A framework for strategic decision-making and performance among Chinese managers

Abstract

This study develops an integrative model that explains the relationship between Chinese culture, managers’ strategic decision making (SDM) processes, and organizational performance. 1200 participants were randomly selected from a business club’s company register, resulting in 204 valid respondents. The results highlighted two significant SDM paths used by managers: (1) The cognitive-speed path, which suggested that Overseas Chinese managers (the Chinese who live outside of Mainland China ) focus on the big picture, draw analogies from past experiences, and use extensive networks to reduce the duration of the decision process. (2)The social-political path which shows that Overseas Chinese managers focus on collective interests, strive to maintain harmony, and to save face whilst using a collaborative style to handle conflict; this approach reduces dysfunctional political behavior, while reinforcing the decision team’s focus on common goals. From these results we concluded that a speedier decision making process (based on intuition, experience and networks) accompanied by the appropriate use of political behavior (that created harmony, through a hierarchical structure, during conflict management) in the Overseas Chinese managers’ strategic decision making process could positively influence organizational performance.