]. Promotion of well-organized management by actors of collective action improves the sustainability of common-pool resources like fisheries, which could improve the livelihood and food security of the users [ 58 ]. Well-organized stakeholders, through partnerships and supporters of the actors, create value addition,  minimize loss, improve quality, adopt technologies, and improve the economic gain of the sector [ 59 ].

The government can create a sustainable role for the establishment of collective action with adequate infrastructures and structural change for fishery promotion [ 60 ]. Engagement in every individual large-scale collective action problem generates unique stressors for addressing and overcoming the problems that occur [ 61 ]. Members working together to produce livelihoods and allocate goods may face common problems like climate change, natural resource depletion, pollution and biodiversity loss, while these problems mostly challenge human life. Compared to other sectors, the role of  fishery sector in the overall economy is still irrelevant in Ethiopia. Absence of fully integrated actors’ decisions and efforts in the sector and aquaculture production contributed low to the improvement of food security in Ethiopia [ 62 , 63 ].

2.3 Challenges of sustainable collective action in fishery resource management

Challenges of collective action result in groups failing to act in their common self-interest while overcoming its problems is always a challenge, but conditions enhance local users' understanding of how their own cooperation can create rules about the availability and scarcity of resources [ 33 , 64 ]. Difficulty in overcoming these problems results in the degradation or loss of natural resources [ 65 ]. Unless supported by institutional law enforcement, resources advancement and resulted in positive outcomes, collective action is not properly used for the management of common pool resources like fisheries, forests and irrigation due to a lack of coordination, conflict between members on expected outcomes, and a lack of strengthened governance, which affects its sustainability. However, if carefully applied, it contributes critical and outstanding importance to economic and environmental sustainability [ 66 ]. Besides, collective action in common pool resource management is exposed to the costs of communication and information provision at interaction between actors and the needs of participants of each actor to minimize the effect of climate change and overall sustainable development [ 67 ].

Conflict among members of the actors, factions that hinder collective decision and action, the absence of a fair election of leader and abused power, incapacity of the organization, insufficient funds, mistrust among actors, internal conflicts, lack of governmental support, resource unit mobility and corruption are the key threats to the success of fishery development [ 14 , 45 ]. Conflicts within resource use directly or indirectly affect collective action activities, as they might be the cause of natural resource actions being influenced by social-ecological and governance contexts and conflict in natural resource management institutions. The outcomes of these interactions influence future conflict risk, livelihoods, and resource sustainability [ 47 ].

In Ethiopia, collective actions of fishery resource management faces the problems of conflict in between users, mostly those raised from marginalized groups of the resource. It is mostly caused by a lack of governance, institutional failures, social-ecological factors and lack of win–win coordination between the communities. These can result in risks to the livelihood of the community that depends on the fishery, social inequalities, and continuous depletion of the resources. Moreover, strengthening collective action on fishery resources by improving the role of institutions for fishery resource management, organizing the local communities according to their equity over the resource, and enabling users to solve their access conflicts through negotiation will solve challenges to fishery production and management in the country.

Collective actions in fishery resources help all actors in resource use management by providing incentives for the disadvantageous groups from the cooperatives and ensuring the negotiable cooperation of the actors through solving frequent violence between actors over resource access and uses in Ethiopia. However, the backward resource access norms of some local communities and the lack of formal institutions led collective action in fishery management to be exposed to group conflict. The conflict could occur when one group tries to exclude another group of resource access and use. As a result, overexploitation of fish and environmental degradation happen around water bodies. Against these problems, the formulation of formal regulations for fish catchment through the building of strong structures of collective action creates harmonized mutual benefits for the local communities. Further collective action, when supported by organizational and institutional development, could result in the positive impact of a heterogeneous population on fish resource production. Accredited collective action solves the problems of power enactment from other bodies and unidirectional resource protection orders. Such organizations motivate the local communities to be involved in managing, protecting, accessing, utilizing, and adding value to the resource.

2.4 Heterogeneity and institutional management in collective action of fishery resources

The fishery production and management problems are mostly related to the resources’ nature of being open-access and the lack of an effective set of policies for managing, monitoring and controlling overuse of the resources [ 68 ]. In developing countries like Ethiopia, underdeveloped fishery regulations and management, a lack of control over access to fish in the water bodies, a lack of markets, and the indirect or direct effect of environmental devastation caused by climate change affected  fish production level, productivity and sustainability of  its species. Further, literature pointed out the negative impact of heterogeneity of community from the perspectives of social, economic and cultural diversity in the country where the deterioration of renewable natural resources such as fishery resources is common.

