Long-Term Reward Patterns Contribute to Personal Goals at Work Among Finnish Managers

The research addresses the impact of long-term reward patterns on contents of personal work goals among young Finnish managers (N = 747). Reward patterns were formed on the basis of perceived and objective career rewards (i.e., career stability and promotions) across four measurements (years 2006 –2012). Goals were measured in 2012 and classified into categories of competence, progression, well-being, job change, job security, organization, and financial goals. The factor mixture analysis identified a three-class solution as the best model of reward patterns: High rewards (77%); Increasing rewards (17%); and Reducing rewards (7%). Participants with Reducing rewards reported more progression, well-being, job change and financial goals than participants with High rewards as well as fewer competence and organizational goals than participants with Increasing rewards. Workplace resources can be in a key role in facilitating goals towards building competence and organizational performance.

The impact of time limitation: insights from a queueing experiment

We experimentally explore the effects of time limitation on decision making. Under different time allowance conditions, subjects are presented with a queueing situation and asked to join one of the two given queues. The results can be grouped under two main categories. The first one concerns the factors driving decisions in a queueing system. Only some subjects behave consistently with rationality principles and use the relevant information efficiently. The rest of the subjects seem to adopt a simpler strategy that does not incorporate some information into their decision. The second category is related to the effects of time limitation on decision performance. A substantial proportion of the population is not affected by time limitations and shows consistent behavior throughout the treatments. On the other hand, some subjects’ performance is impaired by time limitations. More importantly, this impairment is not due to the stringency of the limitation but rather to being exposed to a time constraint.

Euphoria in financial markets: how Indian companies generate value in their cross-border acquisitions

In this paper, we investigate the effect of euphoria on returns derived by Indian companies in their cross-border acquisitions. Cognitive legitimacy generated at the country level facilitated firms in deriving higher value from internationalization. In addition, overoptimism after the legitimacy-building event led to euphoria in financial markets and short-term abnormal returns. Hence we argue that the springboard effect created by legitimacy is short-lived, as euphoria fades away over time. Using cross-border and domestic acquisitions by Indian companies during 1999-2009, and controlling for fundamental factors, both financial and non-financial, we find support for our euphoria hypothesis. Because of overoptimism, Indian companies experienced short-term abnormal returns in their cross-border acquisitions in the few years following the legitimation process, but not in later years.

The effects of conflict in driving forward innovation in shared leadership management consultant teams

It is argued in this study that current investigations of the role of conflict in shared leadership teams and, thus, teams in which all members have the opportunity to participate in its decision-making process are insufficient as they have focused on the downsides of these conflicts. This study demonstrates that task conflict is beneficial in that it can have positive effects on innovation in teams. It shows that particularly in shared leadership management consultant teams task conflict can stimulate innovation. Therefore, this research investigates the relationships among shared leadership, conflict and innovation. The research develops and empirically tests a conceptual model which demonstrates the relationships between these concepts and for which the inclusion of multiple research methods was essential. The sequential explanatory approach included a combination of quantitative and qualitative methods, the order of which can be adapted for other domains of application. The conceptual model was first tested with a sample of 329 management consultants. This was followed by 25, in-depth, face-to-face interviews conducted with individual survey respondents. In addition, weekly meetings of a management consultant team in action were video recorded over several months. This allowed for an in-depth explanation of the findings from the survey by providing an understanding of the underlying processes. The inclusion of observational methods provided a validating role and explained how and why conflicts contributed to the development of team innovation, through the analysis of subtleties and fleeting disagreements in a real-life management consultant team. The results deliver an assessment of the theoretical model and demonstrate that task conflict can allow for additional innovation in management consultant teams operating under a shared leadership structure. A practical model and guidelines for management consultant teams wanting to enhance their innovatory capacities are provided. In addition, a novel-user methodology which includes video observations is developed, with recommendations and steps aiding researchers aiming to employ a similar combination of methods. An original contribution to knowledge is made regarding the positive effects that task conflict can have towards innovation in shared leadership teams. Collaboration and trust are identified as important mediators between shared leadership and task conflict and significant regarding the development of innovation. The effectiveness of shared leadership in reducing negative relationship conflict and the benefits of both shared leadership and task conflict in enhancing innovation are demonstrated.

