1-20 of 32 Results

Article

Organizations (whether they are permanent or temporary) have stakeholders, that is, individuals and groups that can affect or be affected by the organization’s activities and achievements. Assuming that the fundamental driver of value creation is stakeholder relationships, managing those relationships well is a prerequisite for obtaining and sustaining success in all businesses, regardless of the success measures applied. Therefore, applying a stakeholder perspective is of significant importance for any manager or entrepreneur. However, the essentials as well as the implications of applying such a perspective are not clear. Researchers and practitioners have offered many contributions, however, the existing literature is inconclusive. To provide clarity, stakeholder concepts (e.g. stakeholder definition, systems perspective, separation thesis, stakeholder analysis, stakeholder engagement, perception of fairness, stakeholder utility function, stakeholder salience, stakeholder disaggregation, stakeholder multiplicity, managing for stakeholders, Value Creation Stakeholder Theory, value destruction, shadows of the context) are defined and 15 propositions for further inquiry are offered. The Scandinavian and American origins of stakeholder thinking are presented. The propositions are intended to invite discussion—and could form the basis for future research questions as well as provide guidance for managers. By drawing on (a) Professor Eric Rhenman, who in the 1960s first proposed an explicit theoretical framework on stakeholder thinking; (b) Professor R. Edward Freeman, who has been the most influential contributor to the field; and (c) additional, selected contributions, the aim is to providevalue for both new and seasoned researchers as well as for managers, consultants, and educators. In order to give the reader the opportunity to self-assess and interpret the “raw data,” the text is rich on citations.

Article

Nydia MacGregor and Tammy L. Madsen

A substantial volume of research in economic geography, organization theory, and strategy examines the geographic concentration of interconnected firms, industries, and institutions. Theoretical and empirical work has named a host of agglomeration advantages (and disadvantages) with much agreement on the significance of clusters for firms, innovation, and regional growth. The core assertion of this vein of research is that geographically concentrated factors of production create self-reinforcing benefits, yielding increasing returns over time. The types of externalities (or agglomeration economies) generally fall into four categories: specialized labor or inputs, knowledge spillovers, diversity of actors and activity, and localized competition. Arising from multiple sources, each of these externalities attracts new and established firms and skilled workers. Along with recent advancements in evolution economics, newer research embraces the idea that the agglomeration mechanisms that benefit clusters may evolve over time. While some have considered industry and cluster life-cycle approaches, the complex adaptive systems (CAS) theory provides a well-founded framework for developing a theory of cluster evolution for several reasons. In particular, the content and stages of complex adaptive systems directly connect with those of a cluster, comprising its multiple, evolving dimensions and their interplay over time. Importantly, this view emphasizes that the externalities associated with agglomeration may not have stable effects, and thus, what fosters advantage in a cluster will change as the cluster evolves. Furthermore, by including a cluster’s degree of resilience and ability for renewal, the CAS lens addresses two significant attributes absent from cyclical approaches. Related research in various disciplines may further contribute to our understanding of cluster evolution. Studies of regional resilience (usually focused on a specific spatial unit rather than its industrial sectors) may correspond to the reorganization phase associated with clusters viewed as complex adaptive systems. In a similar vein, examining the shifting temporal dynamics and development trajectories resulting from discontinuous shocks may explain a cluster’s emergence and ultimate long-term renewal. Finally, the strain of research examining the relationship between policy initiatives and cluster development remains sparse. To offer the greatest theoretical and empirical traction, future research should examine policy outcomes aligned with specific stages of cluster evolution and include the relevant levels and scope of analysis. In sum, there is ample opportunity to further explore the complexities and interactions among firms, industries, networks, and institutions evident across the whole of a cluster’s evolution.