The interaction between stakeholders and non-human entities provides the outcome of collective management, which depends on the way social actors socially construct. Successful cooperation in collective action may prevent the likelihood of resource depletion, for example, through more effective resource utilization or collusion against sanctioning and monitoring systems [ 69 ]. Institutional arrangements for the use and management of natural resources can be classified as operational rules, collective choice rules and constitutional rules. Institutions play an important role in the protection of natural resources through the implementation of natural resource management policies, which manifest themselves in enforcing the institutions to influence collective actors of the resource [ 70 ]. The sustainability of common pool resources and solving its continuous challenges in developing countries like Ethiopia, where poor natural resource management and governance and an unequal legal framework exist, are directly impacted by well-organized collective action for achieving diversified overall economic well-being [ 9 , 37 ]. If no rules and regulations are imposed on fishery extraction from water bodies, the expected benefits, such as environmental, livelihood and food security, will be reduced. To minimize these negative influences, effective fishery governance and strengthening resource-based institutions at the community level through organizing communities to collectively engage in fishery management are immediate actions [ 17 ].

2.5 Policy options of collective fishery management

Concerning the collective management of natural resources, researches and investigations have been undertaken, especially given the fact that management of these resources is difficult due to its characteristics like excludability and sub-tractability, which creates rivalry between different users. Policymakers use collective action to resolve the conflict between resource conservation and growing resources, which can be observed in policies addressing resource problems [ 71 ]. They use collective management to create interaction between stakeholders and nonhuman entities, which provides for the outcome of collective management, and depends on the way social actors socially construct. This successful cooperation of collective action helps decision-makers to forward policies preventing the likelihood of resource depletion through effective resource utilization or collusion against sanctioning and monitoring systems.

Collective action among resource users has long been identified as a basic element of successful resource governance, and one of the main concerns of resource research is the identification of factors that affect the action. So, policymakers use it to identify determinant factors of collective action like trust, social capital, common preferences, shared knowledge, collaborative experiences, focusing events and expectations of future interactions. They also use collective action to give attention to depleted resources by providing resource property rights when state governance becomes inadequate and unable to counter the depletion of natural resources. But, failure to realize collective action challenges in sustaining natural resources requires devising governance arrangements that are supportive of the diverse needs of heterogeneous users and protect the long-term productive capacity of these resources [ 72 ]. Fishery development and utilization proclamations and monitoring policies applied to reduce illegal fishing activities in Ethiopia. But the implementation and success of the proclamation are poor due to different challenges like larger number of jobless found around the lakes and seeks job and employ themselves in catchment of fish [ 73 ].

3 Results and discussion

3.1 overall findings of the review.

The results of this review paper, entitled “Collective Action in Fishery Resource Management and its Challenges in Ethiopia” are organized to different parts and discussed it in  different categories. These categories include Ethiopia’s fishery production management and its challenges, potential problems in fishery production, role of its collective active action  and its intervening policies.

In Ethiopia, the presence of different water bodies is serving as an opportunity for fishery production. Fishery is important in serving as a source of food, creating job opportunities, and improving the livelihood of the communities in the country. It has a crucial importance in interfering with the food insecurity problems of society. In the country, though fish consumption levels are low, the consumption behavior of society has increased more than before. Currently, in Ethiopia, the most influential challenges in fishery management are the increased unemployment rate and environmental degradation. These issues forced society to rely on fish caught from water bodies with no intention of caring for the environment. An increased population number needed to fulfill their needs, which increased the domestic demand for fish consumption. However, the lack of a management system for adding value to the fishery resources and effectively banning overexploitation of fish resources from water bodies had negative consequences for the sustainability of fish diversity in the country.

Organizing collective actions in fishery management needs the establishment of strong institutions, support from local communities, and central governance. However, collective action problems in fishery management in Ethiopia are caused by a lack of collective work for the sustainability of the resource. The interest of the community and the shortage of the resource also created conflict over access to the resource and lack of responsibility for protecting the resource. These issues had arisen due to lack of central management system. Collective action members fail to abide to improve the production, conserve it from loss, and share the benefits based on equitable methods. Lack of households’ interest in protecting other natural resources such as forests, soil, grazing land and minerals also directly or indirectly affected the role of collective action in protecting fishery resources in the country.

