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1 – 10 of over 2000There is growing scholarly interest in the use of penalty in employment contracts which reduce employees' pay if the employee's performance does not meet a pre-specified…
Abstract
Purpose
There is growing scholarly interest in the use of penalty in employment contracts which reduce employees' pay if the employee's performance does not meet a pre-specified performance threshold. Prior accounting research has focused exclusively on the effect of penalty on employee performance. In this study, the authors extend earlier research by examining how penalty affects the employers' wage offers. Prior research suggests that employers' generous wage offers in employment contracts are normally translated as trust by employees who in turn reciprocate with higher effort. The authors present a theory that predicts penalty reduces employers' wage offers. Then, the authors propose unrestricted communication between employers and employees as a potential moderator for the negative effect of penalty on trust and reciprocity.
Design/methodology/approach
The authors implement a controlled lab experiment with a 2 × 3 experimental design (Penalty: Present and Absent; and Communication: None, One-Way and Two-Way).
Findings
The authors develop their predictions by utilizing insights from motivational-crowding and organizational communication theories. The authors hypothesize and find evidence that employers' ability to penalize employees can reduce employers' motivation to offer generous wages. As a result, reduced trust demotivates employees to provide high effort. However, the authors find that a two-way communication moderates the negative effect of penalties by restoring trust, thereby, increasing reciprocity. Finally, the authors find evidence that relationship-oriented messages explain the moderating effect of communication.
Research limitations/implications
This study is subject to limitations inherent in all experimental studies. The decisions in the study experiment are less complex than those found in practice. Moreover, there are significantly higher costs and potential benefits to shirk on effort in practice. The authors encourage future research on other organizational features that would influence the generalizability of their theory and results. Nonetheless, this study makes an important contribution to the literature on trust, reciprocity, gift-exchange contracts, managerial controls and communication.
Practical implications
This paper has several important implications for theory and practice. The authors show that the presence of penalty may not automatically result in increasing employees' effort level, contrary to traditional economic theory predictions. This effect is driven mainly by the crowding out effect of a penalty on employers' desire to signal trust. Therefore, the presence of an open communication channel may become an important tool to reverse the psychological effect of reduced trust when penalty is present. Therefore, the study's findings contribute to the trust–reciprocity literature on how management control system influences employers' and employees' behavior. These findings are especially germane given the trend in the workplace toward establishing open communication at different levels within the firm hierarchy. The study also contributes to the literature on trust–reciprocity as critical informal controls and social norms in accounting practices (Bicchieri, 2006; Stevens, 2019), shedding light on how firms may influence employees' reciprocity in management control practices and induce them to act in line with the firm's objectives by opening communication channels.
Originality/value
Prior accounting research document that penalty in employment contracts increases employee performance due to loss aversion. The study, however, demonstrates that the positive effect of penalty is not sustained in a gift-exchange contract. Specifically, the study's experimental results provide evidence that the availability of penalties can psychologically change the way employers perceive their decisions on offering generous wages (i.e. trust) and consequently reduce employees' reciprocation of high effort levels. Yet, the authors propose a two-way communication as a restorative mechanism for the lost trust. Implications for theory and practice are discussed.
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Suk Chong Tong and Fanny Fong Yee Chan
With the growing popularity of digital engagement, this study explores the interrelationships among digital engagement, interactivity and engagement strategies from the…
Abstract
Purpose
With the growing popularity of digital engagement, this study explores the interrelationships among digital engagement, interactivity and engagement strategies from the perspective of practitioners.
Design/methodology/approach
Individual in-depth interviews were conducted with 27 practitioners who have been involved in marketing communication activities in Hong Kong.
Findings
It was found that practitioners interpreted digital engagement mainly from the cognitive and behavioral dimensions and organizations engaged with their target audiences with either transactional or transitional communications. Functional interactivity and medium interactivity were perceived as the basis of digital engagement.
Originality/value
This qualitative analysis enriches the extant literature in marketing and public relations by delineating the relationships between interactivity and the use of different levels of digital engagement strategies, as well as guiding practitioners in setting effective digital engagement strategies.
