Strategic decision-making in the healthcare industry: the effects of physician executives on decision outcomes

Purpose - Research on strategic decision-making has emphasized the importance of team decision-making as it brings the benefits of synergy. Literature on healthcare is silent on the role of professional doctors in the strategic decision-making process and their impact on decision outcomes. The purpo...

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Bibliographic Details
Published in:Management research news 2007-04, Vol.30 (4), p.283-301
Main Authors: Parayitam, Satyanarayana, Phelps, Lonnie D, Olson, Bradley J
Format: Article
Language:English
Subjects:
Chief executive officers
Cognition & reasoning
Cognitive ability
Decision making
Executives
Health care industry
Hospitals
Hypotheses
Management science
Managerial skills
Physicians
Professionals
Statistical analysis
Strategic management
Studies
Surgery
Teams
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Summary:Purpose - Research on strategic decision-making has emphasized the importance of team decision-making as it brings the benefits of synergy. Literature on healthcare is silent on the role of professional doctors in the strategic decision-making process and their impact on decision outcomes. The purpose of the present paper is to empirically examine the outcomes of decisions when physician executives were involved in strategic decision-making process in healthcare organizations.Design methodology approach - Using a structured survey instrument, this paper gathered data from 361 senior executives from 109 hospitals in USA and analyzed the data using regression techniques on whether the presence of physicians in strategic decision-making processes enhanced decision quality, commitment, and understanding.Findings - Results showed the presence of professional doctors in the decision-making process enhances commitment and decision quality in healthcare organizations.Research limitations implications - Only the healthcare industry was considered. Self-report measures may have some inherent social desirability bias.Practical implications - This study contributes to both practicing managers as well as to strategic management literature. This study suggests that healthcare administrators need to engage physician executives in strategic decision-making to have successful decision outcomes.Originality value - To the extent strategic decision-making process is similar in other industries, the findings can be generalizable across other industries.
ISSN:0140-9174
2040-8269
1758-6135
2040-8277
DOI:10.1108/01409170710736329