Perceptions of organizational context and job attitudes: The mediating effect of organizational identification

Informed by social exchange theory and social identity theory, we developed a conceptual model that examines the mediating role of organizational identification in the relationship between employees’ perceptions of organizational context and their job attitudes. In our model, the antecedents include perceived organizational support (POS), procedural justice, and perceived job insecurity. The outcome variables consist of affective organizational commitment, job satisfaction, and intentions to leave. Our respondents were 591 workers employed in three different firms in China. The results of regression analyses showed that employees’ job attitudes are affected by their perceptions of organizational context and organizational identification. Further, organizational identification was found to mediate the effects of POS on the outcome variables.     

Procedural fairness and interfirm cooperation in strategic alliances

This study applies the justice theory to address interpartner cooperation in strategic alliances. It emphasizes how procedural fairness as perceived by boundary spanners in these alliances influences cooperation outcomes. We theorize that procedural fairness improves cooperation results through enhancing relational value and curtailing relational risk in an environment characterized by both economic and social exchange. Our path analysis suggests that procedural fairness has a direct effect on operational outcome, but an indirect effect on financial outcome via increased trust driven by fairness. Procedural fairness contributes more to performance outcomes when strategic alliances are equity joint ventures than if they are contractual agreements. Theoretical and managerial implications arising from the findings are highlighted. Copyright © 2007 John Wiley & Sons, Ltd.     

The dual effects of perceived unfairness on opportunism in channel relationships

Opportunism has long-term negative consequences for channel relationships. The extant research has traditionally focused on economic forces in studying opportunism. However, social exchange theory stresses the role of social forces in shaping opportunistic behavior. In this study, we integrate transaction cost economics and justice theory to theorize and examine the impact of ‘perceived unfairness’ on distributor opportunism. We uncover the ‘dual’ effects of perceived unfairness on opportunism, i.e., 1) directly enhancing opportunism and 2) aggravating (positively moderating) the effects of economic forces on opportunism. Matched data on 247 supplier-distributor dyads in India provide empirical support for our theoretical model and research hypotheses. We find differential effects of the three dimensions of perceived unfairness (distributive, procedural, and interactional) on opportunism. We discuss the implications of our findings for theory and practice and present avenues for future research.     

Reliance and disclosure: How supervisory justice affects trust in supervisor and extra-role performance

This study examines the relationship between supervisory justice and trust in supervisor and their impacts on extra-role performance. Drawing on fairness heuristic theory, we hypothesize that supervisory interactional justice will significantly affect the two domains of trust in supervisor, namely, reliance and disclosure, which in turn enhance subordinate extra-role performance. We also predict that supervisory procedural justice will moderate the relationship between supervisory interactional justice and trust in supervisor. We test our hypotheses using a sample of 111 insurance agent-manager dyads. The results show that although supervisory interactional justice is positively related to both reliance and disclosure, only disclosure mediates its effect on extra-role performance. In addition, supervisory procedural justice moderates the impact of supervisory interactional justice on reliance but not disclosure. The implications for research on justice and trust are discussed.     

Understanding the spillover effects of channel reward on observers' commitment: The mediating role of envy

A manufacturer-initiated reward event not only influences the awarded distributor but also alters the behaviors of the unrewarded distributors in the distribution network (i.e., observers). Going beyond a bilateral view of reward, this article examines the spillover effects of rewards on observers. Specifically, taking distributive fairness, procedural fairness, and the magnitude of the reward into consideration, this study postulates that these three aspects of the reward affect observers' level of commitment to the manufacturer through their malicious or benign envy of the awarded recipient. These hypotheses are tested with a survey of 204 distributors from multiple industries in China. The results reveal that distributive fairness of the reward strengthens observers' commitment by decreasing their malicious envy and increasing their benign envy and that procedural fairness and the magnitude of the reward enhance their commitment by increasing their benign envy. We also summarize the theoretical and practical implications about the findings.     

