Mediating effect of team trust on the influence of top management team (TMT) processes against HRM decision quality and satisfaction performance

Abstract

Purpose The purpose of this paper is to test the mediating role of top management team (TMT) team trust in examining the relationship between team processes (internal and external) and human resource management (HRM) decision performance (quality and satisfaction) in the context of the People’s Republic of China. Design/methodology/approach The sample data of this study include 524 team members from 76 TMTs in east China’s Shanghai, Jiangsu, Zhejiang, Anhui provinces. IBM SPSS AMOS 22.0 software was employed for the data analysis. Findings The study finds that TMT internal and external processes have significant positive effects on HRM decision quality and satisfaction. The study further finds that TMT team trust partially mediates the relationship between TMT processes (internal and external processes) and HRM decision quality and satisfaction. Practical implications This research provides useful insights into the role of TMT team trust in enhancing managerial decision performance. Originality/value This study is among the limited studies that explore the influence of team trust in the relationship between TMT processes (internal and external processes) and HRM decision quality and satisfaction among TMTs in China. This study has extended TMT knowledge in mainstream management with guidelines on how to enhance organizational decision performance.

Developing Sustainable Decision Performance for Science and Technology Industries in China

“…The sustainable SDMP is a process in which top management teams make imperative and pragmatic sustainable business plans through strategic analysis of the complex internal and external environments of the organization [3]. Scholars are focusing on the process of strategic decision-making behavior characteristics in two related research aspects: Procedural rationality and political behavior [18,19].…”

“…Among them, the quality of decision-making substantively contributes to the results of strategic decision-making in the realization of the sustainable goals and visions of the organization, emphasizing the process and outcomes of strategic decision-making. Decision satisfaction refers to the satisfaction degree of TMT decision-makers' satisfaction through the process of decision making, their willingness to take the initiative to implement strategic decisions and their subjective satisfaction with the sustainable results of the implementation of decisions [3,10]. It emphasizes the individual attitude of TMT members toward the results of strategic decisions.…”

“…The science and technology innovation enterprise's sustainability and survival in the competitive environment has become increasingly complex, placing pressure on the ability of the enterprise's TMTs to respond flexibly to the continually changing environment [1][2][3]. As such, scholars and practitioners have increasingly become involved with how to develop fast and effective sustainable strategic decision-making process (SDMP) models for the science and technology enterprise's TMT to reach a strategic consensus in the decision-making [3,4]. TMT is a small group of related top management teams (mainly including the chairperson, general manager, deputy general manager, and top managers) who are responsible for making strategic developmental and business decisions in an organization with significant control powers over the operation and management of the enterprise.…”

“…As the enterprise's human agents, TMT condenses the organization's crucial intellectual and right capitals as the primary carrier of the organizational system and technical and strategic innovation, which directly serve as the primary decision-makers for sustainable enterprise development [2,5]. Research suggests that a team has complementarity and identity with a stronger decision-making function than a single manager approach when considering sustainable decision performance [3,6].…”

“…While each "interpretation" attempts to outline the definition of "what are the SDMPs," the meaning of each perspective seems reasonable and one-sided, which to some extent, increases the ambiguity of the concept of the SDMPs and how it impacts sustainable decision performance. Moreover, the literature on the SDMP has mainly focused on the impact of TMT social psychological process, the role of situational variables [17], and team processes [3] of sustainable decision performance, e.g., [15,18], without considering the team-wide means through which TMTs' SDMPs influence sustainable decision performance.…”