Showing papers by "IE University published in 2012"
TL;DR: In this article, the authors make the case for the socioemotional wealth (SEW) approach as the potential dominant paradigm in the family business field and argue that SEW is the most important differentiator of the family firm as a unique entity and helps explain why family firms behave distinctively.
Abstract: This article makes the case for the socioemotional wealth (SEW) approach as the potential dominant paradigm in the family business field. The authors argue that SEW is the most important differentiator of the family firm as a unique entity and, as such, helps explain why family firms behave distinctively. In doing so, the authors review the concept of SEW, its different dimensions, and its links with other theoretical approaches. The authors also address the issue of how to measure this construct and offer various alternatives for operationalizing it. Finally, they offer a set of topics that can be pursued in future studies using the SEW approach.
1,592 citations
TL;DR: While family business research has prominently recognized that family firms are motivated by non-financial factors, the literature has remained relatively silent about whether or not these firms are driven by financial factors.
Abstract: While family business research has prominently recognized that family firms are motivated by nonfinancial factors, the literature has remained relatively silent about whether or not these firms are...
498 citations
TL;DR: In this article, a generational perspective was adopted to investigate entrepreneurial orientation in family firms and found that the importance of non-family investors on EO is particularly strong in third-generation-and-beyond firms.
Abstract: We adopt a generational perspective to investigate entrepreneurial orientation (EO) in family firms. We test a model that determines how the influence on EO of external factors and internal factors differs in first-, second- and third-and-beyond-generation family firms. We argue that while the founder is vital in the first generation, EO is more subject to interpretations of the competitive environment in the second generation and that in the third generation and beyond, access to non-family resources drives EO to a greater extent. Our findings show that perceptions of the competitive environment and EO correlate differently in family firms, depending on the generation in charge, and it is generally stronger in second-generation family firms. Further, we find that non-family managers on the top management team makes a positive difference for EO only in the third-generation and beyond family firms. The significance of non-family investors’ on EO is particularly strong in third-generation-and-beyond firms.
404 citations
TL;DR: In this article, a study with 845 working adults across multiple organizations, the relationships between ethical leadership with positive employee outcomes were examined. And they found that ethical leadership is related to both psychological well-being and job satisfaction in employees, but the processes are different.
Abstract: The study of ethical leadership has emerged as an important topic for understanding the effects of leadership in organizations. In a study with 845 working adults across multiple organizations, the relationships between ethical leadership with positive employee outcomes were examined. Results suggest that ethical leadership is related to both psychological well-being and job satisfaction in employees, but the processes are different. Employee voice mediated the relationship between ethical leadership and psychological well-being. Feelings of psychological ownership mediated the relationship between ethical leadership and job satisfaction. A discussion of theoretical and practical implications concludes the article.
384 citations
TL;DR: This paper found that socially responsible companies whose strategic decisions have a long-term orientation are able to counteract their liability of newness and thereby generate net positive economic returns and tested these relationships by surveying the chief executive officers and presidents and studying the signature Web sites of 149 new ventures.
Abstract: Socially responsible activities help create business value, develop strategic resources, and insure against risks, but also cost money and distract management. These prior findings are mainly based on established corporations and may not extend to new ventures in which the liability of newness may suppress some positive effects and amplify some negative impacts of socially responsible activities. New ventures whose strategic decisions have a long-term orientation, however, are able to counteract their liability of newness and thereby generate net positive economic returns. We tested these relationships by surveying the chief executive officers and presidents and studying the signature Web sites of 149 new ventures. Copyright © 2012 John Wiley & Sons, Ltd.
355 citations
TL;DR: In this paper, the effect of IT investments on sales and profitability is compared with that of other discretionary investments, such as advertising and R&D. The empirical evidence derived using archival data from 1998 to 2003 for more than 400 global firms suggests that IT has a positive impact on profitability.
Abstract: Do information technology investments improve firm profitability? If so, is this effect because such investments help improve sales, or is it because they help reduce overall operating expenses? How does the effect of IT on profitability compare with that of advertising and of research and development? These are important questions because investments in IT constitute a large part of firms' discretionary expenditures, and managers need to understand the likely impacts and mechanisms to justify and realize value from their IT and related resource allocation processes. The empirical evidence in this paper, derived using archival data from 1998 to 2003 for more than 400 global firms, suggests that IT has a positive impact on profitability. Importantly, the effect of IT investments on sales and profitability is higher than that of other discretionary investments, such as advertising and R&D. A significant portion of the impact of IT on firm profitability is accounted for by IT-enabled revenue growth, but there is no evidence for the effect of IT on profitability through operating cost reduction. Taken together, these findings suggest that firms have had greater success in achieving higher profitability through IT-enabled revenue growth than through IT-enabled cost reduction. They also provide important implications for managers to make allocations among discretionary expenditures such as IT, advertising, and R&D. With regard to IT expenditures, the results imply that firms should accord higher priority to IT projects that have revenue growth potential over those that focus mainly on cost savings.
