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Absorptive Capacity: An Empirical Examination of the Phenomenon and Relationships with Firm Capabilities
The field of strategic management addresses challenges that firms encounter in an attempt to remain competitive. The ability to explain variation in firm success through examination of knowledge flows has become a prominent focus of research in the strategic management literature. Specifically, researchers have sought to further examine how firms convert knowledge, a phenomenon conceptualized as absorptive capacity. Absorptive capacity is the firm’s ability to acquire, assimilate, transform, and exploit knowledge. Few studies have captured the richness and multi-dimensionality of absorptive capacity, and it remains to be understood how the dimensions of the phenomenon convert knowledge. Furthermore, how absorptive capacity influences the firm remains to be understood. To address these research gaps, this dissertation seeks to (1) determine how absorptive capacity converts knowledge, and (2) determine how absorptive capacity influences firm capabilities. The research questions are investigated using structural modeling techniques to analyze data collected from software-industry firms. The findings offer contributions to the absorptive capacity and capability literatures. For example, absorptive capacity is hypothesized to consist of complex relationships among its internal dimensions. However, findings of this study suggest the relationships among the dimensions are linear in nature. This finding is in line with the theoretical foundations of and early literature on absorptive capacity but contrary to recent conceptualizations, which suggests relationships among the dimensions are more closely related to the theoretical origins of absorptive capacity. Additionally, to examine how absorptive capacity influences the firm, a capability-based perspective is used to hypothesize the influence of absorptive capacity on firm capabilities. Findings suggest absorptive capacity positively influences each dimension of firm capabilities (e.g., operational, customer, and innovation capabilities); thus, absorptive capacity influences the firm by altering firm capabilities. Given the richness of the findings, numerous fields are likely to benefit from this investigation. Through an examination of absorptive capacity and …
Consequences of Coworker Bullying: A Bystander Perspective
Previous research on workplace bullying primarily focuses on two main actors – the bully and the victim – while neglecting a third actor: the bystander of the bullying. The prevalence of workplace bullying is increasing across organizations, resulting in more employees becoming subjected to the effects of workplace bullying. Furthermore, witnessing coworker-on-coworker bullying is likely to influence the relationships that the bystander has with the two coworkers involved in the bullying episode. Two areas are proposed to investigate their effect on the coworker bystander: coworker interpersonal justice and personal identification with coworkers. Coworker interpersonal justice involves the perceived fairness between coworkers, while personal identification refers to how these bystanders identify with the specific actors of the bullying event. In addition to work-related outcomes, bystanders are affected at a personal level. That is, being exposed to bullying situations causes these bystanders to alter their anxiety levels and their core affect, with core affect being a precursor to moods and emotions. In addition to the aforementioned outcomes of witnessing a coworker bullying incident, there are also contextual aspects which may influence these relationships. Personal-level factors, such as a bystander's empathy and sense of coherence (i.e., coping mechanisms), may influence the effect of witnessing a coworker being bullied. Similarly, the gender of the victim in relation to the gender of the bystander may also play a role. Using affective events theory, I investigate how witnessing coworker bullying in the workplace effects bystanders. This research employs a 2 x 2 experimental design with multi-wave data collection and an in-person lab session to test the proposed hypotheses. AET is operationalized by creating a fictional coworker bullying situation in which observers are either exposed to the bullying situation or not. This research offers several contributions to the management literature as well as to practitioners. First, it …
An Emotional Business: the Role of Emotional Intelligence in Entrepreneurial Success
Successful entrepreneurial activity is important for a healthy economy and can be a major source of job creation. While the concept of entrepreneurship has been around for quite some time, researchers continue to explore the factors that underlie entrepreneurial performance. Specifically, researchers have sought to further examine why some entrepreneurial ventures are more successful than others. the concept of emotional intelligence (EI) has gained the attention of researchers and practitioners alike. Practitioners have realized that employees can no longer be perceived as biological machines that are capable of leaving their feelings, norms, and attitudes at home when they go to work. Researchers are embracing the concept of emotional intelligence because of its relationship with efficiency, productivity, sales, revenues, quality of service, customer loyalty, employee recruitment and retention, employee commitment, employee health and satisfaction, and morale. While there is considerable evidence documenting the effects of emotional intelligence on leadership performance, job performance in large firms, and educational performance, very little research has examined how emotional intelligence affects entrepreneurial performance and the variables that account for this relationship. Individuals in entrepreneurial occupations face business situations that necessitate unique skills and abilities in social interactions. Emotional intelligence has implications for entrepreneurial situations and social interactions such as negotiation, obtaining and organizing resources, identifying and exploiting opportunities, managing stress, obtaining and maintaining customers, and providing leadership. the primary purpose of this study is to investigate emotional intelligence in the context of entrepreneurship. in addition, the study will shed light on the mediating effects of individual competencies, organizational tasks, and the environmental culture and climate. the results of the study provide insights for emotional intelligence researchers, entrepreneurship researchers, individuals with entrepreneurial aspirations, academic institutions, as well as government and financial entities that provide resources to new ventures.
