Antecedents and consequences of managerial decision-making styles in the Arabian Gulf

Abstract

Purpose This paper aims to examine managerial decision-making approaches, their antecedents and consequences in the Arabian Gulf context. Using recent survey data, the study offers a critical assessment of prevailing myths about decision-making styles in the Arabian Gulf. Design/methodology/approach Survey data were collected from a sample of 432 managers working in public and private sector companies in the United Arab Emirates (UAE). A combination of statistical techniques including confirmatory factor analysis (CFA) and hierarchical regression analysis was used to test research hypotheses. Findings The findings of this study question the myth that UAE or Gulf managers mostly pursue consultative and participative styles of management. Most UAE managers continue to practice an autocratic and a pseudo-consultative style of decision-making, undermining the value of employee input in the decision-making process. The data revealed a strong negative relationship between autocratic management style and a range of personal and organizational outcomes such as job satisfaction, organizational commitment, organizational citizenship behavior, performance and innovative human resource management practices pertaining to work-family life balance and diversity programs. Most employees perceived autocratic management style as a major source of job stress, absenteeism and turnover. Socio-demographic characteristics of managers and their work organizations, considered as antecedents of decision-making styles, played a limited role in shaping decision-making approaches or their consequences. Globalization and associated socio-cultural changes that UAE and other Gulf region countries have experienced over the past two decades seem to have only a marginal impact on decision-making styles. Research limitations/implications Use of perceptual survey data places some constraints on the generalizability of our findings. Future research may address this issue with multiple data sources including an in-depth case study. Practical implications The findings of this research should be of special interest to both domestic and multinational companies in seeking alignment of their management approaches with the emerging competitive business environment in UAE and other Gulf countries. Theoretically, the paper documents the value of the continuum theory of managerial behavior in UAE and the Arabian Gulf context. Originality/value The study represents a first major effort to develop and test a comprehensive conceptual model of antecedents and consequences of managerial decision-making styles in UAE, which may be extended to other countries in the Arabian Gulf region. The value-added contribution of the study may be seen in its critical analysis of prevailing beliefs and assumptions about management practices in the Arabian Gulf.