The role of wasta in repatriates’ perceptions of a breach to the psychological contract: a Saudi Arabian case study

This study examines the influence of a national cultural dimension, specifically a strong orientation towards collectivism/reliance on network relationships, referred to as ‘wasta’, on the way in which psychological contracts form and change in a Saudi organisation. Specifically, it focuses upon how the psychological contract is perceived to have been breached by repatriates because of the role that wasta plays in shaping formal and informal HR practices pre- and post-assignment. The analysis demonstrates that prior to international assignment, wasta was taken for granted and only implicitly acknowledged as influencing selection criteria for assignments and individuals’ expectations and obligations associated with their psychological contract. Once repatriated, wasta was foregrounded and perceived as highly problematic in terms of career advancement. This shaped repatriates’ perceptions that their psychological contract had been breached, influencing their intentions to leave. These findings suggest that the psychological contract can be viewed as highly context-specific, as well as a person-centred phenomenon. We consider the implications of our research in terms of the influence of national cultural characteristics on individual’s perceptions of breaches to the psychological contract and highlight the possible implications generally for Saudi Arabia, which is aiming to be less reliant on foreign labour.     

Employees' perceptions of HR investment and their efforts to remain internally employable: testing the exchange-based mechanisms of the ‘new psychological contract’

This study investigates the relationship between perceived investment in employee development (PIED) and the internal employability efforts that such perceptions are assumed to influence under the terms of the ‘new psychological contract’. A cross-sectional survey among 238 employees in a Norwegian IT and management consulting firm provides support that PIED relates positively to employees' openness to develop themselves and adapt to changing work requirements (‘internal employability orientation’) and their active pursuit of new competencies and career trajectories within the organization (‘internal employability activities’). However, our findings challenge widely held claims that investment in employee development elicits these responses by way of the reciprocal mechanisms of a social exchange relationship. While PIED is found to relate positively to employees' perceptions of a social exchange relationship with their organization, these positive exchange experiences are not supported to influence internal employability outcomes. Our findings do support, however, that PIED relates negatively to perceived economic exchange relationships that in turn undermine internal employability orientations. Suggestions for future research and implications for practice are discussed.     

The effect of unethical behavior on trust in a buyer–supplier relationship: The mediating role of psychological contract violation

Research on trust in buyer–supplier relationships has tended to focus on the performance outcomes of a trusting relationship, as well as the processes that serve to build trust. Largely absent from the buyer–supplier literature is an in-depth examination of activities that break down trust, and the resulting effect on supplier trust in the buyer. The authors propose and test a model that evaluates psychological contract violations between a buyer and a supplier as a mediating variable of the effect of unethical activities on trust within a partnership. Survey data was collected from 110 tier one suppliers of major corporations in the state of Ohio. Our results show how a supplier's perception of a violation of the psychological contract either partially mediates or fully mediates the relationship between the buyers unethical activity and the suppliers trust in that buyer. We discuss how suppliers may demonstrate bounded ethicality when they overlook perceived unethical behaviors by the buyer.     

Does organizational culture play a role in the development of psychological distress?

The aim of this article is to analyze the extent to which organizational culture contributes to the symptoms of psychological distress in the workforce. Integrating organizational culture and work organization conditions makes it possible to examine how culture is associated with the various components of work organization conditions, and how these conditions might relate to symptoms of psychological distress in employees. Data from the SALVEO study were collected in 2009–2012 from a sample of 1824 individuals nested in 60 Canadian workplaces. Multilevel regression models were used to analyze the data. After controlling for individual and family characteristics, only group and rational cultures were associated with psychological distress, but both type of organization cultures were mediated by work organization conditions. Group culture is indirectly associated with lower levels of psychological distress since it favors lower levels of psychological demands and job insecurity. Rational culture is indirectly associated with higher levels of psychological distress because it favors higher psychological demand levels. The results obtained highlighted the importance of including variables relating to broader organizational context in models examining stress in the workplace.     

Are betting returns a useful measure of accuracy in (sports) forecasting?

In an economic context, forecasting models are judged in terms not only of accuracy, but also of profitability. The present paper analyses the counterintuitive relationship between accuracy and profitability in probabilistic (sports) forecasts in relation to betting markets. By making use of theoretical considerations, a simulation model, and real-world datasets from three different sports, we demonstrate the possibility of systematically or randomly generating positive betting returns in the absence of a superior model accuracy. The results have methodological implications for sports forecasting and other domains related to betting markets. Betting returns should not be treated as a valid measure of model accuracy, even though they can be regarded as an adequate measure of profitability. Hence, an improved predictive performance might be achieved by carefully considering the roles of both accuracy and profitability when designing models, or, more specifically, when assessing the in-sample fit of data and evaluating out-of-sample forecasting performances.     

Drawing from a bottomless well? Exploring the resilience of value-based psychological contracts in voluntary organizations

In an era of increased involvement by the third sector in the delivery of social services due to public sector outsourcing, this paper explores the resilience of employee psychological contracts in voluntary organizations in the context of their close relationship with state funding bodies. The results suggest that value-laden psychological contracts exhibit some resilience when state funding bodies interfere with the organizational mission of voluntary organizations. However, there are clear limits as to how far value-based aspects of the psychological contract compensate for unfulfilled obligations on the economic and socio-emotional dimensions caused by externally driven cost pressures. The paper suggests serious implications for HR practitioners and wider concerns relating to the quality of care delivered to the vulnerable.     

