Employee-owned and capitalist firms: is performance linked to ownership?

This paper does a comparative analysis of the economic performance between employee-owned firms (EOFs) and conventional capitalist companies (non-employee-owned firms, NEOFs). EOFs show good economic performance if the different objectives that distinguish them from NEOFs are considered. These differences stem precisely from the different capital-ownership structures. Nevertheless, the results deteriorate if profitability and productiveness are analysed. The results for productivity differ from theoretical thought which considers that the main differences between these two types of structures should be explained by the double condition people have as both partners and workers in the EOF; this link between company and workers should translate into increased productiveness. The results of the analysis do not empirically demonstrate the positive effects that were expected with an EOF structure. There are, however, sufficient motives for extending the study to the compared analysis of other subjects that work under specific legal regulations and even to the compared analysis of other regulative forms that exist in other Member States of the European Union.     

Is transformational leadership always good for employee task performance? Examining curvilinear and moderated relationships

Transformational leadership, generally considered as a desirable leadership style, has positive effects on various performance outcomes of employees; however, its productivity has been called into question because of a relative neglect of its negative aspects. Addressing this gap, an attempt at rethinking the relationship between transformational leadership and employee performance is important. The paradoxical perspective indicates that conflicting positive and negative effects of transformational leadership can coexist, which provides possibility and rationality for thorough consideration of employees’ task performance influenced by transformational leaders. Integrating the principle of diminishing marginal utility and the “Too-Much-of-a-Good-Thing (TMGT)” effect, this research explores an inverted U-shaped relationship between transformational leadership and employee task performance. Furthermore, applying social cognitive theory, we assume an employee’s proactive personality moderates the curvilinear influence of transformational leadership on employees’ task performance. As expected, results from a study of data from 209 supervisor-subordinate relationships from China showed that the inverted U-shaped relationship between transformational leadership and employees’ task performance was moderated by employees’ proactive personality. Theoretical and practical implications are discussed.     

Is transformational leadership always good for employee task performance? Examining curvilinear and moderated relationships

Transformational leadership, generally considered as a desirable leadership style, has positive effects on various performance outcomes of employees; however, its productivity has been called into question because of a relative neglect of its negative aspects. Addressing this gap, an attempt at rethinking the relationship between transformational leadership and employee performance is important. The paradoxical perspective indicates that conflicting positive and negative effects of transformational leadership can coexist, which provides possibility and rationality for thorough consideration of employees’ task performance influenced by transformational leaders. Integrating the principle of diminishing marginal utility and the “Too-Much-ofa-Good-Thing (TMGT)” effect, this research explores an inverted U-shaped relationship between transformational leadership and employee task performance. Furthermore, applying social cognitive theory, we assume an employee’s proactive personality moderates the curvilinear influence of transformational leadership on employees’ task performance. As expected, results from a study of data from 209 supervisorsubordinate relationships from China showed that the inverted U-shaped relationship between transformational leadership and employees’ task performance was moderated by employees’ proactive personality. Theoretical and practical implications are discussed.     

TQM and performance: Is the relationship so obvious?

This study explores the relationship between total quality management (TQM) and firm performance taking TQM as an internally consistent system of practices. The study tests the link between the two variables using the universal approach, analyzes whether the most competitive firms are those adopting TQM, and tests for an isomorphic effect on other firms. The study uses a sample of Spanish firms that have received TQM prizes at the national or regional level between 1997 and 2003 and a control sample for comparison. The findings indicate that in the absence of any evidence to confirm the universal hypothesis, TQM pioneers experience performance gains, because of the early implementation of the system; however, late adopters do not experience similar results. Firms using a TQM system are not necessarily better than their counterparts are, before putting the system into action. The study uses panel data that takes into account the unobservable heterogeneity between individuals and the dynamics of firms' financial variables.     

Business performance and social media: Love or hate?

The social media space has become a common place for communication, networking, and content sharing. Many companies seek marketing and business opportunities via these platforms. However, the link between resources generated from these sites and business performance remains largely unexploited. Both managers and financial advisors can profit from the lessons learned in this study. We conceptualize four channels by which social media impacts financial, operational, and corporate social performance: social capital, customers’ revealed preferences, social marketing, and social corporate networking. An empirical test of our framework shows that ‘followers’ and ‘likes’ positively influence a firm's share value, but only after a critical mass of followers is attained. Our estimates suggest that Twitter is a more powerful tool to enhance business performance than Facebook.     

Up to standard?: Market positioning and performance of Hong Kong films, 1975–1997

The trade-off between conformity and differentiation that market entrants face has recently been enriched by a new sociological insight: differentiation is rewarded only within the confines of taken-for-granted market categories. Entrepreneurs, however, routinely engage in combining existing market categories. The present paper attempts to reconcile these seemingly different views by focusing on the role of market uncertainty. In particular, we predict that the propensity of entrants to blend multiple categories increases with market uncertainty. Upon considering the endogenous influence of uncertainty on market positioning, the positive returns obtained by entrants from combining multiple categories become apparent. Because differentiation inspires the positioning of entrants in the face of market uncertainty, the frequent adoption of the same combination by competitors dampens the performance returns derived from it. Our hypotheses find support from the analysis of a large sample of Hong Kong films during 1975–1997.     

