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1 – 10 of over 257000Lan Guo, Bernard Wong-On-Wing and Gladie Lui
We examine how input- (vs. output-) based performance evaluation and incentive intensity impact employees’ autonomous motivation, thereby influence their proactive work behaviors.
Abstract
Purpose
We examine how input- (vs. output-) based performance evaluation and incentive intensity impact employees’ autonomous motivation, thereby influence their proactive work behaviors.
Methodology
We collected survey responses from 309 employees of different firms. Multi-group Structural Equation Modeling analyses were used to analyze the data.
Findings
Input-based evaluation had a positive effect on autonomous motivation and proactive work behaviors when task uncertainty was high, but a negative effect when it was low. Autonomous motivation had a positive effect on proactive work behaviors.
Research implications
Our results on the moderating effect of task uncertainty provide insights into inconsistencies in earlier studies. Moreover, applying self-determination theory of motivation to incentive research can provide some insights into why sometimes, incentives can negatively affect performance.
Practical implications
The study of proactive work behaviors is important because despite their necessity in the fast-changing business environment, they are relatively unexplored in the incentive literature. Proactivity is especially important for tasks that are high in uncertainty because the exact tasks to achieve those goals are hard to specify.
Originality/value of paper
We investigate the effect of performance management system on proactive work behaviors, mediated by autonomous motivation and moderated by task uncertainty.
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As family and nonfamily businesses differ in how they do business, the focus of this manuscript is on understanding how strategy-level models can be misinterpreted if family…
Abstract
Purpose
As family and nonfamily businesses differ in how they do business, the focus of this manuscript is on understanding how strategy-level models can be misinterpreted if family involvement is not considered. Thus, in this manuscript, the focus is on understanding the extent to which strategic orientations (market orientation and technology orientation, which reflect strategic approach), strategic performance metric focus (financial-based, optimization-based and market-based, which reflect strategy evaluations) and strategic audacity (which reflects boldness in envisioning and delivering strategic outcomes) play a role in driving firm performance – in family businesses vs nonfamily businesses. Understanding how these drivers impact performance differently in family vs nonfamily businesses enables companies to better direct their strategic efforts.
Design/methodology/approach
After presenting theoretical concepts, authors use regression analysis on a sample of companies in a developing European Union (EU) country (n = 282) to evaluate the impact of strategic orientation, strategic performance metric focus and strategic audacity on firm performance separately in three samples: the full sample (consisting of both family and nonfamily-owned firms), sample of family businesses and the sample of nonfamily businesses.
Findings
The role of strategic orientation, strategic audacity and focal goals in driving firm performance differs depending on the company type (family vs nonfamily). In the case of nonfamily businesses, strategic audacity and technology orientation with the focus on efficiencies and markets are driving firm performance. In the case of family businesses, both market and technology orientation are important drivers of performance; the focus on financial and market indicators of performance is positively impacting performance, while the focus on efficiency indicators is diminishing the performance of family businesses. Thus, results show that of the performance drivers for family businesses, some are insignificant (strategic audacity), while some even have a negative impact (focus on optimization-based measures of performance) on family businesses' performance. Moreover, results show that some of the drivers of performance in case of family businesses (market orientation and focus on financial-based measures of performance) are not drivers of outstanding performance in the case of nonfamily businesses.
Practical implications
Best practices differ for family vs nonfamily businesses. In case of family businesses, comparing them to nonfamily businesses, market orientation and the focus on financial-based measures of performance have a greater impact on firm performance, while, at the same time, family businesses should refrain focusing on pursuing optimization-based measures of performance as such pursuit drives down their performance. Understanding the drivers of performance specific to family businesses will enable such firms to better navigate contexts characterized by ambiguity and uncertainty.
Originality/value
The manuscript evaluates how models, generally researched in the overall firm metrics, differ between family businesses and nonfamily businesses, thus delivering new insights into the important marketing concepts.
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Vincent K. Chong and Maggie B.C. Law
This study aims to examine the role of trust-in-supervisor and organizational commitment on the relationship between a budget-based incentive compensation scheme and job…
Abstract
Purpose
This study aims to examine the role of trust-in-supervisor and organizational commitment on the relationship between a budget-based incentive compensation scheme and job performance.