341 citations
TL;DR: In this article, Gomez-Mejia et al. analyzed the effect of family employment on performance in micro and small enterprises by combining two research perspectives that, until now, have been conducted separately: the family embeddedness perspective of entrepreneurship and the socioemotional wealth (SEW) approach to family business.
264 citations
TL;DR: In this paper, the authors explore the impact of particular corporate governance mechanisms on firm environmental performance, such as the board of directors, managerial incentives, the market for corporate control, and the legal and regulatory system.
Abstract: We build on a stakeholder–agency theoretical perspective to explore the impact of particular corporate governance mechanisms on firm environmental performance. Our empirical evidence shows that several important corporate governance mechanisms such as the board of directors, managerial incentives, the market for corporate control, and the legal and regulatory system determine firms' environmental performance levels. These results suggest that these different governance mechanisms resolve, to some extent, the existing divergence of interests between stakeholders and managers with respect to environmental activities.
241 citations
TL;DR: The empirical findings show that NBFs are more likely to ally with pharmaceutical firms with the ability to create value, as long as these firms have the incentives to use their skills to create rather than appropriate value.
Abstract: We examine how new biotechnology firms (NBFs) select pharmaceutical firms as R&D allies as a function of value creation and value appropriation considerations. We develop a theoretical framework to understand partnering decisions accounting for both, a potential partner's ability as well as incentives to appropriate and create value within an R&D alliance. Our empirical findings show that NBFs are more likely to ally with pharmaceutical firms with the ability to create value, as long as these firms have the incentives to use their skills to create rather than appropriate value. Our study highlights the double-edged sword nature of value creation skills and provides a deeper understanding into the contextual factors that determine when potential R&D partners will perceive such skills as increasing appropriation risks. Copyright © 2012 John Wiley & Sons, Ltd.
235 citations
TL;DR: In this paper, the authors examine the impact of competing logics on budgeting practices and the meanings attributed to budgetary outcomes. But they do not consider the relationship between logics and the meaning of budget outcomes.
Abstract: This paper examines the introduction of budgeting practices in situations where institutional logics are competing. The empirical cases, studied in two phases in the 1990s and in 2011, explore tensions that emerged between the new business logic, prevailing professional logic, and governance logic in the education field. We analyze the theorization of budgeting practices and their performative effect on cognition in organizations. We argue that competing logics in a field impact upon budgeting practices and theorization of the meanings attributed to budgetary outcomes. Our study contributes to the understanding of accounting in processes of institutional change, and the further development of neo-institutionalist theory by attending to the sources of practice variation and their relationship to competing logics. We advance four tentative theoretical propositions concerning the impact of multiple logics upon budgetary practices.
194 citations
TL;DR: This paper first proves NP-hardness of the BRP as well as a special case, closing open research questions, and proposes a simple heuristic based upon a set of relocation rules that is used to generate “good” quality solutions for larger instances in very short computational time.
TL;DR: In this article, a more integrative approach toward channel choice was proposed by considering all stages of the buying process (search, purchase, and after-sales), and by taking channel attributes, experience, and spillover effects into account when examining consumers' channel choice intentions.
Abstract: This article provides a more integrative approach toward channel choice than previous research by considering all stages of the buying process (search, purchase, and after-sales), and by taking channel attributes, experience, and spillover effects into account when examining consumers’ channel choice intentions. The authors show that such an integrative perspective is important as channel attributes, experience, and spillover matter for consumers’ channel choices in all stages of the buying process. Notably, the study stresses the importance of channel experience and spillover effects for explaining consumers’ channel choice intentions in the different stages of the buying process. Channel experience effects occur when using the channel increases the likelihood that the consumer will use the very same channel on the next occasion. Spillover effects result when the likelihood of using a channel in one stage of the buying process affects the likelihood of choosing that channel in another stage. The results show that both effects influence consumers’ channel choice intentions over and above channel attributes. Importantly, the model results strongly pledge for studying attribute, experience, and spillover effects simultaneously.
