Showing papers in "Euromed Journal of Business in 2017"

Influence of organizational culture and leadership style on employee satisfaction, commitment and motivation in the educational sector in Qatar

Abstract: The purpose of this paper is to explore the influence of organizational culture and leadership style on employees’ job satisfaction, organizational commitment and work motivation in the educational sector in the state of Qatar.,The study was conducted using a questionnaire with a sample size of 364 employees in the educational sector in Qatar. Data were analyzed using factor analysis, Pearson correlation and multiple linear regression, were employed to examine the relationships between the variables under investigation.,Significant positive relationships were observed between supportive culture and job satisfaction; supportive culture and organizational commitment; participative-supportive leadership and job satisfaction; directive leadership and job satisfaction; job satisfaction and work motivation; job satisfaction and organizational commitment.,This paper would help managers and policy-makers in the education sector to develop a better understanding of organizational culture and leadership styles and their influence on employee satisfaction, commitment and motivation.,The education sector is experiencing a fast growth in Qatar due to significant outlays by the government. This study is among the first in the country to understand the variables affecting employees’ performance in education sector.

Training and development: Challenges of strategy and managing performance in Jordanian banking

Abstract: The purpose of this paper is to explore the relationship between organizational strategy, performance management and training and development in the context of the Jordanian banking sector.,Models of strategic human resource management developed in the west are considered for their relevance in Jordan. A mixed methods approach is adopted employing interviews with senior managers and training and development managers, employee questionnaires and documentary analysis. It examines all banks in Jordan including foreign and Islamic banks.,Findings indicate that training and development is not driven by human resource strategy and that it is reactive rather than proactive. Training and development does improve skills, knowledge, attitudes and behaviors but there is little evidence that it increases commitment and satisfaction nor that it contributes to strategic aims in any significant way. The linkages between strategy and training and development are not explicit and strategies are not interpreted through performance management systems. Consequently there is a lack of integration in organizational HR systems and the measurable contribution of training and development to competitive advantage is minimal,The paper offers suggestions as to how greater integration between strategy, performance management and training and development might be achieved in the Jordanian context.,This paper is the first detailed empirical study of training and development in Jordan to include considerations of transferability of western models to an Arab culture.

Examining the antecedents and the effects of CSR implementation: an explanatory study

Abstract: Purpose Corporate social responsibility (CSR) is a concept with increasing importance for global and local organisations. Despite its importance, there is still lack in the understanding of its complete role, within and outside organisational boundaries. The purpose of this paper is to develop and empirically test a conceptual framework (research model) that examines the antecedents (drivers) and the effects of CSR implementation. Design/methodology/approach The proposed conceptual framework was tested, using a newly developed structured questionnaire, in a sample of 80 large private Greek organisations. Key respondents were the executive managers of these organisations. The reliability and the validity of the questionnaire were thoroughly examined, while research hypotheses were tested using the “Structural Equation Modelling” technique. Findings Research findings suggest that three factors (“CSR awareness”, “relevant cost of CSR”, “appropriateness of CSR strategies”) have a direct effect on CSR implementation, while one factor (“knowledge of CSR”) has an indirect effect, through “CSR awareness”. On the other hand, CSR implementation seems to have a positive effect on “employee commitment”, “customer satisfaction” and “company reputation”. It should be underlined that these results reflect the opinions expressed by the top management of the companies that participated in the study. Originality/value The present study proposes an original, three-dimensional, conceptual framework that examines both the antecedents and the effects of ERP implementation. Such a multidimensional approach has randomly been attempted in the existing literature. Second, the present study examines the subject of CSR in an economy under crisis. This approach is rather unique among previous empirical studies of the same field. Third, the results of the present study may be generalised in other countries with similar economic realities and characteristics (e.g. Cyprus, Spain, Italy, Portugal and Ireland). Finally, the study offers specific managerial implications to business executives.

