Panicca: Panic on Cross‐Section Averages

The cross‐section average (CA) augmentation approach of Pesaran (A simple panel unit root test in presence of cross‐section dependence. Journal of Applied Econometrics 2007; 22 : 265–312) and Pesaran et al. (Panel unit root test in the presence of a multifactor error structure. Journal of Econometrics 2013; 175 : 94–115), and the principal components‐based panel analysis of non‐stationarity in idiosyncratic and common components (PANIC) of Bai and Ng (A PANIC attack on unit roots and cointegration. Econometrica 2004; 72 : 1127–1177; Panel unit root tests with cross‐section dependence: a further investigation. Econometric Theory 2010; 26 : 1088–1114) are among the most popular ‘second‐generation’ approaches for cross‐section correlated panels. One feature of these approaches is that they have different strengths and weaknesses. The purpose of the current paper is to develop PANICCA, a combined approach that exploits the strengths of both CA and PANIC. Copyright © 2015 John Wiley & Sons, Ltd.     

Post‐Stratification Weighting in Organizational Surveys: A Cross‐Disciplinary Tutorial

Post‐stratification weighting is a technique used in public opinion polling to minimize discrepancies between population parameters and realized sample characteristics. The current paper provides a weighting tutorial to organizational surveyors who may otherwise be unfamiliar with the rationale behind the practice as well as “when and how to do” such weighting. The primary reasons to weight include: [1] reducing the effect of frame, sampling, and nonresponse bias in point estimates, and, relatedly, (2) correcting for aggregation error resulting from over‐ and underrepresentation of constituent groups. We briefly compare and contrast traditions within public opinion and organizational polling contexts and present a hybrid taxonomy of sampling procedures that organizational surveyors may find useful in situating their survey efforts within a methodological framework. Next, we extend the existing HRM literature focused on survey nonresponse to a broader lens concerned with population misrepresentation. It is from this broadened methodological framework that we introduce the practice of weighting as a remedial strategy for misrepresentation. We then provide sample weighting algorithms and standard error corrections that can be applied to organizational survey data and make our data and procedures available to individuals who may wish to use our examples as they learn “how to weight.” © 2018 Wiley ­Periodicals, Inc.     

A Framework For Work‐Life Instruments: A Cross‐National Review

Recently there has been growing attention paid by practitioners to the need for effective measurement of the contribution of work‐life management initiatives to both financial and nonfinancial performance objectives and to organizational effectiveness overall. We review a range of performance indicators, criteria, and indices that are used in a variety of countries to measure the performance of work‐life initiatives. Using insights from research as a theoretical foundation, we present a framework for organizations to use when developing metrics for work‐life measurement that comprise the four dimensions of planning and alignment, customization, supportive culture, and demonstrated value. Finally, we offer recommendations for research and practice related to measurement of work‐life initiatives to assist scholars, managers, employees, and communities. © 2014 Wiley Periodicals, Inc.     

Cross‐hedging and forward‐contract pricing of electricity in the Pacific Northwest

This paper develops a linear regression model for using actively traded NYMEX natural gas futures as a cross‐hedge against electricity spot‐price risk in the Pacific Northwest and for pricing the forward contracts in the presence of temperature and hydro risks. Our approach comports with reality and provides power purchasers with an effective instrument through which they can hedge their electricity bets through natural gas futures. It also demonstrates the sharp month‐to‐month variations in the natural gas futures' optimal hedge ratios and hedge effectiveness. Finally, it finds significant risk premiums in the Pacific Northwest forward prices, supporting the hypothesis that forward‐contract buyers are relatively more risk‐averse than sellers. Copyright © 2011 John Wiley & Sons, Ltd.     

The Network‐Performance Relationship in Knowledge‐Intensive Contexts—A Meta‐Analysis and Cross‐Level Comparison

This study examines the generalizability of the network‐performance relationship across individual and group levels, focusing on knowledge‐intensive contexts. Drawing on a meta‐analytical approach, we synthesize the results of 102 empirical studies to test whether network characteristics such as centrality, brokerage, and tie strength similarly influence the job performance of individuals and groups. Results show that while there are no differences in the direction of the network‐performance relationship across levels, there are substantial differences in magnitude. Individual performance profits more strongly from a high number of direct connections, whereas groups reap higher benefits from brokerage positions. Additional analyses reveal that the network measurement method, tie content, and performance criteria function as moderators of the network performance relationship, but their influence is consistent neither across network characteristics nor across levels. By meta‐analytically comparing and contrasting the network‐performance relationship for individuals and groups, we contribute to multilevel research on networks and organizations. Particularly, we move toward the development of a multilevel homology theory of networks. Implications for theory, practice, and future research are discussed. © 2017 Wiley Periodicals, Inc.     

