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Status demotion in hierarchical loyalty programs (HLPs) has received considerable academic attention. However, existing research is relatively silent on whether HLP status demotion fosters service relationship fading by influencing demoted customers’ psychological disengagement and the likelihood of patronage reduction. Drawing on the relationship fading literature and the stimulus–organism–response framework, this study aims to examine these effects. It further investigates the moderating role of psychological ownership on the links of status demotion with psychological disengagement and the likelihood of patronage reduction.

Two studies (Studies 1 and 2) were conducted in the context of airline HLPs. Study 1 was a structured survey conducted among 213 demoted airline HLP customers in Australia, and Study 2 was an experiment conducted among 178 executive MBA students in Bangladesh. The PROCESS macro was used to test the moderated mediation model.

The results of both studies show that HLP status demotion significantly influences customers’ psychological disengagement and the likelihood of patronage reduction. The findings also reveal that psychological disengagement mediates the relationship between status demotion and the likelihood of patronage reduction. Further, customers with high (low) psychological ownership feel high (less) psychological disengagement and show high (less) likelihood of patronage reduction due to their HLP status demotion.

This study extends the existing literature on relationship marketing and HLPs by offering a better understanding of how and under what conditions status demotion elicits customers’ psychological disengagement and the likelihood of patronage reduction.

Status demotion in hierarchical loyalty programs (HLPs) has received considerable academic attention. However, little is known about whether status demotion engenders two widely recognised behavioural intentions: revenge and avoidance. This study aims to make up this gap by examining the effects of status demotion on customers’ revenge and avoidance intentions. The underlying mechanism and boundary conditions of these effects are also explored.

Two studies were conducted to test the hypotheses. Study 1 was conducted using a structured survey from 347 active HLP members/customers of Chinese airlines. Study 2 used an online experiment amongst 268 active HLP airline customers in Australia. Partial least squares-based structural equation modelling and Hayes’ (2013) PROCESS macro were used for data analysis.

The results of Study 1 show that status demotion increases customers’ revenge and avoidance intentions simultaneously. Meanwhile, these effects are more significant for demoted customers with an external locus of causality than those with an internal locus of causality and demoted customers with higher entitlement tend to possess more revenge intentions than avoidance intentions. Study 2 further identified perceived inequity as a mechanism, which links status demotion to revenge and avoidance intentions of demoted customers.

This study examines demoted customers’ revenge and avoidance intentions amongst Chinese and Australian airline travellers. Future research may focus on actual behaviour and test the current study’s model in cross-cultural and cross-industry settings.

Managers should deal with demotion decisions carefully as the failure to manage outraged customers may weaken customer-company relationships.

This study extends the existing literature on relationship marketing and HLPs by offering a better understanding of how and under what conditions status demotion elicits customers’ intentions for revenge and avoidance.

Research on corporate social responsibility (CSR) continues to proliferate, but why and how multinational enterprises (MNEs) from different parts of the world engage in CSR is still unclear. The purpose of this study was to investigate whether there are differences in behavior based on the status of the MNE’s home country relative to the host country.

Applying a social dominance theory (SDT) framework, the authors explain variations in MNE behavior because of perceived hierarchical differences between a MNE’s home country and that of the host country. It is posited that these hierarchical differences trigger a country-of-origin bias that affects stakeholders’ expectations for the MNE, as well as that firm’s response to those expectations. In this integrative conceptual paper, we propose a testable framework derived from a deductive approach that applies the tenets of SDT to predict outcomes of CSR implementation by MNE’s subsidiaries.

MNEs from less developed countries are subject to lower expectations and engage in self-debilitating behavior, which may hinder their attempts to implement CSR initiatives in more developed countries. Paradoxically, engaging in CSR initiatives could help reduce liability of foreignness and increase chances for competitive advantage.

MNEs from developing countries should be aware of a potential country-of-origin bias affecting decisions on CSR implementation and that could also be detrimental to their competitive advantage when operating in more developed countries. Conversely, MNEs from developed countries should be ready for higher expectations of their CSR initiatives in less developed countries.

This paper strives to contribute to two extant literatures. First, it contributes to the social dominance literature by applying the perspective in the international business context, specifically research on MNE liability of origin. Second, this perspective offers testable propositions on how perceived hierarchies and liability of origin affect firm decision-making, specifically in the context of developing country MNEs. Third, this paper seeks to expand the discussion of MNE subsidiary CSR behavior to account for the relative context of the home and host country.

This research paper gives an account of a study into the relationship between leadership and integrity. There is a critical analysis of the current literature for effective, successful and ethical leadership particularly, integrity. The purpose and aim of this paper is to build on the current notions of leadership within the literature, debate contemporary approaches, focussing specifically on practices within the UK National Health Service in the early 21st century. This leads to a discussion of the literature on ethical leadership theory, which includes public service values, ethical relationships and leading with integrity. A small study was undertaken consisting of 18 interviews with leaders and managers within a District General Hospital. Using the Repertory Grid technique and analysis 15 themes emerged from the constructs elicited, which were compared to the literature for leadership and integrity and other studies. As well as finding areas of overlap, a number of additional constructs were elicited which suggested that effective leadership correlates with integrity and the presence of integrity will improve organisational effectiveness. The study identified that perceptions of leadership character and behaviour are used to judge the effectiveness and integrity of a leader. However, the ethical implications and consequences of leaders' scope of power and influence such as policy and strategy are somewhat neglected and lacking in debate. The findings suggest that leaders are not judged according to the ethical nature of decision making, and leading and managing complex change but that the importance of integrity and ethical leadership correlated with higher levels of hierarchical status and that it is assumed by virtue of status and success that leaders lead with integrity. Finally, the findings of this study seem to suggest that nurse leadership capability is developing as a consequence of recent national investment.

