Search results

The widespread adoption of the Balanced Scorecard has led to a need to understand how performance measures affect employees’ attitudes and behaviors. Despite the growing trend in the implementation of the Balanced Scorecard, there is little research evidence available on the behavioral outcomes resulting from the use of nonfinancial performance measures. This study seeks to address this gap by examining several behavioral outcomes, including job satisfaction, organizational commitment and managerial performance, resulting from the use of financial and nonfinancial performance measures.

Data were collected using a mailed questionnaire survey to manufacturing organizations in Singapore. Path analysis technique was employed in this study to investigate the relationships.

The results of the study show that behavioral outcomes are indifferent regardless of the nature and type of performance measures used. However, the relationships between performance measures and behavioral outcomes are indirect through procedural fairness and trust in supervisor.

Survey questionnaire method was used in this study and there are limitations associated with survey questionnaire method. As our sample was selected from large organizations, it is unclear if our results are generalizable to small organizations. Also, as our sample was selected from the manufacturing sector, generalizing our results to the nonmanufacturing sectors should be made with caution.

This study highlights the need for organizations to pay attention to issues pertaining to procedural fairness and interpersonal trust in the design and implementation of performance measurement systems.

This paper aims to investigate spillover effects of public capital stock in a production function model that accounts for spatial dependencies. In many settings, ignoring spatial dependency yields inefficient, biased and inconsistent estimates in cross country panels. Although there are a number of studies aiming to estimate the output elasticity of public capital stock, many of those fail to reach a consensus on refining the elasticity estimates. We argue that accounting for spillover effects of the public capital stock on the production efficiency and incorporating spatial dependences are crucial. For this purpose, we employ a spatial autoregressive stochastic frontier model based on a number of specifications of the spatial dependency structure. Using the data of 21 OECD countries from 1960 to 2001, we estimate a spatial autoregressive stochastic frontier model and derive the mean indirect marginal effects of public capital stock, which are interpreted as spillover effects. We found that spillover effects can be an important factor explaining variations in technical inefficiency across countries as well as in explaining the discrepancies among various levels of output elasticity of public capital stock in traditional production function approaches.

In the present paper we explore the long-term influence of childhood neglect on violent behavior in the transition to adulthood. In particular, we test whether neglect is spuriously related to violence due to their common association with academic achievement, physical abuse, and general offending. We then ask whether neglect has an indirect effect on violence through its impact on parental attachment, alcohol use, emotional negativity, academic achievement, or staying in school.

We use two waves of data from the National Longitudinal Survey of Adolescent Health (Add Health) and employ both regression models and INDIRECT, a syntax file that allows for the testing of indirect effects using SPSS (Preacher & Hayes, 2008).

We find that the long-term association between childhood neglect and violence in the transition to adulthood is robust in models controlling for GPA, physical abuse, and other forms of offending. Neglect did not have an indirect effect on violence through attachment, negative emotionality, or academic achievement but did have indirect effects on violence through its association with staying in school and with alcohol use.

This set of analyses was exploratory in nature. Further research on neglect should be undertaken, using finely tuned measures and research questions. In addition, our findings imply that the association between neglect and later violent behavior may be intertwined with certain dynamics of physical abuse and alcohol use, which should be further studied.

This chapter utilizes German tax data to present evidence about the direct and indirect effects of new firm formation. Cohort analysis is applied to investigate survival, sales, inputs, and value added of start-up firms. Most dropouts occur in the early years. We show that start-up microenterprises increase economic vitality directly. Sales and value added are in an approximate proportion of 3:1. With respect to the indirect effects of new firms, we find that one Euro of sales induces considerable indirect effects because 66 Cents are used to buy products and services from incumbents. For this reason, new firms substantially promote economic prosperity of incumbents. Sectoral differences are also indicated, with the manufacturing industry generating highest sales and relying most heavily on inputs in the early periods.

Last decades scholars in the field of human resource management (HRM) have intensely examined the contribution of HRM to organizational performance. Despite their efforts, at least one major research shortcoming can be identified. In general, they have devoted far too little attention to an aspect of HRM potentially beneficial for organizational performance: worker participation, and especially its indirect or representative forms. In contrast, for academics embedded in the industrial relations tradition, worker participation is a prominent theme, even though less emphasized in its relationship with company objectives. One might defend traditional scholars' reservations by arguing that participations main goal concerns workplace democratization and not organizational prosperity. However, several writers state that industrial democracy involving worker participation can channel conflicts of interest between employees and employers and stimulate desired employee attitudes and behavior, consequently enhancing organizational performance (e.g., Gollan, 2006; Ramsay, 1991; Taras & Kaufman, 1999). And, indeed, several studies have shown positive effects of both direct participation (e.g., European Foundation for the Improvement of Living and Working Conditions, 1997) and indirect participation (e.g., Addison et al., 2000, 2003; Frick & Möller, 2003) on organizational performance.

