TMT Potency and Strategic Decision‐Making in High Technology Firms

Confidence is necessary for effective top management team (TMT) functioning, however overconfidence or hubris has been associated with poor outcomes. Researchers have struggled to untangle questions of how much confidence is functional and whether there are different forms of confidence. Using data from a field study of 54 public high‐technology firms we provide a richer understanding of the complex influence of one type of confidence, TMT potency on strategic decision‐making. Specifically, using a field study of TMTs of 54 public high technology firms we find potency at least partially mediates the relationship between TMT experience and knowledge, TMT interaction process, and strategic decision speed. Post‐hoc analysis of high potency teams suggests that potency may be either functional – leading to high performance, or dysfunctional – resulting in low performance. Potency appears to be a multi‐faceted construct consisting of both level and domain boundedness. We offer propositions that begin to untangle the origins of functional versus dysfunctional potency or hubris.     

Environmental and Business Communities of Practice: Graduate Students Comparing Community‐Relevant Language

The theory of communities of practice has found much acceptance in the organizational and social sciences literature. Although applied frequently to assess or explain phenomena, it has seen little research to identify the presence of barriers between communities of practice, or even just differences between such entities. Using members of the environmental and business communities, the following study identifies different communities of practice based on their linguistic repertoire. It also shows that members of one community can identify the linguistic content of another community's linguistic repertoire, with attention to business and environmental management. The research not only offers credence to the theory of communities of practice based on their linguistic repertoire, but it also offers avenues for further research in the use of language as a means of identity and segregation in various forms of institutional contexts. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.     

Language‐Based Exclusion and Prosocial Behaviors in Organizations

Organizations can be seen as amalgams of languages that can serve as a source of divisive tensions among employees. In our conceptual model, we draw upon social identity and social exclusion research to propose that linguistic diversity increases the potential for language‐based exclusion in multilingual work settings. Language may cue listeners to ethnic or cultural stereotypes as well as negatively affect perceptions of speakers’ competence, leading listeners to exclude speakers of certain languages. We contend that when excluded, perception of oneself can be cast in an antagonistic relation to perceptions of others, with detrimental effects on prosocial behaviors. Perceptions of procedural unfairness, a weakened identity, and impaired mood serve to amplify the association between language‐based exclusion and prosocial behaviors. However, organizational factors such as positive diversity climate may mitigate experiences with language‐based exclusion. We outline an agenda for future research and discuss implications for human resource practice. © 2014 Wiley Periodicals, Inc.     

The Challenges of March and Simon’s Organizations: Introduction to the Special Issue

March and Simon pushed the study of organizations into the mainstream of academic writing about business. We outline central ideas discussed by the book and its pioneering role in studying cognitive processes underlying boundedly rational human beings. Through their representational approach, March and Simon defined and explicated key mechanisms of individual and organizational decision‐making. Organizations provided an empirically‐based understanding of human behavior and coordination, and set up core scientific criteria for creating the cumulative body of management and organization research. We summarize the papers presented in this special issue and point out contributions by Organizations that have been understated, forgotten or ignored in management studies.     

Iterative Project Processes Within Temporary Multi‐Organizations in Construction: The Self‐, Eco‐, Re‐Organizing Projects

Theory‐based studies claim that informal processes interfere with the formal mechanisms and structures of projects in the construction sector. These processes structure and transform multi‐organizations. This four‐year case study reveals empirical evidence about how processes effectively evolve over time and affect formal mechanisms and structures. The results show: (1) the significant differences between what is planned and what actually unfolds in project processes; (2) how iterative processes overshadow linear ones; (3) how informality and “iterativity” eventually end up as self‐, eco‐, and re‐organizing projects and organizations, confirming that projects (re)create the very processes and structures that initiate them.     

Responses to Discrimination: Relationships Between Social Support Seeking,Core Self‐Evaluations,and Withdrawal Behaviors

Drawing from the theory of conservation of resources (Hobfoll, 1989), we examined relationships between social support seeking as a response to perceived discrimination from supervisors, core self‐evaluations, and withdrawal behaviors. We further studied how the relationship between social support seeking and withdrawal behaviors was moderated by core self‐evaluations. With two different samples, we found, as expected, that social support seeking in response to discrimination from supervisors is positively related to employee withdrawal behaviors, and core self‐evaluations is negatively related to withdrawal behaviors. Across the two samples, we also found evidence that the relationship between social support seeking and withdrawal behaviors was weaker when core self‐evaluations were high compared to low. We discuss implications of our results in the context of past research. © 2014 Wiley Periodicals, Inc.     

