1-5 of 5 Results

  • Keywords: resources x
Clear all

Article

Greg Fisher

Starting an entrepreneurial endeavor is an uncertain and ambiguous project. This uncertainty and ambiguity make it difficult for entrepreneurs to generate much needed resources and support. In order to address this difficulty, a new venture needs to establish legitimacy, which entails being perceived as desirable, proper, or appropriate within the socially constructed system of norms, values, beliefs, and definitions within which it operates. New venture legitimacy is generated from various sources and hence has three broad dimensions—a cognitive, a moral, and a pragmatic dimension. The cognitive dimension accounts for the extent to which the activities and purpose of a venture are understood by key audiences and how knowledge about that venture spreads. The moral dimension reflects the extent to which a venture is perceived to be doing the right thing. The pragmatic dimension accounts for the extent to which a new venture serves the interests of critical constituents. All three of these dimensions factor into a legitimacy assessment of a new venture. Legitimacy is important for new ventures because it helps them overcome their liabilities of newness, allowing them to mobilize resources and engage in transactions, thereby increasing their chances of survival and success. Although legitimacy matters for almost all new ventures, it is most critical if an entrepreneur engages in activities that are new and novel, such as establishing a new industry or market or creating a new product or technology. In these circumstances, it is most important for entrepreneurs to strategically establish and manage a new venture’s legitimacy. The strategic establishment and management of new venture legitimacy may entail arranging venture elements to conform with the existing environment, selecting key environments in which to operate, manipulating elements of the external environment to align with venture activities, or creating a whole new social context to accommodate a new venture. Enacting each of these new venture legitimation strategies may necessitate employing identity, associative, and organizational mechanisms. Identity mechanisms include cultural tools and identity claims such as images, symbols, and language by entrepreneurs to enhance new venture legitimacy. Associative mechanisms reflect the formation of relationships and connections with other individuals and entities to establish new venture legitimacy. Organizational mechanisms account for manipulating the organization and structure of a new venture and the achievement of success measures by that venture to attain legitimacy. Ultimately all of this is done so that various external parties, with different logics and perspectives, will evaluate a new venture as legitimate and be prepared to provide that venture with resources and support.

Article

M. Taner Albayrak and Alper Ertürk

Empowerment is considered one of the best managerial approaches to foster employees’ effectiveness, creativity, commitment, performance, and other positive work-related attitudes and behaviors while providing an essential tool for leadership development and succession planning. Empowerment involves delegation of authority, sharing of information and resources, and allowing employees to participate in decision-making processes. Empowerment practices result in positive outcomes through psychological empowerment, which comprises meaning, impact, self-determination, and competence. However, empowerment should be exercised with care, and before doing so, leaders should understand their employees’ competences, willingness, and characteristics, as well as the organizational culture and industrial dynamics. With the increasing use of information and communication technologies, inevitable influence of globalization, and continuously changing dynamics of interconnectedness among industries, the business environment has become more volatile, uncertain, complex, and ambiguous (VUCA). In order to survive in this environment, companies try to increase diversity in their workforce to make the best use of a broad variety of skills, experiences, and opinions, thus boosting creativity and innovativeness, which makes leadership more difficult than ever. With empowerment, the concept of delegation of power is important. Therefore, comparing the concept of personal empowerment with managerial empowerment helps in understanding that these concepts are different, although interconnected. Delegation of authority ensures that the manager transfers decision-making authority to subordinates under certain conditions. In delegation, authority is retained by the manager, who has the ultimate responsibility. On the other hand, in empowerment, authority is fully transferred to the person who is already doing the job, with all the rights and responsibilities to take the initiative as necessary. Empowerment is also closely related but different from the concept of motivation. In motivation, decision-making authority and control stays with the manager. Empowerment, on the other hand, gives employees the opportunity to participate in management, solve problems, and participate in decision-making processes. In this context, the concepts of delegation of authority, motivation, participation in management, and job enrichment are the domain dimensions of personal empowerment, and thus they are interrelated, yet different. It is important to create a common vision and to have common values in order to establish the empowerment process. Subordinates and supervisors need to trust each other, and empowerment needs to be seen as a philosophy, not a technique. It is necessary to create business conditions that enable the development of knowledge and skills in personnel empowerment. These conditions affect the perceptions and attitudes of the staff, such as, support, loyalty, identification, and trust. Empowering employees promotes organizational commitment, increases engagement, and reduces turnover intentions of key personnel. Because empowerment involves encouraging participation of subordinates in the decision-making process, it also helps to enhance the effectiveness of the decisions and reduce decision-making time. In the VUCA world, limited decision making could be a critical obstacle to establish and maintain sustainability in highly competitive business environments.

