A Framework for Strategic Decision Making and Performance among Chinese Managers

Vincent Cheng

Jo Rhodes

Peter Lok 

Keywords: Chinese Culture, Strategic Decision-Making, Organizational Performance, Collective Orientation, Guanxi

The Study: This research examined how Chinese cultural values shape strategic decision-making processes and affect organizational performance. An integrative framework was developed to explore the interplay between cultural characteristics, decision-making styles, and performance outcomes among overseas Chinese managers. Data were collected from a random sample of 204 business managers.

Main Findings: Two primary pathways emerged. The “cognitive-speed” pathway shows that managers use holistic thinking, tacit knowledge, personal networks, and intuition to accelerate decision-making, which enhances performance. The “social-political” pathway indicates that collectivism and guanxi foster political behavior oriented toward harmony and shared objectives, reducing dysfunctional conflict and supporting performance. Other cultural factors initially hypothesized (e.g., locus of control and hierarchy) did not significantly influence outcomes.

Practical Implications: Organizations operating in Chinese cultural contexts may benefit from strategic practices that encourage rapid, experience-based decision-making, relationship-building, and collaborative conflict management. Cultural elements such as guanxi and collective orientation can strengthen decision quality and contribute to improved organizational performance.

Reference: Cheng, V., Rhodes, J., & Lok, P. (2010). A framework for strategic decision making and performance among Chinese managers. The International Journal of Human Resource Management, 21(9), 1373–1395. https://doi.org/10.1080/09585192.2010.488434

Cheng 2010.pdf

Download PDF • 186KB