Socio‐Emotional Wealth Separation and Decision‐Making Quality in Family Firm TMTs: The Moderating Role of Psychological Safety

Socio‐emotional wealth (SEW), defined as the firm's non‐financial aspects meeting the family's affective needs, has become the dominant paradigm in family firm research. Recent debate acknowledges potential SEW heterogeneity within family firms. This study considers the effect of polarizing opinions on SEW preservation among TMT members as a source of separation in the TMT. More concretely, we study the effect of SEW separation on TMT decision‐making quality, while taking into consideration behavioural integration as a team process and psychological safety as a team context. Based on a unique multiple respondent sample of 300 managers from 55 Belgian private family firms, we find that behavioural integration mediates the negative effect of SEW separation on TMT decision‐making quality. In addition, we find that the negative effect of SEW separation on behavioural integration is mitigated by psychological safety and even turns into a positive effect at high levels of psychological safety.     

Environmental Policy in the Nordic Wood Product Industry: Insights Into Firms’ Strategies and Communication

The purpose of our study is to explore how companies operating in the Nordic wood products value chains currently use environmental performance measures in their environmental policy and communication with stakeholders. Apart from the regularly‐used environmental management certificates, the ability of wood material to store carbon and the use of sustainable forest management certificates open up interesting strategic options for firms in the implementation of their environmental policy. The primary was collected through thematic managerial interviews in 2011 from 37 companies in Finland, Sweden and Norway, of varying size, roles in the value chain, conditions for green business practices and exports. Forest certification and environmental management systems were frequently used, but managers did not always perceive them to be useful, particularly for raising environmental awareness at the final consumer level. Nevertheless, the general attitude towards using environmental performance measures was seen as positive. Companies with a business‐to‐business orientation were the most proactive in terms of environmental communication, whereas companies in consumer markets were more reactive. The key stakeholders targeted for environmental communication were value chain partners and the authorities, and only to a lesser degree employees and environmental non‐governmental organisations. The key strategic role of environmental management and communication appeared to be securing the firms against negative environmental claims. The Nordic wood industry could improve their communication if the strategic orientation is shifted from the forest certification to the use of generic eco‐labels, and most of all, to the adoption of quantitative measures like carbon footprints and environmental product declarations. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment.     

Pay‐Level Satisfaction and Employee Outcomes: The Moderating Effect of Employee‐Involvement Climate

The present study examined employee‐involvement climate (i.e., information‐sharing and decision‐making climate) as a moderator of the relationship between pay‐level satisfaction and employee outcomes (i.e., job satisfaction, affective commitment, and turnover intention). Survey data were collected from 22,662 Belgian employees, representing 134 organizations. The hypotheses derived from distributive justice theory and from research on the meaning of pay received partial support. Multilevel analyses revealed that a decision‐making climate buffered the negative effects of low pay‐level satisfaction, and that an information‐sharing climate exacerbated the negative effects of low pay‐level satisfaction. Theoretical and practical implications of this differential moderating effect are discussed.     

Sustainability in The Banking Industry: A Strategic Multi‐Criterion Analysis

The current paper aims to develop an effective and integrated MCDM model for the evaluation of the sustainability practices in the banking services, employing a multi‐stage, fuzzy MCDM model that integrates the Balanced Scorecard, fuzzy AHP and fuzzy TOPSIS. The approach aims to evaluate sustainability from the following four perspectives: financial stability, customer relationship management, internal business process and environment‐friendly management system. A real implementation dealing with the six largest commercial banks in India is discussed. The results highlights the critical aspects of the evaluation criteria and the issues in improving sustainable banking performances. Regarding the sustainability issues, it is shown that the environment‐friendly management system takes a back seat compared with the other criteria. Furthermore, the results show that there is a misunderstanding of the role that corporate social responsibility plays with respect to environmental issues. The developed evaluation model offers a valuable management tool for banks' administrators by assisting them in strategic choices in order to achieve their objective of sustainability and sustainable banking. Moreover, it offers a measuring tool with unique features that complements the emerging trend of integrated reporting considering uncertainty. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

Imagination,Self‐Knowledge,and Poise: Jim March’s Lessons for Leadership

James G. March was a founding father of modern organization theory, and arguably its most eclectic scholar. His elegant writings, which were underpinned by a behavioural view of organizations, spanned ambiguity and choice, rationality and decision‐making, organizational change, organizational learning, and institutional theory, among others. In this editorial, we remember Jim March by reflecting on his lessons for leadership. It is structured into three parts, each portraying a key aspect of contemporary leadership: imagination, self‐knowledge, and poise. March believed that these qualities were essential to leadership, and he embodied them to the fullest.     

