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This paper aims to derive and estimate a theory-based empirical specification that models a firm’s choices of its international diversification (ID) and product diversification (PD) and how they evolve over time in response to shocks that alter the relative cost and relative profitability of ID and PD.

We use longitudinal data on U.S. manufacturing firms from 1984 to 1999, a period of intense shocks associated with rapid globalization, to estimate a dynamic panel data Tobit model that permits lags in a firm’s adjustment to its optimal mix of ID and PD over time.

We find strong support for the theoretical framework underlying our empirical specifications and posited dynamics, with full adjustment estimated to require, on average, 1.5 years, a finding with implications for the time spacing of observations in empirical studies of ID and PD to avoid biased inferences. Among the globalization shocks during the time period studied, our results indicate that global competitive pressures and efficiency gains from global supply integration to be the more important factors driving U.S. firms toward greater ID relative to PD. Augmentation of firms’ organizational (managerial) and physical capital resources is also found to be important for supporting an expansion of ID relative to PD. Technological resource augmentation is instead found to favor expansion of PD relative to ID.

Our empirical specification is novel. It readily incorporates an often ignored but necessary theoretical condition that defines a firm’s optimal choices of its ID and PD, and it allows observed choices at a point in time to deviate from their optimal values.

Competitiveness is one of the most misunderstood concepts of the 1990s. It has drawn substantial attention from the government and business communities during the last 25 years. Morrisson et al. (1988) noted that between 1983 and 1987, the term competitiveness appeared more than 5700 times in the titles of newspapers and magazine articles. The growth of importance and interest can also be observed from the increase in the bibliographical entries in ABI/Inform database. From 1981 to 1986, the topic “international competitiveness” increased by about 26 listings per year (a total of 159 in 6 years) and the rate increased to 45 listings per year from 1987 to 1993. Academic interest in the area has also increased and as a result, new developments contemplating conceptualization and understanding of competitiveness are taking place. However, to no one's surprise, writers from different disciplines offer a variation in perspective when describing the concept, understanding, and postulation of competitiveness.

The purpose of this paper is to examine how the ranking of countries based on the World Economic Forum's (WEF') competitiveness index is changed when the underlying primitive data dimensions of this composite index are aggregated using weights that are endogenously determined for each country, instead of aggregated using the WEF's fixed set of weights applied to all countries.

The paper presents a method based on data envelopment analysis to determine weights for aggregating the underlying primitive data dimensions of any composite indicator. The approach determines endogenously the “best” weights a given observational unit (e.g. country) on the basis of its revealed performance on each primitive sub‐dimension underlying a composite index. The ranking of countries based on the values of a composite competitiveness index that uses the proposed endogenous weight method is then compared to the ranking based on the WEF's competitiveness index for the year 2006. The rankings are then compared and assessed to determine if the observed difference in the rankings are statistically significant.

A comparison of the ranking of countries on the basis of the value of each index reveals that countries do undergo a change in their competitiveness rank when endogenous weights are used. The results suggest the WEF's competitiveness index, which uses the same fixed weights applied to every country (or group of countries), creates a bias that favors countries that score high on the “technology” sub‐dimension of the index.

The study presents an alternative to the current practice of using a fixed set of weights applied uniformly to the basic unit of analysis. The method serves as a starting‐point for further research on the biases created by different weighting schemes to construct a composite indicator that aggregates primitive data, with the resulting composite index values then used to rank entities.

The method to determine endogenously the weights to be applied to each unit of analysis when constructing a composite indicator is novel and has wide applicability to the general issue of comparing performance across different units of analysis based on a composite index of performance (i.e. benchmarking).

Most composite indicators of national performance limit their scope to only economic performance criteria and aggregate primitive performance data using subjective fixed weight values applied uniformly to all countries. This paper proposes a weighting method to correct for biases inherent in the use of fixed and uniform weights, and it presents a composite performance indicator that encompasses both economic and non‐economic performance criteria.

The paper presents a method that endogenously determines country‐specific weights that explicitly take account of a country's own choices and achievements across primitive dimensions of performance. The method is then used to construct a composite inclusive index that combines economic performance with two other performance dimensions: environmental sustainability and governance.

Comparison of the endogenous weight method with the method of using fixed and uniform weights indicates a bias in the latter that penalizes countries, in terms of indicating lower relative performance, which are more diverse in their achievements among primitive performance dimensions. When the endogenous weight method is used, the performance ranking of countries is altered such that countries with greater diversity improve their relative performance while the relative performance of countries having less diversity may either rise or fall.

The weighting method discussed in this paper: is applicable at any level of analysis (e.g. nations, companies, business units, etc.), obviates objections about the “importance” of alternative primitive dimensions that can arise when subjective fixed weights are used; and indicates more accurately relative performance since each unit of analysis is first allowed to obtain its best performance before relative performance is assessed. The method can therefore assist policy makers, companies, etc. to more accurately benchmark performance and it can, in particular, assist companies to respond to perceptions of low performance or compliance among different performance dimensions when performance has been determined using the traditional method of fixed and uniform weights.