TL;DR: It is suggested that online deliberation over-represents young, male, and white users, attracts more ideological moderates, generates more negative emotions, and is less likely to result in consensus and political action.
Abstract: Although there has been much speculation regarding the strengths and weaknesses of face-to-face versus online deliberative settings, no studies have systematically compared the two. Drawing on a national sample of Americans who reported deliberating face-to-face and/or online, we examine these two deliberative settings with regard to the participants, the motivations, the process, and the effects. Our findings, although tentative, suggest that the two settings are distinct in several important ways. Relative to face-to-face deliberation, online deliberation over-represents young, male, and white users, attracts more ideological moderates, generates more negative emotions, and is less likely to result in consensus and political action. At the same time, online deliberators perceived online settings as more politically and racially diverse. Implications for understanding the democratic potential of different forms of deliberation are discussed.
TL;DR: The results strongly suggest that disaggregation of performance is important, because the effects of cross‐functional integration on performance are contingent and the performance effect varies from one dimension to the next.
Abstract: Purpose – Conventional wisdom has it that cross‐functional integration is a “must”. The purpose of this paper is to take an information‐processing approach to integration and elaborate the conventional wisdom by theoretical examination of both the concept of integration as well as theoretical and empirical elaboration of its link to operational performance.Design/methodology/approach – The authors develop six propositions on how cross‐functional integration affects performance and test the propositions in an international sample of 266 manufacturing plant organizations in nine countries.Findings – The results strongly suggest that disaggregation of performance is important, because the effects of cross‐functional integration on performance are contingent: even though the effects of achieved integration on several dimensions of operational performance are positive, the performance effect varies from one dimension to the next. This is an important finding given that performance has typically been treated at...
TL;DR: C Cano, L Varona, R Menendez, Fundacion para la Conservación del Quebrantahuesos, Junta de Castilla y Leon and SEPRONA for information on poisoning events as mentioned in this paper.
Abstract: We thank C Cano, L Varona, R Menendez, Fundacion para la Conservacion del Quebrantahuesos, Junta de Castilla y Leon and SEPRONA for informationon poisoning events Toxicologic analyses performed at IREC were funded by Principado de Asturias PMT was supported by a postdoctoral grant funded by Junta de Comunidades de Castilla-La Mancha and Fondo Social Europeo
TL;DR: This article investigated the impacts of political instability and pro-business market reforms on national systems of innovation (NSI) across a range of developing and developed countries, and found that strong influence of political uncertainty on inputs to national innovation systems.
TL;DR: The authors found that the buffering effects of supervisor support on the stressor-strain relationship depended on source congruence and gender role effects, although they did not find a reverse buffering effect for the role conflict conflict relationship.
Abstract: The buffering effects of supervisor support on the stressor–strain relationship have proven elusive in prior research (Beehr, Farmer, Glazer, Gudanowski and Nair (2003), ‘The Enigma of Social Support and Occupational Stress: Source Congruence and Gender Role Effects,’ Journal of Occupational and Health Psychology, 8, 220–231). We built on emerging work on source congruence and conservation of resource theory to test a series of hypotheses intended to clarify these mixed findings. Using a sample of 768 employees from 45 organizations in North America, results from moderated regression analyses, showed that the effects of supervisor support on the stressor–strain relationship depended on source congruence. In accordance with our predictions, although we found buffering effects for the physical stressors–strain relationship, we found a reverse buffering effect for the role conflict–strain relationship. These differential buffering effects did not emerge when considering coworker support. We discuss the impli...
TL;DR: In this article, a diary study among 75 Spanish dual earner couples investigated whether emotional labor performed by employees at work has implications for themselves and for their partner at home, and they found a bi-directional crossover of surface acting at home and well-being between both members of the couple.
TL;DR: In this paper, the effects of peer feedback on MBA students' self-ratings of leadership competence over time were investigated based on Mezirow's transformative learning theory (Mezirow, 1991).
Abstract: Based on transformative learning theory (Mezirow, 1991), our study investigates the effects of peer feedback on MBA students' self-ratings of leadership competence over time. A total of 221 individ...
TL;DR: Based on the knowledge-based view of inter-firm collaboration, the authors develops and proposes a parsimonious taxonomy of how buyers and suppliers develop knowledge integration in terms of two mechanisms: joint sense meaning and joint decision making.
TL;DR: In this article, the authors argue that academic research is a valuable and often underutilized resource that can help standard setters and policymakers understand the possible effects of accounting standards and regulations.
