Abstract

Using data from 310 executive MBA students in 66 teams on a business simulation project, we explored (a) how shared leadership and team learning behaviors influence each other over time in self-managed teams, and (b) how the stability of the leadership network structure (i.e., network churn) is associated with team learning behaviors. We found that shared leadership stimulated team learning behaviors in a manner consistent with previous research at the early stages of teams' work together, but not at the middle and later stages of the task. We also found that teams that engaged in more learning behaviors early in the task were more likely to keep their leadership network structure stable. This stability was positively associated with team learning behaviors at the midpoint and end of the task. We use these findings to elaborate theory on how leadership and learning in self-managed teams develop, change, and influence each other over time.

Keyword

DYNAMICS ;  NETWORK ;  network churn ;  ORGANIZATIONS ;  PERFORMANCE ;  ROUTINES ;  self-managed teams ;  shared leadership ;  team learning behaviors ;  time ;  WORK

Abstract

Reactions to decisions are shaped by both outcome and procedural fairness. Moreover, outcome and procedural fairness interact to influence beliefs and behaviors. However, different types of process/outcome interaction effects have emerged. Many studies have shown that people react particularly negatively when they receive unfair or unfavorable outcomes accompanied by unfair procedures (the low-low interactive pattern). However, others find that people react especially positively when they receive fair or favorable outcomes accompanied by fair procedures (the high-high interactive pattern). We propose that trust in decision-making authorities dictates the form of the process/outcome interaction. Across three studies, when trust was high, the low-low interactive pattern emerged. When trust was low, the high-high interactive pattern emerged. The findings suggest that when people's experience of outcome and procedural fairness diverged from how they expected to be treated, they reacted in the direction of their experiences; otherwise, their reactions were consistent with their expectations.

Keyword

FAVORABILITY ;  JUSTICE ;  MEDIATOR ;  MODERATOR ;  organizational commitment ;  organizational justice ;  ORGANIZATIONS ;  outcome fairness ;  PERFORMANCE ;  procedural fairness ;  trust

Abstract

When a financial damage has been inflicted, perpetrators can satisfy victims' outcome related concerns by providing a financial compensation. Few studies have investigated, however, whether overcompensation (i.e., compensation that is greater than the damage suffered) is more beneficial than equal compensation (i.e., compensation that covers the exact damage suffered). The results of four studies show that overcompensation offers no effects in addition to the impact of equal compensation, and that it even provokes negative outcomes. More specifically, overcompensation is attributed to occur because of a lower level of moral orientation on the part of the perpetrator (Study 2 through 4), leads to less favorable perceptions of the perpetrator (Study 2 and 4), and lower levels of trust in the perpetrator (Study 3 and 4) than equal compensation. No significant differences between overcompensation and equal compensation appeared for relationship preservation and cooperation (Study 4). These results show that while overcompensation may rebuild cooperation (albeit not more effectively than equal compensation), it does so at a monetary and relational cost that limits its effectiveness as a tool to promote true interpersonal trust. The present studies thus show that a large financial compensation does not provide any surplus value in terms of psychological outcomes and relationship continuation, even though such compensation best satisfies a victim's economic needs.

Keyword

Cooperation ;  COOPERATION ;  DECISION-MAKING ;  Equality ;  EQUALITY ;  EQUITY ;  Fairness ;  Financial overcompensation ;  INTEGRATIVE MODEL ;  JUSTICE ;  ORGANIZATIONS ;  PROCEDURAL FAIRNESS ;  SOCIAL DILEMMAS ;  Trust ;  TRUST

