Abstract

Purpose The accounts receivable pool (ARP) is an e-invoice management system that provides suppliers with easy access to financial service. The purpose of this paper is to focus on the strength and weakness of ARP mechanism and suggest efficient methods to identify creditworthy borrowers. Design/methodology/approach By decomposing the sales records of 348 ARP borrowers and predicting the occurrence of overdue incidences, this study first portrays the creditworthy borrowers by sales features. Then, content analysis was applied to measure the loadings of soft and hard information, and examined the effectiveness of different information structures in creditworthiness assessment. Findings For ARP borrowers, upward trend and low volatility reveal their creditworthiness. In order to identify creditworthy borrowers beforehand, ARP financiers who have elaborated more soft information and less hard information can perform better. Originality/value This study first discussed ARP finance from a critical perspective and underlines borrower assessment to eliminate the defect of loose recourse. The empirical evidence presents the sales features of creditworthy borrowers. Moreover, the results suggest an efficient approach for ARP financiers to conduct better assessment.

Keyword

Information structure ;  Accounts receivable pool finance ;  Sales information

Abstract

Keyword

Book Review

Abstract

Mentorship quality is an important aspect of mentorship effectiveness, yet we know little about its predictors. Using social identity theory, we examined the relationship between mentor alcohol use norms and mentorship quality as perceived by proteges. Our study also considered the mediating role of protege identification with the mentor and the moderating role of protege traditionality. The findings, based on mentor-protege dyadic data collected through a three-wave survey in China, indicate that mentor alcohol use norms are negatively related to mentorship quality, and that this relationship is mediated by protege identification with the mentor. Furthermore, the traditionality of proteges alleviates not only the negative relationship between mentor alcohol use norms and protege identification with the mentor, but also the indirect relationship between mentor alcohol use norms and mentorship quality via protege identification with the mentor. The results underscore the value of focusing on mentor behavioral norms that are not directed toward the protege. We conclude with a discussion of the theoretical and practical implications for mentoring research.

Keyword

alcohol use norms ;  identification ;  mentoring ;  mentorship quality ;  traditionality

Abstract

Purpose - The purpose of this paper is to test whether self-verification striving serves as an individual difference antecedent of emotional labor and explore whether various emotional labor tactics acted as mediatingmechanisms through which self-verification striving relates to employee outcomes. Design/methodology/approach - The sample used in this paper consisted of supervisor-subordinate dyads working in six hotels in South Korea and used multi-level analyses and the Monte Carlo method to test the research hypotheses presented in this paper. Findings - Self-verification striving was positively and directly related to job performance as well as two out of three forms of emotional labor (i.e. the expression of naturally felt emotions and deep acting). Selfverification striving also indirectly related to job satisfaction through the expression of naturally felt emotions and indirectly related to job performance through deep acting. Practical implications - The findings of this paper suggest that organizations should consider selfverification striving as an employment selection criterion and provide training programs to help their customer service employees engage in appropriate types of emotional labor. Originality/value - This paper is the first to explore the underlying mechanisms through which selfverification striving relates to employee outcomes. It also empirically bolsters the notion that expressing naturally felt emotions is an important means of authentic self-expression that positively contributes to job satisfaction. Further, the authors found that self-verification striving positively relates to job performance partially through deep acting. Moreover, they have shown that self-verification striving, as an individual differences variable, is an antecedent of different types of emotional labor.

Keyword

Emotional labor ;  Job performance ;  Job satisfaction ;  Self-verification striving

Abstract

Besides the previous social relationship perspective of employee-organization relationship (EOR) research, this study takes the social cognitive perspective to explore the role of team collective efficacy in mediating the relationship between EORs and team performance. This study further contends that team cohesion moderates the positive relationship between collective efficacy and team performance, thereby moderating the indirect relationship between EORs and team performance through collective efficacy. Data analyses of 231 teams in Study 1 and 63 teams in Study 2 support the hypotheses. Therefore, this study provides theoretical contributions to the EOR literature by introducing a new perspective at the team level and to the social cognitive literature by discussing a boundary condition of the effect of collective efficacy on team performance.

Keyword

collective efficacy ;  employee-organization relationship ;  human resource management ;  team cohesion ;  team performance

Abstract

Purpose Technology has dramatically changed the nature of interorganizational relationships and the ways partners interact with each other. In the new platform business model, platform technology usage seems to work as a governance mechanism to regulate operations and manage platform builder-platform participant relationships. To respond to these changes, this study aims to examine how platform technology usage in platform operations influenced the relationship quality between the platform builder and platform participants by promoting perceptions of three types of justice (procedural, distributive and informational). Design/methodology/approach The authors propose that it is through the perception of three types of justice (procedural, distributive and informational) that platform technology usage exerts its governance effect on the platform relationship. In doing this, the authors seek to answer the following two related research questions in the platform setting: How does platform technology usage drive relationship performance via different types of justice perceptions? Which type of justice affects relationship performance most effectively? Findings The results from a survey of 384 participant firms from two of the largest digital platforms for mobile/PC application in China reveal that platform technology usage leads to better relationship performance through enhanced perceptions of procedural, distributive, and informational justice. The positive impacts of procedural justice and distributive justice on relationship performance are greater than that of informational justice, while the impacts of procedural justice and distributive justice show no significant differences. Originality/value These findings provide novel insights into the role and mechanisms of platform technology usage in platform relationship management.

