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volume 33, issue 2, mar/apr 2022
1. title: cooperation beyond the network.
authors: burt, ronald s.; opper, sonja; holm, h�kan j.
abstract: it is well known in economics, law, and sociology that reputation costs in a closed network give insiders a feeling of being protected from bad behavior in their relations with one another. a person accustomed to doing business within a closed network is, therefore, likely to feel at unusual risk when asked to cooperate beyond the network because of absent reputation-cost security. it follows that business leaders in more closed networks should be less likely to cooperate beyond their network (hypothesis 1). success reinforces the status quo. business leaders successful with a closed network associate their success with the safety of their network, so they should be even less likely to cooperate with a stranger (hypothesis 2). we combine network data from a heterogeneous area probability survey of chinese ceos with a behavioral measure of cooperation to show strong empirical support for the two hypotheses. ceos in more closed networks are less likely to cooperate beyond their network, especially those running successful businesses: successful ceos in closed networks are particularly likely to defect against people beyond their network. the work contributes to a growing literature linking network structure with behavior: here, the closure that facilitates trust and cooperation within a network simultaneously erodes the probability of cooperation beyond the network, thereby reinforcing a social boundary around the network. taking our results as a baseline, we close sketching new research on personality, homophily, network dynamics, and variation in the meaning of "beyond the network."
2. title: client-related factors and collaboration between human assets.
authors: mawdsley, john k.; meyer-doyle, philipp; chatain, olivier.
abstract: collaborations between individuals in firms have important implications for the development of relational and human capital. in knowledge-intensive contexts where collaborations are formed to deliver services to clients, collaboration decisions can involve nontrivial tradeoffs between short-term and long-term benefits: individuals and firms must carefully manage the tradeoffs between leveraging existing relational and human capital for the reliable performance of repeat collaboration and creating new relational and human capital through new collaboration. building from the premise that servicing clients is central to collaboration decisions in human asset�intensive firms, we examine how client-related factors shape collaboration decisions among lawyers (partners) in uk law firms providing m&a legal advisory services. we focus on three key client-related dimensions that we predict govern collaboration decisions: the depth of individual- and firm-level relationships with the focal client, key client attributes that reflect the client's status and its use of different firms to undertake its outsourced work, and client-driven individual- and firm-level resource constraint. our empirical findings support our proposition that client-related factors influence the pattern of collaborations between individuals in firms. we also reveal how client-related factors at the individual level can have opposite effects on collaboration decisions from those at the firm level. overall, our findings contribute to research on relational capital, strategic human capital, team formation, professional service firms, and the microfoundations of strategy.
3. title: uncovering the mitigating psychological response to monitoring technologies: police body cameras not only constrain but also depolarize.
authors: patil, shefali v.; bernstein, ethan s.
abstract: despite organizational psychologists' long-standing caution against monitoring (citing its reduction in employee autonomy and thus effectiveness), many organizations continue to use it, often with no detriment to performance and with strong support, not protest, from employees. we argue that a critical step to resolving this anomaly is revisiting researchers' fundamental assumptions about access to gathered data. whereas previous research assumes that access resides nearly exclusively with supervisors and other evaluators, technological advances have enabled employee access. we hypothesize that with employee access, the psychological effects of monitoring may be far more complex than previously acknowledged. whereas multiparty access may still decrease employee autonomy, it may also trigger an important psychological benefit: alleviating employees' perceptions of polarization�the increasing social and ideological divergence between themselves and their evaluators. access gives employees unprecedented opportunities to use the "objective" footage to show others their perspective, address evaluators' erroneous assumptions and stereotypes, and otherwise defuse ideological tensions. lower perceived polarization, in turn, attenuates the negative effects that low autonomy would otherwise have on employee effectiveness. we find support for these hypotheses across three field studies conducted in the law enforcement context, which has been a trailblazer in using technological advances to grant broad access to multiple parties, including employees. overall, our studies shed light on the conflicting (and ultimately more innocuous) impact of monitoring and encourage scholars to break from prior approaches to account for its increasing egalitarianism.