Can a Common Currency Foster a Shared Social Identity across Different Nations? The Case of the Euro

Fostering the emergence of a "European identity" was one of the declared goals of the euro adoption. Now, years after the physical introduction of the common currency, we assess whether there has been an effect on a shared European identity. We use two different datasets in order to assess the impact of the euro adoption on the fostering of a self-declared "European Identity". We find that the effect of the euro is statistically insignificant although it is precisely estimated. This result holds important implications for European policy makers. It also sheds new light on the formation of social identities.

Social Media Strategies in the Retail Sector: Analysis and Recommendations for Three Multi-National Retailers

During the last twenty years (1995-2015), the world of commerce has expanded beyond the traditional brick-and-mortar high street to a global shop front accessible to billions of users via the Worldwide Web (WWW). Consumers are now using the web to immerse themselves in virtual shop fronts, using Social Media (SM) to communicate and share product ideas with friends and family. Retail organisations recognise the need to develop and adapt their strategies to respond to the increasing use of SM. New goals must be set in order to identify how companies will integrate social media into current practices. This research aims to suggest an advisable and comprehensive SM strategy for companies operating in the global retail sector, based on an exploratory analysis of three multi-national retail organisations' existing SM strategies. This will be assessed in conjunction with a broader investigation into social media in the retail industry. From this, a strategy will be devised to improve internal and external communication as well as knowledge management through the use of social media. Findings suggest that the use of SM within the retail industry has dramatically improved collaboration and communication processes for organisations as they are now able to converse better with stakeholders and the tools are relatively simple to integrate and implement as they benefit one another.

A Social Networking Strategy for Improving Knowledge Management and Communication in the Travel Industry

In today’s technology-driven marketplace, the adoption and management of corporate and customer-facing Social Networking Sites (SNs) is often viewed as a key success factor for Travel Industry (TI) organisations. Knowledge management and the sharing of expertise and experiences through communication between internal and external stakeholders via social networks is an activity which TI organisations are aiming to exploit in order to improve the open sharing, retrieval, organisation and leveraging of knowledge. Through a study of currently-available literature relating to social networking adoption within the TI and a case study analysis of corporate social networking practices at three multi-national TI organisations (British Airways, Thomas Cook and Marriott Hotels), it may be observed that correlations exist between the development of social networking and the processes TI organisations now use to manage knowledge. We explore how these companies are currently utilizing SNs to improve knowledge management practices inside and outside of their organisational boundaries. From our analysis, lessons may emerge as to how TI companies are gaining competitive advantage through the use of social networking; a proposed strategy is identified to determine how TI organisations may make best use of social networks.

Enhancing Knowledge Acquisition in Pharmaceutical Organisations based in Pakistan

Absorptive Capacity (ACAP) depicts the sequential order of activities connecting externally generated knowledge into an organisation; this involves a company’s ability to acquire new knowledge from an external source, assimilate and transform it, and eventually exploit it via its industrial processes and products/services. The sandwiched role of middle managers, being interlinked between decision makers and employees, has been argued as vital to organisational success. However, their role is often viewed as having conflicts astride management i.e. between employees and decision makers. This study, using a thematic analysis approach, explores and identifies the common and conflicting role of middle managers, as viewed by different respondents in organisational hierarchies. Results, based on a sample of 33 employees operating in the Pakistan Pharmaceutical sector, indicate that conflicting roles of middle managers also persist with more common roles in organisations.

Multivariate Appoximations to Portfolio Return Distribution

This article proposes a three-step procedure to estimate portfolio return distributions under the multivariate Gram-Charlier (MGC) distribution. The method combines quasi maximum likelihood (QML) estimation for conditional means and variances and the method of moments (MM) estimation for the rest of the density parameters, including the correlation coefficients. The procedure involves consistent estimates even under density misspecification and solves the so-called ‘curse of dimensionality’ of multivariate modelling. Furthermore, the use of a MGC distribution represents a flexible and general approximation to the true distribution of portfolio returns and accounts for all its empirical regularities. An application of such procedure is performed for a portfolio composed of three European indices as an illustration. The MM estimation of the MGC (MGC-MM) is compared with the traditional maximum likelihood of both the MGC and multivariate Student’s t (benchmark) densities. A simulation on Value-at-Risk (VaR) performance for an equally weighted portfolio at 1% and 5% confidence indicates that the MGC-MM method provides reasonable approximations to the true empirical VaR. Therefore, the procedure seems to be a useful tool for risk managers and practitioners.

