CEO relational leadership and strategic decision quality in top management teams: The role of team trust and learning from failure

Abraham Carmeli, Asher Tishler, Amy C. Edmondson

Research output: Contribution to journalArticlepeer-review

161 Scopus citations

Abstract

In this study, we examine a complex pathway through which CEOs, who exhibit relational leadership, may improve the quality of strategic decisions of their top management teams (TMTs) by creating psychological conditions of trust and facilitating learning from failures in their teams. Structural equation modeling (SEM) analyses of survey data collected from 77 TMTs indicate that (1) the relationship between CEO relational leadership and team learning from failures was mediated by trust between TMT members; (2) team learning from failures mediated the relationship between team trust and strategic decision quality. Supplemented by qualitative data from two TMTs, these findings suggest that CEOs can improve the quality of strategic decisions their TMTs make by shaping a relational context of trust and facilitating learning from failures.

Original languageEnglish
Pages (from-to)31-54
Number of pages24
JournalStrategic Organization
Volume10
Issue number1
DOIs
StatePublished - Feb 2012
Externally publishedYes

Bibliographical note

Funding Information:
We acknowledge the financial support of the Henry Crown Institute of Business Research in Israel at Tel Aviv University.

Keywords

  • CEO relational leadership
  • learning from failures
  • strategic decisions
  • top management teams
  • trust

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