Academy of Management Annual Meeting Proceedings

Online ISSN: 2151-6561
Print ISSN: 0065-0668
Publications
Why do some countries adopt market-oriented reforms such as deregulation, privatization and liberalization of competition in their infrastructure industries while others do not? Why did the pace of adoption accelerate in the 1990s? Building on neo-institutional theory in sociology, we argue that the domestic adoption of market-oriented reforms is strongly influenced by international pressures of coercion and emulation. We find robust support for these arguments with an event-history analysis of the determinants of reform in the telecommunications and electricity sectors of as many as 205 countries and territories between 1977 and 1999. Our results also suggest that the coercive effect of multilateral lending from the IMF, the World Bank or Regional Development Banks is increasing over time, a finding that is consistent with anecdotal evidence that multilateral organizations have broadened the scope of the “conditionality” terms specifying market-oriented reforms imposed on borrowing countries. We discuss the possibility that, by pressuring countries into policy reform, cross-national coercion and emulation may not produce ideal outcomes.
 
Brockner and Higgins (Brockner, J., Higgins, E. T. 2001. Regulatory focus theory: Implications for the study of emotions at work. Organizational Behavior & Human Decision Processes, 86(1), 35–66.) suggest that a leader's behavior may be perceived as an organizational endorsement of promotion-focused or prevention-focused concerns and that this perception will influence employee behavior by eliciting a congruent state of regulatory focus. We tested this hypothesis using matched pairs of leaders and employees from a Chinese firm and found that employee creativity is positively associated with the promotion focus of the supervisor's behavior. Consequently, through their actions, promotion-focused leaders may increase the likelihood of entrepreneurial action in their firms by eliciting a promotion-focused state of eagerness from their employees.
 
Work experience abroad can be valuable for developing global competencies that promote organizational effectiveness and individual career success. However, the literature has taken a mostly organizational perspective, with little attention about what individuals can self-initiate to advance their international career and competencies development. Especially lacking is research on preparatory activities and career strategies that individuals may select leading to significant foreign work experience. Based on interviews with 48 American expatriates in five major cities in East Asia, this study presents a illuminating taxonomy of “pre-international” self-initiating career path strategies and activities for gaining valuable international business experience for building global competencies.
 
Summary Academic interest in absorptive capacity (ACAP), which has grown rapidly over the past two decades, has focused on ACAP's effect on organizational learning, knowledge sharing, innovation, capability building, and firm performance. Even though Cohen and Levinthal's work (1990) highlights the multidimensionality of ACAP, researchers have measured it as a uni-dimensional construct, often using a firm's R&D spending intensity as a proxy for this construct. This practice raises questions about the veracity of the claims made in the literature about the nature and contributions of ACAP. The present study develops and validates a multidimensional measure of ACAP, building on relevant prior literature, a series of pre-tests, and two large survey-based studies of German companies.
 
Policy makers are increasingly recognizing the catalytic role of academics’ spin-off companies in a national economy, which derives from their innovativeness that result in new value generation, and job creation. Although research on academics’ spin-off companies has been increasing, knowledge gaps exist as to the specific determinants and processes that characterize the emergence of academics’ entrepreneurial intentions that lead them to spin off companies. This research aims to fill this gap. Drawing from psychological and entrepreneurship research on intentionality, the authors propose a conceptual model of academics’ entrepreneurial intentions. They empirically test the model using structural equation modeling and a robust data set collected in two European academic settings to guide future research on this important topic.
 
In this study, we investigate the role of experience diversity on learning by U.S. airlines. Do firms learn more from diverse of homogeneous accident experiences? Existing literature provides conflicting answers to this question, with some theories suggesting that heterogeneous experiences are best because variance in outcomes is necessary to learn. Other theories suggest that homogeneity is best for learning, because homogeneous experience increase problem salience and thus attention and attempts to solve the problem. Using data on all accidents and incidents experienced by U.S. commercial airline from 1983-1997, we measure learning by a reduction in airline accident/incident rates, controlling for many factors related to accidents and incidents. Our results show whether heterogeneous or homogeneous experience facilitates learning varies according to whether the airline in a specialist or generalist. Only specialists learn from their own heterogeneous accident experience, and prior error heterogeneity decreases their subsequent accident rate. Generalists learn from outside factors such as the experience of others and general improvements in technology. These results suggest a theory of learning across organizations forms: complex forms benefit from simple information, and simple forms benefit from complex information. The implications of our study for learning theories and work on organization errors are discussed.
 
This study creates a framework for analysing organizational identity change and examines the process in the context of a global accounting firm's acquisition of a UK mid-market accounting practice. It identifies the parallel processes which facilitate organizational identity change: identity regulation on the part of senior management and de- and re-identification on the part of organizational members. The study explores how changes in organizational identity are inextricably connected to organizational members' changing conceptualisations of professional identity.
 