Corporate social responsibility and employee volunteerism: What do the best companies do?

Employee volunteerism as a practice of corporate social responsibility aids corporations by strengthening employee satisfaction and retention internally and by strengthening corporate reputations and connections with stakeholders externally. Of particular interest are the specific practices and procedures used by companies to encourage and support volunteer activities of their employees. We reviewed publicly available documents of Fortune's 100 Best Companies to Work For ranking to gain insight into how these best companies practice employee volunteerism and whether they link employee volunteerism to their corporate social responsibility strategy. We propose a connection of the position and importance of employee volunteerism in the corporate practices of social responsibility. Our findings suggest that many highly regarded companies specifically link employee volunteerism to their corporate social responsibility strategy. These companies also utilize similar practices to encourage and support employee volunteerism. We highlight the practices that managers could consider to support their corporate social responsibility efforts and offer several suggestions for future consideration.     

What type of cooperation with suppliers and customers leads to superior performance?

This research evaluates cooperation with key suppliers and customers, correlating cooperation to financial performance. Four cooperative behaviors represent cooperation as a multidimensional concept and the research explores the effect of each of these different dimensions of cooperation on performance. Results show that not all cooperative behaviors have similar and positive impacts on performance. Flexibility has no significant effect while shared problem solving has a negative effect. The other two cooperative behaviors, information exchange and restraint in the use of power, have positive impacts on performance. Results also indicate that cooperation with customers affects mostly firm growth while cooperation with suppliers affects firm profitability. Based on a survey of 124 packaging manufacturers, the analysis uses CFA (Confirmatory Factor Analysis) to validate the measurement of constructs and multiple regressions to analyze the relationships between the cooperative behaviors and financial performance.     

Company support for employee volunteerism: Does size matter?

This article examines the relationship between company size and support for employee volunteering. Based on organizational ecology and organizational stages theory, the study hypothesizes that larger versus smaller companies demonstrate greater formalization and codification of their support for employee volunteering. Similarly, larger versus smaller companies use employee volunteering efforts more strategically; this finding is consistent with a need to justify decisions. These outcomes in turn impact the nature of volunteering and the organizations benefiting from such programs. Survey data from a size-stratified sample of 990 randomly selected Canadian businesses indicates that large companies support employee volunteerism in a more formalized and strategic manner than small companies. This behavior includes having formal policies and programs, as well as exercising greater influence over the causes which benefit from employee volunteering. Additionally, large companies are more likely to tie other forms of charitable support to employee volunteering. The article discusses how the more formalized approach of large companies may impact society.     

Ethical behavior perceptions in Russia: Do ethics-related programs and individual characteristics matter?

This paper aims to analyze how individual differences and ethics-related programs predict Russian business students and working adults' perception of personal business ethics. This research evaluates the business ethics perceptions based on surveys of 1,207 managers, employees, and business students in Russia. This study finds the significant correlations between individual differences (gender, age, education level, and management experience), ethics-related programs (business ethics courses taught in universities, ethics and diversity professional development training), and personal business ethics' perceptions of Russian business students and working adults. We also find that individual differences moderate the relationship between ethics-related programs and how the personal business ethics of Russian business students and working adults are perceived. These findings advance current literature by revealing that age moderates the relationship between ethics-related programs (formal ethic courses, ethics, and diversity trainings) and personal ethical behavior perceptions of working adults and business students in Russia. Our study found that gender had a significant positive moderating effect on relationship of organizational code of ethics, formal ethic courses, and diversity professional development with personal ethical behavior perceptions. The relation between personal ethical behavior perceptions and the presence of an organizational code of ethics was negative and marginally moderated by age and managerial experience. This study contributes to business ethics research by deepening the understanding of the impact of individual differences on the relationship between ethics-related programs and personal business ethics' perceptions.     

In the wake of a merger: The human trauma What happens to the individual?

Mergers—are they a business blessing or a curse? However viewed, they have affected and will continue to affect a good many lives, frequently in a drastic and permanent fashion. Is there something about mergers that offers unique challenges to those affected, or are those challenges the traditional ones? Are some individuals victimized by the impact of the event and its reverberations, or have they placed themselves in vulnerable situations through inattention to business realities that the merger simply revealed? These questions are developed and answered in the following correspondence; the persons and companies named are fictional. The correspondence begins with a letter from Thomas E. Ellis, director, training and development, Hoffman-Burkhart Specialties, to his brother, Frank T. Ellis.     

