Job satisfaction in the global MNE: does distance matter?

2019 ◽  
Vol 26 (3) ◽  
pp. 337-362
Author(s):  
Gwyneth Edwards ◽  
Abdulrahman Chikhouni ◽  
Rick Molz
Keyword(s):  
Job Satisfaction ◽  
Organizational Behavior ◽  
Business Strategy ◽  
Negative Impact ◽  
Multinational Enterprise ◽  
Past Research ◽  
Institutional Distance ◽  
High Tech ◽  
Firm Level ◽  
Content Type

Purpose The purpose of this paper is to investigate how the relative institutional distance of the subsidiary from the multinational enterprise (MNE) headquarters influences job satisfaction in the subsidiary. The authors argue that job satisfaction in the MNE subsidiary will be influenced by the institutional distance between the firm’s home (headquarter) and host (subsidiary) countries, such that the greater the institutional distance, the less satisfied the subsidiary employees. The authors also argue that the degree of function interdependence (global vs local roles) will moderate this relationship, such that high interdependence will result in lower job satisfaction as distance increases. Design/methodology/approach Using data from a global high-tech Canadian MNE, consisting of over 15,000 employees located in 19 subsidiaries, the research undertakes an empirical investigation that identifies if and how job satisfaction varies between countries and tests the influence of subsidiary-level institutional distance from the headquarters on subsidiary-level job satisfaction, using a multilevel model. Findings The results demonstrate that subsidiary distance from the headquarters has a complex effect on subsidiary-level job satisfaction; in some distances, no effect is found, while in others, either some or all job satisfaction facets are affected (depending on the distance and facet) in both positive and negative ways. Unlike much of the past research on distance, which has treated distance as a barrier to be overcome or reduce (Stahl et al., 2016), the paper’s finding demonstrate that “negative” distance operates independently (and at varying strengths and significance) than “positive” distance, due to underlying mechanisms. Research limitations/implications There is a real opportunity to push ahead on linking international business strategy research with organizational theory and organizational behavior research. To do so, it requires not only a positive organizational scholarship approach (Stahl et al., 2016) but also methods that will allow researchers to study the influence of distance on mechanisms and processes, as opposed to stand-alone variables. The authors therefore suggest that future work in this area pursue qualitative methods as called for by Chapman et al. (2008). Practical implications Findings are surprising, in that results vary across job facets and distances. Practitioners need to therefore focus on the mechanisms that influence job satisfaction, not just differences and their potential negative impact. Originality/value The firm-level study provides a rich perspective on the complex way in which country-level differences influence subsidiary-level job satisfaction.

scholarly journals Impact of COVID-19 on the trade of goods and services in Spain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asier Minondo
Keyword(s):  
Negative Impact ◽  
The European Union ◽  
Firm Level ◽  
Health Crisis ◽  
Content Type ◽  
Goods And Services ◽  
Containment Measures ◽  
Trade Of Services ◽  
The Impact

Purpose This paper aims to analyze the impact of COVID-19 on the trade of goods and services in Spain. Design/methodology/approach This paper uses monthly trade data at the product, region and firm level. Findings The COVID-19 crisis has led to the sharpest collapse in the Spanish trade of goods and services in recent decades. The containment measures adopted to arrest the spread of the virus have caused an especially intense fall of trade in services. The large share of transport equipment, capital goods, products that are consumed outdoors (i.e., outdoor goods) and tourism in Spanish exports has made the COVID-19 trade crisis more intense in Spain than in the rest of the European Union. Practical implications The nature of the collapse suggests that trade in goods can recover swiftly when the health crisis ends. However, COVID-19 may have a long-term negative impact on the trade of services that rely on the movement of people. Originality/value It contributes to understand how COVID-19 has affected the trade in goods and services in Spain.

