Strategic decision processes among senior executives of SEDC companies: a cognitive diversity perspective / Abdullah Abdul Ghani … [et al.]

Abdul Ghani, Abdullah and Mohd. Mokhtar, Sany Sanuri and Ramli, Azahari and Ashari, Hasbullah (2005) Strategic decision processes among senior executives of SEDC companies: a cognitive diversity perspective / Abdullah Abdul Ghani … [et al.]. Malaysian Journal of Quality, 1. pp. 32-44. ISSN 1823-7347

Abstract

In earlier studies involving business organizations in the American free enterprise economy, cognitive diversity among upper-echelon executives was found to inhibit strategic decision processes. Taking cognizance of the consistent results of previous studies about the significant impact of environment on decision processes, we replicated the study by Miller, Burke and Glick (1998) on Malaysia's State Economic Development Corporations - business entities currently operating in controlled and favored environment. It was a cross-sectional study of the descriptive and correlational type involving a total sample size of 130 executives and a participation rate of 53.07% based on proportion of the total number of questionnaire that was duly completed and returned. Our results found that contrary to expectation, cognitive diversity among executives did vary among the various SEDC and such diversity promoted rather than inhibited strategic decision making processes. Since cumulative research findings showed that firm performance was related to both comprehensiveness and extensiveness of the decision making process, our results, like that of the original study, provided another evidence of indirect executive diversity-firm performance relationship. Indeed, we had observed in this study indications that SEDC with high cognitive diversity among their decision-making executives tend to show better financial performance than those with lower cognitive diversity.

Metadata

Item Type: Article
Creators:
Creators
Email / ID Num.
Abdul Ghani, Abdullah
UNSPECIFIED
Mohd. Mokhtar, Sany Sanuri
UNSPECIFIED
Ramli, Azahari
UNSPECIFIED
Ashari, Hasbullah
UNSPECIFIED
Subjects:
Divisions: Universiti Teknologi MARA, Shah Alam > Institute of Quality & Knowledge Advancement (InQKA)
Journal or Publication Title: Malaysian Journal of Quality
ISSN: 1823-7347
Volume: 1
Page Range: pp. 32-44
Keywords: Strategic decision processes; Senior executives; SEDC companies
Date: 2005
URI: https://ir.uitm.edu.my/id/eprint/16171
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16171

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