Abstract

Given the critical role of leaders in managing employees' goal-setting, we theorized and examined how leader proactive goal regulation facilitates employee proactive goal processes and outcomes. Based on a sample of 74 leaders and 371 employees who work in research and development groups, we found that employees' three motivational states-role breadth self-efficacy, psychological ownership, and activated positive affect-were positively associated with job performance via employee proactive goal regulation. In addition, the effects of leader proactive goal regulation on this mediation model were twofold. First, there was a direct effect on employee proactive goal regulation, which, in turn, positively related to job performance. Second, there was a moderating effect of leader proactive goal regulation such that employees delivered high job performance when their leaders were high in proactive goal regulation, regardless of employees' own levels of proactive goal regulation. This study highlights the importance of not only employee but also leader proactive goal regulation in connecting employees' proactive motivational states with job performance.

Keyword

activated positive affect ;  employee proactivity ;  job performance ;  proactive goal regulation ;  psychological ownership ;  role breadth self-efficacy

Abstract

Considering recent corporate scandals, organizations have increased their efforts to curb unethical employee behavior. However, little is known about whether leaders comply with these efforts and how they respond to unethical employee behavior, especially when unethical actions benefit the organization. By integrating arguments from social identity and moral disengagement theories, we develop and test a model to explain how leaders respond to unethical pro-organizational behavior (UPB) among employees. Results from one multi-wave, multi-source field study and one experiment showed that leader perceptions of employee UPB were positively related to leader trust in employees when leaders identified strongly with their organization or when they had a strong propensity to morally disengage. Moreover, the results revealed an important three-way interaction effect. Leaders put considerable trust into UPB-enacting employees when leaders both identified strongly with the organization and showed high levels of moral disengagement. In contrast, they put little trust into UPB-enacting employees when leaders identified weakly with the organization and reported low moral disengagement. Furthermore, results showed that leader trust ultimately translated into perceived leader justice toward employees. These findings provide new and important insights into when organizations can(not) rely on their leaders to manage unethical employee behaviors.

Keyword

justice ;  leadership ;  moral disengagement ;  moral disengagement theory ;  organizational identification ;  social identity theory ;  unethical pro‐organizational behavior

Abstract

In this study, the relationship between CEO temporal focus and family business succession planning is examined and the moderating effects of family interactions and environmental uncertainty are assessed. Based on data from 198 CEOs of family businesses and additional data from 15 semi-structured interviews in China, we find that CEO temporal focus (i.e., past, present, or future focus) is positively associated with succession planning. In addition, family interactions strengthen the relationship between CEO past focus and succession planning and weaken the relationship between CEO future focus and succession planning. Moreover, in uncertain environments, past-focused CEOs are more likely to plan for succession than present-focused CEOs. The theoretical contributions and practical implications of the study are also discussed.

Keyword

Environmental uncertainty ;  Family firm ;  Family interaction ;  Succession planning ;  Temporal focus

Abstract

Research Summary Health science firms have long product development horizons and need regulatory approval for market entry. In communicating with investors, they may use entrepreneurial orientation (EO) rhetoric to emphasize their strategic and behavioral commitment to product innovation and market entry. However, because EO rhetoric constitutes a soft-information signal rather than evidence of substantive commitment, investors may suspect firm insiders using such rhetoric of impression management. The solution, we argue, is EO rhetoric sustained over time, which produces more reliable information for investors-in contrast to occasional increases in EO rhetoric, which invite skeptical scrutiny. Nevertheless, investors' potential concerns regarding changes in EO rhetoric can be mitigated by concurrent hard-information signals that carry signaling costs or penalty costs for false signaling. Managerial Summary Entrepreneurial orientation (EO) rhetoric can reduce information asymmetry between managers and investors. In strictly regulated contexts such as health science industries, using such rhetoric may be challenging. For firms embracing entrepreneurial strategies and behaviors, maintaining EO rhetoric over time is critical to overcoming skepticism that it is merely "cheap talk." For investors, this study also suggests that health science firms maintaining higher EO rhetoric over time deserve higher valuations, given the variety of benefits an EO can have for health science firms. If a health science firm aims to ramp up its EO rhetoric, managers should be aware that investors may interpret the increase as impression management and should confront this interpretation head-on-for instance, by simultaneously increasing entry commitment or corporate social responsibility.