The impacts of cultural, social, economic and environmental challenges are also other challenges for the successfulness of collective action in fishery management in Ethiopia. At this time, for example, it has become very difficult to organize a community to be organized collectively, engage them in fish resource protection, production, marketing, and value addition, and deliver it to the consumers as they are being displaced due to domestic political crises, conflict and war. Further, fish protection, production, gear to extract and add value requires technologies for production improvements. However, the societies are unable to afford the cost of these technologies and are faced with a lack of fishing equipment and poor infrastructure. These issues resulted in traditional, underutilized, low production, traditional trapping and post-harvest loss of fishery resources in the country.

Damages to water bodies by weeds, climatic change, expansion of agricultural production through deforestation, using water for irrigation, illegal fishing, and overfishing are also significant contributors to the inactivity of collective action in fishery resources in the country. Invasion of water bodies by weeds is the most influential challenge in fish production and has caused a decline in fish stock, a high cost of getting fish, and banned the overall involvement of the community in fishing. Besides, supportive services from local organizations, governments, and NGO’s in strengthening the role of collective action for sustaining fish production are miserable in Ethiopia. Overall, lack of management services from all these stakeholders resulted in low fishing productivity, raised the number of illegal fishing gear, poor regulations for sustaining fish species and underutilizing of fish production and consumption.

3.2 Fishery production management in Ethiopia

In Ethiopia, the management of fishery production needs effective setup management, regular stakeholder follow-up, and the creation of methods for encouraging the development of aquaculture while mesh size regulation, closing season and ground, fishery regulatory systems and coordinating local communities used for fishery production, but it is undertaken in traditional control approach methods. Lack of markets for fishery products, time of catching fish, lack of gear restrictions, regulation, training for fishers, and monitoring fishery production are the key challenges to fishery production in Ethiopia. These factors resulted in  and confirmed that fishery production management is very poor in Ethiopia. [ 73 , 74 , 75 , 76 , 77 ] discussed the importance of proper management of fishery resources in Ethiopia.

Proper management of fishery production plays a great role in employment, income, and reducing overexploitation of fisheries, thereby improving the economy of Ethiopia as a whole and the livelihood of individuals who depend on it. However, management of fishery production problems, such as poor controlling and managing of ponds or lakes and pollution created by individual care, are complex challenges that exist in the country. As a result, problems found within water bodies are caused by human activities directly or indirectly affecting fishery production. In line with these, the empirical researches of different authors [ 75 , 78 , 79 , 80 , 81 ] discussed that investing in water bodies like lakes and paying attention to their protection could result in sustained fishery production in Ethiopia. Overall, fishery resources in Ethiopia lack co-management practices for conserving and rehabilitating fisheries, management of use restrictions, difficulty in maintaining different fish species and traditional and backward production system.  These issues are affecting fish production, utilization and sustainability. [ 82 , 83 ] also forwarded that the cooperation of actors engaged in conservation, rehabilitation, and utilization through organizing inputs used increases the overall benefits of fishery production.

3.3 Fishery production and management challenges in Ethiopia

Though Ethiopia has great potential for aquaculture, its fishery production is being challenged by many factors, like the absence of aquaculture technologies and the shortage of sustainable-quality fish seeds and feed supplies. In addition to these, lack of stringent sanitary and phytosanitary standards for ensuring good quality products, lack of fishing gear, socio-economic factors, land use factors, lack of administration setup data, poison plants, wetland degradation, fish diseases, water hyacinth as it has a serious impact on fishing, immature fishing and overfishing of valuable fish species in some lakes are other fish production challenges caused by a lack of management in Ethiopia. These results showed that advantages that should be obtained and generated from fishery production in least-developed countries, specifically Ethiopia, are found to be underdeveloped and unexploited due to complex challenges and constraints that impede the sector from being well produced and managed. Different authors [ 15 , 54 , 76 , 77 , 82 , 84 , 85 ] also discussed fishery production and management challenges. In Ethiopia, the government’s lack of concern for supporting material and technical services and fishery users’ conflict resolution, inappropriate policies and weak institutional arrangements for the fishery sector caused low fish supply. Lack of awareness, lack of supporting and subsidizing the sector, inadequate technical and material backup, and low profit brought fishery production and management challenges in Ethiopia. And also, the management activities of fishery collection are exposed to different problems of poor implementation of policies, regulations, coordination, management of the resources, irresponsible fishing activities and stakeholders, lack of training, fishing facilities and infrastructures. It is supported by [ 86 , 87 ].

