G. Ertug, Martin Gargiulo, C. Galunic, Tengjian Zou
We study the relationship between choice homophily in instrumental relationships and individual performance in knowledge-intensive organizations. Although homophily should make it easier for people to get access to some colleagues, it may also lead to neglecting relationships with other colleagues, reducing the diversity of information people access through their network. Using data on instrumental ties between bonus-eligible employees in the equity sales and trading division of a global investment bank, we show that the relationship between an employee’s choice of similar colleagues and the employee’s performance is contingent on the position this employee occupies in the formal and informal hierarchy of the bank. More specifically, homophily is negatively associated with performance for bankers in the higher levels of the formal and informal hierarchy whereas the association is either positive or nonexistent for lower hierarchical levels.
{"title":"Homophily and Individual Performance","authors":"G. Ertug, Martin Gargiulo, C. Galunic, Tengjian Zou","doi":"10.1287/orsc.2018.1208","DOIUrl":"https://doi.org/10.1287/orsc.2018.1208","url":null,"abstract":"We study the relationship between choice homophily in instrumental relationships and individual performance in knowledge-intensive organizations. Although homophily should make it easier for people to get access to some colleagues, it may also lead to neglecting relationships with other colleagues, reducing the diversity of information people access through their network. Using data on instrumental ties between bonus-eligible employees in the equity sales and trading division of a global investment bank, we show that the relationship between an employee’s choice of similar colleagues and the employee’s performance is contingent on the position this employee occupies in the formal and informal hierarchy of the bank. More specifically, homophily is negatively associated with performance for bankers in the higher levels of the formal and informal hierarchy whereas the association is either positive or nonexistent for lower hierarchical levels.","PeriodicalId":93599,"journal":{"name":"Organization science (Providence, R.I.)","volume":"39 1","pages":"912-930"},"PeriodicalIF":0.0,"publicationDate":"2018-06-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77694863","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Travis J. Grosser, David Obstfeld, Emily W. Choi, Meredith L. Woehler, Virginie Kidwell-Lopez, G. Labianca, S. Borgatti
We adopt a sociopolitical perspective to examine how an employee’s political skill works in conjunction with social network structure to relate to the employee’s innovation involvement and job perf...
{"title":"A Sociopolitical Perspective on Employee Innovativeness and Job Performance: The Role of Political Skill and Network Structure","authors":"Travis J. Grosser, David Obstfeld, Emily W. Choi, Meredith L. Woehler, Virginie Kidwell-Lopez, G. Labianca, S. Borgatti","doi":"10.1287/ORSC.2017.1201","DOIUrl":"https://doi.org/10.1287/ORSC.2017.1201","url":null,"abstract":"We adopt a sociopolitical perspective to examine how an employee’s political skill works in conjunction with social network structure to relate to the employee’s innovation involvement and job perf...","PeriodicalId":93599,"journal":{"name":"Organization science (Providence, R.I.)","volume":"376 1","pages":"612-632"},"PeriodicalIF":0.0,"publicationDate":"2018-06-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84945937","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
How do firms benefit from employees with transferable skills? The prevailing view is that labor market frictions that impede employee mobility or strategies that constrain skill transferability are the primary instruments for firms to appropriate value from human capital. The empirical evidence, however, suggests that employees continue to be mobile, and firms pay premiums to attract and retain employees with transferable skills. To reconcile theory with data, we use data from the mutual-fund industry, where it is widely documented that active fund managers appropriate more value than they generate. We develop a theory of positive externalities stemming from transferable human capital that we argue accrue mostly to the firm, and provide evidence of such externalities in the mutual fund context. Empirically, we decompose the skills of mutual-fund managers into task- and firm-specific components, and argue that managers with taskspecific skills generate positive externalities at the firm level that are not reflected in their performance measured at the fund level. We advance and test empirical hypotheses on the existence of these positive unmeasured externalities by examining whether managers with task-specific skills are more likely to be associated with activities such as mentoring, increased risk taking, and generating spillovers at the firm level. Our results show that managers with task-specific skills are indeed associated with greater positive externalities, compared with managers with firm-specific skills. We discuss the implications of our results for the literature on human-capital value creation and appropriation.
