Endogeneity and non-response bias in treatment evaluation – nonparametric identification of causal effects by instruments

This paper proposes a nonparametric method for evaluating treatment effects in the presence of both treatment endogeneity and attrition/non-response bias, based on two instrumental variables. Using a discrete instrument for the treatment and an instrument with rich (in general continuous) support for non-response/attrition, we identify the average treatment effect on compliers as well as the total population under the assumption of additive separability of observed and unobserved variables affecting the outcome. We suggest non- and semiparametric estimators and apply the latter to assess the treatment effect of gym training, which is instrumented by a randomized cash incentive paid out conditional on visiting the gym, on self-assessed health among students at a Swiss university. The measurement of health is prone to non-response, which is instrumented by a cash lottery for participating in the follow-up survey.     

The R&D Investment–Uncertainty Relationship: Do Strategic Rivalry and Firm Size Matter?

This paper uses a real options perspective to augment a standard research and development (R&D) investment model and implement a firm‐level empirical analysis to assess the practical significance of market uncertainty and its interactions with strategic rivalry and firm size. We use a measure of firm‐relevant market uncertainty along with panel data and find that firms invest less in current R&D as uncertainty about market returns increases. The effect of firm‐specific uncertainty on R&D investment is smaller in markets where strategic rivalry is likely to be more intense. Furthermore, holding access to financing constant, the effect of uncertainty on R&D investment is attenuated for large firms. Copyright © 2012 John Wiley & Sons, Ltd.     

Do Danes and Italians Rate Life Satisfaction in the Same Way? Using Vignettes to Correct for Individual‐Specific Scale Biases

Self‐reported life satisfaction is highly heterogeneous across similar countries, a phenomenon that may be explained by the different scales and benchmarks that people use to evaluate themselves. This study uses cross‐sectional data gathered from older populations in ten European countries to compare estimates from a model that assumes reporting styles are constant across respondents against estimates from a model in which anchoring vignettes help correct for individual‐specific scale biases. Variations in response scales explain much of the difference in the raw data. Moreover, the cross‐country ranking in life satisfaction depends significantly on scale biases.     

‘My Brilliant Career’? New Organizational Forms and Changing Managerial Careers in Japan,the UK,and USA

The end of the traditional management career has been heralded with supporting, albeit largely anecdotal, data. The ‘old’ career was set within internal labour markets in large organizations and characterized by long‐term stability. The ‘new’ arrangements have apparently shifted responsibility from employer to employee, with careers being developed across organizations. Such change is premised on new organizational forms and is often associated with a growing sense of employee insecurity. We explore the reality of this ‘new’ scenario through interpretation of in‐depth semi‐structured interviews conducted with middle and senior human resources managers in large firms in Japan, the UK, and USA. The data indicate that most of our case study organizations had downsized and delayered, with hybrid structural forms emerging. Career prospects were diminished, with fewer vertical promotions and a greater emphasis on lateral ‘development’; middle managers were generally resentful of such factors and forces. Although not directly reflective of ‘Anglo‐American’ business practice, similar changes to career trajectories were witnessed in Japan as in the UK and USA.     

Mutual Gains? Health‐Related HRM,Collective Well‐Being and Organizational Performance

Research on the effects of HR management on employees’ psychological well‐being has yielded inconclusive results. Moreover, prior works remain unclear on whether human resource practices specifically aimed at enhancing employee well‐being also benefit organizational performance. Building on signaling theory and conservation of resources theory, our study investigates the relationship between health‐related human resource management (HHRM), employees’ collective well‐being (in terms of collective emotional exhaustion and collective engagement) and organizational performance. Results from a multi‐source field study of top management team members, HR representatives, and 15,952 employees in 88 organizations reveal a positive indirect relationship between HHRM and employees’ collective well‐being, which is mediated by employees’ positive stress mindset. In addition, we find this positive indirect association to depend on the level of transformational leadership climate in organizations. Finally, our findings also show a positive indirect relationship between HHRM and company performance, mediated by employees’ positive stress mindset and collective engagement.     

Can Banks Self‐Regulate? Voluntary Agreements,Intrinsic Motivation and Games

This article argues that lessons on how to achieve a sustainable financial system can be learnt from the work done on sustainable commons (on common‐pool resources – CPRs – where there is no ‘tragedy of the commons’). Existing approaches to financial regulation may not give proper attention to available solutions. The article proposes that innovative solutions could be tested using experimental methods commonly used in CPRs: repeat run, feedback driven games.     

The reluctant bargainers? McDonald’s,unions and pay determination in Germany and the UK

There is growing evidence that multinational enterprises (MNEs) increasingly develop organisation-based employment strategies, which promote the transmission of employee relations practices across national borders. This article provides an analysis of one MNE’s employee relations practice and what appears to be its preference for operating, where possible, independently of national industrial relations systems. The findings, which draw on a UK/German comparison, raise a number of questions about the adequacy of even highly juridifed national systems to protect workers rights in practice.     

