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Article
Publication date: 1 August 2016

Freddy C. Coronado and Christian A. Cancino

The purpose of this paper is to explain how two task characteristics and two individual differences influence which heuristics individuals use, and as a results explain…

Abstract

Purpose

The purpose of this paper is to explain how two task characteristics and two individual differences influence which heuristics individuals use, and as a results explain their decision performance when choosing performance measures (PMs) for incentive compensation.

Design/methodology/approach

In total, 76 MS accounting students volunteered to participate in an experiment. A between-subjects experimental design was used to test the hypotheses.

Findings

The experimental evidence suggests that individuals, while using high-complexity heuristics, can choose an incorrect PM when PM attribute conflict is present and the difference between PM attribute differences is small. Individuals with high goal commitment are more likely to make the correct choice than individuals with low goal commitment, because they focus more on the PMs’ goal congruence than on the PMs’ noise when making tradeoffs between the conflicting PMs’ attributes.

Research limitations/implications

The social context can stimulate individuals’ empathic concern and/or goal commitment and thus explain individuals’ performance when PM attribute conflict is present and the difference between PM attribute differences is small.

Practical implications

The results of this study are important to those responsible for designing incentive systems give greater importance to considering not just congruency attributes in PM but precision attributes as well.

Originality/value

This paper develops predictions and provides experimental evidence on two task characteristics that influence individuals’ use of heuristics when choosing PMs for incentive compensation. In addition, it provides evidence that individual differences can affect individuals’ PM choice performance when tradeoffs between PMs’ congruity and precision are required.

Details

Personnel Review, vol. 45 no. 5
Type: Research Article
ISSN: 0048-3486

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Article
Publication date: 7 January 2019

Xue Li, Lucy Gongtao Chen and Jian Chen

The purpose of this paper is to investigate cultural and individual differences in newsvendor decision making.

Abstract

Purpose

The purpose of this paper is to investigate cultural and individual differences in newsvendor decision making.

Design/methodology/approach

The online experiment, programmed in the PHP scripting language, had 107 participants: local managers of four large, well-known and supply chain–intensive firms in China (Lenovo, Shenhua, CMST and GM).

Findings

The authors find that, as compared with American subjects, Chinese subjects engage in more demand chasing, order quantities that are closer to the mean demand, have a lower expected profit and exhibit greater variance in order quantities. However, these observations may not hold when the cross-cultural comparison is conducted for each pair of ethnic subgroups whose members have the same cognitive reflection test score, a measure of individual differences. Moreover, cultural differences also affect how individual differences manifest in newsvendor decisions.

Practical implications

The authors findings have important implications for employee selection, training and management in any cross-cultural business environment.

Originality/value

Little attention has been paid, in the behavioural operations literature, to individual differences and how they interact with culture. This paper is the first to examine the interaction effects of cultural and individual differences in newsvendor decisions, and it highlights an important research area that is currently understudied in operations management.

Details

International Journal of Operations & Production Management, vol. 39 no. 1
Type: Research Article
ISSN: 0144-3577

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Book part
Publication date: 2 December 2019

Frank Fitzpatrick

Abstract

Details

Understanding Intercultural Interaction: An Analysis of Key Concepts
Type: Book
ISBN: 978-1-83867-397-0

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Article
Publication date: 16 March 2015

Sven Heidenreich and Matthias Handrich

The purpose of this paper is to develop and empirically evaluate an adoption model for technology-based services (TBS) that integrates a customer’s willingness to…

Abstract

Purpose

The purpose of this paper is to develop and empirically evaluate an adoption model for technology-based services (TBS) that integrates a customer’s willingness to co-create (WCC) as mediator complementing the well-known individual differences and innovation characteristics in predicting customer adoption of TBS.

Design/methodology/approach

The manuscript uses structural equation modeling to analyze survey data from two empirical studies (n=781 and n=181).

Findings

The empirical results show that WCC represents a key mediator between established antecedent predictors (innovation characteristics and individual differences) and the likelihood of TBS adoption. Additionally, the analysis reveals that WCC can even better explain and predict adoption intention of TBS than the commonly used individual differences and innovation characteristics. Finally, the results also suggest that a lack of customers’ WCC may help to explain persuasion-decision discrepancies within TBS adoption.

