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This chapter describes how to use popular software programs (Hierarchical Linear Modeling, LISREL) to analyze multiwave panel data. We review prevailing methods for panel data analyzes in strategic management research and identify their limitations. Then, we explain how multilevel and latent growth modeling provide more rigorous methodologies for studying dynamic phenomena. We present an example illustrating how firm performance can initiate temporal change in the human and social capital of members of Board of Directors, using hierarchical linear modeling. With the same data set, we replicate this test with first-order factor latent growth modeling (LGM). Next, we explain how to use second-order factor LGM with panel data on employee cognitions. Finally, we review the relative advantages and disadvantages of these new data-analytical approaches.

This study investigates the situations in which productive organizational energy (POE) and organizational performance increase through customer passion, that is, perceived customers’ affective commitment and customers’ positive word-of-mouth behavior. We integrate research on POE with research on customer influences on employees. Based on emotional contagion processes we develop hypotheses for the energizing influences of customers at the organizational level. We test the hypotheses using a dataset containing 495 board members and 8,299 employees of 152 organizations. The results show that customer passion is positively related to POE, which is in turn positively related to organizational performance. Furthermore, the findings indicate that the effect of customer passion on organizational performance through POE depends on top management team’s (TMT’s) customer orientation. By providing first insights into the linkages and contingencies of customer passion, POE, and organizational performance, this study puts forth a more holistic understanding of the energizing effect of customers on organizations.

Purpose – Our study focuses on the impacts of young adults’ financial situation and agency on success and satisfaction regarding developmental tasks (attainments in educational, work and social domains) in the context of economic upheavals.

Methodology/approach – The study is part of the longitudinal Finnish Educational Transitions Studies (FinEdu), in which high school students (N=614 at baseline) participated once before and three times after graduation (ages 19–25) while progressing to tertiary education and employment.

Findings – Agency (indicated by achievement and social approach strategies) increased, whereas achievement and social avoidance decreased from ages 19 to 25. Financial situation improved from an objective but not subjective perspective. Both high and increasing levels of agency were related to high levels of success and satisfaction regarding developmental tasks at age 25. In particular, social approach was related to educational attainment, sense of belonging, and romantic relationship satisfaction. High initial levels of agency and an improved financial situation predicted low economic pressure at age 25.

Research implications – Both sociopolitical structures and individual agency are important in shaping life course transitions in early adulthood. The apparent discrepancy between the macro-level national economic recession and young adults’ relatively high economic satisfaction could be explained by high agency in a welfare state context.

Social implications – The study shows important links between individuals’ life course and the societal context of Finland, a secure Nordic welfare state in the midst of global economic upheavals.

Originality/value of paper – Our longitudinal study makes a significant contribution to life course research by comprehensively conceptualizing the developmental tasks and considering their individual and social determinants.

This study investigates the way in which acquisition-related human factors affect knowledge transfer in the context of Chinese cross-border M&A for strategic assets. The authors find that the process of knowledge transfer is reciprocal for revenue and cost synergies, including explicit and tacit knowledge. The establishment of joint ventures (JV) in China after the takeover boosts product-oriented knowledge transfer from overseas-acquired firms in mature markets to Chinese acquirers. The promotion of overseas synergies stimulates complementary knowledge transfer flow, which is reversely transferred from Chinese acquirers to overseas-acquired subsidiaries such as low-saving sourcing and new market applications. This study identifies three acquisition-related human factors that impact overseas knowledge senders for knowledge transfer. These human factors are implemented by Chinese strategic investors as new shareholders during the loosen integration phase. The first facilitator is all-round communication programs with top management involvement, aiming to build up constructive communication channels to boost knowledge transfer. The second facilitator is competence-based trust, which stimulates cooperation and application based on similar professional competence between Chinese acquirers and their overseas-acquired subsidiaries. The impeder is a high turnover of key skilled workers at Chinese acquirers to undermine the effectiveness of knowledge transfer.

Purpose – The purpose of this chapter is to examine methodological trends in emerging market strategy research and to provide a comprehensive review of methods of assessing group variation in comparative studies.

Methodology/approach – This comprises a systematic review of the methodology of emerging market research over the past 10 years, followed by methodological best practices for comparative studies involving emerging and mature markets, with exemplars from the past research.

