Decision Styles of Corporate Leaders: Do Differences Make a Difference?

Abstract

Ineffective decision making at the top rungs of organizations is a perennial concern, yet empirical research into the decision styles of corporate leaders is scant. Conceptually sound and psychometrically validated constructs for alternative decision styles of corporate leaders are rare. This study develops and validates a multi-dimensional measure of different decision styles used by corporate leaders. Structural equation modeling is used to examine if different decision styles are associated with different performance outcomes for strategic decisions related to new opportunities. The three dimensions of decision styles evidence convergent and discriminant validity in a sample of 100 Corporate Leaders. In addition, the different decision styles relate differently with individual and organizational outcomes. Surprisingly, the integrative decision style achieves satisfactory psychometric properties but is inert to performance outcomes. Possible directions for future research are also discussed.

Keywords: Innovation, Corporate Leadership, Managerial Cognition, Decision Making