Thwarted psychological needs: the negative impact of customer mistreatment on service employees and the moderating role of empowerment HRM practices

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jiuming Chen ◽  
Haiying Kang ◽  
Ying Wang ◽  
Mingjian Zhou
Keyword(s):  
Job Satisfaction ◽  
Job Performance ◽  
Negative Impact ◽  
Employee Performance ◽  
Well Being ◽  
Psychological Needs ◽  
Basic Psychological Needs ◽  
Cross Sectional ◽  
Content Type ◽  
Hrm Practices

PurposeDrawing on self-determination theory (SDT), this study aims to understand the adverse effects of customer mistreatment on employee performance and well-being by thwarting the satisfaction of employees' basic psychological needs. It also examines how these negative effects may be mitigated by empowerment human resource management (HRM) practices.Design/methodology/approachTwo studies were conducted using survey data collected in China. In Study 1, cross-sectional data from 321 telemarketing employees were analyzed to examine how customer mistreatment reduces the satisfaction of employees' basic psychological needs, harming job performance and job satisfaction. In Study 2, multiwave, multisource data were collected from 149 property agents and their supervisors to replicate the findings of Study 1 and further test empowerment HRM as a moderator of the relationship between customer mistreatment and satisfaction of needs.FindingsThe results from both studies show that customer mistreatment leads to low job performance and job satisfaction via reduced satisfaction of employees' needs for autonomy and competence but not relatedness. Moreover, the negative effect on the satisfaction of employees' needs for autonomy and competence was buffered when organizations had high empowerment HRM practices in place.Originality/valueThis study provides new insights on customer mistreatment by understanding its effects from a motivational perspective, which has not been considered in prior research. It also explores how HRM practices can help satisfy employee needs in adverse work environments induced by customer mistreatment.

Linking authoritarian leadership to employee organizational embeddedness, LMX and performance in a high-power distance culture: a mediation-moderated analysis

2020 ◽  
Vol 13 (3) ◽  
pp. 393-411 ◽  
Author(s):  
C. Muhammad Siddique ◽  
Hinna Fatima Siddique ◽  
Shama Urooj Siddique
Keyword(s):  
Job Satisfaction ◽  
High Power ◽  
Negative Impact ◽  
Power Distance ◽  
Work Outcomes ◽  
Content Type ◽  
Authoritarian Leadership ◽  
High Power Distance ◽  
Organizational Embeddedness ◽  
And Performance

PurposeThis study has two primary objectives: (1) to shed light on the mechanism by which authoritarian leadership unfolds its impact on such critical aspects of subordinates' work lives as job satisfaction and in-role performance and (2) to identify the moderating conditions which place limits on the impact of authoritarian leadership on work outcomes.Design/methodology/approachData were collected on 552 supervisor-subordinate dyads from the United Arab Emirates. A series of research hypotheses were tested using a mixed-method statistical approach, including CFA and moderated hierarchical regression analysis.FindingsAs predicted, authoritarian leadership exerts negative impact on subordinates' job satisfaction and performance through poor quality LMX and weak employee organizational embeddedness. Both LMX and employee embeddedness mediated the negative relationship between authoritarian leadership and outcome measures while power distance moderated the relationship of authoritarian leadership with LMX and employee organizational embeddedness. Low power distance orientation was found to exacerbate the negative impact of authoritarian leadership on the quality of both LMX relationships and employee embeddedness.Research limitations/implicationsThe study shares limitations of most studies cast in the survey research design.Practical implicationsThe findings underscore the importance of work environment in nurturing high quality LMX relationships and employee organizational embeddedness to buffer the negative effect of authoritarian leadership on subordinates' job satisfaction and performance. In high power distance cultures where workplace inequality is largely rationalized, subordinates who perceive their leaders as authoritarian tend to show low job satisfaction and poor in-role performance. These findings illustrate the importance of management intervention in the early stage of recruitment and selection to attract managers receptive to egalitarian leadership approaches who can equip subordinates with appropriate resources to enhance their job satisfaction and performance outcomes.Originality/valueThe study offers valuable new insights into the mechanism by which authoritarian leadership influences work outcomes in a high-power distance culture. It represents first systematic effort in the Middle Eastern context to identify the conditions that mediate the linkage between authoritarian leadership and work outcomes. The study adds value to the literature by investigating the moderating role of power distance at the individual level of analysis. It detects significant differences in subordinates' perception of power inequality in the workplace in a culture viewed as a high-power distance culture and illustrates how such differences in turn shape the quality of LMX and employee organizational embeddedness.

scholarly journals Dispositional and situational factors at work

2019 ◽  
Vol 33 (1) ◽  
pp. 49-70 ◽  
Author(s):  
Lucas Pujol-Cols ◽  
Guillermo E. Dabos
Keyword(s):  
Job Satisfaction ◽  
Latin America ◽  
Organizational Behavior ◽  
Psychometric Properties ◽  
Situational Factors ◽  
Spanish Version ◽  
Future Research ◽  
Content Type ◽  
Dispositional Factors ◽  
Core Self

