IDEAS home Printed from https://ideas.repec.org/a/eee/worbus/v42y2007i1p35-46.html
   My bibliography  Save this article

Strategic decision making within Chinese firms: The effects of cognitive diversity and trust on decision outcomes

Author

Listed:
  • Olson, Bradley J.
  • Bao, Yongjian
  • Parayitam, Satyanarayana

Abstract

Basing the hypotheses on group process theory, the effects of cognitive diversity on commitment and decision quality were examined, as well as the moderating effects of cognition-based and affect-based trust on cognitive diversity and decision outcomes. Using a survey of 252 Mainland Chinese executives from different firms, it was found that cognitive diversity has a strong negative relationship with commitment and decision quality. In addition, results show that affect-based and cognition-based trust have moderating effects on cognitive diversity and decision outcomes.

Suggested Citation

  • Olson, Bradley J. & Bao, Yongjian & Parayitam, Satyanarayana, 2007. "Strategic decision making within Chinese firms: The effects of cognitive diversity and trust on decision outcomes," Journal of World Business, Elsevier, vol. 42(1), pages 35-46, March.
    • Handle: RePEc:eee:worbus:v:42:y:2007:i:1:p:35-46
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1090951606000678
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bill Wooldridge & Steven W. Floyd, 1990. "The strategy process, middle management involvement, and organizational performance," Strategic Management Journal, Wiley Blackwell, vol. 11(3), pages 231-241, March.
    2. L. J. Bourgeois, 1980. "Performance and consensus," Strategic Management Journal, Wiley Blackwell, vol. 1(3), pages 227-248, July.
    3. Margaret A Shaffer & David A Harrison & K Matthew Gilley, 1999. "Dimensions, Determinants, and Differences in the Expatriate Adjustment Process," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(3), pages 557-581, September.
    4. Karen A. Bantel & Susan E. Jackson, 1989. "Top management and innovations in banking: Does the composition of the top team make a difference?," Strategic Management Journal, Wiley Blackwell, vol. 10(S1), pages 107-124, June.
    5. Danny Miller & Peter H. Friesen, 1982. "Innovation in conservative and entrepreneurial firms: Two models of strategic momentum," Strategic Management Journal, Wiley Blackwell, vol. 3(1), pages 1-25, January.
    6. Peng, Mike W. & Lu, Yuan & Shenkar, Oded & Wang, Denis Y. L., 2001. "Treasures in the China house: a review of management and organizational research on Greater China," Journal of Business Research, Elsevier, vol. 52(2), pages 95-110, May.
    7. Gerald E. Fryxell & Robert S. Dooley & Wing-Sun Li, 2004. "The Role of Trustworthiness in Maintaining Employee Commitment During Restructuring in China," Asia Pacific Journal of Management, Springer, vol. 21(4), pages 515-533, December.
    8. Mohammed, Susan & Ringseis, Erika, 2001. "Cognitive Diversity and Consensus in Group Decision Making: The Role of Inputs, Processes, and Outcomes," Organizational Behavior and Human Decision Processes, Elsevier, vol. 85(2), pages 310-335, July.
    9. Don Knight & Craig L. Pearce & Ken G. Smith & Judy D. Olian & Henry P. Sims & Ken A. Smith & Patrick Flood, 1999. "Top management team diversity, group process, and strategic consensus," Strategic Management Journal, Wiley Blackwell, vol. 20(5), pages 445-465, May.
    10. Howard Davies & Peter Walters, 2004. "Emergent patterns of strategy, environment and performance in a transition economy," Strategic Management Journal, Wiley Blackwell, vol. 25(4), pages 347-364, April.
    11. Scarborough, Jack, 1998. "Comparing Chinese and Western cultural roots: Why "East is East and..."," Business Horizons, Elsevier, vol. 41(6), pages 15-24.
    12. Martin Kilduff & Reinhard Angelmar & Ajay Mehra, 2000. "Top Management-Team Diversity and Firm Performance: Examining the Role of Cognitions," Organization Science, INFORMS, vol. 11(1), pages 21-34, February.
    13. Guoquan Chen & Chunhong Liu & Dean Tjosvold, 2005. "Conflict Management for Effective Top Management Teams and Innovation in China," Journal of Management Studies, Wiley Blackwell, vol. 42(2), pages 277-300, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lampaki, Antonia & Papadakis, Vassilis, 2018. "The impact of organisational politics and trust in the top management team on strategic decision implementation success: A middle-manager's perspective," European Management Journal, Elsevier, vol. 36(5), pages 627-637.
    2. Jiunyan Wu & Tomoki Sekiguchi, 2020. "A multilevel and dynamic model of intragroup conflict and decision making: application of agent-based modeling," Frontiers of Business Research in China, Springer, vol. 14(1), pages 1-26, December.
    3. Stephanie Schoss & Diemo Urbig & Malte Brettel & René Mauer, 2022. "Deep-level diversity in entrepreneurial teams and the mediating role of conflicts on team efficacy and satisfaction," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1173-1203, September.
