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Open Access
Article
Publication date: 26 January 2024

Alana Vandebeek, Wim Voordeckers, Jolien Huybrechts and Frank Lambrechts

The purpose of this study is to examine how informational faultlines on a board affect the management of knowledge owned by directors and the consequences on organizational…

1306

Abstract

Purpose

The purpose of this study is to examine how informational faultlines on a board affect the management of knowledge owned by directors and the consequences on organizational performance. In this study, informational faultlines are defined as hypothetical lines that divide a group into relatively homogeneous subgroups based on the alignment of several informational attributes among board members.

Design/methodology/approach

The study uses unique hand-collected panel data covering 7,247 board members at 106 publicly traded firms to provide strong support for the hypothesized U-shaped relationship. The authors use a fixed effects approach and a system generalized method of moments approach to test the hypothesis.

Findings

The study finds that the relationship between informational faultlines on a board and organizational performance is U shaped, with the least optimal organizational performance experienced when boards have moderate informational faultlines. More specifically, informational faultlines within boards are negatively related to organizational performance across the weak-to-moderate range of informational faultlines and positively related to organizational performance across the moderate-to-strong range.

Research limitations/implications

By explaining the mechanisms through which informational faultlines are related to organizational performance, the authors contribute to the literature in a number of ways. By conceptualizing how the management of knowledge plays an important role in the particular setting of corporate boards, the authors add not only to literature on knowledge management but also to the faultline and corporate governance literature.

Originality/value

This study offers a rationale for prior mixed findings by providing an alternative theoretical basis to explain the effect of informational faultlines within boards on organizational performance. To advance the field, the authors build on the concept of knowledge demonstrability to illuminate how informational faultlines affect the management of knowledge within boards, which will translate to organizational performance.

Details

Journal of Knowledge Management, vol. 28 no. 11
Type: Research Article
ISSN: 1367-3270

Keywords

Open Access
Article
Publication date: 1 February 2023

Pamsy P. Hui, Jeanne Ho-Ying Fu and Yuk-yue Tong

Interorganizational collaboration has been a major source of exploratory innovation. Despite much research, the authors’ understanding about how partner cultural distance is…

Abstract

Purpose

Interorganizational collaboration has been a major source of exploratory innovation. Despite much research, the authors’ understanding about how partner cultural distance is harnessed for exploratory innovation is limited. The authors’ conceptual framework aims to address this gap by explaining the social-psychological processes between perceived partner cultural distance and exploratory innovation.

Design/methodology/approach

Drawing on research in organizational learning and culture mixing, the authors propose a multilevel model with two parallel processes – cultural brokering and cultural defense. If managers are engaged in the former and are protected from the latter, then the partnership will produce more exploratory innovation. Cultural brokering is encouraged by prompting a learning mindset, while cultural defense is preempted by dampening social categorization across organizational boundaries.

Findings

Cultural brokering can be encouraged by building operational-level managers' (OLMs') collaborative strength through developing a learning orientation, allowing them delivery for exploration, cultivating mutual trust with partners. Cultural defense can be preempted by protecting OLMs from intergroup anxieties through providing organizational support to the OLMs, bridging social categorization faultlines and setting shared collaborative goals. Whether an alliance can unleash its potential depends on not just how cultural brokering is enabled but also how cultural defense is curtailed.

Originality/value

This paper takes a microfoundational approach and considers micro-level processes in a partnership. Furthermore, the model takes the operational managers' perspective and defines culture at the organizational level. All these differences allow us to provide a nuanced picture of how diverse partnerships can be harnessed for exploratory innovation through a few easily-implementable measures.

Details

Cross Cultural & Strategic Management, vol. 30 no. 2
Type: Research Article
ISSN: 2059-5794

Keywords

Open Access
Article
Publication date: 21 June 2022

Matthew B. Perrigino and Marjorie Jenkins

An individual engages in a façade of conformity by attempting to appear to embrace their organization's values when, in truth, they do not. While numerous studies investigate the…

1576

Abstract

Purpose

An individual engages in a façade of conformity by attempting to appear to embrace their organization's values when, in truth, they do not. While numerous studies investigate the negative outcomes associated with facades of conformity, fewer studies consider its antecedents. Therefore, this study aims to investigate the association between diversity-related influences – including individuals' beliefs, other unit members' beliefs, unit gender diversity and unit racial diversity – and individuals' propensities to engage in a façade of conformity.

Design/methodology/approach

This paper administered an online survey to 2,122 employees nested within 151 units located at a hospital site located in the southeastern United States. Hierarchical linear modeling and relative weights analyses were used to test the study hypotheses which aimed to determine how objective diversity and perceptions associated with diversity increase or diminish facades of conformity.

Findings

In this paper individuals' and other unit members' beliefs that their organization values diversity were negatively associated with facades of conformity; however, there was a positive association between unit gender diversity and facades of conformity. There were no statistically significant associations involving unit racial diversity or interactive effects. Overall, the results indicate that it is less likely that employees will engage in façades of conformity when diversity is valued within organizations.