Examining the positive and negative effects of <Emphasis Type="Italic">guanxi</Emphasis> practices: A multi-level analysis of <Emphasis Type="Italic">guanxi</Emphasis> practices and procedural justice perceptions

In this research, we compared and contrasted the effects of managers’ interpersonal level guanxi practice and group level guanxi practice on employees’ procedural justice perceptions. Results indicated that interpersonal guanxi practice was associated with increased employee fairness perceptions whereas group level guanxi practice (the sense that guanxi is used often to make human resource decisions within a management group) was negatively related to perceived fairness. Thus, while individuals may like the personal favors of managers’ interpersonal guanxi practice, their sense of justice is undermined by the broad use of guanxi. In addition, group level guanxi practice moderated the relationship between interpersonal guanxi practice and procedural justice such that this relationship was stronger in work units with high levels of group level guanxi practice. Thus, when employees see many others affected by guanxi, their sense of justice is even more strongly influenced by interpersonal guanxi practice.     

Arbitrator Acceptability: Does Justice Matter? Arbitrator Acceptability

There is virtually no theory-based research that examines if arbitrator behaviors influence whether they will be chosen for future cases. This longitudinal field study uses organizational justice theory to predict the acceptability of arbitrators in dispute-resolution processes involving labor and management representatives in actual cases. The data indicate that procedural justice is more important in predicting arbitrator acceptability in interest than in rights arbitration cases. Arbitrator distributive justice, procedural justice, and interactional justice are all related to acceptability of arbitrators. Procedural justice and interactional justice are differentially related to evaluation of arbitrators, suggesting that they are distinct constructs.     

Five dimensions of organizational citizenship behavior: Comparing antecedents and levels of engagement in China and the US

The purpose of this article is to investigate differences between the US and China in (1) employees’ level of engagement in the five dimensions of organizational citizenship behavior (OCB) identified by Organ (1988), and (2) the effects of perceived distributive justice and perceived supervisor support on OCB. Results suggest that Chinese respondents have a higher level of sportsmanship and courtesy, but a lower level of civic virtue than the US respondents. In addition, perceived supervisor support is significantly related to all five OCB dimensions for the Chinese sample, whereas for the US sample, perceived distributive justice is significantly related to conscientiousness and sportsmanship and marginally related to altruism. A follow-up study was conducted in the US to examine the direct effects of such cultural factors as individualistic/collectivistic orientation and power distance orientation on each of the five OCB dimensions, and their moderating effects on the relationships of the five OCB dimensions with perceived supervisor support and perceived distributive justice. Results suggest an effect of individualistic/collectivistic orientation on the five OCB dimensions. No relationship was found between power distance orientation and OCB. Moreover, the results did not support our predictions regarding the moderating effects of individualistic/collectivistic orientation and power distance orientation on the relationships between OCB dimensions and perceived supervisor support or perceived distributive justice.     

The effects of procedural and informational justice in the integration of related acquisitions

This study explores the independent and interactive effects of procedural justice and informational justice on post‐deal value creation in large, related acquisitions. Our results show that informational justice and procedural justice affect different components of value creation. Procedural justice is critical in realizing market position improvements following the integration process, while informational justice is essential in achieving market position gains during integration and financial return gains both during and post‐integration. Indicating that the interrelationships between different justice dimensions may be more complex than previously thought, we find that procedural justice reduces the positive effects of informational justice on financial return during the integration process, while it magnifies the effects of informational justice on the combined firms' market position during integration efforts. We explore the implications of these results for future research on the acquisition integration process and for practicing managers engaging in large, related acquisitions. Copyright © 2008 John Wiley & Sons, Ltd.     

Management,Organizational Justice and Emotional Exhaustion among Chinese Migrant Workers: Evidence from two Manufacturing Firms

This article explores how Human Resource (HR) policies and practices influence employee perceptions of organizational justice, which in turn impacts employee emotions and feelings of emotional exhaustion. Using structural equation modelling and based on employee survey data drawn from two manufacturing organizations, we find that a strong HR system — perceived by workers as distinctive, attractive and consistently implemented — fosters perceptions of distributive, procedural and interactive justice. However, only distributive injustice leads to negative emotions and emotional exhaustion. This is explained by reference to the cultural and institutional context (China), status (migrant) and type of workers (semi‐skilled, manual) included in the study. We discuss the theoretical and practical implications that arise from these findings.     