    4. Kier, Alexander S. & McMullen, Jeffery S., 2020. "Entrepreneurial imaginativeness and new venture ideation in newly forming teams," Journal of Business Venturing, Elsevier, vol. 35(6).
    5. Annelore Huyghe & Mirjam Knockaert & Evila Piva & Mike Wright, 2016. "Are researchers deliberately bypassing the technology transfer office? An analysis of TTO awareness," Small Business Economics, Springer, vol. 47(3), pages 589-607, October.
    6. Thomas Hutzschenreuter & Julian Horstkotte, 2013. "Performance effects of top management team demographic faultlines in the process of product diversification," Strategic Management Journal, Wiley Blackwell, vol. 34(6), pages 704-726, June.
    7. Zeye Zhang & Liuyong Yang & Xuerong Peng & Zhongju Liao, 2023. "Overseas imprints reflected at home: returnee CEOs and corporate green innovation," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1328-1368, September.
    8. Along Liu & Hefu Liu & Jibao Gu & Meng Chen & Chenglin Jin, 2024. "Business Model Implementation of New Ventures: Linking TMT Process Antecedents, Organizational Culture, and Firm Performance," Entrepreneurship Theory and Practice, , vol. 48(3), pages 826-855, May.
    9. Carlos Arturo Hoyos-Vallejo, 2021. "Decision-making and Effectiveness of Business Results in Times of COVID-19," International Review of Management and Marketing, Econjournals, vol. 11(3), pages 1-12.
    10. Yuan, Wenlong & Bao, Yongjian & Olson, Bradley J., 2017. "CEOs’ ambivalent interpretations, organizational market capabilities, and corporate entrepreneurship as responses to strategic issues," Journal of World Business, Elsevier, vol. 52(2), pages 312-326.
    11. Codou Samba & Daan Van Knippenberg & C. Chet Miller, 2018. "The impact of strategic dissent on organizational outcomes: A meta‐analytic integration," Strategic Management Journal, Wiley Blackwell, vol. 39(2), pages 379-402, February.
    12. Lulu Zhou & Haiyan Huang & Xiaolin Chen & Feng Tian, 2023. "Functional diversity of top management teams and firm performance in SMEs: a social network perspective," Review of Managerial Science, Springer, vol. 17(1), pages 259-286, January.
    13. Keding, Christoph & Meissner, Philip, 2021. "Managerial overreliance on AI-augmented decision-making processes: How the use of AI-based advisory systems shapes choice behavior in R&D investment decisions," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    14. Radoslaw Nowak, 2019. "The Effects Of Cognitive Diversity And Cohesiveness On Absorptive Capacity," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 1-23, April.
    15. Allen, Mathew R. & George, Bradley A. & Davis, James H., 2018. "A model for the role of trust in firm level performance: The case of family businesses," Journal of Business Research, Elsevier, vol. 84(C), pages 34-45.
    16. Slobodan Perović & Sandro Radovanović & Vlasta Sikimić & Andrea Berber, 2016. "Optimal research team composition: data envelopment analysis of Fermilab experiments," Scientometrics, Springer;Akadémiai Kiadó, vol. 108(1), pages 83-111, July.
    17. Yan Ling & Franz W. Kellermanns, 2010. "The Effects of Family Firm Specific Sources of TMT Diversity: The Moderating Role of Information Exchange Frequency," Journal of Management Studies, Wiley Blackwell, vol. 47(2), pages 322-344, March.
    18. Xiong, Chang & Zheng, Leven J. & Germon, Rony & Susini, Jean-Paul & Chang, Victor, 2021. "Telling “white lies” within the entrepreneurial firm: How rationalized knowledge hiding between founder CEO and founder CTO influences new product development," Journal of Business Research, Elsevier, vol. 136(C), pages 431-439.
    19. Elbanna, Said, 2018. "The constructive aspect of political behavior in strategic decision-making: The role of diversity," European Management Journal, Elsevier, vol. 36(5), pages 616-626.
    20. Christopher Robertson & Bradley Olson & K. Gilley & Yongjian Bao, 2008. "A Cross-Cultural Comparison of Ethical Orientations and Willingness to Sacrifice Ethical Standards: China Versus Peru," Journal of Business Ethics, Springer, vol. 81(2), pages 413-425, August.
    21. Haiyun Yu & Yanjie Shang & Nan Wang & Zhenzhong Ma, 2019. "The Mediating Effect of Decision Quality on Knowledge Management and Firm Performance for Chinese Entrepreneurs: An Empirical Study," Sustainability, MDPI, vol. 11(13), pages 1-15, July.
    22. Meissner, Philip & Wulf, Torsten, 2017. "The effect of cognitive diversity on the illusion of control bias in strategic decisions: An experimental investigation," European Management Journal, Elsevier, vol. 35(4), pages 430-439.
