Political Behavior Does Not (always) Undermine Strategic Decision-Making: Theory And Evidence

Abstract

Political behavior pervades strategic decision-making, often damaging decision quality and undermining organizational performance. However, little is currently known about how top management teams (TMTs) cope with such behavior. To address this major shortfall, we draw on the upper echelons literature to advance a contingent account of the factors that differentiate well-functioning and dysfunctional TMTs. Focusing on the psychological context surrounding the TMT, we theorize that cognitive consensus, power decentralization, and behavioral integration are key generative mechanisms that enable TMTs to countermand the potentially deleterious consequences of political behavior. We corroborate o..