Purpose The purpose of this paper is to examine the psychometric properties of the Spanish version of the Core Self-Evaluations Scale (CSES) and the Brief Index of Affective Job Satisfaction (BIAJS) in terms of internal consistency and factor structure and to, subsequently, analyze the influence of a set of dispositional factors (namely, core self-evaluations, CSEs) and situational factors (namely, psychosocial factors) on job satisfaction. Design/methodology/approach In total, 209 academics from an Argentinian university completed online surveys at two stages, separated in time, to reduce the common method bias. Findings The Spanish version of the CSES and the BIAJS showed acceptable psychometric properties, which were similar to those previously reported in North-American, European and Asian settings. Hierarchical regression analyses revealed that both situational and dispositional factors are significant predictors of job satisfaction. Research limitations/implications The CSES and the BIAJS seem to be valid and reliable instruments for assessing CSEs and job satisfaction, respectively, in Latin America. The adoption of an interactionist approach that includes both situational and dispositional factors is crucial in future research examining job satisfaction. Practical implications Managers should carefully evaluate the personality traits of candidates during personnel selection, as well as the working conditions they offer to their employees, since both factors seem to affect job satisfaction. Originality/value This paper contributes to the validation of two scales that may promote future organizational behavior/psychology research in Latin America. In addition, it provides empirical evidence on the relative influence of a set of situational and dispositional factors on job satisfaction, thus contributing to the resolution of the person-situation debate.

Performance implications of industry appropriability for manufacturing SMEs

2015 ◽  
Vol 26 (5) ◽  
pp. 660-677 ◽  
Author(s):  
Safal Batra ◽  
Sunil Sharma ◽  
Mukund R Dixit ◽  
Neharika Vohra ◽  
Vishal K Gupta
Keyword(s):  
Negative Impact ◽  
Linear Regression Analysis ◽  
Limited Resource ◽  
Multiple Linear Regression Analysis ◽  
Resource Base ◽  
Firm Level ◽  
Content Type ◽  
Manufacturing Enterprises ◽  
And Performance ◽  
Technology Orientation

Purpose – Industry appropriability – the degree to which firms in an industry can appropriate benefits from their innovations – is a crucial dimension of industry environment. Small and medium manufacturing enterprises (manufacturing SMEs), because of their limited resource base, tend to be especially sensitive to the appropriability conditions in their industry. The purpose of this paper is to understand the influence of industry appropriability on firm outcomes (innovativeness and performance), and posits technology orientation as a dynamic capability that helps firms overcome appropriability barriers in their industry. Design/methodology/approach – Data were collected from 162 manufacturing SMEs in India. Multiple linear regression analysis was used to test the proposed hypotheses. Findings – This study reveals that the perceived level of appropriability of manufacturing SMEs impacts their innovativeness. Further, findings also support technology orientation as a crucial firm-specific characteristic which enables firms to overcome unfavorable appropriability conditions. Technology orientation plays a significant role in mitigating the negative impact of lower appropriability conditions. Even when the patent regime is unfavorable, technology-oriented firms are able to innovate and perform better. Practical implications – The findings suggest technology orientation as a strategic mechanism for manufacturing SMEs to respond to conditions of unfavorable appropriability regime. Originality/value – This study elaborates the benefits of integrating industry-level and firm-level characteristics. Specifically, an attempt was made to extend the existing research on industry appropriability by bringing in the contingent effect of technology orientation. The context of manufacturing SMEs yielded several interesting insights.

Corporate strategic responses to foreign entry: insights from prospect theory

2014 ◽  
Vol 22 (3) ◽  
pp. 294-323 ◽  
Author(s):  
Thomas Hutzschenreuter ◽  
Ingo Kleindienst ◽  
Florian Groene ◽  
Alain Verbeke
Keyword(s):  
Prospect Theory ◽  
Business Strategy ◽  
Foreign Firms ◽  
Geographic Diversification ◽  
Import Penetration ◽  
Strategic Responses ◽  
Firm Level ◽  
Corporate Response ◽  
Content Type ◽  
Foreign Entry