The benefits of experiential exercises for making conceptual material more dynamic and relevant, thus enhancing students' learning and developing their skills, are well documented. Presented here is an easy‐to‐administer roleplay that enables students to integrate a wide range of concepts covered in a typical organizational behavior course. Participants assume the roles of members of a food services department attending their weekly staff meeting. At the meeting, the new department manager announces that the previous manager has just resigned Each roleplayer has a different perspective on the problem‐riddled department, and none has a complete set of relevant information. Because the roleplayers have engaging issues, students participate actively, practicing managerial behaviors as they experience various organizational phenomena. An assessment of the exercise indicates its usefulness for developing students' skills, imparting an appreciation for the realities of organizational life, and provoking introspection and self‐learning.

The aim of this study is to investigate the effects of soft and hard quality management (QM) practices on innovation performance, considering innovation practices as a contextual variable mediating this relationship.

Using data from 132 Brazilian manufacturing companies, partial least square–structural equation modeling (PLS–SEM) is employed to test if soft and hard QM practices, directly, affect innovation practices and, indirectly, innovation performance. This investigation also aims to identify whether the relationships are maintained regardless of the size of the company.

The results suggest that soft QM has a positive effect on hard QM. However, only soft QM, not hard QM, has a significant effect on innovation practices. Additionally, soft QM has a significant positive effect on innovation performance through innovation practices. Company size does not influence the relationships.

The findings can help managers to adjust their managerial practices to enhance the effective impact of QM on innovation performance.

The previous literature presents conflicting results on the relationship between QM and innovation performance. Most studies have proposed a direct relationship between both constructs. This study considers innovation practices as a mediator in this relationship. Furthermore, this paper adds to the scarce literature reporting related studies conducted in developing countries.

The purpose of this paper is to investigate if a firm’s organizational culture affects the set of quality techniques it uses, and if these quality techniques affect the relationship between organizational culture and operational performance.

Based on data collected from 250 firms in Brazil and Denmark, structural equation modeling is used to investigate the relationship between organizational culture and the use of quality techniques, and its impact on operational performance. Four quality technique groups, four cultural profiles adopted from the Competing Values Framework and a set of operational performance indicators are used to operationalize the study.

Culture does not appear to be an unequivocal predictor of the use of quality techniques. Furthermore, while most quality technique groups contribute indirectly to the total effect on operational performance in the developmental, group and hierarchical cultures, the performance effects are insignificant for all four groups in the rational culture.

Managers need to be actively aware of the cultural characteristics of their organization before adopting quality techniques, in order to benefit most from the use of these techniques.

Most previous studies address the relationships between culture, quality management and performance at the level of quality practices. This study takes the unitarist-pluralist discussion to the level of quality techniques and extends that discussion to what should be its core, namely, the influence of quality techniques on the performance impact of culture.

This paper examined the effects of corporate governance structures on the incidence of corporate illegality by analyzing the relationship between environmental violations and several dimensions of corporate board structure. Results demonstrated that the value of stock owned by corporate officers and directors was positively and significantly associated with serious environmental violations. Outsider dominance, joint CEO‐Chairpersons, social responsibility committees, and attorneys on boards were not significantly related to corporate illegal behavior. The control variables of size, industry profitability, firm profitability, and industry concentration were all significantly related to environmental violations. The findings involving board structure cast doubt on the efficacy of many popular corporate governance reform proposals.

The purpose of this paper is to investigate the interactional relationships between sustainable human resource management (HRM) and positive organizational outcomes, in the context of the United Arab Emirates (UAE), focusing on employees’ perception and mediation of the direct relationships drawing on the theoretical background of the social exchange theory.

Data were collected using a web-based survey (293 usable responses). Respondents were full-time employees from the UAE’s oil-and-gas sector. The proposed hypotheses were tested using hierarchical regression for direct and indirect relationships. Confirmatory factor analysis was used to confirm the validity of the proposed framework.

Sustainable HRM has a significant direct effect on sustainable employee performance and perceived sustainable organizational support. The mediating influence of organizational knowledge sharing (OKS) and employee empowerment were significant to varying degrees, proving the different interactions between the study constructs.

The mediating effect found for OKS and employee empowerment suggests that organizations should consider multiple combinations of practices to sustain positive outcomes, especially in dynamic markets. The alignment between different managerial practices can enhance anticipated organizational outcomes. Establishing knowledge-sharing practices will, therefore, help in enhancing employee performance, supporting the role of sustainable HRM. Empowering employees will also help in establishing a sense of perceived support that employees will value, leading to positive reciprocity from employees.

This study extends the literature on sustainable HRM and its links to positive organizational outcomes in the context of the UAE. The study also demonstrates that mediators of the direct relationships can have varying effects and associations with different organizational outcomes.