Emerging trends in entrepreneurial universities within Mediterranean regions: An international comparison

Abstract: Purpose The aim of this paper is to investigate the new role that universities are assuming as entrepreneurial entities supporting the development of regional innovation systems through an international comparison, in order to address the demand for global competitiveness. The purpose of this paper is to compare how some universities of the Mediterranean area and of South-East Asia conceive and implement an entrepreneurial culture through their curricula, conducting a two-way comparison between Italy and Singapore. Design/methodology/approach The methodology consists of a multi-method approach, based on a comparative analysis which involves the use of a narrative style and a content analysis carried out on the Italian and Singaporean entrepreneurship programmes. The method consists of comparing different systems with similar characteristics, with an analysis focused on particularly relevant environmental factors, to find an explanation about how an innovative way of teaching entrepreneurship to students can affect the development of regional innovative systems. Findings The study analyses the Italian and Singaporean environmental factors that are helpful in understanding the basis for the promotion of an entrepreneurial attitude, and the end result of the paper is to set out the differences in the evolvement of entrepreneurial universities and innovative teaching programmes between the two countries being analysed. The research uses an international comparison to investigate the relationships between a set of variables that influence government authorities, leading them to invest in programmes on entrepreneurship. Originality/value Studying the Singaporean experience, one of the leading Nation investor in entrepreneurial education, is useful in highlighting limits of less advanced higher education systems and in helping them to encourage an entrepreneurial culture.

Leader narcissism and subordinate embeddedness: The moderating roles of moral attentiveness and behavioral integrity

Abstract: Purpose The purpose of this paper is to examine the relationship between leader narcissism (LN) and subordinate embeddedness as well as to test the moderating roles of moral attentiveness (MA) and behavioral integrity (BI) on that very relationship. Design/methodology/approach Data were collected from 19 five-star hotels in Turkey. The sample included 1,613 employees along with their first-line managers. The moderating roles of MA and BI on the LN and subordinate embeddedness relationship were tested using the moderated hierarchical regression analysis. Findings The moderated hierarchical regression analysis results revealed that there was a significant negative relationship between LN and subordinate embeddedness. In addition, this very relation was weaker when both MA and BI were higher than when they were lower. Practical implications This study showed that employee perception of LN decreased employee’s job embeddedness (JE). The study findings point out the importance of reinforcing an ethical context as well as the importance of leader selection. Specifically, in order to ensure that narcissistic leaders do not thrive in organizations, it is significant to maintain an ethical context. Whether the context is ethical, unethical, or interpersonally ineffective, behaviors will likely be more salient and evaluated more negatively by coworkers. On the other hand, when narcissistic leaders are inserted in organizations with unethical contexts, the result is a perfect storm that reinforces narcissists’ unethical behaviors and potentially promotes narcissistic leaders. Still, it is likely that narcissists exhibit unethical and ineffective behaviors regardless of the ethical context, meaning that an ethical context does not necessarily prevent narcissistic leaders from behaving ineffectively and unethically. Thus, the implementation of management selection geared toward targeting precursors of unethical behaviors is an equally vital strategy to prevent unethical behaviors on the part of organizational leaders. Originality/value The study provides new insights into the influence that LN may have on subordinate JE and the moderating roles of MA and BI in the link between LN and JE. The paper also offers a practical assistance to employees in the hospitality industry and their leaders interested in building trust and increasing leader-subordinate relationship and JE.

Pairing intangible cultural heritage with tourism: the case of Mediterranean diet

Abstract: Purpose The purpose of this paper is twofold: to suggest a conceptual framework for linking intangible cultural heritage (ICH) to tourism for managerial actions at destination level; and to empirically investigate and validate the value of this framework. Design/methodology/approach The paper proposes a conceptual framework for pairing ICH with tourism. The utility of this framework was empirically investigated by means of case study (Cretan Diet Festival, Greece) using the technique of interview. Findings Findings suggest that: the proposed framework constitutes a good as a planning tool useful in achieving an integrated approach and as a management tool in assessing the effectiveness of ICH projects; the crucial success factors in this area; and culinary-based festival could be a constructive platform on certain conditions. Research limitations/implications Because of its exploratory nature, the study has inherent drawbacks. The suggested framework should be finalised. Future studies could explore the perspective of visitors. More empirical studies are needed to provide further corroboration of the findings. Practical implications Practical implications of this is in the field of strategic management. It contributes to consider approach and adopt managerial action plans in the field of developing and implementing a mutually beneficial partnership between ICH and tourism. Originality/value It is the first study that suggests and empirically investigates a framework for linking ICH to tourism at destination level, taking a strategic management perspective. It provides an integrated approach incorporating the main issues.

