Workforce diversity in manufacturing companies and organizational performance: the role of status-relatedness and internal processes

This study investigates workforce diversity at the organization level, which has been relatively overlooked. We focus on status-related processes that complement the ambiguities involving social categorization and information processing perspectives. We further identify the theoretically meaningful mediators (i.e. innovative climate, employee competence and employee satisfaction) of the diversity–performance relationship at the organization level. We empirically validate our hypothesis using time-lagged, multi-source data collected from 256 Korean manufacturing companies at 2 time points over a 2-year period. Results indicate that hierarchical position diversity is negatively related to employee competence and satisfaction, which in turn negatively affects operational performance. Education diversity positively affects innovative climate, employee competence and employee satisfaction, thus increasing the innovation and operational efficiency of an organization. This study elaborates the distinct implications of diversity dimensions with different levels of status-relatedness, and offers empirical contributions that highlight the mediating mechanisms through which diversity enhances different forms of organizational performance.     

The impact of racial and gender diversity in management on financial performance: how participative strategy making features can unleash a diversity advantage

How does racial and gender diversity in the management ranks affect the bottom line? Our findings indicate that participative strategy making (PSM) positively moderates the relationship between both racial and gender diversity in management and firm performance measured as return on assets. Specifically, PSM strengthens the positive relationship that exists between racial diversity in management and firm performance. Although no main effect is observed for gender diversity in management, our results reveal that gender diversity in management is positively related to performance when PSM is high. However, we find that gender diversity in management is negatively related to performance when PSM is low, while gender homogeneous management experience superior performance. We offer implications for diversity research to embrace and consider the role of PSM and ‘inclusiveness’.     

Gender diversity and firm performance: evidence from Dutch and Danish boardrooms

Drawing on the business case for gender diversity, this article examines whether board gender diversity has a positive effect on firm performance, based on evidence from the Netherlands and Denmark. We use empirical data on 186 listed firms observed in 2007. Almost 40% have at least one woman in the boardroom. Within boards, the average share of women is only 5.4%. To investigate the impact of board gender diversity, two-stage least-squares estimation is applied, using Tobin’s Q as a measure of performance. Our findings indicate that on the basis of this data-set, there is no relation between board diversity and firm performance.     

Board gender diversity and environmental performance: An industries perspective

This study investigates whether gender diversity on the board of directors in the United States is associated with firms' environmental performance. Under the theoretical framework of resource dependence theory, we argue that gender diversity brings a greater variety of skills to the board. Diversity allows for a healthy mix of knowledge and experience to improve the decision‐making process of the board. Using propensity score matching and controlling for endogeneity, this study uses a more rigorous statistical model than previous work. It also uses content analysis of directors' biographies to provide evidence of the role that gender diversity plays. We find gender diversity is positively associated with firms' environmental performance scores primarily in the more environmentally impacting industries. Therefore, our research provides valuable direction for those firms working to improve both their boards' gender diversity and their environmental performance. Our findings also offer insight into the mixed results of previous studies.     

The impact of diversity and equality management on firm performance: Beyond high performance work systems

This article demonstrates that a diversity and equality management system (DEMS) contributes to firm performance beyond the effects of a traditional high‐performance work system (HPWS), which consists of bundles of work practices and policies used extensively in high‐performing firms. A DEMS typically includes diversity training and monitoring recruitment, pay, and promotion across minority or other disadvantaged groups. Our analysis of quantitative data from service and manufacturing organizations in Ireland confirms that HPWS practices are associated with positive business performance and finds specifically that DEMS practices are positively associated with higher labor productivity and workforce innovation and lower voluntary employee turnover. © 2010 Wiley Periodicals, Inc.     

