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This paper aims to explore why private equity (PE) cares about corporate social responsibility (CSR) of its investees given their relatively short investment time-horizon and how it designs corporate governance (CG) bundle to achieve both financial and CSR goals of the private firms it invests in.

Case study design is applied to get deeper insights on the why and how questions posed. Analysis is based on triangulation of secondary data and in-depth interviews with both PE and their investee firms.

The authors find that long-term sustainability supported by CSR increases firm value. They also outline specific CG bundle that the PE uses to achieve both its financial and CSR goals. CG mechanisms appeared to reflect agency theory, but even more resource dependence theory.

The outlined CG bundle could be used as a template for all types of private firm owners to improve both financial and CSR performance of the firm.

The paper adds to fragmented area of CG and CSR interface. The authors specifically focus on several under-researched contexts of this interface: private small and medium size firms (SMEs), emerging markets and PE investors.

Understanding the relationship between performance and trust in virtual teams is receiving significant attention due to “connected” virtual team contexts becoming more prevalent. This paper reports on new findings relating to the dynamics of trust and performance in virtual team contexts. The study aims to explore the evolution of trust and its mediating role in determining the performance of virtual teams, as well as to investigate if and how performance itself affected trust.

The study is based on a longitudinal quantitative survey of 71 international virtual student teams working in four universities in Finland, Estonia, Latvia and Russia.

In line with swift trust and social norms theory, the authors found that relatively high levels of initial trust did not change over the period of the teams’ projects in general, but in teams where feedback on performance was negative, both trust and trustworthiness declined significantly. Trust had a small mediating effect between group performances in two consecutive measurement points, meaning that past performance had an impact on trust, which in turn impacted the teams’ next performance. However, no mediating effect was present between individual and team performance.

The authors conclude that managing virtual teams should concentrate on team actions and achieving and recognising small quick wins at least as much as dealing with trust, specifically. Negative performance feedback should not deteriorate members’ perception of benevolence and integrity in the team.

The paper distinguishes the dynamics of two trust components and tests new models with these as partial mediators in determining virtual team performance. Importantly, the authors challenge the notion that emotional component of trust, perceived trustworthiness, is less relevant in virtual teams.

The purpose of this paper is to analyse generational differences with regard to honest behaviour and honesty as a personal value in post-Soviet business environment: in Estonia and Latvia.

In total, 781 service employees from six retail organizations in Estonia and Latvia were surveyed to assess likelihood of dishonest behaviour and to rank their values according to the Rokeach instrumental value scale.

Older generations report higher likelihood of honest behaviour than younger generations. Post-war and early generation X, born between 1945 and 1970, also rate honesty and responsibility higher as their individual values.

The complexity of generational differences in ethical behaviour and honesty as a personal value has not been widely researched in post-Soviet business environment.

The relationship between organisational innovativeness (OI) and company performance has been studied extensively, and the associations found have mostly been positive. However, as OI is a multidimensional concept, more nuanced research is needed to identify which dimensions of innovativeness companies should focus on. The purpose of this paper is to longitudinally investigate the links between dimensions of OI and company financial performance, based on a sample of Finnish and Estonian pharmaceutical biotechnology companies.

Interviews inquiring about OI were conducted in 26 biotechnology companies and then their performance was measured over three subsequent years using objective financial data. Due to limited sample size, qualitative comparative analysis is employed in addition to non-parametric statistical tests.

Overall, OI did not decisively influence financial performance in the studied sector. There were, however, dimensions related to human resource policies that appeared to have more potential to positively impact financial performance, whereas the strategic dimension was actually aversive to certain performance indicators.

The study limitations are a small sample, possible managerial bias in the assessment of OI, and focus on financial measures only.

The study demonstrates that OI is a multidimensional construct and not all dimensions play an equal role in financial performance. Innovation-supportive human resource policies and strategic flexibility contributes to financial performance in the pharmaceutical biotechnology sector.

The contribution of the study is the analysis of a specific sector with a longitudinal approach by bridging quantitative and qualitative approach.

Employee dishonesty is problematic for businesses in general, particularly for retailers. The purpose of this paper is to empirically analyse selected factors associated with the perceived likelihood of dishonest behaviour among retail employees. Specifically, the role of three negative work outcomes – insufficient pay, boredom, and perceived injustice – is investigated, as well as the effect of individual values and espoused organisational values.

The sample consisted of 784 retail employees from six retail organisations located in Estonia and Latvia. A survey questionnaire that used manipulated scenarios of work outcomes and organisational values was administered.

The study concludes that perceived injustice produces more dishonesty than other negative work outcomes (insufficient pay and boredom), whereas boredom was a surprisingly strong trigger for the perceived likelihood of dishonest behaviour. Individual ethical values determined the perceived likelihood of dishonest behaviour as hypothesised while sensation-seeking values did not. Espoused organisational values had no significant effect on the perceived likelihood of dishonest behaviour.

The results imply that the breach of distributional and procedural justice simultaneously associates most with employee dishonesty, and retail employee selection is the key to curbing dishonest behaviour in the workplace.

The paper makes a contribution to behavioural ethics literature by studying dishonest employee behaviour in the post-communist context while addressing various forms of dishonest behaviour, in addition to stealing. Also, the effect of espoused organisational values has been scarcely studied before.

