Is corporate governance of private equity targets more effective for risk mitigation?

Journal of Management and Governance - Private equity is a source of finance and a governance device characterised by active monitoring through sponsors that intervene in targets’ corporate...     

Proactive coping with job insecurity: Is it always beneficial to well-being?

With reference to conservation of resources theory, the authors explored the role of proactive coping in relation to both positive and negative aspects of employee well-being (happiness and depression) when confronted with job insecurity. The authors investigated if coping efficiency improves when employees are highly committed to work, that is, when they have a high level of work involvement. Results of tests with samples of 162 Austrian and 444 Taiwanese employees revealed that, overall, proactive coping was positively related to employee well-being if the perception of job insecurity was low. However, in the case of high job insecurity, the beneficial effect of proactive coping was present only among employees with high work involvement. The interaction was significant for feelings of depression in the Austrian sample and for feelings of happiness in the Taiwanese sample. The findings suggest that if a person experiences job insecurity, the efficiency of proactive coping might depend on the person's work-related attitudes and beliefs, such as work involvement, that serve as coping resources.     

Are High-Performance Work Systems always a valuable retention tool? The roles of workforce feminization and flexible work arrangements

High-Performance Work Systems (HPWS) are commonly related to higher rates of employee retention. However, variations in such rates arising from differences in workforce gender composition have hardly been studied, so the aim here is to address these issues based on a sample of British workplaces. It is hypothesized that HPWS have reduced retention outcomes in highly feminized workplaces as compared to less feminized ones. An exploration is also made of how HPWS operate in conjunction with the provision of Flexible Work Arrangements (FWAs) to affect retention across both types of workplaces. The results suggest that workforce gender composition does indeed matter when it comes to the relationship between HPWS and retention. Contrary to expectations, the provision of FWAs alongside HPWS appears to be a less-than-optimal approach to retain employees, particularly in highly feminized workplaces.     

Still Searching for Excellence? International Accounting and the World's Most Outstanding Companies

This paper measures the effect of accounting policy choices in the context of Davis, Flanders and Star's (DFS) (1991) league table of the world's most outstanding companies. Our study is an investigation of the robustness of the research underlying Kay (1993). The sensitivity of the rankings to the three major conventions that are used in calculating added value are examined: depreciation policy, the estimation of the cost of capital inputs and consistency of international generally accepted accounting principles. The key finding is that the degree of disruption caused by international accounting differences is likely to be the most material. It is equivalent, in this study, to a 60% increase in the cost of capital or an 80% change in the depreciation lives of fixed assets. After adjusting towards consistent international accounting, we now find that four Japanese companies appear in the top ten. Before adjustment there were none.     

International coopetition for innovation: Are the benefits worth the challenges?

International coopetition has rarely been studied in relation to innovation. Further exploration of effects of international coopetition, i.e. the pursuit of simultaneous cooperation and competition, on a firm’s innovation performance is especially important as such a relationship is challenging with a high propensity to fail. This observation formed the point of departure for this study, which aims to increase the understanding of the effects of international coopetition on firm innovativeness and how these effects are conditioned on the magnitude of the organizational adjustments a firm introduces. We use an unbalanced panel of 9839 firms that participated in four waves of the Swedish Community Innovation Survey between 2008 and 2014 as our empirical base. We illustrate that firms that cooperate with competitors internationally are more likely to exhibit higher propensity to introduce radical innovations, yet this effect is conditioned upon the magnitude of organizational adjustments. Overall, our study contributes to the understanding of the implications of international coopetition and what a firm needs to benefit from it.     

Shareholders and managers: Who care more about corporate diversity and employee benefits?

We test two competing theories that explain a firm’s engagement in corporate diversity and employee benefits: socially responsible investment theory and management overinvestment theory. We find that publicly-traded companies with strong shareholder rights are more likely to promote women and/or minorities to the positions of CEO and board of directors in their organizations, conduct business with women- and/or minority-owned operations, and provide better family benefits to their employees than firms with strong management power. These findings indicate that the companies with strong shareholder rights engage more actively in internal aspects of CSR activities, which supports the socially responsible investment theory rather than the management overinvestment theory. Shareholders (i.e. institutional investors) tend to integrate their social goals (i.e. internal CSR issues) and financial goals into their investments. In response to these changes, managers should engage in the internal aspects of corporate social issues more aggressively as the agents of shareholders.     

Is it worth it? Linking perceived high-performance work systems and emotional exhaustion: The mediating role of job demands and job resources

The present study utilizes the job demands–resources model and examines the effects of employees’ perceptions of high-performance work systems (HPWS) on emotional exhaustion. For the needs of this study, structural equation modeling (SEM) was used on a sample of 343 frontline employees in a Greek manufacturing company. The findings do not support the critical arguments regarding HPWS, which suggest that these systems lead to work intensification and emotional exhaustion through increased job demands. In contrast, HPWS was positively related to job resources, although no support was found for a direct and negative relationship with emotional exhaustion. Last but not least, this study calculates HPWS as both a system and bundles of practices and provides useful insights regarding the differences between the two different measurement methods. Finally, theoretical and managerial implications are drawn for improving our understanding of how HPWS influences job demands and resources and employees’ emotional exhaustion.     

