On the Same Side of the Faultline: Inclusion in the Leader's Subgroup and Employee Performance

Extending theory on faultlines and subgroups, we argue that faultlines splitting a team into homogeneous subgroups can have different effects on team members' individual performance, depending on different intra‐subgroup processes. Specifically, we propose that the effect of faultline strength on individual performance depends on whether a team member's subgroup includes the team leader. Building on the notion of faultline triggers, we further propose that organizational crises exacerbate this interaction because they make social support by the team leader especially important. We tested these assumptions with objective performance data collected over a period of four years from 3263 financial consultants (325 teams) while controlling for the effects of relational demography. Results showed that in teams with strong faultlines, consultants' performance decreased to a lesser extent in crisis years if the consultants shared a subgroup with their team leader. Thus, faultlines had different effects on team members from different subgroups.     

Revisiting faultline conceptualization: measuring faultline strength and distance

The purpose of this research is to develop a conceptually and methodologically sound measure of group faultlines (demographic alignment of members along multiple attributes within a group). This measure takes into account the concept of faultline strength (the extent of a demographic alignment across members within a group) and, thus far neglected in past work, the concept of faultline distance. This faultline distance measure reflects how far apart the emerging subgroups are on demographic characteristics. This new, more elaborate conceptualization of faultlines is validated by presenting a number of hypothetical examples that demonstrate the distinct properties of faultline measures. We also validate our measures by empirically examining the relationships between faultline strength and distance, and active, or perceived, faultlines.     

Group learning and performance: the role of communication and faultlines

Drawing upon group learning theory, we suggest that communication content and frequency as well as experimentation can be considered aspects of group learning behavior and explore their effect on group performance. We posit that communication content and frequency, as well as experimentation, positively influence group performance. Further, drawing upon the diversity construct of group faultlines, we hypothesize that faultlines moderate these relationships. Results provide mixed support for our hypotheses.     

Temporal Orientation and Corporate Social Responsibility: Global Evidence

There has been a growing emphasis on the importance of a long-term perspective in academia and practice. Yet understanding of the interdependency of those factors – the temporal preferences embedded in organizations and in societal values as well as the influence of temporal orientation of investors – remains limited. We theorize whether and how a firm's corporate social responsibility (CSR) is affected by the societal temporal orientation, its time horizon, and its investors' time horizon. Using a global sample, we confirm that CSR activity is higher when a country has a long-term orientation culture, when the firm has a long-time horizon, and when the controlling institutional investor has a long-term investment horizon. We also find that the national culture's long-term orientation heightens the effect of a firm's long-time horizon on its CSR. Further, our results show that the effects of temporal orientation are more pronounced in environmental than in social CSR.     

董事会断裂带、内部控制与会计信息质量

以董事会断裂带为研究视角,选取2008—2018年A股上市公司为样本,分析上市公司会计信息质量是否会受到董事会断裂带的影响,以及内部控制对两者关系的调节作用。研究结果表明：断裂带的存在削弱了董事会成员监督意愿与监督能力,进而降低了上市公司披露的会计信息质量;而有效的内部控制通过抑制管理层机会主义行为,显著减缓董事会断裂带对会计信息质量的负向影响。进一步地,董事会非正式层级与持股比例较高时,断裂带的不利作用得到缓解,而在国有企业或市场化程度较低的地区,董事会断裂带对公司会计信息质量的负向影响则有所增强。研究结论深化和丰富了董事会断裂带的经济后果研究,也为上市公司完善内部控制、加强对管理层的监督,进而提高会计信息质量提供了理论依据。     

Impact of investor’s varying risk aversion on the dynamics of asset price fluctuations

While investors’ responses to price changes and their price forecast have been identified as one of the major factors contributing to large price fluctuations in financial markets, our study shows that investors’ heterogeneous and dynamic risk aversion (DRA) preferences may play a more critical role in understanding the dynamics of asset price fluctuations. We allow an agent specific and time-dependent risk aversion index in a popular power utility function with constant relative risk aversion to construct our DRA model in which we made two key contributions. We developed an approximated closed-form price setting equation, providing a necessary framework for exploring the impact of various agents’ behaviors on the price dynamics. The dynamics of each agent’s risk aversion index is modeled by a bounded random walk with a constant variance, and such dynamics is incorporated in the price formula to form our DRA model. We show numerically that our model reproduces most of the “stylized” facts observed in the real data, suggesting that dynamic risk aversion is an important mechanism for understanding the dynamics of the financial market and the resultant financial time series.     

System‐Spanning Values Work and Entrepreneurial Growth in Family Firms

Culture and values are key drivers of corporate entrepreneurship in early stages of family firm development, but value conflicts often arise over time that progressively inhibit their entrepreneurial efforts. How can family firms reconcile conflicting values to sustain corporate entrepreneurship over time? Our 45‐year longitudinal case study of a large global family firm shows that family business leaders’ practices of invoking and flexibly using family and business values were crucial to achieve sustained entrepreneurial behaviour and growth over an extended period of time. We theorize these efforts as system‐spanning values work enfolding through specific family, business, and temporal mechanisms. By identifying and elucidating three types of values work (i.e., rooting, revitalizing, and spreading), our study advances current understanding of the micro‐foundations underpinning the relationship between values and entrepreneurship in family firms.     

