The strategy of human resource flexibility versus absorptive capacity of knowledge

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Angel Martinez-Sanchez ◽  
Silvia Vicente-Oliva ◽  
Manuela Pérez-Pérez
Keyword(s):  
Human Resources ◽  
Case Studies ◽  
Absorptive Capacity ◽  
Temporary Employment ◽  
Business Strategies ◽  
Large Set ◽  
Cross Sectional ◽  
Industrial Firms ◽  
Content Type ◽  
Innovation Activities

PurposeThe study analyzes the relationship between human resources (HR) flexibility and absorptive capacity (AC) of knowledge in a sample of Spanish manufacturing firms. The purpose of the research is to analyze if firms with greater AC are more flexible than other firms and to assess the implications of different combinations of HR flexibility and AC for innovation.Design/methodology/approachThe study sample consisted of 1,666 Spanish industrial firms in 2015 compiled from a large set of statements from the Survey of Business Strategies (SBS) questionnaire. The methodology includes a cluster analysis and a case study of selected firms. First, a k-means clustering analysis was carried out to explore how homogeneous are the SBS firms according to several HR flexibility and AC measures. The authors complement the clustering itself with some descriptive statistics for each cluster. Second, the statistical analysis is followed by a selection of case studies from industrial firms in different positions regarding innovation, AC, and HR flexibility. The information for the cases studies comes from secondary sources such as corporate governance reports and statements of managers and employees from company websites and public reports.FindingsThe empirical evidence indicates that some combinations of HR flexibility and AC are positively related to innovation outputs whereas others are not. Firms with greater AC, R&D effort and innovation outputs have less “bad” HR flexibility (external numerical flexibility from temporary employees and temporary help agencies) and more “good” HR flexibility (internal and external functional flexibility). On the contrary, firms with minimum or non-existent innovation and AC efforts have the highest levels of temporary employment and do not hire external R&D experts.Research limitations/implicationsThe limitations of the cross-sectional nature of the study make the authors cautious about any proposition that may suggest a causal relationship among the studied variables.Practical implicationsManagers should pay attention to the different implications of each HR flexibility dimension for innovation activities since innovative companies value more those HR flexibility dimensions that contribute to the dispersion of knowledge within the firm.Originality/valueThe authors propose a framework to analyze the combination of HR flexibility and AC most suitable to different types of firms. Based on the statistical analyses and the case studies, the authors propose some strategic implications useful for the management of human resources. The matrix's framework analyzes the firm's innovation strategies according to the interactions between AC and the mix of HR flexibility dimensions.

Regulation and information asymmetry

2008 ◽  
Vol 16 (1) ◽  
pp. 59-76 ◽  
Author(s):  
Robyn McLaughlin ◽  
Assem Safieddine
Keyword(s):  
Information Asymmetry ◽  
Stock Returns ◽  
Operating Performance ◽  
Cost Benefit ◽  
Future Research ◽  
Information Asymmetries ◽  
Cross Sectional ◽  
Industrial Firms ◽  
Content Type ◽  
Regulated Utilities

PurposeThis paper seeks to examine the potential for regulation to reduce information asymmetries between firm insiders and outside investors.Design/methodology/approachExtensive prior research has established that there are substantial effects of information asymmetry in seasoned equity offers (SEOs). The paper tests for a mitigating effect of regulation on such information asymmetries by examining differences in long‐run operating performance, changes in that performance, and announcement‐period stock returns between unregulated industrial firms and regulated utilities that issue seasoned equity. The authors also segment the samples by firm size, since smaller firms are likely to have greater asymmetries.FindingsConsistent with regulated utility firms having lower levels of information asymmetry, they have superior changes in abnormal operating performance than industrial firms pre‐ to post‐issue and their announcement period returns are significantly less negative. These findings are most pronounced for the smallest firms, firms likely to have the greatest information asymmetries and where regulation could have its greatest effect.Research limitations/implicationsThe paper does not examine costs of regulation. Thus, future research could seek to measure the cost/benefit trade‐off of regulation in reducing information asymmetry. Also, future research could examine cross‐sectional differences between different industries and regulated utilities.Practical implicationsRegulation reduces information asymmetry. Thus, regulation or mandated disclosure may be appropriate in industries/markets where information asymmetry is severe.Originality/valueThis paper is the first to compare the operating performance of regulated and unregulated SEO firms.

