Decision Making in Cross‐Functional Teams: The Role of Decision Power*. (28th September 2015)

• Record Type: Journal Article
• Authors: Cui, Zhijian
• Is Part Of: Decision sciences. Volume 47:Number 3(2016:Jun.)
• Page Start: 492
• Page End: 523
• Publication Date: 2015-09-28
• Subjects: cross‐functional team -- decision‐making process -- decision power -- game theory -- stakeholder management; Decision making -- Periodicals; Policy sciences -- Periodicals; 658.40305
• DOI: 10.1111/deci.12188
• Languages: English
• ISSNs: 0011-7315

Abstract

ABSTRACT: Through a series of game‐theoretical models, this study systematically examines decision making in cross‐functional teams. It provides a framework for the design of an organization‐specific decision‐making process and for the alignment of a team's microdecision with the "optimal" decision that maximizes the firm's payoff. This study finds that even without changing the team leader, firms could change and even dictate the team's microdecision outcome via adjusting the team member's seniority, empowering team members with veto power or involving a supervisor as a threat to overrule the team decision. This finding implies that to reposition products in the marketplace, structuring cross‐functional teams' microdecision‐making processes is essential.