Partner selection for reverse logistics centres in green supply chains: a fuzzy artificial immune optimization approach

The design of reverse logistics networks has now emerged as a major issue for manufacturers, not only in developed countries where legislation and societal pressures are strong, but also in developing countries where the adoption of reverse logistics practices may offer a competitive advantage. This paper presents a new model for partner selection for reverse logistic centres in green supply chains. The model offers three advantages. Firstly, it enables economic, environment, and social factors to be considered simultaneously. Secondly, by integrating fuzzy set theory and artificial immune optimization technology, it enables both quantitative and qualitative criteria to be considered simultaneously throughout the whole decision-making process. Thirdly, it extends the flat criteria structure for partner selection evaluation for reverse logistics centres to the more suitable hierarchy structure. The applicability of the model is demonstrated by means of an empirical application based on data from a Chinese electronic equipment and instruments manufacturing company.

Natural disasters and university enrolment: Evidence from L’Aquila earthquake

Although there are several studies looking at the effect of natural disasters on economic growth, less attention has been dedicated to their impact on educational outcomes, especially in more developed countries. We use the synthetic control method to examine how the L’Aquila earthquake affected subsequent enrolment at the local university. This issue has wide economic implications as the University of L’Aquila made a large contribution to the local economy before the earthquake. Our results indicate that the earthquake had no statistically significant effect on first-year enrolment at the University of L’Aquila in the three academic years after the disaster. This natural disaster, however, caused a compositional change in the first-year student population, with a substantial increase in the number of students aged 21 or above. This is likely to have been driven by post-disaster measures adopted in order to mitigate the expected negative effects on enrolment triggered by the earthquake.

Examining guest chefs’ influences on luxury restaurants’ images

Highlights: • A guest chef's image positively influences a luxury restaurant's image. • The restaurant-guest chef fit positively influences a luxury restaurant's image. • The restaurant-guest chef fit moderates the relationship between a guest chef's image and a luxury restaurant's image.

Risk Preferences and the Role of Emotions

There is a large volume of research showing that emotions have relevant effects on decision-making. We contribute to this literature by experimentally investigating the impact of four specific emotional states - joviality, sadness, fear, and anger - on risk attitudes. In order to do so, we fit two models of behavior under risk: the Expected Utility model (EU) and the Rank Dependent Expected Utility model (RDEU), assuming several functional forms of the weighting function. Our results indicate that all emotional states mitigate risk aversion. Furthermore, we show that there are some differences across gender and participants' experience in laboratory experiments.

The effects of trade show environments on visitors

Tourism trade shows that are open to the public as well as to buyers and sellers are an emerging channel for the promotion of products to potential tourists. However, few studies have explored the influence of environmental stimuli on non-business visitors’ emotions. Moreover, the moderating effect of visitors’ expectations remains under-studied in the context of trade show management. To address this issue, this study reports on research derived from 611 respondents at a Taiwanese tourism trade show through a modified Mehrabian-Russell model. Structural equation modeling of the data shows that positive emotions positively influence behavioral intentions, but negative emotions do not negatively influence behavioral intentions. Among the three stimuli (i.e., information rate, service staff quality, and atmospherics), only information rate and service staff quality positively affect positive emotions and negatively affect negative emotions. The results show that visitors with high and low trade show visit expectations react differently to environmental stimuli at trade shows.

Pure higher-order effects in the portfolio choice model

This paper examines the effects of higher-order risk attitudes and statistical moments on the optimal allocation of risky assets within the standard portfolio choice model. We derive the expressions for the optimal proportion of wealth invested in the risky asset to show they are functions of portfolio returns third- and fourth-order moments as well as on the investor’s risk preferences of prudence and temperance. We illustrate the relative importance that the introduction of those higher-order effects have in the decision of expected utility maximizers using data for the US.