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Strategic decision-making

Author

Listed:
  • Satyanarayana Parayitam
  • Chris Papenhausen

Abstract

Purpose - This paper aims to investigate the effect of cooperative conflict management on agreement-seeking behavior, agreement-seeking behavior on decision outcomes, moderating role of competence-based trust on the relationship between agreement-seeking behavior and decision outcomes, and mediating role of agreement-seeking behavior between cooperative conflict management and decision outcomes. Design/methodology/approach - Using a structured survey instrument, this paper gathered data from 348 students enrolled in a strategic management capstone course that features strategic decision-making in a simulated business strategy game. The data from 94 teams were collected from the student population using a carefully administered instrument. The data were aggregated after running the inter-rater agreement test and the analyzed to test the hypotheses. Findings - The results from the hierarchical regression of the complex moderated mediation model reveal that cooperative conflict management is positively related to agreement-seeking behavior, and agreement-seeking behavior mediates the relationship between cooperative conflict management and decision outcomes. The results also suggest that competence-based trust acts as a moderator in the relationship between agreement-seeking behavior and decision quality; agreement-seeking behavior and team effectiveness, and agreement-seeking behavior and decision commitment. Results also support mediation of agreement-seeking behavior between cooperative conflict management and decision outcomes. Research limitations/implications - The present research is based on self-report measures, and hence, the limitations of social desirability bias and common method bias are inherent. However, adequate care is taken to minimize these limitations. The research has implications for the strategic decision-making process literature. Practical implications - In addition to the strategic management literature, this study contributes to practicing managers. The study suggests that competence-based trust plays a vital role in decision effectiveness. Administrators need to select the members in the decision-making process who have competence-based trust on one another and engage in agreement-seeking behavior. Social implications - The findings from the study help in creating a fruitful social environment in organizations. Originality/value - This study provides new insights about the previously unknown effects of cooperative conflict management and agreement-seeking behavior in strategic decision-making process.

Suggested Citation

  • Satyanarayana Parayitam & Chris Papenhausen, 2018. "Strategic decision-making," Management Research Review, Emerald Group Publishing Limited, vol. 41(1), pages 2-28, January.
    • Handle: RePEc:eme:mrrpps:mrr-12-2016-0285
    DOI: 10.1108/MRR-12-2016-0285
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    Citations

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    Cited by:

    1. Joanna Radomska & Przemysław Wołczek & Letycja Sołoducho-Pelc & Susana Silva, 2019. "The Impact of Trust on the Approach to Management—A Case Study of Creative Industries," Sustainability, MDPI, vol. 11(3), pages 1-16, February.
    2. Ahmad Nasser Abuzaid & Noor Al-Ma’aitah & Yazan Emnawer Al-Haraisa & Khalaf Ibrahim Al-Tarawneh, 2019. "Examining the Impact of Transformational Leadership on the Strategic Decisions Effectiveness of Jordanian Microfinance Companies," International Review of Management and Marketing, Econjournals, vol. 9(2), pages 76-83.

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