Organizational innovativeness: Exploring the relationship between organizational determinants of innovation, types of innovations, and measures of organizational performance

This research study examines the relationships between innovativeness of firms, their organizational characteristics, and organizational performance. Previous studies that have examined these relationships have yielded conflicting results. A fundamental assumption of this research is that these conflicting results may be due to a narrow definition of the construct of innovativeness. This research demonstrates that by using a multidimensional measure of innovativeness, the reasons for the conflicting findings of past research becomes evident. The results of this study show that substantive relationships do exist between organizational factors, organizational innovativeness, and organizational performance. These relationships, however, are complex, and can only be detected if innovativeness is measured as a multidimensional construct. Each of the organizational factors examined in this study showed significantly different effects on each dimension of two types of organizational innovativeness — technical and administrative innovativeness. Further, the results show that innovativeness does improve organizational performance. However, each dimension of the two types of innovativeness affects different aspects of organizational performance.     

Time and Organizational Learning: A Review and Agenda for Future Research

This paper examines the time dimensions of organizational learning. While several recent studies have addressed aspects of time in relation to organizational learning, the topic of time has received little attention in reviews of the field, and this promising domain of research is fragmented. The objective of this paper is to bring these dispersed conceptualizations and findings together and to provide a more solid conceptual foundation for the time dimensions of organizational learning as a new research avenue. Three sets of mechanisms are discerned: concerning time as duration; the timing of organizational learning; and the role of the past, present and future in organizational learning. Each of these perspectives offers unique insights, which when integrated can help map new directions for future research.     

The social responsibility of organizations: Perceptions of organizational morality as a key mechanism explaining the relation between CSR activities and stakeholder support

Prior research on Corporate Social Responsibility (CSR) has documented how specific CSR activities relate to responses of relevant stakeholders, mainly examining employees. However, it is as yet unclear whether these findings generalize to other types of CSR activities or to responses of other stakeholder groups. In fact, results from studies to date also show inconsistent effects in need of further explanation.In this contribution we offer a new perspective on this literature. We extend current insights on organizational CSR activities and stakeholder support, by elaborating on the psychological mechanisms that can explain these relations. We draw together recent developments on organizational anthropomorphism with insights on organizational identification, to argue that the impact of CSR activities on a broad range of stakeholder responses depends on perceptions of organizational morality. We connect prior work on organizational ethics, CSR, and stakeholder support, to social psychological theory and research on impression formation, impression management, and impression updating. This new perspective allows us to broaden the current debate on CSR and stakeholder support.Building on this analysis, we propose a new model that offers a roadmap for future research. We explain the impact of organizational CSR on stakeholder responses, by highlighting perceived organizational morality as a key mediating variable. We then proceed to consider likely moderators of this relation distinguishing between (a) characteristics of the organization, (b) characteristics of (communications about) CSR activities, and (c) characteristics of the perceivers. On the basis of this extended model we develop specific predictions, and review initial evidence supporting these prediction.     

A Systemic View of Enterprise

Abstract

Uniqueness of person, organization, and environmental situation is a fact of life. Imitating practices that occurred in a different unique environment does not work well. Improving organizational performance requires managing within the constraints of two sets of variables that are specific to each organization: variables that connect the organization to the environment and variables that support individual human performances. Organizational variables include those relevant to two specific categories of value-adding outputs (the financial marketplace and the consumer service marketplace), and four specific categories of costly but necessary inputs (money, technology, materials and labor). The paper specifies ten guidelines for understanding and managing the interplay between the organizational variables and psychological variables. The guidelines permit systemic organizational and performance management which enables organizational improvement.     

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.     