Pioneering Advantages and Entrepreneurs' First‐mover Decisions: An Empirical Investigation for the United States and China

New ventures are often launched for the purpose of pioneering an innovative new product or service in the marketplace. Entrepreneurs or founders of new ventures thus often have to make the decision whether to be the market pioneer or the first mover. While being a first mover potentially is advantageous, it also involves taking risks and facing uncertainties. Entrepreneurs must assess the benefits and risks of pioneering in the first‐mover decision‐making process to realize the potential competitive advantages associated with being a pioneer. Previous research has shown how entrepreneurs perceive potential gains and losses associated with exploring opportunities as the key defining element of entrepreneurial decision‐making. Past studies have also indicated that cultural and business environmental factors affect both perceptions and decision‐making. However, studies to date have insufficiently addressed the relationship between entrepreneurs' perceived pioneering advantages/disadvantages and their first‐mover decisions, with little attention to cross‐national differences. This study includes hypotheses postulating how entrepreneurs' perceived advantages and disadvantages of pioneering affect the number of first‐mover decisions made by entrepreneurs in two different cultural contexts, the United States and China. We collect data from 152 U.S. entrepreneurs and 140 Chinese entrepreneurs over a four‐year period and carry out empirical tests on the hypotheses using Poisson regression models. Our results provide insight on how culture affects perceptions of advantages and disadvantages of pioneering, and how these perceptions impact the likelihood of making a first‐mover decision. We find that a higher level of perceived advantages will drive first‐mover decisions, whereas perceived disadvantages will deter first‐mover decisions. The negative effect of perceived erosion disadvantages on the number of first‐mover decisions was higher for Chinese entrepreneurs, consistent with the high risk‐aversion culture in China. However, this effect was not found for perceived uncertainty disadvantages, suggesting that the risk‐averse characteristics of Chinese entrepreneurs is an oversimplification, and that the Chinese cultural, business, and legal environment helps offset uncertainty disadvantages. We also find an interesting positive moderating effect of perceived advantage on the relationship between perceived disadvantages and the number of first‐mover decisions in China only. That is, if perceived advantages are low, Chinese entrepreneurs are more risk averse than U.S. entrepreneurs; but if perceived advantages are high, Chinese entrepreneurs are more risk‐seeking than U.S. entrepreneurs. This finding again challenges the risk aversion conclusion found by previous studies of Chinese managers.     

Small business industrial buyers' price sensitivity: Do service quality dimensions matter in business markets?

One of the major obstacles to effective pricing emanates from difficulties experienced in predicting business buyers' price sensitivity. With a view to obviating these obstacles, this study examines the effect of five key physical distribution service quality dimensions on price sensitivity from the perspective of small and medium retail buyers. Based on a survey of 233 cellular phone retailers in China, the authors articulate how the five salient service quality dimensions exert either direct effects on price sensitivity or indirect impacts through perceived value and customer satisfaction. Theoretical and managerial implications are also provided for effective retailer relationship management, profitability improvement, and customer segmentation in distribution channels.     

Mobility norms,risk aversion,and career satisfaction of Chinese employees

Drawing on Turner’s (American Sociological Review, 25:855–867, 1960) framework of contest and sponsored mobility norms, this study investigated factors that affect employees’ career satisfaction in the Chinese setting. Using two organization-referenced variables, procedural justice and perceived organizational support (POS), to represent contest mobility norm and sponsored mobility norm, we evaluated their effects on career satisfaction. We also explored the moderating role of risk aversion on these relationships. Several hypotheses were developed and tested on a sample of 239 employees working in a foreign-invested enterprise in China. The results of regression analysis showed that procedural justice and POS contributed to career satisfaction in a cumulative manner. Further, among the risk-averse employees, the relationship between POS and career satisfaction was stronger.     

Corruption and change: the impact of foreign direct investment

This study examines influences on the level of corruption in countries from a strategic perspective. Corruption is one of the country‐level influences on market entry, investment, and other decisions fundamental to strategic management at the international level. The study examines the impact on corruption of change in levels of foreign direct investment (FDI). It uses the Corruption Perceptions Index (CPI) scores computed by Transparency International for 1999 and 2000. Results indicate that the more rapid the rate of change in FDI, the higher the level of corruption. Higher levels of perceived corruption are associated with each of two dimensions of national culture: uncertainty avoidance and masculinity. Research and managerial implications are also discussed. Copyright © 2004 John Wiley & Sons, Ltd.     