Design/methodology/approach
A survey was conducted involving 120 managers from Australian manufacturing firms listed in the Who’s Who in Business in Australia electronic database. A partial least squares approach was used to assess the psychometric properties of the theoretical model and proposed hypotheses. Data analysis was conducted using WarpPLS Version 5.0.
Findings
The results suggest that the reliance on a high budget-based incentive compensation scheme was found to lead to higher trust-in supervisor, which in turn resulted in higher organizational commitment and improved subordinate job performance.
Research limitations/implications
This study is subject to the limitations of survey-based research.
Practical implications
This study may assist top management to better understand the importance of designing an effective budget-based incentive compensation scheme to promote high interpersonal trust and organizational commitment among subordinates. Cultivating a climate of trust may help to enhance interpersonal trust between subordinates and their superior, which in turn may lead to higher levels of organizational commitment and improvement in subordinate job performance.
Originality/value
This paper elucidates and contributes to the existing literature by suggesting that a budget-based incentive compensation scheme can directly affect subordinates’ level of trust in their supervisor, and that trust-in-supervisor can serve as an antecedent to the development and cultivation of subordinates’ commitment to the organization, which in turn improves their job performance.
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Jingfeng Yuan, Xuewei Li, Yongjian Ke, Wei Xu, Zhao Xu and M. Skibnewski
Effective performance management (PM) in public–private partnership (PPP) projects is critical to realizing value for money (VFM). This study aims to provide an in-depth…
Abstract
Purpose
Effective performance management (PM) in public–private partnership (PPP) projects is critical to realizing value for money (VFM). This study aims to provide an in-depth understanding of problems existing in PPP PM and possible avenues for improvement, presenting an experimental system to verify that building information modeling (BIM) and other information communication technologies can improve PPP PM.
Design/methodology/approach
The mixed research method adopted in this study combined empirical research with experimental research. Semistructured interviews were used to ascertain the current situation of PPP PM with the help of Nvivo software. A BIM-based performance management system (BPMS), which combines BIM with Web and Cloud technology, was then constructed to achieve performance monitoring, performance measurement, and performance-based payment. Finally, a case study was introduced to explain the function application of the proposed system.
Findings
The case demonstration verified is found to verify that the developed BIM-based execution framework for PPP PM can effectively guide stakeholders toward achieving mixed PM, promote effective PM, and improve work efficiency with the support of BIM and other information and communication technologies.
Originality/value
Through the development of a BPMS for PPP projects, the effectiveness and efficiency of PM are improved. Practical PM applications are also provided to different stakeholders, through which the key performance indicators and the behaviors of the government and private-sector partners can be monitored to form a more comprehensive and reasonable PM mechanism and promote the realization of VFM in PPP projects.
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Serdar S. Durmusoglu and Roger J. Calantone
The purpose of this study is to conduct a meta-analytic review based on a theoretical framework developed for investigating new product development (NPD) teams in the first two…
Abstract
Purpose
The purpose of this study is to conduct a meta-analytic review based on a theoretical framework developed for investigating new product development (NPD) teams in the first two decades of the research stream.
Design/methodology/approach
This study contributes to literature by investigating the presence of publication bias and synthesizing correlation effect sizes of 27 factors influencing three NPD team performance dimensions: overall, market-based (e.g. sales, profitability), process-based (e.g. budget adherence, schedule adherence) outcomes. Further, this study presents a path analytical model that uses the aggregate study effects to identify significant drivers of NPD team performance.
Findings
First, examination of extant literature shows no publication bias. Next, analyses show that three internal team dynamic variables have the most significant positive effect on overall NPD team performance: team member job satisfaction, cross-functional integration and superordinate identity. For market-based performance, three goal-related contextual factors exert the most positive influence, namely, goal stability, goal clarity and goal support, in respective order. Further, for process-based performance, cross-functional integration’s strong positive effect is followed by team and goal stability. Moreover, physical distance, interpersonal and task conflict have significant negative effects on NPD team performance. Finally, both market- and process-based NPD team performance are significantly influenced by NPD team’s cohesion, which acts a mediator between two contextual factors: physical distance and team tenure.
Research limitations/implications
This meta-analysis contributes to literature by providing a comprehensive model of NPD team performance predictors, their definitions, along with their corresponding effects in predicting performance. While team cohesion is found to be a strong predictor of both market- and process-based performance, future research can examine if too much cohesion has a detrimental effect, especially on market-based performance.