Research limitations/implications

As the data of this manuscript pertains to the mobile apps market, future research might test the modified technology adoption model in other TBS contexts as well. While the studies used cross-sectional data, it would be interesting to assess the differential influence of WCC across the stages in the adoption process using longitudinal data.

Practical implications

The findings on WCC provide managers with a new set of factors (apart from known antecedent predictors like individual differences and innovation characteristics) to optimize TBS adoption.

Originality/value

This manuscript is the first to examine an adoption model for TBS that integrates a customer’s WCC. Furthermore, the findings provide first empirical evidence that WCC can help to explain persuasion-decision discrepancies within TBS adoption.

Details

Journal of Service Management, vol. 26 no. 1
Type: Research Article
ISSN: 1757-5818

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Article
Publication date: 3 August 2012

Ting Luo and Wenjuan Xie

The purpose of this study is to examine the impact of unidentifiable individual differences among financial analysts on the cross section of their earnings forecast accuracy.

Abstract

Purpose

The purpose of this study is to examine the impact of unidentifiable individual differences among financial analysts on the cross section of their earnings forecast accuracy.

Design/methodology/approach

The paper employs the concept of analyst fixed effects to control for unidentifiable individual differences. Various psychological factors, such as decision style and personality traits, are documented to impact individuals' decision making. However, analysts' individual differences in such psychological factors are not captured by identifiable personal attributes employed in finance literature, such as years of experience. The methodology used addresses this issue and presents a more comprehensive study of analyst forecast accuracy.

Findings

The paper documents that unidentifiable analyst‐specific effects are significant, and that controlling for them improves model fitting and changes the explanatory power of some of the traditionally used independent variables in the literature. The paper confirms that the analyst's firm‐specific experience, the intensity of following that a firm receives, and the forecast horizon are all significantly and consistently related to forecast accuracy. However, it is found that analyst general experience and coverage complexity lose explanatory power when individual differences are controlled for. Analyst general experience is not monotonically associated with better accuracy and that analysts only benefit from increased general experience during the early to middle stages of their career. Finally, when analysts' individual differences are controlled for, the boldness of a forecast revision is not associated with the improvement of accuracy.

Research limitations/implications

The documented non‐monotonic relationship between analyst general experience and forecast accuracy is explained as a result of U‐shaped self‐efficacy, decision style and career concerns. This observation is not necessarily in line with the theory of analyst seniority and reputation‐related performance.

Originality/value

The methodology used addresses the issue of analysts' individual differences in psychological factors and presents a more comprehensive study of analyst forecast accuracy.

Details

Review of Accounting and Finance, vol. 11 no. 3
Type: Research Article
ISSN: 1475-7702

Keywords

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Book part
Publication date: 10 April 2006

Robert E. Ployhart and Paul D. Bliese

Work organizations and the employees within these organizations face considerable environmental pressures requiring adaptive change. Several forces have contributed to…

Abstract

Work organizations and the employees within these organizations face considerable environmental pressures requiring adaptive change. Several forces have contributed to this need for great adaptation. These are described in many excellent sources (e.g., Cascio, 2003; Ilgen & Pulakos, 1999); here we briefly review their implications for individual adaptability.

Details

Understanding Adaptability: A Prerequisite for Effective Performance within Complex Environments
Type: Book
ISBN: 978-1-84950-371-6

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Book part
Publication date: 8 July 2008

Greg Hundley and Carlos Sánchez Runde

Data from samples of managers from eight countries, Thailand, Nigeria, Philippines, Peru, Uruguay, Argentina, Spain, and the United States, are used to explore…

Abstract

Data from samples of managers from eight countries, Thailand, Nigeria, Philippines, Peru, Uruguay, Argentina, Spain, and the United States, are used to explore cross-national differences in how individuals make judgments about an individual's pay. A policy-capturing instrument is used to elicit judgments about the ways that variations in individual employee job performance, business unit performance, seniority, schooling, and need affect judgments about pay fairness. Significant between-country differences are found in the sensitivities of pay fairness judgments. However, these differences are not well explained by differences in individualism/collectivism reflected either by a priori categorizations of national culture or direct measures of horizontal/vertical collectivism. Implications for the explanation of cross-national differences are explored.