Best friend or broken tool? Exploring the co-existence of humans and artificial intelligence in the workplace ecosystem

Artificial intelligence (AI) has become an important topic in business literature and strategy talk. Yet, much of this literature is normative and conceptual in nature. How organizational members perceive AI and the job role changes that come with it is, so far, largely unknown territory for both HR scholars and practitioners. We sought to investigate the relationship between humans and AI and conducted an in-depth exploratory study into the co-existence of humans and two early-stage AI-solutions, one for “low-status” automation and another for “high-status”; augmentation. We suggest that different organizational groups may engage in distinctly different sensemaking processes regarding AI, an important insight for successful HRM strategies when AI is being introduced into the workplace. Moreover, contrary to recent conceptual work, our findings indicate that AI-enabled automation and augmentation solutions may not be detached from nor exist in tension with each other. They are deeply embedded in organizational processes and workflows for which people who co-exist with the technologies must take ownership. Our findings, in part, go against discussions on AI “taking over” jobs or deskilling humans. We describe a more nuanced version of reality fluctuating around the various ways different organizational groups encounter different AI-solutions in their daily work. Finally, our study warns against unconditional technological enthusiasm, managerial ignorance of the nature of work that employees undertake in different organizational groups, and a neglect of the time and effort required to successfully implement AI-solutions that affect not only the home organization but also members of the broader ecosystem.     

Do TFP and the relative price of investment share a common I(1) component?

Results from cointegration tests clearly suggest that TFP and the relative price of investment (RPI) are not cointegrated. Evidence on the alternative possibility that they may nonetheless contain a common I(1) component generating long-horizon co-variation between them crucially depends on the fact that (i) structural breaks are, or are not allowed for, and (ii) the precise nature and timing of such breaks. Not allowing for breaks, evidence points towards the presence of a common component inducing positive long-horizon covariation, which is compatible with the notion that the technology transforming consumption goods into investment goods is non-linear, and the RPI is also impacted upon by neutral shocks. Allowing for breaks, evidence suggests that long-horizon covariation is either nil or negative.Assuming, for illustrative purposes, that the two series contain a common component inducing negative long-horizon covariation, evidence based on structural VARs shows that this common shock (i) plays an important role in macroeconomic fluctuations, explaining sizeable fractions of the forecast error variance of main macro series, and (ii) generates ‘disinflationary booms’, characterized by transitory increases in hours, and decreases in inflation.     

Expense preference behavior and management “outsourcing”: a comparison of adopters and non-adopters of contract management in U.S. hospitals

Specialized managerial expertise, coupled with the threat of non-renewal should improve efficiency in firms that opt for contract management arrangements. To examine this we apply a generalized version of tests for expense preference behavior to U.S. hospitals in the 1990s. Extending prior literature, we create a quasi-experimental design for a comparison of adopters and non-adopters of contracts using propensity score methods. We generate the distribution of ‘expense preference’ parameters for all contract adopters in both the pre- and post-adoption states, and for a matched control group of non-adopters over the same period. Our results show that contract adoption leads to reduced expense preference behavior, but that this result depends critically on the input being examined.

What's the point of European Sectoral Social Dialogue? Effectiveness and polycontexturality in the hospital and metal sectors

Drawing on pragmatism and systems theory, this article analyses how participants in the European Sectoral Social Dialogue in the metal and hospital committees understand its effectiveness. We find that the participants have a broad understanding of effectiveness compared with the European Commission and existing research. Participants do not dismiss the importance of direct effects on working conditions in member states but downplay it in comparison with indirect effects from, and effectiveness in, European Sectoral Social Dialogue. That is, horizontal learning, knowledge sharing and pragmatic bottom-up work to reach consensus are emphasised as more prominent than top-down regulatory effectiveness.     

The evolving role of agricultural technology indicators and economic growth in rural poverty: has the ideas machine broken down?

The objective of the study is to examine the impact of technical progress in agriculture on changes in rural poverty in Pakistan by using annual data from 1975–2011. Data is analyzed by the set of sophisticated econometric techniques i.e., cointegration theory, Granger causality test and variance decomposition, etc. The results reveal that agricultural technology indicators act as an important driver to alleviate rural poverty in Pakistan. Granger causality test indicate that causality runs from technological indicators to rural poverty but not vice versa. However, agricultural irrigated land and industry value added, both does not Granger cause rural poverty, which holds neutrality hypothesis between the variables. Variance decomposition analysis shows that among all the technological indicators, agricultural machinery in form of tractors have exerts the largest contribution to changes in rural poverty in Pakistan. The study concludes that agricultural technology indicators are closely associated with economic growth and rural poverty in Pakistan. Technology in Pakistan has a low pace but still old technology continuously contributed towards poverty reduction. The question whether idea machine is broken down or not? Still need further exploration.     

