Career patterns of top managers in Europe: Signs of further globalisation?

Investigating career patterns of top managers has been a prominent topic in European Management Journal (EMJ) since the 1990s. Our article contributes to ongoing debates about national differences in top managers' career patterns between European countries. An open question is whether globalisation processes may have challenged the existence of specific career patterns and whether they may have transformed the profiles of business elites in Europe. Our article uses recent data from four European countries (France, Germany, Switzerland and the UK), collected in a way similar to an EMJ article published in 2013, with the objective to assess potential developments that have taken place over the last decade. Some of the major changes relate to the growing relevance of business school degrees or certificates (such as MBA degrees), a higher proportion of non-nationals and women on boards, more managers with international experience and an increasing number of top managers with a prior career with auditing or consulting firms. The article provides not only new empirical insights, but also a review of the key characteristics of top managers’ careers, some methodological reflections on cross-national comparison and new research avenues at the cross-roads of career literature and upper echelons literature. By shedding light on the career patterns of key decision-makers in large European firms, the article offers new insights for researchers, educators and managers alike.     

The Influence of Stakeholders on the Environmental Strategy of Service Firms: The Moderating Effects of Complexity,Uncertainty and Munificence*

Drawing on the resource‐based view of the firm, we examine how complexity, uncertainty and munificence in the general business environment moderate the association between a firm's stakeholder integration capability and its environmental strategy. Our data were drawn from 134 ski resorts in 12 countries in western Europe and North America. Our study finds that (1) an organizational capability of stakeholder integration is associated with a service firm's adoption of a proactive environmental strategy; (2) an uncertain business environment has a direct positive influence and a complex business environment has a direct negative influence on a firm's environmental strategy; and (3) complexity has a negative moderating influence on the relationship between a firm's stakeholder integration capability and its environmental strategy.     

Leadership in the Academic Field of Business and Management and the Question of Country of Origin: A Commentary on Burgess and Shaw (2010)

With globalization in business academia expanding and deepening, it is timely to question the validity and utility of the concept of country of origin as a base category for comparative cross‐cultural research and theory development. In their contribution in the British Journal of Management, Burgess and Shaw (2010) rank the most productive institutions and countries contributing to board membership of top ranked journals on the basis of their country of origin. Taking their findings as a starting point for our discourse, we re‐analyse their database, in addition to our own investigations. We contend that while country of origin may be an appropriate category for between‐countries comparison of multinational entities, it is of little use when comparing meta‐national institutions, such as top tier refereed journal boards and the globalized business/management schools from which they are drawn. Our findings point towards the need for finer differentiation of what constitutes the concept country of origin, but also that its relevance should be questioned in, at least, globalized contexts. The question we pose extends to any pertinent ‘globalized’ topic within and without business and management.     

Changes in the association between job decision latitude and work engagement at different levels of work experience: A 10-year longitudinal study

ABSTRACT

This study set out to explore the effects of accumulating work experience on the association between job decision latitude and its interaction with job demands and work engagement. Our ten-year longitudinal study followed 333 junior physicians in postgraduate training at baseline. We used self-report measures in four assessment waves, and we conducted path analyses to investigate linear and curvilinear regression effects. Results show that high job decision latitude was associated with high work engagement at all levels of work experience, with strongest associations at baseline and after ten years. Only for novices did job decision latitude buffer the negative association between job demands and work engagement. At the stage of high work experience, low levels of job decision latitude were weakly associated with work engagement, whereas with higher levels of job decision latitude, the positive association seemed to strengthen. Our findings indicate that job decision latitude is a key job resource at all stages of work experience, with stronger effects among novices and experts. Organisations’ work design efforts should include job decision latitude to promote work engagement across employees’ different career stages, with consideration to job entrants and experts in order to tailor specific work design solutions.     

Can the Augmented Solow Model with Migration Explain the Italian Internal Brain Drain?

We extend the Dolado et al. (1994) model to both inflows and outflows of migrants and assume that they have a human capital endowment that contributes to increase/decrease the stock of human capital in the receiving/sending economy. We derive the conditional convergence equation in which the impact of migration flows on the growth rate is disentangled in a pure quantity effect and in a quality or composition effect of immigration and emigration rates that accounts for the relative human capital endowment of migrants with respect to resident population. Next, we test the model with Italian regional data for the 1970–2005 time period. We find that the model provides a good explanation of the Italian experience. The quantity effect is negative for the immigration rate and positive for the emigration rate, whereas the composition effect is positive for immigration and negative for emigration. Finally, we separate the centre‐north from the south and find that the composition effect of emigration is stronger for the latter. We interpret these results as a clear evidence of a brain drain from the Mezzogiorno to the centre‐northern regions.     

