Target‐Setting,Pay for Performance,and Quality Improvement: A Case Study of Ontario Hospitals’ Quality‐Improvement Plans

This study examines whether difficult targets and quality indicators in executives' pay‐for‐performance (P4P) plans affect performance. The impact of target‐setting and P4P plans on quality improvement in the public sector is unclear. The Ontario government initiated the Quality Improvement Plan (QIP), which requires hospitals to set targets for quality indicators annually and link executive pay to target achievement since 2011. Analyzing Health Quality Ontario's database and hospitals' 2012–2013 QIPs, this study shows greater quality improvement in hospitals with difficult targets than hospitals with easy targets or without assigned targets; however, the positive impact disappears for high‐performance hospitals relative to their peers. We find no significant effect of the use of quality indicators in executives' P4P plans on quality improvement. Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd.     

Corporate social responsibility and stock price informativeness: The public interest perspective

In this paper, we propose a new theory that sheds a different light on the potential relationship between Corporate Social Responsibility (CSR) and Stock Price Informativeness (PI). More specifically, we explain why a neutral association between CSR and PI can be an indicator of high economic and social welfare, while a positive association can be an indicator of both markets and governments failure. Under a neutral relationship, we argue that mandatory disclosure is getting firms to disclose near their optimal level. Therefore, any voluntary disclosure beyond the mandatory regime (such as CSR disclosure) should not improve PI. We base our hypothesis on public interest theory that suggests that regulators promote the public interest when a market failure is identified. On the other hand, under a positive association between CSR and PI, we argue that regulators do not offer adequate incentives for firms to disclose at their socially optimal levels because the level of voluntary disclosure by socially responsible firms is optimal in comparison to the level of mandatory disclosure provided by other firms with weak CSR engagement.     

Equity recognition of mandatory accounting changes: the case of transitional goodwill impairment losses

This study investigates if and how the use of the retroactive method to account for a mandatory accounting change affects a firm's measurement and recognition choices. We examine if reporting incentives and constraints are associated with the magnitude of transitional goodwill impairment losses reported by Canadian firms implementing Section 3062 on purchased goodwill. Our results indicate firms have an incentive to both overstate and understate transitional goodwill impairment losses. We also show that financially literate and independent audit committees constrain managerial opportunism. Copyright © 2008 ASAC. Published by John Wiley & Sons, Ltd.     

Impact of industry sector on corporate diversification and firm performance: Evidence from Indian business groups

Prior business group (BG) studies implicitly assume that corporate diversification‐firm performance relationships are uniform across industry sectors. This generalization may lead to research implications that are not equally true for BG‐affiliated manufacturing and service firms. Drawing on strategy and marketing literature, this research addresses this scholarly gap. Our empirical analysis of a large sample of BG‐affiliated Indian firms over a five‐year period (2004‐2008) indicates that the influence of corporate diversification on firm performance is greater for affiliated service firms than affiliated manufacturing firms. Results also indicate that the influence of BG size and diversity on diversification‐firm performance relationship varies significantly depending on whether the focal firm belongs to the manufacturing or service sector. Firm's share ownership does not generate similar influence. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.     

Disclosing elements of disclosure: a test of legitimacy theory and company ethics

This paper focuses on some of the ethical issues related to voluntary disclosure of qualitative information by Canadian public companies. Drawing on various organizational theories, we examine some of the ways that companies can symbolically manage legitimacy through disclosure. Press releases of a sample of companies that received cease‐trading orders were analysed for their use of language. We found that high‐risk companies attempted to manage legitimacy by selectively releasing information and by using ambiguous language. Moreover, some companies behaved unethically by using language that suggested a positive future despite the imminent release of a cease‐trading order. These findings have implications for organizational and accounting theorists and stakeholders in the corporate, fiduciary, and investment communities. Copyright © 2008 ASAC. Published by John Wiley & Sons, Ltd.     

Relational Demography in Supervisor‐Subordinate Dyads: An Examination of Discrimination and Exclusionary Treatment

This study examines the link between supervisor‐subordinate dissimilarity and associated perceptions of discrimination and exclusionary treatment. Using a sample of 1,059 employees from a large Southeastern insurance company, we examined age, race, and gender dissimilarity as predictors of perceived discrimination, supervisory support, and leader‐member exchange. In addition, we examined supervisor liking/attraction and status of affiliation with supervisor as intervening variables. Race dissimilarity related positively to perceptions of discrimination and exclusionary treatment, mediated by both supervisor liking and status. Effects for age and gender dissimilarity were nonsignificant. We discuss the importance of these findings for understanding and managing dyadic relationships at work. Copyright © 2013 ASAC. Published by John Wiley & Sons, Ltd.     

