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Ann Peng, Rebecca Mitchell, and John M. Schaubroeck
In recent years scholars of abusive supervision have expanded the scope of outcomes examined and have advanced new psychological and social processes to account for these and other outcomes. Besides the commonly used relational theories such as justice theory and social exchange theory, recent studies have more frequently drawn from theories about emotion to describe how abusive supervision influences the behavior, attitudes, and well-being of both the victims and the perpetrators. In addition, an increasing number of studies have examined the antecedents of abusive supervision. The studied antecedents include personality, behavioral, and situational characteristics of the supervisors and/or the subordinates. Studies have reported how characteristics of the supervisor and that of the focal victim interact to determining abuse frequency. Formerly postulated outcomes of abusive supervision (e.g., subordinate performance) have also been identified as antecedents of abusive supervision. This points to a need to model dynamic and mutually reciprocal processes between leader abusive behavior and follower responses with longitudinal data. Moreover, extending prior research that has exclusively focused on the victim’s perspective, scholars have started to take the supervisor’s perspective and the lens of third-parties, such as victims’ coworkers, to understand the broad impact of abusive supervision. Finally, a small number of studies have started to model abusive supervision as a multilevel phenomenon. These studies have examined a group aggregated measure of abusive supervision, examining its influence as an antecedent of individual level outcomes and as a moderator of relationships between individuals’ experiences of abusive supervision and personal outcomes. More research could be devoted to establishing the causal effects of abusive supervision and to developing organizational interventions to reduce abusive supervision.
Richard E. Boyatzis
Emotional intelligence (EI) is used in organizational training, coaching, and graduate schools. Despite its acceptance in practical applications, researchers continue to argue about its validity. EI can be defined “as a constellation of components from within a person that enable self-awareness of and management of his/her emotions, and to be aware of and manage the emotions of others.” EI seems to exist at the performance trait or ability, self-schema and trait, and behavioral levels. Based on this multilevel view, all the conceptualizations of EI and the different measures that result are EI. Research on the behavioral level of EI—its assessment, strengths, psychometric validity, and challenges—complements that on other approaches, which have already been the subject of many academic papers.
There has been an “affective revolution” in organizational behavior since the mid-1990s, focusing initially on moods and affective dispositions. The past decade has seen a further shift toward investigating the complex roles played by discrete emotions in the workplace. Discrete emotions such as fear, anger, boredom, love, gratitude, and pride have their own appraisal antecedents, subjective experiences, and action tendencies that prepare people to respond to their current situation. Emotions have intrapersonal effects on the person experiencing them in terms of attention, motivation, creativity, information processing and judgment, and well-being. Some emotions have characteristic voice tones or facial expressions that serve the interpersonal function of communicating one’s state to interaction partners. For this reason, emotions are integral to social processes in organizations such as leadership, teamwork, negotiation, and customer service. The effects of emotions on behavior can be complex and context-dependent rather than straightforwardly mechanistic. Individuals may regulate the emotions they experience, the extent to which they display what they feel, and the actions they choose in response to how they feel.
Research has tended to focus on negative emotions (e.g., anger or anxiety) and their potential negative effects (e.g., aggression or avoidance), but negative emotions can sometimes have positive consequences. Discrete positive emotions have been relatively ignored in organizational research but feeling and expressing positive emotions often have positive consequences. There is considerable scope for investigating the ways in which specific discrete emotions are experienced, regulated, expressed, and acted upon in organizational life. There may also be a case for intentional efforts by organizations and employees to increase the occurrence of positive emotions at work.