Article

Margarethe F. Wiersema and Joseph B. Beck

Corporate or product diversification represents a strategic decision. Specifically, it addresses the strategic question regarding in which businesses the firm will compete. A single-business company that expands its strategic scope by adding new businesses becomes a diversified, multibusiness company. The means by which a company expands its strategic scope is by acquiring businesses, investing in the development of new businesses, or both. Similarly, an already diversified firm can reduce its strategic scope by divesting from or closing businesses. There are two fundamentally different types of corporate diversification strategy, depending on the interrelatedness of the businesses in the company’s portfolio: related diversification and unrelated diversification. Related diversification occurs when the businesses in the company’s portfolio share strategic assets or resources, such as technology, a brand name, or distribution channels. Unrelated diversification occurs when a company’s businesses do not share strategic assets or resources and do not have interrelationships of strategic importance. Companies can pursue both types of diversification simultaneously, and thus have a portfolio of businesses both related and unrelated. In addition to variations in the type of diversification, companies can vary in the extent of their diversification, ranging from business portfolios with very limited diversification to highly diversified portfolios. Decisions regarding the diversification strategy of a firm represent major strategic scope decisions since they impact the markets and industries in which the company will compete. Companies can increase or reduce their level of diversification for a variety of reasons. Economic motives, for example, include the pursuit of economies of multiproduct scale and scope, whereby per-unit costs may be lowered through the increase in sales volume or other fixed-cost reducing benefits associated with growth through diversification. In addition, companies may diversify for strategic reasons, such as enhancement of capabilities or superior competitive positioning through entry into new product markets. Similarly, economic and strategic reasons can motivate the firm to refocus and reduce its level of diversification when the strategic and economic rationales for being in a particular business are no longer justified. The performance consequences of corporate diversification can vary, depending on both the extent of the firm’s diversification and the type of diversification. In general, research indicates that high levels of diversification are value-destroying due to the integrative and complexity-associated costs that administering an extremely diversified portfolio imposes on management. Nevertheless, related diversification, where the company shares underlying resources across its business portfolio (e.g., brand, technology, and distribution channels), can lead to higher levels of performance than can unrelated diversification, due to the potential for enhanced profitability from leveraging shared resources. Corporate diversification was a major U.S. business trend in the 1960s. During the 1980s, however, pressure from the capital market for shareholder wealth maximization led to the adoption of strategies whereby many companies refocused their business portfolios and thus reduced their levels of corporate diversification by divesting unrelated businesses in order to concentrate on their predominant or core business.

Article

Abagail McWilliams

Corporate social responsibility (CSR) is a legitimate responsibility to society, based on the principle that corporations should share some of the benefit that accrues from the control of vast resources. CSR goes beyond the legal, ethical, and financial obligations that create profits. In the research literature, corporate social responsibility is defined in a variety of ways, depending on the aspect of CSR being examined. An inclusive definition is that social responsibility requires the firm to take into account the interests of all stakeholders, where stakeholders are defined as everyone who affects or is affected by the firm’s decisions and actions. A firm-focused definition holds that social responsibility includes actions that further a social goal, beyond what is required by ethics, law, and profitability. A political economy–oriented definition posits that firms have a responsibility to correct market failures such as negative externalities and government failures such as limits to jurisdiction that result in worker rights violations. When implemented, altruistic CSR implies that firms provide a social good unrelated to the firms’ business that does not benefit the bottom line. Strategic CSR implies that firms are simultaneously profitable and socially responsible. To achieve this, CSR must be a core value of the firm and must be integrated into processes and products. When employed strategically, CSR can be an element of a differentiation strategy, leading to premium prices, enhanced brand and firm reputation, and supportive community relations. Corporate environmental responsibility often takes the form of overcompliance with regulation, improving the environment more than is required. A primary benefit of this is to stave off further regulation. To capture the benefits of being socially responsible, the firm must make stakeholders aware of its record. This has led to triple bottom line reporting—that is, reporting about firm performance in terms of profits, people, and the planet. Social enterprises go a step further and make social responsibility the primary goal of the organization.

Article

Michael D. Mumford, Robert Martin, and Samantha N. Elliott

Creative thinking is the basis for innovation in firms. And the need for strategy-relevant innovations has generated a new concern with how people go about solving the kinds of problems that call for creative thought. Although many variables influence people’s ability to provide creative problem solutions, it is assumed the ways in which people work with or process knowledge provides the basis for successful creative problem-solving efforts. Additionally, there has been evidence bearing on the processing activities that contribute to creative problem solving. It is noted that at least eight distinct processing activities are involved in most incidents of creative problem solving: (1) problem definition, (2) information gathering, (3) concept selection, (4) conceptual combination, (5) idea generation, (6) idea evaluation, (7) implementation planning, and (8) adaptive monitoring. There are strategies people employ in effective execution of each of these processes, along with contextual variables that contribute to, or inhibit, effective process execution. Subsequently, there are key variables that operate in the workplace that contribute to, or inhibit, effective execution of these processing operations. These observations, of course, lead to implications for management of innovative efforts in firms.