    23. Wrona, Thomas & Ladwig, Tina & Gunnesch, Markus, 2013. "Socio-cognitive processes in strategy formation – A conceptual framework," European Management Journal, Elsevier, vol. 31(6), pages 697-705.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Juan Pablo Diánez-González & Carmen Camelo-Ordaz, 2016. "How management team composition affects academic spin-offs’ entrepreneurial orientation: the mediating role of conflict," The Journal of Technology Transfer, Springer, vol. 41(3), pages 530-557, June.
    2. Codou Samba & Daan Van Knippenberg & C. Chet Miller, 2018. "The impact of strategic dissent on organizational outcomes: A meta‐analytic integration," Strategic Management Journal, Wiley Blackwell, vol. 39(2), pages 379-402, February.
    3. Ramos-Garza, Claudia, 2009. "TMT strategic consensus in Mexican companies," Journal of Business Research, Elsevier, vol. 62(9), pages 854-860, September.
    4. van den Oever, Koen, 2017. "Uncharted waters : A behavioral approach to when, why and which organizational changes are adopted," Other publications TiSEM 0136c8c2-ecdd-4f82-8ca7-d, Tilburg University, School of Economics and Management.
    5. Kellermanns, Franz W. & Walter, Jorge & Floyd, Steven W. & Lechner, Christoph & Shaw, John C., 2011. "To agree or not to agree? A meta-analytical review of strategic consensus and organizational performance," Journal of Business Research, Elsevier, vol. 64(2), pages 126-133, February.
    6. Deniz Ucbasaran & Andy Lockett & Mike Wright & Paul Westhead, 2003. "Entrepreneurial Founder Teams: Factors Associated with Member Entry and Exit," Entrepreneurship Theory and Practice, , vol. 28(2), pages 107-128, March.
    7. Kaiser, Ulrich & Müller, Bettina, 2013. "Team Heterogeneity in Startups and its Development over Time," IZA Discussion Papers 7284, Institute of Labor Economics (IZA).
    8. Rapert, Molly Inhofe & Velliquette, Anne & Garretson, Judith A., 2002. "The strategic implementation process: evoking strategic consensus through communication," Journal of Business Research, Elsevier, vol. 55(4), pages 301-310, April.
    9. M. Díaz-Fernández & M. González-Rodríguez & Biagio Simonetti, 2015. "Top Management Teams’ demographic characteristics and their influence on strategic change," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(3), pages 1305-1322, May.
    10. G. Page West III & G. Dale Meyer, 1998. "Temporal Dimensions of Opportunistic Change in Technology-Based Ventures," Entrepreneurship Theory and Practice, , vol. 22(2), pages 31-52, January.
    11. Salvatore Sciascia & Pietro Mazzola & Francesco Chirico, 2013. "Generational Involvement in the Top Management Team of Family Firms: Exploring Nonlinear Effects on Entrepreneurial Orientation," Entrepreneurship Theory and Practice, , vol. 37(1), pages 69-85, January.
    12. Parayitam, Satyanarayana & Dooley, Robert S., 2009. "The interplay between cognitive- and affective conflict and cognition- and affect-based trust in influencing decision outcomes," Journal of Business Research, Elsevier, vol. 62(8), pages 789-796, August.
    13. Veltrop, D.B. & Hermes, C.L.M. & Postma, T.J.B.M. & de Haan, J., 2012. "A tale of two factions," Research Report 12001-HRM&OB, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    14. Patzelt, Holger & zu Knyphausen-Aufseß, Dodo & Fischer, Heiko T., 2009. "Upper echelons and portfolio strategies of venture capital firms," Journal of Business Venturing, Elsevier, vol. 24(6), pages 558-572, November.
    15. repec:dgr:rugsom:12001-hrmob is not listed on IDEAS
    16. Pierpaolo Parrotta & Dario Pozzoli & Mariola Pytlikova, 2014. "The nexus between labor diversity and firm’s innovation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(2), pages 303-364, April.
    17. WestIII, G. Page & Meyer, G. Dale, 1998. "To agree or not to agree? consensus and performance in new ventures," Journal of Business Venturing, Elsevier, vol. 13(5), pages 395-422, September.
    18. Sangyun Han & Soo Kyung Park & Kyu Tae Kwak, 2021. "Workforce Composition of Public R&D and Performance: Evidence from Korean Government-Funded Research Institutes," Sustainability, MDPI, vol. 13(7), pages 1-17, March.
    19. Tingko Lee & Wei‐Tsung Liu & Jun‐Xian Yu, 2021. "Does TMT composition matter to environmental policy and firm performance? The role of organizational slack," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 196-213, January.
    20. Mercedes Rodríguez-Fernández & Ana I. Gaspar-González & Eva M. Sánchez-Teba, 2020. "Does Diversity in Top Management Teams Contribute to Organizational Performance? The Response of the IBEX 35 Companies," Social Sciences, MDPI, vol. 9(4), pages 1-16, March.
    21. Sonja Sperber & Christian Linder, 2018. "The impact of top management teams on firm innovativeness: a configurational analysis of demographic characteristics, leadership style and team power distribution," Review of Managerial Science, Springer, vol. 12(1), pages 285-316, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:worbus:v:42:y:2007:i:1:p:35-46. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.