Don't fix it

Next to doing nothing, fixing a problem is often the worst thing you could do with it. Fix a problem but miss the context, and you still have the problem--only it's bigger, it's weirder, it costs more, and everybody's grumpy. When something comes at you with a "problem" label, use it as an opportunity to connect things up, to explore, to ask the bigger questions, to find the new possibilities. When we react to a problem, we put ourselves into a dilemma. To find fruitful and creative solutions, we need to be in a place of choice, with many possibilities. Real participation--giving people real choice--is the only way you can bring people's intelligence and life experiences to bear on the situation at hand.     

Evaluating the Simplified Conjoint Expected Risk Model: Comparing the Use of Objective and Subjective Information

The simplified Conjoint Expected Risk (CER) model by Holtgrave and Weber posits that perceived risk is a linear combination of the subjective judgments of the probabilities of harm, benefit, and status quo, and the expected harm and benefit of an activity. It modifies Luce and Weber's original CER model—that uses objective information to evaluate financial gambles—to accommodate activities such as health/technology activities where values of the model variables are subjective. If the simplified model is a valid modification of the original model, its performance should not be sensitive to the use of subjective information. However, because people may evaluate information differently when objective information is provided to them than when they generate information on their own, the performance of the simplified CER model may not be robust to the source of model-variable information. We compared the use of objective and subjective information, and results indicate that the estimates of the simplified CER model parameters and the proportion of variance in risk judgments accounted for by the model are similar under these two conditions. Thus, the simplified CER model is viable with activities for which harm and benefit information is subjective.     

Sticky Price Models of the Business Cycle: Can the Contract Multiplier Solve the Persistence Problem?

We construct a quantitative equilibrium model with firms setting prices in a staggered fashion and use it to ask whether monetary shocks can generate business cycle fluctuations. These fluctuations include persistent movements in output along with the other defining features of business cycles, like volatile investment and smooth consumption. We assume that prices are exogenously sticky for a short time. Persistent output fluctuations require endogenous price stickiness in the sense that firms choose not to change prices much when they can do so. We find that for a wide range of parameter values, the amount of endogenous stickiness is small. Thus, we find that in a standard quantitative model, staggered price‐setting, alone, does not generate business cycle fluctuations.     

Leader negative feedback-seeking and leader effectiveness in leader-subordinate relationships: The paradoxical role of subordinate expertise

From a motivational perspective of feedback-seeking behavior, we examined the mediating role of leaders' negative feedback-seeking from subordinates in the relationship between the quality of leader-member exchange (LMX) and subordinates' evaluation of leader effectiveness, along with the moderating role of subordinate expertise in the mediated relationship. Using 151 unique matched sets of leader and subordinate reports obtained from 5 large Korean companies, we found that the positive relationship between LMX and leader effectiveness was mediated by leaders' negative feedback-seeking. Additionally, the positive relationship between LMX and leader negative feedback-seeking was stronger when perceived subordinate expertise was lower. Lastly, the indirect effect of LMX on leader effectiveness through leader negative feedback-seeking was stronger when perceived subordinate expertise was lower. These findings were obtained after controlling for leaders' power distance and goal orientations that might influence their motives to seek or avoid feedback. Theoretical and practical implications are discussed.     

Global Innovation Networks – Organizations and People

Innovation is increasingly the outcome of global networks that connect geographically dispersed knowledge centers. The international business (IB) literature has developed a sophisticated understanding of the multinational enterprise (MNE) as an organization generates value by integrating knowledge across national borders. We advance this literature by making three key arguments. First we highlight the three megatrends that shape the strategy of the modern MNE: the disaggregation of the value chain into ever narrower activities, the migration of value to knowledge-intensive intangibles and the rise of huge emerging markets like China and India, whose domestic firms can grow to enormous size before venturing abroad. Second, we trace these three megatrends to falling spatial transaction costs, enabled in the main, by digitalization. Third, we draw on earlier research on the generic forms of global linkages, arguing that the IB literature has limited itself to organizational pipelines, while paying relatively little attention to personal relationships. The latter are particularly important in the genesis of both entrepreneurship and radical innovation, but are particularly sensitive to the anti-globalization policies. An environment where technology continues to reduce spatial transaction costs, while policy raises them, strengthens large MNEs at the expense of innovative international new ventures.     

