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The impact of leader-member exchange (LMX) differentiation on group performance has been considered ambiguous. The purpose of this paper is to resolve this ambiguity by theorizing and examining a curvilinear relationship between LMX differentiation and group performance, and the moderating effects of group diversity on this relationship.

Data were drawn from 63 work groups (consisting of 322 members and 63 group leaders) selected from 27 technology service companies in South Korea. Group members rated their perceived LMX quality, while the human resource (HR) directors of each company assessed group performance.

The results showed that LMX differentiation had an inverted U-shaped relationship with group performance and that gender diversity and age diversity negatively moderated that relationship. However, the interaction between LMX differentiation and education-level diversity was not significant.

This study extends extant research by addressing the inconsistency among theoretical perspectives on the effects of LMX differentiation. This study transcends earlier research by considering the complex process of LMX differentiation, such as the curvilinear relationship between LMX differentiation and group performance, and the moderating effects of group diversity on that relationship.

Accumulating evidence suggests that Team-member exchange (TMX) influences employee work attitudes and behaviours separately from the effects of leader-member exchange (LMX). In particular, little is known of the effect of LMX differentiation (in-group versus out-group) as a process of social exchange that can, in turn, affect TMX quality. To explore this phenomenon, this chapter presents a multi-level model of TMX in organizations, which incorporates LMX differentiation, team identification, team member affect at the individual level, and fairness of LMX differentiation and affective climate at the group-level. We conclude with a discussion of the implications of our model for theory, research, and practice.

This paper highlights the opportunity to investigate relations between the marketing and sales departments of fast moving consumer goods (FMCG) companies. Drawing on empirical results from social psychology, the authors develop a framework for exploring the social psychological causes and effects of intergroup relations in FMCG marketing. This conceptual model integrates two social psychological theories, the realistic group conflict theory, and the social identity theory. As a development to previous applications of these theories, the model extends beyond the social psychological effects of intergroup relations to consider the implications for organizational effectiveness. A number of research propositions to guide future research are also developed, and the paper concludes with a discussion of managerial and future research implications.

The purpose of this paper is to investigate whether the implementation of a defined competitive strategy – differentiation or cost leadership – brings about different value creation levels, where “value” is defined in a twofold perspective as “shareholder value” vs “stakeholder value” and “social capital”.

A sample of 169 European companies is investigated. Simple linear regressions and t-tests for the equality of means are conducted.

While no significant differences are found in the creation of value for the shareholders, firms following differentiation strategies generate considerably higher value for all the stakeholder groups than companies pursing cost leadership strategies. Results also show that size and reputational considerations play a significant role in explaining the different stakeholder value performances.

Some data such as off-balance sheet items could have influenced the calculation of the discriminant values for strategy classification.

Although the two groups manage to achieve comparable levels of profitability, the differentiators, presumably because of their structural outward-facing orientation, seem to be better positioned to meet the challenges of the next wave of growth, which resides in the substantial interconnection between economic and societal value. Companies need a better understanding of how the stakeholder value theory and social capital can influence value creation and long-term success.

In light of the importance of competitive strategy as a value-creation tool, the paper sheds new light on the relationship between competitive strategies and value creation.

The strategic orientation of Portuguese firms in the porcelain industry is examined empirically. In the process, the effective use of traditional generic strategies as opposed to emerging strategies is compared. Special attention is devoted to the utility of classical Porter’s generic strategies in comparison to time‐based differentiation strategy. The study concludes that different variations of the classical differentiation strategy, which includes time‐based differentiation, appear to be more effective than cost leadership or mixed generic strategies.

The purpose of this paper is to examine the influence of cognition on knowledge sharing between members of the acquiring and acquired organisations in the post-acquisition integration process. It specifically analyses differentiation between in-groups and out-groups, the perception of organisational identity and interaction among members of the acquired and acquiring organisations and how these three factors affect knowledge sharing.

The authors develop theoretical propositions and conduct an explorative pilot study on the basis of original interview data conducted with ten respondents in four Indian IT companies that have acquired firms abroad.

The authors find evidence for supporting the negative effect of in- and out-groups differentiation and the positive effect of interpersonal interaction on knowledge sharing among employees of the acquired and acquiring organisations. There was indicative, but less compelling, evidence for the negative influence of inter-group competition and the positive influence of perceived shared organisational identity on knowledge sharing. Different from the established view, the authors find that when Indian firms acquire firms abroad, they immediately initiate knowledge flows from the targets rather than going through a long period of integration prior to acquiring knowledge from the targets.

The paper contributes to the scholarly conversation on cognition and knowledge sharing and argues that firms that are located in developing economies and that acquire firms abroad behave in a way somewhat different from what Western literature postulates. This invites for further studies, both theoretical and empirical, to shed light on this phenomenon. The present paper is focused only on one country, India, and on a single industry, the IT industry. It is limited in its empirical part, mainly due to enormous difficulties in getting access to the field.

The study demonstrates how central individuals are to the process of knowledge sharing and the accomplishment of organisational objectives in a post-acquisition context. Managers should understand that the knowledge their employees possess is a strategic asset, and therefore how they use it is influential in attaining organisational goals in general, and acquisition integration objectives in particular. The creation of task- and project-related communities or groups can help in establishing a shared organisational identity, especially after the turbulent event of one company acquiring another one. The creation of communities or groups where socialisation is encouraged can lead to employees interacting with one another and developing a sense of belongingness with the community or group. Over time, this belongingness can translate into a shared organisational identity, which is beneficial for the organisation. The findings suggest that the creation of task- or project-oriented communities and groups is a powerful way to achieve that.