Is the transition to formal leadership caused by trait extraversion? A counterfactual hazard analysis using two large panel datasets

Extraversion is a consistent predictor of informal leader emergence, however little is known about extraversion’s causal effect in terms of predicting the transition to formal leadership. Using two large household samples from Germany (Study 1, n₁ = 6,709) and Australia (Study 2, n₂ = 6,056), we test whether trait extraversion predicts the transition of employed persons into formal leadership positions. Using survival analysis with Cox proportional hazards regression within a non-linear generalised additive modelling (GAM) framework, we modelled the relationship between extraversion and the ‘hazard’ of transitioning into a formal leadership role. After controlling for sex, height, age, education and the other big five traits, we found that extraversion consistently predicted the hazard of transitioning into a formal leadership role over time. Given the importance of leadership to life outcomes, being more likely to transition into a formal leadership role may afford extraverts with considerable cumulative benefits over their career.     

Innovative Knowledge Transfer Patterns of Group-Affiliated Companies: The effects on the Performance of Foreign Subsidiaries

The objectives of this paper are to determine the patterns of innovative knowledge transfer strategies of globalized group-affiliated companies (GACs) from emerging markets and to assess the effects of these patterns on the performance of foreign subsidiaries. The sample are comprised of 52 Korean business groups, called chaebols, which consist of 181 parent firms and their 1,068 foreign subsidiaries as of the end of 2009. In the study, we employ the perspectives of organizational learning and internal resource-based theories of the organization, and the results are assessed based on cluster and post-hoc regression analyses. The authors identify five distinct groups of innovative knowledge transfer patterns, i.e., 1) small inactivator, 2) hyperactive transferor, 3) laissez faire exploiter, 4) hands-on exchange avoider, and 5) moderate researcher. Our cluster and post-hoc regression analyses support the main hypotheses, i.e., 1) there will be differences in patterns of innovative knowledge transfer strategies of globalized GACs within chaebols; and 2) these differences will influence the performance of foreign subsidiaries. Our contribution to the extant literature is to fill the vacuum that exists in the current empirical studies on 1) a positive vs. negative balance of exploratory and exploitative innovative knowledge exchanges among GACs within a business group and 2) the phenomenal patterns of innovative knowledge transfer and their effects on the performance of foreign subsidiaries in the context of emerging market GACs. Therefore, our analyses advance the research in the area of innovative knowledge management in the context of the emerging market business groups.     

The nature of faculty work: A Canadian and US comparison

Abstract

Results based on 187 responses to an electronic survey from Canadian and US faculty in human resource development and adult education identified career paths of faculty, the nature of the job (i.e. how faculty divide their time between teaching, research and service), the nature of their programmes, and the key changes, issues and trends in their respective fields. There were few differences between the two countries. Where possible, findings also are compared to two previous studies. Identifying what drew faculty to academia and how they spend their time may enhance understanding of how they derive meaning and satisfaction from work. This understanding could help identify ways to mitigate faculty turnover.     

Deus ex machina? Career progress and the contingent benefits of knowledge management systems

Knowledge management (KM) systems are increasingly common in firms which promote self-managed careers and autonomy, such as professional service firms. Yet, whether or not KM systems provide real benefits is underexplored. Our focus is on the impact of KM use on the career progress of service professionals. We use recorded logs of employee KM system use and career progress data over a two-year period within a strategy consultancy to study the effect of KM use on career advancement speed. We present a contingency-based model to KM use effectiveness, showing that, although KM use generally boosts career progress speed, (a) benefits vary by seniority (more junior employees benefit more), (b) benefits vary by knowledge type (encyclopedic vs. social), with social knowledge use mattering more to career progress, and (c) those service professionals who tap a wider range of knowledge sources progress faster in their careers. We also find mediating effects, specifically that KM system use operates partly by accelerating the development of task-related skills. We draw the conclusion that KM systems contain neither a magical Deus ex machine for boosting employee performance and progress but nor do they warrant excessive skepticism, rather their impact on careers is contingent on employee needs.     

A 6/5-approximation algorithm for the maximum 3-cover problem

In the maximum cover problem, we are given a collection of sets over a ground set of elements and a positive integer w, and we are asked to compute a collection of at most w sets whose union contains the maximum number of elements from the ground set. This is a fundamental combinatorial optimization problem with applications to resource allocation. We study the simplest APX-hard variant of the problem where all sets are of size at most 3 and we present a 6/5-approximation algorithm, improving the previously best known approximation guarantee. Our algorithm is based on the idea of first computing a large packing of disjoint sets of size 3 and then augmenting it by performing simple local improvements.     

