Trading off learning and performance: Exploration and exploitation at work

Employees are increasingly given control over how they learn, and their choices for training are diverse and varied, yet employees must balance competing demands. On one hand, they are expected to be increasingly efficient in their current job duties – on the other hand, they are expected to develop new skills and competencies that enable them to adapt and respond to changing job demands. Drawing from the organizational learning literature, we propose a model of worker and work characteristics that inform choices between two mindsets related to learning at work. The first mindset is exploration, or the pursuit of learning outside one’s current knowledge domain; the second mindset is exploitation, the refinement/deepening of one’s existing knowledge stock focusing on the task at hand. We further propose that these strategic choices, or trade-offs, influence employee learning and performance in unique ways, with different implications for both routine and adaptive performance. Finally, we incorporate the notions of feedback loops and risk assessments that influence ongoing decisions between exploration and exploitation mindsets. Recommendations for future research and extensions of the theoretical model are also proposed.     

Expatriate knowledge utilization and MNE performance: A multilevel framework

We present a multilevel conceptual framework of expatriate knowledge utilization. Drawing from the resource-based view and multilevel approaches to expatriate utilization, we describe how individual expatriate characteristics (task-related and intercultural competencies, and motivation to transfer knowledge) and international adjustment, as well as subsidiary characteristics (absorptive capacity and knowledge sustainability) influence knowledge transfer effectiveness. We also draw from outward knowledge transfer and expatriate learning perspectives to address the cyclical nature of the process. As such, we include the effect of expatriate learning not only in continued knowledge flows to the subsidiary, but also in knowledge flows to the home division. We offer several implications for research on practice, including the notion that knowledge transfer to the subsidiary should continue upon repatriation, and that outward knowledge transfer can begin before repatriation. The framework reiterates that expatriates are valuable human capital and a source of sustained competitive advantage to the MNE.     

Performance feedback interviews as affective events: An exploration of the impact of emotion regulation of negative performance feedback on supervisor–employee dyads

Emotion has been treated as merely an underlying and implicit phenomenon in organizational performance feedback scholarship and has yet to be examined in its own right. This paper conceptualizes negative performance feedback interviews as affective events that elicit negative emotions in both employees (as feedback receivers) and supervisors (as feedback givers). We argue that both employees and supervisors cope with these emotions, utilizing emotion regulation strategies, which differently impact employees' engagement in learning behaviour through psychological safety, and supervisors' satisfaction with giving negative performance feedback. Drawing on affective events theory (AET), appraisal theory of emotion, emotion regulation and performance feedback literature, we offer theoretical insights that may encourage empirical studies to explore the role emotion regulation plays in performance feedback interviews. Theoretical and human resource management implications are discussed.     

Learning to Build a Supply Network: An Exploration of Dynamic Business Models

abstract    Firms are confronted with the challenge of learning how to develop and manage supply networks, which reduce their operating costs and maximize their effectiveness in the marketplace. In pursuit of such goals they are increasingly turning to the use of dynamic business models. Dynamic business models represent continuous change and therefore make firms learn constantly new and better ways of doing things. These changes are manifestations of inter-firm knowledge transfer. The aim of this research is to explore dynamic business models as an example of inter-firm knowledge transfer. Adopting a case study approach, we examine three components of dynamic business models – network structure, inter-firm routines and knowledge forms – and describe their integration through a problem solving approach to building an offshore supply network. Our empirical findings suggest that dynamic business models help organizations identify and link key actors with each other (at the firm and individual level), and aid the identification and specification of appropriate knowledge types and knowledge transfer mechanisms for different actors, in different contexts.     

The bright side and dark side of trust: The mediating effect of franchisor trust on performance

Previous literature has not examined the dual role of trust in franchise relationships. We extend the franchise and relational governance literature by showing that trust has both a “bright side” and a “dark side” in franchisor–franchisee relationships. Based on transaction cost and knowledge-based reasoning, we argue that intangible knowledge assets and environmental uncertainty have an indirect effect on performance via trust, due to its relational risk and knowledge exchange effect. Using data from the franchise sector in Germany, we show that trust positively mediates the impact of intangible knowledge assets and negatively mediates the impact of environmental uncertainty on franchisor performance. The first effect refers to the “bright side” of trust showing that intangible brand name assets increase trust which, in turn, has a positive effect on performance. Conversely, the second effect refers to the “dark side” of trust highlighting that environmental uncertainty diminishes trust resulting in a negative effect on performance.     

