The general line of argument here is that the managers have spent time and effort as part of their professional development in order to understand the business, whereas the engineers have dedicated their time towards a more technical focus. This is reflected in how they spend their days - the manager spends time in meetings, whereas the engineer is spending time coding (very broad generalization)

Assuming that neither side is doing significant amounts of extracurricular work to bridge the gap, it therefore follows that management understands the business better, because that is explicitly the purpose of their job.

In a best case scenario, it makes sense to provide engineers etc. with the context to understand the decisions. On the flip side, business decisions are often made upon a huge heap of context that is generally invisible to the engineer (unless they spend an equal amount of time in building up their business knowledge, spending time in meetings, etc. - but at that point, they're basically a manager?)

It's not to say that engineers can't develop the background, etc. to make the decisions, but that it's not exactly part of the expected job functions, and not something that's explicitly looked for as part of the recruitment process. In a sense, this is a bit of a tautological issue.