The Best of Both Worlds: Establishing Linkages between Spirituality and Religiosity on Strategic Decision Making with the Mediating Role of Empathy

Abstract

Purpose – This paper aims to examine the impact of religiosity and spirituality on strategic decision making in multi-cultural and multi-religious organisations, keeping empathy as a mediating variable. The aim is also to establish a link between religiosity and spirituality. Design/methodology/approach – This study proposed a theoretical framework showing the positive impact of God fearing and piousness on material well being and worldly successes, not only in work but in communities and groups. Specifically, it is suggested that religiously and spirituality positively affects Strategic Decision Making directly as well as through generating Empathy in mediation role. To empirically establish the validity of our assumptions, we conducted a correlational study. We adopted Interpersonal Reactivity Index by Davis (1980), Spirituality Assessment Scale developed by Howden (1992), and Centrality of Religiosity Scale by Huber and Huber (2012). The data was collected from managers, assistant managers,Directors/HODs,CEOs, and leaders of different multi-cultural organizations in Pakistan. Research data is obtained by using face to face survey technique. Convenience sampling technique was used and out of 200 participants, 95 participants agreed to fill the survey. Findings – SEM analysis showed that religiosity and spirituality have a significant positive relationship with strategic decision making through mediating effect of empathy. Results show that spirituality has a significant impact on religiosity; however, religiosity has no significant effect of spirituality. Hence, better spiritual condition improves performance of the leaders. Research limitations/implications – This is a co-relational study that investigated the association between the religiosity, spirituality, and strategic decision making. There is not necessarily a causal relationship between the two. The findings of this study may only be generalized to individuals similar to those that were included in this research. Practical implications – Based on the empirical findings of this study, organizations may formulate new policies and strategies for improving the strategic decision making skills by allowing and encouraging spiritual activities in the workplace irrespective of religious and spiritual beliefs, thereby facilitating understanding and mutual respect. A culture of respect for diversity of beliefs and faiths should be cultivated in the workplace by enforcing appropriate codes of conduct as well as instilling values of tolerance, respect and compassion, which would result in more accurate decisions and improved performance. Originality/value – This is the only study that measured the impact of religiosity and spirituality on strategic decision making, empathy as a mediating variable using the data of leaders including, managers, assistant managers, CEOs, Directors/HOD.