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Decision Making in Cross‐Functional Teams: The Role of Decision Power*
Author(s) -
Cui Zhijian
Publication year - 2016
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/deci.12188
Subject(s) - outcome (game theory) , structuring , veto , supervisor , stochastic game , process (computing) , seniority , computer science , process management , business , power (physics) , knowledge management , operations research , microeconomics , economics , management , mathematics , engineering , political science , finance , politics , law , aerospace engineering , operating system , physics , quantum mechanics
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.