Knowledge that Transforms

abstract We examine empirically how an organization that deliberately enhances interpersonal trust to become a significant organizational phenomenon, is different from a similar organization without explicit trust enhancement policies. The point of departure is relational signalling theory, which says that trust is a function of consistently giving off signals that indicate credible concern, to potential trustors. A matched pair of two consulting organizations, with different trust policies but otherwise similar characteristics, were studied intensively, using survey research, participant observation and half‐open interviewing, focused on the generation of trust and the handling of trouble when trust was threatened or destroyed. A higher stage of trust can be reached by an inter‐related set of policies: promoting a relationship‐oriented culture, facilitation of unambiguous signalling, consistent induction training, creating opportunities for meeting informally, and the day‐to‐day management of competencies. Such policies are in principle independent of recognized contextual contingencies.

abstractResearch on psychological contract breach has referenced social exchange as its dominant theoretical foundation. In this study, we draw insights from the group value model as a theoretical extension to explain employees' negative responses to psychological contract breach. According to the group value model, fair treatment by group members communicates symbolic messages about the relationship between the organization and the employee, and has implications for whether employees can take pride in their organizational membership. When people are treated unfairly, they lose trust in the organization and dis‐identify from the group. This in turn results in less willingness on the part of the employees to engage in organizational citizenship behaviours (OCBs). We tested these relationships across three studies. In Study 1, we conducted a longitudinal test of the role of trust as a mediator between breach and organizational identification. In Studies 2 (cross‐sectional) and 3 (longitudinal), we tested the complete model in which we examined the role of trust and identification in mediating the link between breach and OCBs. All three studies provided support for the mediated model. Furthermore, as predicted by the group value model, the hypothesized relationships emerged in response to relational but not transactional contract breaches. Theoretical and applied implications are discussed.

abstract Instead of traditional principal–agent conflicts espoused in most research dealing with developed economies, principal–principal conflicts have been identified as a major concern of corporate governance in emerging economies. Principal–principal conflicts between controlling shareholders and minority shareholders result from concentrated ownership, extensive family ownership and control, business group structures, and weak legal protection of minority shareholders. Such principal–principal conflicts alter the dynamics of the corporate governance process and, in turn, require remedies different from those that deal with principal–agent conflicts. This article reviews and synthesizes recent research from strategy, finance, and economics on principal–principal conflicts with an emphasis on their institutional antecedents and organizational consequences. The resulting integration provides a foundation upon which future research can continue to build.

abstract Organizations capable of pursuing exploration and exploitation simultaneously have been suggested to obtain superior performance. Combining both types of activities and achieving organizational ambidexterity, however, leads to the presence of multiple and often conflicting goals, and poses considerable challenges to senior teams in ambidextrous organizations. This study explores the role of senior team attributes and leadership behaviour in reconciling conflicting interests among senior team members and achieving organizational ambidexterity. Findings indicate that a senior team shared vision and contingency rewards are associated with a firm's ability to combine high levels of exploratory and exploitative innovations. In addition, our study shows that an executive director's transformational leadership increases the effectiveness of senior team attributes in ambidextrous organizations and moderates the effectiveness of senior team social integration and contingency rewards. Hence, our study clarifies how senior executives reconcile conflicting demands and facilitate the balancing of seemingly contradictory forces in ambidextrous organizations. Implications for literatures on senior team attributes, transformational leadership and organizational ambidexterity are discussed.

abstract The purpose of the present study was to examine whether and how the quality of the employee–organization relationship (EOR) influences the relationship between employee perception of developmental human resource (HR) practices and employee outcomes. Analyses of 593 employees representing 64 local savings banks in Norway showed that four indicators of the EOR (perceived organizational support, affective organizational commitment, and procedural and interactional justice) moderated the relationship between perception of developmental HR practices and individual work performance. A strong and direct negative relationship was found between perception of developmental HR practices and turnover intention, but perceived procedural and interactional justice moderated this linkage. No support was found for a mediating role of the EOR indicators in the relationship between perception of developmental HR practices and employee outcomes. Implications and directions for future research are discussed.