TripAdvisor and reputation: a case study of the hotel industry in Cyprus

Abstract: Purpose The purpose of this paper is to examine the significance of TripAdvisor on reputation within the hotel industry. TripAdvisor encapsulates key themes in establishing an online reputation strategy in an evolving digital landscape. Design/methodology/approach Through the use of an exploratory case study, data were gathered primarily by means of a series of expert interviews within the hotel industry in Cyprus, today a mature holiday destination in Europe. Further data collection included a document search of presentations, annual reports, past surveys and sales and marketing literature from the examined industry. Findings Hotel communication practitioners are fully aware of the impact of social media in managing reputation. Constant monitoring, prompt responses, training and transparency were identified as key factors. Online reputation management needs to be taken into consideration when designing a comprehensive integrated communication strategy. Research limitations/implications Congruence amongst interviewees in certain areas could be on account of the homogeneity of practitioners, of their background and training and of similar organisational cultures across the locale of study. This leads to limits in the generalisations from this study’s findings. Practical implications Encouragement and training of employees were amongst the primary suggestions that emerged. An internal and external environmental scan, recognising possible strengths, weaknesses, opportunities and threats, which could assist in the effective engagement and monitoring of the organisation’s online presence, were also suggested. Originality/value The uniqueness of the study lies in its exploration of reputation management of a well-known traveller’s platform by addressing social media content in both a proactive and reactive manner.

Sales nationality and debt financing impact on firm’s performance and risk: Evidence from Jordanian companies

Abstract: Purpose The purpose of this paper is to examine the impact of debt financing on both performance and systematic risk in Amman Stock Exchange listed firms. The authors focus the study to analyze the differences between services and industrial firms in one sense and the differences between international and domestic firms in the other sense, as the study depends on the geographical distribution of sales to classify the nationality of firms. Design/methodology/approach The study sample includes all listed Jordanian firms in Amman Stock Exchange from 2005 to 2013 for both industrial and services sectors. Using panel data techniques, fixed effects regression with modified Driscoll-Kraay standard error as a remedy for heteroscedasticity problem is employed. Findings The results show that there is a significant negative impact of debt financing on the firm’s performance, where the sector and the sales nationality play an important role. Moreover, the results indicate that there is a significant positive impact of debt financing on the firm’s systematic risk. Taking the sector and sales nationality into consideration, the authors find that the debt financing has no significant impact on the systematic risk of services firms and domestic firms. Additionally, the findings indicate that services firms and international firms are, on average, more riskier than industrial firms and domestic firms, respectively. Originality/value The paper provides a visibility on the comparison between international and local firms in Jordan in terms of the impact of debt financing on the financial performance and systematic risk in one research.

Corporate governance and provisions under IAS 37

Abstract: Purpose The purpose of this paper is to illustrate the extent of disclosure of provisions reported under IAS 37 provisions, contingent liabilities and contingent assets and explore the relation between provisions and corporate governance. Design/methodology/approach The current research utilizes a panel data analysis using a sample of 1,078 firm-year observations from Borsa Istanbul between the years 2005 and 2010. Findings Overall findings indicate that 62 percent of 1,078 firm-year observations recognize provisions, and among those, only 32 percent provide IAS 37’s full disclosure requirements. Firms that recognize provisions have larger board of directors and are more likely to be characterized with concentrated ownership and institutional owners. Also, firms with larger board of directors, greater independence and concentrated ownership have higher total provision/total debt ratios. Finally, firms that make full disclosure of provisions are more likely to have larger boards, higher ownership concentration and institutional owners and less likely to have CEO duality. Research limitations/implications As with all research, there are several limitations of this study. The study suffers from a lack of literature about provisions under IAS 37. The lack of literature directly focusing on provisions or IAS 37 appears to be one of the main limitations as well as one of the main contributions. Since this study focuses on one country, the comparison is not possible. Further research may contribute to literature by the use of other emerging economy’s capital market data. Moreover, further research can cover any other mandatory disclosure information specified in IASs/IFRSs and can provide comparative results about the compliance and strictness of the mandatory disclosure regime. Practical implications This study can be of interest to government, investors, business management, regulatory bodies, educators, researchers, accountants, auditors and scholars particularly in the field of accounting by seeking to make theoretical and practical contributions in the area of accounting disclosures and also serves as benchmark for future researches on corporate disclosures. Also this study provides significant insights to accounting regulators who set disclosure requirements. Originality/value Accurate corporate reporting is a necessary tool for the short- and long-term survival of the firms, hence the capital markets. Studying the level of disclosure will enable us to have additional insights about corporate reporting and will enhance the understanding of the nature of corporate reporting in developing countries. Disclosure practices by developing countries were empirically investigated in the past; however, the relation between provisions under IAS 37 and corporate governance has been unexplored in the literature. Thus, to the best of the authors’ knowledge, this is a pioneering research on provisions and corporate governance structure.