Abstract: This paper provides an overview of why, and how, academic research can assist regulators and standard setters in evaluating ex ante and ex post the effects of standardization and regulation of corporate financial reporting and disclosure. We argue that academic research is a valuable and often underutilized resource that can help standard setters and policymakers understand the possible effects of accounting standards and regulations. We give an overview of approaches that can, and are, used for this objective and provide selected examples to illustrate how academic research can inform standard setters and regulators.
TL;DR: In this paper, the appropriate cost of capital for a renewable energy project depends upon an accurate measure of investment risk Employing the conceptual framework of a commonly accepted asset pricing model, the risk faced by renewable energy investors in large emerging markets was analyzed.
TL;DR: In this paper, the authors explore longitudinal relationships between job demands, job resources, and recovery opportunities and find that job demands and job resources are positively associated with job recovery opportunities over time.
Abstract: The aim of this study was to explore longitudinal relationships between job demands, job resources, and recovery opportunities. On the basis of the Job Demands-Resources model and Conservation of Resources theory we hypothesized that we would find reciprocal relations between job demands, job resources, and recovery opportunities over time. The sample was composed of 502 employees from a chemical processing company in the Netherlands, and we used a time lag of 1 year. Results of structural equation modeling analyses supported our hypotheses. Specifically, it was found that Time 1 (T1) workload was negatively related and autonomy positively related to Time 2 (T2) recovery opportunities. Additionally, T1 recovery opportunities had a negative effect on T2 workload and positive effects on autonomy and feedback. Overall, the findings suggest the presence of a positive upward spiral between job demands, job resources, and recovery opportunities.
TL;DR: This article empirically validate the existence of the three customization gestalts and subsequently, analyzes the order management challenges and solutions in each gestalt in a sample of 163 MTO production processes embedded in seven different supply chains.
Abstract: Make-to-order (MTO) products may be either customized or standard, and customization can occur either at the configuration or component level. Consequently, MTO production processes can be divided into three customization gestalts: non-customizers, custom assemblers, and custom producers. In this article, we examine how the multilevel nature of customization affects order management in processes that produce complex MTO products. We first empirically validate the existence of the three customization gestalts and subsequently, analyze the order management challenges and solutions in each gestalt in a sample of 163 MTO production processes embedded in seven different supply chains. In the analyses, we follow a mixed-methods approach, combining a quantitative survey with qualitative interview data. The results show that important contingencies make different order management practices effective in different gestalts. Further qualitative inquiry reveals that some seemingly old-fashioned practices, such as available-to-promise verifications, are effective but commonly neglected in many organizations. The results also challenge some of the conventional wisdom about custom assembly (and indirectly, mass customization). For example, the systematic configuration management methods—conventionally associated with project business environments—appear to be equally important in custom assembly.
TL;DR: In this paper, the authors explore how board remuneration committee (Remco) decisions about executive pay are influenced by pay consultants and find that Remcos are proactive in managing pay policy, conscientious in seeking to ensure that pay is appropriate and not over-generous.
Abstract: This paper explores how Board Remuneration Committee (Remco) decisions about executive pay are influenced by pay consultants. Drawing on resource dependency theory and case study evidence from five companies, the paper illuminates the complexities of the pressures and processes confronting both Remcos and pay consultants in the determination of executive pay awards. In contrast to ‘managerial power’ arguments, it demonstrates that the Remcos are proactive in managing pay policy, conscientious in seeking to ensure that pay is appropriate and not over-generous, and that pay consultants are independent and take their instructions entirely from the Remco. Nevertheless, Remcos' understandings of the wider pay environment, informed by the comparative data supplied by pay consultants, constructs a climate in which the Remcos come to perceive a need for periodic upward pay adjustments to ensure that executive remuneration is consistent with external benchmarks if they are to avoid recruitment and retention problems.
TL;DR: Results showed that psychological detachment from work and relaxation buffered the negative impact of role conflict on some of the proposed outcomes and suggest a differential pattern of the recovery experiences in the health impairment process proposed by the JD-R model.
Abstract: Based on the Job Demands-Resources (JD-R) model, the current study examined the moderating role of recovery experiences (i.e., psychological detachment from work, relaxation, mastery experiences, and control over leisure time) on the relationship between one job demand (i.e., role conflict) and work- and health-related outcomes. Results from our sample of 990 employees from Spain showed that psychological detachment from work and relaxation buffered the negative impact of role conflict on some of the proposed outcomes. Contrary to our expectations, we did not find significant results for mastery and control regarding moderating effects. Overall, findings suggest a differential pattern of the recovery experiences in the health impairment process proposed by the JD-R model.
