The causal effects of organizational internal labor market on firm-specific learning – the mediating effect of willingness to internal transfer

While most of the research work addressed the internal labor market (ILM) issues from the aspect of internal and social equity point of view, our current research is, however, aimed to present the ILM model from the angle of learning the employees' firm-specific and job-specific skills. We took one step further to explore the determinants of firm-specific learning within the organizational ILM using three main criterion comprised of (1) job-related training, (2) advancement via sequence of jobs, and (3) long-term attachment to the organization. With a survey tackling the willingness to transfer internally among employees as our mediator, questionnaires were disseminated among the five traditional manufacturing industries selected in Taiwan. Our statistical results not only demonstrate the positive direct effects of all the dimensions of ILM on firm-specific learning, but also testify the indirect positive effects of ILM through willingness for internal transfer on firm-specific learning.     

The effects of labor supply shocks on labor market outcomes: Evidence from the Israeli–Palestinian conflict

Since September 2000, as a result of mobility restrictions, the supply of Palestinian workers competing for local jobs in the West Bank has increased by about fifty percent. This paper takes advantage of this unique natural experiment to study the effects of labor supply shocks on labor market outcomes. Using quarterly information on wages and employment in each city in the West Bank, the paper analyzes the short-run adjustment of labor markets to a large inflow of workers separately from the effects of political instability. The results suggest that low-skilled wages are adversely affected by an increase in the supply of low- and high-skilled workers, while high-skilled wages are only weakly negatively related to an increase in their own supply. This is consistent with a scenario in which high-skilled workers compete for low-skilled jobs, pushing the low-skilled into unemployment. This latter hypothesis is confirmed by analyzing the effects of changes in labor supply on unemployment.     

The mediating influence of work–family conflict and the moderating influence of gender on employee outcomes

Finding a balance between work and home continues to be a challenge for many employees. The influence of work–family conflict both from work interfering with family (WIF) and from family interfering with work (FIW) on employee outcomes is not well understood. Although substantial empirical research supports the general view that work–family conflict results from employees having conflicting roles, many previous studies examine work–family conflict and outcomes in the same, or ‘matching’ domains. Some studies on work conflict also have found cross domain outcomes that are largely unexplained. This research addresses this gap in the field by developing and testing the hypothesis that cross domain relationships will be mediated by conflict in the matching domains. Specifically, this study proposes that WIF mediates the relationship between FIW and four employee work outcomes (job satisfaction, organizational commitment, organizational citizenship behavior and task performance), and that FIW mediates the relationship between WIF and life satisfaction. This research also examines the moderating role of gender on the relationships while controlling for age and family status. The results of this study using a sample of 435 full time employees in the US provide support for most of the hypothesized relationships. The theoretical and practical implications of these findings are discussed.     

The relationship between employee performance management and civil servants’ turnover intentions: a test of the mediating roles of system satisfaction and affective commitment

In search of maximizing efficiency, public organizations found solace in the adoption of employee performance management (EPM) systems. While research supports that managing employees’ performance has favourable outcomes, it is still unclear why and under which conditions. Moreover, EPM systems might even create additional pressures and therefore increase turnover intentions and undermine public organization’s quest to maximize efficiency. We argue that when EPM systems are carried out consistently (i.e. internal consistency) and when they link civil servants’ individual goals to the organization’s strategic goals (i.e. vertical alignment), civil servants will be less likely to leave the organization. Hierarchical linear regression analysis shows that internal consistency relates to increased satisfaction with the EPM system and affective commitment to the organization. Vertical alignment relates to lower levels of turnover intentions. This relationship was mediated by EPM system satisfaction and affective commitment. These findings that contribute to our understanding of EPM systems can lead to favourable outcomes.     

Leader–member exchange as a moderator of the relationship between employee–organization exchange and affective commitment

While there is some evidence on the outcomes of employee–organization exchange relationships and leader–member exchange (LMX) relationships, less is known about their combined role as predictors of employee outcomes. Relying on a recent conceptualization of social leader–member exchange (SLMX) and economic leader–member exchange (ELMX) as two separate dimensions of LMX, the present study explored whether SLMX and ELMX moderate the associations between organizational social and economic exchange and affective commitment. The main finding was that the association between organizational economic exchange and affective commitment is attenuated by SLMX. In addition, a positive association between intrinsic motivation and affective commitment was also unveiled, suggesting that affective commitment is not only determined by the prosocial motivation emanating from social exchange relationships, but also from the intrinsic motivation inherent in the work itself.     

