Market Entry,Capacity Choice,and Product Differentiation in Duopolistic Competition under Uncertainty

This paper examines the impact of pre‐emptive competition for a leader's position on the investment strategies for market entry, production capacities, and product differentiation. In the absence of pre‐emptive competition, the leader's production capacity exceeds the follower's, and the leader earns excess returns. In contrast, in its presence, the leader's production capacity decreases below the follower's, and the follower's investment value exceeds the leader's when the follower enters the market. These results suggest the new insight that pre‐emptive competition provides the opportunity for the follower to expedite investing and to enhance investment value by capitalizing on the leader's insufficient capacity. Copyright © 2013 John Wiley & Sons, Ltd.     

Team leader experience in improvement teams: A social networks perspective

In this research, we disentangle the relationship between several key aspects of a team leader's experience and the likelihood of improvement project success. Using the lens of socio-technical systems, we argue that the effect of team leader experience derives from the social system as well as the technical system. The aspects of team leader experience we examine include team leader social capital (a part of the social system) and team leader experience leading projects of the same type (a part of the technical system).We examine four different, yet related, dimensions of a team leader's social capital, which we motivate based on the social networks literature. One dimension, team leader familiarity, suggests that social capital is created when team leaders have experience working with current team members on prior improvement projects, and that such social capital increases the likelihood of improvement project success. We develop three additional dimensions, using social network analysis (SNA), to capture the idea that the improvement team leader's social capital extends beyond the current team to include everyone the leader has previously worked with on improvement projects. Contrasting our SNA-based dimensions with team leader familiarity enables us to better understand the impact of a team leader's social capital both inside and beyond the team. We also examine the effect of a team leader's experience leading prior projects of the same type, and consider the extent to which organizational experience may moderate the impact of both team leader social capital and same-type project experience.Based on analysis of archival data of six sigma projects spanning six years from a Fortune 500 consumer products manufacturer, we find that two of our SNA-based dimensions of team leader social capital, as well as experience leading projects of the same type, increase the likelihood of project success. In addition, we show that organizational experience moderates the relationship between team leader same-type project experience and project success. However, this is not the case for the relationship between the dimensions of team leader social capital and project success. These results provide insights regarding how dimensions of team leader experience and organizational experience collectively impact the operational performance of improvement teams.     

Implicit leadership in an intercultural context: theory extension and empirical investigation

Prior literature highlights that subordinates' identification with their leader is important for leader success. This study explores new mechanisms of implicit leadership and their effects on identification by subordinates. Using data from two sources – subordinates from five regional clusters and expatriate leaders – this study reveals that a leader's underfulfilment of subordinates' expectations of leadership harms their leader identification. Moreover, simple fulfilment of subordinates' expectations toward leadership does not affect their identification; to do so requires overfulfilment. Furthermore, the effects of underfulfilment strengthen with greater collectivism and low power distance, whereas overfulfilment effects are mitigated by these cultural dimensions.     

Cooperative Goals,Leader People and Productivity Values: Their Contribution to Top Management Teams in China*

abstract This study proposes that when top management team members are convinced that their leader is committed to people and productivity, they conclude that their leader is effective and contribute to making their organization innovative. Cooperative goals among top management team members may be credible evidence that their leader has people and production values. Executives from over 100 organizations in China completed measures of their cooperative, competitive, and independent goals, their leader's people and production values, and their leader's effectiveness. CEOs from these firms rated their organization's innovativeness. Structural equation analysis suggested that cooperative goals among top management teams convince them that their leader values people and production and that these values in turn result in leader effectiveness and organizational innovation. Results, coupled with previous research, were interpreted as suggesting that cooperative goals and leader people and production values are foundations for leader and top management team effectiveness in China.     

