DEMOGRAPHIC DIVERSITY AND FORESIGHT OF UPPER ECHELONS AFFECTING ORGANIZATIONAL PERFORMANCE: PAKISTAN’S TEXTILE SECTOR, A CASE IN POINT

Abstract

This research work seeks to answer the question, if the socio demographic characteristics and foresight of upper echelons influence their strategic choices in a specific sector, which ultimately affects the organizational performance. The research endeavor follows the chosen strategic decision in terms of forward integration in the textiles sector of Pakistan. It’s a mono method quantitative study. The research work entails empirical analysis through a co-relational design approach. Fundamentally, it is an explanatory research by its nature, which encompasses development of hypotheses and their testing for acceptance or rejection. Based on cross sectional survey, the primary data refers to time duration between the years 2015-2016. Taking into account the total 156 listed textile mills of Pakistan; the sample size was taken as 306 which consisted of CEO, CFO and MDs. The survey was carried out in three phases which included diagnostic survey, pilot testing and the final survey. Analysis of the data depicted statistically significant results; which revealed that all the proposed predictors except for ‘experience’ contribute towards the outcome variable; ‘organization performance’ or ‘strategic decision making’ that is acting as a mediating variable. Moreover, the results proved mediation effect of strategic decision making between managerial foresight and organizational performance. In the complex, challenging, ever-changing business environment and the unique composition of family businesses within the textile industry, the foresight of upper echelons pertaining to strategic decision-making process came out as predominant factor in determining organizational performance