Corporate Governance in China: A Meta‐Analysis

How has the impact of ‘good corporate governance’ principles on firm performance changed over time in China? Amassing a database of 84 studies, 684 effect sizes, and 547,622 firm observations, we explore this important question by conducting a meta‐analysis on the corporate governance literature on China. The weight of evidence demonstrates that two major ‘good corporate governance’ principles advocating board independence and managerial incentives are indeed associated with better firm performance. However, we cannot find strong support for the criticisms against CEO duality. In addition, we go beyond a static perspective (such as certain governance mechanisms are effective or ineffective) by investigating the temporal hypotheses. We reveal that over time, with the improvement in the quality of market institutions and development of financial markets, the monitoring mechanisms of the board and state ownership become more strongly related to firm performance, whereas the incentive mechanisms lose their significance. Overall, our findings advance a dynamic institution‐based view by substantiating the case that institutional transitions matter for the relationship between governance mechanisms and firm performance in the second largest economy in the world.     

Board Effectiveness and CEO Pay: Board Information Processing Capacity,Monitoring Complexity,and CEO Pay‐for‐Performance Sensitivity

We have developed an information processing theory of board effectiveness to examine board‐chief executive officers (CEOs) pay relations. We theorize that CEO pay reflects the information processing context of boards. Boards have limited information processing capacity and therefore prefer to use outcome‐based CEO pay when they have difficulty in processing information for monitoring their CEOs. Using a longitudinal sample of Standard and Poor's (S&P's) large‐, medium‐, and small‐cap manufacturing firms in the United States from 1998 through 2005, we found support for our theory. Large boards and boards in less complex monitoring contexts tend to link CEO pay less tightly to firm performance by providing less stock‐based incentives, and the tendency of large boards to decrease outcome‐based CEO pay is even greater when boards are not busy or when boards are in less complex monitoring contexts. © 2015 Wiley Periodicals, Inc.     

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.     

Meta‐Analytic Research in Management: Contemporary Approaches,Unresolved Controversies,and Rising Standards

Early meta‐analyses in management research sought primarily to resolve seemingly conflicting findings by estimating a relationship’s population‐level effect size. Since then, management researchers have adopted increasingly sophisticated approaches that permit new theorizing, testing and comparing sophisticated models, and identifying boundary conditions. We summarize three of these approaches – i.e., qualitative meta‐analysis (QMA), meta‐analytic structural equation modeling (MASEM), and meta‐analytic regression analysis (MARA) – along with the special issue papers that adopt each approach. We conclude by raising three unresolved controversies that we believe deserve more attention and by offering our thoughts about how to maximize a meta‐analytic study’s chances for publication and impact.     

Meta‐Analysis of Coefficient Alpha: A Reliability Generalization Study

Increasing precision of measurement is a goal of scientific advancement, but Nunnally's (1978) .70 benchmark for coefficient alpha (alpha) has remained the omnibus test for reliability for nearly 40 years. This likely arises due to there only being scattered empirical evidence of the degree to which the field has met or surpassed this standard. Using meta‐analytic techniques known as reliability generalization (RG), we cumulate alphas across 36 commonly used individual differences, attitudes, and behaviours from 1675 independent samples (N = 991,588). Our primary finding is that alphas almost always exceed .70 and generally fall above .80. In addition, we identified factors that moderate alpha including the specific measure used, the number of scale items, and the rater. The study provides baseline alphas that can be used for research planning and design; it also offers best practices for RG and notes the benefits of RG for understanding systematic fluctuations in reliability.     