组织学习能力对知识创新的影响机理与实证研究

本文从组织学习理论出发,构建学习能力对知识创新的影响模式。实证研究结果表明学习能力对知识创新有正向的影响。即组织若具备较好的学习能力,则知识创新的绩效越好。学习能力的各观测变量中,应用能力最具解释力,其次为获取能力,再次为整合能力与转换能力。     

Forecasting in social settings: The state of the art

This paper provides a non-systematic review of the progress of forecasting in social settings. It is aimed at someone outside the field of forecasting who wants to understand and appreciate the results of the M4 Competition, and forms a survey paper regarding the state of the art of this discipline. It discusses the recorded improvements in forecast accuracy over time, the need to capture forecast uncertainty, and things that can go wrong with predictions. Subsequently, the review classifies the knowledge achieved over recent years into (i) what we know, (ii) what we are not sure about, and (iii) what we don’t knowIn the first two areas, we explore the difference between explanation and prediction, the existence of an optimal model, the performance of machine learning methods on time series forecasting tasks, the difficulties of predicting non-stable environments, the performance of judgment, and the value added by exogenous variables. The article concludes with the importance of (thin and) fat tails, the challenges and advances in causal inference, and the role of luck.     

Company‐based education programmes: what's the pay‐off for employers?

This article addresses the question of whether company‐based programmes of education repay employer investment in terms of learning transfer to the workplace. Building on earlier work by the authors, we use an in‐depth longitudinal case study of a long‐standing programme of continuous education sponsored by the US‐based NCR corporation in Scotland. As educators, we expected to find that the programme would have been associated with positive outcomes, based on the belief that 'embrained' or formal, abstract knowledge can be transferred to the workplace. We were aware, however, that research in this area has not been promising in demonstrating learning transfer, in part because such a process is mediated by the quality of the transfer climate. Drawing on survey data and in‐depth interviewing of a sample cohort, we found that the programme of company‐based education had significant implications for learning transfer. Surprisingly, however, transfer climate had little influence on the willingness of employees to use their knowledge to make improvements or generate innovations at work. Finally, we found that these data supported situated learning theory, stressing the importance of tacit knowledge, informal learning, the communal nature of workplace learning and the difficulties in evaluating learning transfer. We believe that these results have important implications for the literature on the evaluation of HRD interventions, for human resource development (HRD) specialists interested in developing programmes of so‐called lifelong learning and for practitioners working in the area of organisational learning and learning organisations.     

Learning, Teamwork and Appropriability: Managing Technological Change in the Department of Social Security

Drawing on an extensive case study, we argue that management has to actively manage information flows, both within the organization and between the organization and its environment. Three tasks of knowledge management are, in our view, important in building technological capability: appropriation, teamworking and learning. 'Appropriation' includes the retention and effective utilization of internal knowledge. 'Teamworking' refers to the integration of diverse knowledge bases. 'Learning' embraces the acquisition and exploitation of externally held knowledge     

Feedback frequency and appraisal reactions: a meta-analytic test of moderators

Abstract

Performance appraisals provide employees with feedback that helps them improve subsequent performance, with acceptance of feedback as a key precondition to improve performance. In this study, we use the due process model of performance feedback to better understand predictors of favorable employee reactions to performance appraisal. The due process model views knowledge of performance standards and frequent feedback as aspects of adequate notice in performance appraisal, and as key predictors of favorable appraisal reactions. Empirical findings to date, however, have been inconsistent on this issue. Feedback frequency has not been consistently related to appraisal reactions in primary studies, suggesting the potential for moderator effects. We therefore meta-analyzed the relationships between knowledge of performance standards and feedback frequency with appraisal reactions through the due process lens with performance rating favorability and knowledge of performance standards as moderators. Our findings suggest prior inconsistent results could be partly explained by the moderating effects of performance rating favorability and knowledge of performance standards on the relationship between feedback frequency and appraisal reactions. We discuss the implications of our results for theory, research and practice.     

