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This study investigates the way in which acquisition-related human factors affect knowledge transfer in the context of Chinese cross-border M&A for strategic assets. The authors find that the process of knowledge transfer is reciprocal for revenue and cost synergies, including explicit and tacit knowledge. The establishment of joint ventures (JV) in China after the takeover boosts product-oriented knowledge transfer from overseas-acquired firms in mature markets to Chinese acquirers. The promotion of overseas synergies stimulates complementary knowledge transfer flow, which is reversely transferred from Chinese acquirers to overseas-acquired subsidiaries such as low-saving sourcing and new market applications. This study identifies three acquisition-related human factors that impact overseas knowledge senders for knowledge transfer. These human factors are implemented by Chinese strategic investors as new shareholders during the loosen integration phase. The first facilitator is all-round communication programs with top management involvement, aiming to build up constructive communication channels to boost knowledge transfer. The second facilitator is competence-based trust, which stimulates cooperation and application based on similar professional competence between Chinese acquirers and their overseas-acquired subsidiaries. The impeder is a high turnover of key skilled workers at Chinese acquirers to undermine the effectiveness of knowledge transfer.

The occupational stress and well-being literature often focuses on specific causes of stress as health risk factors to be managed, on attributes of work environments that are stressful and/or risky, or on prevention and intervention strategies for managing these causes of stress as well as individual stress responses at work (Quick & Tetrick, 2003). The occupational stress literature has not focused on how executives and organizations can cause positive stress for people at work. In this chapter, we explore a principle-based framework for executive action to create positive, constructive stress for people at work.

The first major section of the chapter discusses seven contextual factors within which the principle-based framework is nested. The second major section of the chapter develops nine principles for executive action. The third and concluding section of the chapter turns the focus to a set of guidelines for executive action in managing their personal experience of stress.

Sudden crises, known as environmental jolts, can cripple unprepared organizations. In recent years, financial jolts have led many organizations, particularly government organizations, to respond by furloughing employees. Furloughs can engender various responses in employees that can lead to negative work outcomes for both the employees and the organization. Previous research shows that the implementation of strategic human resource management (SHRM) practices, such as commitment-based systems, can mitigate the negative effects of environmental jolts. Utilizing the knowledge-based view and affective events theory, we propose a multilevel model where SHRM practices moderate employee affective responses to furloughs, which, in turn, drive subsequent employee behavioral outcomes.

Implicit contracts are ‘invisible handshakes’ that are not legally binding but are grounded in mutual understanding between the parties of what they expect from each other. These contracts are very common both within the firm (e.g., between managers and employees) and in business relationships (e.g., between a firm and its suppliers). Typically, implicit contracts arise in relationships that are in some way open-ended. An extensive literature has showed that implicit contracts allow firms to create value by encouraging relationship-specific investment and motivating effort by stakeholders. This chapter focusses on how sustainability satisfies existing implicit contracts (including a broad social contract with society at large) and facilitates a firm in entering new implicit contracts by improving its trustworthiness. The author argues that the adoption of sustainability is directly related to industry- and firm-level variables that make implicit contracts important to a firm’s strategies, and inversely related to the strength of overriding factors that make a firm trustworthy. Based on this reasoning, the author analyses four areas in which rates of sustainability adoption can vary according to the importance of implicit contracts.

Despite the existence of a variety of approaches to the understanding of behavioral and managerial ethics in organizations and business relationships generally, knowledge of organizing systems for fidelity remains in its infancy. We use halakha, or Jewish law, as a model, together with the literature in sociology, economic anthropology, and economics on what it termed “middleman minorities,” and on what we have termed the Landa Problem, the problem of identifying a trustworthy economic exchange partner, to explore this issue.

The article contrasts the differing explanations for trustworthy behavior in these literatures, focusing on the widely referenced work of Avner Greif on the Jewish Maghribi merchants of the eleventh century. We challenge Greif’s argument that cheating among the Magribi was managed chiefly via a rational, self-interested reputational sanctioning system in the closed group of traders. Greif largely ignores a more compelling if potentially complementary argument, which we believe also finds support among the documentary evidence of the Cairo Geniza as reported by Goitein: that the behavior of the Maghribi reflected their deep beliefs and commitment to Jewish law, halakha.

Applying insights from this analysis, we present an explicit theory of heroic marginality, the production of extreme precautionary behaviors to ensure service to the principal.

Generalizing from the case of halakha, the article proposes the construct of a deep code, identifying five defining characteristics of such a code, and suggests that deep codes may act as facilitators of compliance. We also offer speculation on design features employing deep codes that may increase the likelihood of production of behaviors consistent with terminal values of the community.