Are cooperative firms a less competitive form of business? Production efficiency and financial viability of cooperative firms with tradable membership shares

Cooperative firms are generally considered a less competitive form of business than conventional capitalist firms in a market system. In this study, we consider cooperative firms that issue tradable membership shares and show that they are in principle as efficient and financially viable as capitalist firms. This implies that, if allowed to issue tradable membership shares, cooperative firms could be a promising alternative to capitalist firms in a wider range of circumstances.     

The mediating effect of psychological empowerment on the relationship between participative goal setting and team outcomes – a study in China

In the late twentieth century, it is popular to research the effect of participative goal setting. The general conclusion is that the relationship between participation and performance is inconsistent and unclear at individual level. With team becoming a more dominant mode in organizing, motivating, and managing, it is worthwhile to investigate the effect of participation in team goal setting. This study aims to test the mediating effect of psychological empowerment (PE) on the relationship between participative team goal setting and team identity and team performance. Executive MBA students (371) in 75 groups from China Europe International Business School in China participated in the study. The data from Business Strategy Game and questionnaire found positive relationship between participative team goal setting and team identification, and team performance is partially mediated by PE. Implications for the goal-setting theory and practice are discussed, and future research directions offered.     

Associations between perceived employability,employee well-being,and its contribution to organizational success: a matter of psychological contracts?

We investigated interactions between perceived employability and employees' perceptions about psychological contract obligations made by the employer in relation to life and job satisfaction, self-rated performance, and turnover intention. We hypothesized that perceived employability relates positively to job satisfaction, life satisfaction, and self-rated performance and negatively to turnover intention under the condition of many promises. Conversely, perceived employability relates negatively to job satisfaction, life satisfaction, and self-rated performance and positively to turnover intention under the condition of few promises. Analyses using a sample of 463 workers from seven Belgian organizations showed that perceived employability was positively related to all outcomes except job satisfaction. The number of promises was positively related to job and life satisfaction, and to self-rated performance, and negatively to turnover intention. Contradictory to our expectations, with the exception of turnover intention, the relationships between perceived employability and the outcomes were relatively stronger and positive under the condition of few promises compared with many promises.     

Why does formal mentoring matter? The mediating role of psychological safety and the moderating role of power distance orientation in the Chinese context

Formal mentoring programs continue to gain popularity within various organizations due to their positive impact on protégés' career successes. However, to date, relevant research has focused on the benefits of informal mentoring relationships. To narrow the literature gap, this study was conducted to examine whether, how and when the amount of formal mentoring provided by mentors influenced protégés' work attitudes. Based on 208 formal mentor–protégé dyads from the People's Republic of China, we found that the amount of formal mentoring provided by mentors related positively to protégés' affective commitment and related negatively to turnover intention. Furthermore, perceived psychological safety of protégés partially mediated the relationship between the amount of formal mentoring and affective commitment, whereas it completely mediated the relationship between the amount of formal mentoring and turnover intention. Finally, protégés' power distance orientation moderated the relationship between the amount of formal mentoring and perceived psychological safety. Additionally, implications for research and practice from our findings are discussed.     

Islands in the stream? The challenges and resilience of the Danish industrial relations model in a liberalising world

Nordic industrial relations models have often been highlighted as being successful ‘highroads’ in advanced capitalism. However, the economic crisis has increased pressures to liberalise and deregulate labour markets. Although this challenges the Danish industrial relations model, there are several countermeasures, in particular strong unions and the supportive institutional context, which have prevented erosion indicating the resilience and adaptability of the model.     

Are freelancers a breed apart? The role of protean and boundaryless career attitudes in employability and career success

Recent economic and organisational changes have fostered an increasing diversification of the workforce, among whom freelancers are an under‐represented population in the literature. This study aimed at examining the role of protean and boundaryless career, professional commitment, and employability activities in fostering freelancers' subjective career success. Data were collected via an online survey among a sample of 425 Italian freelancers and analysed through structural equation modelling. Results partially confirmed several hypotheses: higher self‐directed career management and boundaryless mindset predicted higher employability activities and professional commitment; moreover, employability and professional commitment acted as mediators between career attitudes and subjective career success. The study provides support for the importance of such variables to freelancers' career success, as well as for the significance of protean and boundaryless careers among nontraditional occupational groups. Interventions aimed at fostering such attitudes could support freelancers in improving their attainment of professional progress and perception of career success.     

Learn not to learn–a way of keeping budgets and deadlines in ERP projects?

This paper takes as its point of departure the conflict between the project as an organisational form for time-limited task execution and the project as an organisational form for triggering knowledge development and learning. The aim of the paper is to explore how knowledge developed in ERP projects can be managed, as well as to identify potential influences on the management of knowledge developed in the project process. Qualitative data has been collected through interviews, document studies, and participant observations. The paper presents evidence that problems of keeping to budgets and timelines in ERP projects can depend on the fact that knowledge developed in the project process is also exploited in the project process. In order to bridge the conflict between the project as a time-limited form for task execution and an organisational form for knowledge development and learning, three tentative strategies for exploiting knowledge developed in the project process are suggested.