Curbing cream-skimming: Evidence on enrolment incentives

Using data from a large, U.S. federal job training program, we investigate whether enrolment incentives that exogenously vary the ‘shadow prices’ for serving different demographic subgroups of clients influence case workers' intake decisions. We show that case workers enroll more clients from subgroups whose shadow prices increase but select at the margin weaker-performing members from those subgroups. We conclude that enrolment incentives curb cream-skimming across subgroups leaving a residual potential for cream-skimming within a subgroup.     

Human Resource Systems and Ethical Climates: A Resource‐Based Perspective

We know very little about how ethical climates are built and the potential role of a firm's HR system in facilitating the development of this resource. The resource‐based view (RBV) of the firm suggests that human resource systems directly influence a firm's performance through the development of resources that are deeply woven in a firm's history and culture. How this occurs though has not been thoroughly considered in the research literature. Drawing on the theoretical insights from the resource‐based view of the firm, this article explores how HR systems can foster the development and maintenance of five types of ethical climates. In so doing, this article improves our conceptual understanding of why ethical climates may be seen as having strategic value for firms and how HR systems may influence that value. In addition, it contributes to theory by extending the domain of the resource‐based view of the firm by exploring its integration with the varied types of ethical climates. © 2014 Wiley Periodicals, Inc.     

Inclusive leadership: Realizing positive outcomes through belongingness and being valued for uniqueness

We introduce a theoretically-grounded conceptualization of inclusive leadership and present a framework for understanding factors that contribute to and follow from inclusive leadership within work groups. We conceptualize inclusive leadership as a set of positive leader behaviors that facilitate group members perceiving belongingness in the work group while maintaining their uniqueness within the group as they fully contribute to group processes and outcomes. We propose that leader pro-diversity beliefs, humility, and cognitive complexity increase the propensity of inclusive leader behaviors. We identify five categories of inclusive leadership behaviors that facilitate group members' perceptions of inclusion, which in turn lead to member work group identification, psychological empowerment, and behavioral outcomes (creativity, job performance, and reduced turnover) in the pursuit of group goals. This framework provides theoretical grounding for the construct of inclusive leadership while advancing our understanding of how leaders can increase diverse work group effectiveness.     

Growing Followers: Exploring the Effects of Leader Humility on Follower Self‐Expansion,Self‐Efficacy,and Performance

Although the effectiveness of leader humility has been well documented, our understanding of how leader humility influences followers psychologically is limited. Surpassing a mere leader‐centric understanding of the leader influence process by more fully understanding how leadership behavior shapes followers psychologically has been identified as a critical need by leadership scholars. Drawing on self‐expansion theory, we argue that leader humility triggers followers’ self‐expansion and that this psychological change enhances followers’ self‐efficacy, which in turn contributes to followers’ task performance. We also argue that the relationship between leader humility and followers’ self‐expansion is strengthened when leaders and followers are similar in age and gender. Using a time‐lagged research design with responses from 256 leader–follower dyads, we found support for our proposed model. We discuss the theoretical implications for our findings and suggest areas for future research.     

WHICH AGGLOMERATION EXTERNALITIES MATTER MOST AND WHY?

This paper revisits the ongoing discussion on the importance of agglomeration externalities – specifically specialization, diversity and competition effects – that may contribute to innovation, productivity and urban employment growth. Previous meta‐analyses suggested that the evidence on agglomeration externalities is strongly context‐specific. Expanding an earlier analysis of 31 articles, we seek to draw in this paper more robust conclusions by means of the statistical evidence for agglomeration externalities presented in 73 scientific articles, all building on the seminal work of Glaeser et al. (1992). Our results confirm that the heterogeneity among studies is huge and can only be partially accounted for by means of an ordered probit analysis. Additionally, some evidence of publication bias is found. We conclude that the conventional lines of inquiry in this literature may now have reached strongly diminishing returns. New lines of inquiry, using rich micro‐level data on firms and workers, dynamic general equilibrium models at the macro level, more attention for spatial and temporal variation in the impacts of agglomeration, and further investigations into the spatial scope of externalities are promising avenues for further research that can enhance our understanding of how agglomeration externalities continue to fuel our increasingly urbanized world.     

Sustainable Entrepreneurship and B Corps

Sustainable entrepreneurship contributes to solving social and environmental problems through the means of successful for‐profit businesses. This paper contributes to understanding how sustainable entrepreneurship is implemented by exploring an emerging new form of business, ‘B Corps’, that employs market tactics to address social and environmental issues. Through interviewing 14 B Corps, the exploratory research study found that B Corps treat profit as a means to achieve positive societal ends, they regard the B Corp model as a tool for change, the B Corp model provides a common collective identity for internal and external validation, they are focused on societal impact rather than maximizing profits and they attempt to legitimate this form of sustainable entrepreneurship by influencing the business community and government officials. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment     

Change and the development of entrepreneurial networks over time: a processual perspective