Truth and Robustness in Cross‐country Growth Regressions*

We re‐examine studies of cross‐country growth regressions by Levine and Renelt (American Economic Review, Vol. 82, 1992, pp. 942–963) and Sala‐i‐Martin (American Economic Review, Vol. 87, 1997a, pp. 178–183; Economics Department, Columbia, University, 1997b). In a realistic Monte Carlo experiment, their variants of Edward Leamer's extreme‐bounds analysis are compared with a cross‐sectional version of the general‐to‐specific search methodology associated with the LSE approach to econometrics. Levine and Renelt's method has low size and low power, while Sala‐i‐Martin's method has high size and high power. The general‐to‐specific methodology is shown to have a near nominal size and high power. Sala‐i‐Martin's method and the general‐to‐specific method are then applied to the actual data from Sala‐i‐Martin's original study.     

Exponent of Cross‐Sectional Dependence: Estimation and Inference

This paper provides a characterisation of the degree of cross‐sectional dependence in a two dimensional array, {x_it,i = 1,2,...N;t = 1,2,...,T} in terms of the rate at which the variance of the cross‐sectional average of the observed data varies with N. Under certain conditions this is equivalent to the rate at which the largest eigenvalue of the covariance matrix of x _t=(x_1t,x_2t,...,x_Nt)′ rises with N. We represent the degree of cross‐sectional dependence by α, which we refer to as the ‘exponent of cross‐sectional dependence’, and define it by the standard deviation, , where is a simple cross‐sectional average of x_it. We propose bias corrected estimators, derive their asymptotic properties for α > 1/2 and consider a number of extensions. We include a detailed Monte Carlo simulation study supporting the theoretical results. We also provide a number of empirical applications investigating the degree of inter‐linkages of real and financial variables in the global economy. Copyright © 2015 John Wiley & Sons, Ltd.     

Combination of Tests for Cointegration in Cross‐Correlated Panels

In this paper, Cheng and Sheng's (2017) combination of ‘combinations of P‐values’ (CCP) is extended to a combination of more than two tests and applied for cointegration testing in cross‐correlated panels. In a Monte Carlo experiment, power and size of the different combinations of combinations are investigated. If uncertainty about the panel configuration is taken into account, the results indicate that a multi‐test combination can minimize power losses. Furthermore, the usefulness of the combinations studied is illustrated by an application to international interest rate linkage. Cross‐sectional dependencies in both the simulation and the empirical studies are accounted for by using the block bootstrap.     

Cross‐cultural differences on work‐to‐family conflict and role satisfaction: A Taiwanese‐British comparison

The aim of this research was to explore relations between work and family demands and resources, work‐to‐family conflict (WFC), and work and family outcomes in a cross‐cultural comparative context involving Taiwanese and British employees. Two‐hundred and sixty‐four Taiwanese employees and 137 British employees were surveyed using structured questionnaires. For both Taiwanese and British employees, work and family demands were positively related to WFC, whereas work resources were negatively related to WFC. Furthermore, WFC was negatively related to family satisfaction. More importantly, we found that nation moderated relationships between work resources and WFC, WFC and work, and family satisfaction. Specifically, work resources had a stronger protective effect for Taiwanese than British in reducing WFC, whereas WFC had a stronger detrimental effect on role satisfaction for British than Taiwanese. It is recommended that both culture‐general and culture‐specific effects should be taken into consideration in designing future WFC research and familyfriendly managerial practices. © 2010 Wiley Periodicals, Inc.     

Market Orientation and Performance: A Meta‐Analysis and Cross‐National Comparisons*

abstract Quantitative evidence drawn from a meta‐analysis of 56 studies (58 samples) conducted in 28 countries reveals that market orientation is a generic determinant of firm performance. However, stronger effects were found for studies set in large, mature markets and when market orientation was measured using Kohli, Jaworski and Kumar's (1993 ) MARKOR scale. The meta‐analysis also revealed that the value of a market orientation weakens in proportion to the cultural distance separating the home market from the USA. This study thus extends previous research by: (1) providing evidence of measurement moderators that inhibit the generalization of results obtained from studies using different scales and performance variables; (2) establishing benchmark effect sizes for specific regions around the world; and (3) revealing that the managerial value of a market orientation is significantly affected by the cultural and economic characteristics of the host country.     