Abstract

Companies that are able to radically change their entrenched ways of doing things and then reclaim leading positions in their industries are the exception rather than the rule. Even less common are companies able to anticipate a new set of requirements and mobilize the internal and external resources necessary to meet them. Few companies make the transformation from their old model to a new one willingly. Typically, they begin to search for a new way forward only when they are pushed. This raises two important questions for corporate managers: (1) Is decline inevitable? (2) Do companies really need a financial downturn to galvanize change, or can they adopt new ways of doing things when not under pressure? Management theorists have observed that decline, while perhaps not inevitable, is at least very likely after a period of time. For this reason, the authors argue, it's important for organizations to develop new dynamic capabilities deliberately rather than relying entirely on their historic capabilities. In their attempt to understand what makes for successful organizational transformations, the authors studied 215 of the United Kingdom's largest public companies. The article focuses on three companies that transformed themselves - Cadbury Schweppes in packaged goods, Tesco in grocery retail and Smith & Nephew in medical devices. It compares them with three other companies from similar industries that were also successful but hadn't been required to make a dramatic shift. The authors found that the companies that transformed themselves had three fundamental advantages over their peers. First, they were able to build alternative coalitions with management. Second, they were able to create a tradition of constructively challenging business as usual. And third, they were able to exploit "happy accidents" to make strategic changes. Together these advantages helped them establish a virtuous cycle of strategic transformation.

Keyword

ORGANIZATIONS

Abstract

We theorized and tested the conditions under which cognitive team diversity is positively related to individual team member creativity. Hierarchical linear modeling results using 316 employees on 68 teams from Chinese companies indicated that a team member's creative self-efficacy moderated the relationship between cognitive team diversity and individual creativity: this relationship was positive only when creative self-efficacy was high. Further, “transformational leadership” moderated the relationship in such a way that cognitive team diversity was positively related to individual creativity only when transformational leadership was high.

Keyword

BEHAVIOR ;  DEMOGRAPHY ;  EMPLOYEE CREATIVITY ;  INNOVATION ;  KNOWLEDGE ;  ORGANIZATIONS ;  PERFORMANCE ;  SELF-EFFICACY ;  TRANSFORMATIONAL LEADERSHIP ;  WORK GROUP DIVERSITY

Abstract

This study extends research on entrepreneurial behavior by investigating the relationship between the marketing strategy innovativeness (MSI) and new product performance in technology-based new ventures in China. Specifically, premised on contingent resource-based view we argue that MSI is a firm capability that must be bundled with external managerial relationships and be deployed in the appropriate environment to ensure its success. We found that the team's extra industry relationships and market dynamism enhanced the impact of MSI on new product performance. In contrast, top management team's intraindustry relationships, financial relationships, and technology dynamism hindered the impact of MSI on new product performance. (c) 2006 Elsevier Inc. All rights reserved.

Keyword

ANTECEDENTS ;  China ;  COMPETITIVE ADVANTAGE ;  CONSEQUENCES ;  DYNAMIC CAPABILITIES ;  FIRM PERFORMANCE ;  marketing strategy ;  new ventures ;  ORGANIZATIONS ;  ORIENTATION ;  performance ;  product development ;  RESOURCE-BASED VIEW ;  strategic decision-making ;  strategy innovativeness ;  TIES ;  UNCERTAINTY

Abstract

Both Pearce and Molm have conducted research in interpersonal trust. Here we apply their work to international business by deriving hypotheses from their work, some compatible, some conflicting. We test them with data from managers in China, the United States, Hong Kong and Thailand using measures from the World Bank, World Competitiveness Report, and Transparency International and managerial interviews. We find support for Pearce's arguments on the effects of governmental facilitation on managers' trust in their business partners, and for extensions of Molm's work on reciprocal exchange to international field settings. For the conflicting hypotheses, results support Pearce's arguments that the structural assurances of facilitative governments lead to higher levels of trust in business associates.

Keyword

UNITED-STATES ;  COMMITMENT ;  governments ;  guanxi ;  ORGANIZATIONS ;  POWER ;  social exchange ;  trust

Abstract

This study explores linkages between what Chinese managers generally know about environmental issues, how strongly they value environmental protection, and different types of behaviours/actions they may take within their organizations on behalf of the environment. From a sample of 305 managers in Guangzhou and Beijing, it was found that both environmental knowledge and values are more predictive of more personal managerial behaviours, such as keeping informed of relevant company issues and working within the system to minimize environmental impacts, than more overt behaviours. Moreover, for these more personal actions, environmental knowledge and values were found to have both main and interactive effects. By comparison, it was found that both environmental values and knowledge had additive effects on managerial tendencies to initiate new programs within their domain of responsibility. Only environmental values was found to have a modest influence environmental advocacy.

Keyword

HONG-KONG ;  ORGANIZATIONS ;  PARADIGM ;  RESPONSIBLE BEHAVIOR