4. title: local adaptation without work intensification: experimentalist governance of digital technology for mutually beneficial role reconfiguration in organizations.
authors: kellogg, katherine c.
abstract: this 1.5-year ethnographic study of a u.s. medical center shows that avoiding loss of autonomy and work intensification for less powerful actors during digital technology introduction and integration presents a multisited collective action challenge. i found that technology-related participation problems, threshold problems, and free rider problems may arise during digital technology introduction and integration that enable loss of autonomy and work intensification for less powerful actors. however, the emergence of new triangles of power allows for novel coalitions between less powerful actors and newly powerful third-party actors that can help mitigate this problem. i extend the political science perspective of experimentalist governance to examine how a digital technology-focused, iterative collective action process of local experimentation followed by central revision can facilitate mutually beneficial role reconfiguration during digital technology introduction and integration. in experimentalist governance of digital technology, local units are given discretion to adapt digital technologies to their specific contexts. a central unit composed of diverse actors then reviews progress across local units integrating similar digital technology to negotiate a new shared understanding of mutually beneficial technology-related tasks for each group of actors. the central unit modifies both local routines and the technology itself in response to problems and possibilities revealed by the central revision process, and the cycle repeats. here, accomplishing mutually beneficial role reconfiguration occurs through an experimentalist, collective action process rather than through a labor-management bargaining process or a professional-led tuning process.
5. title: the creative and cross-functional benefits of wearing hearts on sleeves: authentic affect climate, information elaboration, and team creativity.
authors: parke, michael r.; seo, myeong-gu; hu, xiaoran; jin, sirkwoo.
abstract: team creative processes of generating and elaborating ideas tend to be laden with emotional expressions and communication. yet, there is a noticeable lack of theory on how differences in teams' management and support of affect expressions influence their ability to produce creative outcomes. we investigate why and when team authentic affect climates, which encourage members to share and respond to authentic affect, generate greater creativity compared with more constrained affect climates where members suppress or hide their genuine feelings. we propose that authentic affect climate enhances team creativity through greater information elaboration by the team and that these informational and creative benefits are more likely in functionally diverse teams. results from three complementary studies�one multisource field study of management teams and two experiments�provide support for our predictions. in our experiments, we also examine the theorized affective mechanisms and find that authentic affect climate increases information elaboration and creativity through members' affect expressions (study 2) and empathic responses to each other's expressed affect (studies 2 and 3). we discuss the implications of our findings for the team creativity, diversity, and affect literatures.
6. title: category evolution under conditions of stigma: the segregation of abortion provision into specialist clinics in the united states.
authors: augustine, grace l.; piazza, alessandro.
abstract: organizational involvement in stigmatized practices, that is, practices that attract substantial societal condemnation, is often challenging, inasmuch as it requires the successful management of stakeholder disapproval. in this regard, existing work on organizational stigma has highlighted the advantages of situating stigmatized practices within large, generalist organizations, because doing so allows for stigma dilution�that is, organizations can reduce stakeholder disapproval by increasing their relative engagement in uncontested practices, thereby straddling multiple categories in the eyes of audiences. this line of argument, however, runs counter to the empirical observation that stigmatized practices often remain overwhelmingly concentrated within smaller, specialist organizations, even though these are often not optimally positioned to cope with stigma. in this paper, therefore, we undertake an in-depth historical analysis of a revelatory case�abortion provision in the united states following the landmark roe v. wade u.s. supreme court decision�to build theory of how stigmatized categories can come to be populated predominantly by specialists. building on primary and secondary archival materials, we identify three mechanisms that shaped category evolution and resulted in the de facto segregation of abortion into specialist organizations: the founding of freestanding facilities by values-driven providers, the exit of generalist organizations from the category, and the involuntary specialization of remaining providers, as customers no longer frequented them for other services and they soon became labeled simply as "abortion clinics." we conclude by discussing the implications of our findings for the stigma literature and the generalizability of our theorizing to other settings.
