Agreement-seeking behavior, trust, and cognitive diversity in strategic decision making teams

Abstract

Purpose The purpose of this paper is to investigate the effect of three important group process variables, namely, agreement-seeking behavior, group trust, and cognitive diversity, on decision outcomes. In addition, it seeks to examine the role of process conflict as a moderator in the relationship between agreement-seeking behavior and team effectiveness; agreement-seeking behavior and decision commitment; cognitive diversity and team effectiveness; and cognitive diversity and decision commitment. Design/methodology/approach Using a structured survey instrument, this paper gathered data from 160 students enrolled in a strategic management capstone course that features strategic decision making in a simulated business strategy game. The data from 41 teams were collected from the student population using a carefully administered instrument, and the data were aggregated only after appropriate inter-rater agreement tests were run. Findings Results show that the group process variables are positively related to decision outcomes. The data support the view that process conflict acts as a moderator in the relationship between agreement-seeking behavior and team effectiveness and decision commitment. Further, the results support that cognitive diversity has a positive impact on decision commitment and team effectiveness. Process conflict, which acts as a deterrent, is outweighed by the presence of agreement-seeking behavior. Research limitations/implications Since the present research is based on self-report measures, the limitations of social desirability bias and common method bias are inherent. However, sufficient care is taken to minimize these limitations. The research has implications for both the conflict management and strategic decision-making process literatures. Practical implications This study contributes to both practicing managers and the strategic management literature. The study suggests that administrators should select those teams who are prone to agreement-seeking behavior; and team members who trust one another. Administrators need not unduly avoid process conflict because diversity in opinions and thinking and agreement-seeking behavior outweigh the negative effects of process conflict. Social implications The findings from the study will be useful for creating congenial social environment in the organizations. Originality/value This study provides new insights about the previously unknown effects of process conflict in strategic decision-making process.

Cognitive Diversity and Creativity: The Moderating Effect of Collaborative Climate

“…Regarding the impact of cognitive diversity on performance ; it has been shown that cognitive diversity in work group can contribute to many positive outcomes, such as minimizing debiasing decision making (Meissner & Wulf, 2017) and improving decision quality (Parayitam & Papenhausen, 2016). An experimental research verified that decision errors decrease as the number of cognitive styles increase (West & Dellana, 2009).which in turn, enhance creative formulations of responses ( Hambrick, Cho, & Chen, 1996).…”

“…since heterogeneity in terms of both idea generators (Innovators) and idea codifiers and organizers (Adapters) important for creativity ( Kurtzberg, 2005). Through the creativity process, members will have the benefit of getting a variety of information, thoughts and ideas because of the diversity in the functional backgrounds and educational backgrounds of other team members (Parayitam & Papenhausen, 2016). Other scholars agreed that homogeneity is preferred for team performance; they describe the role of group cohesion for enhancing coordination and thus team outcomes (King & Anderson, 1990).…”

“…Otherwise, according to the information processing theory; individuals exchange, process, evaluate, and interpret information from each other before arriving at solutions (Galbraith, 1973). Therefore, Teams have the advantages of gathering and processing a variety of information because of the diversity in the functional backgrounds, educational backgrounds, and cultural backgrounds embedded in the team (Parayitam & Papenhausen, 2016). it seems that the cognitive diversity can foster creativity by increasing the chance of brainstorming and having a variety of ideas, perspectives, knowledge, values and cognitive resources regarding the problem-solving (Shin, et al, 2012;Horwitz & Horwitz, 2007).…”

“…with the abundant of cognitive resources; the individual -as a member in a team work-is likely to generate new ideas based on the way he/she exploits various thoughts and ideas of other team members to generate novel ideas (Somech & Drach-Zahavy, 2013;Wang, Kim, & Lee,2016). Accordingly, Scholars indicated that cognitive diversity is likely to enrich the knowledge pool and integration of different ideas from other members and thus creativity (Somech & Drach-Zahavy, 2013;Parayitam & Papenhausen, 2016;Wang, et al,2016;Shin, et al,2012).…”

Conflito Cognitivo Na Decisão Estratégica De Equipes De Direção Em Pequenas Empresas

“…vista (Jehn, 2008;Loughry & Amason, 2014). Nas equipes de direção, esse tipo de conflito é comumente considerado benéfico por levar os codirigentes a considerar diferentes contribuições, perspectivas e possibilidades de solução na tomada de decisões (Weingart et al, 2015;Parayitam et al, 2016;Hjerto et al, 2017). Dado o considerável potencial benéfico do conflito cognitivo na tomada de decisão, faz-se promissor e atraente investigá-lo com vistas a esclarecer sua ocorrência e consequências, particularmente na decisão estratégica de PE (Behfar, Mannix, Peterson & Trochim, 2010;Todorova, Bear & Weingart, 2014;Tjosvold, Wong & Feng Chen, 2014;Weingart et al, 2015).…”