Keyword

Platform; Platform technology usage ;  Procedural justice ;  Distributive justice ;  Informational justice ;  Relationship performance

Abstract

Despite increasing scholarly attention to workplace ostracism, victims receive little guidance regarding how to break its negative spiral over time. Drawing on a multi-motive model of rejection-related experiences and the cybernetic model of impression management, this study examines how and why ostracized employees might ameliorate workplace ostracism through impression management efforts to enhance their popularity. Specifically, an ostracized worker may employ favour rendering tactics to enhance her or his popularity, as reported by peers, which can help reduce ostracism. In addition, ostracized employees with strong self-monitoring tendencies may be more likely to employ favour rendering tactics and use them more effectively to enhance their popularity and thus reduce ostracism. Data collected from 277 employee-coworker pairs in a three-wave, time-lagged design over 2 years confirm the proposed hypotheses, tested in a two-stage moderated mediation model. These findings have theoretical implications for ostracism research, as well as practical implications to help employees and organizations overcome ostracism. Practitioner points Being ostracized often prompts self-focused responses, but to reduce it, ostracized employees instead should pay attention to others and seek to help others to alter the treatment they receive from others. High self-monitoring employees tend to employ favour rendering tactics to increase their popularity and mitigate ostracism. To help ostracized employees mitigate ostracism, managers and organizations can suggest ways to increase their popularity among their peers.

Keyword

impression management ;  popularity ;  self-monitoring ;  workplace ostracism

Abstract

Research Summary Activist hedge funds are the new breed of corporate raiders, yet we know little about how the management and board of target firms respond to activist investors. Using a behavioral perspective, we propose that an activist's reputation for being confrontational conveys information to the target company as to what they are likely to encounter in an activist campaign. To avoid the potential adverse consequences of engaging in such a contest, we propose and find that target companies are more likely to settle with an activist known for being confrontational. Our study contributes to corporate governance research by providing insight into the importance of the social context surrounding activist campaigns and the role of reputation in influencing how companies respond to activist investors. Managerial Summary Given that hedge fund activism is having a major impact on firm's strategic and financial decision-making, it is important to understand how these activist investors influence companies. An activist campaign is a highly disruptive event leading to considerable ambiguity and uncertainty as to what is likely to transpire. Given this information void, our study finds that the board and management respond based on the reputation of the activist investor that has taken a stake in the company. That activist investors with a reputation for being hostile are more successful may be a defensive response on the part of management in order to avoid the potential adverse consequences of a hostile campaign. This has implications for corporate governance and the fiduciary duty of the board. Keywords

Keyword

activist hedge funds ;  corporate governance ;  executive decision-making ;  market signaling ;  reputation

Abstract

We propose and test a new explanation for forced CEO turnover, and examine its implications for the impact of firm performance on CEO turnover. Investors may disagree with management on optimal decisions due to heterogeneous prior beliefs. Theory suggests that such disagreement may be persistent and costly to firms; we document that this induces them to sometimes replace CEOs who investors disagree with, controlling for firm performance. A lower level of CEO-investor disagreement serves to partially “protect” CEOs from being fired, thus reducing turnover-performance sensitivity, which we also document. We also show that firms are more likely to hire an external CEO as a successor if disagreement with the departing CEO is higher. Disagreement declines following forced CEO turnover. Using various empirical strategies, we rule out other confounding interpretations of our findings. We conclude that disagreement, independently of firm performance, affects forced CEO turnover.

Keyword

CEO turnover ;  Corporate governance ;  Heterogeneous beliefs ;  Investor-management disagreement

Abstract

The purpose of this study was to examine how firms' corporate social responsibility (CSR) strategies affect their innovation performance via two mediating variables, employee involvement and supplier collaboration, and compare how this mechanism works in the service and manufacturing industries. By analyzing and validating the direct and indirect effects of CSR on innovation performance in both the service and manufacturing industries, this study addressed the strategic benefit of CSR and extended research focused on the financial benefits of CSR. Therefore, its findings contribute to our understanding of sustainability and innovation issues. From a theoretical perspective, this study extended the RBV, SDL and stakeholder theory to the context of the CSR-innovation relationship, and showed that firms could align CSR and innovation initiatives to achieve strategic synergy. It also revealed the similarities and differences between service and manufacturing firms regarding the mechanism through which CSR affects innovation.

Keyword

Corporate social responsibility ;  Service innovation ;  Manufacturing innovation ;  Resource-based view ;  Service-dominant logic ;  Stakeholder theory