Top Management Team Political Polarization and Its Implications for Strategic Decision-Making

DeBode, Jason D.; Fox, Corey J.; McSweeney, Jordan

doi:10.1177/10464964231152234

Cited by 3 publications

(3 citation statements)

References 119 publications

(219 reference statements)

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“…Studies in this area show that polarized group composition can improve productivity and quality of work outcomes (Xie et al, 2020;Opstrup and Villadsen, 2015;Bogan et al, 2013;D ıaz-Garc ıa et al, 2013). Authors attribute this finding to the fact that polarized work teams require more discussion and need to consider more alternative opinions due to differing viewpoints, which can lead to better decision-making (DeBode et al, 2024;Shi et al, 2019). At the same time, however, a high degree of group polarization can make communication and mutual understanding more difficult.…”

Section: Polarizationmentioning

confidence: 99%

“…The polarization index introduced in this study can be understood in terms of principalagent theory as a measure of how easily the management board can communicate with the supervisory board. A high degree of polarization indicates differences in the composition of the members of the two boards and therefore means that it becomes more difficult to find a common language (DeBode et al, 2024). Accordingly, it can be assumed that polarization also leads to an information gap between the management board and the supervisory board,…”

Section: A Principal-agent Theory Perspectivementioning

confidence: 99%

“…, 2013). Authors attribute this finding to the fact that polarized work teams require more discussion and need to consider more alternative opinions due to differing viewpoints, which can lead to better decision-making (DeBode et al. , 2024; Shi et al.…”

Section: Conceptual Frameworkmentioning

confidence: 99%

See 2 more Smart Citations

Toward an alternative measure of board diversity: an exploratory study on board polarization in German stock exchange-listed companies

Valentowitsch,

Kindig,

Burr

2024

BJM

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PurposeThe effects of board composition on performance have long been discussed in management research using fractionalization measures. In this study, we propose an alternative measurement approach based on board polarization.Design/methodology/approachUsing an exploratory analysis and applying the polarization measure to German Deutscher Aktienindex (DAX)-, Midcap-DAX (MDAX)- and Small Cap-Index (SDAX)-listed companies, this paper applies the polarization index to examine the relationship between board diversity and performance.FindingsThe results show that the polarization concept is well suited to measure principal-agent problems between the members of the management and supervisory boards. We reveal that board polarization is negatively associated with firm performance, as measured by return on investment (ROI).Originality/valueThis exploratory study shows that the measurement of board polarization can be linked to performance differences between companies, which offers promising starting points for further research.

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Section: Polarizationmentioning

confidence: 99%

Section: A Principal-agent Theory Perspectivementioning

confidence: 99%

See 1 more Smart Citation

Toward an alternative measure of board diversity: an exploratory study on board polarization in German stock exchange-listed companies

Valentowitsch,

Kindig,

Burr

2024

BJM

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Self and shared leadership in decision quality: a tale of two sides

Cristofaro

Neck

Giardino

et al. 2023

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PurposeThis study aims to investigate the relationship between shared leadership (SL) and decision quality, utilizing shared leadership theory (SLT) and behavioral decision theory (BDT). The authors will explore the mediating role of “decision comprehensiveness” in the SL–decision quality linkage. Additionally, the authors will examine how individual “self-leadership” and “debate” among team members moderate the relationship between SL and decision comprehensiveness.Design/methodology/approachThe authors tested the hypothesized moderated mediation model using a sample of 506 professionals employed in 112 research and development (R&D) teams, along with their direct managers from large Italian firms. To examine the relationships, the authors employed confirmatory factor analyses and path analyses. In order to address endogeneity concerns, the authors incorporated an instrumental variable, namely delegation, into the analysis.FindingsSL positively influences decision quality, mediated by decision comprehensiveness, where teams include comprehensive information in decision-making. The level of debate among team members positively moderates the SL–decision comprehensiveness relationship. High levels of self-leadership can harm SL by reducing decision comprehensiveness, indicating a downside. However, low or moderate levels of self-leadership do not harm decision comprehensiveness and can even benefit SL.Originality/valueThis is the first work to investigate the relationship between SL and decision quality, shedding light on the mechanisms underlying this association. By integrating SLT and BDT, the authors provide insights into how managers can make higher-quality decisions within self-leading teams. Moreover, this research makes a distinct contribution to the field of self-leadership by delineating its boundaries and identifying a potentially negative aspect within the self-influence process.

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The Impact of Political Polarization on Corporate Decision-Making

Ojha

2023

JPPS

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This paper examines the impact of rising political polarization on corporate decision-making. It explores how a more politically divided landscape influences corporate strategies in areas such as marketing, hiring, and public stances on social issues. The paper investigates the potential consequences of political alignment within leadership teams, including its effect on innovation, risk management, and employee morale. Additionally, it analyzes how consumer behavior is shaped by political views, and how corporations navigate the potential for boycotts and brand loyalty based on political stances. The research aims to provide a comprehensive understanding of the complex interplay between political polarization and corporate decision-making, highlighting both the challenges and potential opportunities that arise in this increasingly divided environment.

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Top Management Team Political Polarization and Its Implications for Strategic Decision-Making

Cited by 3 publications

References 119 publications

Toward an alternative measure of board diversity: an exploratory study on board polarization in German stock exchange-listed companies

Toward an alternative measure of board diversity: an exploratory study on board polarization in German stock exchange-listed companies

Self and shared leadership in decision quality: a tale of two sides

The Impact of Political Polarization on Corporate Decision-Making

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