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Book part
Publication date: 23 August 2017

Solveig Kirstine Bennike Bennedsen and Lærke Lissau Lund-Sørensen

In this chapter, we analyzed the effects of internationalization on innovation, productivity, and firm performance among multinational pharmaceutical companies as representatives…

Abstract

In this chapter, we analyzed the effects of internationalization on innovation, productivity, and firm performance among multinational pharmaceutical companies as representatives of a global knowledge-based industry. The empirical analysis used multiple stepwise regressions based on a sample of 149 firms headquartered in Europe and the US. The results indicate that innovation outcomes are positively correlated to the number of foreign subsidiaries (scope internationalization), whereas surprisingly, formal research and development (R&D) does not seem to directly influence innovation. This suggests that the firms benefit from local overseas subsidiaries to create and implement new innovative offerings. The number of foreign subsidiaries has a U-shaped relationship to patent productivity suggesting that firms can gain advantages by locating cost-intensive activities in low-cost countries and critical tasks in advanced market locations. Firm performance has a U-shaped relationship to sales abroad (scale internationalization) and the relationship is further enhanced by a high focus on R&D. This suggests that sales abroad enable scale economies, where R&D improves quality and relevance of products and thereby boosts performance. Finally, to validate the findings we conducted two semi-structured interviews with representative industry experts and gained further insights for an extended interpretation of results.

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The Responsive Global Organization
Type: Book
ISBN: 978-1-78714-831-4

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Book part
Publication date: 11 September 2012

Erik Poutsma and Geert Braam

This study investigates the relationship between financial participation plans, that is profit sharing, share plans and option plans, and firm financial performance using a…

Abstract

This study investigates the relationship between financial participation plans, that is profit sharing, share plans and option plans, and firm financial performance using a longitudinal panel data set of non-financial listed companies for the period 1992–2009 comprising 2,216 observations. In addition, it makes a distinction between financial participation plans that are narrow based, directed to top management and executives only, and broad based, targeted to all employees. The panel data also allow us to take into account time lag effects, as profit sharing is usually said to have short-term effects while stock options and share plans are more targeted to longer term impact. Our results show that broad-based profit-sharing plans and combinations of broad-based profit sharing and share plans are positively related with many firm financial performance indicators relative to companies without these plans. However, the results consistently show negative associations between both narrow- and broad-based option plans and firm financial performance.

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Advances in the Economic Analysis of Participatory and Labor-Managed Firms
Type: Book
ISBN: 978-1-78190-221-9

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Book part
Publication date: 24 July 2020

Arieh Riskin, Peter Bamberger, Amir Erez and Aya Zeiger

Incivility is widespread in the workplace and has been shown to have significant affective and behavioral consequences. However, the authors still have a limited understanding as…

Abstract

Incivility is widespread in the workplace and has been shown to have significant affective and behavioral consequences. However, the authors still have a limited understanding as to whether, how and when discrete incivility events impact team performance. Adopting a resource depletion perspective and focusing on the cognitive implications of such events, the authors introduce a multi-level model linking the adverse effects of such events on team members’ working memory – the “workbench” of the cognitive system where most planning, analyses, and management of goals occur – to team effectiveness. The model which the authors develop proposes that that uncivil interpersonal behavior in general, and rudeness – a central manifestation of incivility – in particular, may place a significant drain on individuals’ working memory capacity, affecting team effectiveness via its effects on individual performance and coordination-related team emergent states and action-phase processes. In the context of this model, the authors offer an overarching framework for making sense of disparate findings regarding how, why and when incivility affects performance outcomes at multiple levels. More specifically, the authors use this framework to: (a) suggest how individual-level cognitive impairment and weakened coordinative team processes may mediate these incivility-based effects, and (b) explain how event, context, and individual difference factors moderators may attenuate or exacerbate these cognition-mediated effects.

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Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-1-80043-076-1

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Book part
Publication date: 4 October 2022

Tae-Youn Park, Reed Eaglesham, Jason D. Shaw and M. Diane Burton

Incentives are effective at enhancing productivity, but research also suggests that performance incentives can have “unintended negative consequences” including increases in

Abstract

Incentives are effective at enhancing productivity, but research also suggests that performance incentives can have “unintended negative consequences” including increases in hazard/injuries, increases in errors, and reduction in cooperation, prosocial behaviors, and creativity. Relatively overlooked is whether, when, and how incentives can be designed to prevent such negative consequences. The authors review literature in several disciplines (construction, healthcare delivery, economics, psychology, and [some] management) on this issue. This chapter, in toto, sheds a generally positive light and suggests that, beyond productivity, incentives can be used to improve other outcomes such as safety, quality, prosocial behaviors, and creativity, particularly when the incentives are thoughtfully designed. The review concludes with several potential fruitful areas for future research such as investigations of incentive-effect duration.

