Knowledge that Transforms

Over the past few decades, a great deal of research has been conducted to examine the complex relationship between team diversity and team outcomes. However, the impact of team diversity on team outcomes and moderating variables potentially affecting this relationship are still not fully answered with mixed findings in the literature. These research issues were, therefore, addressed by quantitatively reviewing extant work and provided estimates of the relationship between team diversity and team outcomes. In particular, the effects of task-related and bio-demographic diversity at the group-level were meta-analyzed to test the hypothesis of synergistic performance resulting from diverse employee teams. Support was found for the positive impact of task-related diversity on team performance although bio-demographic diversity was not significantly related to team performance. Similarly, no discernible effect of team diversity was found on social integration. The implications of the review for future research and practices are also discussed.

This article examines how the compensation paid for outside directors affects firms’ acquisition behavior. Using panel data of Standard & Poor’s 1500 firms between 1996 and 2002, the authors find that stock and stock option pay for outside directors are related in an inverted U-shaped manner to a firm’s acquisition rate and that for stock options, this relationship is moderated by board composition. Their findings suggest a dual agency model of corporate governance, according to which not only executives’ incentives but also outside directors’ incentives should be aligned with the shareholder value creation.

This article integrates institutional theory and organizational learning perspective and proposes a contingency framework on the relationship between ownership strategies and subsidiary performance. Using a sample of Japanese subsidiaries worldwide, the article finds important main effects of ownership, institutional distance, and host country experience on subsidiary survival. Furthermore, the effect of ownership is contingent on institutional distance and host country experience. In institutionally distant countries, subsidiaries have better survival chances if foreign parents have more ownership. Host country experience has a negative impact on subsidiary survival, but the effect is weaker if foreign parents have larger ownership positions in the subsidiaries.

This article reviews and discusses the empirical literature on interorganizational networks at the network level of analysis, or what is sometimes referred to as “whole” networks. An overview of the distinction between egocentric and network-level research is first introduced. Then, a review of the modest literature on whole networks is undertaken, along with a summary table outlining the main findings based on a thorough literature search. Finally, the authors offer a discussion concerning what future directions might be taken by researchers hoping to expand this important, but understudied, topic.

An emerging trend within the organizational justice, social exchange, and organizational citizenship behavior literatures is that employees maintain distinct perceptions about, and direct different attitudes and behaviors toward, multiple foci such as the organization, supervisors, and coworkers. However, these multifoci developments have progressed, for the most part, independently of one another. Thus, to gain a more complete conceptualization of the employee experience, this review brings these respective literatures together. Specifically, the authors (a) review and organize multifoci research and theory in justice, social exchange, and citizenship behavior, (b) develop a “target similarity” model to provide a theoretical framework for conceptualizing and integrating multifoci research, and (c) o fer suggestions for future multifoci research.

Basing their hypotheses on information processing theory, the authors incorporate important group processes within strategic decision making. They examine the interrelationships of cognitive diversity, task conflict, and competence-based trust and their effects on decision outcomes. Their survey includes top management teams from 85 U.S. hospitals. They found that cognitive diversity has a strong positive relationship with task conflict and that competence-based trust strengthens this relationship. In addition, these results suggest that task conflict mediates the effects of cognitive diversity on decision outcomes.

Political skill is a construct that was introduced more than two decades ago as a necessary competency to possess to be effective in organizations. Unfortunately, despite appeals by organizational scientists to further develop this construct, it lay dormant until very recently. The present article defines and characterizes the construct domain of political skill and embeds it in a cognition—affect—behavior, multilevel, meta-theoretical framework that proposes how political skill operates to exercise effects on both self and others in organizations. Implications of this conceptualization are discussed, as are directions for future research and practical implications.

The failure to document a consistent and robust relationship between executive pay and firm performance has frustrated scholars and practitioners for over three quarters of a century. Although recent compensation research has revealed alternative theoretical frameworks and findings that hold the potential to significantly improve our understanding of executive compensation, to date this diverse literature lacks theoretical integration. Accordingly, we develop a framework to organize and review these recent findings. We further identify methodological issues and concerns, discuss the implications of these concerns, and provide recommendations for future research aimed at developing a more integrated research agenda.

Although the value of positivity has been assumed over the years, only recently has it become a major focus area for theory building, research, and application in psychology and now organizational behavior. This review article examines, in turn, selected representative positive traits (Big Five personality, core self-evaluations, and character strengths and virtues), positive state-like psychological resource capacities (efficacy, hope, optimism, resiliency, and psychological capital), positive organizations (drawn from positive organization scholarship), and positive behaviors (organizational citizenship and courageous principled action). This review concludes with recommendations for future research and effective application.

Drawing from the foundation of positive psychology and the recently emerging positive organizational behavior, two studies (N = 1,032 and N = 232) test hypotheses on the impact that the selected positive psychological resource capacities of hope, optimism, and resilience have on desired work-related employee outcomes. These outcomes include performance (self-reported in Study 1 and organizational performance appraisals in Study 2), job satisfaction, work happiness, and organizational commitment. The findings generally support that employees' positive psychological resource capacities relate to, and contribute unique variance to, the outcomes. However, hope, and, to a lesser extent, optimism and resilience, do differentially contribute to the various outcomes. Utility analysis supports the practical implications of the study results.