Post-harvest loss management is a crucial issue while fishery sector harvest is raised in Ethiopia, as fish is susceptible to loss due to spoilage, breakage, size, lack of motorized boats, retarded growth of fish, discarding of by-catches and operational losses. In line with these, a lack of collective awareness among relevant stakeholders and entities about threats to fishery production affects the benefits obtained by users from resource production. The findings of [ 13 , 88 , 89 , 90 , 91 , 92 , 93 ] discussed the aforementioned post-harvest losses of fishery production and management challenges in Ethiopia.

3.4 Over-exploitation and degradation of water bodies and fishery resources in Ethiopia

Natural resources in Ethiopia have been exposed to overexploitation for a long time. Less consideration for natural resources, which contribute beneficial environmental services to human well-being by delivering them, led the resources’ sustainability value to be under heavy pressure. Degraded resources bring climate change, extremely overfished stocks, exploited fish, and the collapse of fish resources. Overexploitation of fish in Ethiopia was mostly caused by the use of fishing nets that do not meet national legal standards; the absence of laws or the failure to enforce these to preserve lakes and fish resources, siltation and unwise exploitation of them creates conflict between users. The daily activities of human beings that discharge hazardous contaminants like microplastics and macroplastics to different water bodies in Ethiopia pollute the environment and seriously degrade natural resources like fish. And also, various land‐ and water‐use activities by humans degrade and impact the quantity and quality of lake water and the fishery resource in water bodies is significantly affected due to excessive abstraction of water for irrigation, land degradation and deforestation. These issues were also discussed by [ 94 , 95 , 96 , 97 , 98 , 99 , 100 , 101 ].

Lakes in Ethiopia are sources of fish but highly degraded, mainly due to a lack of sense of ownership, poor policy implementation, and uncoordinated activities. Human pressures such as water withdrawal and land use change shrink lakes and decline the quality of water, which directly or indirectly affect the lives of fish in water bodies. Deforestation in the fish catchment also caused silt deposits from erosion, soil erosion and land erosion and increased the turbidity of the lake water, which suspects the sustainability of natural resources, including fish. Fish stock decline in Ethiopia is caused by the above-mentioned problems and other factors like excessive fishing effort well beyond the stock potential, destructive fishing gears and methods, small-sized mesh that captures immature fish, weak management and extension systems The result is supported by [ 74 , 102 , 103 , 104 ]

3.5 Collective action in fishery resource management and its challenges in Ethiopia

Natural resources provide direct uses, aesthetic pleasure, and help as input but their degradation affects the livelihood of those who depend on it but in order to sustain the services of the sector, the role the collectives is not underestimated. Poor links between natural resource property right, conservation and management and their collective action through providing proper policy and technology adoption resulted in less improvement in food security, economic growth, poverty reduction and environmental sustainability. Collective market development, the government of fishery, collective incentive establishment through improving management and providing economic incentives are also depressed and caused the potential impacts of climate change on fisheries resources in Ethiopia. Collective action problems of fishery management and natural resource property rights were discussed by [ 49 , 56 , 105 , 106 ].

The source of fisheries in Ethiopia is exclusively inland water bodies, where different groups of stakeholders engaged in fishery production. Groups commonly involved in catching fish from lakes lack the ability to achieve a common goal as they could have different interests, heterogeneous understanding and skills, mistrust each other, lack management and law enforcement, lack general awareness and scientific information about protecting both water and fisheries [ 75 , 77 ]. The most significant problems observed along the fish collective challenges in Ethiopia are a lack of collaboration of government and stakeholders as different water bodies are used openly by the societies around the water, which need government intervention to regulate appropriate policies and strategies for strengthening the collective actors’ cooperation. But the current fish collectives’ activities in Ethiopia are challenged due to inefficient fishing gear, poor post-harvest handling, low prices, and a lack of markets, causing under-performances in fish production [ 107 ]. [ 108 ] also discussed that less cooperation from different fishery stakeholders like the government, research centers and non-governmental organizations resulted in low sustainability of fishery production management in Ethiopia.