ORGANIZATIONAL PERCEPTION MANAGEMENT

The phenomena of organizational perception management is hardly new. The efforts of organizational spokespersons to protect and manage positive images, identities, or reputations of their organizations can be found in historical accounts of the Roman Catholic Church, and the universities of ancient Greece. The same perception management problems that plagued these early organizations (e.g. threats of illegitimacy due to changes in social norms; face-saving following scandals or accidents), continue to confront organizations today. During the past thirty years, these types of issues have been studied by organizational scholars in attempts to understand how perception management tactics affect the views and support critical audiences’ (i.e. those audiences on which the organization depends for support). This paper provides an overview of this research and a framework defining the primary components of organizational perception management. This framework distinguishes organizational perception management from individual perception management in terms of its practical implementation and strategic nature.     

The shifting landscape of LGBT organizational research

Over the past generation, sexual minorities—particularly lesbian, gay, bisexual, and transgender (LGBT) persons—have gained increased visibility in the public arena. Yet organizational research has lagged behind in recognizing and studying this category of organizational members. This article offers a critical review of this growing body of research. More specifically, we identify and discuss four dominant scholarly frames that have informed LGBT organizational research from the late nineteenth century to date. The frames include a “medical abnormality,” “deviant social role,” “collective identity,” and “social distinctiveness” view of sexual minorities. We argue that these frames have profoundly shaped the scope and range of organizational scholarship devoted to sexual minorities by showing that scholars using such contrasted frames have been drawn to very different research questions with respect to sexual minorities. We document and discuss the main and contrasted questions asked within each of these frames and show how they have both enabled and constrained LGBT organizational research. We conclude by calling for more attention to the frames organizational scholars adopt when studying sexual minorities, but also for more research on both minority and majority sexual orientations in organizations.     

System justification in organizational contexts: How a Motivated preference for the status quo can affect organizational attitudes and behaviors

In this chapter, we put forth the premise that people's motivated tendency to justify and defend their external systems has important, and largely unexplored, implications for the field of organizational behavior. Drawing on recent theoretical and empirical work emerging from System Justification Theory (Jost & Banaji, 1994), we propose that people's desire to view prevailing structural arrangements in a positive light may uniquely contribute to our understanding of the psychology of people in organizational settings. We begin by specifically highlighting System Justification Theory's implications for: organizational change, employee citizenship behaviors, and integration of a diverse workforce. We then review empirical work on the situations in which people's system-justification motive is likely to be particularly pronounced and discuss how these situations may manifest in organizational contexts. Following this, we describe several streams of research on the consequences of the system-justification motive, with a focus on the implications of these findings for organizational members’ perceptions, attitudes, and behaviors in the workplace.     

The Leadership Effectiveness in the Process of Planned Organizational Change

Using data from public employees in Korean central agencies, this research examined the effectiveness of team building as a planned organizational change with respect to the change-oriented leadership and leader–member exchange. However, no statistically significant differences in change-oriented leadership and leader–member exchange were found either before or after planned organization change. Because this type of change did not reflect the characteristics of the Korean public sector, organizational members do not become completely institutionalized. Based on these findings, this research concludes that organizational change did not have the intended results unless organizational contexts were considered.     

Transforming Public Organizations into Learning Organizations: A Conceptual Model

The concepts of organizational learning and learning organizations have gained popularity in recent organization theory literature as complementary subjects. So far majority of studies on these issues focused on the relationship between organizational learning and its ultimate consequences such as increased innovative capacity, increased productivity, and higher competitive advantage of organizations. Nevertheless, many researchers examined the processes of organizational learning from the standpoint of private enterprises, paying little attention to the dynamics of organizational learning in public sector. This paper is aimed to fill this gap by introducing and discussing the basic constituents of a novel conceptual model which demonstrates the relevant steps in transforming of public organizations into learning organizations.     

Organizational Memory: From Expectations Memory to Procedural Memory

Organizational memory is not just the stock of knowledge about how to do things, but also of expectations of organizational members vis‐à‐vis each other and the organization as a whole. The central argument of this paper is that this second type of organizational memory –organizational expectations memory– is a necessary precondition for successfully creating and maintaining organizational procedural memory, which is at the basis of organizational performance. If members of organizations have fewer expectations of being rewarded beyond what is stipulated in formal contracts, these individuals are less likely to risk investing in collective tacit and firm‐specific knowledge resources and more likely to focus on building individual and mobile knowledge resources that have value outside the boundaries of the organization. A case study of latent organizations in the Dutch film industry is presented to support the central argument and suggests further avenues of research, in particular concerning the effects of labour mobility on organizational expectations memory.     