{"title":"How Do Firms Appropriate Value from Employees with Transferable Skills? A Study of the Appropriation Puzzle in Actively Managed Mutual Funds","authors":"V. Sevcenko, Sendil K. Ethiraj","doi":"10.1287/orsc.2017.1197","DOIUrl":"https://doi.org/10.1287/orsc.2017.1197","url":null,"abstract":"How do firms benefit from employees with transferable skills? The prevailing view is that labor market frictions that impede employee mobility or strategies that constrain skill transferability are the primary instruments for firms to appropriate value from human capital. The empirical evidence, however, suggests that employees continue to be mobile, and firms pay premiums to attract and retain employees with transferable skills. To reconcile theory with data, we use data from the mutual-fund industry, where it is widely documented that active fund managers appropriate more value than they generate. We develop a theory of positive externalities stemming from transferable human capital that we argue accrue mostly to the firm, and provide evidence of such externalities in the mutual fund context. Empirically, we decompose the skills of mutual-fund managers into task- and firm-specific components, and argue that managers with taskspecific skills generate positive externalities at the firm level that are not reflected in their performance measured at the fund level. We advance and test empirical hypotheses on the existence of these positive unmeasured externalities by examining whether managers with task-specific skills are more likely to be associated with activities such as mentoring, increased risk taking, and generating spillovers at the firm level. \u0000Our results show that managers with task-specific skills are indeed associated with greater positive externalities, compared with managers with firm-specific skills. We discuss the implications of our results for the literature on human-capital value creation and appropriation.","PeriodicalId":93599,"journal":{"name":"Organization science (Providence, R.I.)","volume":"92 1","pages":"775-795"},"PeriodicalIF":0.0,"publicationDate":"2018-06-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85877688","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
When a serious failure occurs within a population of organizations, members of individual organizations in the population attempt to learn vicariously from the event so that future failures may be ...
{"title":"No Firm Is an Island: The Role of Population-Level Actors in Organizational Learning from Failure","authors":"Peter M. Madsen, V. Desai","doi":"10.1287/ORSC.2017.1199","DOIUrl":"https://doi.org/10.1287/ORSC.2017.1199","url":null,"abstract":"When a serious failure occurs within a population of organizations, members of individual organizations in the population attempt to learn vicariously from the event so that future failures may be ...","PeriodicalId":93599,"journal":{"name":"Organization science (Providence, R.I.)","volume":"49 1","pages":"739-753"},"PeriodicalIF":0.0,"publicationDate":"2018-05-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89982088","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Firms often need to acquire external financial resources to maintain and develop their business. To attract these resources, firms employ various substantive and rhetorical signals, such as publish...
{"title":"Extending Signaling Theory to Rhetorical Signals: Evidence from Crowdfunding","authors":"N. Steigenberger, Hendrik Wilhelm","doi":"10.1287/orsc.2017.1195","DOIUrl":"https://doi.org/10.1287/orsc.2017.1195","url":null,"abstract":"Firms often need to acquire external financial resources to maintain and develop their business. To attract these resources, firms employ various substantive and rhetorical signals, such as publish...","PeriodicalId":93599,"journal":{"name":"Organization science (Providence, R.I.)","volume":"120 1","pages":"529-546"},"PeriodicalIF":0.0,"publicationDate":"2018-05-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87722477","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper explores the attention regulation challenges brought by interruptions. In contrast to much of the research on interruptions that looks at the effects on the interrupted task, this paper examines the difficulty of focusing attention and performing well on interrupting tasks. Integrating research on attention residue, time pressure, and implementation intention, we predict that when people anticipate resuming their interrupted work under time pressure, they will find it difficult to switch their attention to the interrupting task, leading to attention residue and low performance. A ready-to-resume intervention, in which one briefly reflects on and plans one’s return to the interrupted task, mitigates this effect such that attention residue is reduced and performance on the interrupting task does not suffer. Data collected across four studies support these hypotheses. The e-companion is available at https://doi.org/10.1287/orsc.2017.1184.