The performance of international returnee ventures: the role of networking capability and the usefulness of international business knowledge

This paper sheds light on the international new ventures led by returnee entrepreneurs and investigates the influence of networking capability and the usefulness of international knowledge for the overall performance of so-called international returnee ventures (IRVs). By integrating network theory with a capability view of firm performance, it advances six hypotheses that form a structural model, which is tested with LISREL on a sample of 194 IRVs from China. The findings show that international networking capability has a positive influence on the provision of international business knowledge, which in turn is positively related to the innovation performance, but they have a negative impact on the financial performance. Hence, this study presents a discussion of the usefulness of knowledge gained from the international network relationships of emerging market returnee entrepreneurs.     

National diversity and team performance: the moderating role of interactional justice climate

In this team-level study, we present and test a model in which two aspects of interactional justice climate, its level and its strength, interact to moderate the effects of national diversity on team performance. Connecting the literatures on team diversity and (interactional) justice climate, we hypothesize that a high level of interactional justice exhibited by the line manager promotes the performance of nationally diverse teams, but only when team members share this perception (i.e. when the climate is strong). Using time-lagged performance measurement, we conducted a multisource field study using data from 272 employees clustered in 45 teams who worked for a local subsidiary of a multinational enterprise. The findings confirm our hypothesis and have implications for the diversity and justice literatures, while advancing knowledge that promotes the effective management of increasingly diverse workforces in this era of globalization.     

Training and business performance: the Spanish case

This paper examines the relationship between training policies and business performance. Our research seeks to enlarge the empirical bibliography about the impact training has on firms and tries to challenge the criticism previous works with similar characteristics received. With this purpose in mind, we have used a theoretical model based on the hypothesis of a ‘cascade-type relationship’ between four types of organizational performance. The results obtained from a sample of Spanish firms show that training policy (based on the human capital theory and the resource-based theory) has a significant impact on firm performance.     

Employee ownership and firm performance: a meta‐analysis

Employee ownership has been an area of significant practitioner and academic interest for the past four decades. Yet, empirical results on the relationship between employee ownership and firm performance remain mixed. To aggregate findings and provide potential direction for future theoretical development, we conducted a meta‐analysis of 102 samples representing 56,984 firms. Employee ownership has a small, but positive and statistically significant relation to firm performance ( = 0.04). The effect is generally positive for studies with different sampling designs (samples assessing change in performance pre‐employee–post‐employee ownership adoption or samples on firms with employee ownership), different performance operationalisation (efficiency or growth) and firm type (publicly held or privately held). Suggesting benefits of employee ownership in a variety of contexts, we found no differences in effects on performance in publicly held versus privately held firms, stock or stock option‐based ownership plans or differences in effects across different firm sizes (i.e. number of employees). We do find that the effect of employee ownership on performance has increased in studies over time and that studies with samples from outside the USA report stronger effects than those within. We also find little to no evidence of publication bias.     

Employee stock ownership and financial performance in European countries: The moderating effects of uncertainty avoidance and social trust

This study investigates how the effect of employee stock ownership on financial performance may hinge on the diverse cultural and societal contexts of European countries. Based on agency and national culture theories, we hypothesize that the positive relationship between employee stock ownership and return on assets (ROA) is stronger in those nations with lower uncertainty avoidance and higher social trust. Using a multisource, time‐lagged, large‐scale dataset of 1,741 firms from 21 countries in Europe, our multilevel, random coefficient modeling analysis found evidence for these hypotheses, suggesting that uncertainty avoidance and social trust serve as important contextual cues in predicting the linkage between employee stock ownership and financial performance. Our supplemental analysis with distinction between the managerial and nonmanagerial employee stock ownership further indicates managerial employee stock ownership has a direct positive effect on ROA. Although nonmanagerial employee stock ownership had a nonsignificant association with ROA, the relationship was positive and significant when uncertainty avoidance was low and social trust was high. This research contributes to the existing literature by illuminating some of the contextual influences altering the effectiveness of employee stock ownership. Our findings also offer practical suggestions for effectively using employee stock ownership.     

