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Reports the results of a field study on managerial decision making and competence utilization in Chinese enterprises. The results showed that the participative decision making had positive effects on both morale and decision quality and that the decision skill utilization had a very close relationship with job satisfaction. It also demonstrated that the measure of influence/power‐sharing was an appropriate indicator for decision‐making patterns in the Chinese circumstances. Discusses implications of the results and proposes a process model of managerial decision making.

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