Article

Elissa L. Perry and Aitong Li

Although defined in numerous and sometimes inconsistent ways in the literature, diversity climate can be described as employees’ shared perceptions of the extent to which their organization values diversity as reflected in the policies, practices, and procedures that the organization rewards, supports, and expects. Diversity climate studied at the individual level (individual perceptions of the impact of the work environment on the individual’s own well-being) is referred to as psychological climate. When it is conceived of and studied at the group or organization level (employees’ shared perceptions of their work environment aggregated to the unit level), it is referred to as group- or organizational-level climate. Two consistent criticisms raised in recent reviews continue to plague diversity climate research. These can most simply be stated as a lack of clarity about what diversity climate is and is not, and inconsistency in how diversity climate is measured and aligns (or does not) with how it has been conceptualized. Despite these criticisms, there is evidence that diversity climate can positively impact individuals’ (especially minority group members’) work-related attitudes (e.g., organizational commitment, satisfaction) and unit-level outcomes (e.g., performance). As a result, diversity climate is both practically relevant to organizations and conceptually meaningful to researchers.

Article

Véronique Ambrosini and Gulsun Altintas

Dynamic managerial capabilities are a form of dynamic capabilities. They are concerned with the role of managers in refreshing and transforming the resource base of the firm so that it maintains and develops its competitive advantage and performance. To do so, managers must develop entrepreneurial activities. These activities consist of sensing and seizing opportunities and transforming the resource base. While most studies focus on the role of top managers and CEOs, entrepreneurial activities can occur throughout the organization. Mid- and lower-level managers can also sense opportunities emanating from the market. Managerial human capital, managerial social capital, and managerial cognition are the three main antecedents to dynamic managerial capabilities.

Article

Cynthia Fisher

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.

Article

D. Christopher Kayes and Anna B. Kayes

Experiential learning describes the process of learning that results from gathering and processing information through direct engagement with the world. In contrast to behavioral approaches to learning, which describe learning as behavioral changes that result from the influence of external factors such as rewards and punishments, learning from experience places the learner at the center of the learning process. Experiential learning has conceptual roots in John Dewey’s pragmatism. One of the most influential approaches to experiential learning in management and management education is David Kolb’s experiential learning theory (ELT) and the learning cycle that describes learning as a four-phase process of direct experience, reflection, abstract thinking, and experimentation. Experiential learning has been influential in management education as well as adult education because it addresses a number of concerns with traditional education and emphasizes the role of the learner in the learning process. It has been adopted by over 30 disciplines across higher education and has been extensively applied to management, organizations, and leadership development. The popularity of the experiential learning approach is due to many factors, including the growing discontent with traditional education, the desire to create more inclusive and active learning environments, and a recognition of the role that individual differences plays in learning. A renewed interest in experiential learning has brought about new and expanded conceptualizations of what it means to learn from experience. Variations on experiential learning include critical approaches to learning, brain science, and dual-processing approaches. While the term “experiential learning” is used by scholars to describe a specific philosophy or theory of learning, it often refers to many management education activities, including the use of experiences outside the classroom such as study abroad, internships, and service learning. Experiential learning also includes educational “experiential” learning activities inside the classroom. Within organizations, experiential learning provides an underlying conceptual framework for popular learning and leadership development programs such as emotional intelligence, strengths-based approaches, and appreciative inquiry. There is a growing recognition that experiential learning is the basis for many management practices such as strategy creation, research and development, and decision-making. Applications of experiential learning and education in management include simulations and exercises, learning style and educator roles, learning as a source of resilience, learning attitudes and other learning-based experiences, learning flexibility, cross-cultural factors, and team learning. Emerging research interest is also found in the relationship between experiential learning and expertise, intuition, mastery, and professional and career development, decision-making, and judgment in organizations.