Details

The Global Diffusion of Human Resource Practices: Institutional and Cultural Limits
Type: Book
ISBN: 978-0-7623-1401-0

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Book part
Publication date: 1 January 2005

Shelley D Dionne, Amy E Randel, Kimberly S Jaussi and Jae Uk Chun

This article presents a comprehensive and qualitative review of how levels of analysis issues have been addressed in the diversity and demography literature. More than 180…

Abstract

This article presents a comprehensive and qualitative review of how levels of analysis issues have been addressed in the diversity and demography literature. More than 180 conceptual and empirical publications (i.e. book chapters and journal articles) in this field are reviewed and coded regarding the specific incorporation of levels of analysis in theory and hypothesis formulation, representation of levels of analysis in measurement of constructs and variables, appropriateness of data-analytic techniques given the explicit or implied levels of analysis, and alignment between levels of analysis in theory and data in regard to drawing inferences and conclusions. Although the body of diversity and demography literature continues to grow, levels of analysis issues are rarely considered. Only a few reviewed studies address levels of analysis issues in theory development, and no reviewed studies employ appropriate multi-level data analytic techniques. Implications for future research are discussed, and recommendations for incorporating levels of analysis into diversity and demography research are provided.

Details

Multi-level Issues in Organizational Behavior and Processes
Type: Book
ISBN: 978-1-84950-269-6

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Article
Publication date: 17 August 2010

Mark M. Suazo and William H. Turnley

The purpose of this paper is to examine relations between five individual differences variables (positive affectivity, negative affectivity, reciprocation wariness, equity…

Abstract

Purpose

The purpose of this paper is to examine relations between five individual differences variables (positive affectivity, negative affectivity, reciprocation wariness, equity sensitivity, and Protestant work ethic) and the perception of psychological contract breach (PCB), and whether those relations are mediated by perceived organizational support (POS).

Design/methodology/approach

A survey was administered to 234 professional (i.e. white‐collar) employees in the USA. Regression analyses were conducted to test the proposed relations and mediating hypotheses.

Findings

In line with the hypothesized predictions, the findings indicate that POS fully mediated the relations between four out of the five individual difference variables examined (i.e. positive affectivity, reciprocation wariness, equity sensitivity, Protestant work ethic) and perceived PCB. In addition, POS partially mediated the relation between negative affectivity and perceived PCB.

Research limitations/implications

The use of a cross‐sectional, non‐experimental, design does not allow for conclusions to be drawn regarding causality and it is possible that the reported results may have been influenced by common method variance. Future research should examine additional individual differences and workplace contextual features.

Practical implications

Managers need to realize that some determinants of perceived PCB, and POS for that matter, are likely to be unrelated to organizational actions. Rather, perceived PCB and POS may result, in part, from an employee's individual characteristics.

Originality/value

This is the first study to provide empirical evidence that positive affectivity, negative affectivity, reciprocation wariness, equity sensitivity, and Protestant work ethic may predict the perception of PCB and that POS may mediate these relations.

Details

Journal of Managerial Psychology, vol. 25 no. 6
Type: Research Article
ISSN: 0268-3946

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Book part
Publication date: 15 July 2009

Barry Gerhart

It is generally recognized that multinational enterprises must take into account country differences in deciding the degree to which it makes sense to localize their human…

Abstract

It is generally recognized that multinational enterprises must take into account country differences in deciding the degree to which it makes sense to localize their human resource management (HRM) strategies and organization cultures to fit with the host country or rather standardize HRM strategies and organization cultures across countries. However, an important vein of academic work assumes that country differences, especially in national culture, are so important that management is “culturally dependent” (Hofstede, 1983) and that “national culture constrains variation in organization cultures” (Johns, 2006). I critically evaluate the logical and empirical evidence (including methodological issues regarding effect size) used to support such constraint arguments and conclude that the evidence is much weaker than widely believed. One implication then is that organizations may be less constrained by national culture differences in managing workforces in different countries than is often claimed. A second implication is that researchers may wish to re-think how they study such issues. I provide suggestions for future research.

Details

Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-1-84855-056-8

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