7. title: no free lunch after all: corporate political connections and firms' location choices.
authors: jia, nan; zhao, bo; zheng, wei; lu, jiangyong.
abstract: we examine how the presence of a firm's political connections in a candidate location affects the firm's likelihood of choosing that location over unconnected but otherwise comparable ones to establish a new subsidiary. first, because of various benefits that political connections can generate for firms, all else equal, firms are more likely to choose the locations in which they have connections with local political leaders. second, this effect is dampened when local economic conditions may drive local politicians to demand that connected firms engage in economically inefficient but politically desirable tasks, such as hiring superfluous labor. as a result, firms are less likely to choose a politically connected location that also suffers from higher unemployment. moreover, this dampening effect exists (and becomes stronger) when the connected politicians hold political positions that shoulder greater responsibility for resolving local unemployment issues. using data on all new subsidiaries established by chinese listed firms from 2003 to 2009, we obtain empirical evidence that corroborates the hypotheses. therefore, whether and how firms use their political connections in making location choice is strategic in that it is highly dependent on the economic and political context.
8. title: using stretch goals for idea generation among employees: one size does not fit all!
authors: ahmadi, saeedeh; jansen, justin j. p.; eggers, j. p.
abstract: this study explores heterogeneity in the efficacy of stretch goals for engaging employees in innovation, as stretch goals may both boost norm-breaking creativity and hamper fruitful ideation by overwhelming employees. through a multilevel perspective, we demonstrate that stretch goals motivate more capable employees (successful, experienced, senior) to submit useful innovative ideas by combining the motivation of stretch goals with these employees' ability to discern fruitful from futile ideas. other employees, meanwhile, may "spin their wheels" and submit lower-quality ideas based on their inability to apply useful knowledge. empirically, we leverage idea generation data from a fortune 500 firm. we contribute to stretch goals research by demonstrating both the intended and the unintended consequences that shape employee behavior and to the innovation literature by articulating when stretch goals can and cannot motivate valuable innovation from employees.
9. title: attention to exploration: the effect of academic entrepreneurship on the production of scientific knowledge.
authors: fini, riccardo; perkmann, markus; ross, jan-michael.
abstract: we study how becoming an entrepreneur affects academic scientists' research. we propose that entrepreneurship will shift scientists' attention away from intradisciplinary research questions and toward new bodies of knowledge relevant for downstream technology development. this will propel scientists to engage in exploration, meaning they work on topics new to them. in turn, this shift toward exploration will enhance the impact of the entrepreneurial scientist's subsequent research, as concepts and models from other bodies of knowledge are combined in novel ways. entrepreneurship leads to more impactful research, mediated by exploration. using panel data on the full population of scientists at a large research university, we find support for this argument. our study is novel in that it identifies a shift of attention as the mechanism underpinning the beneficial spillover effects from founding a venture on the production of public science. a key implication of our study is that commercial work by academics can drive fundamental advances in science.
10. title: a founding penalty: evidence from an audit study on gender, entrepreneurship, and future employment.
authors: kacperczyk, olenka; younkin, peter.
abstract: there is both widespread interest in encouraging entrepreneurship and universal recognition that the vast majority of these founders will fail, which raises an important unanswered question: what happens to ex-founders when they apply for jobs? whereas existing research has identified many factors that facilitate movement out of an established organization and into entrepreneurship, far less attention has been devoted to understanding what transpires during the return journey�most notably, how employers evaluate entrepreneurial experience at the point of hire. we propose that employers penalize job candidates with a history of founding a new venture because they believe them to be worse fits and less committed employees than comparable candidates without founding experience. we further predict that the discount for having been an entrepreneur will diminish when other stereotypes about the candidate, particularly those based on gender, will contradict the negative beliefs about ex-founders. we test our proposition using a r�sum�-based audit and an experimental survey. the audit reveals that founding significantly reduces the likelihood that an employer interviews a male candidate, but there is no comparable penalty for female ex-founders. the experimental survey confirms the gendered nature of the founding penalty and provides evidence that it results from employers' concerns that founders are less committed and worse organizational fits than nonfounders. critically, the survey also indicates that these concerns are mitigated for women, helping to explain why they suffer no equivalent founding penalty.