From design to operations: a process management life-cycle performance measurement system for Public-Private Partnerships

Public–Private Partnerships (PPPs) have become a critical vehicle for delivering infrastructure worldwide. Yet, the use of such a procurement strategy has received considerable criticism, as they have been prone to experiencing time/cost overruns and during their operation poorly managed. A key issue contributing to the poor performance of PPPs is the paucity of an effective and comprehensive performance measurement system. There has been a tendency for the performance of PPPs to be measured based on their ex-post criteria of time, cost and quality. Such criteria do not accommodate the complexities and lifecycle of an asset. In addressing this problem, the methodology of sequential triangulation is used to develop and examine the effectiveness of a ‘Process Management Life Cycle Performance Measurement System’. The research provides public authorities and private-sector entities embarking on PPPs with a robust mechanism to effectively measure, control and manage their projects’ life cycle performances, ensuring the assets are ‘future proofed’.     

Examining Facilitative Configurations of Entrepreneurially Oriented Growth: An Information Processing Perspective

This study examines how the relationship between entrepreneurial orientation and firm growth is shaped by learning orientation in technologically sophisticated environments. We draw upon an information processing perspective that emphasizes alignment between information processing demands and support mechanisms. Using data from 116 small to medium‐sized enterprises in the Netherlands, we observe that the ability of entrepreneurial orientation to drive firm growth greatly depends on the joint consideration of technological sophistication and learning orientation. Our findings contribute to a better understanding of how configurations of strategic orientations and environmental considerations work in concert to influence the efficacy of organizational entrepreneurial efforts dramatically.     

Constructing Trustworthy Historical Narratives: Criteria,Principles and Techniques

Organizational scholars increasingly recognize the value of employing historical research. Yet the fields of history and organization studies struggle to reconcile. In this paper, the authors contend that a closer connection between these two fields is possible if organizational historians bring their role in the construction of historical narratives to the fore and open up their research decisions for discussion. They provide guidelines to support this endeavor, drawing on four criteria that are prevalent within interpretive organization studies for developing the trustworthiness of research: credibility; confirmability; dependability; and transferability. In contrast to the traditional use of trustworthiness criteria to evaluate the quality of research, the authors advance the criteria to encourage historians to generate more transparent narratives. Such transparency allows others to comprehend and comment on the construction of narratives, thereby building trust and understanding. Each criterion is converted into a set of guiding principles to enhance the trustworthiness of historical research, pairing each principle with a practical technique gleaned from a range of disciplines within the social sciences to provide practical guidance.     

How leader role identity influences the process of leader emergence: A social network analysis

Contemporary theories on leadership development emphasize the importance of having a leader identity in building leadership skills and functioning effectively as leaders. We build on this approach by unpacking the role leader identity plays in the leader emergence process. Taking the perspective that leadership is a dynamic social process between group members, we propose a social network-based process model whereby leader role identity predicts network centrality (i.e., betweenness and indegree), which then contributes to leader emergence. We test our model using a sample of 88 cadets participating in a leadership development training course. In support of our model, cadets who possess a stronger leader role identity at the beginning of the course were more likely to emerge as leaders. However this relationship was only mediated by one form of network centrality, indegree centrality, reflecting one's ability to build relationships within one's group. Implications for research and practice are discussed.     

Benevolence-dominant,authoritarianism-dominant,and classical paternalistic leadership: Testing their relationships with subordinate performance

We propose a new typology of paternalistic leadership styles based on how leaders demonstrate authoritarianism and benevolence, the two essential components of this type of leadership. Benevolence-dominant paternalistic leadership refers to leaders' sole dependence on the use of benevolence without their strong assertion of authority, whereas authoritarianism-dominant paternalistic leadership is based mainly on authoritarianism itself; classical paternalistic leadership, which best fits early observations of paternalistic leaders, refers to the salient combination of both leadership components. We used two distinct samples and methods to test this typology and the association with subordinate performance. Across the two studies, a field investigation with Taiwanese military supervisor-subordinate dyads and a hypothetical scenario experiment with U.S. working adults, we found a positive relationship between classical paternalistic leadership and subordinate performance as strong as that between benevolence-dominant paternalistic leadership and performance. Our findings echo the phenomenon that paternalistic leaders tend to combine benevolence with authoritarianism to affect subordinate performance.