Leadership scholars have called for additional research on leadership skill requirements and how those requirements vary by organizational level. In this study, leadership skill requirements are conceptualized as being layered (strata) and segmented (plex), and are thus described using a strataplex. Based on previous conceptualizations, this study proposes a model made up of four categories of leadership skill requirements: Cognitive skills, Interpersonal skills, Business skills, and Strategic skills. The model is then tested in a sample of approximately 1000 junior, midlevel, and senior managers, comprising a full career track in the organization. Findings support the “plex” element of the model through the emergence of four leadership skill requirement categories. Findings also support the “strata” portion of the model in that different categories of leadership skill requirements emerge at different organizational levels, and that jobs at higher levels of the organization require higher levels of all leadership skills. In addition, although certain Cognitive skill requirements are important across organizational levels, certain Strategic skill requirements only fully emerge at the highest levels in the organization. Thus a strataplex proved to be a valuable tool for conceptualizing leadership skill requirements across organizational levels.
 
Our empirical study of an interactive marketing company explores how post-industrial work is constituted through the ongoing daily activities of organizational actors drawing on diverse backgrounds to accomplish project-based work. These actors engage in four types of work practices: negotiating agreements, concurrent designing and building, coordinating across boundaries within the organization, and collaborating with clients. As individuals interact across their occupational differences, new ways of working are both enabled and constrained, resulting in intended and unintended consequences for both individuals and organizations.
 
Two acutely stressful job events were compared to routine work and to a holiday vacation at home among 29 workers measured four times. The critical job events (CJEs) were the shutdown of a computer and its reopening two weeks later. The CJEs were perceived as more stressful, and aroused greater psychological and physiological strain, than the follow-up period of routine work which served to benchmark chronic job stress. The vacation respite that punctuated the two CJEs was perceived as less stressful than work, but strain was as high during vacation as during work. The unabated strain during the vacation was explained in terms of spillover and vacation stress. The discussion emphasizes the strengthening of causal inference achieved by including occasions of work and nonwork in longitudinal research on the effects of naturally occurring CJEs.
 
The present work reports on the effects of several organizational and techno-economic factors which tend to facilitate or inhibit the successful transfer and commercial utilization of technology generated outside the organizational setting of a potential industrial user. Innovations were regarded as either product cases or process cases, and successful adoption of these innovations was related to systematic data on the relation between innovator and user and on channels of communication.
 
We focus on one of the core competitive capabilities of modern firms: the ability to deliver successful innovations in a globalized environment. Companies literally find themselves confronted with a world of ideas. The challenge remains to decide which impulses should be on top of the list and which at the bottom. Given limited resources and substantial investments, betting on the wrong horse can be risky and costly. Theoretically integrated in capability based view of the firm we investigate firms? capabilities to assimilate, identify and prioritize valuable knowledge across national, cultural and social borders - a competence we call global sensing. We establish an analytical framework to examine whether global sensing activities generate competitive advantage. Consequently, we develop an empirical, multistage evaluation strategy. This strategy rests on a matching approach for a recent, broad sample of almost 1,700 German companies from both services and manufacturing. We find the strongest and most consistent support for global sensing as a strategic enabler for technological leadership. Apart from this strategic advantage we observe that foreign external sources of innovation are generally not superior to domestic ones. --
 
The possibility of measuring and comparing sustainability performance is generally taken for granted in management studies and practices based on the evaluation, selection and ranking of the supposedly best companies in the field. The purpose of this article is to question this basic assumption by analyzing the comparability of sustainability performance through a systematic review of 12 mining company reports using Global Reporting Initiative (GRI) guidelines. The analysis of information based on 92 GRI indicators raises serious questions concerning the hypothesis of measurability and comparability of sustainability performance, drawing attention to the main reasons that make it very difficult if not impossible to establish a credible and justifiable classification among organizations. La possibilité de mesurer et de comparer les performances de développement durable est généralement prise pour acquise tant dans les recherches en gestion que dans les pratiques de classement ou de sélection des meilleures entreprises dans ce domaine. L’objectif de cet article est d’examiner cette hypothèse de mesurabilité et de comparabilité des performances de développement durable à partir de l’étude systématique de 12 rapports d’entreprises minières utilisant le même guideline du Global Reporting Initiative (GRI). L’analyse des informations relatives aux 92 indicateurs du GRI utilisés remet en cause l’hypothèse de comparabilité des performances de développement durable en mettant en lumière les principales raisons qui rendent pratiquement impossible l’établissement d’un classement crédible et justifiable entre les entreprises.
 
Effects of generic manipulation strategies
We classify the strategies by which management consultancies can create and sustain the institutional capital that makes it possible for them to extract competitive resources from their institutional context. Using examples from the German consulting industry, we show how localized competitive actions can enhance both individual firms’ positions, and also strengthen the collective institutional capital of the consulting industry thus legitimizing consulting services in broader sectors of society and facilitating access to requisite resources. Our findings counter the image of institutional entrepreneurship as individualistic, “heroic” action. We demonstrate how distributed, embedded actors can collectively shape the institutional context from within to enhance their institutional capital.
 