Leader‐member exchangeand job satisfacton: Cross‐industry comparisons and predicted employee turnover

The present research analyzes quality of leader‐member exchange (LMX) and job satisfaction and predicts employee turnover rates in the food manufacturing, restaurant, and banking industries resulting from low‐quality LMX and job dissatisfaction. It confirms the reliability and construct validity of the well‐known LMX scale and Minnesota Job Satisfaction Questionnaire (MSQ) in cross‐industry comparisons. It also identifies the shape of the hypothesized relationships among the three industries. Comparisons indicate that in the service sector, quality of LMX is significantly higher than in manufacturing, that the level of job satisfaction is higher in manufacturing than in service, and that satisfaction with supervision has a significant impact on job satisfaction.     

The Research‐Practice Gap in Human Resource Management: A Cross‐Cultural Study

In this study, we examine the cross‐cultural differences in human resource (HR) managers’ beliefs in effective HR practices by surveying HR practitioners in Finland (N = 86), South Korea (N = 147), and Spain (N = 196). Similar to previous studies from the United States, the Netherlands, and Australia, there are large discrepancies between HR practitioner beliefs and research findings, particularly in the area of staffing. In addition, we find that interpersonal‐oriented aspects of HR practices tend to be more culturally bound than technical‐oriented aspects of HR practices. We interpret the differences using Hofstede's cultural dimensions (Power Distance, Individualism versus Collectivism, Masculinity versus Femininity, Long‐Term Orientation versus Short‐Term Orientation, and Uncertainty Avoidance). We discuss the overall nature of the science‐practice gap in HR management, and the implications for evidence‐based management. © 2014 Wiley Periodicals, Inc.     

Collaborative Knowing: The Adaptive Nature of Cross‐Boundary Spanning

This article elaborates how experts employ boundary objects to perform collaborative work in situ across boundaries. Our study takes a practice lens to examine the adaptive nature of cross‐boundary spanning. We conduct a field study and analyse engineers' troubleshooting tasks in maintaining sophisticated wafer‐fabrication machines. Our findings report three organizing practices: identifying problem boundaries, orchestrating collective responsibilities, and developing a systemic understanding. This mode of organizing explains how experts draw lessons from boundary objects to facilitate adaptive learning and collaboration for solving complicated problems in interactive systems. Our analysis contributes to theories of cross‐boundary spanning, adaptive learning, and problem‐solving, and suggests practical lessons in managing cross‐boundary work.     

Organizational Citizenship Behavior and Role Breadth: A Meta‐Analytic and Cross‐Cultural Analysis

We provide a meta‐analysis of the empirical literature concerning role breadth, defined as the degree to which employees consider organizational citizenship behavior (OCB) to be an inherent part of their job. Results based on a combined sample size of 9,222 showed: (a) Confucian Asians consider OCB as part of their job to a greater extent than do their Anglo counterparts; (b) affiliative kinds of OCB (e.g., helping, conscientiousness, and courtesy) are more likely to be considered part of one's job than are change‐oriented OCB (e.g., voice, taking charge, and initiative); and (c) OCB‐inclusive role breadth correlates strongly with OCB (r_c = .43). The implications of these findings for human resources practice, such as competency modeling, employee selection and training, organizational rewards, and employee‐employer/supervisor relations, are discussed. © 2013 Wiley Periodicals, Inc.     

Contracting Costs and Information Asymmetry Reduction in Cross‐Border M&A

This paper explores the contracting costs of conducting mergers and acquisitions (M&A), creates a theoretical model of the information asymmetry involved, and shows how buying firms employ several mechanisms to reduce such asymmetry. Extending prior literature, the paper examines these costs in both domestic and cross‐border settings using a sample of over 3000 M&A deals. I consider both the fees paid and the time required in the bargaining phase to be contracting costs, and model them simultaneously to help explicate their endogenous relationship. The results show that buyers in cross‐border deals are more likely to employ mechanisms to affect information asymmetry, while the employment of these mechanisms affects contracting costs. The results help to explain why cross‐border M&A are more costly yet more quickly executed. Finally, modelling the use and effects of the mechanisms is sufficient to explain the contracting cost differences between domestic and cross‐border M&A.     