High‐performance work system implementation in small and medium enterprises: A knowledge‐creation perspective

While it is well established that high‐performance work systems (HPWSs) affect firm‐level outcomes within large, complex organizations, less is known about how they create benefits for firms within the small‐business sector. Using a knowledge‐creation perspective, this study examines the impact of HPWSs in small and medium enterprises and examines whether the impact observed depends on the small‐business leader's capacity to obtain additional HR knowledge from an external expert, as well as the leader's HR background and knowledge. Archival and survey data were obtained from 294 small‐business organizations, with survey responses obtained from both the small‐business leader and an HR consultant assigned to the small business. Findings suggest that leader perceptions of HR effectiveness are positively related to the use of HPWSs and that this relationship is moderated both by the communication patterns between the small‐business leader and the HR consultant assigned to the firm and the small‐business leader's HR knowledge. © 2012 Wiley Periodicals, Inc.     

How Creative Can Leaders Afford to be Without Losing Credibility?

Leaders know in their gut that creativity and innovation are the life blood of their organization. New ideas can lead to programs that are superior to an organization's established or planned programs. Leadership is to engage the right people, at the right times, to the right degree, in creative work. Inspirational leaders will promote employee creativity. On the other hand, the ability of leaders to be creative is an essential quality of leadership. Done well, the change of course looks like a moment of courage. The leader went to the precipice and had the strength to say, Let's turn back. Done badly, the change of course looks like pure opportunism or lack of conviction, and the leader's leadership credibility is undermined. The line between the two is thin. Which side a leader ends up on depends essentially on how the leader takes into account essential strategic factors, and how hard the leader will work to keep others on their side when they make the move.     

Sequential mergers under incomplete information

We study sequential mergers under incomplete information where the follower is ignorant about the leader's merger synergy. When the follower's own synergy is sufficiently large, incomplete information induces both firms to merge more. These additional mergers benefit both firms and total welfare but hurt consumers. If the follower's synergy is very small, the leader is unable to take any strategic action, and most results are reversed. The analysis suggests that incomplete information strengthens the strategic complementarity between the two mergers and thereby increases the likelihood of a merger wave.     

“Why did I do this?”: Understanding leadership behavior through a dynamic five‐factor model of leadership

Leadership theories referring to complex adaptive system theory (CAS) describe leadership as a dynamic process of interdependent, cooperating agents. However, research on leadership behavior focuses mainly on the leader as an influencing, active agent. This article offers a different perspective by focusing on factors that influence leadership behavior. A dynamic five‐factor model of leadership is introduced, which identifies (1) the leader's individual competence, (2) the group, (3) the organization, (4) the context, and (5) the immediate situation as all influencing factors on leadership behavior. To address the problem of the procedural nature of leadership behavior, the dynamic five‐factor model is combined with a scenario‐based approach. The scenario approach focuses on situational developments in a given context, whereby a previous situation influences a leader's behavior in the subsequent situation. By integrating the dynamic five‐factor model into a scenario approach, one can understand a leader's behavior in its procedural nature. The practical usability of the dynamic five‐factor model and the scenario approach was assessed in a leadership development program with 81 military officers. Structured feedback from participants indicated that the model and the approach were perceived as helpful and relevant for understanding leadership behavior.     

Leading in the chaos of the 21st century

In the transition from a Newtonian paradigm of control and equilibrium to one of chaos and disequilibrium, organizations have substantially changed their structures (e.g., moving to diverse project‐based teams, advancing knowledge management, and building innovative cultures), but they have only minimally changed their leadership styles and practices. This paper describes a model of leadership proposed by Ron Heifetz that optimizes the characteristics of the 21st century in which the leader's role is to disturb equilibrium, differentiate between technical and adaptive challenges, and engage the followers in solving the organization's problems. This model is contrasted with other leadership models to validate its usefulness in the face of chaos, ambiguity, and rapid change. The commitment of the leader to holding steady in the face of predictably strong resistance and the dangers to the leader in using this model are discussed.     

