Determinants of executive beliefs: comparing functional conditioning and social influence

Article Abstract:

It is important to understand the variables and methods that affect the organization-related beliefs of executives in the light of the influence of these beliefs on corporate processes and outcomes. A study was therefore conducted to analyze and compare the validity of two sets of arguments about the determinants of executive beliefs pertaining to variables which influence corporate effectiveness. A sample of 371 executives in 58 strategic business units across 26 industries was examined. Results of the study suggest that social influence exerts a moderate but larger impact on upper-management executive beliefs compared to functional conditioning. The social influence that upper-management executives exert on the beliefs of other team members is mediated by the similarity of their functional backgrounds, ages, and tenure within the upper-management group.

Business Methods, Social aspects, Management, Influence, Business planning, Organizational effectiveness, Interpersonal relations, Social interaction

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Cognitive diversity among upper-echelon executives: implications for strategic decision processes

Article Abstract:

Three studies were conducted to determine the impact of strategic diversity among senior executives on their strategic decision processes. Specifically, this research tested two hypotheses positing that cognitive diversity positively affects comprehensiveness of strategic decisionmaking and extensiveness of strategic planning. Findings contradicted commonly held beliefs by showing that executive diversity actually limits, instead of cultivating, comprehensive analyses of existing opportunities and threats as well as exhaustive long-term planning. Therefore, there is an indirect link between executive diversity and firm performance, given that firm performance is associated with comprehensiveness as well as extensiveness of strategic planning.

Decision-making, Decision making, Cognition, Strategic planning (Business)

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Firm and industry as determinants of executive perceptions of the environment

Article Abstract:

A study examined variation in executives' perceptions of organizational environments. In particular, this study investigated how these perceptions are shaped by the top manager's membership in a senior management team or involvement in a specific industry. Findings revealed significant uniformity of perceptions among top management team members within firms as well as within industries. Organizational and industry membership was found to be responsible for about 40% of the variance in individual managers' perceptions of their environment. These results indicate that the firm affiliation and industry membership of managers both affect their perceptions. Implications and limitations are discussed.

Organizational behavior, Industry, Industries

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