Organizing a precarious black box: An actor‐network account of the Atlantic Schools of Business, 1980–2006

There is a growing use of actor‐network theory (ANT) throughout management and organization studies. While earlier ANT research used ethnography to “follow the actors” in the production of organization/knowledge, more recent studies use archival sources to examine developments over time. We extend the latter approach using qualitative social network analysis (SNA) and apply this to a case study of the Atlantic Schools of Business (ASB). Our contribution is two‐fold: first, through an examination of actors in the ASB networking processes over 26 years, we demonstrate how the seemingly stable surface of an organization can hide the precariousness of organizing; second, we reveal the potential fusion of ANT with SNA as a method for dealing with large qualitative datasets over long periods of time. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.     

The Use of Governance Indexes in the Governance‐Performance Relationship Literature: International Evidence

The objective of this study is threefold. First, we present a review of the international studies that have investigated the link between firm‐level governance scores and performance. To our knowledge, this study is the first to provide a comprehensive review of this recent and growing literature. Second, we discuss potential methodological shortcomings of using governance indexes. Third, we propose directions for future research. Overall, a clear positive relation is found between governance ratings and performance in Europe and in emerging economies, whereas studies conducted in the US and Canada have generated mixed evidence. The empirical problems related to measurement, substitution between governance arrangements, endogeneity, and optimization across governance choices are discussed. Solutions are proposed to alleviate these concerns. Copyright © 2011 ASAC. Published by John Wiley & Sons, Ltd.     

To improve investors' valuation of accounting earnings in emerging markets: evidence from Taiwan

The valuation of accounting earnings is related to the level of earnings management used by the firm. In emerging markets where earnings management is typically pervasive, investors lose confidence in accounting earnings and thus tend to under‐value earnings. Using data from Taiwan, we show that better governance characteristics are associated with improved investor valuation of accounting earnings. Under weaker governance structures, such as excessive control on the part of majority shareholders, small board size, and chief executive officer/chairman of the board duality, the market tends to under‐value accounting earnings. Reducing controlling shareholders' ownership, increasing board size, and reinforcing the monitoring function of the board improves investors' ability to value accounting earnings. Copyright © 2010 ASAC. Published by John Wiley & Sons, Ltd.     

Quick decisions tend to reinforce self‐interest choices among MBA students: The direct and moderating effects of temporal constraint and situational factors in ethical decision making

Employees face increasingly time‐pressured operational environments. Using theory from Reynolds' ( 2006 ) neurocognitive model of ethical decision making, we explore how temporal constraint, consequence framing, and organizational norms affect self‐interested decision making in business. Conducting three experimental manipulations with a sample of MBA students, we found the following: First, consistent with previous studies, high time pressure promotes self‐interested intentions. Second, unethical framing encourages self‐interested intentions, though this relationship is unaffected by the presence of time pressure. Third, unethical organizational norms encourage group‐interested intentions. Lastly, however, when these same norms are experienced under high time pressure, individuals display self‐interested intentions. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.     

Adoption of the Balanced Scorecard: A Contingency Variables Analysis

Our study investigates the adoption of the Balanced Scorecard (BSC) as a strategic planning system. We empirically examine the firm‐level factors—business‐level strategy, firm size, environmental uncertainty, investment in intangible assets, and prior performance— that are posited to differentiate BSC adopters from nonadopters. Drawing on a sample of Canadian firms and utilizing both survey and archival data, we find that BSC adopters (a) are more likely to follow a Prospector or Analyzer business strategy, (b) are significantly larger, (c) exhibit significantly higher environmental uncertainty than nonadopters, and (d) have weaker prior performance. Copyright © 2011 ASAC. Published by John Wiley & Sons, Ltd.     

The employment selection interview: disparity among research‐based recommendations,current practices and what matters to Human Rights Tribunals

We surveyed Human Resources (HR) professionals (N = 301) on their use of structure in employment interviews. We compared these data with research‐based recommendations and with elements of interview structure considered important by Canadian Human Rights Tribunals. Contrary to research‐informed recommendations, HR practitioners and Human Rights Tribunals appear to attach little importance to job analysis as the foundation for developing interview questions and to interviewer training. While Tribunals and the established research literature on employment interviewing favour standardization, this is of lesser concern to Canadian HR practitioners. Finally, there was convergence on valuing behavioural questions and note‐taking, but not on valuing interview panels. Implications of our findings for research and practice are discussed. Copyright © 2007 ASAC. Published by John Wiley & Sons, Ltd.     

Building a better literature review: Looking at the nomological network of the country‐of‐origin effect

Due to a rising pace of knowledge production, reviewing extant knowledge on mature topics has become increasingly challenging. Researchers often need to account for hundreds of references with little guidance on how to proceed. Taking the phenomenon of the country‐of‐origin effect (COE) as an example, this paper proposes a solution to tackle this challenge. By adopting the principles of integrative literature reviews and using online databases, bibliography management software, and literature‐mapping techniques, I organize 355 papers about the COE. As a result, the nomological network of the COE is drawn while establishing links between the phenomenon, its antecedents, and its outcomes. This methodological article contributes to building better literature reviews. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.     

