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

Abraham Carmeli, Zachary Sheaffer, Meyrav Yitzack Halevi

Research output: Contribution to journalArticlepeer-review

39 Scopus citations

Abstract

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.

Original languageEnglish
Pages (from-to)696-714
Number of pages19
JournalPersonnel Review
Volume38
Issue number6
DOIs
StatePublished - Sep 2009
Externally publishedYes

Keywords

  • Decision-making
  • Israel
  • Organizational performance
  • Participative management
  • Senior management
  • Teams

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