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Purpose – This chapter explores the determinants of trust, a manifestation of the relational dimension of social capital, between interaction partners in multinational corporations at interpersonal and inter-unit levels of analysis.

Methodology – The study is based on two quantitative data sets from the Finnish subsidiaries of foreign MNCs, one at the individual level and another at the unit level (n= 265/102).

Findings – Our results indicate that the drivers of trust exhibit similar patterns across both levels of analysis, but are stronger at the interpersonal level. Trust was significantly and positively related to the length of the relationship between the two individuals or units, and to the frequency of the communication between them whereas it was found to be unrelated with cultural distance.

Limitations – The key limitations of the study were as follows. First, the samples at both levels were relatively small, a factor that may partly explain why some of the statistical relationships were relatively weak. Second, the study was carried out in one location only, and our findings need to be corroborated in other cultural settings. Third, we only examined the level of trust from one side of the relationship, as a dyadic analysis was not possible with the present data.

Practical implications – For practicing managers, the main message from our research is that communication frequency and the length of the relationship matter for the relational social capital that exists within MNCs – both at the interpersonal and unit levels.

The literature on organizational change has long acknowledged the need to balance stability and economic efficiency with the need to be flexible and to change. Authors, certainly in the dynamic capabilities tradition but also in other perspectives, have stressed the importance of more open and loosely coupled systems to promote adaption. However, many organizations do not operate on such premises but rather rely on creating efficient business units through tight coupling, building strict social and administrative control, and jointly relying on common systems. In this study, we conduct 46 interviews with employees from three different retail organizations to investigate how units in such tightly coupled systems change within the framework of the set standards. Through contrasting the characteristics of high and low functioning units, we identify three mechanisms that seem to enable the units to successfully and repeatedly realign and establish new configurations. We conclude that the orchestrator of all three realignment mechanisms is the middle manager, and we discuss the middle manager's role and the different activities that enable a successful realignment.

The purpose of this research was to understand the sensemaking processes people use to determine their responses to organizational change initiatives as they unfold overtime. Based on a longitudinal comparative case study of five business units in a $900-million manufacturing organization in the United States, it shows that people continuously assess how the initiatives will enhance or diminish their individual and organizational identities using four kinds of trust: trust in the organization, trust in leadership, trust in the process, and trust in outcomes. The complex dynamics among these “four trusts” and their influence on responses to change are described. A four trusts model is proposed to help change leaders formulate specific trust-building strategies to increase the probability of success of organizational change initiatives. Implications for research and practice are discussed.

Knowledge transfer is an important global leader (GL) competency, given their role as knowledge brokers and capacity builders. However, knowledge transfer skills and the transfer process itself have received scant attention from both global mobility and leadership scholars. Similarly, multinationals have seldom systematically collected and utilized repatriate knowledge, despite the competitive advantage it represents in a global knowledge economy. To fill this gap, an exploratory qualitative study employing critical incidents and interviews with a multi-country sample of 47 German, Japanese, and US repatriates identified variables that facilitate knowledge transfer attempts to the work unit. Our findings corroborate the proposed variables in a conceptual model of the transfer process and articulate the transfer skills that help explain their ability to transfer. Most importantly, our findings introduce an interactive transfer model that explicates the microprocess of transfer in the repatriate–work unit relationship. We conclude with implications for global leadership research and HRM practice.

When a firm implements certain HR practices, different employees attribute different motives and intentions to the firm with regard to those HR practices. Research on HR attributions has made progress toward understanding the relationship between HR practices and employee outcomes from a process perspective. However, this research is still fragmented and lacks a systematic typology of the different types of HR attributions and a compelling organizing research framework. Furthermore, a number of research gaps and opportunities have emerged regarding the nomological net of employee HR attributions. To address the gaps and capitalize on the opportunities, the authors propose an overarching theory-driven multi-level framework that guides the choice of the antecedents and outcomes of employee HR attributions and explains their relationships along with both mediating and moderating mechanisms. Drawing on signaling theory embedded in the proposed framework, the authors identify and categorize various antecedents of employee HR attributions to explain their relationships. The authors also use several additional theories such as social exchange and the job demands–resources model included in their review to identify and categorize various outcomes of employee HR attributions across levels of analysis (i.e., individual, collective [team/group/unit], organization) and explain their relationships. In addition, the proposed framework explains how individual-level employee HR attributions emerge at the collective level and influence collective processes and outcomes. The authors end their review by pinpointing future research needs and discussing related future research directions.

It is clear that a lot of information acquisition happens through networks and therefore the focus in this article will lie in the relationships that bind a network together. The attempt is to map the motives as well as the group identity factors as means of exploring the reasons for sharing. The theoretical framework is brought from the social capital and group identity literature combined with the theories on information sharing in context. The aim is to see how information-sharing practices are developed in two different organisations and these theories are mirrored in the information sharing practices in an insurance company and in a biotechnology firm. The analysis of the cases shows how the group identity and the local context affect information sharing practices. The human and social processes underpin the formal structures enabling information interactions.

The Canadian mutual fund setting is unique in that two governance mechanisms – corporate and trust – coexist. This study empirically examines the impact of each mechanism on fund fees and performance. We find that corporate class funds charge higher fees but deliver superior fee-adjusted returns than trust funds. We then analyze the impact of various board characteristics on fees and performance for corporate class funds. We find that a board with smaller size, CEO duality, and a higher percentage of independent directors is more likely to charge lower fees. In addition, smaller boards are strongly associated with higher fee-adjusted performance. Our study supports agency theory over stewardship theory and provides valuable guidelines for Canadian investors and regulatory agencies.

This chapter explores the adoption and implementation of a conflict management system (CMS) in a hospital setting. In particular, it uncovers the different motivations and challenges associated with a CMS across various stakeholders within the organization.

The chapter is based on qualitative research conducted in a large American hospital that adopted and implemented a CMS over the course of 15 months. The author conducted extensive interviews with stakeholders across the organization, including top management, union leaders, middle managers, clinicians, and frontline staff. Findings are also based on an array of observations, including stakeholder meetings and conflict management sessions.

The case study demonstrates the centrality of underexplored, generalizable, and industry-specific pressures that may lead organizations to reconsider their use of traditional dispute resolution practices and to institute a CMS. It also highlights the inherent organizational ambivalence toward the design and adoption, initiation and implementation, and routine use of a CMS and it documents the different types of outcomes delivered to various stakeholders.

The chapter provides a nuanced portrait of the antecedents to and consequences of the transformation of conflict management within one organization. It contributes to the existing body of research exploring the 30-year rise of alternative dispute resolution and CMSs in a growing proportion of firms in the United States. The use of an in-depth case-study method to examine this CMS experience offers a number of important insights, particularly regarding different stakeholder motivations and outcomes.