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Based on socioemotional selectivity theory, the authors aimed to develop and test hypotheses that identify the direct effect of top management team (TMT) age diversity on firms’ financial performance (return on equity [ROE], return on assets [ROA]) and the interactive effect of TMT age diversity and TMT average age on firms’ financial performance.

The paper presents results from a quantitative study of 867 TMTs in Korean manufacturing firms. Multiple hierarchical regression analysis was used to test the hypotheses.

The results show that TMT age diversity had a negative and significant main effect on ROE but not on ROA. They also indicate that the negative relationship between TMT age diversity and firm performance (ROE) was attenuated when the members of TMTs were relatively older.

First, this study extends existing TMT research, which mainly focuses on macro factors, such as industry and environment, by using micro factors, including TMT age diversity and TMT average age. Second, this paper combines and extends previous TMT studies, which have been dominated by either “property” or “tendency”, by examining the interactive effect of the distributional property (diversity) and central tendency (average) of TMT age on firms’ financial performance. Finally, this study indicates that socioemotional selectivity theory may be useful to explain the link between TMT age diversity and firms’ financial performance.

The purpose of this paper is twofold. First, it empirically examines two theory-based models of applicants’ job search developed from planned happenstance theory (PHT) and theory of planned behavior (TPB). Second, it tests the cross-cultural compatibility of these models in Japan and Korea.

The authors tested two theory-based job search models, PHT model and TPB model based on samples of college students from Japan (n=175) and Korea (n=172).

The results indicated that the TPB model was a significantly better fitting to the data than the PHT model. Moreover, a multi-group test of the TPB model demonstrated that the TPB model was invariant between the Japanese and the Korean samples.

Although there had been an important question among job search literatures regarding how important the planned behavior in the job search processes would be, the study gave an empirical support to the TPB job search model in contrast to the PHT model. Another contribution is that the study tested the Western-driven theories using Asian samples from Japan and Korea, constituting an important benchmark for further studies that attempt to test the generalizability of the TPB model, particularly in countries/areas that employ different employment systems.

Although social exchange theory has long been used to explain employees’ positive work attitudes in response to perceived investment in employee development (PIED), few studies have examined this theoretical mechanism by introducing a direct measure of social exchange between employees and their personified organization. Furthermore, most studies have focused solely on one type of exchange (i.e. social exchange) and have ignored another type of exchange characterized as economic exchange. The purpose of this paper is therefore to uncover the process by which PIED affects employees’ attitudes, including affective organizational commitment and job satisfaction, by examining the mediating roles of both social and economic exchanges.

To test the hypothesized mediating model, this study conducted a three-phase, time-lagged questionnaire survey and collected data from 545 full-time employees. The model was tested based on structural equation modeling with a bootstrap test of indirect effects.

In line with social exchange theory, the findings showed that social exchange perceptions positively mediated the relationships between PIED and affective commitment/job satisfaction, whereas economic exchange perceptions negatively mediated them. Additionally, social and economic exchange perceptions were found to partially mediate the relationship between PIED and affective commitment but fully mediate the relationship between PIED and job satisfaction.

These results suggest that employers would benefit from investing in employee development, provided workers see the training investment as the employer’s side of social exchange, which in turn leads to increased affective commitment and job satisfaction. When employers do not achieve the expected returns from the training investment, they should check not only hard data (e.g. training attendance rate, hours of training, etc.) but also soft data (e.g. employees’ perceptions of training investment, social exchange, etc.) by conducting employee surveys and communicating with line managers.

The main contribution of this study is that it provides important empirical support for social exchange theory in the context of organizational training investment and employees’ attitudinal outcomes, by directly testing the positive mediating role of social exchange and the negative role of economic exchange.

The purpose of this paper is twofold: first, to investigate the effect of top management team (TMT) tenure diversity and firm financial performance (return on equity [ROE], return on assets [ROA]), and, second, to examine the moderating effect of TMT average age between TMT tenure diversity and firm performance.

The paper presented results from a quantitative study of 744 TMTs in Japanese manufacturing firms. The multiple hierarchical regression analysis was used to test the hypotheses.

The results show that TMT tenure diversity had a negative and significant main effect on ROE but not ROA. Furthermore, the results also indicated that the negative relationship between TMT tenure diversity and firm performance was attenuated by having older TMTs.

First, this paper expands scope of research on TMT diversity, which has hitherto primarily on non-individualistic variables (such as industry setting) by examining the moderating role of an individualistic variable (TMT average age). Second, this paper extended the attempts to apply the age-related theory by considering the role from the viewpoint of group level, namely, TMT average age.

The purpose of this paper is twofold. First, it attempts to examine how employees’ career planning (CP) interacts with the quality of leader-member exchange (LMX) to explain subjective career success. Second, the authors investigate how the pattern of such interactions differs between male and female employees.

To increase the generalizability, the study tested hypotheses in two studies whose data were collected in different national settings. Study 1 was designed to analyze 144 Korean employees and Study 2 investigated 140 Japanese employees. Both groups of employees worked for privately owned firms.

The authors found a three-way interaction effect between gender, CP, and LMX quality in predicting subjective career success. As hypothesized, the positive relationship between quality of LMX and subjective career success was stronger for males with high CP, whereas for females such a stronger relationship was found for women with low CP.

This study contributes to the literature in two ways. First, it extends career research by considering the interactive effects of individual and interpersonal factors on employees’ subjective career success. Second, it combines the research streams of social exchange theory (LMX), career theory (the boundaryless career), and gender theory (agentic and communal personality traits). This suggests that the ideas of the three theories could serve together as a useful framework for explaining gender differences in subjective career success through setting career goals and building relationships with supervisors.

The findings have important practical implications for managers and leaders, who generally seek to motivate their employees toward career achievement.

This study is one of the first to provide a new perspective for understanding the process by which men and women perceive their subjective career success differently with regard to social exchange relations with their supervisors and CP.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Investing in training and development HRM practices enables companies to show their employees that they are valued. Employee response is likelier to be positive when the investment is perceived in terms of social exchange reflecting a long-term relationship based on mutual trust rather than more impersonal economic exchange where concern for the employee is minimal.

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.