Examining Curvilinearity and Moderation in the Relationship between the Degree of Relatedness of Individual Diversification Actions and Firm Performance
Corporate diversification continues to be an important phenomenon in the modern business world. More than thirty years of research on diversification suggests that the degree of relatedness among a firm's business units is a factor that can affect firm performance, but the true effect of diversification relatedness on firm performance is still inconclusive. The purpose of this dissertation is to shed more light on this inconclusive association. However, attention is focused on the performance implications of individual diversification actions (e.g., acquisitions and joint ventures) rather than on the overall performance of firms with different levels of diversification. A non-experimental, longitudinal analysis of secondary data was conducted on over 450 unique acquisitions and on more than 210 joint ventures. Results suggest that even when individual diversification actions rather than entire business portfolios are examined, an inverted curvilinear association between diversification relatedness and performance is likely to emerge. This pattern is observed in both acquisitions and joint ventures. However, the association between diversification relatedness and performance in acquisitions is moderated by the level of industry adversity, though factors such as corporate coherence and heterogeneous experience do not moderate the association between diversification relatedness and performance. This study augments the body of knowledge on diversification and adds refinement to the traditional curvilinear finding regarding relatedness. By studying acquisitions and joint ventures independently, the results reveal differences in both slope and inflection points that suggest the relative impact of relatedness may vary depending on the mode of diversification.
A Foot in Two Worlds: Exploring Organizational and Professional Dual Identification
Who am I? Who are you? Who are we? These are some of the fundamental questions that identity scholars have grappled with since the 1900s when researchers across multiple disciplines first began to theorize about the self, identity, and identification. While the benefits and consequences of singular identities has been largely studied, recent scholars have argued for the importance of multiple identity research, as multiple identities have become increasingly salient to individuals due to societal and organizational changes including globalization and technological advancements. An important phenomenon within multiple identity research is dual identification, of which I explore a specific type– identification with both one's organization and one's profession. Using a three-study, quantitative design spanning two industries, I studied the effects of dual identification and identity conflict on individual psychological outcomes, turnover intentions, and OCB engagement. Findings from these three studies, holistically, indicate that when individuals experience identity conflict between their organizational and professional identities, they experience negative outcomes. These negative outcomes – increased emotional exhaustion, psychological distress, and turnover intentions, in addition to reduced OCB engagement – have important ramifications for the individuals themselves and their organization. However, post-hoc results indicate that dual identification – through the main effects of organizational and professional identification – itself leads to positive outcomes. Thus, whether multiple identities are a boon or burden might be a result of whether an individual has reconciled these identities. Ultimately, this research adds to the identity literature by providing a more nuanced view of multiple identities and their outcomes.
Optimal design of Dutch auctions with discrete bid levels.