Article

Carol T. Kulik and Belinda Rae

The “glass ceiling” metaphor represents the frustration experienced by women in the 1980s and 1990s who entered the workforce in large numbers following equal opportunity legislation that gave them greater access to education and employment. After initial success in attaining lower management positions, the women found their career progress slowing as they reached higher levels of their organizations. A formal definition of the glass ceiling specifies that a female disadvantage in promotion should accelerate at the highest levels of the organization, and researchers adopting this formal definition have found mixed evidence for glass ceilings across organizations and across countries. Researchers who have expanded the glass ceiling definition to encompass racial minorities have similarly found mixed results. However, these mixed results do not detract from the metaphor’s value in highlighting the stereotype-based practices that embed discrimination deep within organizational structures and understanding why women continue to be underrepresented in senior organizational roles around the world. In particular, researchers investigating the glass ceiling have identified a variety of obstacles (including glass cliffs, glass walls, and glass doors) that create a more complete understanding of the barriers that women experience in their careers. As organizations offer shorter job ladders and less job security, the career patterns of both women and men are exhibiting more downward, lateral, and static movement. In this career context, the glass ceiling may no longer be the ideal metaphor to represent the obstacles that women are most likely to encounter.

Article

Likoebe Maruping and Yukun Yang

Open innovation is defined as an approach to innovation that encourages a broad range of participants to engage in the process of identifying, creating, and deploying novel products or services. It is open in the sense that there is little to no restriction on who can participate in the innovation process. Open innovation has attracted a substantial amount of research and widespread adoption by individuals and commercial, nonprofit, and government organizations. This is attributable to three main factors. First, open innovation does not restrict who can participate in the innovation process, which broadens the access to participants and expertise. Second, to realize participants’ ideas, open innovation harnesses the power of crowds who are normally users of the product or service, which enhances the quality of innovative output. Third, open innovation often leverages digital platforms as a supporting technology, which helps entities scale up their business. Recent years have witnessed a rise in the emergence of a number of digital platforms to support various open innovation activities. Some platforms achieve notable success in continuously generating innovations (e.g., InnoCentive.com, GitHub), while others fail or experience a mass exodus of participants (e.g., MyStarbucksIdea.com, Sidecar). Prior commentaries have conducted postmortems to diagnose the failures, identifying possible reasons, such as overcharging one side of the market, failing to develop trust with users, and inappropriate timing of market entry. At the root of these and other challenges that digital platforms face in open innovation is the issue of governance. In the article, governance is conceptualized as the structures determining how rigidly authority is exerted and who has authority to make decisions and craft rules for orchestrating key activities. Unfortunately, there is no comprehensive framework for understanding governance as applied to open innovation that takes place on digital platforms. A governance perspective can lend insight on the structure of how open innovation activities on digital platforms are governed in creating and capturing value from these activities, attracting and matching participants with problems or solutions, and monitoring and controlling the innovation process. To unpack the mystery of open innovation governance, we propose a framework by synthesizing and integrating accreted knowledge from the platform governance literature that has been published in prominent journals over the past 10 years. Our framework is built around four key considerations for governance in open innovation: platform model (firm-owned, market, or community), innovation output ownership (platform-owned, pass-through, or shared), innovation engagement model (transactional, collaborative, or embedded), and nature of innovation output (idea or artifact). Further, we reveal promising research avenues on the governance of digital open innovation platforms.

Article

Heather A. Haveman and Gillian Gualtieri

Research on institutional logics surveys systems of cultural elements (values, beliefs, and normative expectations) by which people, groups, and organizations make sense of and evaluate their everyday activities, and organize those activities in time and space. Although there were scattered mentions of this concept before 1990, this literature really began with the 1991 publication of a theory piece by Roger Friedland and Robert Alford. Since that time, it has become a large and diverse area of organizational research. Several books and thousands of papers and book chapters have been published on this topic, addressing institutional logics in sites as different as climate change proceedings of the United Nations, local banks in the United States, and business groups in Taiwan. Several intellectual precursors to institutional logics provide a detailed explanation of the concept and the theory surrounding it. These literatures developed over time within the broader framework of theory and empirical work in sociology, political science, and anthropology. Papers published in ten major sociology and management journals in the United States and Europe (between 1990 and 2015) provide analysis and help to identify trends in theoretical development and empirical findings. Evaluting these trends suggest three gentle corrections and potentially useful extensions to the literature help to guide future research: (1) limiting the definition of institutional logic to cultural-cognitive phenomena, rather than including material phenomena; (2) recognizing both “cold” (purely rational) cognition and “hot” (emotion-laden) cognition; and (3) developing and testing a theory (or multiple related theories), meaning a logically interconnected set of propositions concerning a delimited set of social phenomena, derived from assumptions about essential facts (axioms), that details causal mechanisms and yields empirically testable (falsifiable) hypotheses, by being more consistent about how we use concepts in theoretical statements; assessing the reliability and validity of our empirical measures; and conducting meta-analyses of the many inductive studies that have been published, to develop deductive theories.