Does going abroad lead to going green? Firm outward foreign direct investment and domestic environmental performance

This study examines whether and how outward foreign direct investment (OFDI) affects firms' domestic environmental performance. We use both the reverse knowledge transfer and resource crowding perspectives to predict the association. Using a sample of Chinese firms, we find that firms' environmental performance improves after the initiation of OFDI, which is consistent with the reverse knowledge transfer perspective. Furthermore, we find that when the host countries of OFDI are developed countries, have stricter environmental regulations, and are characterized by higher values for the long-term orientation and masculinity dimensions of national culture, firms enjoy a further improvement in environmental performance. Our channel tests show that firms' domestic green patent applications and their investment in research and development increase after the initiation of OFDI.     

Knowledge transfer in acquisitions: Fear of exploitation and contamination

Knowledge transfer plays an important role in the creation of synergies in acquisitions. Acquisitions provide opportunities for learning and are often justified on the basis of the new knowledge made available or created by them. Nevertheless, we do not know enough about the factors that influence knowledge transfer in the context of acquisitions. This paper focuses on the motivation on part of individuals in the acquiring and target companies to share their knowledge and make use of the knowledge of their partner. More specifically, it is hypothesised that the fear of being exploited or contaminated by the other party will have a profound negative effect on the transfer of knowledge in acquisitions. These hypotheses are tested on a sample of acquisitions by Finnish companies in 2001–2004 and they are largely supported by the empirical analyses.     

How to achieve cost savings and strategic performance in purchasing simultaneously: A knowledge-based view

The competitive advantage purchasing provides has been debated for decades. For a novel perspective we derive a theoretical framework grounded in the knowledge-based view in order to examine how purchasing knowledge and purchasing integration impact cost and strategic performance. The derived hypotheses are tested based on extensive secondary data from a large European multinational utility company. The 179 studied ‘purchasing-internal client relationships’ contain real contracted savings data and internal client ratings of purchasing knowledge, purchasing integration and strategic purchasing performance. We show that purchasing knowledge is a major antecedent for both savings and strategic purchasing performance. This effect is further amplified by purchasing integration. With this study, we extend the understanding of the purchasing knowledge–performance link. We conclude that purchasing knowledge becomes particularly valuable when combined with other functions' processes through purchasing integration. This causal chain is also supported through general knowledge-based view theory. Moreover, we provide numerical evidence of the value of knowledge creation and integration processes to purchasing professionals in our managerial implications based on results obtained from actual purchasing savings data.     

The influence of performance feedback frequency and affective commitment on the sunk cost effect

The purpose of this study is to explore how combined effect of feedback frequency of investment performance and manager's affective commitment on reduction of the sunk cost effect. To this end, we designed an experimental questionnaire to collect data from production managers of electronics manufacturing companies listed on Taiwanese stock markets and used a hierarchical regression model to examine the relationships among variables. The results from 336 samples showed that just considering performance feedback frequency or affective commitment does not necessarily reduce the sunk cost effect. Only high feedback frequency jointed with high affective commitment can suppress the willingness of manager to continue a disadvantageous investment project.     

The Bridging Role of Expatriates and Inpatriates in Knowledge Transfer in Multinational Corporations

Drawing on the knowledge‐based view of the firm, this article provides the first empirical study that explicitly investigates the relationship between different categories of international assignees and knowledge transfer in multinational corporations (MNCs). Specifically, we examine (1) the extent to which expatriate presence in different functional areas is related to knowledge transfer from and to headquarters in these functions and (2) the extent to which different categories of international assignees (expatriates vs. inpatriates) contribute to knowledge transfer from and to headquarters. We base our investigation on a large‐scale survey, encompassing data from more than 800 subsidiaries of MNCs in 13 countries. By disaggregating the role of knowledge transfer across management functions, directions of knowledge transfer, and type of international assignees, we find that (1) expatriate presence generally increases function‐specific knowledge transfer from and, to a lesser extent, to headquarters; and that (2) the relevance of expatriates and former inpatriates varies for knowledge flows between headquarters and subsidiaries. Additionally, we discuss implications for research and practice, in particular regarding different management functions and different forms of international assignments, and provide suggestions for future research. © 2015 Wiley Periodicals, Inc.     