Followership in Leadership Studies: A Case of Leader–Follower Trade Approach

The current article acknowledges the absence of followership from the leadership literature for many years. Major theories of leadership are reviewed to assert that (1) modern leadership studies have been developed strictly from the leader's perspective with little or no attention on followership, (2) leadership studies have primarily been based on the static understanding of leadership (leaders always remain leaders),¹ and (3) there seems to be a need for a new paradigm for leader–follower relationships, which may result in organic relationships between leaders and followers through exchange of leadership and followership functions and roles. Thus, it is argued that the mutuality of relationships and influence between the follower and the leader exists. To address the need for a new paradigm for leadership, the leader–follower trade (LFT) approach is introduced, which may result in the nonstatic and organic approach to leadership–followership as two valuable human behavioral functions. In this case, leadership and followership functions and roles may be traded or exchanged by the positional leaders and followers in different situations or organizational settings toward mutual respect, empowerment, and effectiveness.     

LEADER STYLE IN STRATEGY AND ORGANIZATIONAL PERFORMANCE: AN INTEGRATIVE FRAMEWORK*

By means of reviewing existing literature about the role of leaders in determining organizational strategy, an integrative analytical framework is developed. the framework considers the leader to be key to both the formulation and implementation of strategy. It further identifies factors that moderate the leader's impact on strategy. Hypotheses are presented along with implications for future research regarding the role and impact of leadership.     

Existential–Experiential View of Self‐Sourced (In)Authentic Healthcare Identity

In the healthcare context, both nurses and doctors derive their professional identities from diverse backgrounds, thus resulting in two distinct professions. Becoming a leader and forming a leader identity that is separate from a strong professional identity is a difficult task. However, assuming a leader identity is considered an important aspect of actually being a leader, not just a professional with a leader position. The current article explores authenticity in generic healthcare leader identity formation by utilizing the concept of professional identity. Instead of committing to the humanistic ontological roots of the authentic leadership construct, the research analyzes the concepts of self and authenticity from an existential–experiential perspective. A conceptual framework of self‐sourced healthcare identity formation, including leader identity and professional identity, is presented. The framework shows how leader identity originates in the leader's experiencing self‐in‐situation, which is understood as the source of authenticity. The experiencing self, or the self as a subject, is differentiated from the experienced self, or the self as an object, by which professional identities are formed. The conceptualization provides a way of understanding and developing leadership in fields consisting of strong professional identities. The applications of the framework are also discussed.     

Gaining feedback acceptance: Leader-member attachment style and psychological safety

This conceptual article develops a model of how attachment style affects how leaders give feedback and members' react to it. Drawing on attachment theory, we propose that leaders whose trait attachment style is grounded in a desire for security are likely to deliver feedback that is constructive—that is, specific, frequent, timely, behavioral, and future-focused expressed in a way that establishes psychological safety. Leaders who have an anxious attachment style do not want to give members unfavorable feedback that may cause a negative reaction. Leaders who avoid attachment are likely to present little feedback or present unfavorable feedback in a manner that is not constructive—potentially blunt and ego-threatening. Our model also predicts that team members' trait attachment style influences their feedback acceptance mediated by their feelings of psychological safety, with secure attachment style members benefiting most from constructive feedback. Further, we consider how the match (or mismatch) in attachment style between the leader and member influences their reactions to each other as the leader offers feedback and the member reacts. This has implications for assessing the fit between the leader's and team member's attachment styles and designing HR interventions for more constructive feedback and positive reactions.     

The method of leader's overthrow in networks based on Shapley value

Quantitative methods for leaders' detection and overthrow are useful tools for decision-making in many real-life social networks. In the given research, we present algorithms that detect and overthrow the most influential node to the weaker leadership positions following the greedy method in terms of structural modifications. We employ the concept of Shapley value from the area of cooperative game theory to measure a node's leadership and to develop the leader's overthrow algorithms. Specifically, we introduce a quantitative approach to analyze prospective structural modifications in social networks to make the initially identified network leader less influential. The resulting mechanism is based on the symbiosis of game-theoretic and algorithmic concepts. It presents a useful tool for the technical analysis of the primary structural data in the initial steps of multifaceted quantitative network analysis where the raw data (i.e., linkages) is frequently the only knowledge about interrelations in social networks.     

Optimal response to a next generation new product introduction: to imitate or to leapfrog?