The role of affective commitment and political skill in the work interfering with family (WIF) conflict – voluntary turnover relationship

The present study explores how political skill affects an employee’s coping behavior in response to Work Interfering with Family (WIF) conflict. Applying Conservation of Resource theory, we argue that politically skilled individuals are more cognizant of the social embeddedness of WIF, and because of cross-domain resource (e.g. time, attention, energy) depletion, lack the resources to cope with its effects. As such, they leverage their political skill to more effectively turnover from the organization than less politically skilled individuals by detaching their identity and lowering their affective commitment to their organization. We tested the hypotheses using a sample of 181 individuals from a retail firm, and results support the hypothesized model. First, a test of indirect effects confirmed that affective commitment partially mediated the link between WIF and voluntary turnover (measured six months later). Second, a moderated-mediation test revealed, as hypothesized, that affective commitment only functioned as a mediator for individual with high levels of political skill. Implications for practice and directions for future research are discussed.     

The influence of organizational context on the managerial turnover–performance relationship

This study performs a comprehensive examination of organizational context in the relationship between managerial turnover and organizational performance. Using theoretical frameworks of human and social capital, we focus on the moderating roles of entity size, employment system, industry brand, and location. To test our hypotheses, we worked with the company records of a multinational fashion retail group with more than 4,000 stores grouped into eight different brands and 100,000 employees in more than 31 countries. To estimate the causal contextual effects of the relationship between voluntary managerial turnover and organizational performance, we designed a quasi-experiment using propensity score matching analysis. Our results show that the dysfunctional side of managerial turnover is significant for stores that are large, for stores managed under a primary employment system, for brands operating with higher levels of service orientation, and for countries with more restrictive employment protection legislation. We discuss the implications of these findings for practice and for future research.     

The impact of organizational and leader–member support on expatriate commitment

Using data from expatriates at MNC subsidiaries in China, this paper investigates the relationships between parent company and local subsidiary perceived organizational support (POS), leader–member exchange (LMX) and affective commitment of expatriates. The study examines the moderating effect of LMX in the relationships between both parent company and local subsidiary POS and affective commitment. Results support the relationships between both parent company and local subsidiary POS, LMX and the expatriate affective commitment, and the moderating effect of LMX in the relationships between parent company POS and affective commitment.     

The nature of employee engagement: rethinking the employee–organization relationship

Research interest in the new concept of employee engagement has grown dramatically in recent years. Employee engagement represents a work-related state of mind characterized by feelings of vigor, fulfillment, enthusiasm, absorption and dedication. However, scholars are still ambivalent about its theoretical contribution to explaining the employee–organization relationship. The goal of the study is to strengthen the theoretical foundation of the employee engagement concept in light of this relationship. We first compared employee engagement to other close concepts such as psychological empowerment and psychological contract. We then examined its contribution to the explanation of work centrality over and above psychological empowerment and psychological contract. Our study is based on an interactive sample of 593 employees from both private and public organizations in Israel. Our findings demonstrate that employee engagement is distinct from psychological empowerment and psychological contract and has an incremental value for work centrality over and above psychological empowerment and psychological contract. Implications of our findings are discussed the light of the employee–organization relationship.     

The importance of education for the reallocation of labor: Evidence from Swedish linked employer–employee data 1986–2002

Using Swedish employer–employee data we study job and worker flows for different educational groups, as well as the cyclicality of such flows. Due to the long period studied, from 1986 to 2002, and the widely fluctuating business cycle during this period, we have a unique opportunity to analyze the cyclical pattern of job and worker flows. We especially look at the big downturn in the Swedish economy in the beginning of the 1990s. When workers are treated as homogenous, we find job reallocation to be countercyclical. However, when we estimate correlations for different educational groups, we find job reallocation to be countercyclical for the lowest educated, and acyclical for higher educated workers. Contrary to job flows, we find worker flows to be acyclical, with a strong procyclical pattern in hiring rates, and an acyclical pattern in separation rates. When decomposing worker flows into educational groups, the acyclical pattern is prevalent for all groups, except for the highest educated. For the highest educated, worker reallocation is strongly pro-cyclical due to both more hirings and separations during up-turns.     