Constellation membership and performance: regression results 
The article examines how membership in competing constellations affects the performance of firms in the global airline industry. Constellations are alliances among multiple autonomous firms, such that these groups compete against each other in the same or similar industries for both clients and members. While constellation-specific attributes determine the total value generated by the group, member-specific attributes determine how that value is distributed among members. A firm can benefit from joining a constellation when it can capture positive externalities emanating from the presence of other firms in the group. The carriers in the sample represent about 81 percent of the total world passenger traffic in 2000 and 54 distinct countries. In the case of explicit constellations, random-effects estimates indicate that an increase in the size of the aggregated customer base of the constellation significantly increases members' performance. By contrast, when considering alternative implicit constellations, one should carefully consider the relative position of the firm within its group, such as its centrality based on bilateral ties to several other members, which critically define the firm's ability to reap superior membership benefits.
 
La finalité de notre article est de comprendre la nature et la diversité des relations intervenant dans le processus de diffusion interorganisationnelle des connaissances. Notre questionnement porte dans un premier temps sur la nature des dimensions de ces relations et dans un second temps sur leur diversité. L’intérêt est double : préciser et compléter la littérature sur les dimensions de ces relations d’une part et comprendre la diversité des relations à considérer dans le processus de diffusion des connaissances et l’influence de cette diversité sur les dimensions mises en exergue d’autre part. La synthèse de la littérature sur la diffusion des connaissances révèle deux conceptions épistémologiques distinctes : la diffusion peut être perçue comme le « déplacement » d’une connaissance statique et désincarnée ou bien comme la « transmission » d’une connaissance dynamique et énactée. Le fondement commun à ces deux perspectives est mis en exergue : il s’agit de la relation interindividuelle (ou interaction), nécessaire à toute diffusion des connaissances. Notre approche se fonde sur la compréhension des relations interindividuelles au sein d’un support particulier de diffusion des connaissances : les communautés de pratiques interorganisationnelles au sein du groupe EDF. La démarche adoptée tente d’éviter l’écueil de la réification de l’organisation en s’intéressant aux interactions entre les individus. Notre étude de cas, caractérisée par une triangulation et une collecte des données en deux phases sur une période de 9 mois, se base sur l’étude de cinq communautés de pratiques. Les travaux sur les communautés de pratiques révèlent l’existence de trois dimensions majeures dans la relation : es dimensions affective, identitaire et fonctionnelle. Nos résultats se concentrent autour de deux points majeurs. En premier lieu, nous confirmons les trois dimensions proposées dans la littérature,
 
The innovation rate for different levels of direct and indirect ties – exploitation  
Descriptive statistics and correlation matrix (continued) 
The innovation rate for different levels of direct and indirect ties – exploration  
Although the literature converges regarding the reasons why and how networks of technology alliances are formed, there is still lack of agreement on what constitutes an optimal network structure, once it has been formed. The aim of this paper is to fill this void and to determine what constitutes an optimal network structure for exploration and exploitation within the context of technological innovation. We differentiate among a firm's direct ties, indirect ties and degree of redundancy and analyze their role in the pharmaceutical, chemical and automotive industry. Regarding the role of direct ties, in combination with indirect ties, we find two alternative alliance network structures that are effective for both exploitation and exploration. We also find that redundancy in a firm's alliance network has a positive effect on exploitation. This is not the case for exploration, however, which seems to reveal a new insight into the role of redundancy when firms explore new technological fields. A final point is that our findings remain largely invariant across the three industries, enhancing the generalisability of our results.
 
Alliances with established organizations provide young firms with resources necessary for survival. We build on recent organizational research examining the effect of upper echelons on attracting powerful intermediaries to understand how young biotechnology firms establish alliances with established organizations. Drawing upon the concept of homophily, we test hypotheses regarding the extent to which young firms and partners match along specific homophily dimensions. Our findings from an event-history analysis of 3,200 career histories of managers who took biotechnology firms public between 1979 and 1996 show that alliance formation is related to status homophily and role-based homophily between young and established organizations.
 
This paper aims to improve our understanding of how exploitative and explorative learning of firms is enhanced through their social capital. Both types of learning differ considerably from each other and we argue that the distinction between them may be an important contingency factor in explaining the value of direct, indirect and (non-)redundant technology-based alliances. In particular we argue that, since companies have to find a balance between explorative and exploitative learning (March, 1991), redundant and non-redundant links play a complementary role in inter-organizational learning processes: redundant information improves exploitative learning, non-redundant information enhances a firm's explorative learning. The empirical results support the predictions about the contingency of the value of redundant information for both types of learning. Direct and indirect ties improve both types of learning but the impact on explorative learning is much larger. We find that direct ties have a moderating effect on indirect ties only in the case of exploitative learning. Firm size and technological distance between a firm's partners also have a differential effect on exploitative and exploitative learning.
 
