Colliding Employer‐Employee Perspectives of Employee Turnover: Evidence from a Born‐Global Industry

Set in the context of internationalization of the global division of labor, this article provides a deeper exploration of qualitative themes of conflicting accounts of employees’ reasons to quit and managerial strategies to prevent employee turnover in six business process outsourcing firms operating in India. Such differences in cognition and action between the two constituencies suggest that the decision to quit is not a linear and rational process as highlighted in most extant models of employee turnover. Our findings suggest that employees are attached more to a place or people they work with rather than the organization per se. Intergenerational differences between Generation Y knowledge workers and Generation X managers and the ineffectiveness of espoused human resource practices suggest the presence of “push” human resource management (HRM) systems. Our findings have implications for employee turnover models, intergenerational theory and high‐commitment HRM, and practitioners. © 2015 Wiley Periodicals, Inc.     

Board Connections and Dividend Policy

We examine the role of firm board connectedness in shaping a firm's dividend policy. We show that firms with well-connected boards not only have a higher likelihood of paying dividends in the pooled sample of both dividend payers and non-payers but also pay more dividends in the sample of dividend payers, compared with those with poorly connected boards. Further analysis reveals that the relation between board connectedness and dividend-paying behaviour tends to be economically stronger in firms pre-identified to have more severe agency conflicts, suggesting that well-connected boards tend to use dividends to mitigate agency problems in these firms. These findings are robust to different measures of board connectedness, different dividend payout measures, alternative estimation methods, and tests that account for endogeneity.     

Do co-opted boards increase insider profitability?

Using a sample of U.S. firms over the period 1996–2014, this paper examines whether insider trading profitability increases with high board co-option. Indeed, we find that firms with a higher level of co-opted directors exhibit higher insider trading profitability, largely due to a lower level of managerial ability and analyst coverage. Co-opted boards are also unlikely to implement self-imposed insider trading restrictions, exacerbating this relationship. This positive association is mitigated by a higher level of external monitoring by institutional investors and if the CEO receives more performance-based incentives. Overall, co-opted directors demonstrate aligned interests with CEOs and corporate insiders rather than performing their role as monitors. As a result, a more co-opted board is positively associated with exploitative behaviour of insiders.     

A resource orchestration view of supply chain traceability and transparency bundles for competitive advantage

The literature has mostly examined supply chain (SC) traceability and SC transparency separately, ignoring the mutually constitutive relationship of these two related constructs. We draw on the resource orchestration theory and the causal complexity perspective to conceptualize and validate SC traceability and SC transparency as interrelated organizational capabilities that may mutually enhance or compensate each other for competitive advantage. We constructed an original sample from two sources to empirically test this conceptualization using fuzzy set qualitative comparative analysis (fsQCA). Our empirical results reveal that the ability of firms to leverage SC traceability for a high financial performance is contingent upon creating a transparency perception of SC with a wide range of stakeholders. Our results also identified the firm size and its international presence, as having a significant bearing on the ability of firms to leverage SC traceability and SC transparency capabilities for a competitive advantage.     

The transformation of national patents for high-technology exports: Moderating effects of national cultures

National culture as an informal institution influences the national absorptive capacity (NAC) measured in patents per capita in the upstream and entrepreneurial activity in the downstream. Does national culture moderate the link between NAC and high-technology exports? We explored this question in a comprehensive study design. Based on a panel of 101 countries over 21 years, first, we assessed the direct effect of NAC on high-technology exports in the baseline hypothesis. Then, we analysed the moderating role of national culture between the country’s NAC and high-technology exports. The results show several insights from the comparison between the literature and our evidence. (i) We proposed that power distance negatively moderates patent and high-tech exports; the results show a positive correlation of the interaction. (ii) We proposed that individualist culture positively moderates patent and high-technology exports; the results show a positive correlation of the interaction. (iii) We proposed that high masculinity has no moderating effects; the results show a positive interaction effect. (iv) We proposed that uncertainty avoidance negatively moderates the link between NAC and high-technology exports; the results show negative and significant moderation without the introduction of long-term orientation; however, it is non-significant after the introduction of long-term orientation. Last, (v) we proposed that long-term orientation positively moderates the link between NAC and high-technology exports; the results are positive and significant without uncertainty avoidance, and they are non-significant with uncertainty avoidance in the analysis. Uncertainty avoidance and long-term orientation neutralise each other’s effects. Based on these insights, we contribute to the literature in three ways. First, we address the issue of high-technology exports in international business at the national level and link it to the vertical transformation of national science in patents per capita. Second, we contribute to the institutional theory encompassing informal norms (culture) and formal rules (policy) in the flow of NAC to commercial performance. Third, we make several policy-related suggestions.     