Practical implications
The results assist managers in shifting their priorities to ensure optimal support of NPD teams. For example, team leadership competence externally has a larger effect on overall performance compared to team leadership for internal team dynamics. Hence, team leaders should make sure that they manage the team’s relationships with external parties (e.g. other functional units) with more caution.
Originality/value
This study provides a guiding framework for analyzing NPD team performance as well as identifies and then addresses many knowledge gaps on NPD team performance.
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Abouzar Zangoueinezhad and Asghar Moshabaki
The application of fuzzy multiple attribute decision making (FMADM) approach in evaluation of organizations has grown recently, and it is combined with knowledge‐based university…
Abstract
Purpose
The application of fuzzy multiple attribute decision making (FMADM) approach in evaluation of organizations has grown recently, and it is combined with knowledge‐based university evaluation parameters in this study. The paper seeks to propose a FMADM approach for measuring university performance on the four knowledge‐based perspectives of a balanced scorecard.
Design/methodology/approach
The approach first summarizes the evaluation indexes extracted from the university performance literature. Then, the relative weights of the chosen evaluation indexes are calculated using the fuzzy analytic hierarchy process (FAHP). The fuzzy sets theory was adapted to university performance analysis.
Findings
The results reveal the critical aspects of the evaluation criteria as well as the gaps to improve university performance in order to achieve the aspired/desired level.
Research limitations/implications
The paper reveals the key issues in the existing performance evaluation method, especially in the university context.
Practical implications
This research analyses the performance of a university based on the knowledge‐based indexes in the four BSC perspectives, using a FME‐MADM approach. It considers specific knowledge‐based metrics for each perspective.
Originality/value
Although implementation of the performance measures in universities are now widespread, there is no considerable literature that sufficiently addresses the various issues faced by organizations during university implementation. The paper proposes application of the balanced knowledge‐based scorecard to universities aiming at evaluating performance annually.
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Harish Kumar Singla and Anand Prakash
The purpose of the study is to examine the value-based performance of firms in construction sector in India using Tobin's Q and Market Capitalization (MCAP) and then determine…
Abstract
Purpose
The purpose of the study is to examine the value-based performance of firms in construction sector in India using Tobin's Q and Market Capitalization (MCAP) and then determine their significant financial drivers.
Design/methodology/approach
The study is based on data from 87 firms engaged in infrastructure, real estate, industrial construction and allied areas in India over a study period of 10 years. Three distinct forms of panel regression models have been developed using Tobin's Q and MCAP as dependent variables. The models developed are using Baltagi's (1981) Error Component 2SLS, Varadharajan-Krishnakumar's (1987) Generalized 2SLS and Arellano – Bower/Blundell – Bond's (1991) dynamic panel.
Findings
The study found that MCAP is a better suited value-based performance measure for construction sector firms in India. The study further reports that the age of the firm, profit after tax, investment in research and development, dividends, leverage and net fixed asset are significant positive drivers, whereas cash flow is a significant negative driver.
Research limitations/implications
The study is limited to a geographic location; therefore, the findings of this study cannot be generalized.
Practical implications
As MCAP is a better suited value-based performance measure of a firm in the construction sector, managers should focus on improving profitability, higher research and development activities, higher dividends and higher expenditures on net fixed assets for improvement.
Originality/value
This is an original attempt to examine the value-based performance of firms in the construction sector in India using Tobin's Q and MCAP.
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The purpose of this study is twofold: to analyze sales managers’ person-focused and process-focused supervisory feedback as a potential goal-orientation antecedent, and to examine…
Abstract
Purpose
The purpose of this study is twofold: to analyze sales managers’ person-focused and process-focused supervisory feedback as a potential goal-orientation antecedent, and to examine the relationship between different types of sales personnel goal orientations and two aspects of job performance: behavior-based and outcome-based. Based on previous sales motivation research, the authors look at the antecedents and outcomes of sales representatives’ goal orientation.
Design/methodology/approach
A cross-sectional survey design was used with a sample consisting of 326 pairs of sales reps and their supervisors. Average sales position tenure was 5.30 years.