Purpose – The purpose of this paper is to address how firms adapt their product and geographic diversification as a response to foreign rivals penetrating their domestic market by adopting a behavioral perspective to understand firm-level strategic responses to foreign entry. Design/methodology/approach – The study proposes that strategic responses to foreign entry selected by domestic incumbents have both a framing component and a related, strategic choice component, with the latter including changes in product and geographic market diversification (though other more business strategy-related responses are also possible, e.g. in product pricing and marketing). This study tests a set of hypotheses building on panel data of large US firms. Findings – The study finds, in accordance with our predictions, that domestic incumbents reduce their product and geographic diversification when facing an increase in import penetration. However, when increased market penetration by foreign firms takes the form of FDI rather than imports, the corporate response appears to be an increase in product and geographic diversification, again in line with our predictions. Originality/value – The study develops a new conceptual framework that is grounded in prospect theory, but builds on recent insights from mainstream international strategic management studies (Bowen and Wiersema, 2005; Wiersema and Bowen, 2008).

Managing the tensions between exploration and exploitation in large construction projects

2017 ◽  
Vol 17 (4) ◽  
pp. 492-510 ◽  
Author(s):  
Per Erik Eriksson ◽  
Henrik Szentes
Keyword(s):  
Collaborative Design ◽  
Construction Projects ◽  
Current Knowledge ◽  
Practical Importance ◽  
Fine Tuning ◽  
High Tech ◽  
Exploration And Exploitation ◽  
Structured Interviews ◽  
Firm Level ◽  
Content Type

Purpose Prior studies highlight the importance of building ambidextrous capabilities to achieve both exploitation of current knowledge and technologies to make profits today, and exploration of new knowledge and technologies to adapt to and prepare for tomorrow’s demands. In spite of its theoretical and practical importance, research on organizational ambidexterity in project-based organizations is scarce. Thus, the purpose of the paper is to study how ambidexterity may be managed and how exploration and exploitation may be achieved in construction projects. The research identifies some drivers and barriers to exploration and exploitation and also sheds light on how various management approaches interact and affect exploration and exploitation activities. Design/methodology/approach The empirical material is drawn from 40 semi-structured interviews with managers representing the client, the contractor and the designer involved in each of the seven large construction projects in the sample. Findings In contrast to prior literature in high-tech industries where exploitation focuses on continuous development, exploitation in construction projects often involves adopting conventional methods and solutions based on existing knowledge without any development efforts at all. This may enhance short-term efficiency and lower risk at the project level but increase risk at the firm level. Tight time schedules hinder both radical innovations and incremental developments, and the findings also reveal that to invest in efforts on explorative solutions, it must be possible to exploit the solutions in the same project. Research limitations/implications In this empirical context, the traditional structural and sequential ambidexterity solutions are not sufficient. In construction projects, contextual ambidexterity solutions in which key project actors collaborate in developing systemic innovations and fine-tuning solutions across projects are more effective. Practical implications Sufficient project size and/or long-term contracts over a series of projects enhance both investments in explorative activities and exploitation through continuous developments from project to project. In design–bid–build contracts, the client and consultant often miss opportunities to explore new technical solutions that rely on contractor competencies. Early procurement of contractors (e.g. in collaborative design–build contracts) thereby enables the achievement of both exploration and exploitation. Originality/value This study provides important input to the authors’ understanding of how exploration and exploitation may be managed in project-based industries, which has been scarcely studied in previous ambidexterity literature.

The effect of the Sarbanes–Oxley Act on firm productivity

2016 ◽  
Vol 9 (2) ◽  
pp. 120-142
Author(s):  
Hsihui Chang ◽  
Helen HL Choy
Keyword(s):  
Capital Investment ◽  
Negative Impact ◽  
Firm Productivity ◽  
Firm Level ◽  
Content Type ◽  
A Value ◽  
Sarbanes Oxley ◽  
Output Elasticity ◽  
Level Data

Purpose This paper aims to examine the effect of the Sarbanes–Oxley Act (SOX), which was signed by President George W. Bush and came into effect on July 30, 2002, on firm productivity. Design/methodology/approach The authors use the total factor productivity (TFP) as our measure of firm productivity. Findings Analyzing annual firm-level data from the Compustat database for the period of 1991-2006, the authors find that firm productivity increases at a higher rate in the post-SOX period. The results indicate that, although firms incur significant costs in complying with the requirements of the SOX, they also benefit from these requirements as evidenced by the improved productivity over time post-SOX. There is also a shift in the output elasticities from capital toward labor. The SOX has a positive effect on the output elasticity of labor but a negative impact on that of capital. Research limitations/implications The results have the following important implications. The SOX is a value-enhancing regulation in that it not only strengthens a firm’s corporate governance but also improves its productivity. However, compliance with the SOX can impose a long-term cost on firms: the decrease in the capital investment, leading to a decline in the output elasticity of capital. If this decline in the capital investment continues, it can have an adverse effect on firm productivity in the long term. Originality/value This paper extends the literature along the line of the actual operational effects of the SOX regulation by examining its effect on the productivity of firms.

