392
GROUP & ORGANIZATION MANAGEMENT TABLE 2
Maximum Likelihood Analysis of Product Modification Decisions (N = 116) Variable Performance Performance relative to team aspirationt-1 Performance above/below industry averaget-1 Prior decisions Product modificationt-1 Competitive environment Competitor product introductionst-1 Change in competitive positionst-1 Perceived competitiveness Independent decision-making structure Control variables Perceived realism a Salest-1 a Research and development expenditurest-1 a Change in production levelst-1 Intercept
b
SE
–0.155 –0.014
0.130 0.290
0.322**
0.096
–0.052 0.317** 0.482* 0.895*
0.067 0.119 0.226 0.244
0.286* 0.119** 0.011* –0.155** –1.519
0.128 0.041 0.005 0.058 1.215
Adjusted R2 = .51 a. These measures are divided by 100,000 for rescaling. *p < .05. **p < .01, two-tailed tests.
product modifications. A possible explanation of these findings is that higher levels of competitiveness may lead to higher levels of uncertainty and increased attempts to adapt incrementally to the competitive environment. The result for the team decision-making structure variable indicates that teams that were organized by product line were more likely to make product modifications, as predicted by Hypothesis 6. This finding suggests more product modifications are made when individuals are responsible for decisions for a given product line than when collectives of group members are involved, such as in consensus, functional, and matrix structures. Information cues influencing strategic decisions. Tables 3 and 4 present the logistic regressions of the strategic decisions: product introductions and product withdrawals, respectively. Hypothesis 3 predicted that prior strategic decisions would influence current strategic decisions. This prediction was not supported; previous decisions to introduce a new product or to withdraw a product did not influence product introductions or product withdrawals, respectively. Consistent with expectations, neither performance relative to aspiration nor performance relative to industry average had an effect on
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