Leadership effects on organizational climate and financial performance: Local leadership effect in chain organizations

Leadership research to date has mainly focused on leaders' subjective effects. In this study, we examine the effect of different leadership styles on two financial measures of organizational performance and three measures of organizational climate in 50 supermarket stores of a large supermarket chain in the Netherlands. Our findings show a clear relationship of local leadership with the financial performance and organizational climate in the stores. The findings also show that the leadership styles have differential effects. Charismatic leadership and consideration have a substantial effect on climate and financial performance in the small stores, suggesting the relevance of personal leadership of the store manager in these small stores. Initiating structure leadership had no effect on financial results or organizational climate, either in the small stores or in the large stores. Based on these findings, we have formulated some avenues for further research.     

Organizational Form and Strategic Alignment in a Local Authority: A Preliminary Exploration using Fuzzy Clustering

Configurational theories assume that organizational form has important implications for the degree of alignment between top and middle management on strategic priorities. Taken in combination, the structure, process and environment of an organization are thought to have a deep pervasive influence on top management’s attempts to achieve the coordination and control required to attain organizational goals. The preliminary analysis described in this article employs fuzzy c-means clustering to explore the relationship between middle managers’ perceptions of organizational form and strategic alignment within a large local authority. The results illustrate that the clustering of managers’ perceptions of organizational structure, process and environment reflect three organizational archetypes: machine bureaucracy, professional bureaucracy and professional adhocracy. Statistically significant differences in the degree of strategic alignment between each of these organizational forms are then examined to validate the established clustering. Finally, conclusions are drawn on the theoretical and practical implications of the findings.     

Strategic planning for MIS

This article report on a study of the strategic decision to develop computerized management information systems (MIS) in 32 business organizations. THe findings suggest that this decision is a complex policy decision which involves protracted environmental negotiations, a high and escalating commitment of organizational resources, and extensive organizational preparation. Eleven organizational and environmental factors which influence the decision are identified through a literature review. The influence of these factors on the success of the decision is examined and recommendations are made for managing the decision-making process to insure improved decision outcomes.     

Well-being and organizational performance: An organizational-level test of the happy-productive worker hypothesis

Abstract

It is often assumed that happy workers are also productive workers. Although this reasoning has frequently been supported at the individual level, it is still unclear what these findings imply for organizational performance. Controlling for relevant work characteristics, this study presents a large-scale organizational-level test of the happy-productive worker hypothesis, assuming that high individual well-being leads to high individual-level performance, which should translate into high organizational performance (such as high efficiency and productivity). Job-specific employee well-being was measured as job satisfaction and emotional exhaustion. Using data from 66 Dutch home care organizations, the relationships among aggregated levels of demands, control, support, emotional exhaustion and satisfaction on the one hand, and organizational performance on the other, were examined using regression analysis. The hypotheses were partly confirmed, especially high aggregated levels of emotional exhaustion were related to low organizational performance. Although these findings support the reasoning that happy organizations are indeed productive organizations, more theorizing and more longitudinal research on the associations between individual-level well-being and organizational performance is imperative to improve understanding of these relationships. The findings underline the importance of improving worker well-being: this is not only important for individual workers, but may also have positive consequences for organizations and their clients.     