Does shift work lead to poorer health habits? A comparison between women who had always done shift work with those who had never done shift work

Shift work has been reported to predict health problems, and a possible explanation is that shift work may lead to poorer health habits, thereby increasing a person's vulnerability to illness. This study examined the association between shift work and health habits, as indicated by smoking, alcohol intake, physical activity and by being overweight. A questionnaire was sent to all 2795 female nurses working in the 10 hospitals of two Finnish health care districts. From the 2299 respondents, we selected those 506 shift workers who reported having always done shift work and those 183 day workers who had never done shift work. Shift workers were found to smoke more and to be overweight more often than day workers. These differences gradually increased in each successive age group, being 1.94 pack-years in smoking and 0.9 kg m^-2 in body mass index among nurses over 45 years of age. Shift work was not associated with alcohol intake or sedentary lifestyle. This evidence is compatible with the possibility that shift work in nurses increases smoking and being overweight to a degree that contributes to health problems, including coronary heart disease.     

Is white always the standard? Using replication to revisit and extend what we know about the leadership prototype

This research is a pre-registered replication of Rosette, Leonardelli, and Phillips' (2008) seminal work in leadership categorization theory. Their work established race as a component to the business leader prototype and found evidence that when a leader was given credit for successful organizational performance, White leaders were evaluated more favorably than non-White leaders. As leadership exemplars are evolving, however, a need to reexamine these relationships has emerged. Results from our replications of their first and third studies showed minimal support for the argument that being White is a component of the business leader prototype. Additionally, across six separate studies, we found no conditions in which White leaders received more favorable evaluations than their non-White counterparts. Contrary to our expectations, we found that non-White leaders received marginally more favorable ratings than White leaders in four of our studies.     

Control at work: a generalized resource factor for the prevention of musculoskeletal symptoms?

During the last two decades two potent groups of predictors for work-related musculoskeletal problems have been identified: physical work load and poor psychosocial working conditions. However, little is known about their combined effects. In this study the buffering effect of control at work with respect to the negative effects of psychological demands and physical work load on musculoskeletal problems is examined. All study variables were sampled from 431 people working in geriatric nursing homes in Germany by means of questionnaires. Main effects and interactions were tested with multiple regression analysis. The results showed that control buffered the effects of high psychological demands, but not of high physical work load; the buffering effect of control was observed only when physical work load was low. The combined effects of demands and physical work load were over-additive. Thus, the power of different predictors for musculoskeletal symptoms depended on the level of other predictors. This suggests that the efficiency of certain strategies for the prevention of musculoskeletal problems is likely to depend on the level of risk factors, with different strategies being appropriate for different levels of risk.     

Small Theories and Large Risks—Is Risk Analysis Relevant for Epistemology?

Ought we to take seriously large risks predicted by “exotic” or improbable theories? We routinely assess risks on the basis or either common sense, or some developed theoretical framework based on the best available scientific explanations. Recently, there has been a substantial increase of interest in the low‐probability “failure modes” of well‐established theories, which can involve global catastrophic risks. However, here I wish to discuss a partially antithetical situation: alternative, low‐probability (“small”) scientific theories predicting catastrophic outcomes with large probability. I argue that there is an important methodological issue (determining what counts as the best available explanation in cases where the theories involved describe possibilities of extremely destructive global catastrophes), which has been neglected thus far. There is no simple answer to the correct method for dealing with high‐probability high‐stakes risks following from low‐probability theories that still cannot be rejected outright, and much further work is required in this area. I further argue that cases like these are more numerous than usually assumed, for reasons including cognitive biases, sociological issues in science and the media image of science. If that is indeed so, it might lead to a greater weight of these cases in areas such as moral deliberation and policy making.     

The relationship between employee motivation and psychological health at work: A chicken-and-egg situation?

Although employee motivation and psychological health at work have been found to be related, it remains unclear whether motivation precedes psychological health or vice versa, and to which extent different manifestations of mental health relate to different forms of motivation at work. Using the self-determination theory and the bidimensional theory of psychological health, this complete panel design study tested the directionality of the relationship between motivation at work and psychological health at work, with a dedicated focus on the specific predictive patterns observed between 4 types of motivation at work and positive and negative indicators of psychological health at work. Eight hundred and five Canadian workers completed questionnaires at 2 times, separated by a 6-month interval. Structural equation modelling analyses indicated that only identified regulation and psychological well-being at work have a fully reciprocal relationship. Only psychological well-being at work was positively associated with the 3 most self-determined types of motivation at work 6 months later, and only identified regulation predicted psychological health at work after 6 months. External regulation was unrelated to all indicators of psychological health at work over time. By integrating 2 theoretical frameworks, this study clarified the relationships between psychological health at work and motivation at work over time.     