A Process Perspective on Organizational Failure: A Qualitative Meta‐Analysis

An important stream of the organizational failure literature has proposed process models to describe how firms fail. Despite much progress, this stream is currently at a crossroads. Previous process models try to capture how failure unfolds in singular models that describe organizational failure as the result of either inertia or extremism or as a mixture of both. However, it remains unclear how these competing explanations are related and what underlying mechanisms explain why organizational failure processes unfold as they do. We address these issues by examining failure processes using a qualitative meta‐analysis research design. The qualitative meta‐analysis allows us to analyse and synthesize the wealth of previously published single‐case studies in order to develop process models of organizational failure. The most salient finding of our analysis is that failure processes converge around four distinct process archetypes, which we name imperialist, laggard, villain, and politicized. Each process archetype can be explained by the interplay of distinct rigidity and conflict mechanisms. Differentiating the four process archetypes and explaining the underlying mechanisms helps to resolve some contradictions in the previous failure process literature.     

Organizational Controls and Performance Outcomes: A Meta‐Analytic Assessment and Extension

Managing employees and external partners effectively has been a primary concern for organizations and their managers. Many studies have investigated the effectiveness of organizational controls in a wide variety of contexts. Using organizational controls literature that discriminates among outcome, behaviour, and clan control, this study synthesizes the research on the effectiveness of these controls. In particular, the study examines 23,839 organizational controls–performance relationships from 120 independent samples, and tests several new hypotheses using advanced meta‐analytic methods. The results indicate that outcome, behaviour, and clan controls generally enhance performance, with each control having a distinct performance effect. Our analysis also demonstrates that controls function as complements to one another. This finding indicates that one form of control increases the effectiveness of other forms of control. We also examine the organizational controls–performance relationships across various contexts, and our results show that they vary according to the type of task. The paper concludes with a discussion on the theoretical and managerial implications of these findings.     

Dynamic Capabilities and Organizational Performance: A Meta‐Analytic Evaluation and Extension

We move the dynamic capabilities view (DCV) forward in two important ways by meta‐analysing prior empirical studies. First, we evaluate the two core theoretical tenets of the DCV: (1) Dynamic capabilities are positively related to performance, and (2) this relationship is stronger in industries with higher levels of technological dynamism. We find support for the former (r_c = 0.296) but not for the latter, though results suggest the existence of moderators. Second, we theorize and demonstrate empirically that higher‐order dynamic capabilities are more strongly related to performance than lower‐order dynamic capabilities, lower‐order dynamic capabilities partially mediate the relationship between higher‐order dynamic capabilities and performance, and dynamic capabilities contribute more to performance in developing economies than in developed economies. These findings illustrate how the nature of the dynamic capability and the economic context in which it is utilized shape its value, thus offering a more nuanced conceptualization of the dynamic capabilities‐performance relationship.     

A meta‐analytic investigation of the relationship between HRM bundles and firm performance

Human resource management bundles consisting of multiple complementary practices are typically considered superior to individual best practices in influencing firm performance. This study investigates the relationship between three such bundles (empowerment, motivation, and skill‐enhancing) and business outcomes (retention, operating performance, financial performance, and overall performance ratings). A meta‐analysis of 239 effect sizes derived from 65 studies reveals that HRM bundles have significantly larger magnitudes of effects than their constituent individual practices, are positively related to business outcomes, and display effect sizes that are comparable to or larger than those of high‐performance work systems. These findings reaffirm the case for firm‐level investments in synergistic HRM combinations and highlight the importance of investing in complementary practices. © 2009 Wiley Periodicals, Inc.     

Innovation Offshoring,Institutional Context and Innovation Performance: A Meta‐Analysis

Innovation offshoring (IO) has become a widespread management practice. Yet, evidence on the performance implications is inconsistent, and scattered across disciplines and contexts. We argue that the benefits firms can derive from IO depend on the institutional environment at home. Drawing on recent work on institutional theory in international business, we explore institutions that facilitate reverse knowledge transfer and/or institutional arbitrage with respect to innovation‐related activities. The results of our meta‐analysis that synthesizes evidence from 48 samples show that IO is related positively to innovation performance. As predicted, this relationship is moderated by differences in the institutional environments across countries. Specifically, when national innovation systems are weak at home, IO appears to enable institutional arbitrage strategy whereas Confucian cultures enable more effective reverse knowledge transfer. However, contrary to our expectations, the beneficial effects of IO appear to have diminished over time.     