Exploring the Important Role of Organizational Factors in IT Business Value: Taking a Contingency Perspective on the Resource‐Based View

Despite the importance to researchers and practitioners of how information technology (IT) contributes to organizational performance, there is an ongoing debate about the extent of IT business value (ITBV) and how to measure ITBV. Recently, a number of researchers have applied resource‐based view (RBV) and contingency theory to investigating ITBV, with mixed results. Researchers have started to recognize that ITBV is closely associated with the synergies created from IT and a variety of complementary organizational factors, which might be an alternative way to explain these mixed results. Through a review of the literature, this paper assesses the current level of knowledge in ITBV research. It identifies that significant progress has been made in the research domain, but that in‐depth inquiry into ITBV is still needed. Based on RBV and contingency theory, a research framework has been developed. The framework suggests that firms might be able to gain significant performance improvements if IT resources are in alignment with additional organizational factors (i.e. organizational strategy, organizational process, organizational culture, organizational structure). The authors believe that this framework will be valuable in assisting researchers and practitioners in understanding the complex ITBV process.     

The role of transformational leadership in enhancing organizational innovation: Hypotheses and some preliminary findings

A wide range of factors has been found to affect organizational innovation. Of these, top managers' leadership style has been identified as being one of the most, if not the most, important. Yet, few studies have empirically examined the link between this factor and innovation at the organizational level. This study builds on the extant literature to propose four hypotheses about how top managers' leadership styles directly and indirectly (via empowerment and organizational climate) affect their companies' innovation. A multisource approach is used to collect survey data from 32 Taiwanese companies in the electronics/telecommunications industry. The findings support a direct and positive link between a style of leadership that has been labeled as “transformational” and organizational innovation. They also indicate that transformational leadership has significant and positive relations with both empowerment and an innovation-supporting organizational climate. The former is found to have a significant but negative relation with organizational innovation, while the latter has a significant and positive relationship. The implications of the findings and possible directions for future research are discussed.     

Organizational identification and workplace behavior: More than meets the eye

Organizational identification is a theoretically profound and practically important construct. It fundamentally transforms the relationship between employees and their work organizations, because highly identified employees integrate their organizational memberships with their sense of who they are. This transformation enhances highly identified employees’ work performance and contributions to the organization. However, despite considerable research on the benefits of organizational identification for employee behavior, theorizing about this effect and its underlying mechanisms remains underdeveloped. In particular, there has not been sufficient theoretical development regarding the specific types of work behaviors that follow from organizational identification, the psychological mechanisms that underlie these behavioral consequences, or observers’ evaluations of these behaviors and those enacting them. To address these issues, we present a framework of the behavioral consequences of organizational identification as well as observers’ reactions to them. Our framework highlights two distinct motivational orientations that underlie organizational identification, one that reliably leads to conformist work behaviors and one that may lead to deviant work behaviors that violate the status quo to advance organizational interests. Moreover, our framework highlights that reactions to these behaviors will differ depending on the organization’s emphasis on means versus ends. Overall, we emphasize that the benefits of organizational identification for work behavior are not as straightforward or as widely recognized as implied in prior research.     

Top employer awards: A double-edged sword?

Organizations often use top employer awards to confirm their quality as employers via an independent third party. At first, the advantages of using awards seem apparent, such as giving the organization an edge in recruitment by increasing the organizational attractiveness for jobseekers. Possible disadvantages accompanying the use of awards have received little attention. We argue that awards can cause potential applicants to pay less attention to information provided in recruitment materials that allow them to assess their organizational fit. Therefore, we investigated the influence of awards on the relationship between person–organization fit and attraction to organization as well as application decision. We include the corporate brand awareness (unknown vs. well-known) as a boundary condition. The results of our experiment show that, while awards increase organizational attractiveness, they also reduce the effect of person–organization fit on organizational attractiveness in the case of well-known organizations. Moreover, we found that awards indirectly affect application decision in the same way. Hence, successful self-selection based on fit is disturbed in this situation. Consequently, the quality of the applicant pool is reduced, resulting in a disadvantage for the well-known recruiting organization. Contrary to expectations, unknown organizations do not appear to be affected by this downside and instead benefit from awards. Our study contributes to the literature in recruiting by focusing on how awards change the impact of other information, while also highlighting potential disadvantages of employer awards.