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Since the publication of Venkatraman and Grant's (1986) article two decades ago, considerably more attention has been directed at establishing the validity of constructs in the strategy literature. However, recent developments in measurement theory indicate that strategy researchers need to pay additional attention to whether their constructs should be modeled as having formative or reflective indicators. Therefore, the purpose of this chapter is to highlight the differences between formative and reflective indicator measurement models, and discuss the potential role of formative measurement models in strategy research. First, we systematically review the literature on construct measurement model specification. Second, we assess the extent of measurement model misspecification in the recent strategy literature. Our assessment of 257 constructs in the contemporary strategy literature suggests that many important strategy constructs are more appropriately modeled as having formative indicators than as having reflective indicators. Based on this review, we identify some common errors leading to measurement model misspecification in the strategy domain. Finally, we discuss some implications of our analyses for scholars in the strategic management field.

This study examines how budgetary support (BS), teamwork, and organizational commitment to employees (OCE) affect firm performance across two countries, Malaysia and the United States. By surveying senior managers of 165 small and medium enterprises, this study finds that teamwork and BS each has a direct effect on OCE and firm performance. Further, results indicate that OCE mediates the relationship between BS, teamwork, and firm performance. In Malaysia, but not in the United States, we find that teamwork affects performance directly. In the United States, but not in Malaysia, we find that BS affects performance, and there is an interaction effect between BS and management influence. We attribute the effects to the different national cultures and social-exchange relations and highlight the contributions to the budgeting research, organizational commitment literature, and to practice.

Welcome to the third volume of Research Methodology in Strategy and Management. This book series’ mission is to provide a forum for critique, commentary, and discussion about key research methodology issues in the strategic management field. Strategic management relies on an array of complex methods drawn from various allied disciplines to examine how managers attempt to lead their firms toward success. The field is undergoing a rapid transformation in methodological rigor, and researchers face many new challenges about how to conduct their research and in understanding the implications that are associated with their research choices. For example, as the field progresses, what new methodologies might be best suited for testing the developments in thinking and theorizing? Many long-standing issues remain unresolved as well. What methodological challenges persist as we consider those matters? This book series seeks to bridge the gap between what researchers know and what they need to know about methodology. We seek to provide wisdom, insight, and guidance from some of the best methodologists inside and outside the strategic management field.

Using psychological contract theory as its foundation, the purpose of this paper is to examine the important, but under-explored, relationship between careerism and organizational attitudes among workers in India.

In total, 250 middle-level executives, working in six manufacturing plants of motorbike companies located in Northern India, were surveyed.

As hypothesized, careerism was found to be negatively related to affective commitment, organization satisfaction and perceived organizational performance. Contrary to expectations, however, careerism was positively related to continuance and normative commitment.

The study is based on a cross-sectional survey. Also, because the motorbike industry is male dominated, all the executives surveyed are men.

Despite concerns that employees with more transactional relationships with their employers are no longer loyal to their organizations, this study demonstrates that Indian employees with a higher careerism also have higher levels of normative and continuance organizational commitment.

Prior research has produced conflicting results as to whether employees with more careerist, transactional psychological contracts with their employers have more negative organizational attitudes. This study contributes to research on psychological contract theory and careerism in today’s turbulent career landscape while also answering calls to examine the generalizability of western theories of careers in non-western countries.

The purpose of this study is to examine if individual cynicism mediates the relationship between workplace incivility (WI) and knowledge hiding (KH). Additionally, it is examined whether ethical leadership has a moderating role regarding the effect of WI on KH.

The authors conducted two multi-wave studies, each with two times of data collection. Study 1 included data from 390 members of 30 teams from knowledge-intensive organizations. In study 2, data was collected from 437 software professionals working in diverse organizations.

Results showed that cynicism mediated the impact of WI on KH. Furthermore, the positive direct and indirect effect of WI on KH was shown to be moderated by perceived ethical leadership such that high ethical leadership mitigates the effects.

This study extends the research on knowledge management by explaining a new mechanism and framework in which KH can occur and provides important practical recommendations for human resource managers to contribute to the overall organization's success.

