| This dissertation examined possible relationships among group decision-making processes and outcomes, the interpretation of strategic issues, and collective efficacy. The relationship between collective efficacy and each of the seven steps of Janis' vigilant information processing model is hypothesized to be curvilinear, such that moderate efficacy is more likely to lead to adequate performance of each of the steps, relative to both low and high efficacy. A positive, linear relationship is further hypothesized to exist between collective efficacy and two issue interpretation variables, called positive-gain and controllability. A negative, linear relationship is also hypothesized to exist between collective efficacy and managerial perceptions of risk.; These hypotheses, and others, were tested using 52 student groups participating in a business simulation that requires a strategic response to an industry deregulation. Results suggest that there is a curvilinear relationship between collective efficacy and several of the most important steps in an effective decision-making process, including the extent to which a decision-making group (a) identifies decision objectives, (b) generates a comprehensive list of alternatives, and (c) examines costs, risks, and benefits of the preferred option. Results also partially supported the relationship between collective efficacy and controllability, but are not consistent with a relationship between positive-gain perceptions or risk perceptions. Based on the results, the researcher argues that collective efficacy should be considered an important variable in strategic decision-making models. |
