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Does participatory decision-making in top management teams enhance decision effectiveness and firm performance?

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Purpose ‐ The purpose of this paper is to examine how participatory decision-making processes in top management teams (TMT) influence strategic decision effectiveness and firm performance. Design/methodology/approach ‐ Data from 94 TMTs are collected from structured surveys. Each firm's CEO provides data on strategic decision effectiveness, and a senior executive member of the TMT provided data on participatory decision-making processes and firm performance. Findings ‐ Results show that participatory decision-making processes in the TMT are positively associated with decision effectiveness, but there is both a direct and an indirect relationship (through decision effectiveness) between participatory decision-making processes and firm performance. Originality/value ‐ This paper sheds light on the importance of joint decision-making processes among TMT members for improving choices and enhances firm performance.

Keywords: Decision-making; Israel; Organizational performance; Participative management; Senior management; Teams

Document Type: Research Article


Publication date: 2009-09-18

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