Ambidextrous organizations balance exploration and exploitation but we know little about how it works at a fined-grained level. Following an in-depth case study approach, we outlined the tensions between the entity in charge of radical innovations and those in charge of the established products and focused on the integration mechanisms through which the firm outcomes these tensions. We suggest that integration takes place on a multilevel basis. We identified four types of integration mechanisms: permanent cross-divisional working groups, ad hoc cross-divisional committee meetings at a high hierarchical level, ambidextrous individuals and exploration of transversal subjects by a high status actor.
 
Electronic auctions have rapidly increased in popularity, but the consequences of switching to an electronic auction are unclear. In part this is because multiple changes occur at the same time so one can only observe the combined effect of these changes and not the effect of each separate change. For instance, electronic bidders face lower transaction costs, but also have less information about product quality and about the state of the market such as the number of bidders. In this paper, we report a study of bidding behavior at a large Dutch flower auction in which we are able to separate some of these effects. We compare electronic bidders with traditional bidders and when correcting for quality differences and seasonal effects, we find that they to bid lower on average than traditional buyers, as predicted by Bakos (1991, 1997). The electronic bidders were divided in two subgroups, internal bidders and external bidders. The external bidders had less product quality information and market state information than the internal bidders. This led the external bidders to not only bid significantly higher than the internal bidders, but in fact as high as the traditional bidders. Both these effects run counter to theoretical predictions and some possible alternative explanations are offered. In general, it highlights the importance of focusing the information flows that occur in a market.
 
An Interactive Decision System (AIDS) is described as a computer-based technique to rationalize the judgment process. This technique is intended to allow a typical manager to make decisions with more complete use of information available and fewer loose ends than is usually the case. It has been derived from the information processing routines used by Kepner & Tregoe (1965) in their decision training programs.A complete session with AIDS using a decision about nepotism is included as an example. Preliminary testing of AIDS is described.
 
Because of the wide acclaim received by the Malcolm Baldrige Award, it has served as a model for national quality awards by many countries throughout the world. Some countries have adopted both the MBNQA criteria and weights, while others have adapted the criteria categories or weights somewhat. The relevance of this conceptual framework across national cultures has yet to be established, despite its use as the foundation for numerous national quality awards. This study uses Hofstede's dimensions of national culture to examine whether the theoretical constructs underlying the Baldrige criteria are relevant across national cultures. Correlation analysis, stepwise regression and analysis of variance are used to analyze hypotheses in manufacturing plants in the U.S., Japan, Germany, Italy and England. There were many interactions between dimensions of national culture and the Baldrige constructs advanced in this study. The findings indicate that national culture plays a strong role in the effectiveness of the Baldrige constructs, with the exception of customer and market focus. The findings are interpreted in light of the need for countries to develop awards and quality initiatives tailored to their national cultures.
 
Includes bibliographical references. [Supported] under a grant from the W.E. Upjon Foundation for Employment Relations. Joel Cutcher-Gershenfeld, Robert B. McKersie, Richard Walton.
 
This study examines the role of national culture on an issue which is central to competitive strategy: whether to maintain flexibility or commit to a strategic direction. We consider that equity investments in foreign partners may be initiated as the first step in a sequential acquisition process. Applying a competing hazard model to a sample of 168 joint ventures and minority equity collaborations in the biotechnology industry, we find that cultural characteristics have some bearing on a firm's willingness to commit through partner acquisition or partnership dissolution, and its preference for flexibility embodied in maintaining an equity collaboration.
 
An emerging "bonding hypothesis" holds that a firm's geographic domicile may not determine its corporate governance destiny. Firms from countries with weaker corporate governance regimes can internationalize their legal (but not necessarily operational) presence by cross-listing their securities on overseas financial markets. They can "bond" with legal systems and enforcement policies in foreign corporate governance regimes providing stronger investor protection. Cross-listing to bond increases firm value by decreasing corporate misconduct, broadening the investor base, and lowering the cost of capital. We document evidence of cross-listing to bond with stronger legal systems and rule of law by more than 700 firms from 23 emerging-market countries cross-listing their securities on US financial markets from 1996-2002. We find that: 1) US cross-listing levels are lower for firms from Common Law countries providing stronger investor protection, but only in Common Law countries with weaker rule of law; and 2) US cross-listing levels are higher for firms from Civil Law countries providing weaker investor protection, but only in Civil Law countries with stronger rule of law. Emerging-market firms exhibit behavior consistent with bonding hypothesis considerations and cross-list as a commitment to a more rigorous corporate governance regime, but the behavior is contingent and depends on examination of both legal system and rule of law effects individually and in interaction. Our empirical results highlight the importance of broadening investigating of firm internationalization to consider legal dimensions. Firms have discretion to choose foreign corporate governance regimes with less or no regard to where their operations are located.
 
