Top Management Team Political Polarization and Its Implications for Strategic Decision-Making

Abstract

Small teams’ decisions play a major role in shaping business and society. As political differences permeate our lives, their influence is increasingly being felt throughout organizations. Yet, little is known about how executives’ political differences influence the Top Management Team’s decision-making processes. We integrate literatures on executive diversity, political polarization, and small teams to develop a new construct, Top Management Team political polarization, and examine how this team characteristic influences two critical parts of the strategic decision-making process: comprehensiveness and speed. We also propose behavioral integration reduces polarization’s drawbacks, offering improvements to decision-making processes in these polarizing times.