Organizational service orientation and job satisfaction: A multidisciplinary investigation of a reciprocal relationship

Abstract: Purpose Given the polyphony around service orientation related constructs coming from both Marketing and Organizational Behavior researchers, the first purpose of this paper is to delineate the construct of service orientation, and second, recognizing the focal role of employees for offering services of high quality, it investigates the complex relationship between service orientation and job satisfaction. Design/methodology/approach This paper draws upon theories and arguments from marketing and organizational behavior to identify “organizational service orientation” (OSO) as a common basis for both scholarships. Grounded on the review of the impact of OSO and job satisfaction constructs to each other, the authors develop research propositions, and discuss implications of the proposed relationships for both. Findings The paper explicates the positive impact of OSO on job satisfaction but also puts forward a positive influence of job satisfaction on OSO, suggesting hence a reciprocal relationship between the two. Originality/value First, this paper offers construct clarification for OSO, bridging disciplinary and audience divides. Second, it argues over the reciprocal relationship between OSO and job satisfaction, indicating the necessity to invest on maximizing both constructs in order to ultimately optimize the service experience of customers.

Success factors in university sport partnerships: a case study

Abstract: Purpose From a resource-based perspective, the purpose of this paper is to analyse the key success factors underlying inter-organisational partnerships in the university sport sector. Design/methodology/approach To attain this objective, the paper uses a qualitative approach, performing an exploratory case study in a Portuguese higher education institution. Four interviews with key informants and documentary analysis served for data collection. Findings Based on the case evidence, five generic success factors emerged: relationships, partner selection, complementarity, sporting performance and organisation, which are likely to determine the success of partnerships in the field of university sport. Practical implications University sport managers and other actors in the field should bear the major success factors in mind when taking strategic decisions. Specifically, relational capital and the complementarity of resources seem to be important in initiating and managing sport partnerships. Originality/value This exploratory study contributes to advancing knowledge of inter-organisational partnerships in a particular area: sport in higher education. More precisely, this research outlines which success factors are relevant in sport partnerships and deserve further investigation with other research designs.

Determinants of winegrowers’ profitability: evidence from an Eastern Europe wine region

Abstract: Purpose The purpose of this paper is to identify the main determinants of winegrowers’ profitability in Eastern Europe with the ultimate purpose to improve the wine industry competitiveness. Design/methodology/approach The research is focussed on the Moldova region (Romania), a little studied wine-growing area that presents potential for the future development of the wine industry. A hierarchical approach is applied to consider the simultaneous effects of climate aspects, vineyard features, winegrowers’ characteristics and management practices on vineyards’ profitability. The model is based on data from 274 vineyards managed by 64 winegrowers, where 32 different grape varieties are cultivated in different districts. Different scenarios are simulated and alternative policies are analysed. Findings Climate aspects and human factors, particularly the educational level and type of agriculture practiced, emerge as main determinants. Farmers’ climate change perceptions also have a primary role. The grape variety affects profitability differences across vineyards at a lower extent. Research limitations/implications The study suggests an approach easily replicable to other viticultural contexts. Practical implications Results are useful for policymakers in order to forecast the impact of policies devoted to improving the wine industry competitiveness in Eastern Europe. Originality/value The study presents a micro-scale analysis in which the effects of climate aspects, vineyard features, winegrowers’ characteristics and management practices are simultaneously estimated. It also produces new knowledge in a little studied wine region.

The mediating effects of adaptive selling and commitment on the relationship between management control and sales performance

Abstract: Purpose The purpose of this paper is to present a comprehensive model of the relationship between control and sales performance contingent upon the commitment and adaptive selling variables. Specifically, the study tests the mediator effects of adaptive selling and organizational commitment on the effect of managerial control systems on self-assessed performance of the salespeople working in the field of industrial marketing. Design/methodology/approach In total, 472 firms active in the industrial marketing field for tangible industry products in Turkey were selected for the research. The proposed model that tested posits relationships among management control variables and adaptive selling, organizational commitment and sales performance measures. Management controls are related to sales performance through the mediating effect of adaptive selling and organizational commitment. Management control styles (output as formal and professional as informal) were the independent variables, while changes in organizational commitment and adaptive selling were tested both as mediators and sales performance as dependent variable, consistent with the reciprocal effects model under analysis. Findings The findings demonstrated that “control” is positively associated with “sales performance” and “commitment” and “adaptive selling” mediate this relationship. Findings indicate that control impacts sales performance through a mediating mechanism that involves adaptive selling and commitment. Taken together, results showed that adaptive selling and commitment played a critical role in sales performance. Originality/value This research is the first to empirically analyse the model regarding the relationship between sales performance, control, adaptive selling and commitment variables.

