The Influence of Decision-Making Styles on Performance of Consumer Cooperatives: Evidence from Ethiopia

Abstract

This study investigates the influence of decision-making styles on the performance of consumer cooperatives with heterogeneous backgrounds in Ethiopia. Despite cooperatives traditionally making decisions using the one-member, one-vote rule, our research examined the effect of various decision-making styles on performance. This involved surveying 293 managerial board members using hierarchical regression with SPSS_V23 for analysis. Our findings indicate that various decision-making styles hold a different significant influence on the performance of cooperative. Notably, we discovered that the interaction between rational and intuitive decision-making styles has a negative significant effect on performance. Surprisingly, our empirical findings uncovered a significant positive influence of the interaction among dependent, rational, and intuitive decision-making styles on performance. Controlled by organizational factors such as organizational years, organizational size, board size, and location, our study also provides valuable insights for diverse boards to understand the decision-making style choices and their impact on the performance of cooperatives with hybrid organizational structures.

Keywords: Cooperatives, Consumer cooperative, Decision-making styles, Heterogeneity, Performance and Ethiopia

DOI: 10.7176/EJBM/16-10-12

Publication date: December 30th 2024