In this paper, we study the choice of technology levels and timing of the introduction of new technologies in a market in which customer sophistication increases over time. Faced with the introduction of a new generation product, a firm can either imitate or leapfrog it. If the new product is introduced optimally, we show that the optimal response is to imitate it. This is because the technology leader's best strategy is to set a technology level that makes imitation the best response. We also derive decision rules for the timing of introduction of new technologies. Copyright © 2005 John Wiley & Sons, Ltd.     

Leadership conceptual ambiguities

The authors propose a postmodern critique of modernist leadership traits research and offer a robust theoretical and methodological alternative to overcome the ambiguous conceptual use of transformational and charismatic leadership traits. A content analysis of leadership studies from 1999 to 2008 in peer‐reviewed journals and management texts was conducted to identify those salient characteristics often associated with leadership traits. Given the evasive nature of the researched phenomenon and the lack of typical quantitative rigor, our quasi‐meta‐analysis revealed 10 distinctive intrapersonal and interpersonal referents or social perceptions used by researchers when describing leadership traits and the effects of those traits on workers in general. Based on the 10 organizational and social icons deduced from the content analysis, the authors offered a postmodern leadership evaluation matrix as a substitute performance metric in an organizational setting, thus eliminating modernist conceptual ambiguities tied to the leader–worker dyadic in varying organizational contexts. The findings suggest that leadership researchers should consider complex behavioral decision‐making processes that result in emergent group performances instead of focusing on a leader's ephemeral behavioral traits.     

Eric Voegelin,Reflexive Distance,and Harnessing the Benefits of Metaxy: The Leader's Imperative to Participate in History and Becoming

The capacity to lead consciously is connected to the leader's knowledge of the self and one's environment. Eric Voegelin stipulated that gaining reflexive distance through comparative historical knowledge allowed for a deeper understanding of an individual's place in society. Citing his works, the current article explains the utility to leaders in understanding historiography, confronting narratives of the past, and criticizing previous normative structures. Leaders come to understand their place in the process of “becoming” by confronting the past. Harnessing the capacity to reflect, leaders can use history as a mirror to demand more of themselves and followers. Moreover, as leaders come to comprehend symbols of mankind's attempt to make sense of the universe and to establish some degree of order, disruptions to the “order” can paradoxically manifest growth. Conscious leaders thus become adaptive rather than reactive.     

Multirater and Gender Differences in the Measurement of Political Skill in Organizations

Organizational political skill is an essential component of a leader's success. The purpose of the current study was to ascertain whether differences existed in how individuals rated themselves and were rated by others on 13 political skills using the Brandon Partners and Seldman Learning Organizational Savvy Multi‐Rater Assessment. Over 4,500 individuals completed an online self‐rater assessment to test the reliability and validity of the instrument. A sample of 131 individuals with 1,056 observer ratings completed an online multirater assessment to address the research questions. The dependent variables were the 13 political skill set average scores and the independent variables included gender and rater group. Significant rater group differences in multirater assessment of political acumen were found in all skill sets. The greatest difference was between the self‐ratings, always the lowest, and the ratings of the four rater groups. No significant gender differences in self‐assessment of organizational political skill were found in the 13 skill sets. Significant gender differences in ratings by others were found with females scoring higher than males in two areas. The findings contribute to our understanding of gender differences regarding the perception of political skill. Organizations can use this knowledge in educational programs to elevate leader performance.     

What happens to CEO compensation following turnover and succession?

When boards hire CEOs, the board and successor CEO have an opportunity to redesign the predecessor's compensation contract. The CEO's relative bargaining power will influence the outcome of compensation negotiations. Analyzing 508 successions, we find that total compensation of successor CEOs increases by 69% over their predecessor, but the structure of successor compensation is heavily influenced by the predecessors’ contracts. When the board's bargaining power is large, successors have a greater proportion of pay-at-risk and smaller proportion of salary. When the CEO's bargaining power is large, there is a smaller proportion of pay-at-risk and relatively greater proportion of salary.