Why be bothered with trainers' careers — especially now when training departments are under stress and may have been severely truncated? “What career?” many trainers remark, “we are lucky if we continue to exist as a department.” As I will try and point out, these present problems are not unrelated to a long‐term neglect of trainers' career development.

Based on extant literature on empowerment and team management, this paper aims to examine the effect of power distance and collectivism on the relationship between empowerment and team performance through the mechanisms of knowledge sharing and intra-group conflict.

This paper conceptualizes a model depicting the relationship between team empowerment and team performance across cultures.

The authors argue that team empowerment can increase both knowledge sharing and intra-group conflict in working teams. Knowledge sharing facilitates team performance, while intra-group conflict impairs team performance in the long run. Team empowerment yields different team performance across cultures due to the respective moderating effects of power distance and collectivism.

This paper explicates the moderating roles of power distance and collectivism on the relationship between empowerment, knowledge sharing, intra-group conflict and team performance. The authors suggest that the effectiveness of team empowerment is contingent on the cultural context that the team operates in.

While research on the influence of ethical and unethical behaviour on employee well-being abound, we still know little of how well-being is shaped under the dual positive and negative behavioural influences in the workplace. To address this limitation, this paper aims to investigate the relative effects of ethical behaviour of leadership and unethical bullying behaviour on employee well-being through the application of the conservation of resources theory.

This study was conducted in the context of Pakistan by seeking views of 330 employees in academic work settings.

The data analysis revealed that occurrence of unethical behaviour plays a more potent role than ethical behaviour in shaping employee well-being. These findings lend support to the conservation of resources theoretical perspective by reiterating the salience of resource loss over resource gain in shaping employee well-being.

This study offers a new insight into the management literature by highlighting that combating workplace bullying not only conserves employee well-being, but also allows organisations to capitalise more fully on the positive process enabled by leadership.

The purpose of this paper is to examine the indigenous Chinese concept of suzhi (素质) with the aim of furthering the development of Chinese human resource management (HRM) research and practice.

An extensive review of the literature on suzhi, published in the West, as well as in China, is the basis for proffering an organizational-level conceptualization of suzhi in the Chinese context.

Instead of understanding it as a free-floating signifier, we argue that suzhi can be considered as a criterion-based framework for HRM research and practice. Suzhi research is classified into two major sources – indigenous Chinese and indigenized Western constructs. We further make a distinction between intrinsic and extrinsic suzhi, and analyze a popular set of suzhi criteria, considering de (morality) and cai (talent), while focusing on de in HRM selection (德才兼备, 以德为先). As multilevel and multidimensional framework, suzhi criteria may form different gestalts in different organizations and industries.

From a social cultural and historical perspective, HRM research that incorporates a combination of indigenous and indigenized suzhi characteristics may receive better acceptance by individuals, organizations and the society in the Chinese context. Accordingly, the reconstruction of suzhi into manageable and measurable dimensions can be undertaken for more effective HRM practice in the Chinese context.

The HRM literature is advanced by linking the indigenous suzhi discourse to Chinese indigenous HRM research and practice.

Purpose – To develop a new model of restorative reparation that attempts to capture the dynamic role of shared identity perceptions.

Design/methodology/approach – Drawing on recent advances in restorative justice theory (Wenzel, Okimoto, Feather, & Platow, 2008), we explore the theoretical proposition that a greater understanding of the identity relations between victims, offenders, and the groups in which they are embedded is key to understanding a victim's underlying motives toward justice, and thus, predicting when victims will react favorably to restorative justice processes and prefer them over traditional retributive justice interventions.

Findings – We argue that a perceived shared identity between the victim and the offender determines the extent to which the victim understands the transgression as requiring a revalidation of the rules, values, or morals undermined by the offense. Moreover, we propose that these identity relations are dynamic in that they both affect and are affected by the experience of injustice. Thus, identity is also shaped by the transgression itself through, inter alia, processes associated with positive social identity maintenance. Importantly, these shifts in identity determine how injustice victims are likely to respond to constructive approaches to conflict resolution such as restorative justice.

Originality/value – We offer a series of testable hypotheses aimed at engendering future research in the domain of constructive justice restoration in groups. Moreover, this work suggests that to develop effective resolution strategies, we must consider how an injustice event shapes the relations between the affected parties over time rather than simply assuming identity relations are static.

The present paper intends to study the relationship between Machiavellianism and effectiveness. It investigates the parallel mediating effects of self-esteem and ethical leadership on Machiavellianism and leader effectiveness.

The study was administered to 260 managers from the banking sector. Statistical tools, like descriptive statistics, Pearson product moment correlation, reliability analysis, validity analysis and parallel-mediated regression analysis, were used to analyze the data. Drawing from the conservation of resource (COR) theory, a parallel mediation model was empirically tested.

The study found a negative association between Machiavellianism and leader effectiveness, and the parallel mediating impact of self-esteem and ethical leadership reduced the impact of Machiavellianism on leader effectiveness.

The work suggests that the banking sector leaders can adapt ethical behaviors to create positive leader–member relations contributing to increased organizational efficiency and productivity.

The unique contribution of the study includes determining the mediating roles of self-esteem and ethical leadership, especially in the Indian context. Despite the availability of past studies on the constructs, the studies on the parallel mediating relationship between Machiavellianism and effectiveness was limited.