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1 – 10 of 42Frank Lattuch and Enno Ruppert
Mergers & acquisitions (M&As) can be an effective way to expand into new markets or business opportunities. Yet, a considerable number of failed M&As can be attributed to…
Abstract
Purpose
Mergers & acquisitions (M&As) can be an effective way to expand into new markets or business opportunities. Yet, a considerable number of failed M&As can be attributed to disregarded human resource (HR) concerns. In particular, an organization’s leadership tends to hail the advantages of a merger or acquisition during the early stages, raising employees’ expectations (honeymoon effect). Many documented failures in such corporate transactions indicate organizational members’ declining satisfaction following a deal (hangover effect).
Design/methodology/approach
Drawing on in-depth interviews with senior M&A experts (n = 12) at a global big-four accountancy firm and focus group sessions with their respective clients, this study investigates in two cases the interplay between HR issues and M&A transactions and infers effective risk management actions.
Findings
A honeymoon hangover after a transaction may appear in organizations if HR issues are neglected. Study results provide notable implications for HR departments and HR professionals facing a merger or acquisition. These implications include (1) focusing on HR risks, (2) involving HR executives to manage the HR due diligence efforts, (3) setting up transition teams that communicate well, (4) creating policies for learning and knowledge sharing, (5) developing new competencies for the NewCo, (6) being sensitive to cultural differences and (7) considering legal aspects.
Research limitations/implications
The two transactions studied revealed patterns that are important for successful change. However, we should not underestimate the individual perspective in M&As. Further studies with interview data directly from stakeholders are important to analyze further the relationships between HR due diligence, organizational learning, effective knowledge transfer, and culture. Due to our research approach, we cannot claim that the results can be generalizable to all major M&As. Further research is needed to measure the impact of the HR Due Diligence aspects outlined on M&A success.
Originality/value
Although M&As have been much researched, relatively little has been written on practical managerial adaptation from a human resource perspective and its implications for organizational learning. This article helps address this imbalance by providing a people-oriented approach for effectively managing M&As from beginning to integration.
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Bhuminan Piyathasanan, Christine Mathies, Paul G. Patterson and Ko de Ruyter
Crowdsourcing delivers creative ideas for the issuing firm, but participants’ engagement in the creative process also creates additional benefits to firms and participating…
Abstract
Purpose
Crowdsourcing delivers creative ideas for the issuing firm, but participants’ engagement in the creative process also creates additional benefits to firms and participating customers. The purpose of this study is to investigate if these spill-over values endure over time. With data from two time point, i.e. at submission and after announcement of the contest winners, we examine the relationship between the degree of a participant’s creative process engagement (CPE) and value creation from a crowdsourcing contest, and how these perceptions of value change over time.
Design/methodology/approach
Data were collected from 154 participants in a crowdsourcing contest at two time points with an online survey: at submission, and after receiving feedback (in term of rankings, rewards, and comments) from the community. Partial Least Square path modelling was used to estimate both main and moderating effects.
Findings
CPE increases the perceived value of customers (social and epistemic value) and firms alike (knowledge-sharing intention and customer loyalty), though all but epistemic values decrease over time. Disconfirmation of expectations and need for recognition moderate these effects.
Originality/value
This paper is the first longitudinal study that helps understanding the effect of CPE on value creation from crowdsourcing across time. It also uses the theoretical lens of the honeymoon hangover effect to explain how perceived value changes. The resulting insights into the role of customer engagement in crowdsourcing contests and subsequent value creation will be beneficial to the growing research stream on consumer value co-creation and user innovation.
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The purpose of this paper is to posit a curvilinear relationship between organizational tenure and various facets of job performance. So far, theoretical explanations of such…
Abstract
Purpose
The purpose of this paper is to posit a curvilinear relationship between organizational tenure and various facets of job performance. So far, theoretical explanations of such curvilinearity have been inconclusive and ambiguous. The current study draws from literature on organizational commitment to present an additional psychoeconomic explanation for curvilinearity. Further, it brings together job design, job stage, and conservation resource models to investigate moderation effects of motivational job characteristics on the organizational tenure-job performance relationship.
Design/methodology/approach
It is a longitudinal field study at two time periods using a sample of employees (n=679) in 19 job profiles from 13 different public sector organizations.
Findings
The current study found a mediated curvilinear relationship between organizational tenure and job performance from continuance commitment. The data show moderation effects of motivational job characteristics on the mediated curvilinear organizational tenure-job performance relationship.
Originality/value
Prior research based on industrial and business organizations provides substantial evidence to expect a curvilinear relationship between organizational tenure and job performance. That is, after an employee has spent a considerable amount of time in an organization and learned virtually all aspects of the job, further organizational tenure may cease to produce additional job performance improvements. However, scholars predicting curvilinear relationship have focused predominately on empirical verification with inconclusive and ambiguous theoretical explications. Therefore, the aim of the present study is twofold. First, it attempts to describe the ambiguous relationship between organizational tenure and job performance by examining the mechanism behind curvilinearity. Second, it examines motivational job characteristics as possible moderators that may affect the relationship.
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Safiya Mukhtar Alshibani and Thierry Volery
Social support has been identified as a valuable resource that could help entrepreneurs maintain goal directness in their endeavours and increase their life satisfaction. However…
Abstract
Purpose
Social support has been identified as a valuable resource that could help entrepreneurs maintain goal directness in their endeavours and increase their life satisfaction. However, to date, scant research has examined the effect of perceived social support on life satisfaction during the transition from paid employment to self-employment. This paper uses the job demand resource model (JD–R) as a theoretical lens to investigate this relationship.