Originality/value

By further expanding understanding of the concept of façades of conformity within the humanities and social sciences literature, this study highlight the importance of allowing and encouraging employees to “be themselves.”

Details

Journal of Humanities and Applied Social Sciences, vol. 5 no. 4
Type: Research Article
ISSN: 2632-279X

Keywords

Abstract

Details

Learning and Teaching in Higher Education: Gulf Perspectives, vol. 14 no. 1
Type: Research Article
ISSN: 2077-5504

Open Access
Article
Publication date: 9 July 2024

Shanzhong Du and June Cao

Industrial robots are of great significance to the long-term development of family firms. Drawing on the lens of the principal–principal conflict, this paper aims to investigate…

Abstract

Purpose

Industrial robots are of great significance to the long-term development of family firms. Drawing on the lens of the principal–principal conflict, this paper aims to investigate the influence of family non-executive directors on robot adoption in Chinese family firms.

Design/methodology/approach

This paper selects the family firms in China from 2011 to 2019 as the sample. Furthermore, the authors manually collected the family non-executive directors and constructed the robot adoption variable utilizing data sourced from the International Federation of Robotics. In brief, this paper constructs a comprehensive framework of the mechanisms and additional tests pertaining to the influence of family non-executive directors on robot adoption.

Findings

This paper finds that family non-executive directors can promote robot adoption in family firms. The underlying mechanism analysis shows that family non-executive directors promote robot adoption by exerting financial and human effects. This paper further finds that the characteristics of family non-executive directors, such as kinship, differential shareholding and excessive directors, affect the role of family non-executive directors. Finally, robot adoption can improve future performance, and the promotional effect is more evident when family members are non-executive directors.

Originality/value

This paper contributes to the related literature from the following two aspects. Firstly, this paper decomposes the types of family directors to understand the role of family non-executive directors, which challenges the assumption that family board members are homogeneous in family firms. Second, this paper expands the research on the factors that influence robot adoption in emerging economies from the micro-enterprise level. In addition, the findings in this paper have managerial implications for family firms to optimize their strategic decisions with the help of the mode of board right allocation.

Details

China Accounting and Finance Review, vol. 26 no. 4
Type: Research Article
ISSN: 1029-807X

Keywords

Open Access
Article
Publication date: 3 November 2023

Nikola Rosecká and Ondřej Machek

This paper aims to examine the effects of socio-emotional wealth importance (SEWi) in family firms and family firm-specific HR practices, namely professionalization and…

Abstract

Purpose

This paper aims to examine the effects of socio-emotional wealth importance (SEWi) in family firms and family firm-specific HR practices, namely professionalization and bifurcation bias, on their entrepreneurial orientation (EO).

Design/methodology/approach

The paper surveyed 133 small and medium-sized family firms in the USA. The respondents were recruited through Prolific Academic.

Findings

When SEWi is low, a family firm becomes more similar to a non-family firm, thereby enjoying the benefits associated with EO. When SEWi is high, a family firm leverages the unique resources and capabilities specific to family firms. Moderate SEWi levels are associated with lower EO levels. Additionally, the results support the argument that professionalization (involving non-family managers, formalization and decentralization) fosters EO, while bifurcation bias hinders its development.

Originality/value

Unlike previous studies, this paper posits a non-linear, U-shaped relationship between SEWi and EO. It contributes to the field by empirically investigating the effects of professionalization and bifurcation bias on EO in family firms.

Details

Journal of Small Business and Enterprise Development, vol. 30 no. 7
Type: Research Article
ISSN: 1462-6004

Keywords

Open Access
Article
Publication date: 8 October 2022

Chris Brown, Ruth Luzmore and Jana Groß Ophoff

Background: The ideas-informed society represents a desired situation in which: (1) citizens see value in staying up to date, and; (2) citizens regularly keep themselves up to…

Abstract

Background: The ideas-informed society represents a desired situation in which: (1) citizens see value in staying up to date, and; (2) citizens regularly keep themselves up to date by actively, openly and critically engaging with new ideas, developments and claims to truth. As a result, it is hoped citizens become increasingly knowledgeable, better able to make good decisions, and better positioned to support new progressive norms and beliefs. Yet despite these potential benefits, a substantive proportion of the population do not value staying up to date, nor attempt to do so.

Methods: With this research project we seek to identify whether the theoretical lens of anomie can account for why “ideas refusers” do not engage with ideas, as well as provide clues as to how they might be encouraged to do so. To explore the possible impacts of anomie on ideas-engagement we conducted four online focus groups, interviewing a purposive sample of ten individuals who previously indicated they were ideas refusers.

Results: Our findings identify eleven themes which seemingly account for why ideas refusers do not currently engage with ideas. Of these, ten are related to anomie, including themes which encapsulate feelings of frustration, anxiety, confusion and powerlessness regarding the complexities of modern society.

Conclusions: We also identify three areas of future focus that might help the ongoing development of the ideas-informed society. These are: (1) the more positive and relevant reporting of ideas; (2) supporting “healthy” face-to-face engagement with ideas; and (3) supporting effective ideas engagement through social media.

