Search results

This study identifies and examines psychological and environmental factors that influence the long-term orientation of top management teams (TMTs).

Data on S&P 500 companies from 2011 to 2020 are collected from the Compustat database. Additional variables were measured through content analysis of earnings conference calls. This study used two-stage least squares regression with fixed effects to analyze the data and test the hypotheses. Appropriate diagnostic tests were conducted to ensure validity and eliminate endogeneity.

The results indicate that a chief executive officer’s (CEO) promotion focus positively and significantly influences the TMT's long-term orientation. However, the influence of prevention focus is statistically insignificant. Furthermore, the results indicate that environmental hostility moderates both relationships.

The TMT's long-term orientation can be improved through the insights provided by this study.

To the authors’ knowledge, this is the first study to examine the collective effects of psychological and task environmental factors on the long-term orientation of the TMT. Additionally, this study sheds light on the internal dynamics of the top-management team.

This study investigates how a firm's regulatory focus (i.e. promotion and prevention foci) affects growth- and efficiency-oriented strategic change, highlighting the role of organizational-level regulatory focus as a cognitive frame within which to interpret performance feedback and its subsequent effects on strategic decisions.

The authors collected longitudinal data on 98 S&P 500 manufacturing firms for a seven-year period. The panel data, which includes texts from the firms' 10-K filings, were then analyzed using a feasible generalized least squares (FGLS) regression estimator to test the authors’ hypotheses.

A firm's strategic change orientation is affected by its regulatory focus and performance feedback: a promotion focus increases the magnitude of growth-oriented strategic change, while a prevention focus favors efficiency-oriented strategic change. Furthermore, both foci moderate the effect of performance feedback on the strategic change orientation: under negative performance feedback, a promotion (prevention) focus increases (decreases) the magnitude of growth-oriented strategic change relative to that of efficiency-oriented change. The findings provide robust evidence that regulatory focus can influence how organizations learn from feedback and formulate strategic change.

The authors’ examination of regulatory focus and organizational learning process relied on large manufacturing firms in the USA. However, learning process could be quite different in small and/or young firms. Future work should expand to a wider range of organizational types, such as nascent entrepreneurial ventures. In addition, the authors’ measurement of regulatory focus using corporate text has inherent weakness and could be supplemented with alternative research methods, such as surveys, interviews or experiments. All in all, however, the findings of this study offer a novel behavioral perspective while demonstrating that a regulatory focus is an important antecedent of organizational learning.

This study highlights the importance of motivational characteristics of the top managers in the process of organizational learning from performance feedback. Furthermore, recruitment of a new top manager should be aligned with the organizational context, values and goals. In addition, corporate governance systems such as managerial compensation schemes need to be carefully designed so as to maximize organizational resilience, especially in the context of performance downturn or environmental change. Establishing a constructive organizational culture so that strategic decisions are not overly swayed by the performance outcomes would also be crucial to the organizational learning process.

This study highlights the importance of understanding the motivational orientations of top managers in organizational learning. In terms of managerial compensation, for instance, an optimal incentive system should reflect the desired performance output by encouraging managerial behavior that corresponds to its objective. Furthermore, motivational orientation of new recruits should be considered in the context of the composition of the top management team members in order to achieve “optimal fit.” In addition, this study suggests that top executives' regulatory focus can be a key factor for organizations in balancing goals of different value orientations.

The findings of this study demonstrated that a firm-level regulatory focus has a significant effect on organizational learning and strategic change following performance feedback. The authors hope this study provides an impetus for future discussions on the microcognitive mechanisms of organizational learning by exploring the relations between organizations' regulatory foci, performance feedback and strategic change orientations.

This research aims to analyze whether the self-regulatory focus, a consumer variable, moderates the impact of incongruity on consumer evaluations. A congruity or typicality arises when a product (e.g. champagne) is consistently consumed in certain occasions or is used in conjunction with other specific products. This typicality may remind people of the product with regard to specific contexts but may limit the product’s overall versatility. In line with the moderate incongruity effect, there may be an opportunity to extend a product usage to situations associated with moderate incongruity or atypicality.