The influence of cultural context on the relationship between gender diversity and team performance: a meta-analysis

The impact of gender diversity on team performance has become a central topic in the field of human resource management for researchers and practitioners alike. Extant research provides conflicting evidence on the relationship between gender diversity and team performance. To resolve these contradictory findings, we meta-analyze the relationship between gender diversity and two performance outcomes, namely task performance and contextual performance. Grounded in categorization-elaboration model, we simultaneously consider the positive and negative aspects of gender diversity. We further examine the effect of cultural context as a moderator on the relationship between gender diversity and team performance. Based on 71 independent samples from 68 studies published between 1996 and 2013, we find a significant negative relationship ( ? 0.10) between gender diversity and contextual performance. Additionally, we find that the cultural dimensions gender egalitarianism and collectivism have significant moderating influences on the relationship between gender diversity and task performance.     

Organizational achievement values,high‐involvement work practices,and business unit performance

This study examines the relationships among organizational achievement values, high‐involvement work practices (HIWP), and business unit performance. Specifically, we examine whether HIWP mediate or moderate the effect of achievement values on retail store performance. Using data collected at three points in time from more than 1,000 employees, we found support for the mediation model. The article concludes with directions for future research and implications for management practice. © 2011 Wiley Periodicals, Inc.     

Time precedence in the relationship between organizational climate and organizational performance: a cross-lagged study at the business unit level

This article presents a two-wave cross-lagged study (average interval of two years) on time precedence in the relationship between organizational climate and organizational performance in 171 branches of a financial services organization in the Netherlands. It is argued that four HR-induced organizational climate dimensions influence organizational performance. Additionally, it was also hypothesized that high organizational performance influences the four organizational climate dimensions through investments in HR practices and through signalling effects. Finally, it was reasoned that possibly both processes are present simultaneously. Results of testing a series of competing models in AMOS showed that organizational climate at time point 1 influenced organizational performance at time point 2 rather than the reverse, or both processes being present simultaneously.     

More than lip service: linking the intensity of empowerment initiatives to individual well-being and performance

We conceptualize empowerment initiatives as varying in terms of intensity – or the degree to which the intervention is rhetorical (aiming to influence employees' sense of control at work, what we refer to as surface empowerment) as opposed to actual (aiming to influence the actual degree of employee job authority, what we refer to as deep empowerment). We then test the effects of rhetorical vs. actual empowerment interventions on employee well-being and performance, as well as the degree to which self-efficacy mediates these effects on the basis of a simulation-based experiment. Results indicate that although both surface and deep empowerment initiatives have beneficial effects on individual well-being, only the latter results in performance increase. We also find that self-efficacy fully mediates the association between surface empowerment (as compared with non-empowerment) and well-being, but only partially mediates the association between deep empowerment (as compared with non-empowerment) and well-being.     

Dimensions of small business performance from the owner-manager's perspective: a re-conceptualization and empirical validation

Owner-managers make decisions and manage their firm as governed by the manner in which they conceptualize or ‘conceive’ performance for themselves and their firm, rather than being governed by researchers' and experts' conceptualizations of small business performance. On the basis of survey data obtained from 433 Canadian small businesses, this study aims at a deeper understanding of what owner-managers conceive performance to be, and to what extent this conception is determined by their objectives and social influences.     

Human resource management systems,employee well-being,and firm performance from the mutual gains and critical perspectives: The well-being paradox

In this study, we explored the additive, interactive, and nonlinear relationships among human resource management (HRM) systems, employee well-being, and firm performance. Based on a sample of 14,384 employees nested within 1,347 firms, we obtained three main findings. First, HRM systems yield a performance effect that exceeds the effect of single practice, suggesting positive synergies among HRM practices. Second, the opportunity bundle has a positive impact on firm performance, but when integrating it with skills and motivation bundles, the result becomes negative, indicating dis-synergy of interactions among HRM bundles. Third, at moderate levels of adoption, HRM practices are positively correlated with employee well-being and higher levels of commitment, job satisfaction, and management relations, as well as lower levels of anxiety. However, at high levels, the relationship is less positive and even turns negative with lower levels of job satisfaction and management relations. To close, we present research implications and future directions after discussing our results.     