This paper analyzes how participants' preferred conceptions of their selves are disciplined by the organizationally-based discursive and material resources on which they draw. Our paper is principally an in-depth case study of the subjectivities of men who were serving, or who had served, in an elite military unit - the Britis Parachute Regiment. In examining issues of agency and control in identity matters we employ literature on subjectivity, the discursive construction of identity, the self as a project, and identity regulation. There is a dearth of research in management studies on military institutions, and one important element of the research contribution of this paper is to explore issues of subjectivity and identity regulation in these underexplored work organizations. Two aspects of our case are particularly highlighted. First, we argue that soldiers' evolving self-conceptions were disciplined not (just) by anxieties but by understandings of themselves as professionally tough, and their continuous aspiration to be more authentic paratroopers. Second, rather than focus on how those who were hierarchically privileged sought to manipulate discursive resources for their own ends, we examine a range of paratroopers, to illustrate how all (officers and enlisted men) were subject to, and constituted by, the material and discursive practices of the Regiment.
 
Learning through networks has been considered as an important research topic for several years now. Technological learning is more and more based on a combination of internal and external learning and firms need to develop both technological and social capital for that purpose. This paper analyses the relationship between both types of capital and their impact on the technological performance of companies in high-tech industries. We claim and find empirical evidence for decreasing marginal returns on social capital. Technological capital and social capital mutually reinforce each other's effect on the rate of innovation for companies with small patent and alliance portfolios. However, when the patent portfolio and network of alliances are extensive, companies risk to over-invest since optimal levels of social capital become smaller at higher levels of technological capital and the marginal benefits of investing in technological capital decreases the higher the levels of social capital. Finally, we find empirical evidence that companies that explore novel and pioneering technologies have higher levels of innovation performance in subsequent years than companies that solely invest in incremental innovations.
 
We extend the well-known occupational choice model of entrepreneurship by analyzing the mode of entry. Individuals can become entrepreneurs by taking over established businesses or starting up new ventures from scratch. We argue that the new venture creation mode is associated with higher levels of schooling whereas managerial experience, new venture start-up capital requirements and industry level risk promote the takeover mode. A sample of data on entrepreneurs from The Netherlands provides broad support for these hypotheses, and also bears out a prediction that entrepreneurs whose parents run a family firm tend to invest the least in schooling. We go on to discuss the implications for researchers, entrepreneurs and public policy makers.
 
Using a longitudinally tracked sample of 133 full-time bank tellers from a large bank, this study tested the generalizability of a career commitment measure and its impact on emplyee turnover. The results indicated that career commitment could be reliably operationalized and was distinct from job involvement and organizational commitment. Additional evidence for the convergent and discriminant validity of career commitment was also found. Career commitment was found to be significantly negatively related to turnover; however, this relationship was mediated by career withdrawal cognitions. Findings are discussed in terms of identifying the threshold level for operationalizing career commitment and the need for future research on career change.
 
The literature on organizational factors that are relevant to gender differences in career development is characterized by conceptual complexity and a lack of integration among research studies, each of which examines a different single facet of the problem. In this study, the methodology of facet analysis is applied to the empirical literature on moderators of such gender differences, clarifying and organizing this complexity. Six facets pertaining to situational and individual variables are required to classify the existing empirical research to organization moderators of gender differences. The implications of the facet classification for the study of females' career development are discussed and hypotheses for future research are provided.
 
Study variables and correlations 
Hierarchical regression analysis predicting OVRFC, COGRFC, EMORFC and INTRFC
Quantitative measures of importance for sets of variables
The aim of this inquiry was to explore the relationships between four psychological change climate dimensions (trust in top management, history of change, participation in decision making, and quality of change communication) and readiness for change. By means of a large scale survey administered in 56 Flemish public and private sector organizations, we collected in total 1,559 responses. These data were used to test the hypotheses about the role of context (i.e. trust in top management and history of change) and process factors of change (i.e. participation in decision making and quality of change communication) in engendering readiness for change. In general the results of the hierarchical regression analyses supported the four hypotheses. This implies that trust in top management, a positively perceived change history, participation in decision making and excellent change communication, have positive correlations with readiness for change. Furthermore, different patterns are observed with respect to the relative contribution of process and context factors in explaining the overall readiness for change and the three sub dimensions (i.e. emotion, cognition and intention). Despite these differences, a major conclusion is that the perceived change process and change context are salient antecedents of people’s attitude towards change. This study contributes to the literature by looking at the combined effects and relative contributions of change communication, participation in decision making, trust in top management and history of change on readiness for change. In addition, readiness for change is measured as a multidimensional construct comprised of an emotional, cognitive and intentional component, whereas previous inquiries considered it as a one-dimensional construct.
 