Illuminating the ‘Face’ of Justice: A Meta‐Analytic Examination of Leadership and Organizational Justice

A significant body of research has described effective leader behaviours and has connected these behaviours to positive employee outcomes. However, this research has yet to be systematically integrated with organizational justice research to describe how leader behaviours inform justice perceptions. Therefore, we conduct a meta‐analysis (k = 166, N = 46,034) to investigate how three types of leader behaviours (task, relational, and change) inform four dimensions of organizational justice (procedural, distributive, interpersonal, and informational) referenced to the leader and to the organization. Further, we examine the joint impact of leader behaviours and justice perceptions on social exchange quality (i.e., leader–member exchange), task performance, and job satisfaction. Our results suggest that leader behaviours differentially inform leader‐ and organization‐focused justice perceptions, and the joint effect of leader behaviours and justice perceptions offer more nuanced explanations for outcomes.     

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.     

Understanding variation in the relationship between environmental management practices and firm performance across studies: A meta‐analytic review

The relationship between environmental management practices and firm performance has continuously received much attention in academic research. As existing literature on the link of the two constructs is characterized by heterogeneous research characteristics and mixed empirical evidence, one interesting question arises: Do research characteristics affect the magnitude and direction of the relationship between environmental management practices and firm performance? Amassing a database of 92 studies, 199 effect sizes, and 72,258 firms, we examine this question by conducting a meta‐analysis. The characteristics investigated in this study include item number of performance measures, year of data collection, industry type, economic development, and Hofstede's five cultural dimensions. A meta‐regression reveals that environmental management practices are positively associated with firm performance and that the degree of this association depends on these contexts. Specifically, the environmental management practices–performance relationship increases with year of data collection, is stronger with multiple item measures, and is higher for firms in developed countries and in cultures characterized by high power distance, low individualism, low uncertainty avoidance, and low long‐term orientation.     

Managerial coaching and subordinates' workplace well‐being: A moderated mediation study

Taking a self‐categorisation perspective, we predict that managerial coaching affects subordinates' workplace well‐being through perceived insider status and that Chinese traditionality moderates this indirect effect. To test these hypotheses, we designed a three‐stage research method to collect data from 276 subordinates in a large state‐owned enterprise located in Shanghai, China. Results indicated that (a) managerial coaching was positively related to subordinates' workplace well‐being; (b) perceived insider status mediated the linkage between managerial coaching and subordinates' workplace well‐being; and (c) Chinese traditionality moderated the indirect relationship between managerial coaching and subordinates' workplace well‐being via perceived insider status, such that the indirect effect was stronger for subordinates with low rather than high Chinese traditionality. This study sheds new light on the intervening process (i.e., perceived insider status) that explains how managerial coaching influences subordinates' workplace well‐being. The findings also extend the current literature by adding a substantive moderator (i.e., Chinese traditionality) to explain when and why subordinates increase their well‐being when faced with managerial coaching.     

How Competitive Action Mediates the Resource Slack–Performance Relationship: A Meta‐Analytic Approach

The fungibility of organizational slack provides firms significant latitude in addressing both internal and market pressures. A vast literature suggests that slack influences firm performance; however, the empirical record is mixed, and the underlying mechanism linking slack to performance remains ambiguous. We address these issues by theoretically expanding the slack–performance model to include mediation. Specifically, we develop and test a model in which a firm’s competitive behaviours direct the utilization of slack toward the realization of firm performance. Our meta‐analytic‐based structural equation model supports partial mediation, showing that competitive behaviours provide some resolution to the conflicted understanding of how slack affects performance. Further, we provide value to the slack literature by consolidating the evidence for the effects of various types and forms of organizational slack. Beyond providing robustness to our theoretical model, doing so offers a more complete understanding of how operationalizations of slack and performance outcomes matter.     