An extensive literature has accumulated during the past three quarters of a century on the topic of intuition in management. The beginnings of management intuition scholarship are to be found in Chester Barnard’s insightful speculations on the role and significance of logical and non-logical processes in managerial work. Barnard’s thinking impacted profoundly Herbert Simon’s foundational concept of bounded rationality, which shed much needed light on how managerial decision-making is accomplished in real-world settings by using intuition as well as analysis. In parallel, management researchers in common with scholars in a wide range of applied fields also drew on Daniel Kahneman, Amos Tversky, and colleagues’ seminal behavioral decision research and its focus on the systematic errors and biases that accrue in managers’ intuitive judgments as the result of the use of heuristics (e.g., representativeness, availability, anchoring and adjustment, and affect heuristics). In recent years management researchers have drawn on further insights from Klein and colleagues’ work in naturalistic decision-making (NDM) (e.g., the “recognition primed decision-making model,” RPD) to conceptualize managerial work as expert performance and in understanding expert-versus-novice differences using the “skill acquisition model” (SAM). In recent years managerial intuition research has alighted on the dual-process theories of Epstein, Evans, Stanovich, and others as a conceptual foundation for further theorizing and research in terms of System 1 (also referred to as Type 1) and System 2 (Type 2) processing. More recently still, research in neurology (e.g., the “somatic marker hypothesis”) and social cognitive neuroscience (e.g., the specification of complementary “reflexive (X)” and “reflective (C)” systems) has mapped the physiological and neural correlates of intuitive processing and begun to inform not only intuition research but decision research more widely in management and organization studies. These various developments have shed light on how intuitive decision-making is accomplished in managerial work across diverse management subfields including entrepreneurship, business ethics, human resources, and strategic management. More recently, scholars are turning to paradox theory and process philosophy as alternative ways of viewing the phenomenon of intuition in organizations.
Increasing levels of cultural diversity requires a system of higher education structured to facilitate intercultural learning and develop individuals who are prepared to work in a culturally diverse environment, and can make decisions and manage people cognizant of cultural differences. Three main approaches to facilitate intercultural learning in the classroom have emerged: transfer of cultural knowledge, cultural experiences, and reflection on experience. Each of these approaches has a role to play at different stages of intercultural development. Three stages of intercultural development are proposed: (1) Monocultural stage, referring to a stage in which individuals are unaware of cultural differences; (2) Cross-cultural stage, in which individuals recognize and understand cultural differences but lack behavioral skills to deal with them; and (3) Intercultural stage, in which individuals can draw on a repertoire of behaviors to influence and shape intercultural interactions in ways that facilitate understanding and create opportunities for cooperation. Reflection on experience is proposed to be particularly useful to support the development of intercultural competence. Reflection is a thinking process focusing on examining a thought, event, or situation to make it more comprehensible and to learn from it. A four-step reflection process is proposed: (1) Describe experience; (2) Reflect on experience; (3) Learn from experience; and (4) Apply learning. Suggestions on using reflection in the classroom are proposed.
Tracey J. Riley and Alex C. Yen
Although accounting is typically seen as a numbers-oriented discipline, with an emphasis on quantifying economic events and activity, the nexus of language and accounting, specifically the role of language in communicating corporate accounting results, has received an increasing amount of attention in recent years. This is because quantified accounting results (e.g., earnings per share, sales revenue) are rarely communicated in isolation. Rather, they are usually accompanied by a non-quantitative narrative, such as an earnings press release, a corporate annual report, or the president’s letter, which, along with conference calls and content at corporate websites, we collectively refer to as “accounting narratives.” These narratives allow management to elaborate on and contextualize the financial performance of the company. However, because they are not as extensively regulated as the financial statements and are not standardized, these narratives can also be used by companies for impression-management purposes, to obfuscate (poor) performance and to “spin” the financial results to the companies’ favor.