Ethiopia is endowed with enormous freshwater resources like lakes, rivers and streams, offering rich fishing opportunities for fishermen. But policies are weak to effectively exploit, develop, conserve and utilize these enormous fishery resources, which indicate the fishery resources in the country remain exemplary for backward fish production and a less coordinated collective that is not well organized and generates expected income from the sector. [ 78 ] discussed collectives’ contribution to creating and enforcing awareness through formulating and enacting policies for actors like fishermen, local communities, government bodies and others by monitoring and evaluating the daily activities undertaken around lakes.

Moreover, in the country, applying collective action in fishery management is being challenged by a lack of commitment to protecting environmental degradations. These issues are caused by pollution of water bodies, the absence of strengthened collectively organizing local communities and empowering them, poor policy legislation for regulating the use and access of resources through limiting fishing, and a lack of awareness-creating training. The difference in perception of collective members in fishery management, its expected incentive return, communities economic and power variations, characteristics of fishery users, and their behavioral relationship with the fishery are immediate causes for the difficulty of organizing communities to engage in fishery collective action in the country. Another important issue is the unfair balance between what users contribute and what gets shared, which creates competition between each actor and leads to conflict,  thereby weakens the association of collective action. Weak relationships between the users of fisheries and other livestock-based organizations, their inability to make collective decisions, and shift to development organizations are another problem of collective action in fishery management that has affected its success in Ethiopia.

4 Conclusion and suggestions

Ethiopia is a country with good climatic conditions, various ecological variations and topologies, and endowed substantial water bodies and diversified wetlands such as rivers, lakes, marshes, natural or artificial ponds (reservoirs), floodplains, and swamps. These resources are serving as habitat for different species of fish and have created sustained opportunities for the production of fisheries, which is a promise for the sustainability of the fisheries sector. However, management of fishery resources through collective action is backward and didn’t bring the expected outcome. The problems are caused by a lack of coordination between fish users and other supportive agencies, as well as internal and external factors mostly caused by economic, social, political and technological factors. Absence of concrete management in formulating rules and regulations and biophysical variations within the community also consequently affected the organization of local communities in collective action and their engagement in tangible and practical activities for fishery management in Ethiopia. Fish exploitation, methods and time of fishing, water pollution, and environmental pollution are important challenges of fish production in the country.

The problems associated with natural resources like fisheries become big when we fail to undertake collective action and overcome collective action problems found within the resources. These  mainly affect the poor farmers who depend on the fishery sector for their lives and need protection from the government, NGO’s, religious leaders and cooperated individuals when they become together in order to save the resource from damage and expect a jointly desired outcome from the resources. In order to realize it, collective action plays an important role. The way actors in collective action organize and how they work together in the fishery sector through contributing efforts and expecting desired outcomes can determine the sustainability of the resources. When collective action in fishery resources is handled properly, the resources cannot be exposed to exploitation, and all the users of the resources can be beneficiaries, which can be achieved through reducing conflicts in using the resources, solving the problems in collective action; especially on the expected benefit/outcome from the resources, properly managing the actors in collective actions, and working with institutions who can contribute to the management of fishery resources. Actors in collective action may come from different areas, such as the level of living standard, religion, politics, cultures, knowledge, and norms, and as they manage their differences, the protection of the resource can be strengthened. Additionally, leaders in collective action initiate the cooperation of the members and enable them to intend for the desired future outcome of the resources.

The efforts of all stakeholders in protecting and adding value to the environment will contribute to the protection fishery resources, increase their production, and help to sustain their sustainability. The lives and production of fish resources depend on water bodies and expansion of aquacultures in Ethiopia also changes the current fish production challenges and helps in keeping fish species, increasing their production, and providing the expected returns. Moreover, fish resources are considered open-access resources, and everybody tries to get access to fish resources, which creates overexploitation of the resource. So, the critical policy implications of this review study are that organizing the local community in collective action through providing them reasonable services and involving them in the fishery sector to control fish catchment will minimize the current loss in fishery sector. Improving the joint collaboration between fish users, local communities, government institutions and development agents also helps to ensure the sustainable protection and production of fish and achieve the continuity and sustainability of the resources for the future in Ethiopia.

Data availability

Not applicable.

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I would like to thank both the editors of the journal and the reviewers for their constructive comments and suggestions, which contributed to the modification of the overall parts of this review paper.

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Zenbaba, O.S. Collective action in fishery resource management and its challenges in Ethiopia: a review. Discov Food 4 , 42 (2024). https://doi.org/10.1007/s44187-024-00123-6

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