Strategic Decision Making: The Effects of Cognitive Diversity, Conflict, and Trust on Decision Outcomes

Abstract

Basing their hypotheses on information processing theory, the authors incorporate important group processes within strategic decision making. They examine the interrelationships of cognitive diversity, task conflict, and competence-based trust and their effects on decision outcomes. Their survey includes top management teams from 85 U.S. hospitals. They found that cognitive diversity has a strong positive relationship with task conflict and that competence-based trust strengthens this relationship. In addition, these results suggest that task conflict mediates the effects of cognitive diversity on decision outcomes.

Strategic decision quality in Flemish municipalities

“…Items concerning SP formality and stakeholder participation were incorporated into the survey for the chief planner because the chief planner is best informed on the process characteristics of the SP process (Poister and Streib, 2005;Poister et al, 2013). Items concerning SDQ were sent to both the chief planner and other planning team members because multiple informants need to be asked to avoid single-informant bias (Olson et al, 2007). As such, our study utilizes single-informant data to measure the independent variables and multiinformant data to measure the dependent variable, thus limiting potential issues of common source bias.…”

“…The dependent variable (SDQ) was measured with Olson et al's six items (Cronbach's alpha = 0.859): overall quality; effect and results of the plan; the range of issues addressed; whether the plan is well structured; clearly elaborated; and expressed in depth (Olson et al, 2007). The first independent variable (SP formality) was measured with the four items presented by Poister et al (2013) (see table 1).…”

“…We examined these elements in relation to plans' strategic decision quality (SDQ)-the extent to which a strategic plan is based on qualitative and informed strategic decisions, rather than simply being an off-the-shelf compliance document (Olson et al, 2007). Data were gathered from 89 Flemish municipalities that had been required to adopt SP.…”

Strategic Risk Management

“…In particular, when "solving complex, non-routine problems, groups are more effective when composed of individuals having a variety of skills, knowledges, abilities and perspectives" (Bantel and Jackson, 1989: 109). Therefore, literature on employee participation in decisionmaking has it for many years now that cognitive diversity positively influences decision-making (Amason and Schweiger, 1994;Bantel and Jackson, 1989;Olson, Parayitam, and Bao, 2007).…”

Caractéristiques et dynamique de l’équipe dirigeante dans une jeune entreprise en hypercroissance

“…Deux membres d'une équipe aux expériences fonctionnelles identiques peuvent, en effet, différer dans leurs visions cognitives, en fonction de leurs buts et de leurs valeurs (Olson, Parayitam et Bao, 2007) ou selon les mécanismes à l'oeuvre dans les équipes. Un certain nombre d'auteurs (Kilduff et al, 2000 ;Carpenter et al, 2004 ;Peterson et al, 2003 ;Olson et al, 2007) vont, dès lors, dans des modèles de seconde génération, plus dynamiques et cognitifs, aller au-delà de la seule démographie de l'équipe, pour s'intéresser aux processus de fonctionnement de l'équipe et à des variables psychologiques, telles que la satisfaction des membres, le degré d'adhésion aux valeurs, la distribution du pouvoir politique intra-équipe (Kilduff et al, 2000 ;Carpenter et al, 2004 ;Greve et Mitsuhashi, 2008) et la confiance intragroupe (Olson et al, 2007), ou encore aux critères de sélection et aux systèmes d'incitations (Lin et Shih, 2008). Au-delà des seules caractéristiques démographiques, c'est Revue internationale P.M.E., vol.…”