The objective of this study is to investigate how country risk, different political actions from the government and bureaucratic behavior influence the activities in industry supply chains (SCs) in emerging markets. The main objective of this study is to investigate the influence of these external stakeholders’ elements to the demand-side and supply-side drivers and barriers for improving competitiveness of Ready-Made Garment (RMG) industry in the way of analyzing supply chain. Considering the phenomenon of recent change in the RMG business environment and the competitiveness issues this study uses the principles of stakeholder and resource dependence theory and aims to find out some factors which influence to make an efficient supply chain for improving competitiveness. The RMG industry of Bangladesh is the case application of this study. Following a positivist paradigm, this study adopts a two phase sequential mixed-method research design consisting of qualitative and quantitative approaches. A tentative research model is developed first based on extensive literature review. Qualitative field study is then carried out to fine tune the initial research model. Findings from the qualitative method are also used to develop measures and instruments for the next phase of quantitative method. A survey is carried out with sample of top and middle level executives of different garment companies of Dhaka city in Bangladesh and the collected quantitative data are analyzed by partial least square-based structural equation modeling. The findings support eight hypotheses. From the analysis the external stakeholders’ elements like bureaucratic behavior and country risk have significant influence to the barriers. From the internal stakeholders’ point of view the manufacturers’ and buyers’ drivers have significant influence on the competitiveness. Therefore, stakeholders need to take proper action to reduce the barriers and increase the drivers, as the drivers have positive influence to improve competitiveness.

This study has both theoretical and practical contributions. This study represents an important contribution to the theory by integrating two theoretical perceptions to identify factors of the RMG industry’s SC that affect the competitiveness of the RMG industry. This research study contributes to the understanding of both external and internal stakeholders of national and international perspectives in the RMG (textile and clothing) business. It combines the insights of stakeholder and resource dependence theories along with the concept of the SC in improving effectiveness. In a practical sense, this study certainly contributes to the Bangladeshi RMG industry. In accordance with the desire of the RMG manufacturers, the research has shown that some influential constructs of the RMG industry’s SC affect the competitiveness of the RMG industry. The outcome of the study is useful for various stakeholders of the Bangladeshi RMG industry sector ranging from the government to various private organizations. The applications of this study are extendable through further adaptation in other industries and various geographic contexts.

The goal of this paper is to validate the second-order model for the economic welfare scale in the context of violence. This study also aims to assess the relationship between the dimensions of the economic welfare scale’ declining food consumption and loss of income and the overall latent construct and assess the second-order model’s goodness of fit using appropriate fit indices.

The study is cross-sectional with a sample of 600 households from the violent zone, Northwest Nigeria. The data collected was used for confirmatory factor analysis, second-order model evaluation and model fit evaluation.

The second-order model for the economic welfare scale is valid and reliable; the dimensions significantly affect the formation of the overall construct. The model’s goodness of fit fulfilled the relevant fit indices.

The study offers researchers and policymakers practical insights into how each dimension influences the latent operational construct. It, therefore, encompasses replication in all the remaining modules.

The findings offer practical insight to policymakers in designing policies for promoting long-term peace structures and developing mechanisms to assist those who have suffered the greatest economic welfare losses due to violence in Nigeria.

The findings form an essential tool to assess the economic welfare effect in violently affected territories at the micro-level.

The outcomes are ground-breaking by validating the second-order model for the economic welfare scale. And established dimension influences over the overall latent variable.

Interest in servant leadership has grown exponentially over the past decade as evident in the surge of academic- and practitioner-oriented publications on the subject. While prior research has shown that servant leadership leads to citizenship behavior, no study has explored the ethical pathway as the underlying influence process despite the fact that servant leadership is an ethical approach to leadership. On the basis of social learning theory, the purpose of this paper is to examine psychological ethical climate as a key mediator between servant leadership and citizenship behavior.

Survey data were collected from 123 leader–follower dyads from eight high-performing firms listed on the Indonesian Stock Exchange, and analyzed using multiple regression analysis.

The results showed that the relationship between servant leadership and organizational citizenship behaviors (OCBs) (both for OCBI and OCBO) is mediated by psychological ethical climate.

This study demonstrates the value of using a servant leadership approach in order to foster a psychological ethical climate and increase OCBs. As such, the authors highlight the importance of a systematic approach to develop servant leaders in organizations.

This research contributes to the understanding of the ethical mechanism that explains the relationship between servant leadership and follower outcomes. Drawing on social learning theory, the findings show that servant leaders are ethical climate architects through their role modeling behaviors and interactions with followers.