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Dragana Bikovska and Chern Li Liew
This research examines the ways in which museums have utilised their Facebook platforms to communicate about climate and environmental-related challenges. The aim is to offer a…
Abstract
Purpose
This research examines the ways in which museums have utilised their Facebook platforms to communicate about climate and environmental-related challenges. The aim is to offer a snapshot of the phenomenon of museums as contributors to communicating climate-related topics and climate change education.
Design/methodology/approach
A content analysis of a purposeful sample of 10 museums’ Facebook postings was conducted. The study examines the themes and topics concerning climate issues that museums have posted and communicated about, the nature of the communication and an examination of responses from the audience.
Findings
This research reveals that not all museums in the study sample have communicated the different research-informed causes or contributors to climate challenges confronting societies today. There is also very little evidence of dialogic engagement with audience and the public-at-large. Most communication is still one-way focussing on the relaying of information.
Originality/value
This research highlights the roles of cultural heritage institutions such as museums in communicating climate change-related topics and the need to move towards a more dialogic mode of engagement with their audience. Museums have a role in serving as a trusted and inspirational space for public debates and community empowerment for dealing with climate challenges.
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Jelena Mušanović, Jelena Dorčić and Maja Gregorić
The purpose of this study is to examine how hotel brands communicate on social media before and during the pandemic coronavirus disease 2019 (COVID-19) in relation to the tourism…
Abstract
Purpose
The purpose of this study is to examine how hotel brands communicate on social media before and during the pandemic coronavirus disease 2019 (COVID-19) in relation to the tourism season.
Design/methodology/approach
To gain insights into the communication of Italian hotel brands on social media, this study applies a qualitative methodology. Using the text mining technique, topic modelling was conducted on a sample of 5,032 posts from Italian 5-star hotel brands shared on the hotels' official Facebook pages.
Findings
The results show that hotel brands used essentially the same communication strategy in the tourism seasons before and after the pandemic outbreak, but with a particular focus on trust, safety and cordiality during the pandemic. Hotel brands focussed intensively on brand awareness, customer engagement and special activities that promote memorable and authentic experiences as well as luxury service quality.
Originality/value
This study contributes to the theoretical and empirical sense by bridging the concepts of tourism and hospitality, social media and corporate communication.
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Angie Lee and Te-Lin Doreen Chung
Retailers recently have started communicating their corporate social responsibility (CSR) commitments to their consumers directly on social media. That is to say, CSR…
Abstract
Purpose
Retailers recently have started communicating their corporate social responsibility (CSR) commitments to their consumers directly on social media. That is to say, CSR communication has expanded to social media that allow two-way communication, distinct from traditional CSR communication channels. As transparency has been recognised as a crucial factor influencing the effectiveness of traditional CSR communication, this study investigated its role in the social media context.
Design/methodology/approach
A two-level, single-factor (i.e. transparency of a mock retail company's CSR communication) between-subjects experimental design was employed, and 237 responses from an online survey were used for PROCESS macroanalysis.
Findings
Transparent CSR communication was found to increase the consumers' perceived CSR credibility and attitude toward the company, which influenced consumers' subsequent purchase intention (functionalistic outcome) and intention to respond to the CSR communication (constitutive outcome). The results of the study also corroborated that consumers' level of elaboration when processing CSR communication on social media depends upon their level of concern over the social issue.
Originality/value
The study extends the elaboration likelihood model (ELM) to CSR communication in the social media context by validating that consumers' level of information elaboration is determined by their level of concern over the social issue. In addition, it provides the first empirical support for the significance of transparent CSR communication on social media and explains the mechanism of transparency's influence. Transparency indirectly affects consumers' behavioural intentions by forming a favourable attitude toward a retailer. The findings can help retail practitioners communicate CSR commitments persuasively on social media. The study also integrates functionalistic and constitutive perspectives of social media CSR communication, which is notable and discussed in depth.
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Although employees are considered key stakeholders, they receive limited attention in the corporate social responsibility (CSR) literature compared to other stakeholders such as…
Abstract
Purpose
Although employees are considered key stakeholders, they receive limited attention in the corporate social responsibility (CSR) literature compared to other stakeholders such as customers. This study aims to address this gap, investigating how different factors, including CSR communication, may affect employee perceptions, and to what extent they can influence or be influenced by CSR activity.