The theory of auction has become an active research area spanning multiple disciplines such as economics, finance, marketing and management science. But a close examination of it reveals that most of the existing studies deal with ascending (i.e., English) auctions in which it is assumed that the bid increments are continuous. There is a clear lack of research on optimal descending (i.e., Dutch) auction design with discrete bid levels. This dissertation aims to fill this void by considering single-unit, open-bid, first price Dutch auctions in which the bid levels are restricted to a finite set of values, the number of bidders may be certain or uncertain, and a secret reserve price may be present or absent. These types of auctions are most attractive for selling products that are perishable (e.g., flowers) or whose value decreases with time (e.g., air flight seats and concert tickets) (Carare and Rothkopf, 2005). I began by conducting a comprehensive survey of the current literature to identify the key dimensions of an auction model. I then zeroed in on the particular combination of parameters that characterize the Dutch auctions of interest. As a significant departure from the traditional methods employed by applied economists and game theorists, a novel approach is taken by formulating the auctioning problem as a constrained mathematical program and applying standard nonlinear optimization techniques to solve it. In each of the basic Dutch auction model and its two extensions, interesting properties possessed by the optimal bid levels and the auctioneer's maximum expected revenue are uncovered. Numerical examples are provided to illustrate the major propositions where appropriate. The superiority of the optimal strategy recommended in this study over two commonly-used heuristic procedures for setting bid levels is also demonstrated both theoretically and empirically. Finally, economic as well as managerial implications of the findings reported …
Semiglobalization: Institutional Effects on Multilatina Cross-Border Acquisitions
The internationalization research domain has predominantly focused on country level antecedents of firm level decisions, with particular emphasis on why certain countries are selected over others for foreign direct investment (FDI). This approach may oversimplify what actually occurs from both practical and research perspectives. Recently, MNE strategic orientation and conduct, as an outflow of a region-based localization perspective (i.e.,semiglobalization), has gained increased scholarly attention. The tradition of considering country level institutional environments may be more robustly informed by extending a paradigm which considers region-based institutions, in addition to country. Thus, in this study I examine institutional effects, as underpinned by institutional theory, on one segment of FDI decision making, cross-border acquisitions behavior, in an understudied context, Latin American MNEs (i.e., Multilatinas). Linear and mixed regression are used to test hypotheses, by examining a sample of all Multilatina CBAs exacted over a five year period (2007-2011)in targeting host country firms within eight geographic regions. Multilevel study results provide overarching support for hypotheses, that a Multilatina's internationalization into a country and region through cross-border acquisition equity participation is influenced by both country and region institutional environments. Contributions are made to the semiglobalization, cross-border acquisitions, institutions, and Multilatina literature streams through development of a more robust, multilevel perspective which more accurately captures how MNEs consider institutional environments in their international strategy and conduct.
Toward A Typology of eLancers: A Psychology of Working Perspective
There is currently an increasing trend among the American working population to voluntarily join the gig economy. New terms like the gig economy, sharing economy, internet freelancing, and eLancing have been created to understand this emerging trend among today's workforce. There is a small, yet highly relevant, body of scholarly literature in human resource management that is focused specifically on the eLancing economy as a subset of the gig economy. The purpose of this research is to acknowledge and contribute to this timely literature, which has adequately recognized the enormous potential of this new trend of working. Grounded in the psychology of working theory, a theoretical typology of eLancers is proposed based on the workers' level of volition to be able to choose eLancing as their employment. Further, various predictors such as demographics and personality characteristics were explored on the basis of which eLancers can be classified into types. The study also proposes that different types of eLancers differ in their attitudinal and behavioral work and life outcomes. Prior research has shown that career decisions made by individuals with high work volition relate to higher levels of overall well-being. Hence, classifying eLancers on the basis of their varying levels of volition can help organizations understand which type of eLancer might experience what level of attitudinal and behavioral outcomes.