{"title":"Tasks Interrupted: How Anticipating Time Pressure on Resumption of an Interrupted Task Causes Attention Residue and Low Performance on Interrupting Tasks and How a \"Ready-to-Resume\" Plan Mitigates the Effects","authors":"Sophie Leroy, Theresa M. Glomb","doi":"10.1287/orsc.2017.1184","DOIUrl":"https://doi.org/10.1287/orsc.2017.1184","url":null,"abstract":"This paper explores the attention regulation challenges brought by interruptions. In contrast to much of the research on interruptions that looks at the effects on the interrupted task, this paper examines the difficulty of focusing attention and performing well on interrupting tasks. Integrating research on attention residue, time pressure, and implementation intention, we predict that when people anticipate resuming their interrupted work under time pressure, they will find it difficult to switch their attention to the interrupting task, leading to attention residue and low performance. A ready-to-resume intervention, in which one briefly reflects on and plans one’s return to the interrupted task, mitigates this effect such that attention residue is reduced and performance on the interrupting task does not suffer. Data collected across four studies support these hypotheses. The e-companion is available at https://doi.org/10.1287/orsc.2017.1184.","PeriodicalId":93599,"journal":{"name":"Organization science (Providence, R.I.)","volume":"47 1","pages":"380-397"},"PeriodicalIF":0.0,"publicationDate":"2018-05-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75166105","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We study the evolution of firms’ exploration–exploitation allocations and their long-term performance outcomes. Extending current ambidexterity theory, we suggest that not only firms pursuing one-sided exploration or exploitation orientations show self-reinforcing tendencies but also ambidextrous firms adopting balanced exploration–exploitation orientations. Integrating formal modeling arguments, we further propose that reinforcing ambidexterity can be good or bad for firms’ long-term performance, depending on the environment they face: In contexts characterized by incremental change, firms benefit more from the learning effects of maintaining ambidexterity, which lead to superior performance. Firms in discontinuous change contexts, however, suffer more from the misalignment that reinforcement creates, which affects their performance negatively. A longitudinal data set of global insurance firms (1999–2014) supports our arguments. Building on these findings, we reconceptualize ambidexterity as the ability to dynamically balance exploration and exploitation, which emerges from combining capability-building processes (to balance exploration and exploitation) with capability-shifting processes (to adapt the exploration–exploitation balance). We contribute to the organizational literature by developing a dynamic perspective on balancing exploration and exploitation, by clarifying the contingent nature of the ambidexterity–firm performance relationship, and by integrating and extending the ambidexterity and formal modeling perspectives on exploration and exploitation.
{"title":"Dynamic Balancing of Exploration and Exploitation: The Contingent Benefits of Ambidexterity","authors":"Johannes Luger, Sebastian Raisch, Markus Schimmer","doi":"10.1287/orsc.2017.1189","DOIUrl":"https://doi.org/10.1287/orsc.2017.1189","url":null,"abstract":"We study the evolution of firms’ exploration–exploitation allocations and their long-term performance outcomes. Extending current ambidexterity theory, we suggest that not only firms pursuing one-sided exploration or exploitation orientations show self-reinforcing tendencies but also ambidextrous firms adopting balanced exploration–exploitation orientations. Integrating formal modeling arguments, we further propose that reinforcing ambidexterity can be good or bad for firms’ long-term performance, depending on the environment they face: In contexts characterized by incremental change, firms benefit more from the learning effects of maintaining ambidexterity, which lead to superior performance. Firms in discontinuous change contexts, however, suffer more from the misalignment that reinforcement creates, which affects their performance negatively. A longitudinal data set of global insurance firms (1999–2014) supports our arguments. Building on these findings, we reconceptualize ambidexterity as the ability to dynamically balance exploration and exploitation, which emerges from combining capability-building processes (to balance exploration and exploitation) with capability-shifting processes (to adapt the exploration–exploitation balance). We contribute to the organizational literature by developing a dynamic perspective on balancing exploration and exploitation, by clarifying the contingent nature of the ambidexterity–firm performance relationship, and by integrating and extending the ambidexterity and formal modeling perspectives on exploration and exploitation.","PeriodicalId":93599,"journal":{"name":"Organization science (Providence, R.I.)","volume":"69 1","pages":"449-470"},"PeriodicalIF":0.0,"publicationDate":"2018-05-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77236512","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In response to recent calls for theory to predict and explain the phenomenon of “meta-organizations,” we set out to identify the causes of their formation. Using a cross-case comparison of multiple case studies in sub-Saharan Africa, where nine focal firms varied in their response to the complexities of sustainability, we examined how and why some firms approached sustainability through a meta-organization while others did not. Our findings show that meta-organizations may be an effective means of managing the complexity of sustainability when participants exhibit an openness to innovative forms of collaboration—which, in turn, rests on complex systems framing and experiential embeddedness—and when they collectively undergo a four-stage process of meta-organization formation that transforms dormant resources into critical sources for achieving systemic goals. Our results also suggest that meta-organizations may be particularly well suited to addressing institutional and market voids, which typically const...