TL;DR: In this paper, a longitudinal study among ethnic migrants from Russia to Finland examined the relationships between anticipated and perceived discrimination, ethnic and national identities, and outgroup attitudes towards the national majority group.
Abstract: This longitudinal study among ethnic migrants from Russia to Finland (N = 127) examined the relationships between anticipated and perceived discrimination, ethnic and national identities, and outgroup attitudes towards the national majority group. The study included one pre-migration and two post-migration assessments. First, associations between the variables studied were tested using a conventional autoregressive sample-level modelling approach. Second, individual trajectories and the associations between the individual-level changes in the variables included in the models were tested. Although there were no sample-level effects over time, there were significant relationships between changes in discrimination and changes in identification and outgroup attitudes at the individual level. The results indicated that changes in perceived discrimination were not reflected in increased ethnic identification. However, participants who perceived higher levels of discrimination after migration than they anticipated before migration were, in the post-migration stage, more likely to disidentify from and to increasingly show negative attitudes towards the national majority group. The study complements previous research by examining the identity and attitudinal reactions to perceived ethnic discrimination starting from the pre-migration stage and highlights the value of incorporating both group and individual perspectives to the research on perceived discrimination. Copyright © 2012 John Wiley & Sons, Ltd.
TL;DR: In this article, the natures, histories, similarities, similarities and differences of, and between, corporate communication and corporate marketing are discussed. But the authors also found similarities in terms of the importance accorded to identities (an identity-based view of the corporation can be significant here) and are mindful of the impact of ethics and note common grounds in their analytical focus.
Abstract: Purpose
– The purpose of this paper is to explicate the natures, histories, similarities and differences of, and between, corporate communication and corporate marketing.
Design//methodology/approach
– The modus operandi of the article is to map these two territories and, by this means, afford assistance to scholars and practitioners within the communications and marketing domains who share the authors' intellectual and instrumental interests in these two territories. As such, the article seeks to provide a general introduction to the nature of these two fields along with their bases and rationales.
Findings
– Whilst there are significant differences between corporate communication and corporate marketing, the authors also found similarities in terms of the importance accorded to identities (an identity‐based view of the corporation can be significant here) and are mindful of the impact of ethics and note common grounds in their analytical focus. Both areas are also inextricably linked by virtue of their foci on corporate‐level concerns rather than product‐related concerns that have, for the main, predominated vis‐a‐vis traditional modes of communication/PR and marketing.
Research limitations/implications
– From a theoretical point of view the paper invites to explore the synergies between these two disciplines. From a practical point of view practitioners are invited to rethink their communications under the lens of corporate marketing and corporate communication.
Originality/value
– The contribution of the paper is to provide an extensive literature review of the two fields that uncovers the theoretical backgrounds of both disciplines, their nature and analytical focus. Also, the value is to compare these two fields one with the other.
TL;DR: A literary review of the concept of University Social Responsibility (USR) and sustainability programs worldwide, grouped into eight research streams: conceptual framework, strategic planning, educating on USR, spreading USR and reporting and USR evaluation.
Abstract: Higher education institutions worldwide have begun to embrace sustainability issues and engage their campuses and communities in such efforts, which have led to the development of integrity and ethical values in these organizations and their relationships with stakeholders. This study provides a literary review of the concept of University Social Responsibility (USR) and sustainability programs worldwide, grouped into eight research streams: conceptual framework, strategic planning and USR, educating on USR, spreading USR, reporting and USR, evaluation of USR, barriers and accelerators and case studies. The aforementioned research streams served as a context to explore best practices in sustainability on a global basis.
TL;DR: This article found that it is perceived disagreement that is strongly related to experiences such as interest/enjoyment, medium levels of objective disagreement attenuate confusion and these associations depend on the topic discussed and are subject to some critical thresholds.
Abstract: Little is known about whether deliberative experiences are affected by participants' perceptions of disagreement or by what is expressed during deliberation. Drawing on participants in online deliberations, we find that (a) it is perceived disagreement that is strongly related to experiences such as interest/enjoyment, (b) medium levels of objective disagreement attenuate confusion, and (c) these associations depend on the topic discussed and are subject to some critical thresholds. These results have both theoretical and practical implications. They suggest that (a) perceptions of disagreement, although not clearly indicative of what transpires in deliberation, are consequential, (b) objective disagreement exerts nuanced effects that do not always parallel those of perceived disagreement, and (c) disagreement should be assessed in an issue-specific manner.