Nevertheless, to date, the absence of an integrated model explaining the connection between worker participation and organizational performance leads to the following question that still is in need of an answer: how do direct and indirect forms of participation – separate as well as in combination – affect organizational performance? This chapter aims to contribute to the filling of the aforementioned knowledge gaps. In so doing, we focus on direct and indirect, nonunion participation on the firm level, using a Western European and especially Dutch frame of reference.

Justice rules are standards that serve as criteria for formulating fairness judgments. Though justice rules play a role in the organizational justice literature, they have seldom been the subject of analysis in their own right. To address this limitation, we first consider three meta-theoretical dualities that are highlighted by justice rules – the distinction between justice versus fairness, indirect versus direct measurement, and normative versus descriptive paradigms. Second, we review existing justice rules and organize them into four types of justice: distributive (e.g., equity, equality), procedural (e.g., voice, consistent treatment), interpersonal (e.g., politeness, respectfulness), and informational (e.g., candor, timeliness). We also emphasize emergent rules that have not received sufficient research attention. Third, we consider various computation models purporting to explain how justice rules are assessed and aggregated to form fairness judgments. Fourth and last, we conclude by reviewing research that enriches our understanding of justice rules by showing how they are cognitively processed. We observe that there are a number of influences on fairness judgments, and situations exist in which individuals do not systematically consider justice rules.

We are interested in modeling the impact of spatial and interindustry dependence on firm-level innovation of Chinese firms The existence of network ties between cities imply that changes taking place in one city could influence innovation by firms in nearby cities (local spatial spillovers), or set in motion a series of spatial diffusion and feedback impacts across multiple cities (global spatial spillovers). We use the term local spatial spillovers to reflect a scenario where only immediately neighboring cities are impacted, whereas the term global spatial spillovers represent a situation where impacts fall on neighboring cities, as well as higher order neighbors (neighbors to the neighboring cities, neighbors to the neighbors of the neighbors, and so on). Global spatial spillovers also involve feedback impacts from neighboring cities, and imply the existence of a wider diffusion of impacts over space (higher order neighbors).

Similarly, the existence of national interindustry input-output ties implies that changes occurring in one industry could influence innovation by firms operating in directly related industries (local interindustry spillovers), or set in motion a series of in interindustry diffusion and feedback impacts across multiple industries (global interindustry spillovers).

Typical linear models of firm-level innovation based on knowledge production functions would rely on city- and industry-specific fixed effects to allow for differences in the level of innovation by firms located in different cities and operating in different industries. This approach however ignores the fact that, spatial dependence between cities and interindustry dependence arising from input-output relationships, may imply interaction, not simply heterogeneity across cities and industries.

We construct a Bayesian hierarchical model that allows for both city- and industry-level interaction (global spillovers) and subsumes other innovation scenarios such as: (1) heterogeneity that implies level differences (fixed effects) and (2) contextual effects that imply local spillovers as special cases.

Research on how performance measurement systems affect employees’ perceptions of workplace fairness is important. As organizations often rely on their performance measurement systems to communicate information to their employees, it is useful to ascertain if and how the developments of performance measurement systems that are far more comprehensive than traditional financial systems affect employees’ perceptions of informational fairness through the information communicated to employees. Informational fairness refers to employees’ perceptions of workplace fairness that is based on the amount and the truthfulness of information that organizations provide to their employees. Based on a sample of managers from manufacturing organizations, the Partial Least Square results indicate that comprehensive performance measurement systems (comprehensive PMS) have a significant direct effect on job-relevant information. They also indicate that comprehensive PMS have an indirect effect on informational fairness via job-relevant information. In contrast, systems that are based on financial measures have no significant effects on job-relevant information and informational fairness. These results demonstrate how comprehensive PMS (through the communication of a greater amount of job-relevant information) can be used to engender employees’ perceptions of high workplace fairness.

This chapter presents a mediation model that aims to disentangle the indirect from the direct effects of retirement on health, considering the mediating role of lifestyles. The model is applied to the risk of depression, and physical inactivity is assumed to potentially mediate the effect of retirement. The results indicate that there is a significant indirect effect via the mediator, albeit relatively small in comparison to the direct effect. The analysis highlights the importance of further exploring the influence of lifestyle factors in the relationship between retirement and health, in order to gain a better understanding of the potential pathways through which retirement impacts health.