The micro-foundations of industrial diversification through foreign acquisitions: The multifaceted role of CEO experience

This paper examines the micro-foundations of cross-border industrial diversification strategies. We study the impact of observable CEO experience attributes on the propensity to acquire foreign target firms in unrelated (versus related) industries. Our findings, based on a sample of UK-based firms that engaged in cross-border acquisitions between 2010 and 2016, support an inverted U-shaped relationship between life experience of the CEO and the likelihood of engaging in unrelated foreign acquisitions. Further, we find that CEOs' broad-based work experience, across countries or industries, is associated with a higher propensity to engage in unrelated foreign acquisitions. Finally, CEOs’ education experience in MBA-type qualifications is associated with a preference for related foreign acquisitions. We discuss the theoretical implications of these findings and outline directions for future research in the context of micro-foundations in international business, strategic leadership, and upper echelons theory.     

Forty years of European Management Journal: A bibliometric overview

The European Management Journal (EMJ) is a renowned peer-reviewed journal of international reputation in the fields of business and management research since 1982. EMJ publishes original and high-quality conceptual, empirical, and review research papers that contribute to the advancement of the body of knowledge and its application in the field. Until the time of this overview, 2164 papers (including 2004 articles, 96 editorials, 28 conference papers, 27 notes, and 3 short surveys) have been published in the journal between 1982 and 2020. We analyzed all these articles using bibliometric techniques to examine the impact of the journal’s publications, most productive and influential authors, and their contributions in the field of business and management research. Co-authorship among the top authors, co-occurrences of the topics, co-citations of the journals, bibliographic coupling of the authors, affiliating institutes, and countries were analyzed by applying network analysis techniques using VOSviewer software. The advancement of research in the field of management during the last decade is also critically discussed in order to understand recent developments in the field of business and management research.     

The problem of demand effects in power studies: Moving beyond power priming

Power in experimental research has been commonly induced by methods that raise concerns regarding demand effects. In this paper, we investigate the empirical relevance of these concerns. In an incentivized online study (N = 1632), we manipulated the method of power manipulation (power priming vs. resource allocation), the level of power (high-power vs. control), and the presence of a manipulation check after the power manipulation. We then assessed risk-taking as an outcome variable in two ways, once as a non-consequential measure (self-report measure) and twice as a consequential measure (incentivized behavioral choices). Our results show that both using power priming (vs. resource allocation) and implementing a manipulation check substantially increased the potential for demand effects as measured by the proportion of participants who were aware of the study hypothesis. In addition, we were able to replicate the positive effect of power on risk-taking previously reported in the literature. However, we only found a significant (and small) effect for our non-consequential measure of risk-taking; when risk-taking was measured with either of our two consequential measures, power had no significant impact. Our pattern of results shows that concerns about demand effects in priming studies cannot be dismissed. We advise researchers, especially those studying power, to steer away from demand-prone manipulations of power and to measure outcome variables (e.g., behavior) through consequential choices.     

Amplifying a Relational Ethic: A Contribution to PRME Praxis

Western economically driven instrumental ethics fuel the dominant institutional logic in many business schools and are associated with the negative social and environmental situation widely linked to the mode of global development. Other ethical framings have been subordinated, marginalized, or denied. Through the explicit commitment of prominent international certifying bodies of management education, educators, researchers, and practitioners will be encouraged to give increasing effect to the Principles for Responsible Management Education (PRME). The PRME is a United Nations‐led, institution‐level mechanism for reorienting the direction of business schools and for increasing both educator and student capacities to contribute to a more inclusive and sustainable mode of development globally. We propose greater emphasis be given to various forms of relational ethics from which to guide the functional aspirations of institutions. We explore the creative opportunity for institutional change by contrasting the prevailing Western economically driven instrumental institutional logic with indigenous ethical framings. We draw upon Seo and Creed's conceptual framework of institutional change to discuss two films—Mann v. Ford and Waste = Food—to bring greater attention to the generative potential of indigenous perspectives in institutional praxis. Our examples could equally invite an application of other systems of relational ethics that have been overshadowed by the current domination of economic instrumentalism in almost all realms of decision making. We conclude by providing some teaching resources that can be used or adapted for geographical‐ or disciplinary‐specific attention to the issues we raise.     

Socioemotional wealth’s implications in the calculus of the minimum rate of return required by family businesses’ owners

This paper demonstrates that the minimum rate of return (k _e ) required by family business shareholders is inversely related to the emotional endowment presented in these firms. After reviewing the socioemotional wealth (SEW) literature, we find empirical support to justify that different SEW dimensions influence k _e . Findings from a population of 207 family firms show that the identification of family members with the firm and the renewal of family bonds with the firm through dynastic succession have consistently negative impacts on k _e , while family control and influence have significantly positive impacts on k _e .     