11. title: certification relics: entrepreneurship amidst discontinued certifications.
authors: eberhart, robert n.; armanios, daniel erian.
abstract: we explore a key tension between certification and entrepreneurial entry. on the one hand, more stringent certifications may provide greater legitimacy. on the other hand, market entry may be facilitated by easing such standards. to reconcile this tension, we examine discontinued certifications. we draw on research into how new ventures use certifications to gain legitimacy, along with quantitative data from new venture credit records. we show that after a certification is discontinued, new ventures in emerging industries continue to conform to these discontinued certified standards. our study shows that those whose attributes do not provide other sources of legitimacy (e.g., unconventional founders in emerging industries) are more likely than other new ventures to comply with discontinued certification. however, those with other legitimating attributes (e.g., elite institution alumni founders) can overcome such legitimacy deficits and take advantage of new rules easing entry. overall, our findings show that discontinued certifications can become certification "relics" whose standards continue to linger and influence entry, even after they are no longer formally in effect. our study and its findings enhance our understanding of institutional support for new ventures, as well as the repertoire of strategic actions available to new ventures to gain legitimacy and acceptance in the face of institutional change.
12. title: living it up at the hotel california: employee mobility barriers and collaborativeness in firms' innovation.
authors: seo, eunkwang; somaya, deepak.
abstract: research has long recognized the importance of collaboration for innovation, but relatively little is known about the strategic drivers of collaborative innovation in firms. we posit that robust collaboration within firms can increase the interfirm mobility of inventors and increase spillovers of innovative knowledge to competitors by mobile inventors. therefore, by mitigating these value capture hazards associated with collaboration, barriers to employee mobility may induce firms to increase collaborativeness in innovation. additionally, consistent with the mechanism underlying this proposition, we hypothesize that firms whose innovation entails more complex knowledge, which is known to impede interfirm knowledge spillovers, will increase collaboration less when employee mobility increases. we test these hypotheses by leveraging quasi-exogenous changes in two legal mobility barriers for inventors across u.s. states and find that higher-mobility barriers are associated with greater inventor collaboration (as observed in patented innovation), and this effect is weaker for firms possessing more complex knowledge. these findings deepen our understanding of the strategic tradeoffs between value creation and value capture entailed in collaborative innovation within firms and of human capital strategies that help to manage these tradeoffs.
13. title: misaligned meaning: couples' work-orientation incongruence and their work outcomes.
authors: jiang, winnie y.; wrzesniewski, amy.
abstract: this research investigates the relationship between couples' work-orientation incongruence�the degree to which romantic partners view the meaning of their own work differently�and their ability to succeed in making job transitions and experiencing satisfaction with the jobs they hold. we use a social information-processing approach to develop arguments that romantic partners serve as powerful social referents in the domain of work. by cueing social information regarding the salience and value of different aspects of work, partners with incongruent work orientations can complicate each other's evaluation of their own jobs and the jobs they seek. in a longitudinal study of couples in which one partner is searching for work, we find that greater incongruence in couples' calling orientations toward work relates to lower reemployment probability, a relationship that is mediated by an increased feeling of uncertainty about the future experienced by job seekers in such couples. calling-orientation incongruence also relates to lower job satisfaction for employed partners over time. we contribute to the burgeoning literature on the role romantic partners play in shaping work outcomes by examining the effect of romantic partners' perception of the meaning of work, offering empirical evidence of the ways in which romantic partners influence key work and organizational outcomes. our research also contributes to the meaning of work literature by demonstrating how work-orientation incongruence at the dyadic level matters for individual work attitudes and success in making job transitions.
