Environmental

Rationality Uncertainty

Decision Effectiveness of
Intuition Performance
Making Decision

Political
Behavior

Motives
 Environmental
Uncertainty
H3,1
H3,2
H3,3
Rationality
H1,1
H4,1

H1,2 H5
Decision
Intuition Performance
Effectiveness
H4,2

H4,3
H2
Political
Decision
Behavior H1,3 Motives
 Environmental
Uncertainty

H3
Rationality

H1 H5
Decision Decision
Rationality Performance
Making Effectiveness
H4

Political
Behavior H2
Decision
Motives
 E E E E E E

X1 X2 X3 X1 X2 X3

Rationality Rationality
(ξ1) H1 (ξ1)
E X4

E X5 Intuition H2
Decision
H4
Performance (η2)
(ξ2) Effectiveness (η1)
E X6
H3

Political Behavior
(ξ3)
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9

X7 X8 X9
E E E E E E E E E

E E E Control:
Functional position
Experience
Gender
Graphical Display of HBAT CFA Constructs

PF1 PF2

Organizational
Performance

DE1 PLB1

DE2 PLB1
Decision
Effectiveness Political Behavior
DE3 PLB3

Rationality
Intuition

RTN1 RTN2 RTN3 RTN1 INT1 INT2 INT3

Note: Measured variables are shown as a box with labels corresponding to those shown in the questionnaire. Latent
constructs are shown as an oval. Each measured variable has an error term associated with it, but the error terms are
not shown in the exhibit for simplicity. Two headed connections indicate covariance between constructs. One headed
connectors indicate a causal path from a construct to an indicator (measured) variable.
Variables Measured items Variables derived from
Rationality 1. Collect related information Dean & Sharfman (1996)
2. Process relevant information
3. Essential information
4. Using analytic techniques
Intuition 1. Personal judgement Khatri & Ng (2000); Elbanna (2006; 2007)
2. Earlier Experience
3. To depend on ‘gut feeling’
Political behavior 1. Openness with each other relating to interests and preferences Bacharach & Lawler (1980), Dean &
2. Power to defend preferences Sharfman (1996), Eisenhardt & Bourgeois
3. Bargaining among decision-makers (1988) & Papadakis et al. (1998)
Decision 1. Quick response Hart and Banbury (1994)
Effectiveness 2. Positive results
3. Accuracy of decision
Organizational 10.1 Success in achieving objectives Hart and Banbury (1994)
performance 10.2 Hindsight the right choice made
Variables Measured items Variables derived from
Decision motive 1. Motivations in making the decision Ashmos et al. (1997; 1998)); Billings et al. (1980);
2. Satisfactory freedom to make the decision Fredrickson (1985); Mintzberg et al. (1976)
3. Initial perception of the decision
4. Confidence in making the right choice
5. Clarity of the goals for the participants
Decision importance 1. The importance of decision Beach & Mitchell (1978); Billings et al. (1980); Dean &
2. Subsequent decision Sharfman (1993b); Papadakis et al. (1998)
3. Consequences of wrong decision
4. Consequence of delay
5. Time pressure
Decision uncertainty 6.1 Clarity of collected information Beach and Mitchell (1978); Dean & Sharfman (1993b);
6.2 Uncertainty of subsequent action Papadakis et al. (1998)
6.3 Difficulty for predicting the outcomes
Environmental 7.1 Geological subsurface uncertainty Miller (1993)
Uncertainty 7.2 Operational uncertainty
7.3 Oil Price
7.4 Government Policies
Hostility-munificence 8.1 Threat to survival Khandwalla (1977); Miller (1993)
8.2 Stressfulness
8.3 Dominance over the company
Variables Measured items Variables derived from
Rationality 1. Collect related information Dean & Sharfman (1996)
2. Process relevant information
3. Essential information
4. Using analytic techniques
Intuition 1. Personal judgement Khatri & Ng (2000); Elbanna (2006; 2007)
2. Earlier Experience
3. To depend on ‘gut feeling’
Political behavior 1. Openness with each other relating to interests and preferences Bacharach & Lawler (1980), Dean & Sharfman
2. Power to defend preferences (1996), Eisenhardt & Bourgeois (1988) &
3. Bargaining among decision-makers Papadakis et al. (1998)
Company size Number of employees Fredrickson (1984); Hart and Banbury (1994)

Organizational 10.1 Success in achieving objectives Hart and Banbury (1994)

performance 10.2 Hindsight the right choice made
Stage 5: Specifying the Structural Model

E E E E

X1 X2 X3 X4

Price
(ξ1) H1
E X5

E X6 Customer
Service H2 Customer H4
E X7 (ξ2) Share (η1) Commitment (η2)
H3
E X8
Atmosphere
(ξ3)
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8

X9 X10 X11 X12

E E E E E E E E

E E E E

note: Measurement model specifications are shown in gray. Structural model specifications are shown
in black.
 Description of HBAT SEM Database Variables

Variable Description Variable Type

JS1 I feel satisfied when I think about my job. Metric
OC1 My work at HBAT give me a sense of accomplishment. Metric
OC2 I am willing to put in a great deal of effort . . . to help HBAT. Metric
EP1 I am . . . comfortable with my . . . work environment at HBAT. Metric
OC3 I have a sense of loyalty to HBAT. Metric
OC4 I am proud to tell others that I work for HBAT. Metric
EP2 The place I work in is designed to help me do my job better. Metric
EP3 There are few obstacles to make me less productive in my workplace. Metric
AC1 How happy are you with the work of your coworkers? Metric
EP4 What term best describes your work environment – Hectic-Soothing? Metric
JS2 When you think of your job, how satisfied do you feel? Metric
JS3 How satisfied are you with your current job with HBAT? Metric
AC2 How do you feel about your coworkers – unfavorable-favorable? Metric
SI1 I am not actively searching for another job – agree/disagree. Metric
JS4 How satisfied are you with HBAT as an employer? Metric
SI2 I seldom look at the job listings on Monster.com – agree/disagree. Metric
JS5 Please indicate your satisfaction with your current job . . . 0-100%. Metric
AC3 How often do you do things with your coworkers on your days off? Metric
SI3 I have no interest in searching for a job in the next year – agree/disagree. Metric
AC4 Generally, how similar are your coworkers to you – different/similar? Metric
SI4 How likely is it that you will be working at HBAT one year from today? Metric
X22 Your work type – full time or part time? (0/1) Nonmetric
X23 Your gender – male or female? (0/1) Nonmetric
X24 Your geographic location – in USA or outside USA? (0/1) Nonmetric
X25 Your age in years ___? Metric
X26 How long have you worked for HBA – years and months? Metric
X27 Performance – as measured by their supervisor. Metric