Article

Robert J. David, Pamela S. Tolbert, and Johnny Boghossian

Institutional theory is a prominent perspective in contemporary organizational research. It encompasses a large, diverse body of theoretical and empirical work connected by a common emphasis on cultural understandings and shared expectations. Institutional theory is often used to explain the adoption and spread of formal organizational structures, including written policies, standard practices, and new forms of organization. Tracing its roots to the writings of Max Weber on legitimacy and authority, the perspective originated in the 1950s and 1960s with the work of Talcott Parsons, Philip Selznick, and Alvin Gouldner on organization–environment relations. It subsequently underwent a “cognitive turn” in the 1970s, with an emphasis on taken-for-granted habits and assumptions, and became commonly known as “neo-institutionalism” in organizational studies. Recently, work based on the perspective has shifted from a focus on processes involved in producing isomorphism to a focus on institutional change, exemplified by studies of the emergence of new laws and regulations, products, services, and occupations. The expansion of the theoretical framework has contributed to its long-term vitality, though a number of challenges to its development remain, including resolving inconsistencies in the different models of decision-making and action (homo economicus vs. homo sociologicus) that underpin institutional analysis and improving our understanding of the intersection of socio-cultural forces and entrepreneurial agency.

Article

Jingjing Ma, John M. Schaubroeck, and Catherine LeBlanc

Interpersonal trust refers to confidence in another person (or between two persons) and a willingness to be vulnerable to him or her (or to each other). In contemporary organizational science, research conducted within organizations has extensively investigated personal, dyadic, and contextual factors that motivate interpersonal trust (i.e., trust between two persons) and the consequence of interpersonal trust for the trustor and the trustee. This line of work distinguishes between two orientations that researchers have taken when conceptualizing interpersonal trust: unidirectional trust and bidirectional trust. Unidirectional trust refers to a focus on one person’s trust in another without regard to the reciprocation of that trust. Unidirectional trust research investigates trust in another party at a higher hierarchy level (e.g., followers’ trust in the leader), a lower hierarchy level (e.g., the leader’s trust in followers), or at the same hierarchy level (e.g., employees’ trust in coworkers). Bidirectional trust focuses on the shared trust in a dyad. Research on bidirectional trust helps to provide insights about the complex pattern and evolution of interpersonal trust over time. However, research investigating bidirectional trust is relatively limited compared to unidirectional trust. Besides research on interpersonal trust within the same work unit, there is also a recent trend toward investigating interpersonal trust across work unit and organizational boundaries. Another important line of literature regarding interpersonal trust is the investigation of the causes and consequences of interpersonal trust violations and the effectiveness of remedies (e.g., apologies) for these violations.

Article

Intersectionality is a critical framework that provides us with the mindset and language for examining interconnections and interdependencies between social categories and systems. Intersectionality is relevant for researchers and for practitioners because it enhances analytical sophistication and offers theoretical explanations of the ways in which heterogeneous members of specific groups (such as women) might experience the workplace differently depending on their ethnicity, sexual orientation, and/or class and other social locations. Sensitivity to such differences enhances insight into issues of social justice and inequality in organizations and other institutions, thus maximizing the chance of social change. The concept of intersectional locations emerged from the racialized experiences of minority ethnic women in the United States. Intersectional thinking has gained increased prominence in business and management studies, particularly in critical organization studies. A predominant focus in this field is on individual subjectivities at intersectional locations (such as examining the occupational identities of minority ethnic women). This emphasis on individuals’ experiences and within-group differences has been described variously as “content specialization” or an “intracategorical approach.” An alternate focus in business and management studies is on highlighting systematic dynamics of power. This encompasses a focus on “systemic intersectionality” and an “intercategorical approach.” Here, scholars examine multiple between-group differences, charting shifting configurations of inequality along various dimensions. As a critical theory, intersectionality conceptualizes knowledge as situated, contextual, relational, and reflective of political and economic power. Intersectionality tends to be associated with qualitative research methods due to the central role of giving voice, elicited through focus groups, narrative interviews, action research, and observations. Intersectionality is also utilized as a methodological tool for conducting qualitative research, such as by researchers adopting an intersectional reflexivity mindset. Intersectionality is also increasingly associated with quantitative and statistical methods, which contribute to intersectionality by helping us understand and interpret the individual, combined (additive or multiplicative) effects of various categories (privileged and disadvantaged) in a given context. Future considerations for intersectionality theory and practice include managing its broad applicability while attending to its sociopolitical and emancipatory aims, and theoretically advancing understanding of the simultaneous forces of privilege and penalty in the workplace.

