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This chapter presents a theory for developing an adaptive high commitment, high performance system of organizing, managing, and leading. It is a synthesis of my 50 years of action and field research presented in my books and articles. It operationalized and makes actionable the ideas of Lewin and systems theorists. Its features are three organizational outcomes that must be achieved simultaneously, features of the system that must be targeted for change, six silent barriers to change, a governance system for continuous learning, change in large complex systems, and elements of a system that needed to immunize it against ultimate destruction.

In this chapter, we argue that despite the fact that empirical research on trait neuroticism has shown fairly weak relations between the broad neuroticism trait and overall job performance, organizational research can benefit by increased attention to the neuroticism construct. This is because the influence of neuroticism on work behavior can be best understood by separating the more general neuroticism domain into its lower level facets. We discuss various conceptualizations of neuroticism and then review existing research on the relation between the facets of neuroticism and job performance. Next, we turn our attention to a theoretical framework that suggests that the relations between neuroticism facets and job performance outcomes are explained by the social, cognitive, and behavioral effects of having varying levels of neuroticism-based traits. In so doing, we not only focus on mediated relationships between facets of neuroticism and job performance dimensions but also recognize some important moderators, as well as some expected direct relations between the facets and job performance. Finally, we discuss implications for further conceptual development, offer some suggestions for testing the propositions, and discuss potential practical implications of finding support for this model.

In this paper, we review the literature on pay variation (e.g., pay dispersion, pay compression, pay range) in organizations. Pay variation research has increased markedly in the past two decades and much progress has been made in terms of understanding its consequences for individual, team, and organizational outcomes. Our review of this research exposes several levels-related assumptions that have limited theoretical and empirical progress. We isolate the issues that deserve attention, develop an illustrative multilevel model, and offer a number of testable propositions to guide future research on pay structures.

Firm’s operating contexts and asymmetric perspectives of success versus failure outcomes are two essential features typically absent in research on firms’ implemented strategies. The study here describes and provides examples of formal case-based models (i.e., constructing algorithms) of firms implemented strategies within several of 81 potential context (task environments) configurations – large vs small, service vs production orientation, low vs high competitive intensity, low vs high technological turbulence, and ambiguous settings for each. The study applies the tenets of complexity theory (e.g., equifinality, causal asymmetry, and single causal insufficiency). The study proposes a meso-theory and empirical testing position for solving “the crucial problem in strategic management” (Powell, Lovallo, & Fox, 2011, p. 1370) – firm heterogeneity – why firms adopt different strategies and structures, why heterogeneity persists, and why competitors perform differently. A workable solution is to identify/describe implemented executive capability strategies that identify firms in alternative specific task environments which are consistently accurate in predicting success (or failure) of all firms for specific implemented capabilities/context configuration. The study shows how researchers can perform “statistical sameness testing” and avoid the telling weaknesses and “corrupt practices” of symmetric tests such as multiple regression analysis (Hubbard, 2015) including null hypothesis significance testing. The study includes testing the research issues using survey responses of 405 CEO and chief marketing officers in 405 Hungarian firms. The study describes algorithms indicating success cases (firms) as well as failure cases via deductive, inductive, and abductive fuzzy-set logic of capabilities in context solutions.

In this chapter, I develop a theoretical framework to address the financial–social performance debate in strategy research, drawing on literatures on institutional logics and organizational forms.

I test the theoretical framework using an exploratory empirical approach based on ideal types with global microfinance data. A joint consideration of financial and social performances of microfinance organizations (MFOs) helps classify them into four ideal types – self-sustainable, mission-drifting, failing, and subsidized. I examine how an MFO’s organizational form and the configurations of institutional logics of the nation within which it is embedded jointly explain which ideal type the MFO falls into.

Based on a study of 1455 MFOs in 98 countries between 1995 and 2007, I show that the interactions between national institutional logics and organizational forms add significant predicting power in estimating MFOs’ ideal types. Explaining the intricate relationships between the financial and social performance of MFOs thus requires a simultaneous consideration of both the configuration of national logics and organizational forms.

The theoretical framework introduced in this chapter builds on recent developments in the institutional logics perspective and research on organizational forms, extending our understanding of the financial–social performance relationship among organizations. It also advances the social entrepreneurship literature by focusing our attention on various institutions at both national and organizational levels that may facilitate or inhibit social venture efficacy.