Board Committees in Corporate Governance: A Cross‐Disciplinary Review and Agenda for the Future

The importance of board committees – specialized subgroups that exist to perform many of the board's most critical functions, such as setting executive compensation, identifying potential board members, and overseeing financial reporting – has grown over time due to increased legal requirements and greater complexity of the environment in which firms operate. This has resulted in a large body of work examining board committees across the accounting, finance, and management disciplines. However, this research has developed rather independently within each discipline, preventing scholars and practitioners from developing a comprehensive understanding of board committees. To address this issue, we conduct a comprehensive review of the literature that: 1) summarizes and synthesizes antecedents and outcomes associated with board committees in publicly‐traded firms in English common law countries; and 2) offers a critical analysis of existing research, providing recommendations for advancements and new directions in board committee research.     

CEO Succession Mechanisms,Organizational Context,and Performance: A Socio‐Emotional Wealth Perspective on Family‐Controlled Firms

This article extends the literature on CEO succession and financial performance by addressing corporate owners' mixed motives and desires to protect their interest in being in business. We draw on a Socio‐Emotional Wealth (SEW) perspective to investigate how the choice of one of three succession mechanisms – relay succession, ‘horse races’ among internal CEO candidates, and hiring from outside – may effectively balance trade‐offs between corporate owners' non‐financial SEW motives and the firm's financial performance. We find that implementing one of these succession mechanisms reduces the negative impact that typically characterizes CEO transitions in family firms. We also show that family presence on the board of directors offsets the benefits of having selected these balancing succession mechanisms, in either placing too much emphasis on SEW, or creating negative dynamics that make the chosen succession mechanisms less effective.     

Executive Pay Matters: Looking Beyond the CEO to Explore Implications of Pay Disparity on Non‐CEO Executive Turnover and Firm Performance

Using a longitudinal data set covering a span of 10 years, we investigate the impact of vertical and horizontal pay disparity on non‐CEO executive turnover and subsequent firm performance. Hypothesizing differential responses to pay disparity depending on a non‐CEO executive's responsibilities, we first categorize non‐CEO executives based on their job demands and their role in the organization (e.g., oversight, divisional). We then explore how pay disparity influences the relationship between executive category and turnover, and how the level of pay disparity impacts the relationship between turnover and firm performance. We find that executive category significantly impacts the likelihood of turnover, and also influences firm performance. Theoretical and practical implications are discussed. © 2015 Wiley Periodicals, Inc.     

Training and organisational performance: A meta‐analysis of temporal,institutional and organisational context moderators

Drawing on systems theory, we conducted a moderated meta‐analysis of the training and organisational performance relationship using 119 primary studies. We examined the moderating effects of quality versus quantity of training, time, institutional and organisational context factors in the relationship between training and organisational performance. Our findings reveal that training is positively and directly related to organisational performance with no statistically significant difference between measures of training quality and quantity. We found that the relationship was stronger over time and that country performance orientation and country labour cost moderate the training and organisational performance relationship. We found no evidence for the moderating effects of the three organisational context moderators we examined (i.e. industry sector, organisational size and technology intensity). Finally, our results reveal that training type (i.e. general or firm‐specific) does not moderate the training and organisational performance relationship.     

The Income Elasticity of Money Demand: A Meta‐Analysis of Empirical Results*

Abstract. In this paper, we use meta‐analytic methods to investigate possible sources for the large variation in empirical findings about the income elasticity of money demand. Our results suggest that the broadness of the monetary aggregate, the inclusion of wealth and the consideration of financial innovation exert a significant influence on estimated income elasticities. Furthermore, we find substantial cross‐country differences, in particular between the US and other countries. These differences can, to some extent, be explained by the macrofeconomic environment and the dissemination of payment cards.