Research into accounting narratives dates back to 1952 and has focused on a wide variety of features of narratives and on how those features affect financial statement readers’ (most notably, investors’) reactions. The earliest studies focused on accounting narratives’ readability by performing a syntactic analysis to assess the cognitive difficulty of written passages. This line of research has found that accounting narratives are syntactically complex and difficult to read and that management intentionally makes bad news less readable in order to strain the readers’ cognitive processes and lead to lower comprehension of the bad news. In addition to this evidence of obfuscation, researchers have found support for managers engaging in attributional framing, which is the tendency to attribute positive outcomes to actions within the company and negative outcomes to actions external to the company (e.g., the government or the weather) in an effort to influence readers’ perception of good versus bad news. More recently, researchers have found that managers use syntactic (sentence structure), semantic (word meaning), and metasemantic (abstract versus concrete construal) manipulation and make broad stylistic choices such as emphasis, length, and scenario form. In terms of how those features affect the readers of the narratives, readers (most notably, investors) have been shown to respond to length and readability; level of negativity; words pertaining to risk, uncertainty, credibility, commitment, and responsibility; justifications of excuses of poor performance; optimistic and pessimistic tone; vivid versus pallid language; internal versus external attributions; and use of self-references.
Daniel G. Arce and Mary C. Gentile
Giving Voice to Values (GVV) is a rehearsal and case-based approach to business ethics education that is designed to develop moral competence and that emphasizes self-assessment, peer coaching and prescriptive ethics. It is built on the premise that many businesspeople want to act on their values but lack the know-how and experience for doing so. The focus is on action rather than developing ethical awareness or analytical constructs for determining what is right and the epistemology behind knowing that it is right, while acknowledging that existing and well-established approaches to these questions are also important. The GVV rubric for acting on one’s values is based upon the following three questions: (1) What’s at stake? (2) What are the reasons and rationalizations you are trying to counter? and (3) What levers can be used to influence those who disagree? Taken together, the answers to these questions constitute a script for constructing a persuasive argument for effecting values-based change and an action plan for implementation. This approach is based on the idea, supported by research and experience, that pre-scripting and “rehearsal” can encourage action.
GVV is meant to be complementary to traditional approaches to business ethics that focus on the methodology of moral judgment. GVV cases are post-decision-making in that they begin with a presumed right answer and students are invited to engage in the “GVV Thought Experiment,” answering the questions: “What if you were going to act on this values-based position? How could you be effective?” This implies a shift in focus towards values-based action in ways that recognize the pressures of the business world. As a consequence of this shift, GVV addresses fundamental questions about what, to whom, and how business ethics is taught. The answers to these questions have led to widespread adoption of GVV in business schools, universities, corporations, and beyond.
Vinícius Chagas Brasil and J.P. Eggers
In competitive strategy, firms manage two primary (non-financial) portfolios—the product portfolio and the innovation portfolio. Portfolio management involves resource allocation to balance the important tradeoff of risk reduction and upside maximization, with important decisions around the evaluation, prioritization and selection of products and innovation projects. These two portfolios are interdependent in ways that create reinforcing dynamics—the innovation portfolio is the array of potential future products, while the product portfolio both informs innovation strategy and provides inputs to future innovation efforts. Additionally, portfolio management processes operate at two levels, which is reflected in the literature's structure. The first is a micro lens which focuses on management frameworks to boost portfolio performance and success through project-level selection tools. This research has its roots in financial portfolio management, relates closely to research on new product development and marketing product management, and explores the effects of portfolio management decisions on other organizational functions (e.g., operations). The second lens is a macro lens on portfolio management research, which considers the portfolio as a whole and integrates key organizational and competitive concepts such as entry timing, portfolio management resource allocation regimes (e.g., real options reasoning), organizational experience, and the culling of products and projects. This literature aims to set portfolio management as higher level organizational decision-making capability that embodies the growth strategy of the organization. The organizational ability to manage both the product and innovation portfolios connects portfolio management to key strategic organizational capabilities, including ambidexterity and dynamic capabilities, and operationalizes strategic flexibility. We therefore view portfolio management as a source of competitive advantage that supports organizational renewal.