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Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-1-80455-046-5

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Book part
Publication date: 17 March 2010

Christopher C. Rosen, Chu-Hsiang Chang, Emilija Djurdjevic and Erin Eatough

This chapter provides an updated review of research examining the relationship between occupational stressors and job performance. We begin by presenting an eight-category…

Abstract

This chapter provides an updated review of research examining the relationship between occupational stressors and job performance. We begin by presenting an eight-category taxonomy of workplace stressors and we then review theories that explain the relationships between workplace stressors and job performance. The subsequent literature review is divided into two sections. In the first section, we present a summary of Jex's (1998) review of research on the job stress–job performance relationship. In the second section, we provide an updated review of the literature, which includes studies that have been published since 1998. In this review, we evaluate how well the contemporary research has dealt with weaknesses and limitations previously identified in the literature, we identify and evaluate current trends, and we offer recommendations and directions for future research.

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New Developments in Theoretical and Conceptual Approaches to Job Stress
Type: Book
ISBN: 978-1-84950-713-4

Book part
Publication date: 28 August 2007

Michael C. Sturman

This article reviews the extensive history of dynamic performance research, with the goal of providing a clear picture of where the field has been, where it is now, and where it…

Abstract

This article reviews the extensive history of dynamic performance research, with the goal of providing a clear picture of where the field has been, where it is now, and where it needs to go. Past research has established that job performance does indeed change, but the implications of this dynamism and the predictability of performance trends remain unresolved. Theories are available to help explain dynamic performance, and although far from providing an unambiguous understanding of the phenomenon, they offer direction for future theoretical development. Dynamic performance research does suffer from a number of methodological difficulties, but new techniques have emerged that present even more opportunities to advance knowledge in this area. From this review, I propose research questions to bridge the theoretical and methodological gaps of this area. Answering these questions can advance both research involving job performance prediction and our understanding of the effects of human resource interventions.

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Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-0-7623-1432-4

Abstract

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Traffic Safety and Human Behavior
Type: Book
ISBN: 978-1-78635-222-4

Book part
Publication date: 28 September 2015

Md Shah Azam

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and…

Abstract

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

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E-Services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-325-9

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Book part
Publication date: 17 September 2012

Noël Houthoofd and Jef Hendrickx

The purpose of this paper is to identify the sources of variation in firm performance. This is one of the cornerstones of strategy research, i.e. the relative importance of…

Abstract

The purpose of this paper is to identify the sources of variation in firm performance. This is one of the cornerstones of strategy research, i.e. the relative importance of industry and firm-level effects on firm performance. Multilevel analysis is well suited to analyze variance in performance when the data are hierarchically structured (industry segments consist of firms, firms operate within the context of industry segments). The Belgian industry studied is a service industry that consists of about 25 electrical wholesalers. Data were collected from 20 firms during the period 1998–2003 from responses to a questionnaire sent to all the firms in the market. The sample in the data set covers more than 95 percent of the market (in sales), as the missing firms were just fringe competitors. The results show that firm effects explain most of the variance in four performance variables. That bears out the importance of each firm having its own specific, idiosyncratic resources and competences. The explanatory power of firm effects varies by about 30–40 percent while the intra-industry effect explains around 10 percent of the variance. Even though firm effects are dominant, intra-industry effects explain a significant portion of the variance in firm-level performance. The firm effect is smaller than in previous studies. The firm effect varies across the performance measures: firm effects are higher for returns on assets than for profit margins. The industry segment effect (or intra-industry effect) is more independent of the dependent variable. The industry segment effect is in line with previous studies on the strategic group effect. Top managers should carefully choose and monitor the intra-industry domain they are in.

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A Focused Issue on Competence Perspectives on New Industry Dynamics
Type: Book
ISBN: 978-1-78052-882-3

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Book part
Publication date: 24 October 2023

Abbie L. Daly and Dimitri Yatsenko

Firms use Relative Performance Information (RPI) to improve employee performance; however, differences in employees’ remote work environments call into question whether RPI…

Abstract

Firms use Relative Performance Information (RPI) to improve employee performance; however, differences in employees’ remote work environments call into question whether RPI improves performance in remote work arrangements. By manipulating RPI provision across sections, the authors examine whether RPI improves performance in remote work arrangements using a field experiment in introductory accounting courses taught during the COVID-19 pandemic. The authors found that RPI improves performance in a remote work setting, as students receiving RPI achieved higher exam scores and increased their exam scores to a greater extent than students who did not receive RPI. The authors also found that lower performers improved performance more than higher performers in response to RPI, and the effect of RPI was more pronounced in those closest to meaningful thresholds. These results inform practice on the expected benefits of implementing RPI in a remote work setting.

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