Variable Selection in Cross‐Section Regressions: Comparisons and Extensions

Cross‐section regressions often examine many candidate regressors. We use multiple testing procedures (MTPs) controlling the false discovery rate (FDR) — the expected ratio of false to all rejections — so as not to erroneously select variables because many tests were performed, yielding a simple model selection procedure. Simulations comparing the MTPs with other common model selection criteria demonstrate that, for conventional tuning parameters of the selection procedures, only MTPs consistently control the FDR, but have slightly lower power. In an empirical application to growth, MTPs and PcGets/Autometrics identify similar growth determinants, which differ somewhat from those obtained by Bayesian Model Averaging.     

Panel Unit‐root Tests for Cross‐sectionally Correlated Panels: A Monte Carlo Comparison*

This paper deals with the finite‐sample performance of a set of unit‐root tests for cross‐correlated panels. Most of the available macroeconomic time series cover short time periods. The lack of information, in terms of time observations, implies that univariate tests are not powerful enough to reject the null of a unit‐root while panel tests, by exploiting the large number of cross‐sectional units, have been shown to be a promising way of increasing the power of unit‐root tests. We investigate the finite sample properties of recently proposed panel unit‐root tests for cross‐sectionally correlated panels. Specifically, the size and power of Choi's [Econometric Theory and Practice: Frontiers of Analysis and Applied Research: Essays in Honor of Peter C. B. Phillips, Cambridge University Press, Cambridge (2001)], Bai and Ng's [Econometrica (2004), Vol. 72, p. 1127], Moon and Perron's [Journal of Econometrics (2004), Vol. 122, p. 81], and Phillips and Sul's [Econometrics Journal (2003), Vol. 6, p. 217] tests are analysed by a Monte Carlo simulation study. In synthesis, Moon and Perron's tests show good size and power for different values of T and N, and model specifications. Focusing on Bai and Ng's procedure, the simulation study highlights that the pooled Dickey–Fuller generalized least squares test provides higher power than the pooled augmented Dickey–Fuller test for the analysis of non‐stationary properties of the idiosyncratic components. Choi's tests are strongly oversized when the common factor influences the cross‐sectional units heterogeneously.     

Cointegration in Panel Data with Structural Breaks and Cross‐Section Dependence

The power of standard panel cointegration statistics may be affected by misspecification errors if structural breaks in the parameters generating the process are not considered. In addition, the presence of cross‐section dependence among the panel units can distort the empirical size of the statistics. We therefore design a testing procedure that allows for both structural breaks and cross‐section dependence when testing the null hypothesis of no cointegration. The paper proposes test statistics that can be used when one or both features are present. We illustrate our proposal by analysing the pass‐through of import prices on a sample of European countries. Copyright © 2013 John Wiley & Sons, Ltd.     

Cross‐border Small‐scale Trading in South‐Eastern Europe: Do Embeddedness and Social Capital Explain Enough?

The article analyses cross‐border small‐scale trading (CBST) from the perspective of New Institutional Economics. It offers an alternative analytical starting point to this topic, which is mainly tackled by sociologists and anthropologists. It is argued that concepts like social capital or social embeddedness can be of certain analytical use but that they hardly suffice to explain human behaviour in a detailed manner. The case of reference is the institution of bribery as it evolved in the first half of the 1990s at the Bulgarian‐Turkish border.     

An Institutional Configurational Approach to Cross‐National Diversity in Corporate Governance

Corporate governance (CG) research has typically been studied from rather disparate disciplinary approaches, thereby offering myopic and often conflicting rationales. We develop an institutional configurational approach to integrate this ‘siloed’ field and explain CG patterns around the world. To do so, we draw on an inductive, theory‐building methodology based on fuzzy‐set logic to uncover the configurations across institutional actor‐centred domains and their impact on CG patterns. Empirically, we explore the necessary and sufficient causal conditions leading to different features of codes of good governance across 32 OECD countries. We generate propositions linking configurational institutional domains to code features. Our results show that a single institutional domain by itself is not sufficient to explain CG outcomes, and that these domains need to be considered in conjunction, leading, in turn, to the identification of four distinct configurational governance prototypes. Our study offers a comprehensive account of drivers of cross‐national differences in CG and yields useful insights for managing and regulating governance.