Design/methodology/approach
Drawing on the household income and labour dynamics in Australia (HILDA) survey, we use latent growth curve modelling (LGCM) to investigate the trajectories of entrepreneurs' perceived social support and life satisfaction (n = 1,303) up to five years after their transition into self-employment.
Findings
Results suggest that entrepreneurs experience a boost in life satisfaction in the transition phase, followed by a declining trend in the years that follow. We find that both the initial perception and the evolution of perceived social support are positively related to life satisfaction over time across gender groups. However, we find that females may benefit more from early social support soon after the transition into self-employment to forestall declines in life satisfaction over the long-term.
Research limitations/implications
The generalisability of the research findings beyond the Australian context is undefined. Future research needs to examine to what extent these results can generalize to other samples within different cultural and institutional frameworks.
Practical implications
Since perceived social support is a strong buffering mechanism that helps mitigate job demands, entrepreneurs need to be proactive in building a strong network. Individuals who switch to self-employment should carefully map and build a strong social network that can help them weather the challenges and setbacks in their new job.
Originality/value
This study extends the JD–R literature by examining the transition into self-employment, considered an “active job” characterised by high demands and high decision latitude. LGCM modelling captures how both initial levels and changes in social support affect life satisfaction during entrepreneurship entry and over time.
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Chatura Ranaweera and Kalyani Menon
The authors aim to study the direct and moderating effects of relationship age, continuance commitment and satisfaction on the generation of positive and negative word of mouth…
Abstract
Purpose
The authors aim to study the direct and moderating effects of relationship age, continuance commitment and satisfaction on the generation of positive and negative word of mouth (P/NWOM).
Design/methodology/approach
Hypotheses based on the notion of liability of adolescence and the motivation to generate P/NWOM were tested with data collected through a survey of a random sample of customers of fixed-line telephone users.
Findings
Relationship age adversely impacts PWOM and the effect of satisfaction on both P/NWOM. Continuance commitment increases NWOM and causes dissatisfied customers to generate greater NWOM while not affecting the PWOM of satisfied customers. Satisfaction shows a significant non-linear effect on WOM.
Research limitations/implications
Future research could conduct longitudinal or experimental work to explicate the causal mechanisms underlying these cross-sectional survey results. Research could also extend these results to a B-B context.
Practical implications
Results offer strong evidence of a dark side to long-term customer relationships. Recommendations focus on managing long-term relationships and perceptions of continuance commitment to minimise adverse effects.
Originality/value
As far as the authors know, this research is the first to offer a theoretically grounded explanation of the direct and moderating effects of relationship age on P/NWOM behaviour. Results challenge the premise of long-term customers being a panacea for numerous problems faced by firms. Findings also help explain the contradictory results in prior research on the effects of continuous commitment on WOM.
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Shi Shu, Ying Wang, Haiying Kang, Chia-Huei Wu and Pia Arenius
While researchers have discussed the association between career change to self-employment and job satisfaction, few have considered how the association is achieved. Therefore, in…
Abstract
Purpose
– While researchers have discussed the association between career change to self-employment and job satisfaction, few have considered how the association is achieved. Therefore, in this study, the authors aim to explain this relationship from the perspective of job quality. The authors build on job design theory to propose and empirically test how fluctuations in job satisfaction as associated with the transition to self-employment can be explained by changes in job quality.
Design/methodology/approach
– The authors tested their propositions using a longitudinal, nationally representative database from Australia for the 2005–2019 period. The final sample included 108,384 observations from 18,755 employees.
Findings
– In line with the literature, the authors found that job incumbents experienced low job satisfaction in the years prior to their career change to self-employment and that their job satisfaction improved after the transition. More importantly, the authors found the same change pattern for job quality – measured as job autonomy and skill variety – and the statistical results demonstrated that job quality was the key determinant of job satisfaction during the process.
Practical implications
– This study advocates the importance of job quality in managing employee wellbeing and facilitating retention.
Originality/value
– The authors contribute to the literature by uncovering how job quality, represented by skill variety and job autonomy, can explain fluctuations in job satisfaction during individuals’ career change from paid employment to self-employment.
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Daejeong Choi, Owwon Park and Sangsuk Oh
Why employees stay or leave their organization in Republic of Korea (South Korea) can be better understood by taking into account the idiosyncratic institutional and cultural…
Abstract
Why employees stay or leave their organization in Republic of Korea (South Korea) can be better understood by taking into account the idiosyncratic institutional and cultural contexts. In this chapter, we aim to provide a comprehensive review of employee turnover research in South Korea and discuss its implications for research. Specifically, we explain how employee turnover decisions may be affected by the characteristics of South Korean labor market (duality, polarization, and intergenerational issues) and cultural environments (collectivism, high power distance, and high-performance orientation). The review shows that organizational commitment, job satisfaction, and on-the-job embeddedness are three key mechanisms explaining employee turnover in South Korea. Building upon the review, we conclude the review by suggesting future research directions: (a) examining turnover behavior as a key outcome, (b) developing a theoretical framework for social identity and embeddedness, and (c) understanding intergenerational issues.
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