The contribution of the paper is fourfold. First, while macro orientation dominates literature on the growth of the Indian IT industry, this study is conducted at the individual level of analysis, by focusing on managers in acquiring Indian IT firms. Second, whereas studies that have examined cognition and knowledge sharing have done so mainly through social capital lenses, this paper focuses on factors that are based on the inherent tendency of human beings to categorise themselves and other individuals. Third, the paper examines the links between cognition and knowledge sharing in an exciting context, namely, post-acquisition integration. Finally, while research on both post-acquisition integration and knowledge sharing is biased towards a Western context, this study investigates knowledge sharing and post-acquisition integration in the context of a major non-Western emerging economy.

This study aims to enhance knowledge on marketing strategies to increase repeat visitors. Furthermore, the authors suggest using appropriate destination information tailored to first-time visitors and repeat visitors as social capital.

This study compares the differences in satisfaction between first-time foreign tourists and those repeat visiting. The authors apply a theoretical framework based on optimal distinctiveness theory (ODT) and consumer knowledge to determine which actions maximize the satisfaction of each group. Then, the relationships among assimilation desire, differentiation desire and satisfaction are quantitatively analyzed.

The results show the difference in the relationship between assimilation and travel satisfaction for first-time visitors and repeat visitors. First-time visitors are satisfied with popular sightseeing spots with higher assimilation level, whereas repeat visitors are satisfied with moderately unpopular sightseeing spots with lower assimilation level. The results clarify that information reflecting only the popularity of destinations is significantly effective for first-time visitors, but unsuitable for repeat visitors. Therefore, it would be possible to propose to repeat visitors a combination of “moderately differentiated” destinations.

The first contribution is that on the basis of Brewer (1991), the quantitative analysis confirmed that the social identity of an individual changes from assimilation to differentiation with the accumulation of experience until the optimal point is found. The second contribution is that we combined several fields such as ODT (Brewer, 1991), familiarity (Alba and Hutchinson, 1987), trial/repeat behavior (Iyengar et al., 2015) and reference groups (Peter & Olson, 2010). The third contribution is that the authors proposed marketing strategies on the basis of the empirical analysis to increase the number of inbound tourists.

The purpose of this paper is to offer scholars an analytical framework to identify what the fundamental choices are in the definition of diversity (the what), in the motivation for diversity within organisations (the why), and in diversity policy as an organisational strategy (the how). It also hopes to stimulate diversity professionals to reflect upon the underlying assumptions of their policies and, if needed, provide inspiration as to how to align them towards a more coherent approach.

Academic contributions from political, social and management theory on diversity and diversity policy are analyzed on their conceptual coherence to identify important research gaps and construct an analytical framework that can serve to fill these gaps.

Although increasing societal diversity challenges many organisations to change and facilitate diversity within their structures, defining diversity and diversity policy is an uncommon habit both in the professional practice and in academic studies, while this definition influences the scope and validity of research results and can have a considerable impact on the practical consequences of diversity initiatives. The few studies in this field tend to be quantitative and jump to explanations for differences. The proposed analytical framework contains fundamental choices in the definition of diversity (the selection, interpretation, and categorization of modes of differentiation), the motivation for diversity within organisations (the desired base of difference is individual or collective, and arguments are moral or practical), and the diversity policy approach (the intensity is high or low, and the relevance of collective difference is high or low).

A theoretical exploration of the concept of diversity and diversity policy draws on sources from three distinct disciplines that have not been combined in such a way before, resulting in a new analytical framework that facilitates theory building and policy learning on the topic.

Aims to discuss the basic strategy taken by a specific manufacturer. States supply chain structures influence, directly, the supply chain inventory as a measure of performance. Examines the difference in the supply chain in relation to the manufacturer’s strategy to the product.

The purpose of this paper is to propose a conceptual model that delineates the psychological process and boundary condition of how leader-member exchange (LMX) differentiation influences team performance.

Based on theories of LMX and social information processing, it is argued that several important mechanisms underpin the relationship between LMX differentiation and team performance. The role of these variables in the relationship is discussed.

The team mechanisms such as affective climate and team-member exchange (TMX) serve as a boundary condition and psychological process to influence the LMX differentiation-team performance relationship. Their conceptual significance and how they affect the relationship are discussed.

This study focusses on theorizing TMX and affective climate as key variables in the LMX differentiation-team performance relationship. Future research considers examining the relative importance of other variables such as team potency or team cohesion to advance the understanding of the precise mechanisms that explain the relationship.

The proposed model increases the understanding of the role of affective climate in the relationships between LMX differentiation, TMX and team performance. It helps minimize the negative effect of LMX differentiation, and may ultimately lead to better team performance.

Although the implication of LMX differentiation has been discussed extensively, the research has not yet led to a firm conclusion as to its relationship with team outcomes. This study is one of the first to theorize affective climate and TMX as an important psychological mechanism and boundary condition to simultaneously influence the LMX differentiation – team performance relationship.