Do Employees boost opportunities to compete abroad? A longitudinal study of family and non-family firms

This study sheds light on the contingent effect that employee human capital may have on the relationship between family involvement and internationalisation via exporting —both in terms of entry mode (how to export) and degree (how much to export). We formulate several hypotheses by drawing mainly on arguments from the resource-based view and stewardship theory. The empirical setting is a large sample of Spanish manufacturing firms (family and non-family) operating between 1991 and 2016. Our results reveal that the positive (negative) relationship between family involvement and export intensity (direct exporting) is boosted (mitigated) at higher levels of employee human capital. Our findings thus provide statistical support for a positive and significant contingent approach to the effect human capital has on the connection between family involvement and internationalisation.     

Crafting business models for conflicting goals: Lessons from creative service firms

The business model construct has become attractive to both managers and academics. It reflects how the most important organization's strategic and tactical choices regarding the allocation of resources interact in order to create and capture value. Yet with the growing entrepreneurial complexity, managers often end up pursuing conflicting and even paradoxical strategic goals, thus rendering the business modelling processes more complex, too. Well-known examples are profit versus social value, stakeholder versus company interests, exploration versus exploitation and environmental sustainability versus economic returns. The academic business model literature so far has provided limited insights on how to implement business models beyond a single goal and focused mainly on the initial strategic choice of a business model, ignoring that such salient tensions are often persistent and resurface within the business practice. In this study we leverage paradox theory to investigate how managers of creative firms make tactical choices to accommodate (not solve) salient tensions within their business models, focusing on the domains like services provided, choice of clients, networking and resourcing practices, revenue models and new venture creation. Based on qualitative case study research, we found four integrating and three differentiating decision-making tactics that managers deploy to create both economic and creative value through their business models. Adding to the business model theory, we show how business models are crafted in managerial practices by making tactical decisions to solve conflicts and paradoxes. The results equally enrich the paradox literature by providing for tactical-level approaches toward working through the paradox.     

Up Then Down: Bid‐Price Trends in Revenue Management

In the classic revenue management (RM) problem of selling a fixed quantity of perishable inventories to price‐sensitive non‐strategic consumers over a finite horizon, the optimal pricing decision at any time depends on two important factors: consumer valuation and bid price. The former is determined exogenously by the demand side, while the latter is determined jointly by the inventory level on the supply side and the consumer valuations in the time remaining within the selling horizon. Because of the importance of bid prices in theory and practice of RM, this study aims to enhance the understanding of the intertemporal behavior of bid prices in dynamic RM environments. We provide a probabilistic characterization of the optimal policies from the perspective of bid‐price processes. We show that an optimal bid‐price process has an upward trend over time before the inventory level falls to one and then has a downward trend. This intertemporal up‐then‐down pattern of bid‐price processes is related to two fundamental static properties of the optimal bid prices: (i) At any given time, a lower inventory level yields a higher optimal bid price, which is referred to as the resource scarcity effect; (ii) Given any inventory level, the optimal bid price decreases with time; that is referred to as the resource perishability effect. The demonstrated upward trend implies that the optimal bid‐price process is mainly driven by the resource scarcity effect, while the downward trend implies that the bid‐price process is mainly driven by the resource perishability effect. We also demonstrate how optimal bid price and consumer valuation, as two competing forces, interact over time to drive the optimal‐price process. The results are also extended to the network RM problems.     

Mentoring,skill development,and career success of foreign expatriates

Previous literature on foreign assignments shows a high relevance of mentors for expatriates’ success. In this study we analyse the impact of different mentor-related factors on skill and career development. Drawing on social exchange theory, we develop five research hypotheses and test them using a sample of 59 US expatriates on assignments in Germany. Linear regression modelling reveals that organizational distance between the mentee and the mentor as well as the mentor’s involvement in career planning are positively related to skill development. Furthermore, there is a positive relationship between skill development and career development. We derive important implications for the implementation of mentoring in multinational corporations. The study is of value for researchers and practitioners in the areas of human resource management and organization.     

On the consequences of scarcity mindset: How ‘having too little’ means so much for ethnic venture failure

Drawing on the psychological concept of scarcity mindset as a lens, we explore UK-based ethnic entrepreneurs' accounts of their behaviors and choices to theorize ethnic business venture failure. Our findings suggest the constraints of ‘having too little’ entrepreneurial resources can induce three organizing tensions in organizing, community embeddedness, spatial and segment spawning, and dispositional optimism––which may operate in combination or serially to precipitate ethnic venture failure. Our findings contribute to research on conflicting demands in entrepreneurship by showing how resource constraints, sometimes played out in the form of enduring inequalities within markets and society-at-large stymies the conversion of contradictory yet mutually constituting demands in organizing into potentially productive outcomes.