The Value of Ties: Impact of Director Interlocks on Acquisition Premium and Post-acquisition Performance
Mergers and acquisitions (M&A) evolved as alternative governance structures for firms seeking to combine resources with other firms, access larger markets, or acquire strategic assets. In spite of managers’ enthusiasm about the practice, studies show mixed results regarding post-acquisition performance of acquiring firms. The impact of acquisitions on the performance of acquiring firms has therefore remained inconclusive. A few reasons for this have been suggested and recent meta-analytic research efforts indicate that studies in M&A may have ignored variables that have significant effects on post-acquisition performance. In a bid to extend the literature on M&A and identify cogent variables that impact on acquisition performance, this dissertation draws on social network theory to advance a proposition for the value-of-ties. This was done by examining the impact of directorate interlocks on acquisitions specifically and organizational strategy in general. A non-experimental cross-sectional study of 98 interlocked directorate companies simultaneously involved in acquisitions was conducted. Several multiple regression analyses were conducted and the results obtained suggest that there is a positive linear relationship between director interlocks and post-acquisition performance and that to some extent this relationship is moderated by acquisition experience. The study also showed that director interlocks have a negative linear relationship with acquisition premium. This study complements the body of knowledge on acquisitions and network theory. It also successfully combined a multi-level approach to research on organizations and strategic management.
Virtual Entrepreneurship: Explicating the Antecedents of Firm Performance
Prior research has examined entrepreneurial businesses spatially located in the physical or offline context; however, recent radical information and technological breakthroughs allow entrepreneurs to launch their businesses completely online. The growth of the online business industry has been phenomenal. Predictions for worldwide online sales estimate it to reach $2 trillion in 2016. Virtual entrepreneurship refers to the pursuit and exploitation of opportunities via virtual platforms. Web 2.0 cybermediaries offer web-based platforms that function similarly to traditional intermediaries in a virtual setting and minimize barriers to entry for virtual entrepreneurial firms. The use of such cybermediaries with increasing success suggests an implicit shift in the dominant logic that typically underpins the functioning of entrepreneurial firms operating in the physical world. In this relatively uncharted territory, marked by a focus on profit, cooperation, collaboration and community, three ideal-type institutional logics i.e. Market, Corporation and Community, blend together. It is posited that a Virtual Entrepreneurial Logic guides the norms, behaviors, and practices of entrepreneurial firms operating via these virtual platforms. This raises the question whether the blending of three ideal-type logics leads to the existence of different antecedents of performance. A business model antecedent addressing the economic dimension, a community antecedent addressing the community dimension and a co-creation antecedent addressing the collaborative dimension of the Virtual Entrepreneurial Logic were therefore empirically examined in this study. Thus, three research questions were investigated to explicate the antecedents. Primary data from 1396 virtual entrepreneurial firms was collected (business model antecedent n=366, community antecedent n=732 and co-creation antecedent n= 298) to test the proposed hypotheses. Results provided support for the three antecedents. This study makes important theoretical and practical contributions to understanding the domain of virtual entrepreneurship from a blended logics perspective. Using the theoretical lens provided by institutional logics helps shed light on the pivotal role …
When and Where Does It Pay to Be Green: Intra- and Inter-organizational Factors Influencing the Environmental/Financial Performance Link
Managers are coming under increasing pressure from a wide array of stakeholders to improve the environmental performance of their firms while still achieving financial performance objectives. One of the most researched questions in the business and the natural environment (B&NE) literature is whether it pays to be green. Despite more than three decades of research, scholars have been unable to clearly answer this question. The purpose of this dissertation was to attempt to identify the antecedents that lead to increased, firm-level environmental performance and the conditions in which firms are then able to profit from enhanced environmental performance. First, I assessed three intra-organizational factors of top management teams (i.e. female representation, concern for non-financial stakeholders, and risk-seeking propensity) that theory indicated are associated with increased corporate environmental performance (CEP). Theory also leads us to believe that top management teams with these attributes should perform better in dynamic settings, so I tested to see if industry dynamism moderates these relationships. Second, I then examined industry-level forces that theory indicates would moderate the relationship between CEP and corporate financial performance (CFP). These moderating forces include industry profitability, industry dynamism, and the degree of industry environmental regulation. Hypotheses were tested using panel data obtained from the KLD, Compustat, and Environmental Protection Agency databases for the years 2000 to 2011. The sample consists of firms comprising the Standard and Poor’s 500 and was analyzed using fixed-effect regression and moderating variables were analyzed using the Johnson-Neyman technique.
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