Article

Caroline Knight, Sabreen Kaur, and Sharon K. Parker

Work design refers to the roles, responsibilities, and work tasks that comprise an individual’s job and how they are structured and organized. Good work design is created by jobs high in characteristics such as autonomy, social support, and feedback, and moderate in job demands such as workload, role ambiguity, and role conflict. Established research shows good work design is associated with work outcomes such as job satisfaction, organizational commitment, work safety, and job performance. Poor work design is characterized by roles that are low in job resources and/or overly high in job demands, and has been linked to poor health and well-being, absenteeism, and poor performance. Work design in the 20th century was characterized by traditional theories focusing on work motivation, well-being, and performance. Motivational and stress theories of work design were later integrated, and work characteristics were expanded to include a whole variety of task, knowledge, social, and work-context characteristics as well as demands, better reflecting contemporary jobs. In the early 21st century, relational theories flourished, focusing on the social and prosocial aspects of work. The role of work design on learning and cognition was also recognized, with benefits for creativity and performance. Work design is affected by many factors, including individual traits, organizational factors, national factors, and global factors. Managers may impact employees’ work design “top-down” by changing policies and procedures, while individuals may change their own work design “bottom-up” through “job crafting.” In the contemporary era, technology and societal factors play an important role in how work is changing. Information and communication technology has enabled remote working and collaboration across time and space, with positive implications for efficiency and flexibility, but potentially also increasing close monitoring and isolation. Automation has led to daily interaction with technologies like robots, algorithms, and artificial intelligence, which can influence autonomy, job complexity, social interaction, and job demands in different ways, ultimately impacting how motivating jobs are. Given the rapidly changing nature of work, it is critical that managers and organizations adopt a human-centered approach to designing work, with managers sensitive to the positive and negative implications of contemporary work on employees’ work design, well-being, and performance. Further research is needed to understand the multitude of multilevel factors influencing work design, how work can be redesigned to optimize technology and worker motivation, and the shorter- and longer-term processes linking work design to under-researched outcomes like identity, cognition, and learning. Overall, the aim is to create high-quality contemporary work in which all individuals can thrive.

Article

The Resource-Based View of the firm (RBV) is a set of related theories sharing the assumptions of resource heterogeneity and resource immobility across firms. In this view, a firm is a bundle of resources, capabilities, or routines which create value and cannot be easily imitated or appropriated by competitors due to isolating mechanisms. Grounded in the economic traditions of the “Chicago School” of economic efficiency, the “Austrian School” of economics, and organizational economics, the RBV comprises theories that explain the existence of (sustained) competitive advantage and of economic rents. Empirical research from this perspective addresses both firm performance and firm behavior at the level of business strategy (e.g., within-industry competition) and corporate strategy (e.g., acquisitions). Initially developed through a series of papers by several authors in the 1980s–1990s, major extensions and refinements of the RBV include the knowledge-based view of the firm (KBV), dynamic capabilities, and the relational view, which recognizes capabilities can be developed and shared through alliances between firms.

Article

Financial precarity—the persistent worry about money and not having enough of it—is widespread, even in developed economies. It is a particular affliction of the poor, but it describes many people across the income distribution. Financial precarity is harmful not just to the individuals who experience it but also to the organizations in which they work. For individuals, financial precarity can negatively affect cognitive functioning, emotional stability, and social functioning. It is also associated with worse physical and psychological health, as well as depressed performance, both on and off the job. For employers, there are direct costs in the form of decreases in performance at work, as well as indirect costs in the form of increased absenteeism and health care costs. Private-sector companies are taking notice and have initiated a variety of programs to address employee financial precarity, including enhancing wages and offering financial assistance programs such as financial counseling, incentivized savings plans, and enhancements to retirement plans. Many of these programs have not been subjected to rigorous analysis (e.g., incentivized savings programs), and for some, there is little evidence of their effectiveness (e.g., financial literacy programs). Other programs (e.g., opt-out retirement plans) have a strong track record of success. Overall, private-sector employers are increasing their investments in employee financial wellness, which is a positive step in terms of providing needed supports to employees.