Rags to riches? Entrepreneurs' social classes,resourceful time allocation,and venture performance

Social classes shape entrepreneurial pursuits in that entrepreneurs from lower social class groups face more resource deficiencies compared to those from higher social class groups. In this study, we theorize that being resourceful with a particular resource—time—helps ventures run by lower-class entrepreneurs achieve better performance. However, we further argue that the extent to which entrepreneurs use time resourcefully is affected by the cognitive schemas stamped on them by their social class backgrounds. Our empirical analysis of 8663 Chinese private entrepreneurs between 2006 and 2010 lends robust support to these arguments. By revealing both material and cognitive constraints stemming from entrepreneurs' social classes, our study contributes to research on social classes and entrepreneurial resourcefulness and has important implications for understanding the persistence of inequality in entrepreneurship.     

Conform or rebel: when does keeping to the rules enhance firm performance?

This paper examines whether there are economic rewards to mimicking strategic actions of other firms. The strategic behaviour we study is the formation of technology collaborations with MNEs by Indian firms. We argue that conforming to the behaviour of other firms has differential performance effects across different classes of firms and suggest that the benefits of conformity accrue more to small than large firms. To test this, we measured each Indian firm's conformity to the average tendency of other similar firms to collaborate with an MNE and then regressed its performance on conformity. Results were consistent with our expectations that small firms gain more from conformity than do their larger counterparts. Copyright © 2009 ASAC. Published by John Wiley & Sons, Ltd.     

“Surfeiting,the appetite may sicken”: entrepreneurship and happiness

Do the presence and nature of entrepreneurship impact on national happiness, and are nations with happy citizens better for entrepreneurs to start new businesses? To provide tentative answers we survey the literature on entrepreneurship and subjective well-being and use various data sources to uncover the first evidence of the relationship between entrepreneurship and happiness at the country level. We find that opportunity-motivated entrepreneurship may contribute to a nation’s happiness but only to a certain point, at which the effects of happiness begin to decline. Moreover, our results suggest that a nation’s happiness affects early-stage opportunity-driven entrepreneurial activity.     

Option happiness and liquidity: Is the dynamics of the volatility smirk affected by relative option liquidity?

This study investigates the dynamic relationship between option happiness (the steepness of the volatility smirk) and relative index option liquidity. We find that, on a daily basis, option happiness is significantly dependent on the relative liquidity between option series with different moneyness. In particular, deterioration (improvement) in liquidity of an out‐of‐the‐money put option relative to a concurrent at‐the‐money call option would lead to higher (lower) option happiness. This relationship is robust to relative option liquidity measures based on bid–ask spreads, option price impacts, and option order book imbalances. The results also show a significant maturity effect in option happiness, consistent with the notion that options are “dying smiling.” © 2011 Wiley Periodicals, Inc. Jrl Fut Mark     

To agree or not to agree? A meta-analytical review of strategic consensus and organizational performance

The premise underlying most of the research on strategic consensus is that a higher degree of consensus has a positive impact on organizational performance. Empirical studies, however, have produced inconsistent results for the strength and direction of this relationship, as well as for the role of potential moderators. With this meta-analysis, we provide empirical support for a positive effect of strategic consensus on organizational performance, and offer evidence for the existence of several moderators of the aforementioned relationship, which we then discuss as fruitful avenues for future research. This study enhances our understanding of this important strategy process construct and benefits managerial practice by discussing means for improving the realization and implementation of strategies.     

Three Pathways to Case Selection in International Business: A Twenty–Year Review,Analysis and Synthesis

With its focus on locational context, International Business (IB) is a prime candidate for the application of Case Study (CS) methodology. Yet many IB scholars still have doubts about CSs, possibly because strategies for their selection and disclosure procedures may lack rigor. The purpose of this article is to document and discuss CS selection in IB research, make suggestions for improvement, and thus raise the standard and status of CS research.Using qualitative content analysis, this paper examines CS selection strategies in four IB journals (1995–2014), relating them to chosen theoretical purposes and logics employed. Our results indicate that 12% of the 333 investigated CS articles lacked a section on methodology, and 41% of papers reported no indication of how CSs were selected. Drawing insights from the dataset, we propose and distinguish between theory-driven and phenomenon-driven CS selection approaches. In light of our evidence, best-practice papers are identified and apportioned to coherent pathways connecting theoretical purpose, logic and CS selection strategies. In doing so, we address the link between case selection and theorizing in CSs and advocate greater methodological sophistication and transparency of CS selection reporting in IB research.     

Impact of market orientation on firm’s customer-based performance: the moderating role of employee orientation

ABSTRACT

In this paper, we examine the influence of employee orientation (EO) on converting constituent dimensions of market orientation (MO) into customer-based performance (CBP) and consider the robustness of these relationships in the context of firm age and size. Based on a sample of 410 mid-to-senior-level managers working in UK service industries, we find that all three dimensions of MO positively influence CBP. While highlighting the utility of employing a multidimensional approach to evaluate the customer-based outcome of MO implementation we highlight the nuanced role of EO in strengthening the MO–performance relationship and emphasise the crucial role employees play in implementing different strategic orientations in a perceivable way to customers.