Self-concept,individual characteristics,and counterfeit consumption: Evidence from an emerging market

The study draws on a sample of over 350 consumers from 10 department stores in an emerging market where counterfeit products are available in abundance and there is a huge demand for such goods. The findings reveal that interdependent and independent self traits significantly affect individual characteristics, that is, susceptibility to normative influence, readiness to take social risk, and status acquisition (SA), which in turn influences counterfeit purchase intention. It was discovered that such individual characteristics play a mediating effect on the self-concept—purchase intention relationship and that high degrees of interdependent self traits positively affect consumers' purchase intention. The study adds to the theory of reasoned action (TRA) by incorporating SA variables into the TRA framework and discovers their significant influence on purchase intention. Some novel insights surrounding counterfeit consumption in an emerging economy context are presented and several implications are extracted to help practitioners appeal to such individual characteristics for combating counterfeit consumption.     

The role of HRM practices in product development: Contextual ambidexterity in a US MNC’s subsidiary in India

Abstract

Recent studies have started exploring the linkages between organisational ambidexterity (OA) and HRM practices. OA is noted as a critical resource in achieving product, process, and business model innovations. By adopting an inductive case study of a US MNC subsidiary in India, we found empowerment-focused HRM practices were being used for exploration of new ideas and efficiency-focused HRM practices were adopted for the exploitation of the organisation’s existing strengths. Empowerment-focused HRM practices created a culture of openness and risk-taking, which facilitated the creation of an ambidextrous context. Further, ambidextrous learning was moderated by the adoption of a managerial/leadership style that focused on ‘mirroring competencies’ between the parent operation and its subsidiary. HRM practices were aimed at developing behaviours that valued the team-based co-development of graphic processor designs by means of a ‘parallel processing’ approach to product development. Additionally, the HRM practice of offering intrinsic employee rewards and both informal and formal training facilitated OA in delivering product innovation. This study represents a pioneering exploration of multiple levels of analysis (individual, functional, and organisational) for product innovation through the lenses of ambidexterity, innovation, and HRM practices. The implications for both theory and practice are also discussed.     

Legal Treatment of Abuse of Dominance in Indian Competition Law: Adopting an Effects-Based Approach

Review of Industrial Organization - Abuse of dominance investigations around the world are often form-based, primarily centred on the pre-requisite of dominance. This may lead to false positives or...     

Does microcredit increase borrowers’ savings? A fuzzy regression discontinuity design approach

Microcredit has expanded rapidly in recent years but its effect at the household level is still controversial. This paper uses a unique data-set collected from 69 villages in Bangladesh to estimate the effect of participation in microcredit programs on household savings. A regression discontinuity design (RDD) is used to identify the credit effect. To justify the validity of RDD, we test the discontinuities in the conditional density of the forcing variable (in our case, household land), as suggested by McCrary. We do not find any substantial evidence of manipulation of forcing variable at the threshold to invalidate the RDD. Our results show that access to credit increases savings of the borrowers.     

Capital structure and value of reported earnings: evidence from an emerging market

This article documents a nonlinear impact of capital structure on the value of reported earnings in India during the period between 2009 and 2015. Our results show that earnings reported by firms with moderate level of debt are more valuable than earnings reported by firms with low or high level of debt. Our results are robust across various proxies of capital structure and across various sub-samples. This article argues that moderate level of debt is associated with low-agency problems, while low and high level of debt is synonymous to high-agency problems. Differences in agency problems result in reported earnings that have very different levels of relevance.