This is an attempt to test the following causal chain of relationships: →support←goals→performance→success→self-image→involvement→future goals as hypothesized in Hall's (Organizational Behavior and Human Performance, 1971, 6, 50–76) model of the development of work involvement. It was further hypothesized that there would be more evidence for the existence of this “success cycle” in an organization with a climate of high support and feedback than in an organization with lower levels of support and feedback. Data were collected near the beginning and end of the school year in two primary schools and analyzed with correlations and path analysis. The hypotheses received moderate support. As expected, more evidence for the success cycle was found in the high-support school. In the high-support organization, the person's own goals correlated with success, while in the lower-support school, the person's self-image was the main correlate of success.
 
Using longitudinal data (N = 220), we examined the contribution of perceived organizational support and four mindsets of organizational commitment (affective, normative, perceived sacrifice associated with leaving and perceived lack of alternatives) to employee psychological well-being. In order to assess the contribution of support and commitment independently from workplace stressors, we controlled for the effects of role ambiguity, role conflict and role overload. Analyses showed affective organizational commitment to mediate a positive relationship between perceived organizational support and well-being. In addition, perceived organizational support negatively related to perceived lack of employment alternatives which, in turn, was negatively related to well-being. Normative commitment and perceived sacrifice associated with leaving were unrelated to well-being. The implications of these findings are discussed under the lenses of social exchange and conservation of resources theories.
 
This study examined how participation in open innovation communities influences the innovative and financial performance of firms commercializing open source software. Using an original dataset of open source companies in the Netherlands, I found that the community participation–performance relationship is curvilinear. In addition, results indicate that extensive technical participation in open source projects is more strongly related to performance for firms that also engage in social (“offline”) community activities, for companies of larger size, and for firms with high R&D intensities. Overall, this research refines our understanding of the boundary conditions under which engagement in community-based innovation yields private returns to commercial actors.
 
Variable Definitions
Summary Statistics and Correlations a 
Impact of Exit on Citations to an Average Patent  
Results of Negative Binomial Estimation of Citations Received before and after Exit a
Tests of Homogeneity of Firm and Patent Characteristics 
The innovative knowledge created by firms that ultimately exit their industries represents a source of technology that existing firms may build on. However, no empirical work has examined if such knowledge dies with an innovating firm or if significant diffusion of knowledge occurs even after a firm exits an industry. We base our theoretical predictions about the differing effects of firm exit on private and public knowledge and discuss implications for interfirm knowledge transfer. Using the disk drive industry as our empirical setting, we investigated the main and moderating effects of firm exit on the rate of knowledge diffusion to other firms. Our findings are consistent with prior work highlighting the importance of location and employee mobility in knowledge transfer. We also found evidence that the ability to use a firm as a template plays a critical role in successfully replicating its knowledge. Absent this template, knowledge "stickiness" reduces knowledge diffusion.
 
This paper investigates the development of university spinout companies (USOs). Employing a case-based research method, our study found that there are two important elements in their development. First, USOs go through a number of distinct phases of activity in their development. Each venture must pass through the previous phase in order to progress to the next one but each phase involves an iterative, non-linear process of development in which there may be a need to revisit some of the earlier decisions and activities. Second, at the interstices between the different phases of development we found that ventures face “critical junctures” in terms of the resources and capabilities they need to acquire to progress to the next phase. The different phases are critical as these ventures cannot develop into the next phase without overcoming each of the junctures. We identify four different critical junctures that spinout companies need to overcome if they are to succeed: opportunity recognition, entrepreneurial commitment, credibility and sustainability.
 
The rise in executive compensation has triggered a great amount of public controversy and academic research. Critics have referred to the salaries paid to managers as 'pay without performance', while defenders have countered that the large salaries can be explained by a 'war for talents'. This research tests whether a war for talent provides an explanation. The rise in executive compensation in recent years is explained by the assumption that, over the past decades, general managerial skills have become more important relative to firm-specific knowledge for the production of managers. A shift toward transferable managerial skills requires higher compensation, particularly in large firms, to attract and retain managerial talents. Relying on an internationalized and deregulated managerial labor market, i.e. the Swiss banking sector, the empirical findings confirm that a shift toward transferable managerial skills in large firms is indeed an explanation for the rise in executive compensation. However, the shift towards transferable managerial skills in large firms does not improve firm performance, giving no supporting evidence for a war for talent. It is discussed how transferable managerial skills may used to legitimize higher compensation at the top, e.g. by promulgating definitions of talent in elite labour markets.
 
