Relationship between conflict and decision outcomes: Moderating role of trust in strategic decision-making teams

Abstract

Scope and Method of Study: This study examines the interrelationships among conflict, trust, and decision outcomes. Taking information processing perspective as a theoretical base, this study explores the conditions under which conflict during decision making process affect strategic decision making outcomes. In addition to the direct effects, the moderating effect of affect-based trust and cognition-based trust on decision outcomes was examined in this study. Data includes 109 hospitals in health care industry. Multiple regression and moderated regression was utilized to examine the proposed relationships. The researcher examined both moderation and mediation effects.

Findings and Conclusions: The researcher found that cognitive conflict has significant positive relationship with decision quality, understanding, and commitment. However, contrary to what was hypothesized, affective conflict was not significantly related to decision outcomes? Decision quality, understanding, and commitment. Cognitive conflict, as hypothesized, was positively related to affective conflict. It was also found that affect-based trust moderated the relationship between cognitive conflict and affective conflict such that high levels of affect-based trust decreased the strength the relationship between cognitive conflict and affective conflict. Additionally, cognition-based trust moderated the relationship between cognitive conflict and decision outcomes positively. Contrary to what was hypothesized, affective conflict was not a partial mediator between cognitive conflict and decision outcomes. Overall, results suggest that trust among the team members plays an important role in the study of conflict and decision outcomes.