Managerial trust in new product development projects: its antecedents and consequences

This research examines the impacts of relationship-based antecedents (e.g., procedural justice) and character-based antecedents (e.g., transactional leadership) on managerial trust in new product development (NPD) teams. The moderating impact of environmental turbulence on team performance is also investigated. Using data from 107 NPD projects in Turkey, we find that procedural justice, distributive justice, and transformational leadership are significantly related, and conflict is negatively related to managerial trust. We also find that managerial trust is significantly related to product success and team learning under both high and low environmental conditions, but it is significantly related to speed-to-market only under high-turbulent conditions. We conclude by discussing the theoretical and managerial implications.     

Trust formation in Korean new product alliances: How important are pre-existing social ties?

The focus of this study is on the nature and influence of social connections versus other relational mechanisms on trust formation in an emerging Asian economy. We examine the role of communication quality, perceived fairness, and pre-existing social relationships for the formation of trust in 47 vertical new product development alliances in South Korea. The empirical results indicate a relatively minor importance of pre-existing social ties vis-à-vis communication quality and fairness for the development of trust. Contrary to widespread perceptions, pre-existing social ties do not appear to directly contribute to establishing trust with external alliance partners in Korea. Multiple explanations are offered for this unexpected finding. Instead, existing social relationships moderate the importance of fairness for trust formation. When conducting partnerships with Korean firms, managers should focus more on a quality communication and fair behavior when trust formation is the objective, than on social connections.     

程序公平对新产品开发成功的影响——跨职能整合的中介作用

本文通过对中外汽车合资企业的实地调研，提出将程序公平引入现有关于跨职能整合与新产品开发成功的模型中，并进一步提出跨职能整合在合资企业程序公平与新产品开发成功关系中的中介作用。通过对获取数据的分析，发现合资企业程序公平不仅可以直接影响合资企业的新产品开发成功，而且也可以通过跨职能整合间接影响新产品开发成功，而跨职能整合在程序公平与新产品开发成功关系中起中介作用。     

The effects of customer justice perception and affect on customer citizenship behavior and customer dysfunctional behavior

This research investigates whether customer justice perception influences affect and, in turn, customer citizenship behavior and customer dysfunctional behavior. Drawing on the social exchange theory and frustration-aggression theory, this paper argues that distributive justice, procedural justice, and interactional justice influence positive affect as well as negative affect. Furthermore, this study argues that positive affect influences customer citizenship behavior, while negative affect influences customer dysfunctional behavior. To test these relationships, the present study uses data from 209 executive-MBA students and 68 buyer companies. The results of the structural equation analysis reveal that most of these hypotheses are supported. Following a discussion of the results, research limitations and directions for future research are offered.     

Is perceived value more than value for money in professional business services?

It is well documented in the literature that customer perceived value plays an important role in understanding behavioral outcomes of business customers. However, most business-to-business research has focused on the functional dimension of perceived value, while consumer research has already advanced to a multidimensional value conceptualization. This study expands the concept of perceived value in the professional business services context to functional, emotional, and social perceived value. Based on signaling theory, we conceptualize and empirically support links between the three dimensions of perceived value and its antecedents (perceived corporate reputation, perceived corporate credibility, and perceived relationship quality) and outcomes (satisfaction and loyalty). The results of a survey involving 228 business clients reveal differences in links between value antecedents and the three perceived value dimensions: while perceived corporate credibility and relationship quality impact all dimensions, perceived corporate reputation impacts only perceived emotional value. Results of our study help in understanding how satisfaction and loyalty are viewed as perceived value outcomes; apart from functional value, emotional and social values play a significant role in the satisfaction and loyalty of professional business services clients.     

Downsizing Effects on Survivors: Layoffs,Offshoring, and Outsourcing

In a representative sample of 13,683 U.S. employees, we compared survivors of layoffs, offshoring, outsourcing, and their combinations to a group who experienced no downsizing. Survivors of layoffs perceived lower organizational performance, job security, affective attachment, calculative attachment, and had higher turnover intentions. Offshoring survivors perceived lower performance, fairness, and affective attachment, but outsourcing survivors generally did not have more negative outcomes than the no‐downsizing group. Layoffs generally had more negative outcomes than other downsizing forms.