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When Should Leaders Share Information with Their Subordinates?

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  • Jordi Blanes I Vidal
  • Marc Möller

Abstract

"We show that when leaders share some of their information with subordinates, decision making is subject to a motivational bias; leaders make the decisions their subordinates want to see. As this bias increases with the quality of the shared information, an improvement of an organization's information might even decrease its efficiency. As a consequence, information sharing is not always optimal. We show however that self-confidence can help the leader to overcome his motivational bias, thus making information sharing more attractive. Conversely, we find that information sharing can help to curb the autocratic tendencies of a self-confident leadership. We conclude that a policy of information sharing and the appointment of a self-confident leadership are most effective when they go hand in hand." Copyright 2007, The Author(s) Journal Compilation (c) 2007 Blackwell Publishing.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Economics & Management Strategy.

Volume (Year): 16 (2007)
Issue (Month): 2 (06)
Pages: 251-283

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Handle: RePEc:bla:jemstr:v:16:y:2007:i:2:p:251-283

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Web page: http://www.kellogg.northwestern.edu/research/journals/JEMS/

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Cited by:
  1. Jordi Blanes i Vidal & Marc Möller, 2013. "Decision–Making and Implementation in Teams," CEP Discussion Papers dp1208, Centre for Economic Performance, LSE.
  2. Benjamin E. Hermalin & Michael S. Weisbach, 2014. "Understanding Corporate Governance Through Learning Models of Managerial Competence," NBER Working Papers 20028, National Bureau of Economic Research, Inc.
  3. Patrick Bolton & Markus K. Brunnermeier & Laura Veldkamp, 2008. "Leadership, Coordination and Mission-Driven Management," NBER Working Papers 14339, National Bureau of Economic Research, Inc.
  4. Yeon-Koo Che & Wouter Dessein & Navin Kartik, 2010. "Pandering to Persuade," Levine's Bibliography 661465000000000197, UCLA Department of Economics.
  5. Gürerk, Özgür & Irlenbusch, Bernd & Rockenbach, Bettina, 2009. "Motivating teammates: The leader's choice between positive and negative incentives," Journal of Economic Psychology, Elsevier, vol. 30(4), pages 591-607, August.
  6. Sergei Guriev & Anton Suvorov, 2010. "Why Less Informed Managers May Be Better Leaders," Working Papers w0142, Center for Economic and Financial Research (CEFIR).

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