Details

Emerald Open Research, vol. 1 no. 1
Type: Research Article
ISSN: 2631-3952

Keywords

Open Access
Article
Publication date: 10 August 2022

Emilia Klepczarek

The purpose of this study is to provide the conditions for governance effectiveness and explain why the same rules often result in not the same norms.

3243

Abstract

Purpose

The purpose of this study is to provide the conditions for governance effectiveness and explain why the same rules often result in not the same norms.

Design/methodology/approach

The author proposes a “corporate governance culture” concept explaining the differences within corporate governance institutions and making it possible to measure their effectiveness. Based on a literature review that included 186 research studies published in the corporate governance field, the author found that most (160) concern structural numerical variables. Only 26 refer to behavioural and cultural issues, and they support the idea of an interdisciplinary approach to governance problems.

Findings

A significant contribution of this paper is that it proposes an integrative framework that operationalises psychological, sociological and philosophical issues that influence corporate governance mechanisms. The proposed concept can reanimate the debate about the need for tight governance regulations or leaving room for a loose governance regime.

Originality/value

The idea of “corporate governance culture” explains the divergences identified in studies on corporate governance mechanisms, pointing out behavioural and cultural issues as crucial aspects of governance bodies.

Details

Corporate Governance: The International Journal of Business in Society, vol. 23 no. 1
Type: Research Article
ISSN: 1472-0701

Keywords

Open Access
Article
Publication date: 18 July 2019

Fabrizia Sarto, Sara Saggese, Riccardo Viganò and Marianna Mauro

The purpose of this paper is to provide insights into the implications of board human capital heterogeneity for company innovation by focusing on the educational and the…

2753

Abstract

Purpose

The purpose of this paper is to provide insights into the implications of board human capital heterogeneity for company innovation by focusing on the educational and the functional background of directors. Moreover, it examines the moderating effect of the CEO expertise-overlap within the innovation domain on the relationship between board human capital heterogeneity and firm innovation.

Design/methodology/approach

The hypotheses are tested through a set of ordinary least squares regressions on a unique dataset of 149 Italian high-tech companies observed between 2012 and 2015.

Findings

Findings show that the educational and the functional background heterogeneity of directors increase both the innovation input and output. However, results highlight that these relationships are negatively moderated by the CEO expertise-overlap within the innovation domain.

Practical implications

The paper emphasizes the importance of appointing directors with different and specific educational and functional backgrounds to foster the company innovation.

Originality/value

The paper fills a gap in the literature as it has devoted limited attention to the performance implications of board human capital heterogeneity in the high-tech industry where knowledge and skills are the primary sources of value. Moreover, the paper integrates the research on the CEO-board interface by shedding light on how the CEO expertise within the innovation domain affects the contribution of heterogeneous boards to company innovation.

Details

Management Decision, vol. 58 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 8 February 2021

Graham Jones, Bernardita Chirino Chace and Justin Wright

The innovative capacity of an organization is typically realized through unit-level teams. Previous studies correlate innovation performance with cultural diversity of teams, but…

5751

Abstract

Purpose

The innovative capacity of an organization is typically realized through unit-level teams. Previous studies correlate innovation performance with cultural diversity of teams, but note that team dynamics need to be optimized to derive maximum benefit. Herein, this study offers an assessment of available team building instruments through the lens of diverse innovation teams. In a demonstration project in the pharmaceutical industry, this study then outlines specific tools and approaches which can be successfully deployed through team coaching and mentoring.

Design/methodology/approach

A cluster of nine innovation teams with varying degrees of cultural diversity was provided with assessment and management instruments which had been identified and field tested by a mentoring team. Content included cultural awareness tools, innovation team profiling methods and Team Science (SciTS) ideology. Teams were funded, coached and mentored through a six-month performance period and assessed at regular intervals.

Findings

Team assessments provided correlations between performance (measured by project completion and new intellectual property generated) and diversity together with wealth of information on intra-team culture and dynamics. Concrete recommendations from the study include adoption of appropriate communication standards to promote inclusivity, use of SciTS operational tracking metrics to enhance engagement, use of the FourSight group profiling methodology and cultural quotient scale cultural awareness instruments at team-forming stage to promote effective dynamics and enhance inclusivity.

Practical implications

Cultural diversity has a positive impact on innovation teams. This said, for maximum benefit cultural awareness of team members should be optimized to avoid unintended conflicts developing. Such issues can be exacerbated when teams are deployed remotely and preventative measures should be established. These issues became of heightened significance as a result of telecommuting imposed by the COVID-19 pandemic and have longer-term implications, as corporations consider global air travel reduction through environmental concerns. A tracking tool is described to monitor team engagement and promote inclusivity. It is expected that the learnings can influence how teams can best form, normalize and operate within corporate innovation programs and form the basis of long-term impact studies.

Originality/value

This represents the first systematic study on the impact of cultural diversity and team dynamics within innovation programs in the pharmaceutical industry. The tools and methodologies deployed are widely available and can be adopted by innovation teams in many adjacent industries with established innovation ecosystems.

Details

International Journal of Innovation Science, vol. 13 no. 2
Type: Research Article
ISSN: 1757-2223

Keywords

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