Evaluating the multi-dimensional view of employee commitment: a comparative UK–Chinese study

This study evaluates the contribution of the multiple constituencies of commitment framework to the explanation of work attitudes and behaviours among samples of manufacturing workers in the United Kingdom (UK) and the People's Republic of China (PRC). Our findings suggest that the organization, the supervisor, co-workers and the union were seen by respondents as separate commitment foci. Consistent with the ‘compatibility hypothesis’, the relationship between commitment and outcome was stronger where the constituency focus was matched. However, the ‘cultural hypothesis’, on the greater salience of person- or group-based commitments in the PRC context, was generally not accepted. The findings are discussed in the light of the comparative cultural and industrial relations contexts of the two countries.     

Employees are satisfied with their benefits,but so what? The consequences of benefit satisfaction on employees’ organizational commitment and turnover intentions

Firms are increasing their efforts to offer benefits that satisfy their employees. However, the attitudinal and behavioral consequences of such satisfaction remain unclear. This article draws on the social exchange perspective and organizational support theory to examine the consequences of three dimensions of employees’ benefit satisfaction on organizational commitment and turnover intention, by considering the mediating effect of perceived organizational support (POS). A hypothesized model is developed and tested using partial least squares analysis on a sample of 870 employees working in Spanish firms. The results show that three dimensions of benefit satisfaction contribute to the development of POS, and that POS mediates their effects on organizational commitment. However, only benefit determination and benefit administration satisfaction have an effect on turnover intention, through the mediation of POS and organizational commitment.     

The effects of low internal integration between purchasing and operations on suppliers’ resource mobilization

A company that suffers from low internal integration between corporate functions performs worse than its more integrated competitors, leaving it in a position of competitive disparity. This paper reports on an investigation of the effects of internal integration between purchasing and operations on the mobilization of supplier resources. Low internal integration generates uncoordinated operations and purchasing behaviors that negatively affect supplier resource mobilization. We find that the lack of operations support for eight major purchasing initiatives in a construction company negatively affects supplier resource mobilization, resulting in poor exchange outcomes for the suppliers. Furthermore, different types of uncoordinated behaviors affect suppliers’ resource mobilization in diverse negative ways. Based on the results, we offer a categorization of diverse types of supplier mobilization activities and offer several managerial implications for both buyers and suppliers.     

The more funding the better? The moderating role of knowledge stock on the effects of different government-funded research projects on firm innovation in Chinese cultural and creative industries

Based on prior research, this study attempts to examine how effectively government-funded research projects (GFPs) can facilitate firm innovation in the cultural and creative industry (CCI), as well as the internal organizational contingency associated with the effects of GFPs. Specifically, this paper differentiates two types of GFP -- central-government-funded projects (CGFPs) and local-government-funded research projects (LGFPs) -- and explore how effectively the two types of GFP affect two types of firm innovation, i.e., radical innovation and incremental innovation. Based on an empirical study of the panel data of Chinese innovative firms related to the CCI, this paper finds that CGFPs have an inverted U-shaped effect on both firms’ radical innovation and incremental innovation in the CCI, while LGFPs have an inverted U-shaped effect on firms’ incremental innovation, but they have no significant effects on firms’ radical innovation. The effects of both CGFPs and LGFPs are moderated by firms’ knowledge stock.     

Wage inequality and the labor market impact of economic transformation: Croatia, 1970–2008

In this paper, we examine wage inequality and wage differentials in Croatia from 1970 to 2008 using two long aggregate time series on the distribution of income. We focus especially on changing income inequality related to educational and vocational attainment, changing income inequality within those groups, and how these two components of inequality were affected by the economic transformation from socialism to capitalism. We find that income inequality between groups rose moderately post-transformation, while overall inequality increased more sharply. This finding is consistent with a growing importance of individual rather than group productivity in labor market compensation, a change broadly consistent with the economic transformation of the Croatian labor market.     

The relationship between newcomers’ emotional labor and service performance: the moderating roles of service training and mentoring functions

Abstract

Retaining newcomers and enhancing their service performance are critical issues for the human resource management and hospitality management fields. However, newcomers have just begun to learn the organizational display rules and often encounter more emotional problems than veteran employees. Thus, how organizations help the newcomers to manage their emotions in order to deliver better service is an important issue. Based on the Job Demands-Resources (JD-R) model, this study explores the relationship between newcomers’ emotional labor and service performance, and examines whether human resource practices such as service training and mentoring functions can moderate this association. We collected data from hospitality newcomers and their supervisors from 34 hotels. A total of 244 valid paired questionnaires were collected during two different time phases. The results of hierarchical regression analysis show that newcomers’ deep acting positively relates to service performance and service training can enhance this relationship. In addition, mentoring functions also differentially moderate the relationships between the two emotional labor strategies and service performance.     

