Knowledge that Transforms

We develop an isomorphism-signaling framework to explain the likelihood of isomorphic behavior (and nonconformity) by a focal firm toward local rivals and nonlocal rivals and then predict financial performance associated with the action. In the presence of asymmetric information, we predict a causal relationship between rival isomorphism and financial performance that reveals a paradox—that is, we theorize and show conditions in which “conforming” reflected by rival isomorphic behavior is a signal that “separates” high-quality from low-quality firms. We consider a firm’s costs and benefits of local and nonlocal rival isomorphism and assert that a firm can signal its quality, which affects financial performance of the equity offering. We test and find support for our hypotheses using a sample of firms raising capital abroad from 1994 to 2005.

I respond to the recent article in the Journal of Management by Priem, Li, and Carr titled “Insights and New Directions From Demand-Side Approaches to Technology Innovation, Entrepreneurship, and Strategic Management Research.” Priem et al. argue that demand-side research can provide understandings of firm activity that research focusing on other aspects of the firm’s value chain cannot. I highlight what I believe are issues that, if addressed, can promote the contribution of demand-side studies to macro-management research.

We study how New York Stock Exchange (NYSE) firms adopted governance committees on their boards of directors. The drive to adopt started as a social movement but was facilitated greatly by the collapse of Enron Corporation and a subsequent mandate by the NYSE that all of its traded firms must have governance committees. Using institutional theory and a sample of NYSE firms, we develop and test hypotheses about the speed of governance committee adoption, the likelihood of committee adoption by the NYSE deadline, and the types of directors that were placed on the inaugural governance committee. Our study adds to theory about how organizations respond to external pressures when responding is contrary to the interests of executives.

Existing justice theory explains why fair procedures motivate employees to adopt cooperative goals, but it fails to explain how employees strive toward these goals. We study self-regulatory abilities that underlie goal striving, abilities that should thus affect employees’ display of cooperative behavior in response to procedural justice. Building on action control theory, we argue that employees who display effective self-regulatory strategies (action-oriented employees) display relatively strong cooperative behavioral responses to fair procedures. A multisource field study and a laboratory experiment support this prediction. A subsequent experiment addresses the process underlying this effect by explicitly showing that action orientation facilitates attainment of the cooperative goals that people adopt in response to fair procedures, thus facilitating the display of actual cooperative behavior. This goal striving approach better integrates research on the relationship between procedural justice and employee cooperation in the self-regulation and the work motivation literature. It also offers organizations a new perspective on making procedural justice effective in stimulating employee cooperation by suggesting factors that help employees reach their adopted goals.

Using a sample of 1,468 private sector establishments, this article addresses the relationship among part-time workers, commitment-based human resource (HR) systems, and establishment financial performance. Building on theoretic perspectives about equity perceptions and reciprocal exchanges, we find that the proportion of part-time workers in an establishment workforce is nonlinearly related to establishment financial performance in an inverted U-shaped relationship. In addition, the interaction between part-time workers and commitment-based HR systems is negatively related to establishment performance. The analysis suggests that those deciding about how to structure establishments’ workforces should consider how interactions between different types of workers within workforces can influence establishment performance.

Recent advances in leadership research suggest that collective-focused leadership climate and differentiated individual-focused leadership might simultaneously, yet oppositely, affect collective outcomes. The present study extends this literature by addressing open questions regarding theory, methods, statistics, and level of analysis. Therefore, a new and more parsimonious theoretical model is developed on the organizational-level of analysis. Drawing on the commitment literature, we argue for opposite relations of the two leadership constructs on the affective organizational commitment climate. We subsequently theorize that contingent-reward leadership climate moderates these opposing relationships, making our study the first in this field to investigate moderators. Last, we reason that organizational effectiveness is enhanced when affective commitment is “put into action” and raises the organizational citizenship behavior climate. Our three-path moderated-mediation hypotheses are tested, and supported, by structural equation modeling analyses in a multisource data set containing 16,911 respondents from 157 companies. Extensive alternative model testing shows that our theory and findings are robust.

Huddles—informal gatherings of two or more individuals, convened to discuss substantive issues regarding the work of one or more of the participants—are a form of social interaction that can play a critical role in the learning of organizational actors. We identify their defining properties and propose a multi-level framework for understanding the participant- and huddle-level factors that promote individual learning that is important to the work of the organization. We test our hypotheses using data obtained from huddles conducted in newspaper newsrooms using an experience sampling approach. Results confirm the importance of occupational tenure heterogeneity, perceived job relevance, attention to others’ emotions, and conversational reflexivity for participant learning in huddles. These results set the stage for understanding how the informal structure of an organization can be developed in ways that promote learning and adaptation.

Extraversion has exhibited inconsistent relationships with employees’ interpersonal citizenship. Across three studies, we integrate literature on personality with impression management and socioanalytic theories to propose that employees’ impression management motives act as a contingency, strengthening the relationship between extraversion and interpersonal citizenship. First, in Studies 1 and 2, across two settings (field and university) and two designs (nonexperimental and experimental), we confirm that extraverted individuals engage in citizenship to a greater extent when they are also either predisposed (Study 1) or cued (Study 2) to manage others’ impressions. In Study 3, we extend these findings by using a conditional mediation process model to develop and test the hypothesis that an individual’s strategy to get along serves as an explanatory mechanism to the interactive effect of extraversion and impression management motives on interpersonal citizenship. Overall, our results suggest that the prediction of interpersonal citizenship can be improved when considering the conjoint influence of employees’ extraversion and impression management motives.

Despite decades of research on organizational disasters, such events remain too common. Scholars across a wide range of disciplines agree that one of the most viable approaches to preventing such catastrophes is to observe near-misses and use them to identify and eliminate problems before they produce large failures. Unfortunately, these important warning signals are too often ignored because they are perceived as successes rather than near-misses (or near-failures). In this article, we explore the effect of a climate for safety on improving near-miss recognition by observers, hypothesizing that safety climate increases the level of attention that observers pay to the underlying processes that generate an apparently successful outcome. Using a database of anomaly reports for unmanned NASA missions, we show that organizational safety climate and project stakes increase reporting rates of near-misses, both independently and interactively. In follow-up laboratory experiments, we confirm the independence of these effects to improve the likelihood that people differentiate near-miss outcomes from successes. Results suggest organizations can increase the recognition of near-misses with organizational messages that emphasize a positive safety climate.

We sought to clarify the relationship between virtuality and social loafing by exploring two work–family moderators—family responsibility and dissimilarity in terms of family responsibility—and two mediators—cohesion and psychological obligation—in two studies. We expected that “busy teams” (i.e., comprising similar individuals with many family responsibilities) would exhibit the strongest positive virtuality–social loafing relationship, and teams comprising similar individuals with few family responsibilities would experience a weaker virtuality–social loafing relationship. We expected that individuals working with dissimilar others would report consistently high levels of social loafing regardless of virtuality. Furthermore, we expected cohesion and psychological obligation to one’s teammates would mediate these effects. Similar individuals in teams indeed exhibited different virtuality–social loafing relationships in both studies, suggesting that the flexibility provided by virtuality might be more effective in teams comprising similar people with few family responsibilities. Study 2 further revealed that cohesion and obligation may mediate these effects, such that high levels of these mediators were associated with low levels of social loafing in similar teams comprising people with few family responsibilities. We discuss contributions to the virtual work and social loafing literatures, as well as the work–family and team literatures. We also suggest several specific actions managers can take on the basis of these findings, including for employees with few versus many family responsibilities.