The Role of Strategic Consensus in Improving Organizational Performance

Authors

  • Martinus Nahak
  • Lena Ellitan

Abstract

Consensus is a general agreement that is agreed by all or almost all parties involved in decision making. In research on strategic consensus, this consensus is usually operationalized by measuring the extent to which managers have a common understanding of means and ends, or of strategic priorities. All these definitions and operationalizations focus on shared understanding. However, in several other studies consensus is not only a shared understanding, but also a commitment. Several strategic consensus studies looking at leadership in top management consider strategic consensus and strategic commitment as two dimensions of strategic consensus. Strategic consensus as a positive influence on strategic commitment has so far been established only for top management but should be applied to teams throughout the organization. Consensus was negatively correlated with performance. The difference in results was due to different definitions (operationalization) and different types of research conducted. Operationalization of consensus as a shared understanding of strategic priorities showed a consistently positive effect of consensus on performance.

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Published

2022-06-09