Interest alignment for joint business development: How global software houses and consulting firms work together in the enterprise systems sector

Despite the relatively long history of strategic alliances in the enterprise systems sector, studies examining the relationships between software houses and consulting firms have been rare and fragmented, particularly those related to the mechanisms that promote interest alignment for delivering a joint value proposition to the market. Through the cross‐analysis of two case studies, we identify 10 mechanisms that are regularly used for interest alignment purposes as well as counterpoints that contribute to the literature regarding the search for a consistent explanation for the longevity of hybrid organizational forms. Additionally, the study provides some insights related to the impact of innovation massification on competitiveness, partners' interdependence, and the presence of complementary contracts along with insights into the coexistence and interaction of other mechanisms that may help to explain the persistent existence of hybrid organizational forms in markets. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.     

Political risk and the internationalization of firms: An empirical study of Canadian‐based export and FDI firms

Political risk analysis primarily receives attention for foreign direct investment (FDI) but only rarely for exporting. We examine how exporters and foreign direct investors evaluate the relative importance of political risk factors. We provide a rationale for exporters to evaluate political risk factors for FDI and for foreign direct investors to evaluate political risk factors for exporting. Survey data were collected from Canadian exporters and foreign direct investors and capture the distinctive nature of salient factors for exporting and FDI. We offer unique insights on the evolutionary character of political risk that are of practical value for both exporting and FDI. Copyright © 2007 ASAC. Published by John Wiley & Sons, Ltd.     

Presuccession Performance,CEO Succession,Top Management Team,and Change in a Firm's Internationalization: The Moderating Effect of CEO/Chairperson Dissimilarity

Extending the literature on CEO succession, we found that a succession event together with a change in top management related positively to strategic change toward greater internationalization. In a study of 160 Taiwanese firms, we found relationships between firm performance, outside CEO appointment, change in firm's top management team (TMT), and the degree of a firm's internationalization. Moreover, the positive association between a post succession TMT structural change and degree of internationalization was observed only in those cases where dissimilarity between CEO and chairperson (with respect to educational degree and overseas education) was low. The implications of these findings for scholarship and practice are discussed. Copyright © 2011 ASAC. Published by John Wiley & Sons, Ltd.     

Examining Reactions to Workplace Diversity: The Role of Dissimilarity–Attraction in Teams

This paper examines existing theory for understanding diversity in teams and offers propositions consistent with a unique dissimilarity–attraction framework. Prior relational demography research is examined and collective findings are used to purport this new direction for the field. Given current organizational and societal norms that emphasize a shift to a more proactive approach to diversity and inclusion, dissimilarity itself is suggested to signal positive cues for social identification and initial attraction among team members. The analyses may offer new approaches for framing hypotheses in relational demography research. Practical implications for management hinge on the notion that an understanding of these processes can have real and substantial impacts on team dynamics and associated competitive advantage. Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd.     

‘The Impact of Corporate Ethical Values and Enforcement of Ethical Codes on the Perceived Importance of Ethics in Business: A Comparison of U.S. and Spanish Managers’

This two country study examines the effect of corporate ethical values and enforcement of a code of ethics on perceptions of the role of ethics in the overall success of the firm. Additionally, the impact of organizational commitment and of individual variables such as ethical idealism and relativism was examined. The rationale for examining the perceived importance of the role of ethics in this manner is to determine the extent to which the organization itself can influence employee perceptions regarding ethics and social responsibility. Results indicate that all of the variables tested, except relativism, impacted upon one’s perceptions of the importance of ethics and social responsibility. Perceptions of the importance of ethics and social responsibility also varied depending upon country of residence with the U.S. sample having somewhat higher perceptions concerning the importance of ethics and social responsibility than their counterparts in Spain. Furthermore, when comparing the two samples, the U.S. sample had significantly higher corporate ethical values, greater enforcement of ethical codes, less organizational commitment and both lower idealism and relativism.     

The Direct and Indirect Effects of Self‐Efficacy on Salespeople's Emotional Exhaustion and Work‐Family Conflict: A Study Using the Job Demands‐Resources Model

This study integrates Social Cognitive Theory with the Job Demands‐Resources Model to examine self‐efficacy in relation to emotional exhaustion and work‐family conflict (WFC) in a sample of 192 employees. The results obtained through structural equation analysis show: a negative association between self‐efficacy and both work overload and emotional exhaustion; a positive relationship between work overload and both emotional exhaustion and WFC; that work overload mediates the relation between self‐efficacy and both emotional exhaustion and WFC; that role ambiguity moderates the relation of self‐efficacy with work overload; and that tenure in the sales territory moderates the relation of work overload with WFC. Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd.