Executive turnover – Firms’ subsequent performances and the moderating role of organizational characteristics

I apply context-emergent turnover (CET) theory to investigate how different organizational characteristics moderate the effect of executive turnover on firm performance. I suggest and investigate different organizational characteristics as contextual factors. I find that executive turnover reduces future sales and employment growth, and show that three organizational characteristics (the firm's age, top management tenure, and employee tenure) moderate this effect. These results contribute to our understanding of the role of context in moderating executive turnover. Previous studies that examined the performance effects of executive turnover have often struggled to prove the causality between this event and a firms' post-turnover performance conclusively. The problem is that executive turnover is often correlated with a firm's current performance and expected future challenges. I address this endogeneity problem by exploiting the exogenous variation in firms' performances following 516 top managers' unexpected deaths. I use a matched sample to investigate which organizational characteristics that mitigate the negative effect on the firms' subsequent performances resulting from these executive turnovers. I obtained this sample randomly from a comprehensive dataset containing yearly observations of all Danish firms from 1995 to 2007.     

Managerial incentive, organizational slack, and performance: empirical analysis of Japanese firms’ behavior

The main purpose of this study is to investigate how organizational slack is created and how it affects a firm’s performance. To address these questions, we construct three equations: managerial incentive function, organizational slack formation function and performance function, and we apply 3SLS simultaneously to these functions by using the data sets of 2,791 Japanese firms from the years 2001 and 2006. From the empirical analysis of these Japanese firms, we obtain the following results: a firm’s performance declines as organizational slack increases; organizational slack is affected by annual change rate of revenues but not by managerial incentive; managerial incentive decreases as a firm’s performance improves while it increases as the structure of corporate governance is strengthened.     

When do host country nationals help expatriates? The roles of identification with the multinational enterprise and career development support by the subsidiary

In this study, we examine the roles of the host country nationals (HCNs)' identification with the MNE and perceptions of subsidiary's career development support as key factors in explaining the HCNs' decisions to provide help to expatriates. Using data collected in four countries (Australia, China, India, and Singapore), we show that HCNs' identification with the MNE and subsidiary's career development support are positively related to their extra-role helping behavior toward the expatriates. Further, the positive relationship between MNE identification and extra-role helping behavior becomes stronger when HCNs perceive that their career development is well supported by the subsidiary. We also provide post-hoc analyses to explore the potential differences of the four host countries in these relations.     

‘Training,it's a load of crap!’: the story of the hairdresser and his ‘Suit’

Many managers of small and medium-sized enterprises (SMEs) are more concerned about survival rather than growth. There are consistent findings that indicate managers in SMEs do not respond favourably to offers of HRD interventions and government policy now recognizes the value of informal learning and demand-led intervention. A social constructionist approach is suggested to consider engaging and working with SME managers. A framework of SME ‘worlds’ is considered before the case of one SME is examined. Using data from three different sources, the various positionings are considered. The case shows how from an apparently antagonistic view of external training, the manager was prepared to allow a coach/mentor to work with him towards his vision for expansion and growth. Conclusions are provided concerning engagement and stretch with SMEs, policy and future funding for HRD and the definition of skills development.     

Beyond the “silo view” of strategic management and corporate governance: evidence from Fiat,Telecom Italia and Unicredit

While corporate governance and strategic management have for a long time suffered from artificial separation and, therefore, generally been tackled in a secluded manner, their combined organizational impact makes them stringently related to one another in the firms’ evolution. In this paper, we argue that, transcending the “silo view” of corporate governance and strategic management, time has come to acknowledge that, depending on circumstances and time periods, within a firm is possible to detect the relative dominance of corporate governance over strategic management, rather than the leadership of strategic management over corporate governance. Drawing on a contingency approach, we dissect the relationships (and the mechanisms that control it) between the strategic function (i.e., which defines the firms’ strategy and supervisions its implementation) and the governance function (i.e., the congruence assessment between the firm strategy selected and the interests of the ownership and of other relevant stakeholders represented in the board of directors and the effectiveness appraisal of the entrepreneurial action). Then, by performing a thorough retrospective qualitative analysis of three relevant case-histories of Italian firms (Fiat, Telecom Italia and Unicredit) operating in three different industries (automobile, banking and telecommunications), we surmise that, either in corporate governance (board) oriented or in strategic management (CEO) oriented companies, the ‘real’ problems arise when the quality of corporate governance or strategic management is poor. Interestingly, we eventually suggest to adopt a value-based approach to the relationship between corporate governance and strategy that may fruitfully complement the contingency perspective taken at the onset of the work.     

Permanently ‘in process’: the intersection of migration,work identity and the reality of human resource development in the South African context

This article explores the experiences of skilled Zimbabweans who migrate, only to experience de-skilling upon securing employment in South Africa (SA). This is due to various factors such as insufficient bridging social capital and xenophobia and is exacerbated by the inability of the Human Resource Development Strategy for South Africa (HRD-SA) to cater for their employment needs. The article is based on qualitative research conducted within a phenomenological paradigm with Zimbabwean migrant women residing in Port Elizabeth, SA. The Zimbabwean context is discussed, as well as the mixed migration methods utilized and the subsequent negative effect that deskilling and under-employment have on the self-identity. It is argued that work constitutes an important signifier of identity, yet the HRD-SA and practice excludes migrants from achieving their potential, thus resulting in brain waste and downward status mobility. In the final section implications for HRD practice are discussed and recommendations made.     

Stem Cell Research, Regulatory Regimes, and Citizens’ “Calculus of Consent” in the European Union

What factors affect support for the development of human embryonic stem cell (hESC) research? Ordered logit analysis of responses to a 2005 Eurobarometer survey finds that Europeans with greater trust in the European Union and national hESC regulatory systems report significantly more support for hESC research. Higher levels of religiosity and concern for the moral status of the fetus reduce support for hESC research, while citizens more interested in politics, those getting their news from the print media, more highly educated respondents, and those reporting higher knowledge about stem cells tend to be more supportive of the technique. Nevertheless, the objectively more knowledgeable citizens exhibit less consistency in their support.     

Introducing the expatriate ‘Entry-Mode’: an exploratory qualitative study of a missing link in global mobility and expatriate management research

ABSTRACT

This article introduces the novel concepts of expatriate ‘entry-modes’, ‘comb-patriates’, and ‘Fourth-Country Nationals’ (FCNs), emerging from an exploratory qualitative investigation of 51 Scandinavian expatriates in Hong Kong. Global mobility research has traditionally been overly focused on the characteristics and background variables of expatriates or accumulated experiences after arrival, and has neglected the phase and mode of entering the new host country. Unveiling new global mobility patterns is significant for multinational enterprises’ (MNE) global talent recruitment, and has implications for training and development. This is due to directing the focus towards the increasing numbers of those individuals who are not expatriating in the conventional linear fashion, such as between an MNE’s headquarter (HQ) and its subsidiaries overseas. The critical stance taken in this article is articulated through a theoretical lens comprising a social constructionist epistemology. Theoretical contributions, future research avenues, as well as managerial relevance and policy implications are also discussed.     

Headquarters′ monitoring mechanisms,subsidiaries’ financial slack,and the contingent role of subsidiaries′ external embeddedness

Within MNCs’ foreign subsidiaries financial slack, i.e., uncommitted financial resources in excess of those needed for current operations, may incur costs for headquarters. These costs may emanate from subsidiaries' decision to forego investment opportunities and stockpile cash instead, which, in turn, may lead to fewer resources being available for redistribution within the organization. From an agency theory perspective, headquarters can minimize these costs through monitoring mechanisms. While agency theory is considered theoretically appropriate for the study of the headquarters-subsidiary relationship, it reflects a rather undersocialized manifestation of human behaviour, which in turn limits its applicability. In this paper, we attempt to address this limitation by suggesting and empirically exploring that the effect of monitoring mechanisms is dependent (1) on the different types of monitoring used, and (2) on subsidiaries' external embeddedness. Drawing on empirical evidence from 94 subsidiaries of foreign multinationals operating in Greece, we provide some initial evidence on the differential impact of monitoring through expatriates and monitoring through bureaucratic processes. Most importantly, we show that subsidiaries' structural embeddedness moderates both associations. In doing so, we reveal that whether subsidiaries behave opportunistically or as good citizens is partially determined by the social context in which they are embedded. An unexpected finding concerns the positive effect of the origin of the CEO on subsidiaries' financial slack for expatriates compared to local managers. This finding underscores the importance of the CEO identity, and highlights the need for future research exploring its effect on subsidiaries' performance.     