Valued work outcomes among Jews, Muslims and Christians in Israel: The effect of cultural and demographic variables

Abstract: Purpose The purpose of this paper is to examine work outcomes preferences of Jewish, Muslim and Christian employees. The study attempts to explain the similarities and the differences among the ethno-religious groups. Design/methodology/approach The Meaning-of-Work (MOW) questionnaire was conducted on 898 Jews, 215 Muslims and 103 Christians working respondents. The work outcomes were: status and prestige, income, time filling, interpersonal relations, serving society, interest and satisfaction. Findings Significant differences were found between the three ethno-religious groups, especially between Jews and Muslims, regarding the preferences of work outcomes and their rankings. The findings can be explained mainly by cultural differences. Research limitations/implications There is the unbalanced proportion of Jews, Muslims and Christians in the study. Practical implications This study provides a better understanding of the three ethno-religious groups and their valued work outcomes. This knowledge can help in the planning of material and non-material rewards systems and methods suitable to the different ethnic groups. Implementing “Diversity Management” programs in organizations based on the variance among sub-groups can maximize the potential of the organizational human resources. Originality/value There are no other studies that compared the work values of Jews, Muslims and Christians, in or out of Israel. This study explores the work outcomes preferences of the three ethno-religious groups in Israel and the causes for those differences.

Accounting Information Systems course: perceptions of accounting and non-accounting students

Abstract: Purpose The purpose of this paper is to explore how the delivery of an accounting information system (AIS) course affects the perceptions of accounting and non-accounting students, and whether these differences are important enough to suggest the separate the delivery of this course. Design/methodology/approach A questionnaire was distributed during the last teaching weeks of the AIS course in a Cypriot University. A comparative analysis between the two study groups, i.e. accounting and non-accounting students, followed. Findings The findings suggest that the successful delivery of the course reinforces the positive perceptions of the accounting group, and increases the interests and the positive perceptions of the non-accountants. Originality/value Following the development of the enterprise resource planning and the hybridization of the accountants’ role, non-accountants are increasingly engaged in practices traditionally performed by financial or management accountants. That market development may motivate business schools to offer AIS courses to non-accounting students. This study addresses this unexplored topic.

Accounting information and its impact in transfer pricing tax compliance: a Portuguese view

Abstract: Purpose In transfer pricing (TP) methods, especially when based on margins, accounting indicators are of paramount relevance to assess the profitability of firms, and to compare such indicators to samples of similar companies. The purpose of this paper, drawing on the legal research method, is to discuss the following questions: when using the transactional net margin, quite common in TP tax reporting, does the new (IFRS-based) Portuguese financial accounting system produce profit level indicators that are closer to the underlying reality that TP aims to capture, or are these profit level indicators of a lower quality than before? Design/methodology/approach The methodology used in the paper draws on legal research. The hermeneutical and evaluative approaches are used to answer the research question. The legal research method is often criticized by not making the empirical sciences’ type of generalizations, since many problems are, by nature, related to national legal systems and, therefore, proposed solutions are not valid outside a specific territory. However, given the nature of the accounting and tax issues identified and discussed in the paper the topic is relevant outside Portugal, given the widespread adoption of IFRS-based accounting systems and the multinational impact of TP principles’ and legislation. Findings The main conclusion is that the new accounting regime has a significant potential for increasing uncertainty and compliance costs in the area of TP, given the nature of operating income adopted in the new IFRS-based system. As such, taxpayers and tax authorities (TA) and tax courts will have to allocate more resources to an already complex and uncertain fiscal area. A careful analysis of non-recurrent items is now mandatory, given the increased flexibility and the amalgamation of recurring and non-recurring accounting items that can have a pernicious influence in TP tax compliance. The answer to the research question is that the new accounting system produces operating margins that, when used as profit level indicators in TP, are of lower quality. Practical implications Taking into account the aim of this study, the discussion of a Portuguese particular feature of corporate financial information and tax system can highlight useful policy points to a broader audience. Many OECD countries face a dire situation in budgetary terms. Therefore, given the pressure to increase tax receipts, TP issues can shed some light on solutions being applied in other countries, and enhance awareness of corporate tax policy points. Directive 2013/34/EU gives Member States some accounting flexibility (e.g. in the design of the income statement). Therefore, the authors would argue for a new design of the SNC’s income statement by the Portuguese legislators. The analysis also argues for a broader level of coordination and consultation between accounting standard setters and TA, in areas where a strong link exists between book and tax income. Originality/value The link between IFRS-based account systems and TP tax issues is not, to the best of the authors knowledge, a widely researched topic Thus, the paper adds value to the discussion related to book-tax relation in the specific area of transfer price profit level indicators. It finds a divergent path between the economic reality that TP tries to capture and a concept of operating margin that is affected by non-recurring and peripheral transactions.