Open search strategies and firm performance: The different moderating role of technological environmental dynamism

Mainly driven by the rapid progress of the ‘open innovation’ paradigm, previous research has devoted considerable efforts in investigating how the degree of openness to external knowledge influences firms׳ innovation performance. However, much less is known about its impact on performance at the firm level. Moreover, the question of which open search strategy is more suitable depending on environmental features is unresolved. We focus on breadth and depth as two distinct open search strategies and claim that, besides their different benefits in terms of learning and innovation, it is also necessary to consider their costs. Based on survey data of 248 high-technology manufacturing Spanish firms, this study extends recent research about the context dependency of openness effectiveness by showing that the effect of these two open search strategies on perceived firm performance is contingent with technological environmental dynamism in a reverse fashion. While search breadth is found to be positively associated with performance in less technologically dynamic environments, it seems to hurt performance in more dynamic contexts. On the contrary, while search depth is found to have a positive effect on performance in highly technologically dynamic environments, it appears to harm firm performance in more stable contexts.     

How do performance feedback characteristics influence recipients’ reactions? A state-of-the-art review on feedback source,timing, and valence effects

One of the most important measures to stimulate individual performance is feedback, whose effectiveness highly depends on underlying feedback characteristics. Although an extensive body of research has stressed its importance, a conclusive overall picture on feedback characteristics effects is missing. However, synthesized knowledge is important when one is willing to implement feedback systems to effectively influence recipients’ reactions. To address this issue, we organize and summarize the findings regarding the main effects of feedback source, feedback timing, and feedback valence as well as regarding their interactions with the source, message, task, and recipients’ individual characteristics from different disciplines. Based on an analysis of 64 empirical articles, we show that main effects have been considered very context-specific and are often inconsistent, while the occurrence of certain source, message, task, and individual characteristics even inverts the generally assumed main relationships. Based on an extract of our findings, we provide specific research propositions and offer avenues for future research, which will be of value for researchers and feedback-providing practitioners.     

Knowledge sharing,knowledge leaking and relative innovation performance: An empirical study

External knowledge sharing and knowledge leakage often pose a strategic dilemma when firms conduct innovation activities. In this study, we focus on the positive and negative effects of this phenomenon. In particular, we empirically examine the effects of a firm׳s external knowledge sharing on its relative innovation performance under the contingencies of accidental and intentional leakage of business-critical knowledge. Results based on a survey of 150 Finnish technology-intensive firms show that external knowledge sharing has a positive effect on innovation performance, but high levels of accidental and intentional knowledge leakage by a firm׳s employees negatively moderate this relationship. These results contribute to the understanding of the potentially positive and negative issues related to external knowledge sharing and knowledge leakage, which have thus far remained empirically under-researched.     

An Examination of Collaboration and Knowledge Transfer: China–Singapore Suzhou Industrial Park

abstract    This paper examines alliance knowledge transfer using a case study of the China–Singapore Suzhou Industrial Park (SIP), an alliance involving the Chinese and Singaporean governments, their agencies, and various private sector organizations. The objective is to extend existing knowledge in the alliance learning area and provide deeper understanding of some process-oriented aspects of alliance learning performance. We found that tacit knowledge was particularly difficult to transfer and that issues involving collaborative interactions between the partners both facilitated and impeded knowledge transfer. We also found that competitive learning occurred, which impacted the partner relationship and knowledge transfer.     

Effectiveness and Efficiency of Cross-Border Knowledge Transfer: An Empirical Examination

abstract    Based on a sample of 102 US organizations, this study examines the impact of knowledge characteristics, recipient learning intent, source attractiveness, and relationship quality on the effectiveness and efficiency of knowledge transfer from the international business affiliates of these organizations. Findings indicate that recipient learning intent and source attractiveness positively impact the effectiveness of knowledge transfer. In addition, recipient learning intent was found to have a positive effect on knowledge transfer efficiency. In particular, results highlight the strong positive impact that the quality of the relationship between the source and the recipient has on both the efficiency and effectiveness of cross-border knowledge transfer. The study also indicates that knowledge value is positively associated with recipient learning intent and that knowledge value, rarity and non-substitutability influence source attractiveness. Finally, findings suggest that the relationship between knowledge characteristics and knowledge transfer is partially mediated by recipient learning intent and source attractiveness.