abstract ‘Evidence based’ management is a popular contemporary account of the relationship between research and practice in management studies. This paper critically examines the implications of this account from the perspective of Formalism: a narratological approach to critique that focuses on how narratives are made compelling, and hence powerful. Compelling narratives deploy devices that establish (i) credibility and (ii) defamiliarization. Using this approach the paper identifies and examines different ideological strands in the nascent literature on evidence based management: pragmatism, progress, systematization, technique, accumulation. These are the means by which advocates of evidence based approaches construct a compelling story about the value of this approach. Prior criticism of the evidence based approach has centred on epistemological and technical issues. The aim here is to use an aesthetic mode of criticism to highlight political and moral implications. These are important given the relationship between claims to knowledge and the use of power; and the interaction between management research, and management as practice.

abstractWe propose conceptual arguments to establish relationships between market orientation and generative learning and their respective impact on exploitative innovation strategy and explorative innovation strategy. We then consider the ambidextrous association between both forms of innovation strategy and business performance. This model is subject to an empirical test using data generated from 160 bioscience firms. Using structural equation modelling, two mutually exclusive paths are specified where market orientation leads to exploitative innovation strategy, while generative learning leads to explorative innovation strategy. We then find that the ambidexterity exhibited by firms in the form of exploitative innovation strategy and explorative innovation strategy significantly explains improvements in firms’ business performance. Discussion is given to these findings and managerial implications are presented along with avenues for further research.

abstract Two major perspectives can be construed in the literature concerning the nature of family owned businesses (FOBs). The first implies that these enterprises have unique characteristics of stewardship. FOB owners are said to care deeply about the long‐term prospects of the business, in large part because their family's fortune, reputation and future are at stake. Their stewardship is said to be manifested by unusual devotion to the continuity of the company, by more assiduous nurturing of a community of employees, and by seeking out closer connections with customers to sustain the business. The second perspective is less flattering. It proposes that FOBs are unusually subject to stagnation: they are said to face unique resource restrictions, embrace conservative strategies, eschew growth, and be doomed to short lives. This paper develops and examines the merits of the two perspectives, neither of which has been systematically articulated or researched. It does so in an empirical study of only small firms that are owned and managed by their founder. Within this sample, it compares firms that are FOBs, that is, family owned and managed, with non‐FOBs, that is, owned and managed by a founder with no other relative involved in the business. The findings show significant support for all three aspects of the stewardship perspective of FOBs, and no support for any elements of the stagnation perspective.

abstractThis paper introduces the special themed section on organizational interactions involving universities and firms that result in the commercialization of research and technology. Our objective is to shed light on some of the most vexing, yet under‐researched predicaments research institutions encounter, despite their best efforts to advance commercialization. First, we synthesize and extend recent studies, including the papers in the special themed section. Next, we develop a taxonomy of modes of commercialization. Specifically, we consider internal approaches, quasi‐internal approaches (e.g. incubators), university research parks, regional clusters, academic spin‐offs and start‐ups, licensing, contract research and consultancy, corporate venture capital, and open science and innovation. We also identify areas for further research at the individual (e.g. heterogeneity of entrepreneurial teams and experience; incentives), organizational and intra‐university (e.g. corporate governance; nature of growth strategies; relationships with trading partners; boundary spanning activities) and technology levels (e.g. institutional context; reconfiguration of technology; valuation of technology).

abstract This paper examines the development and initial validation of a multidimensional measure of servant leadership behaviour (Servant Leadership Behaviour Scale). Both qualitative and quantitative studies are reported to establish preliminary psychometric properties for the new 35‐item, six‐dimension measure. The resultant servant leadership model is characterized by its service orientation, holistic outlook, and moral‐spiritual emphasis, thereby extending current models of servant leadership and existing works on contemporary leadership approaches. Theoretical contributions, practical implications, and future research directions are discussed in the concluding section of the paper.