Keyword

corporate social responsibility ;  entrepreneurial rhetoric ;  entry commitment ;  health science firms ;  strict regulations

Abstract

This study focused on the victims of coworker envy and presented a comprehensive model of being envied by coworkers to explore its antecedents and consequences in the hospitality context. Based on a sample of 232 employee-supervisor dyads in five Chinese hotels, we found that competitive goal interdependence fostered coworker envy, whereas cooperative goal interdependence prevented it. Further, the experience of being envied by coworkers undermined the frontline hospitality employees' social exchange relationship with coworkers. This in turn prevented them from engaging in organizational citizenship behavior directed at their organizations (OCBO) and specific individuals (OCBI) such as organization members. In addition, envied employees' others' approval of the contingent self-esteem was found to strengthen (1) the direct effect of being envied by coworkers on coworker exchange and (2) the indirect effect of being envied by coworkers on OCBO and OCBI via coworker exchange.

Keyword

Being envied by coworkers ;  Contingent self-esteem ;  Coworker exchange ;  Goal interdependence ;  Organizational citizenship behavior

Abstract

Acquiring firm managers should allocate marketing investments to maximize synergies from already announced mergers or acquisitions. However, managers may deliberately redistribute marketing capabilities and assets as a response to investor pressure formed by weak stock return around an announcement. We propose that stock returns that are below expectations may create investor pressure, which drives managers to practice myopic marketing management. We present evidence that acquirers are more likely to engage in myopic marketing management when they experience a negative stock market reaction around a merger announcement. Acquirers tend to report lower-than-normal advertising and R&D investments. Empirical results suggest that acquirers use marketing activities as an efficient tool to confront negative stock market evaluation. Our study contributes to the myopic management literature by showing when and how firms in mergers and acquisitions are more likely to exhibit opportunistic managerial behaviour. We provide some policy suggestions for both acquiring firm managers and investors.

Keyword

investor pressure ;  managerial myopia ;  marketing ;  Merger and acquisition ;  R&D

Abstract

This study examines the association between CEO temporal focus and corporate engagement in philanthropy, and considers the moderating role of ownership. This association is investigated based on upper echelons theory and the conceptual framework of temporal focus. Using a sample of 2,285 observations of Chinese listed firms from 2010 to 2015, our results show that the relationship between CEO past focus and corporate philanthropy is positive in state-owned firms but negative in private firms. In addition, CEO future focus is negatively associated with charitable activities in state-owned firms, but positively associated with such activities in private companies. For present-oriented CEOs, the relationship between temporal focus and philanthropy is negative in both public and private firms, but the negative effect is stronger in private firms. The findings of this study show how CEOs' time perspectives shape their decisions on company engagement in philanthropic projects.

Keyword

CEO temporal focus ;  CEO time perspective ;  corporate giving ;  corporate philanthropy ;  ownership

Abstract

We examine how the ordering of information within quarterly earnings announcements influences investor response to those announcements. Specifically, we examine whether earlier discussion of earnings information, and earlier discussion of qualitatively positive or negative information, is associated with stronger responses to that information. Controlling for the linguistic content of the earnings announcement, we find a positive relation between investor response to information and the prioritization of that information in the earnings announcement. We find no evidence of investor over-reaction and, to the contrary, find some evidence that investors under-react to prioritized information. Our evidence, in conjunction with experimental evidence in Elliott (2006), suggests that information placement influences investors' responses. However, unlike the experimental evidence in Elliott (2006), our archival results suggest that investor response to information placement is warranted, rather than the result of an unintentional cognitive effect.

Keyword

earnings release ;  disclosure ;  order of information ;  under-reaction

Abstract

We conducted a clustered randomized field experiment with 20 Brazilian distributorships of a multinational direct sales organization to examine whether controlling failure perceptions through formal communications increases performance. We used the organization's weekly sales meetings to deliver a video-based message from the regional head that either communicates workers should view failure as a natural part of learning rather than an indictment of their ability (treatment condition) or simply summarizes the organization's history (control condition). We find that those who were assigned to the treatment condition were more likely to sustain their effort in response to the economic adversity that coincided with our experiment. Additional analyses suggest that our treatment accomplished this by increasing job-specific confidence and by reinforcing social norms that encourage workers to persevere after failure. Overall, our findings highlight that formal communications from senior management are a viable control mechanism for sustaining effort in the face of failure.

Keyword

confidence ;  failure ;  organizational messages ;  performance ;  personal goals ;  social control

Abstract

Keyword

corporate communication ;  COVID-19 ;  Fauci ;  information disorder ;  information overload ;  public language ;  shared uncertainty