Investigating the impact of donor funding: a case study on Lebanon

Abstract: Purpose The purpose of this paper is to develop a macroeconomic framework to predict the impact of transient donor funding on a developing economy and to facilitate evaluation of the effectiveness of alternative uses of this funding in attaining the desired outcomes. Design/methodology/approach A simulation analysis of the macroeconomic impact of donor funding on the Lebanese economy is conducted. Findings The paper evaluates the potential outcomes for the country from alternative uses of this donor funding and concludes that targeting infrastructure expenditure, mediated through the government, will produce the most beneficial longer term outcomes. Originality/value This paper is the first substantive macro model to be developed for the Lebanese economy. It is the first major study of the contribution of donor funding to the Lebanese macro-economy. The framework, however, can be generalised to other developing donor recipient nations.

The MED scale: regional variation in values and beliefs, evidence from Italy

Abstract: Purpose The purpose of this paper is to provide a measurement scale that captures elements of Mediterranean identity. Design/methodology/approach A scale was developed from items drawn from existing scales and from a qualitative study that examined how respondents viewed their national identity as well as the concept of a Mediterranean identity. The literature pertaining to Mediterranean identity, culture and the influence of contextual factors on its development were reviewed. The scale revealed four dimensions of Mediterranean identity: traditions, relationships, ethnocentrism and a bond with the Sea. Findings The scale successfully discriminated between those living by the Sea and those living inland. At the same time, it did not differentiate between respondents living in the north from those living in the south. The study suggests that context, specifically proximity to the Sea, helps shape some of the regional variation in values and beliefs. Research limitations/implications The geographic composition of the sample limits the generalizability of the results. A sample across additional countries would provide greater confidence in the results, although much of the theoretical work on Mediterranean thinking has focused on Italy. Further, it was desirable to keep as many factors as possible constant to limit extraneous variation. Inclusion of respondents from countries with different levels of wealth, religious and political ideologies would likely uncover additional facets of Mediterranean identity. Practical implications The results have broader implications for identifying transnational segments that may exist around the Mediterranean. A key implication relates to the extent that similar values and beliefs appear to be associated with proximity to the Mediterranean Sea. It also highlights the importance of considering contextual factors when developing an understanding of consumer behavior. Originality/value Mediterranean identity has been examined conceptually, but a systematic means to measure is lacking. The essence of Mediterranean thinking embodies the importance individuals place on adhering to traditions, the value they attach to personal relationship, a certain degree of ethnocentricism, and of course the bond with the Sea. The results also suggest that differences that have been attributed to a north/south divide, needs to be reexamined.

The impact of mood on decision-making process

Abstract: Purpose The purpose of this paper is to explore and analyze relationships between contextual factors, and micro-cognitive, emotional and relational factors, influencing the strategic decision-making process. Design/methodology/approach The relative roles of “rationality,” “intuition” and “political behavior” in five recent and critical strategic decisions have been explored using 16 semi-structured interviews with senior decision-makers in three Middle Eastern Arabic commercial banks. Findings Context specific macro-factors were found to influence the emotional state of strategists, leading them to adopt a rational approach, rather than use intuitive judgment, to making all five decisions. Research limitations/implications The study was limited to one contextual situation and business sector in order to maintain these variables relatively constant, with proposals for extending studies to other business situations and contexts. Practical implications The paper provides evidence for the impact of micro emotional and relational factors on decision-making practice, which should lead to increased recognition for strategists, and organizations, of the importance of these influences on strategic decision practice. Social implications A social implication is that organizations should build a level of awareness of the impact of the mood of strategists who are involved with strategic decisions, perhaps through appropriately designed social processes of organizational learning. Originality/value The paper examines the little-researched influence of the mood of strategists on the nature of decision-making process, and demonstrates the importance of including emotional factors in future studies. An explanatory framework is developed which is consistent with an interpretation that places the emotional state (mood) of “concerned attention” which existed within the senior management groups as the dominant factor driving the nature of process. A generalized research framework is proposed to aid future studies of strategic processes.