The Effects of Emotions on Decision Satisfaction: a China-US Cross-Cultural Experimental Study

This paper examines how two emotions-guilt and pride experienced by managers influence their satisfaction from their strategic decision. This study also investigates how culture moderates the relationship between emotions and... [ view full abstract ]

This paper examines how two emotions-guilt and pride experienced by managers influence their satisfaction from their strategic decision. This study also investigates how culture moderates the relationship between emotions and strategic decision satisfaction.
This study’s hypotheses were tested using a 2 x 2 experimental design with two emotions (guilt& pride) and two cultures (US & China). A survey experimental design with scenario construction was used to elicit guilt or pride. Next, PANAS-X scale was used to check the effectiveness of emotion manipulation. Finally, respondents were asked to make a strategic decision about international market entry.
The results show that higher levels of guilt lead to lower levels of decision satisfaction while higher levels of pride lead to higher levels of decision satisfaction. The results support the interaction effects of emotions and culture on strategic decision satisfaction. Managers from high collectivistic culture have low decision satisfaction at high levels of guilt while managers from high individualistic culture have same decision satisfaction either at low or high levels of guilt. Managers from high individualistic culture have high decision satisfaction at high levels of pride while managers from high collectivistic culture have same decision satisfaction either at low or high levels of pride.
The findings not only provide evidence that emotions play an important role in managers’ decision satisfaction but also illustrate that culture interacts with emotions to influence the decision satisfaction. The last part of paper discusses the limitations of this study and offers suggestions for future research.