Study 1 is a 2 (self-regulatory focus: promotion/prevention) × 3 (atypicality of product usage context: typical/moderately atypical/highly atypical) between-subject experimental design. Study 2 replicated Study 1 with a sample of different age, three different champagne usage contexts and a manipulation of self-regulatory focus. Study 3 is a 2 (self-regulatory focus: promotion/prevention) × 3 (atypicality of product usage context: typical/moderately atypical/highly atypical) × 2 (product replicates: red wine/pearl jewelry) mixed design with self-regulatory focus and atypicality as between-subjects factors and product replicates as a within-subject variable.

Promotion-focus consumers’ product evaluations for the moderate incongruity or atypicality are higher than those for congruity and extreme incongruity. The relationship takes an inverted-U shape. Prevention-focus consumers’ product evaluations decrease monotonically as congruity decreases. Moreover, compared with prevention-focus individuals, promotion-focus ones evaluate moderate incongruity more favorably.

There are some limitations to this research. First, it only investigates the moderate incongruity effect with regard to product use occasions and complementary products. To increase the external validity of self-regulatory focus as a moderator of incongruity-evaluation relationships, it remains to future research to extend the research setting to products which have been tightly bonded to specific users, locations, seasons or times. Second, although the experimental designs are similar to previous ones, the scenarios are nevertheless imaginary. Therefore, participants’ involvement levels in all manipulated situations, as well as the quality of their answers, remain unknown.

First, brand managers should target only promotion-focus customers to obtain the moderate incongruity effect, but should maintain a consistent marketing strategy for prevention-focus customers. Second, because both promotion- and prevention-focus individuals have unfavorable evaluations of extreme incongruity, drastic changes in marketing strategies should be avoided. Third, people from a Western (Eastern) culture exhibit more promotion (prevention) focus orientation. Therefore, the type of culture can serve as an indicator of regulatory orientation. Fourth, a gain-framed appeal is recommended for realizing the moderate incongruity effect from promotion-focus consumers. Finally, promotion-focus (vs prevention-focus) consumers will welcome a moderately nonalignable than alignable product upgrade.

Most prior research on goal orientation has found that promotion-focus (vs. prevention-focus) individuals are more inclined to adopt new products, but both types of people are unlikely to purchase new products when the associated risks become salient, while the research related to schema incongruity has suggested that the moderate incongruity effect may not exist when consumers perceive high risks. By combining both schema congruity and self-regulatory focus theories, this research provides a more precise picture of how and why a person’s goal orientation influences the relative salience of risks and benefits with an increase in incongruity.

This research explores how to design service delivery systems to facilitate a customer experience that enables the realisation of prevention-oriented goals.

Case-based research is undertaken to inform the design of service delivery systems for prevention-oriented consumption goals. Data from multiple informants, from both the provider and customer perspective, in two in-depth case studies, provide empirical insights.

Drawing on customer and provider perspectives, a model of service design for prevention-oriented goals is presented. The model is informed through the identification of service delivery system characteristics (facility layout, staff service orientation, facility appearance and staff presence/appearance) and perceived experience quality dimensions (control, duration, privacy and reliability impressions) that contribute to the fulfilment of prevention-oriented consumption goals.

The research affirms that it is critical for organisations to comprehend the goals they want their service delivery systems to enable in the customer experience. Specific attention should be given to the design of facility layout, staff-service orientation, facility appearance, staff presence/appearance to positively impact perceived quality dimensions and to facilitate the realisation of customer prevention goals.

The main research contribution lies in the articulation of the design characteristics of the service delivery system that enables a customer experience supporting the fulfilment of prevention goals. The empirical study draws on both customer and organisational perspectives to identify prevention-oriented goals, and corresponding experience quality dimensions, to inform service delivery system design.