The Role of Sustainability‐Related Strategies on the Biofuel Industry: Trends,Prospects and Challenges

The aim of this study is to elucidate the sustainability‐related strategies on the biofuel industry. Our empirical analysis is based on a time series data set covering diesel demand in Greece over the period 1978–2014 and on the basis of these estimates we make forecasts for biodiesel consumption in the coming years (2015–2030) under three alternative scenarios. Our approach utilizes unit root testing to investigate possible co‐integrated relationships among the sample variables. The empirical findings indicate that diesel demand is income and price inelastic in both the long and the short run, while biodiesel demand seems to have an upward trend over the simulated period. We argue that the importance of biofuel in the Greek energy balance will change the form of the existing business strategies towards issues such as sustainability, green entrepreneurship and corporate social responsibility to achieve the environmental goals set by the EU Energy Roadmap 2050. Copyright © 2018 John Wiley & Sons, Ltd and ERP Environment     

High‐performance organizing,environmental management,and organizational performance: An evolutionary economics perspective

This study applies evolutionary economics reasoning to the green HRM context and examines whether and how environmental management routinization relates to organizational performance. In doing so, we introduce the concept of ecological routines, defined as deeply embedded, firm‐specific rules and procedures associated with organizing and practicing corporate environmental management that do not change very much from one iteration, period, or functional unit to another. We examine the extent to which ecological routines that encompass organizing (high‐performance organizing [HPO]) and practice routines of environmental sustainability relate to green decisions, green behaviors, and organizational performance. In a sample of 229 managers from 33 organizations in the environment‐sensitive industries of the United States, we find support for multilevel mediation of green decisions and green behaviors as well as interaction of HPO and environmental management practice routines. Implications for research and practice are discussed.     

Making the ‘Invisible’ Visible: Redevelopment‐induced Displacement of Migrants in Shenzhen,China

Gentrification in China is intertwined with urban redevelopment, which causes the large‐scale displacement of rural–urban migrants from ‘villages in the city’ (ViCs). Because of the informality of ViCs, migrant renters have very insecure tenancy and during redevelopment they are treated as a negligible (‘invisible’) social group. As they are very difficult to locate after displacement, they are also literally invisible to researchers. To make the invisible visible, this study traced a sample of displaced migrants from Huangbeiling village in Shenzhen. The focus was on the displacement process and on identifying the consequences for the displaced. We found various forms of displacement during the redevelopment process. Nearby ViCs were prioritized by displaced migrants to minimize as much utility loss as possible. However, they generally suffer from decreased proximity, increased living costs, and the loss of social networks and job opportunities. Remarkably, some choose to return to the gentrifying village, enduring displacement in situ caused by increasing rents, drastic physical neighbourhood changes and declining liveability, in exchange for retaining their original social and economic networks. Large‐scale urban redevelopment is causing the rapid shrinkage of informal housing. Recognizing and addressing the housing needs of this impoverished social group is a matter of urgency.     

Leadership,Creative Problem‐Solving Capacity,and Creative Performance: The Importance of Knowledge Sharing

This article presents two studies that examine whether leader supportive behaviors facilitate knowledge sharing and employee creative problem‐solving capacity, thereby enhancing creative performance. The findings from both studies indicate that leader supportive behaviors are directly and indirectly related, through both internal and external knowledge sharing, to employee creative problem‐solving capacity. In addition, creative problem solving was related to the two dimensions of creative performance—fluency and originality. However, a test of the mediation model indicated that creative problem solving only mediated the relationship between internal knowledge sharing creative performance and originality. These findings highlight the complex process by which leaders facilitate both internal and external knowledge sharing and employee creative problem‐solving capacity, thereby improving employee creative performance.     

Analysing Place and Place‐making: Urbanization in Suburban Oslo

Despite developments within planning theory challenging the ideal of the rational master plan it may be argued that there is still use for the production of knowledge through analysis in planning. However, the cultural complexity of today's planning contexts, and a move towards governance and entrepreneurial policies, makes it difficult to make places, to achieve social welfare and sustainability. Traditionally, the analysis of places has been done by architects and planners focusing on physical form, having an essentialist perspective of place resembling the theory of genius loci. In Norway, the planning authorities refined this methodology in the 1990s. This approach is, however, not in tune with a progressive view of places as multiple and dynamic social constructions, and may be accused of ‘symbolic violence’. If one is to take this view seriously and still be able to make plans, planning must also be based on other types of knowledge. In this article I argue for a socio‐cultural approach to reveal social representations and practices that make a place. I use the case of place‐making in Sandvika, a suburban ‘minicity’ outside Oslo, as an example of how a constructivist understanding differs from and may supplement an essentialist approach.