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

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  • 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
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