14. title: division of labor through self-selection.
authors: raveendran, marlo; puranam, phanish; warglien, massimo.
abstract: self-selection�based division of labor has gained visibility through its role in varied organizational contexts such as nonhierarchical firms, agile teams, and project-based organizations. yet, we know relatively little about the precise conditions under which it can outperform the traditional allocation of work to workers by managers. we develop a computational agent-based model that conceives of division of labor as a matching process between workers' skills and tasks. this allows us to examine in detail when and why different approaches to division of labor may enjoy a relative advantage. we find a specific confluence of conditions under which self-selection has an advantage over traditional staffing practices arising from matching: when employees are very skilled but at only a narrow range of tasks, the task structure is decomposable, and employee availability is unforeseeable. absent these conditions, self-selection must rely on the benefits of enhanced motivation or better matching based on worker's private information about skills, to dominate more traditional allocation processes. these boundary conditions are noteworthy both for those who study as well as for those who wish to implement forms of organizing based on self-selection.
15. title: ceo power and nonconforming reference group selection.
authors: audia, pino g.; rousseau, horacio e.; brion, sebastien.
abstract: research shows that reference group selection underpins critical organizational processes, but less is known about publicly disclosed choices of reference groups, such as those for the evaluation of firm performance. because audiences, such as investors and analysts, prefer reference groups created by independent entities they can trust, they disapprove of choices of custom peer groups created by reporting firms. nevertheless, firms frequently choose reference groups that do not conform to audiences' expectations. we seek to explain why firms deviate from these externally held standards even when incurring penalties by developing theory and formulating hypotheses about the influence of chief executive officer (ceo) power. using data from 10-k filings, we find that firms led by high-power ceos are more likely to use nonconforming, custom peer groups despite incurring penalties. however, the relationship between ceo power and the use of custom peer groups is weaker when ceos face greater scrutiny from shareholders and analysts. we also find that low firm performance increases the use of custom peer groups among high-power ceos. contrary to our expectations, high ceo compensation attenuates the effect of ceo power on the choice of custom peer groups, arguably because high levels of ceo pay increase scrutiny. although firms incur costs for using nonconforming reference groups, supplemental analyses reveal that ceos benefit by receiving higher compensation, especially when performance is low. we conclude by discussing implications for research on publicly disclosed reference groups, the consequences of power, and information disclosure.
16. title: inappropriateness penalty, desirability premium: what do more certifications actually signal?
authors: lanahan, lauren; armanios, daniel erian; joshi, amol m.
abstract: prevailing theory argues that more certifications increase performance. however, emerging empirical evidence implies that obtaining more certifications may actually decrease performance. how do we reconcile this tension? practically speaking, why would ventures seek additional certifications in light of these recently identified risks? to address this gap between existing theory and recent empirics, we look more closely at ventures' activities and performance outcomes after they receive their first certification. we posit that different patterns of certification reflect different forms of experimentation. in particular, ventures may be willing to experiment in ways that incur an inappropriateness penalty for the chance to gain a subsequent desirability premium if their experiments succeed. inappropriateness means that certifications signal divergence from accepted market norms and standards. desirability means that certifications signal activities that are in the perceived self-interest of the potential audience. we hypothesize that certifications reflecting broad experimentation incur initial inappropriateness penalties, yet when successful, they are more likely to lead to breakthroughs that generate desirability premia. we find support for this idea through an empirical analysis drawing from a sample of 7,440 u.s. ventures that receive one or more small business innovation research (sbir) or small business technology transfer (sttr) grants to commercialize new technologies. this study advances institutional theory of certification to better account not only for its benefits but also for its costs.
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