Findings – Despite previous calls for more comparative studies in emerging market research, most of the literature is reporting on single-country studies. There is some confusion in terminology and the methods used in this area of strategy research. Increased attention to the “East” calls for a reevaluation of methods utilized in comparative studies. The methods described in this chapter present best practices for comparative research.

Social implications – More comparative studies would substantially expand our understanding of the differences between the emerging and developed markets, and the potential impact of emerging markets on global economy. Rigorous research methods extend validity and generalizability of the studies.

Originality/value – This chapter is the first study to date to analyze the methodological trends of the entire field of emerging market research over the span of 10 years and to provide systematic methodological recommendations tailored to analyzing variation in comparative studies.

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.

This chapter proposes a more holistic approach to understanding work stress by incorporating eustress, the positive response to stressors. We begin by casting the study of eustress as part of a contemporary movement in both psychology and organizational behavior that accentuates the positive aspects of human adaptation and functioning. We discuss the development of the concept of eustress, and provide extensive evidence, both psychological and physiological, for the purpose of developing an explicit construct definition. An exploratory study of hospital nurses is presented as an initial test of our holistic model of stress. We conclude by asserting that there must exist a complement to coping with distress such that rather than preventing or resolving the negative side of stress, individuals savor the positive side of stress.

With human resource (HR) roles evolving to encompass wider responsibilities, HR decision-making in organizations has become more complex than ever. This has compelled researchers in the area to move beyond simplistic models to testing models that involve studying the relationship between multiple independent and dependent variables in the presence of moderators and mediators, in order to make relevant contribution to managerial decision-making. Thus, research in the field is heavily dependent on multivariate techniques that can run several regressions simultaneously and can study the influence of one variable on the other, in presence of the other variables in the model. Structural equation modeling is the most widely used multivariate technique and involves two phases – measurement model to test reliability and validity of study constructs and structural model that involves path diagrams to test the causal relationships between these constructs. At times, however, the researcher might run into trouble with validity issues of constructs in the measurement model; especially when dimensions of a larger construct are used as independent constructs in the study. Introducing a second-order construct in such a case could be the solution to proceed further. Using empirical data, this chater illustrates the case of such a problematic measurement model and details the research methodology of introducing and working with a second-order construct in a step-wise manner, starting with an exploratory factor analysis and subsequently, moving toward a confirmatory factor analysis, highlighting the best practices to be followed while using these statistical techniques.

Concepts equip the mind with thought, provide our theories with ideas, and assign variables for testing our hypotheses. Much of contemporary research deals with narrowly circumscribed concepts, termed simple concepts herein, which are the grist for much empirical inquiry in the field. In contrast to simple concepts, which exhibit a kind of unity, complex concepts are structures of simple concepts, and in certain instances unveil meaning going beyond simple concepts or their aggregation. When expressed in hylomorphic structures, complex concepts achieve unique ontological status and serve particular explanatory capabilities. We develop the philosophical foundation for hylomorphic structures and show how they are rooted in dispositions, dispositional causality, and various mind–body trade-offs. Examples are provided for this emerging perspective on “Big concepts” or “Big Ideas.”

Purpose – This study tests three theories of determinants of workers' subjective response to work situations – structural factors (measured by individual, organization, and job characteristics), general disposition, or informal work arrangements as constructed by Laubach's (2005) “consent deal.”Design/methodology/approach – Data were obtained from the Indiana Quality of Employment Survey, a survey of workers covering general working conditions. We constructed 10 models regressing worker perceptions and attitudes (e.g., satisfaction, relations with supervisors, meaningfulness) on structural determinants. We then used structural equation modeling to identify an underlying factor representing a general worker response from elements of the attitudes and perceptions. Finally, we regressed a scalar version of the general response factor on the structural determinants using the previous models.Findings – We identified a single second-order latent factor underlying the 10 attitudes and perceptions which represented the “general subjective response” of workers. This supported the concept of a dispositional effect. We then found that structural factors had a minimal effect on the subjective response, but that informal arrangements had a very strong effect. This undermined the first two theories and supported the third.Implications – Worker attitudes and perceptions are very resilient to different formal work arrangements but are highly influenced by the informal arrangements negotiated between workers and frontline management. Organizations can have the strongest effect on developing worker support by empowering frontline managers to make informal deals on workplace rules.Originality/value – This study offers a means to probe the relationship between formal and structural and the informal and subjective worlds of the workplace.