Age diversity and firm performance in an emerging economy: Implications for cross‐cultural human resource management

This study tests the effect of age diversity on firm performance among international firms. Based on the resource‐based view of the firm, it argues that age diversity among employees will influence firm performance. Moreover, it argues that two contextual variables—a firm's level of market diversification and its country of origin—influence the relationship between age diversity and firm performance. By testing relevant hypotheses in a major emerging economy, that is, the People's Republic of China, this study finds a significant and positive effect of age diversity and a significant interactive effect between age diversity and firm strategy on profitability. We also find a significant relationship between age diversity and firm profitability for firms from Western societies, but not for firms from East Asian societies. The paper concludes by discussing the implications of this study's findings. © 2011 Wiley Periodicals, Inc.     

Perceived supervisor support climate,perceived investment in employee development climate,and business‐unit performance

Perceived supervisor support (PSS) has been found to predict employee in‐role and extra‐role performance at the individual level of analysis. With respect to the unit level of analysis, the research on the predictive role of PSS remains limited. In particular, calls have been made for research on the role of leadership in facilitating perceived HR practices at the business‐unit level and on the role of line managers as implementers of such systems. In response to such calls, this study investigated the associations between PSS climate, perceived investment in employee development (PIED) climate, and business‐unit performance among 75 gas stations located in Norway. The results showed that the PSS climate was positively related to both the PIED climate and the business‐unit performance. This study contributes to research on PSS by extending the prior findings at the individual level to the unit level of analysis. Also, the study contributes to the research on perceived HR practices by demonstrating the facilitative role of the PSS climate. Finally, the study contributes to the research on shared perceptions of HR practices generally and the concept of the “strength” of the HRM system in particular. Implications for practice and future research are discussed. © 2012 Wiley Periodicals, Inc.     

Board gender diversity and corporate environmental performance: The moderating role of family and dual‐class majority ownership structures

While prior work has investigated the impact of (a) ownership structure and (b) board gender diversity separately on corporate environmental performance, researchers have not studied the potentially important relationship between ownership control and female board diversity in influencing corporate environmental performance jointly. We do so in the context of majority ownership in family‐controlled and dual‐class firms whose motives and influence are theoretically different from that of the firm's minority shareholders. Drawing on resource dependency, socioemotional wealth theory, and secondary agency theory, we hypothesize that majority family owners and dual‐class owners likely choose women directors to help advance their personal preferences for environmental corporate social responsibility. Our empirical tests utilizing 2,755 U.S. firm years over the 2010–2015 show that, as hypothesized, these two majority ownership types interact with board gender diversity to positively influence corporate environmental performance.     

The influence of intelligent manufacturing on financial performance and innovation performance: the case of China

ABSTRACT

Artificial intelligence is increasingly used in advanced manufacturing systems to realise intelligent manufacturing. However, there is still a lack of empirical research on the impact of intelligent manufacturing on enterprise performances, especially for China. The author adopts the enterprise panel data of intelligent manufacturing implemented by China’s manufacturing industry in 2014 to 2019, and uses propensity score matching with difference in differences (PSM-DID) method to investigate the impact of intelligent manufacturing on financial performance and innovation performance. The research yields two main conclusions. First, the implementation of intelligent manufacturing has a significant role in promoting the financial performance and innovation performance of manufacturing enterprises. Second, technology-intensive industries improve the quantity of innovation by implementing intelligent manufacturing, thus promoting the improvement of short-term financial performance, but the improvement of innovation quality has a negative impact on short-term financial performance. In labour-intensive industries, the relationship between financial performance and innovation performance is not obvious.