This chapter describes and tests the principles of configural theory in the context of hospitality frontline service employees’ happiness-at-work and managers’ assessments of these employees’ quality of work performances. The study proposes and tests empirically a configural asymmetric theory of the antecedents to hospitality employee happiness-at-work and managers’ assessments of employees’ quality of work performance. The findings confirm and go beyond prior statistical findings of small-to-medium effect sizes of happiness-performance relationships. The method includes matching cases of data from surveys of employees (n = 247) and surveys completed by their managers (n = 43) and uses qualitative comparative analysis via the software program fsQCA.com. The findings support the four principles of configural analysis and theory construction: recognize equifinality of different solutions for the same outcome; test for asymmetric solutions; test for causal asymmetric outcomes for very high versus very low happiness and work performance; and embrace complexity. The theory and findings confirm that configural theory and research resolves perplexing happiness–performance conundrums. The study provides algorithms involving employees’ demographic characteristics and their assessments of work facet-specifics which are useful for explaining very high happiness-at-work and high quality-of-work performance (as assessed by managers) – as well as algorithms explaining very low happiness and very low quality-of-work performance.

Purpose – Accounting research has long shown the effect of subjectivity in performance evaluation. This study investigates one form of subjectivity in performance evaluation: flexibility in weighting performance measures examining decisions made by supervisors about weighting. Empirical studies show that the performance-measure weights are only partially consistent with the predictions of the agency theory and they are a still outstanding issue.

Methodology/approach – We develop an experiment to analyse supervisor decision-making, manipulating two factors: internal organisational interdependence and the level of managerial performance. We derive hypotheses along with both economic and behavioural approaches. The economic approach is based on agency theory predictions and the controllability principle while the behavioural approach is drawn on the organisational justice theory. We argue that in low interdependence contexts the supervisor's decision confirms the agency theory predictions, while in high interdependence conditions weighting decisions could be driven by behavioural considerations of fairness perceptions of the evaluation process and the level of managerial performance.

Findings – We find that in low interdependence contexts the supervisor's decision confirms the agency theory predictions, while in high interdependence contexts it does not. The results indicate that the supervisor's decision stems from the integration of economic and behavioural perspectives.

Research and social implications – The theoretical framework can be useful for interpreting the supervisor decision-making and the weighting process.

Originality – The economic and behavioural approaches allow us to understand flexibility in weighting performance measures suggesting that, in addition to economic considerations, a behavioural perspective may also be relevant in explaining subjective weighting.

To empirically test for an impact on profit performance when activity-based costing (ABC) is used in companies with customer service and low-price strategies. We also investigate whether the profit impact of ABC usage is affected by higher-quality information systems.

Survey.

We find a positive impact on profit performance when ABC is used by companies with customer service as a strategic priority but not when ABC is used by companies with lower emphasis on customer service. For companies emphasizing low-price strategies, we find a positive impact on profit performance, especially when ABC is used together with high-quality information systems.

This study develops a method of measuring strategic priorities of a firm. It divides firms into strategy groups based on their degree of emphasis on three strategic priorities: low price, flexibility, and customer service.

Identifies certain contexts when ABC is especially beneficial.

If the use of ABC information leads to better strategic and operational decisions, firm performance should improve. However, prior research on the impact of ABC on firm performance has found little to no connection and usually only when it is used with other practices. This is the first study to find an impact on profit performance for firms with customer service and low-price strategies and high-quality information systems.

This paper examines three issues. First, do multiple possible paths to high versus low new product performance (NPP) occur among European, high-tech, industrial manufacturing firms? Second, what are the upstream influences on high NPP? For example, what background factors affect the levels of the KSFs? Third, do consistent country-level differences occur among Austrian, German, and Swedish executives in their evaluations of antecedents and high-tech NPP? To probe these issues, a total of 771 chief operating officers and project managers participated in face-to-face long interviews (McCracken, 1988) covering 241 less and 264 more successful than average industrial NPD projects. The empirical findings support the propositions that: (1) multiple paths lead to high versus low NPP; (2) unique antecedent variables affect the KSFs for high NPP; and (3) for several upstream and direct influences, consistent national differences occur among executives’ assessments of NPP. A key implication of the study for NPD executives is to recognize the possibility of alternative paths leading to successful NPD.