Dry goods stores, the predecessors of Japanese department stores, were forced to modernize and change their business format after the Meiji Restoration in 1868, which led to the demise of their main customers. The largest dry goods store, Mitsukoshi, was the first to learn about modern retailing in the West, and it broke out of the mold of the traditional Japanese retailer in around 1900 in an effort to catch up with Western department stores. Other large dry goods stores were quick to follow its lead: they transformed into department stores and created their own “cathedrals of consumption” in the 1920s, to match those in the West. This new retail format strongly contributed to Japan’s economic growth and to the Westernization of the Japanese lifestyle.
Despite numerous publications on the history of department stores, there has been little research on this transfer of Western department stores into a very different world: Japan. Although there are many studies on Japanese department stores in Japanese, focusing on how they were influenced by Western department stores, they are mostly subdivided on the basis of specific topics, such as levels of consumption in the interwar period or their economic impact during Japan’s period of high economic growth. The focus here is on the whole development process of department stores, bridging the gap between Western and Japanese studies on department stores.
The first stage in the development of Japanese department stores was in the early 20th century, when Japanese retailers raced to catch up with Western department stores to become modern Western-style retailers themselves; the second stage was in the late 20th century, when these new Japanese stores continued developing along their own unique path in order to target the domestic market during the growth of the Japanese economy, introducing ready-to-wear clothing, luxury brands, and gift products. In this way, Japanese department stores succeeded in increasing their efficiency and establishing a more upmarket image. However, in exchange for this prosperity, department stores also gave up control of their sales floors to the wholesalers and reduced their own merchandising skills. After the economic bubble burst in 1991, Japanese department stores began to suffer from decreased sales and lack of control over the points of sale in their stores.
Nydia MacGregor and Tammy L. Madsen
Regulatory shocks, either by imposing regulations or easing them (deregulation), yield abrupt and fundamental changes to the institutional rules governing competition and, in turn, the opportunity sets available to firms. Formally, a regulatory shock occurs when jurisdictions replace one regulatory system for another. General forms of regulation include economic and social regulation but recent work offers a more fine-grained classification based on the content of regulations: regulation for competition, regulation of cap and trade, regulation by information, and soft law or experimental governance. These categories shed light on the types of rules and policies that change at the moment of a regulatory shock. As a result, they advance our understanding of the nature, scope, magnitude, and consequences of transformative shifts in rules systems governing industries. In addition to differences in the content of reforms, the assorted forms of regulatory change vary in the extent to which they disrupt an industry’s state of equilibrium or semi-equilibrium. These differences contribute to diverse temporal patterns or dynamics, an area ripe for further study. For example, a regulatory shock to an industry may be followed by rapid adjustment and, in turn, a new equilibrium state. Alternatively, the effects of a regulatory shock may be more enduring, contributing to ongoing dynamics and prolonging an industry’s convergence to new equilibrium state. As such, regulatory shocks can both stimulate ongoing heterogeneity or promote coherence within and among industries, sectors, organizational fields, and nation states. It follows that examining the content, scope, and magnitude of regulatory shocks is key to understanding their impact.
Since conforming to industry regulation (deregulation) increases economic returns, firms attempt to align their policies and behaviors with the institutional rules governing an industry. Thus, regulatory shocks stimulate the evaluation of strategic choices and, in turn, impact the competitive positions of firms and the composition of industries. Following a shock, at least two generic cohorts of firms emerge: incumbents, which are firms that operated in the industry before the change, and entrants, which start up after the change. To sustain a position, entrants must build capabilities from scratch whereas incumbents must replace or modify the practices they developed in the prior regulatory era. Not surprisingly, the ensuing competitive dynamics strongly influence the distribution of profits observed in an industry and the duration of firms’ profit advantages.
Our review highlights some of the prominent areas of research inquiry regarding regulatory shocks but many areas remain underexplored. Future work may benefit by considering regulatory shocks as embedded in a self-reinforcing system rather than simply an exogenous inflection in an industry’s evolutionary trajectory. Opportunities also exist for studying how the interplay of industry actors with actors external to an industry (political, social) affects the temporal and competitive consequences of regulatory shocks.