In recent years, firms have increasingly contributed to and been confronted with a patent landscape characterized by numerous but marginal inventions, overlapping claims and patent fences. Literature suggests that both the fragmentation of ownership and the threat of a firm's patent applications being blocked by competitors' patents lead to increased patenting and inlicensing activity. In this paper, we investigate the effect of expected blocking on firms' engagement in in- and out-licensing. Based on a sample of more than 400 German manufacturing firms our results show that firms engage in in- and out-licensing if technology competition increases which is in line with the argument that licensing can mitigate hold-up problems in technology markets. --
 
Culture as a consequence is a neglected topic. Addressing this, we explore what factors are related to and potentially shape culture, what explains cultural variations within countries, and what the relationship is between cultural values at the individual and national levels. To answer these questions, we use a multi-level multivariate meta-analysis of 508 studies. The findings indicate that national and individual cultural values may be determined by the micro characteristics of age, gender, education, and socio-economic status as well as the macro characteristics of wealth and freedom. This provides a basis for explaining cultural change, both at the individual and national levels. Also, up to 90% of the variance in cultural values is found to reside within countries, stressing that national averages poorly represent specific individuals.
 
Ideas that could enable organizations to improve their operating processes often come from front-line workers who voice concerns and share ideas about how to solve problems. Our study is among the first to develop and empirically test theory about how specific management practices can encourage employees to speak up about problems and to offer suggestions for solving them. We hypothesize that employees are more likely to speak up and offer solutions when organizations launch information campaigns to promote process improvement and when managers engage in process-improvement activities themselves. We test our hypotheses in the health-care context, in which problems are frequent and many organizations use incident-reporting systems to encourage employees to communicate about the operational problems they witness. Using data on nearly 7,500 reported incidents, we find that information campaigns encouraging process improvement promote both speaking up and offering solutions, while managerial engagement in process improvement promotes the latter. Our findings suggest that particular management practices can influence front-line workers' decisions about whether to speak up and that direct managerial engagement can result in their doing so constructively.
 
The paper examines the extent to which multinational corporations (MNCs) whose staffing policies approach the genuine multinational model are free of the dysfunctions found by the authors in earlier studies of ethnocentric MNCs. The findings are based on comparative research in 51 MNCs, and intensive diagnostic studies of seven subsidiaries of MNCs operating and headquartered in four continents. The findings may be summed up as follows: (1) certain, but very few, morale problems have indeed been eliminated; (2) others are still present; (3) others are still present and their effect has intensified; and (4) new problems have appeared which are unique to the staffing policy approximating to the genuine multinational model. These findings shed new light on several of the assumptions underlying this model. The general conclusion is that each prevalent type of staffing policy has several sources of morale problems--some inherent in its uniqueness, and others shared by the alternative staffing policies--irrespective of the personal qualifications of the managers. Therefore, it is unrealistic to expect that a change toward the genuine multinational model would solve the basic morale problems prevalent in the dominant type of MNCs.
 
This study examined the effects of demographic factors (gender, age), culture, and economic conditions on the perceived appropriateness and likelihood of using five categories of negotiation behavior by respondents from nine countries drawn from North America, South America, Europe, and Asia. The results indicate that gender and age effects reported in prior studies of North American samples also were present across this broader array of countries. In addition, each of Hofstede's cultural dimensions along with one economic factor (GDP per capita) predicted variance in perceived appropriateness or likely use of one or more of the five categories of behavior. The implications of these results for practitioners and future research are discussed.
 
Employee lateness has long been recognized by organizations as a behavior necessitating monitoring and control (e.g., Motley, 1926). Company rules and regulations for employees almost always contain a section that communicates the organization’s policies for handling employee lateness. The costs associated with employee lateness include the loss of late-employee productivity, the administration time of supervisors (e.g., counseling—disciplining late employees), and the negative impact on other workers who have to pick up the slack (Cascio, 1987). For many years, application-oriented articles have been written discussing how to prevent or reduce employee lateness (e.g., Kempen, 1982; Kennedy, 1984; Kite, 1984; Ruchti, 1967).
 
Purpose – The purpose of this paper is to use the work of Robert Frost to give insights into the diverse meanings that work holds in daily lived experience. It aims to use this analysis to discuss general ways in which the content and formal properties of poetry allow unique insights into the world of work. Design/methodology/approach – The paper uses the approach of literary criticism and analysis to give insights into how work can be experienced as personally liberating but also culturally stifling, a tool both for and against human self-fulfilment. After a brief discussion of the use of poetry to understand organizational life, various excerpts from Frost's well-known and lesser known works are analyzed. Findings – Through a series of passages in Frost's works, the paper shows how these illuminations of the poet's own experiences hold insights by which scholars can understand the experience of work more generally. Practical implications – It is argued that an understanding of poetry is a way for scholars to expand their understanding of the world of work, both through paying attention to the contents of poems and, more generally, from considering a poetic form of expression as shot-through with theoretical and epistemic insights. Originality/value – While some papers have incorporated poetic expressions and explanations for various organizational phenomena, this work represents an attempt to incorporate this rarely studied feature into organizational studies. To the authors' knowledge, the mainstream organizational literature has few if any in-depth poetic analysis, and none of the work of Frost, whose focus on work is widespread and illuminating.
 