Design/methodology/approach
Semi-structured interviews were used to collect data from three multinationals (MNCs) operating in Bangladesh. Mid- and entry-level employees from different departments, namely, marketing, logistics, human resources, IT and finance, were approached for data collection. It is important to note that all the study participants were Bangladeshi.
Findings
This study demonstrates how CSR perceptions, shaped by the level of employee awareness, personal beliefs about CSR and perceived motivation for adopting CSR, strengthen psychological ties between employees and their organisation. One-way CSR communication adopted by these MNCs disseminates positive information about an organisation’s contribution to society and creates an aspirational and ideational image, which enhances identification, evokes positive in-group biases and encourages employees to defend their organisation against criticism. This study further demonstrates that employee CSR engagement can galvanise their experience of organisational identity, enhance their pride and reinforce their organisational identification.
Originality/value
Drawing on social identity theory and the CSR communication model proposed by Morsing and Schultz (2006), this study aims to understand employees’ CSR perceptions and the possible impact of this on their behaviour. Previous studies largely focus on customers’ perceptions of these activities, which means the link between CSR perception and employee behaviour remains unclear. The current study suggests that employees working in Bangladesh will not withdraw support from their organisations if CSR is used to build reputation or public image. The findings extend the literature by arguing that some employees in developing countries not only seek to improve their status by working in a reputed organisation but also tend to engage with CSR activities undertaken by their organisation.
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Rudi Palmieri and Andrea Rocci
The article tackles the under-defined notion of communication in strategic communication research and elaborates a taxonomy of semiotic processes, which distinguishes different…
Abstract
Purpose
The article tackles the under-defined notion of communication in strategic communication research and elaborates a taxonomy of semiotic processes, which distinguishes different types of communicative and signalling events. The purpose is to offer an improved analysis of the processes by which meaning emerges from strategic communication situations.
Design/methodology/approach
The proposed taxonomy is based on a conceptual framework combining semiotics, linguistic pragmatics and signalling theory. Several real cases of strategic communication are analysed to exemplify the taxonomy.
Findings
Different sub-types of signalling events are highlighted and explained. The communicative function of performed behaviours (i.e. when actions speak and do it louder than words) depends on how informative and communicative intentions are managed by the message source and inferentially interpreted by different receivers. It is suggested that the ways in which meaning is signalled can be best understood with an argumentative perspective that foregrounds the inferential processes of persuasion, interpretation and decision-making. The limitations of the transmission vs. ritual and the one-way vs. two-way theories of strategic communication are highlighted.
Originality/value
The article discusses strategic communication events with the under-considered perspective of communication theories in the fields of semiotics and pragmatics. Signalling phenomena are interpreted from a communicative viewpoint, emphasising the argumentative dynamics that constitute them.
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Burcu Felekoglu, Serdar S. Durmusoglu, Anja M. Maier and James Moultrie
This study examines how technical drivers as well as social drivers influence organic communication and top management involvement (TMI) in new product development (NPD) projects…
Abstract
Purpose
This study examines how technical drivers as well as social drivers influence organic communication and top management involvement (TMI) in new product development (NPD) projects. Technical drivers are of strategic importance and product innovativeness and social drivers are of intrinsic and extrinsic relevance. Organic communication is defined as continuous, bidirectional and informal communication between top management and the NPD teams. Further, arguing that TMI must be studied as a multifaceted construct, it is conceptualized to occur as guidance, active motivation and providing resources and creating a tolerant climate. Subsequently, the effect of TMI and organic communication on NPD performance is investigated.
Design/methodology/approach
The data set, collected via surveys from top managers and project managers involved in 86 NPD projects in 85 firms, is analyzed using PLS structural equation modeling.
Findings
The authors show that the strategic importance of the project has a positive influence on TMI through active motivation, providing resources and creating a tolerant climate for innovation, but does not have an effect on guidance. Results also show that active motivation and organic communication improve budget and schedule adherence, whereas providing guidance and stimulating a tolerant climate have detrimental effects. In summary, the results show that only active motivation enhances all types of performance while stimulating a tolerant climate appears to have the opposite effect. The results revealed that organic communication between top management and the NPD team has a strong positive effect on all elements of TMI (providing guidance, actively motivating the NPD team, providing resources and creating a tolerant climate). In other words, when top management communicates with the NPD team throughout the project in an informal way and listens to them in addition to engaging in a one-way communication, they are more likely to be seen by the team as being deeply involved in the project.
