Commitment before and after: An evaluation and reconceptualization of organizational commitment

A review of the organizational commitment literature has pointed out several advantages as well as some limitations of the approach advanced by Meyer and Allen (Meyer, P.J. and Allen, J.N. (1997). Commitment in the workplace: Theory, research, and application. Thousand Oaks, CA: Sage.). The advantages include good psychometric properties of the current scales, acceptable discriminant validity of the three dimensions, and research findings that showed the usefulness and acceptable content validity of the three-dimensional approach. Some of the limitations are limited predictive validity, conceptual ambiguity of continuance commitment, and concept redundancy between normative and affective commitment. This paper suggests a conceptualization that builds upon the strengths of the current approaches and minimizes their limitations. The proposed theory contends that organizational commitment is two-dimensional. One dimension is instrumental in nature and the second is affective. In addition, a sharp difference needs to be made between commitment propensity that develops before one's entry into the organization and commitment attitudes that develop after one's entry into the organization. The advantages of the suggested theory and its implications for the understanding of organizational commitment and future research on it are discussed.     

The Role of Industry Effects in Simultaneous Reversal and Momentum Patterns in One-Month Stock Returns

When stocks are ranked by returns in one month, the portfolio of loser stocks tends to outperform the portfolio of winner stocks in the subsequent month. Yet industry portfolios tend to display momentum. We develop a model of information diffusion among agents with constrained information processing ability that reconciles these well-documented phenomena. We test whether this model or the overreaction hypothesis is consistent with the data. Additionally, a trading strategy based on the model outperforms strategies based on overreaction and on industry momentum. The strategy produces abnormal returns while controlling for market–risk and the size, book value, January, momentum, and liquidity effects.     

Does the market for ideas influence the rate and direction of innovative activity? Evidence from the medical device industry

Prior work argues that the “market for ideas” supports an open system of innovation, allowing for efficient development of technology across firms. Although this literature has described important features of this market, how it influences the rate and direction of innovation remains an open question. We exploit an exogenous shock to a subset of U.S. medical device firms to study this question. We first document the breakdown in the market for ideas after a federal investigation made it more difficult for the leading orthopedic firms to work with physician‐inventors. We then present evidence of a dramatic decline in the rate of innovation for these firms. Further, a marked shift in direction occurs toward lower‐quality inventions and away from product categories where physician knowledge is critical. Copyright © 2014 John Wiley & Sons, Ltd.     

The Impact of Cross‐Listing on the Home Market's Information Environment and Stock Price Efficiency

We empirically examine changes in information asymmetry and informational efficiency of cross‐listed stocks in their home market around a cross‐listing in the United States. We estimate intraday market microstructure measures of information asymmetry and price efficiency, and find that a U.S. cross‐listing significantly improves the quality of a firm's information environment and stock price efficiency in the home market. This improvement is stronger for cross‐listings that take place after the adoption of Sarbanes‐Oxley Act. Our results demonstrate that stricter disclosure from a U.S. cross‐listing is beneficial, in line with the legal and reputational bonding hypotheses.     

The war against drug producers

This paper develops a model of a war against illegal drug producers. This war occurs on two fronts. First, to prevent the cultivation of crops the state engages the drug producers in conflict over the control of land. Second, to impede further the production and exportation of drugs the state attempts to eradicate crops and to interdict drug shipments. The model includes an interested outsider who uses both a stick and a carrot to strengthen the resolve of the state in its war against drug producers. We use numerical calibrations of the model to evaluate the effectiveness and efficiency of Plan Colombia. The authors wish to thank an anonymous referee, Michelle Garfinkel, Jean Hindriks, Carlos Esteban Posada, and Marc St-Pierre for helpful comments and suggestions, as well as seminar participants at Brown, Yale, the CEPR conference on Crime and Conflicts, Marseilles, October 2004, LACEA, San José, November 2004, the AEA meetings, Philadelphia, January 2005, the ESWC, London, August 2005, and Banco de la República. Herschel Grossman died on October 9, 2004 in Marseilles during a conference where we were presenting this paper.     

Learning to lead: Segmentation of attendees to a Christian leadership conference

Christian leadership conferences are religious events in which attendees can improve their leadership skills in their current or potential area of ministry. Despite considerable anecdotal evidence, there is limited empirical research that has determined why attendees are motivated to attend these events and if they can be differentiated based on their personal characteristics and year of event attendance. To address these research gaps, 335 questionnaires were collected at an Australian Christian leadership conference during the 2013 and 2014 events. To better equip me in my current leadership role and to feel encouraged to learn more about God were the two dominant motivations identified by respondents, regardless of the year of data collection. Motivational differences also existed based on respondents' personal characteristics. This study has provided theoretical and practical implications for religious nonprofit organizations relating to these issues and provides future research opportunities.     

The Relationship between Individualism,Collectivism, the Perception of Justice,Demographic Characteristics and Organisational Citizenship Behaviour

This study examines the relationship between individualism, collectivism, the perception of justice, and demographic variables and organisational citizenship behaviour. The research design is based on survey data acquired from questionnaires distributed to 241 certified nurses and their superiors in 20 units of one of the hospitals in northern Israel. The findings showed that collectivist employees tended to display OCB more frequently than individualistic employees. Positive relationships were found between justice variables and OCB. Of the demographic variables, married employees tended to display OCB more than unmarried workers. In addition, more experienced employees exhibited fewer organisational citizenship behaviours than did their less experienced colleagues. The findings are discussed in terms of their theoretical and practical implications.     

The Influence of Board Monitoring,Executive Incentives,and Corporate Strategy on Employment Stability

This study examines the effects of corporate governance and diversification strategy on organizational employment stability. Calls for reform in the governance of public corporations have led to the adoption of practices that render senior executives more accountable to shareholders. However, the extant corporate governance literature suggests that mechanisms which make managers more accountable to shareholders might introduce a short-term bias to top managers’ decision-making. Arguing that employment stability reflects a long-term decision-making orientation, results of this study show that firms with boards comprised of a greater proportion of independent, or “outside,” directors have lower levels of aggregate employment stability. In contrast, findings indicate that more diversified firms tend to have higher levels of aggregate employment stability.