Although it is now well established that networks contribute to entrepreneurship by extending the individual entrepreneurial asset base of human, social, market, financial and technical capacity, little work, empirical or theoretical, has examined the dynamics of networking processes in a temporal framework. Drawing on evidence from three longitudinal case studies of entrepreneurs operating in the oil industry in the North East of Scotland, this paper presents an extensive empirical investigation into network transformation over time. We are thus able to chart networks in their historical contingency. This chronological lens allows us to view patterns in network continuity and change and enables us to develop a rich conceptual framework. The study demonstrates that networks are vital living organisms, changing, growing and developing over time. Yet set in their history, networks are much more than an extension of the entrepreneurial asset base. Our data shows how a reconceptualization of the nature of networking is called for; one which privileges an understanding of the relational dynamic as a structural configuration representing the social construction of the entrepreneurial environment. Thus our conceptualization proposes that networks actually create the environment, as it is understood and operated by the entrepreneur, and that consequently the networking process is the enactment of the environment.     

Time is of the essence: Improving the conceptualization and measurement of time

We advance the understanding and measurement of the concept of time by offering a taxonomy of four distinct time constructs: duration, frequency, timing, and sequence. On the basis of a literature review of human resource management and allied fields (i.e., organizational behavior, industrial and organizational psychology, general management, entrepreneurship, and strategic management studies), we offer recommendations on how to measure each construct as well as illustrations drawn from different domains and theories on how these recommendations can be implemented. In addition, for each construct, we offer specific, practical, and actionable recommendations regarding critical design choices, dilemmas, and trade-offs that must be considered when investigating time conceptually and empirically. We discuss these recommendations in the form of a sequential decision-making process that can be used as a roadmap by researchers. We hope our conceptualization and recommendations will serve as a catalyst and useful resource for future conceptual and empirical research that aims to formulate better time-sensitive and temporally falsifiable theories.     

When does virtuality help or hinder teams? Core team characteristics as contingency factors

In this paper, we seek to encourage scholars to consider how reliance on technology-mediated communications can bring both promises and perils to team-based work structures. Specifically, we argue that a team's core characteristics (including skill differentiation, temporal stability, and authority differentiation) will differentially affect the challenges and opportunities presented by the team's reliance on virtual means of communication. First, we will discuss how varying degrees of each core characteristic can affect outcomes when teams rely on virtual communication. We then propose how configurations of the three characteristics and virtuality can enhance understanding in both research and practice. We advance propositions that we hope will serve as a starting point for scholarly discussion about how the literature on virtual teams can leverage the existing theories and knowledge on team structure and interdependencies.     

Preserving a Professional Institution: Emotion in Discursive Institutional Work

We studied the discursive institutional work written by pharmacy leaders as part of a larger institutional project to preserve the institution of pharmacy. Our analysis of monthly editorials printed in the Journal of the American Pharmacists Association from 1960 to 2003 shows how different discrete emotions were systematically incorporated in specific rhetorical argument structures over the course of an institutional project. In contrast to previous research, we show how discursive institutional work that is directed to members of the same specific social group (e.g., a profession) can vary over time in response to significant events and changes in practices of the target audience. Our longitudinal study shows that the relative frequency of argument types, the incorporation of emotion, and the content of rhetorical argumentation changed over time. We contribute to theory about the role of emotions in discursive institutional work by unpacking the role of discrete emotions and showing how such discourse evolves over time in concert with field conditions.     

Small dimension PDE for discrete Asian options

This paper presents an efficient method for pricing discrete Asian options in presence of smile and non-proportional dividends. Using an homogeneity property, we show how to reduce an n0 dimensional problem to a one- or two-dimensional one. We examine different numerical specifications of our dimension reduced PDE using a Crank–Nicholson method (interpolation method, grid boundaries, time and space steps) as well as the extension to the case of non-proportional discrete dividends, using a jump condition. We benchmark our results with Quasi Monte-Carlo simulation and a multi-dimensional PDE     

Business Involvement in Accounting: A Case Study of International Financial Reporting Standards Adoption and the Work of Accountants

Abstract

Although Byrne and Pierce [(2007) Towards more comprehensive understanding of the roles of management accountants, European Accounting Review, 16(3), pp. 469–498] found that an increasing regulatory burden may decrease accountants' chances of getting involved in business, little is known about corporate reporting practice and whether, and if yes how, regulation impacts on accountants' work. In order to fill this gap, the paper provides a case study analysis of International Financial Reporting Standards (IFRS) adoption and its impact on and implications for an accountant's role, positions, practices and work in a continental European context. This study describes how IFRS expect information preparers to take more responsibility for reporting than domestic accounting standards. Thus, the present study contributes to the literature by arguing that it depends on the set of accounting standards how they impact on accountants' work. The study shows why and how especially IFRS' requirement of ‘business involvement’ in accounting revolutionises accountants' work and how it has implications on their roles, practices and positions in the case firm. Finally, the paper explains how learning and knowledge creation required by IFRS adoption was made possible through communities of practice and hence how it was possible to clarify the responsibilities of divisional and group accountants in the case firm. Thus, the present study enhances our understanding of reporting activity by describing actual practices of and mechanisms used in corporate reporting.