Practical implications
Executives must walk a managerial tightrope to actively motivate and to assist in providing resources, yet they must not be overbearing with direct guidance and must limit their tolerance for failures.
Originality/value
Involvement of key organizational actors such as top management and the link to project performance has attracted significant attention in research. However, nuanced empirical insights into the dyad of top management and project teams has so far been absent. The study’s findings detail the effect of technical and social drivers of top management involvement in new product development projects. Most notably, (1) the effect of motivation and stimulating a tolerant climate on performance, and (2) the effect of organic communication on top management involvement. Moreover, this study is unique in that it empirically examines TMI from both top management and team perspectives.
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Lin Ma and Asheq Rahman
This paper aims to examine the influence of culture on the adoption and use of social media platforms for corporate disclosures by firms in a cross-country setting.
Abstract
Purpose
This paper aims to examine the influence of culture on the adoption and use of social media platforms for corporate disclosures by firms in a cross-country setting.
Design/methodology/approach
It is contended that social media corporate disclosure (SMCD) is culturally influenced because the primary purpose of social media is to connect people in social settings, and social settings are distinguished by their cultures. Using a sample of 1,420 firms from 36 countries and Hofstede’s cultural dimensions, this study examines the direct effects of culture on SMCD and its moderating effects on the relationship between SMCD and the agency determinants of corporate disclosure.
Findings
It is found that cultural dimensions directly affect the adoption and use of SMCD. Additionally, the agency determinants of disclosure, size, leverage and growth are positively associated with the adoption, and use of SMCD, and these associations are moderated by the cultural dimensions.
Research limitations/implications
The Hofstede cultural dimensions are broad country-level variables based on the culture of the majority in the population. However, larger countries have many cultures. This study does not cover within-country cultural effects on SMCD. It also does not cover firm-level culture and accounting culture because these factors are derived from national culture. This study adds culture as a country-level determinant of why companies adopt and use social media.
Practical implications
The study provides investors and policymakers with an understanding of the nature of SMCD adoption and use in different cultural settings. It also makes managers aware of which cultural settings are more amenable to SMCD.
Social implications
Social media, by design, have social implications. Examining the role of culture in the use of social media provides societal reasons for the use of SMCD by companies.
Originality/value
Since social media are interactive in form rather than simply one-way disclosure devices, this study goes beyond the realm of corporate disclosure into the less researched area of corporate communication via social media.
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Nadine Strauß and Markos Mpadanes
In today's risk society, foundations are essential for sustaining democracies. However, the proof of a value-creating function of foundations is rarely assessed. Therefore, this…
Abstract
Purpose
In today's risk society, foundations are essential for sustaining democracies. However, the proof of a value-creating function of foundations is rarely assessed. Therefore, this study uses sensemaking theory and the communication value framework to explore to what extent a foundation achieved its overall mission in tackling societal challenges as opportunities.
Design/methodology/approach
This study employs a case study approach of a Swiss foundation. Through 20 semi-structured interviews with key stakeholders, insights about the value-creating function of the foundation were gained, showing how strategic communication activities contributed to the foundation's overall mission in various spheres of action.
Findings
The stakeholders overall identified a value-creating function of the foundation. The feedback obtained from the interviews could be structured along the lines of the communication value framework, with minor adjustments, showing that the foundation brought about value through its strategic communication regarding tangible assets (e.g. publicity), intangible assets (e.g. unique reputation), room for maneuver (e.g. renowned network) and opportunities for development (e.g. new formats). However, on each level, value-limiting factors have also been identified (e.g. limited publicity).
Originality/value
This study is the first to employ sensemaking theory to assess a foundation's value-creating function in achieving its overall mission by interviewing direct stakeholders. It is also one of the few studies in the field that analyzes strategic communication of foundations. Thus, this study adds methodological, theoretical and practical knowledge to foundation communication, value-creation and strategic communication management.
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