The purpose of this paper is to propose that a more optimal regulatory focus in conflict reflects a mix of promotion and prevention considerations because conflict often elicits needs for promoting well-being as well as needs for preventing threats to security and interests. Two studies using distinct methodologies tested the hypothesis that social conflict is associated with better outcomes when the parties construe the conflict with a regulatory focus that reflects a combination of both promotion and prevention orientations.

Study 1 was an experiment that framed the same low-intensity conflict scenario as either prevention- or promotion-focused, or as both. In Study 2, we mouse-coded stream-of-thought accounts of participants’ actual ongoing high-intensity conflicts for time spent in both promotion and prevention focus.

In Study 1, the combined framing resulted in greater satisfaction with expected conflict outcomes and goal attainment than did either prevention or promotion framing alone. However, a promotion frame alone was associated with greater process and relationship satisfaction. These results were replicated in Study 2.

Prior research on regulatory focus has emphasized the benefits of a promotion focus over prevention when managing conflict. The present research offers new insight into how these seemingly opposing motives can operate in tandem to increase conflict satisfaction. Thus, this research illustrates the value of moving beyond dichotomized motivational distinctions in conflict research, to understand the dynamic interplay of how these distinctions may be navigated in concert for more effective conflict engagement. It also illustrates the value of mouse-coding methods for capturing the dynamic interplay of motives as they rise and fall in salience over time.

The aim of this paper is to examine the effects of a learner’s regulatory focus orientation and message frame of a motivational virtual agent in an e-learning environment.

On the basis of quasi-experimental design, university sophomores (n = 210) categorized as chronic promotion-focus, chronic prevention-focus or neutral regulatory focus interacted with either an agent that conveyed gain-frame message or an agent that conveyed loss-frame message to persuade learners to engage with the e-learning content. Statistical analyses assessed the effects of regulatory focus and message frame on agent perception, motivation and cognitive load.

The results of this paper did not support the hypotheses that chronic promotion-focus learners will benefit more with gain-frame agent than a loss-frame agent, and that chronic prevention-focus learners will benefit more with loss-frame agent than a gain-frame agent. There were main effects of message frame (albeit small effects) – the loss-frame agent was perceived to be more engaging, induced higher motivation and prompted higher germane load than the gain-frame agent. With gain-frame agent, chronic promotion-focus learners had higher motivation toward the e-learning task than other learners.

Prior studies have examined regulatory focus and message frame with agents simulating virtual health advocates. This paper extended on this by examining these roles with a persuasive agent simulating virtual tutor in an e-learning environment.

The purpose of this paper was to examine the joint effects of regulatory focus, entrepreneurial persistence and institutional support on new venture performance.

This paper uses a random survey approach to sample 204 new ventures from Ghana. The moderated mediation method was used to analyse the survey data.

The findings from this paper show that entrepreneurs' promotion focus positively relates to persistence while prevent focus negatively influences persistence. In addition, persistence mediates the link between regulatory focus (promotion and prevention focus) and new venture performance. These relationships are positively moderated by perceived institutional support.

Using data from only the manufacturing sector in Ghana limits the generalisability of this paper. In addition, persistence is not observed or measured directly in this paper but is only used as self-reporting variable that captures an individual's tendency to persist.

The contribution of this paper is threefold. First, this paper contributes to regulatory focus literature by enhancing our knowledge on how self-regulation could help explain entrepreneurial decision-making. Second, this paper broadens self-regulation literature by adding institutional context as a moderating variable. Third, this paper helps clarify the potential role of persistence in entrepreneurship.

Valence and volume of online reviews are generally considered to influence sales positively. However, existing findings regarding the relative influence of these two components have been inconclusive. This paper aims to explain some of these inconsistencies by examining the moderating role of regulatory focus (both as a chronic disposition and as a situational focus induced by the product category) in the relationship between online review volume/valence and consumers purchase decisions.