Findings
Sales representatives’ performance-prove goal orientation (PPGO) can be triggered by positive person-focused feedback from their managers, and performance-avoid goal orientation (PAGO) can be triggered by negative person-focused feedback. A learning goal orientation (LGO) can be triggered by positive process-focused feedback. The authors also found that when job performance is broken down into outcome-based and behavior-based components, the process by which goal orientation influences performance is more easily determined. PPGO sales reps in the sample clearly focused more on outcome-based performance, while PAGO sales reps focused on behavior-based performance. LGO was only associated with behavior-based performance among the respondents, meaning that it cannot be used as a predictor of outcome-based performance.
Research limitations/implications
First, a cross-sectional design may not be the best method for judging variable directions of causality. A longitudinal method is recommended for more detailed research. Second, the variance the authors noted in the three goal orientations may be due to impression management. Previous researchers have not addressed response bias regarding goal orientation; future researchers may want to add social desire response items to control for response bias from impression management.
Practical implications
The findings can help sales managers understand how their feedback styles can result in different types of goal orientation and different effort allocation in their sales staff. Managers interested in developing PPGO sales reps should offer more whole-person praise. Since negative person-focused feedback can trigger more conservative behaviors, they should use other approaches to criticizing their employees. If their goal is to promote individual learning in sales personnel, they will want to give process-focused feedback, either positive or negative.
Originality/value
This study contributes to the literature on the external influences of goal orientation, especially the effects of social (rather than institutional) factors in manager feedback on goal orientations among their sales staffs. To the authors’ knowledge, this is the first attempt to study relationships between three types of goal orientations and various performance dimensions. The data clarify the links between two types of performance (outcome- and behavior-based) and three types of goal orientations (PPGO, PAGO and LGO).
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This study sheds light on the relation between intellectual capital and firm performance. The study argues that traditional performance measurement based on accounting is still…
Abstract
Purpose
This study sheds light on the relation between intellectual capital and firm performance. The study argues that traditional performance measurement based on accounting is still able to explore the relation between intellectual capital and performance.
Design/methodology/approach
The study was conducted at 198 firms from two Gulf Cooperation Council countries: Kingdom of Saudi Arabia and Kingdom of Bahrain for the period 2014–2016. To measure intellectual capital, the value added intellectual coefficient model was adopted along with two measures of performance: accounting-based performance which is return on assets and market-based performance which is Tobin’s Q, in addition to the Random-Effects Regression.
Findings
Study findings came up with evidences that support the relationship between intellectual capital and accounting-based performance, but negates any relation between intellectual capital and market-based performance. The findings also revealed different results, between Saudi Arabia’s and those of Bahrain.
Originality/value
The study contributes to the debate on the validity of relating intellectual capital to the traditional accounting-based performance.
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Sateesh V. Shet, S.V. Patil and Meena R. Chandawarkar
The purpose of this paper is to explore the relationship between competency-based performance management and organizational effectiveness (OE). It signifies the importance of…
Abstract
Purpose
The purpose of this paper is to explore the relationship between competency-based performance management and organizational effectiveness (OE). It signifies the importance of developing competency-based performance concept in organizations. Since conventional performance management systems (PMSs) are diminishing and as organizations are looking for breakthrough PMSs, this research attempted to fill the gap from stakeholder’s perspective – employee, manager and organization in devising new approach in PMS.
Design/methodology/approach
The research design involved developing scale for “competency-based superior performance” and validating scale for “organizational effectiveness,” The data for this survey are collected from 292 respondents through structured questionnaire. Hypotheses depicting aforementioned relationships were empirically tested in the context of competency-based performance practices in organizations based in India. Structural equation modeling (SEM) technique was used for data analysis.
Findings
The empirical results provide methods to accelerate the performance management initiatives based on a leadership competency model (LCM), which are necessary for building performance culture in the organization. The paper contributes by developing a new scale for measuring competency-based performance practices. The scale for OE is revisited. A positive relationship between competency-based superior performance and OE with productivity, adaptability and flexibility has been empirically confirmed using SEM.
Research limitations/implications
The paper limits the performance measurement concept using leadership competencies.
Practical implications
The developed model will act as a building block for performance measurement in organizations. This paper promotes LCM to be applied in creating a performance-based culture.
Originality/value
This is a unique attempt to test the relationship between competency-based performance management and OE.
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