Congruent with an attempt to better understand the economic instrumentality of work, it was hypothesized that (1) pay satisfaction and life satisfaction are correlated positively; (2) the pay-life satisfaction relationship is moderated by financial requirements such that the relationship is stronger for those with high requirements; and (3) the pay-life satisfaction relationship is jointly moderated by financial requirements and sex such that the relationship is stronger for males with high requirements. Among a sample of managerial and professional workers employed by an insurance company, support for each hypothesis was obtained. The results are discussed in terms of the need to consider further the impact of family configuration and the breadwinner role on workers' reactions to their jobs.
 
Purchase-supply relations in Japanese electronics are less close and cooperative than in the automobile industry and involve less formal knowledge sharing. Our interviews with a number of major Japanese electronics firms reveal that suppliers are less involved in manufacturers' product development processes and are brought in at later stages. However, too much attention to such formal knowledge sharing events may blind one to patterns of cross-firm learning and sharing that transfer the most tacit kinds of organizational knowledge, such as the normative and affective elements of a corporate culture. Using interview information, we discuss the phenomenon of shukko (employee transfers) among Japanese companies. Shukko is often viewed as a downsizing device, although firms claim they do it mostly to exchange knowledge with partners. Our view is that it serves both purposes. However, the volume of shukko varies with the electronics firm. It is most common where customers and suppliers are bound to one another in equity and other "keiretsu" relationships. Shukko is an effective mechanism of cross-firm socialization, so we might expect that firms that shukko extensively are also more likely to develop network-wide cultures of obligation and reciprocity. An example supporting that hypothesis is "Kigyo Denki," our pseudonym for a large, old-line electronics company with strong ties to one of Japan's "big-six" horizontal keiretsu groups. However, some companies, such as Matsushita, have a corporate culture that appears to coordinate and motivate suppliers even in the absence of shukko and other keiretsu ties.
 
Type of code that is revealed
Frequency of use of various means to protect code
Descriptive statistics of explanatory variables used in Table 5 (N = 119)
Multivariate analysis of share of code that firms reveal
This paper provides a quantitative study (N = 268) of patterns of free revealing of firm-developed innovations within embedded Linux, a type of open source software (OSS). I find that firms, without being obliged to do so, contribute many of their own developments back to public embedded Linux code, eliciting and indeed receiving informal development support from other firms. That is, they perform a part of their product development open to the public—an unthinkable idea for traditionally minded managers. Such openness obviously entails the challenge of protecting one's intellectual property. I find that firms address this issue by revealing selectively. They reveal, on average, about half of the code they have developed, while protecting the other half by various means. Revealing is strongly heterogeneous among firms. Multivariate analysis can partly explain this heterogeneity by firm characteristics and the firm's purpose behind revealing. An analysis of reasons for revealing and of the type of revealed code shows that different types of firms have different rationales for openness. Implications for management are that the conflict between downsides and benefits of openness appears manageable. Provided selective revealing is practiced deliberately, the opportunities of open development dominate.
 
Work–family scholars now recognize the potential positive effects of participation in one life domain (i.e., work or family) on performance in other life domains. We examined how employees might benefit from team resources, which are highly relevant to the modern workplace, in both work and nonwork domains via work–family enrichment. Using the Resource–Gain–Development model (Wayne, Grzywacz, Carlson, & Kacmar, 2007), we explored how team resources contribute to enrichment and resulting project and family satisfaction. Using multilevel structural equation modeling (ML-SEM) to analyze student data (N = 344) across multiple class projects, we demonstrated that individuals with team resources were more likely to experience both work-to-family and family-to-work enrichment. Further, enrichment mediated the relationship between team resources and satisfaction with the originating domain.
 
This paper provides novel empirical evidence on the private value of patents and R&D in European firms during the period 1991-2004. We explore the relationship between firm's stock market value, patents, and "quality"-weighted patents issued by the European Patent Office (EPO) and the US Patent and Trademark Office (USPTO). We find that Tobin's q is positively and significantly associated with R&D and patent stocks, but that only those patents taken out in both patent offices or at the USPTO alone seem to be valued. Either forward citations or a composite quality indicator based on forward citations, family size and the number of technical fields covered by the patent are modestly informative for value. Software patents account for a rising share of total patents in the USPTO and EPO. Moreover, some scholars of innovation and intellectual property rights argue that software and business methods patents on average are of poor quality and that these patents are applied for merely to build portfolios rather than for protection of real inventions. We found that such patents are considerably more valuable than ordinary patents, especially if they are taken out in the U.S. However their quality indicators are no more valuable than those of other patents, suggesting that their primary purpose may be to increase the size of the patent portfolio.
 
Top-cited authors
Javier Gimeno
Bård Kuvaas
  • BI Norwegian Business School
Anders Dysvik
  • BI Norwegian Business School
Carolyn Y. Woo
Loizos Heracleous
  • The University of Warwick