The study's objective is to estimate the association of specific perceived employer-provided benefits on employees' intention to leave in different age cohorts during coronavirus disease 2019 (COVID-19). Informed by the psychological theories of ageing, the authors propose three age-cohort-specific hypotheses in three motivational domains: security and health benefits, flexible work arrangement and education-related benefits.

The authors use a large survey of employees in Estonia (n = 7,209) conducted in 2020 and test the association of specific benefits and their interactions with age on employees' intention to leave.

The results show that older cohorts are generally less prone to leave their jobs. Benefits that employers could use during the COVID-19 crisis generally had negative associations with the intention to leave, but age-specific differences were negligible; only the perceived provision of flexible work arrangements reduced the younger cohort's intention to leave relatively more.

This study is one of the few that allows us to make inferences regarding the benefits preferences amongst the working population during an unprecedented health crisis.

This study aims to answer two research questions: first, to what extent can workplace bullying be explained by ageism? And second, does the likelihood of workplace bullying increase when age interacts with gender and ethnic minority?

The authors report results from a survey carried out in 11 organizations in Estonia (N = 1,614) using the Negative Acts Questionnaire-Revised (Einarsen et al., 2009).

The results show that ageism does not explain bullying in Estonia. As in some earlier studies, older age correlates negatively with negative acts, and women report less work-related bullying than men. These findings were unexpected because Estonia's post-socialist background and the highest gender wage gap in Europe suggested otherwise. However, there is gendered ageism in work-related bullying such that older women report more negative acts in their workplace. Respondents from ethnic minority groups do not experience more bullying in general, nor in combination with age. Surprisingly, managers reported both person- and work-related bullying more than employees with no subordinates.

The study contributes to intersectionality literature with a view to workplace bullying in post-socialist study context.

Recent economic recession has highlighted the role of labour market flexibility as a key factor of competitiveness of a country. Despite the fact that labour mobility can essentially be seen as part of labour market flexibility, there is notable research gap concerning spatial mobility and other facets of labour market flexibility. The purpose of this special issue is to fill these gaps.

The papers in the special issue represent various quantitative methods and databases, whereas mainly micro data (workplace, labour force or immigrant surveys, job search portal, etc.) is used. However, the type of labour market flexibility addressed is both micro- and macro-level.

It is demonstrated that labour occupational mobility is determined by the business cycle, numerical flexibility, occupational categories, and sector. Spatial mobility may have counterintuitive effects on individual occupational mobility depending on gender and it is related to various flexibilities in the workplace. It is also suggested that different types of flexibilities on a firm level are interdependent of each other.

The special issue adds to the labour market related knowledge by integrating labour market flexibility and mobility. Individually, both phenomena have been studied before, but not much research is devoted to their inter-linkages. The special issue also contributes by examining labour market flexibility and spatial mobility in the context of different countries, economic cycles, and institutional settings.

Purpose — This chapter is aimed at testing the strength of three different drivers to engage in dishonest behavior at work — financial gain, response to injustice, and escape from boredom — and shedding light to the power of individual and organizational values to hold down the effect of these drivers.Design/methodology/approach — We analyze the data of 167 service employees from a large retail organization, who responded to questionnaires which manipulated drivers and organizational values.Findings — As a result we find that the financial and injustice drivers are effectively triggering several dishonest behaviors, whereas — contrary to the expectations — boredom at work does not threaten employers with employee engagement in dishonest behavior. We do find weak moderating effect of individual values in reacting to the drivers for some forms of dishonest behaviors, but the role of organizational values was marginal.Originality/value — In this chapter dishonest behavior is divided into nine specific dishonest acts involving management and customers as the stakeholders whose interests are at stake. We attempt to associate these behaviors with particular drivers. We also look at the moderators in this process: individual and organizational values. To date, espoused values of the organization is an underexplored organizational instrument compared to other situational variables, for instance, the existence of codes of ethics.

The purpose of this paper is to explore how different types of organizational culture (OC) manifest in certain corporate social responsibility (CSR) activities and to uncover how the presence of certain OC types induces changes in CSR caused by drastic shifts in the economic environment.

The analysis relies on a case study and uses qualitative and quantitative data obtained via interviews, employee survey and analysis of documents. The paper focuses on Ecoprint Ltd, a small printing house in Estonia, and analyzes its reactions to the economic downturn in 2008 and 2009 in terms of CSR. The authors then analyze the concurrence of these changes with its OC, based on a survey that relies on the Competing Values Framework.

The dominant type of OC in the organization did not predict all its CSR practices, but described rather well how adaptation in the sphere of CSR took place as a result of economic downturn. The case demonstrated that CSR activities that relate to dominant OC types are less likely to be reduced in a recession; moreover, some were even intensified. On the other hand, there were certain CSR activities that reflected less prevalent types of OC, nevertheless these were not withdrawn either.

The method used, single case study, serves as an exploratory study. The relationship between unchanged CSR activities related to less dominant OC types is not easy to interpret and needs further investigation.

There is abundant literature referring to a connection between OC and CSR, but related empirical research is hard to find. The current paper empirically explores the relationship between these concepts under the extraordinary economic situation that existed in Estonia in 2008‐2009.