On a distinction between casual and formative variable models:theoretical issues and practical implications for organizational researchers

Formative measurement has seen increasing acceptance in organizational research since the turn of the 21st Century. However, in more recent times, a number of criticisms of the formative approach have appeared. Such work argues that formatively-measured constructs are empirically ambiguous and thus flawed in a theory-testing context. The aim of the present paper is to examine the underpinnings of formative measurement theory in light of theories of causality and ontology in measurement in general. In doing so, a thesis is advanced which draws a distinction between reflective, formative, and causal theories of latent variables. This distinction is shown to be advantageous in that it clarifies the ontological status of each type of latent variable, and thus provides advice on appropriate conceptualization and application. The distinction also reconciles in part both recent supportive and critical perspectives on formative measurement. In light of this, advice is given on how most appropriately to model formative composites in theory-testing applications, placing the onus on the researcher to make clear their conceptualization and operationalisation.

Challenging the predictive ability of accounting techniques in modelling organizational futures

This article considers the role of accounting in organisational decision making. It challenges the rational nature of decisions made in organisations through the use of accounting models and the problems of predicting the future through the use of such models. The use of accounting in this manner is evaluated from an epochal postmodern stance. Issues raised by chaos theory and the uncertainty principle are used to demonstrate problems with the predictive ability of accounting models. The authors argue that any consideration of the predictive value of accounting needs to change to incorporate a recognition of the turbulent external environment, if it is to be of use for organisational decision making. Thus it is argued that the role of accounting as a mechanism for knowledge creation regarding the future is fundamentally flawed. We take this as a starting-point to argue for the real purpose of the use of the predictive techniques of accounting, using its ritualistic role in the context of myth creation to argue for the cultural benefits of the use of such flawed techniques.

Organizational citizenship behavior and organizational commitment in Nepal

The present study examines the structure of organizational citizenship behavior (OCB) and its relation to organizational commitment in Nepal. Four-hundred and fifty employees of five Nepalese organizations filled out standardized questionnaires. Exploratory and confirmatory factor analyses revealed two factors of OCB, altruism and compliance, replicating Western models of extra-role behavior. Structural equation analysis showed a positive relation between affective and normative commitment on the one hand and both citizenship factors on the other. Continuance commitment was negatively related to compliance and unrelated to altruism. The findings thus confirmed the structure and usefulness of the concepts in an under-researched geographical area. Findings of the research are discussed within the Nepalese sociocultural context. © Blackwell Publishing Ltd with the Asian Association of Social Psychology and the Japanese Group Dynamics Association 2005.

Constructing institutional change: emergence, contestation and convergence of business models in the field of Java application servers

How are innovative new business models established if organizations constantly compare themselves against existing criteria and expectations? The objective is to address this question from the perspective of innovators and their ability to redefine established expectations and evaluation criteria. The research questions ask whether there are discernible patterns of discursive action through which innovators theorize institutional change and what role such theorizations play for mobilizing support and realizing change projects. These questions are investigated through a case study on a critical area of enterprise computing software, Java application servers. In the present case, business practices and models were already well established among incumbents with critical market areas allocated to few dominant firms. Fringe players started experimenting with a new business approach of selling services around freely available opensource application servers. While most new players struggled, one new entrant succeeded in leading incumbents to adopt and compete on the new model. The case demonstrates that innovative and substantially new models and practices are established in organizational fields when innovators are able to refine expectations and evaluation criteria within an organisational field. The study addresses the theoretical paradox of embedded agency. Actors who are embedded in prevailing institutional logics and structures find it hard to perceive potentially disruptive opportunities that fall outside existing ways of doing things. Changing prevailing institutional logics and structures requires strategic and institutional work aimed at overcoming barriers to innovation. The study addresses this problem through the lens of (new) institutional theory. This discourse methodology traces the process through which innovators were able to establish a new social and business model in the field.

Overcoming network overload and redundancy in inter-organizational networks:the roles of potential and latent ties

This paper builds on Granovetter's distinction between strong and weak ties [Granovetter, M. S. 1973. The strength of weak ties. Amer. J. Sociol. 78(6) 1360–1380] in order to respond to recent calls for a more dynamic and processual understanding of networks. The concepts of potential and latent tie are deductively identified, and their implications for understanding how and why networks emerge, evolve, and change are explored. A longitudinal empirical study conducted with companies operating in the European motorsport industry reveals that firms take strategic actions to search for potential ties and reactivate latent ties in order to solve problems of network redundancy and overload. Examples are given, and their characteristics are examined to provide theoretical elaboration of the relationship between the types of tie and network evolution. These conceptual and empirical insights move understanding of the managerial challenge of building effective networks beyond static structural contingency models of optimal network forms to highlight the processes and capabilities of dynamic relationship building and network development. In so doing, this paper highlights the interrelationship between search and redundancy and the scope for strategic action alongside path dependence and structural influences on network processes.

Creativity and innovation:the role of team and organizational climate

This chapter argues that creative, innovative organizations are places where there is a firm and shared belief among most members in an inspirational vision of what the organization is trying to achieve. There is a high level of interaction, discussion, constructive debate, and influence among the members of the organization as they go about their work. Trust, cooperative orientations, and a sense of interpersonal safety characterize interpersonal and intergroup relationships. Members of the organization, particularly those at the upper echelons (and there are few echelons) are consistently positive and open to members' ideas for new and improved ways of working, providing both encouragement and the resources for innovation. Creativity is heralded as key for organizational survival and success. As global economic models become the norm and competitiveness assumes an international character, leaders realize that, in order to prosper in a highly challenging environment, companies must innovate. The source of organizational innovation is unquestionably the ideas generated by individuals and teams. © 2012 Elsevier Inc. All rights reserved.

The effect of transformational leadership and regulatory effect on creativity:testing two competitive models

Presentation of an abstract

Making the organization fly:organizational identification and citizenship in full-service and low-cost airlines

Recently, the service industry has seen a low-cost sector emerge alongside the traditional full-service sector. We explored whether these business models have different implications for employee cooperation, one factor that plays an important role in organizational functioning. Drawing on the social identity perspective, we argue that employees will identify less strongly with the lower-status, low-cost organizations, reducing their intrinsic motivation for such cooperation. We tested these relationships among employees in Thailand's airline industry. In line with expectations, flight attendants working for low-cost airlines (N = 77) perceived their organizations to have lower status than those working for the full-service airlines (N = 77), and this was associated with reduced organizational identification. This in turn predicted lower levels of organizational citizenship behaviour and a stronger desire for organizational exit. © 2010 Hogrefe Publishing.