scholarly journals Organizational identification, work engagement, and job satisfaction

2015 ◽  
Vol 30 (8) ◽  
pp. 1019-1033 ◽  
Author(s):  
Maria Karanika-Murray ◽  
Nikita Duncan ◽  
Halley M. Pontes ◽  
Mark D. Griffiths
Keyword(s):  
Job Satisfaction ◽  
Social Identity ◽  
Organizational Behavior ◽  
Employee Engagement ◽  
Work Engagement ◽  
Organizational Identification ◽  
Three Dimensions ◽  
Content Type ◽  
Practical Implications

Purpose – Organizational identification refers to a person’s sense of belonging within the organization in which they work. Despite the importance of organizational identification for work-related attitudes and organizational behavior, little research has directly examined the mechanisms that may link these. The purpose of this paper is to provide an understanding of how organizational identification relates to job satisfaction. Design/methodology/approach – Adopting a social identity perspective, the authors present and test two models that describe work engagement and its constituent dimensions (vigor, dedication, absorption) as mediating the relationship between organizational identification and job satisfaction. Findings – Bootstrapped mediation analyses provided support for full mediation whereby there is an indirect (via work engagement) and positive effect of organizational identification on job satisfaction. Analyses also provided support for the mediating effects of the three dimensions of work engagement, vigor, dedication, and absorption, in this relationship. Practical implications – Although cross-sectional, this study provides a needed first step toward an understanding of the important role of organizational identification for job satisfaction and the mediating role of work engagement in this relationship. Originality/value – The results provide valuable insights into the effects of organizational identification and address some of the gaps in understanding social identity as the context for work behaviors. Theoretical and practical implications for strengthening employee engagement and enhancing organizational identification are discussed.

Psychological capital and job satisfaction in Egypt

2015 ◽  
Vol 30 (3) ◽  
pp. 354-370 ◽  
Author(s):  
Mohga A Badran ◽  
Carolyn M. Youssef-Morgan
Keyword(s):  
Job Satisfaction ◽  
Organizational Behavior ◽  
North Africa ◽  
Structural Equation ◽  
Psychological Capital ◽  
Higher Order ◽  
Equation Modeling ◽  
Psychological Resources ◽  
Content Type ◽  
Multidimensional Construct

Purpose – The purpose of this paper is to extend the boundaries of positive organizational behavior (Luthans, 2002a, b) to North Africa and the Middle East. Specifically, the relevance of Psychological Capital (PsyCap et al., 2007), composed of the positive psychological resources of hope, efficacy, resilience and optimism, is conceptualized and tested in Egypt in relation to job satisfaction. Design/methodology/approach – A contextualized theoretical model is derived, in which PsyCap can lead to job satisfaction through a set of positive mechanisms. Structural equation modeling is used to test the hypothesized relationships on a sample of 451 Egyptian employees in 11 organizations representing some of Egypt’s most important industries in terms of GDP, employment and world economy integration. Findings – Hope, efficacy, resilience and optimism, individually and when integrated into the higher-order multidimensional construct, PsyCap, are positively related to the job satisfaction of Egyptian employees. Research limitations/implications – This paper supports the external validity of hope, efficacy, resilience and optimism, individually and when integrated into the higher-order multidimensional construct, PsyCap, in the African and Egyptian context. Practical implications – Egyptian organizations, as well as global companies that conduct business operations in Africa, may find PsyCap to be a new potential source of human-based competitive advantage. PsyCap is state-like and thus open to development through workplace interventions. Originality/value – This study provides evidence for the first time for the external and construct validity of PsyCap in North Africa. Zoogah (2008) found a dearth of articles that focus on North Africa, specifically the Arabian heritage. This paper begins to fill this gap. A context-bound approach is used to refine and integrate PsyCap theory with the cognitive, affective and behavioral processes of the African and Egyptian context.

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