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Strategic decision making within Chinese firms: The effects of cognitive diversity and trust on decision outcomes

Bradley J. Olson, Yongjian Bao and Satyanarayana Parayitam

Journal of World Business, 2007, vol. 42, issue 1, 35-46

Abstract: Basing the hypotheses on group process theory, the effects of cognitive diversity on commitment and decision quality were examined, as well as the moderating effects of cognition-based and affect-based trust on cognitive diversity and decision outcomes. Using a survey of 252 Mainland Chinese executives from different firms, it was found that cognitive diversity has a strong negative relationship with commitment and decision quality. In addition, results show that affect-based and cognition-based trust have moderating effects on cognitive diversity and decision outcomes.

Date: 2007
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