Article

Dean Tjosvold, Alfred S. H. Wong, and Nancy Yi Feng Chen

Leaders and employees deal with conflict as they collaborate in the everyday life of organizations and as they confront crises. Depending how they manage conflict, they can frustrate employees and provoke customer complaints but also stimulate their relationships and decision-making. The possibilities of constructive conflict are significant and documented, but the challenges to making conflict constructive are significant too. The practice of defining conflict as a win-lose battle has obscured ways of managing conflict constructively. Fortunately, researchers have developed concepts and findings that can help managers and employees manage conflict. A first step is developing a useful, unconfounded definition of conflict. Deutsch proposed that conflict occurs when there are incompatible activities. Team members are in conflict as they argue for different options for a decision. Deutsch also theorized that how people believe their goals are related very much affects their interaction, specifically their conflict management. They can conclude that their goals are cooperative (positively related), competitive (negatively related), or independent. People with cooperative goals believe that as one of them moves toward attaining goals, that helps others achieve their goals. In competition, people conclude that their goals are negatively related and only one can succeed in the interaction. In independence, one person ‘s success neither benefits nor harms the others’ success. Researchers have found that the nature of the cooperative or competitive relationship between protagonists has a profound impact on their mutual motivation to discuss conflicts constructively. Cooperative and competitive methods of handling conflict have consistent, powerful effects on constructive conflict. Team members with cooperative goals engage in open-minded discussions where they develop and express their opposing positions, including the ideas, reasons, and knowledge they use to support their positions. They also work to understand each other’s perspectives. They are then in a position to combine the best of each other’s ideas and create effective resolutions of conflict that they are both committed to implement. Teams that rely on cooperative, mutual benefit interaction ways of managing conflict and avoid competitive, win-lose ways been found to use conflict to promote high quality decisions, to stimulate learning, and to strengthen their work relationships. What has an impact on constructive conflict is not so much the occurrence, amount, or type of conflict but how leaders and employees approach and handle their conflicts, specifically, the extent to which their discussions are cooperative and open-minded.

Article

Organizational diversity is regarded positively, but haphazardly embraced. The absence of a cultural mandate at work (one which includes an emphasis on managing differences) can result in minority assimilation, and in either unintended bullying or in intentional abuse. Declining stock price, loss of goodwill, inability to recruit qualified candidates, and internal havoc marked by perpetuation of firm dysfunction may occur. These outcomes are especially alarming in the face of transformative population growth, in which minorities are predicted to become the demographic majority within the United States. Inattention to employee misconduct prevents firms from experiencing enhanced productivity. Encouraging civil behavior is thus essential to engendering camaraderie in a diverse workforce, in which incivilities, or micro-inequities, are disproportionately targeted at minority groups. Management modeling of appropriate behavior (and swift action toward perpetrators for non-compliance) are necessary to achieve human capital integration.