{"title":"Meta-Organization Formation and Sustainability in Sub-Saharan Africa","authors":"M. Valente, C. Oliver","doi":"10.1287/orsc.2017.1191","DOIUrl":"https://doi.org/10.1287/orsc.2017.1191","url":null,"abstract":"In response to recent calls for theory to predict and explain the phenomenon of “meta-organizations,” we set out to identify the causes of their formation. Using a cross-case comparison of multiple case studies in sub-Saharan Africa, where nine focal firms varied in their response to the complexities of sustainability, we examined how and why some firms approached sustainability through a meta-organization while others did not. Our findings show that meta-organizations may be an effective means of managing the complexity of sustainability when participants exhibit an openness to innovative forms of collaboration—which, in turn, rests on complex systems framing and experiential embeddedness—and when they collectively undergo a four-stage process of meta-organization formation that transforms dormant resources into critical sources for achieving systemic goals. Our results also suggest that meta-organizations may be particularly well suited to addressing institutional and market voids, which typically const...","PeriodicalId":93599,"journal":{"name":"Organization science (Providence, R.I.)","volume":"30 1","pages":"678-701"},"PeriodicalIF":0.0,"publicationDate":"2018-05-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90787927","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Eric Zhao, Masakazu Ishihara, P. Jennings, M. Lounsbury
In this paper, we develop an exemplar-based model of the emergence and evolution of proto-categories—new groupings of products that are only weakly entrenched but have the potential to become widel...
{"title":"Optimal Distinctiveness in the Console Video Game Industry: An Exemplar-Based Model of Proto-Category Evolution","authors":"Eric Zhao, Masakazu Ishihara, P. Jennings, M. Lounsbury","doi":"10.1287/orsc.2017.1194","DOIUrl":"https://doi.org/10.1287/orsc.2017.1194","url":null,"abstract":"In this paper, we develop an exemplar-based model of the emergence and evolution of proto-categories—new groupings of products that are only weakly entrenched but have the potential to become widel...","PeriodicalId":93599,"journal":{"name":"Organization science (Providence, R.I.)","volume":"93 1","pages":"588-611"},"PeriodicalIF":0.0,"publicationDate":"2018-05-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76621712","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In today’s uncertain and dynamic market environment, the need for organizational structures that can respond to persistent improvement in organizational processes is more critical than ever. Curren...
{"title":"An Analysis of Organizational Structure in Process Variation","authors":"Dingyu Zhang, N. Bhuiyan, Linghua Kong","doi":"10.1287/orsc.2017.1192","DOIUrl":"https://doi.org/10.1287/orsc.2017.1192","url":null,"abstract":"In today’s uncertain and dynamic market environment, the need for organizational structures that can respond to persistent improvement in organizational processes is more critical than ever. Curren...","PeriodicalId":93599,"journal":{"name":"Organization science (Providence, R.I.)","volume":"74 1","pages":"722-738"},"PeriodicalIF":0.0,"publicationDate":"2018-05-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85814395","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}