Two studies were conducted. Study 1 used a 2 (Volume: high/ low) * 3 (Valence: high/medium/low) within-subject experimental design. Study 2 analyzed real-world data from Amazon.com. Logistic and panel regression analyses were used to test the research hypotheses.

The studies confirmed the hypothesized effect of regulatory focus on online review valence and volume effects. Specifically, Study 1 showed that online review valence was more impactful for consumers with a promotion focus than for consumers with a prevention focus. The opposite was true for online review volume effects, where consumers with a prevention focus were influenced more by volume in their decision-making compared to consumers with a promotion focus. Study 2 showed that the pattern of results we found in Study 1 also applied to situational regulatory focus induced by the product category. The effect of review volume on sales rank was stronger for prevention-oriented products, whereas the effect of valence was stronger for promotion-oriented products.

In Study 1, one product category was involved in the study (Digital camera). Involving more different product categories will add reliability to the results of current research. Also, it can offer external validity to current research results. In Study 2, there was no exact measurement for sales, as Amazon.com does not share that kind of information. Instead, Sales Rank was used as a proxy variable. Future research could look into the websites that offer access to the exact sales information.

The current research findings suggest the need for companies to adapt their consumer review management strategy to the regulatory orientation of their target market and products. When a promotion-focused mindset is targeted, strategies for increasing the favorability of product reviews should be used, in contrast, tactics for increasing the quantity of reviews may be more suitable when a prevention-focused mindset is involved.

To the best of the authors' knowledge, this research is the first to investigate the interaction between regulatory focus of consumers and products and online review components.

The present research examines the interaction between explanation type and regulatory focus on informational justice (IJ) and satisfaction with service recovery.

The authors conducted two experiments with 538 respondents.

The findings imply that the effectiveness of the explanation type depends on the regulatory focus of the recipient and the severity of the failure. Specifically, with low severity failures, promotion-oriented respondents were sensitive to explanations about why failures happened. Conversely, their prevention-oriented counterparts were sensitive to explanations about how failures happened. With high severity failures, respondents were sensitive to how the failure happened irrespective of their regulatory focus orientation. Moreover, IJ is the psychological mechanism explaining such effects on satisfaction with service recovery.

The research contributes to the service recovery literature showing that explanations provided by the service providers should match the regulatory focus of the customers. The study provides new insights to the practicing managers to enhance the effectiveness of the explanations thus reducing recovery dissatisfaction.

Drawing upon upper echelon, regulatory focus and attention theories and focusing on SMEs, the purpose of this paper is to answer questions on how the motivational disposition (promotion vs. prevention regulatory focus) of CEOs affects their information search patterns (i.e. search selection and intensity) and consequently organizational level engagement in different types of innovation activities (exploration vs. exploitation).

A quantitative study was conducted collecting data from the CEOs of SMEs operating in the dynamic wine and spirits industry in Greece. The data were collected in two independent time streams and the proposed theoretical model was tested by applying OLS regression analysis.

The current research provides evidence that differences in CEOs’ level of promotion and prevention focus trigger different information search selection and search intensity patterns. Nonetheless, the attention to innovation components act as mediators only in the hypothesized relationships between a CEO's level of prevention and promotion focus and exploration. Paradoxically, filtered through attention to innovation and triggered from the same motive, that is to reduce negative emotions, promotion focus CEOs choose to direct resources to exploitation and avoid investing in exploration, whilst the opposite was supported for prevention focus CEOs.

The results highlight the important role of a CEO's regulatory focus orientation in promoting diverse attention to innovation patterns and firm-level innovation tendencies towards exploration and/or exploitation.

This study's contributions extend and combine the theories of regulatory focus, UET and attention in the field of managerial/entrepreneurship behavior and innovation. Therefore, they are valuable for understanding the determinants of firm-level innovation choices (exploration vs. exploitation) in SMEs.