Article

Paulina Junni and Satu Teerikangas

There are many types of mergers and acquisitions (M&A), be they a minority acquisition to explore a potential high growth emerging market, a takeover of a financially distressed firm with the aim of turning it around, or a private equity firm seeking short- to medium-term returns. The terms “merger” and “acquisition” are often used interchangeably, even though they have distinct denotations: In an acquisition, the acquirer purchases the majority of the shares (over 50%) of another company (the “target”) or parts of it (e.g., a business unit or a division). In a merger, a new company is formed in which the merging parties share broadly equal ownership. The term “merger” is often used strategically by acquirers to alleviate fears and send out a message of friendly combination to employees. In terms of transaction numbers, the majority of M&A transactions are acquisitions, whereas mega-merger deals gain media attention owing to transaction size. While M&A motives, acquirer types, and dynamics differ, most M&A share the aim of generating value from the transaction in some form. Yet a prevalent dilemma in the M&A practice and literature is that M&A often fail to deliver the envisioned benefits. Reasons for negative acquirer performance stem from overestimating potential synergies and paying high premiums for targets pre-deal. Another problem lies in securing post-deal value creation. Post-deal challenges relate to optimal integration speed, the degree of integration, change, or integration management, communication, resource and knowledge sharing, employee motivation and turnover, and cultural integration. Researchers are calling for more research on how pre-deal processes such as target evaluation and negotiations influence M&A performance. A closer look at this literature, though, highlights several controversies. First, the literature often lacks precision when it comes to defining M&A. We call for future research to be explicit concerning the type of merger or acquisition transaction, and the organizational contexts of the acquiring and target firms. Second, we are still lacking robust and unified frameworks that explain M&A occurrence and performance. One of the reasons for this is that the literature on M&A has developed in different disciplines, focusing on either pre- or post-deal aspects. This has resulted in a “silo” effect with a limited understanding about the combined effects of financial, strategic, organizational, and cultural factors in the pre- and post-deal phases on M&A performance. Third, M&A studies have failed to critically scrutinize the M&A phenomenon, including aspects such as power, politics, and managerial drivers. Fourth, scholars have tended to focus on single, isolated M&A. We call for future research on M&A programs and M&A as part of broader corporate strategies. Finally, the study of M&A has suffered from a managerial bias, with insufficient attention paid to the rank and file, such as engineers, or marketing or administrative employees. We therefore call for future research that takes a broader view on actors involved in M&A, placing a greater emphasis on individuals’ roles and practices.

Article

With an increase in the number of diverse groups of individuals (including ethnic minorities) entering organizations, managing diversity in the 21st-century workplace has become imperative. The workplace provides employees with opportunities to work interactively with others in diverse situations and to express their identities, including ethnic identity. Despite Western-based organizations’ adoption of strategies such as affirmative action in an effort to integrate diverse employees into their workplaces, members of ethnic minority groups may still experience great difficulties in obtaining instrumental and social support in these organizations. While some minorities may not outwardly manifest their ethnicity, in the majority of cases, ethnic identity forms a core identity of many individuals and employees do not leave this identity at the doorstep of the organization. In some countries, ethnic minorities have refused to assimilate into the majority workplace culture, and have maintained strong ethnic identities. By outwardly expressing their identities, ethnic minority employees face discrimination, stereotyping and micro-aggressive behaviors within the workplace, and in the majority of cases are relegated to dead-end lower level posts and face barriers to their career advancement. Also, having strong ethnic identities results in a conflict between minorities ethnic identities and the workplace culture. This is especially apparent in terms of religious beliefs and values. Embracing ethnic identity of migrants into organizational cultures is especially challenging for organizations these days, as many immigrants are highly skilled professionals that enter western corporations. They experience discrimination and not receiving support in order to advance their careers.

Article

The New Public Management (NPM) is a major and sustained development in the management of public services that is evident in some major countries. Its rise is often linked to broader changes in the underlying political economy, apparent since the 1980s, associated with the rise of the New Right as both a political and an intellectual movement. The NPM reform narrative includes the growth of markets and quasi-markets within public services, empowerment of management, and active performance measurement and management. NPM draws its intellectual inspiration from public choice theory and agency theory. NPM’s impact varies internationally, and not all countries have converged on the NPM model. The United Kingdom is often taken as an extreme case, but New Zealand and Sweden have also been highlighted as “high-impact” NPM states, while the United States has been assessed as a “medium impact” state. There has been a lively debate over whether NPM reforms have had beneficial effects or not. NPM’s claimed advantages include greater value for money and restoring governability to an overextended public sector. Its claimed disadvantages include an excessive concern for efficiency (rather than democratic accountability) and an entrenchment of agency-specific “silo thinking.” Much academic writing on the NPM has been political science based. However, different traditions of management scholarship have also usefully contributed in four distinct areas: (a) assessing and explaining performance levels in public agencies, (b) exploring their strategic management, (c) managing public services professionals, and (d) developing a more critical perspective on the resistance by staff to NPM reforms. While NPM scholarship is now a mature field, further work is needed in three areas to assess: (a) whether public agencies have moved to a post-NPM paradigm or whether NPM principles are still embedded even if dysfunctionally so, (b) the pattern of the international diffusion of NPM reforms and the characterization of the management knowledge system involved, and (c) NPM’s effects on professional staff working in public agencies and whether such staff incorporate, adapt, or resist NPM reforms.