Building Shared Mental Models of Organizational Effectiveness in Leadership Teams Through Team Member Exchange Quality

Abstract

Because shared mental models are critical for consistent, accurate decision making, this study seeks to explain the extent to which mental models are shared on the basis of team cognition theory and social constructionism. This study thus provides new insights into how the social dynamics among nonprofit leaders can explain mental models on nonprofit effectiveness. Specifically, team member exchange (TMX) quality should relate to agreement within leadership teams. Building on recent multilevel team research, this study regards the relationship theoretically as a separate actor and partner effect, which better reveals the underlying social processes. A multilevel data sample of 402 leaders from 44 nonprofit organizations provides support for the hypotheses, offering insights into the multilevel, emergent nature of team behavior and shared mental models. Practical recommendations focus on the central role of CEOs and board chairs, and on the need for a stronger consensus assessment in nonprofit performance evaluations.