Hurricane Katrina, the Crisis of Leadership, and Chaos Management: Time for Trying the ‘Surprise Management Theory in Action’

Four years have gone by since the historic Hurricane Katrina hit and drowned the city of New Orleans and caused a massive crisis of, and a global case of grand failure in, governance, leadership, and public management. Advancing on an earlier work published in Public Administration Review (Farazmand 2007), in which a global case of grand failure was established with several lessons drawn for future crisis management, this article argues further for developing and applying a theory of ‘surprise management’ to manage future crises and chaotic situations. Crises are borne out of natural and human made disasters, catastrophes, revolutions, and rapidly changing emergencies. Surprise management is the best approach to managing or coping with crises and crisis driven emergencies.     

Conquering ‘the tyranny of distance’: Australian–European economic and geopolitical relationships past,present and future

Australia today remains a continent adrift in a rapidly transforming world. It is economically dependent on China, aligned militarily with the US and yet socio-culturally still profoundly European in outlook. In this article, we reflect on the trends, challenges and opportunities that are likely to define and redefine Australia's interaction with Europe at a macro-level. We focus on eight key macro-level themes: historical connections, labour and migration, geopolitics and security, macro-economic relations and prospects, business relations and investment, technology and innovation, entrepreneurship, and environment and sustainability. We find that while Europe and Australia remain poles apart regarding several pressing global matters, from military and security alliances to official policy on climate change, there are also areas in which the potential for closer engagement are increasingly promising, including trilateral trading relationships with Asia, foreign direct investment and business-to-business relations, digital business, innovation and entrepreneurship, and business-driven innovation to combat global warming.     

Making ‘my’ problem ‘our’ problem: Warfare as collective action,and the role of leader manipulation

Warfare is a collective action problem, and groups often stand to benefit from the quick and coordinated action that leaders can provide. This basic principle is as true in modern political contexts as it has been across our evolutionary history, and there is growing evidence that leadership has evolved, in part, to solve such collective action problems. Despite the material and reproductive benefits of leadership for groups, leaders may also seek private gains at the expense of group interests. Drawing upon insights from social and evolutionary psychology, I explain how leaders solve collective action problems in warfare, but also how leaders manipulate audience preferences when their own interests do not align with group interests. Specifically, when leaders anticipate great private gain from foreign aggression while facing steep public resistance at home, leaders will misframe the conflict as defensive rather than offensive in nature. I provide an evolutionary analysis that explains why leaders exploit this framing specifically, and I identify the specific aspects of conflict framing that are most likely to be exploited toward this end.     

Negotiating new meanings of ‘leader’ and envisioning culturally informed theories for developing African-American women in leadership roles: an interview with Patricia S. Parker

The aim of the human resources function (management and development) in the organizational context is to ensure the availability of competent, motivated and learning employees to the firm to facilitate the achievement of its business objectives. The HR function has been quite successful in performing its role in terms of developing capacity, knowledge, attitude and skills of employees. However, in the recent past a shift has been taking place in the expected model role from both the HR function and the HR manager. This new role is that of active partner along with other functionaries like production, finance, marketing, etc., equal if not more important. Therefore, HR is no longer a passive function. This has two implications for the HR managers and practitioners. First, it will require the HR function and persons dealing with it to provide more inputs related to human resources at the strategy formulation level. Second, it will require HR to demonstrate that investment in human resources contributes to business results. However, there is a paucity of empirical work in our country to support the assertion that investments in HR have an impact on firm performance. It is in this context that the present study of eighty-four Indian firms was carried out to answer the question of whether investment in HR contributes to firm performance.     

Ownership structure,investors’ protection and corporate valuation: the effect of judicial system efficiency in family and non-family firms

Research on the effect of ownership structure on firm performance shows no convergent evidence concerning the sign and form of the above-mentioned relationship. Similarly, there is no homogeneous evidence documenting family ownership concentration is always positively or negatively correlated with firm value, or irrelevant. This paper analyses whether and how the de facto investor protection provided by the judicial system affects the relationship between corporate performance and ownership structure in 1314 firms operating in four European countries (Germany, France, Italy, and Spain) over a five-year period, 2010–2014. Moreover, we analyse whether judicial system efficiency influences if and how family firms in the controlling coalition collude for expropriating minority shareholders. Our findings show that the level of shareholder protection, derived from judicial efficiency, is relevant to the relationship between ownership structure and firm performance, thus corroborating literature in that institutional contexts matter in explaining such relations. The results suggest the need for more efficient external mechanisms of corporate governance to facilitate investment in equity capital, thus decreasing the country risk perceived by investors.