Overconfidence at work: Does overconfidence survive the checks and balances of organizational life?

This review considers the role of overconfidence in organizational life, focusing on ways in which individual-level overconfidence manifests in organizations. The research reviewed offers a pessimistic assessment of the efficacy of either debiasing tools or organizational correctives, and identifies some important ways in which organizational dynamics are likely to exacerbate overconfidence among individuals. The organizational consequences of overconfidence can be substantial, especially when it comes from those at the top of the organization. However, there are also reasons to suspect that the research literature exaggerates the prevalence of overconfidence.     

Paving the way for coopetition: drivers for work–life balance policy implementation

An extensive literature provides evidence that conflict between employees’ family and work duties is associated with stress and poor well-being, which have negative consequences for firms and their employees. This paper analyzes the role of two internal and two external drivers that encourage (or discourage) organizations to adopt and implement work–life balance policies. The role of external financial assistance and specific laws (external drivers), together with budgetary provision for work–life balance policies and managers’ perceptions regarding problems due to work–life conflict (internal drivers), are analyzed. Fuzzy-set qualitative comparative analysis is used to pursue the study’s research goals. Analysis of data on 132 SMEs suggests that financial issues (external financial assistance and/or a specific budget within the company) are key factors for the implementation or lack of implementation of work–life balance policies. Moreover, to implement these policies, managers need not necessarily perceive problems due to work–life conflict. Finally, work–life balance legislation seems not to play an explicit role in the relationships discussed herein. Consequences of these findings are discussed in the final section of the paper.     

South Korean women leaders’ struggles for a work and family balance

The purpose of this study was to explore the lived experience of women in leadership in Korea and to identify challenges and opportunities that they face in the process of balancing work and family life and developing leadership as women in the uniquely challenging Korean workplace where they face organizational and cultural constraints. Critical to this investigation was the understanding of concepts frequently represented in the previous literature about women in leadership: work–family life balance, women’s leadership development, and the cultural context. In-depth interviews were conducted with 18 women leaders selected through a purposeful and snowball sampling method. A thematic analysis of the interview data generated six themes including: (a) commitment to work, (b) struggles for a balance, (c) defining success, (d) gender identity, (e) being a role model, and (f) need for support. Based on the findings, we provide implications for research and practice.     

Rumination for innovation? Analysing the longitudinal effects of work-related rumination on creativity at work and off-job recovery

Work-related rumination is not a single construct, but consists of a dimension associated with negative emotions or affect (affective rumination), and a dimension associated with reflective thinking and applying strategies to solve problems (problem-solving pondering). In this three-wave longitudinal study across two years (N?=?630) we investigated whether the relationships between work-related rumination, off-job recovery, and creativity at work varied along the two dimensions of work-related rumination. In addition, we tested whether the relationships followed normal, reversed, or reciprocal causation. The results showed, first, that in a one-year perspective affective rumination, but not problem-solving pondering, was negatively related to off-job recovery and that problem-solving pondering, but not affective rumination, was positively related to creativity at work. Second, in a two-year perspective, reversed effects were detected as creativity at work was negatively related to affective rumination and positively to off-job recovery. Our results suggest that the quality of work-related thoughts determines whether the outcome is beneficial or detrimental. Occupational health interventions that only advise employees to stop thinking about work during off-job time, may therefore be too simplistic.     

Who Chooses Which Private Education? Theory and International Evidence

Private school students do not always perform better in standardized tests. We suggest that this may be explained by choice of private schooling by less capable students in countries where government schools are better suited to talented students. To assess the empirical relevance of this mechanism, we exploit cross‐country variation in the Program for International Student Assessment (PISA) 2009 survey of differences between private and state school regarding organizational features that are differently suitable for students with different learning ability. We seek and find evidence of this mechanism's empirical relevance in controlled regressions that treat within‐country variation of PISA scores as an indicator of unobserved ability to learn.     

Rewarding growth or profit?: Top management team compensation and governance in Japanese MNEs

Japanese multinational enterprises (MNEs) have been popularly characterized as pursuing competitive strategies emphasizing long-term performance, especially growth in sales and market share, rather than shorter term profit performance. Though prior research has emphasized the importance of linking compensation to organizational goals and performance, the relationship between performance and compensation of Japanese executives has received limited empirical attention. This paper provides a preliminary examination of how Japanese top management teams in the 106 largest industrial MNEs were compensated, particularly for performance on sales growth and profitability criteria, over the 1976–1993 time period. The relationships revealed between organizational performance and the bonus compensation of top management teams suggest that the emphasis of Japanese industrial MNEs regarding sales growth versus profitability may not be as simple as suggested by prior studies and popular characterizations.