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In this chapter, I detail a procedure for incorporating status characteristics with more than two ordered states, or graded status characteristics, into status characteristics theory. I revise theoretical definitions and assumptions accordingly. The new procedure adds a weighting function to the existing mathematical structure of the theory. I show that estimates using the new procedure are consistent with findings drawn from four experiments that were run in the standard setting for status characteristics theory. I also show that the procedure explains more variation and improves global model fit when predicting expectations using newly collected vignette data. I conclude with a general discussion of the procedures and implications for other expectation states theories and for research conducted outside the laboratory.

Past research has primarily focused on the negative impact of workplace mistreatment or aggression on the individuals involved, workgroups, and organizations. Certain circumstances, however, create paradoxical effects in which mistreatment positively relates to desirable workplace outcomes and characteristics at the individual and/or organizational level. Reviewing the theoretical and empirical evidence of beneficial outcomes provides researchers and practitioners with a more comprehensive understanding of the progression of workplace mistreatment, allowing them to target specific mechanisms to mitigate detrimental effects and potentially discover important avenues that lead to desired outcomes. A qualitative review of 13 articles demonstrated that different forms of aggression such as bullying, abusive supervision, incivility, and ostracism have positive relationships with paradoxical outcomes and characteristics such as resilience, prosocial behaviors, socially desirable behaviors, job performance, job satisfaction, and creativity. The authors caution against leveraging mistreatment as a method for producing these desired outcomes; instead, the authors encourage researchers and practitioners to utilize the information to further their understanding of the nomological network of workplace mistreatment and its underlying mechanisms, such as cognitive reappraisal and social learning.

This chapter examines the use of signaling mechanism to identify promising acquisition targets. It draws on the importance of inter-organizational relationships of target firms and their relevance as signals of firm quality. It takes into account two types of inter-organizational relationships, alliances and corporate venture capital (CVC) investments. It further identifies the boundary conditions that are most likely to influence the acquisition decision of the acquirer. These are based on the characteristics of target firms and their partners. By considering the role of CVC investments and alliances as signals of firm quality, the study draws a connection between how the different types of equity and non-equity relationships of firms influence the acquirer’s choice of potential takeover target.

The theoretical frame based on the signaling perspective provides fresh and valuable insights to evaluate the quality of target firms. The research provides directions for future opportunities to examine the value of signals and whether such signals create synergies in mergers and acquisitions (M&A) deals. The author identifies new avenues of research that would help to move forward the signaling perspective in the literature on M&A.

Intangible assets and reputation play a considerable and complex role in acquisitions. Targets with better reputations are more attractive, yet may fetch a premium. Though the intangibles drive many transactions, the ability of an acquirer to leverage intangibles and reputation specifically after the transaction is more problematic. Two characteristics of reputation – mobility and transferability – are introduced to reflect the degree to which a target’s positive reputation may accrue to the buyer following an acquisition. Acquirer experience, hubris and cultural differences between acquirer and target may moderate the relationships between these characteristics of reputation and acquisition outcomes. Implications for practitioners are offered, including when acquiring firms should look for reputation capture vs. spillover, and when employee retention and internal communication should be the focus vs. integration and external communication.

Purpose – Study the role of sovereign wealth funds (SWFs) as an example of foreign and politically connected large shareholders, and their impact on firm value.

Methodology/approach – Use a sample of SWF large U.S. investments where SWFs intend to actively engage with management to analyze not only whether but also why SWF investments outperform the market in both the short- and long term from the perspective of internationalization, political connections, and corporate governance.

Findings – Foreign and politically connected large investors, like SWFs, improve firm value through the provision of SWF domestic market access and government-related contracts. In the short run, the market welcomes SWF investments in expectation of potential monitoring and internationalization benefits. In the long run, the target firms’ degree of internationalization and Tobin's q increase substantially after SWF investments. The increase in q is directly related to the number of government-related contracts granted by SWF countries.

Social implications – SWF investment benefits appear to outweigh the costs for firm value and shareholders. The results point to the benefits of large and foreign investors for shareholders.

Originality/value of paper – This is the first work to provide evidence on how foreign government-related shareholders can affect firm value.

In a world of asymmetric information between managers and investors, the choice of the payment method is a key issue in mergers and acquisitions. Previous literature shows that contingent methods of payment other than stocks (e.g. contingent value rights, earnouts or convertible securities), even if they do not solve the information asymmetry problems, can mitigate their consequences. In this chapter, I examine the motivations and the effects of the inclusion of a contingent payment method the use of which has not been studied yet, the warrant. I show that this consideration is used mainly when information asymmetry problems are severe and that it can be used to solve the information problems.

This commentary on Kenny and Livi (2009) expands on aspects of leadership categorization theory that are consistent with the application of the social relations model (SRM). It critically considers limits to the generalization of the variance components analysis results described in Kenny and Livi's first example, and briefly summarizes results of an additional study that supports their findings. Finally, this commentary suggests interpretational issues of interest to researchers who wish to continue to apply the SRM to multi-level issues in the study of leadership.

Purpose: Work-related emotional exposure is a fundamental job characteristic in all kinds of service jobs from sales to law enforcement and corrections and from human services (nursing, counseling) to legal services. But formalized job descriptions are surprisingly silent about the emotional issues accompanying the jobs and roles service workers perform. This is surprising because formalized job descriptions are the foundation of job design, HR, and leadership practices that positively affect employee, customer, and organizational outcomes. Study Design/Methodology/Approach: This is a theory paper and review. To help clarify the emotional labor issues service employees confront, we explicate a model of emotional labor based on the attributes of jobs, roles, and professionalism. Findings: We define emotional labor as service work that exposes those who do such work to interactions with others that can arouse negative emotions. We propose that, while employing organizations define their jobs and employees craft their larger roles, professional norms and values also are a foundation for their emotional labor. Research Implications: We integrate this work-focused emotional labor model into the larger context in which such work occurs via theory and research on organizational climate. We suggest future research on this approach to understanding the antecedents and consequences of emotional labor work. We summarize the major research ideas of what should be the focus of such research and provide a hint about what an emotional labor climate scale might look like based on these ideas. Practical Implications: This chapter offers practical advice to HR managers about how to improve emotional labor. Social Implications: Better management of emotional labor can reduce employee stress and increase employee well-being. Originality/Value: This chapter develops an original model of emotional labor.

We propose a typology of acquisition value creation logics derived from the dynamic capability literature and explore the organisational capabilities and implementation processes required for the effective delivery of three value creation logics: governance-based, cost-based and knowledge-based. We argue that each value creation logic calls for a specific and distinct set of acquirer capabilities and post-acquisition implementation processes. We put forward a contingency approach, where effective corporate acquirers make a conscious choice as to their predominant value creation logic based on a consideration of their organisational capabilities, which, in turn, defines the characteristics of appropriate target companies and the necessary implementation actions required to realise value post-acquisition. We discuss the implications for both acquiring firm executives and future M&A research.