The two faces of Nordic management? Nordic firms and their employee relations in the Baltic States

This study examines Nordic management styles in union and non-union industrial enterprises in the Baltic States (Estonia, Latvia, Lithuania) through case studies of nine Nordic subsidiary companies, based on on-site interviews with management and employees.1 1. Here, I refer to ‘Nordic’ countries denoting Denmark, Finland and Sweden, for the companies chosen for research are from these three countries and for the sake of common social and economic characteristics among these three countries, basing on the varieties of capitalism (VoC) literature. That is why Norway, a country seen usually in the composition of the Nordic countries, is left out of this investigation. The entity ‘Baltic States’ or ‘Baltic countries’ refers here to the three countries on the eastern shore of the Baltic Sea: Estonia (population 1.4 million), Latvia (2.3 million) and Lithuania (3.4 million). This analysis construes the ‘Nordic model’ of management style as ‘bargained constitutional’ or ‘sophisticated consultative’, following Purcell and Ahlstrand's (1994) matrix of management styles in the highly unionized countries of origin, characterized as coordinated market economies. The case studies reveal that in the Baltic liberal-market environment, Nordic employers exhibit a variety of management styles, ranging from sophisticated human relations or paternalistic relations styles in non-union contexts, to an adversarial bargained style or modern paternalistic style in unionized subsidiary firms. The Nordic model's ‘bargained constitutionalism’ only occurs in those cases in the sample in which Soviet-era trade union structures survive, or where an in-firm union has fought for recognition and collective bargaining.     

The impact of intellectual property rights protection on trade: The role of a “third country” in market power and market expansion effects

This study analyzes the impact of increased protection of intellectual property rights (IPRs) in importing countries on the inventing countries’ exports in the presence of “third countries.” In this study, “third countries” include all countries that compete with the inventing countries in exporting similar products to the importing countries. The most significant contribution of this study is to develop an alternative empirical approach for analyzing the impact of IPRs on trade flows. This approach considers three players (the inventing/exporting country, the importing country, and “third countries”) and thus is tentatively called the “three-country model.” The findings confirm that our “three-country model” provides important insights into the impact of IPR protection on international trade, especially in the context of increasingly fierce competition in international trade. We found that the emergence of a third country restrains the market power effects and stimulates market expansion effects. Specifically, when a third country appears, the increased protection of IPRs in the importing countries encourages the inventing countries to increase their exports. However, the export elasticity of IPR protection is highest for primary products and lowest for technology-intensive and human capital–intensive products.     

Depletion or expansion? Understanding the effects of support policy use on employee work and family outcomes

Past research on the effects of employees' use of work–family support policies tends to draw on a depletion perspective suggesting that using these policies may reduce work–family conflict. The emphasis on depletion fails to consider the expansion perspective that assumes that using work resources may enrich family functioning. Using a sample of 113 matched employee–supervisor pairs and a 1‐month separation between predictor and criterion measurement, we found support for the expansion rather than the depletion perspective. Specifically, the relationships between support policy use and employee job satisfaction and family efficacy (but not organisational citizenship behaviour) were mediated by work‐to‐family enrichment; these effects were realised only for employees with high levels of family identity. In contrast, no support was found for family‐to‐work conflict as a mediator of the model.     

The effects of psychological capital and risk tolerance on service workers’ internal motivation for firm performance and entrepreneurship

This study investigates how psychological capital and risk tolerance can inspire service workers to develop internal motivation and entrepreneurial confidence. Data were gathered from a survey of 255 service workers in the metropolitan area of Seoul, South Korea. The results showed that service workers’ psychological capital consisted of two main constructs: hopeful self-efficacy and optimistic resilience. The results indicated that hopeful self-efficacy had no significant effect on service workers’ internal motivation, while the optimistic resilience had a positive effect which in turn positively impacted entrepreneurial confidence. On the other hand, risk tolerance was found not to affect service workers’ internal motivation. These results imply that optimistic service workers, with recuperative powers, tended to be proactive in their work and have more confidence when establishing new ventures. They also suggest that service firms can improve organizational performance by promoting worker optimism and resilience. This study provides practical insights into why service firms should pay attention to worker optimism and resilience to improve firm performance over the long run, not only for the firms but for the national economy as a whole.