Varieties of capitalism,neoliberalism and the economic crisis of 2008–?

This article examines the responses of national governments to the economic crisis that commenced in 2008. We argue that the current search for new bases for accumulation is leading to reforms designed to weaken the position of labour. Moreover, the tendency towards a weakening of labour's position was already evident across different ‘varieties of capitalism’ before the crisis erupted. We discuss the implications for comparative institutional analysis and stress the need for a renewed focus on the underlying dynamics of capitalist economies.     

The decision to moonlight: does second job holding by the self‐employed and employed differ?

This article considers drivers of second job holding among the self‐employed in comparison with the employed. Econometric analysis of panel data explores whether the self‐employed are more or less likely to take on a second job when already running their own business than their employed counterparts. The findings contribute to the literature through identification of a need‐based variable—difficulty in meeting housing costs—as a key driver of movements from self‐employment to hybrid entrepreneurship. Findings, further, identify different patterns of second job holding by gender, particularly among self‐employed individuals.     

How Does Project Termination Impact Project Team Members? Rapid Termination, ‘Creeping Death’, and Learning from Failure

Although extant studies have increased our understanding of the decision of when to terminate a project and its organizational implications, they do not explore the contextual mechanisms underlying the link between the speed at which a project is terminated and the learning of those directly working on the project. This is surprising because perceptions of project failure likely differ between those who own the option (i.e., the decision maker) and those who are the option (i.e., project team members). In this multiple case study, we explored research and development (R&D) subsidiaries within a large multinational parent organization and generated several new insights: (1) rather than alleviate negative emotions, delayed termination was perceived as creeping death, thwarting new career opportunities and generating negative emotions; (2) rather than obstructing learning from project experience, negative emotions motivated sensemaking efforts; and (3) rather than emphasizing learning after project termination, in the context of rapid redeployment of team members after project termination, delayed termination provided employees the time to reflect on, articulate, and codify lessons learned. We discuss the implications of these findings.     

Guest Editors’ Introduction: Is the HRM Process Important? Past,Current, and Future Challenges

Ten years ago, Bowen and Ostroff ( 2004 ) criticized the one‐sided focus on the content‐based approach, where researchers take into account the inherent virtues (or vices) associated with the content of HR practices to explain performance. They explicitly highlight the role of the psychological processes through which employees attach meaning to HRM. In this first article of the special section entitled “Is the HRM Process Important?” we present an overview of past, current, and future challenges. For past challenges, we attempt to categorize the various research streams that originated from the seminal piece. To outline current challenges, we present the results of a content analysis of the original 15 articles put forward for the special section. In addition, we provide the overview of a caucus focused on this theme that was held at the Academy of Management annual meeting in Boston in 2012. In conclusion, we discuss future challenges relating to the HRM process approach and review the contributions that have been selected—against a competitive field—for this special issue. © 2014 Wiley Periodicals, Inc.     

Differences in Opportunities? Wage,Employment and House‐Price Effects on Migration*

Most empirical studies of individual migration choice analyse factors associated with out‐migration from an origin location. In contrast, we model the migration decision within the context of potential destinations, combining British panel data over the period 1992–2008 with other data sources. Contrary to earlier micro studies, we show that differences in house prices levels (but not growth) are important determinants of household migration for homeowners. Unemployed individuals respond to regional differences in expected individual wages, whereas the employed are more sensitive to employment opportunities. Our evidence is consistent with partners of heads of households being tied migrants.     

Labour under the law: a new law of combination,and master and servant,in 21st‐century Britain?

It is valuable to evaluate contemporary employment law on industrial action and trade unions, and employment protection, in relation to the 19th‐century law of combination, and master and servant. Such a historical comparison, despite differing language and legal sanctions, focuses attention on the goal of legal ‘reform’—the drive to control workers' collective organisations and enhance the managerial prerogative in order to consolidate employers' capacity to determine the terms of the contract of employment or for services, and the content of the pay–effort bargain, that is, the real subordination of labour. It is a form of class struggle from above.     

Affective,Normative and Continuance Commitment: Can the ‘Right Kind’ of Commitment be Managed?

This study examines the multi-dimensionality of organizational commitment: affective, normative and continuance (including the sub-components of low perceived alternatives and high personal sacrifice), and how these are differentially related to a set of antecedents and consequences (i.e. turnover intentions, absenteeism and acceptance of change). The results, based on a sample of 505 Australian male fire-fighters, indicate that organizational commitment is best represented by the four-factors of affective, normative, low perceived alternatives and high personal sacrifice. In addition, employees experience different personal, job-related and environmental causes of commitment depending on whether they feel they want to, ought to, or need to remain with the organization. Further, not all facets of commitment enhanced organizational effectiveness, with affective being the most beneficial (i.e. employees are less likely to leave, be absent and are more accepting of change) and low perceived alternatives being the most detrimental (i.e. less accepting of change). The implications of these findings for the management of desirable forms of commitment are discussed.