Disrupting the Chinese market

2019 ◽  
Vol 35 (1) ◽  
pp. 24-25
Keyword(s):  
Case Studies ◽  
Design Methodology ◽  
Reading Time ◽  
Cutting Edge ◽  
Business Strategies ◽  
Chinese Market ◽  
Content Type ◽  
International Firms ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings International firms looking to move into the Chinese domestic market face significant challenges. Through innovation and targeted business strategies, these firms are able to find success. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Exploring new Internet measurements on international trade and global human resources

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tina T. Swan ◽  
Bruce Q. Swan ◽  
Zuopeng (Justin) Zhang
Keyword(s):  
International Trade ◽  
Human Resources ◽  
Technology Development ◽  
The Internet ◽  
Trade Volume ◽  
Causality Analysis ◽  
Cross Sectional ◽  
Content Type ◽  
Internet Measurements ◽  
Changes Over Time

PurposeWe address the question of how the Internet promotes international trade volume, and especially, whether the global human resources affect the bilateral international trade during the technology development across countries.Design/methodology/approachA dynamic panel causality analysis is carried out to demonstrate empirically that the causality of the Internet diffusion on the international trade volumes. Evidence shows a significant positive effect of the Internet on international trade volume from time-series and cross-sectional regressions. Furthermore, the magnitude of elasticity is discussed.FindingsThere is strong evidence that the Internet stimulates international trade for all countries. Growth of trade volumes changes over time with heteroscedastic responses. The positive impacts of the growth of GDP are diluted by the growth of global human resources.Originality/valueThe data on the number of web hosts is not necessarily correlated to where the site is actually located. We contribute to the new Internet measurement which helps to explain the information transferring that stimulates the international trade and examine the global human resources.

Revisiting the potential of human capital development to predict commitment: an empirical approach

2019 ◽  
Vol 51 (5) ◽  
pp. 289-298 ◽  
Author(s):  
Benon Muhumuza ◽  
Sudi Nangoli
Keyword(s):  
Human Capital ◽  
Human Resources ◽  
Empirical Support ◽  
Cross Sectional Study ◽  
Development Theory ◽  
Human Capital Development ◽  
Cross Sectional ◽  
Content Type ◽  
Study Approach ◽  
Capital Development

PurposeThe purpose of this paper is to revisit the potential of human capital development to predict commitment from an empirical perspective. This followed the fact that while organisations continue to invest a lot of resources into development of their human capital, a growing tendency of the trained staff to quickly abandon the organisation and move on to search for greener pastures has also been registered.Design/methodology/approachThis study takes a positivistic approach. It is an explanatory, cross-sectional study that is based on a case study approach.FindingsThe findings revealed that developing human resources still leads to enhanced commitment among staff. The findings provide empirical support for the tenets of the human capital development theory.Research limitations/implicationsInvestment in development of human resources is still a worthy while cause for organisations as it positively and significantly contributes to commitment.Practical implicationsWhile organisations ought to keep watch of the costs that come with human capital development endeavours the practice of developing human resources should be continued as it contributes to the organisational performance of staff.Originality/valueThe paper deepens the understanding on how human capital development is currently enhancing the commitment of organisational staff in a typical developing economy and sector. Such knowledge provides a clear basis for allocating resources on people development endeavours.

Impact of knowledge sharing, learning adaptability and organizational commitment on absorptive capacity in pharmaceutical firms based in Pakistan

2018 ◽  
Vol 22 (1) ◽  
pp. 44-56 ◽  
Author(s):  
Muhammad Rafique ◽  
Shafqat Hameed ◽  
Mujtaba Hassan Agha
Keyword(s):  
Organizational Commitment ◽  
Absorptive Capacity ◽  
Middle Managers ◽  
Cross Sectional Study ◽  
Cross Sectional ◽  
Knowledge Process ◽  
Content Type ◽  
Independent Variables ◽  
Pharmaceutical Firms ◽  
The Impact

Purpose Absorptive capacity being an emerging field of research has been studied in different perspectives both in technological aspects and soft issues. Although an original study of absorptive capacity placed employees as playing pivoting role in the development of absorptive capacity (Cohen and Levinthal, 1990), unfortunately, there are limited studies on behavior of employees toward this emerging construct. This study aims to explore the impact of employees’ behavior in the development of absorptive capacity. Specifically, impact of knowledge sharing, learning adaptability and organizational commitment on absorptive capacity has been evaluated in this study. Design/methodology/approach This cross-sectional study was conducted at the pharmaceutical firms of Pakistan. The data were collected through random sampling from middle managers as a unit of analysis of this study. The rationale of the unit of analysis is that the maximum information is handled/accessed by the middle managers in the perspective of Pakistan. The data were collected from 170 respondents on a five-point Likert scale with the response rate of 66.7 per cent. Data were collected from different genders and different age groups with different qualification levels. Findings All independent variables showed significant positive correlations with overall absorptive capacity (ACAP). At the same time, different relationships of all independent variables were found in different ways with different significant levels. The results showed that different strategies may be adopted to manage the external knowledge for competition in turbulent environment. For example, organizational commitment may be incorporated at strategy formulation only, whereas the Adaptability at both routine and strategy formulation stage. As all independent variables showed no correlation with Acquisition it is concluded that Acquisition is purely a routine function, and instead of coordination, the routine processes must be emphasized. Research limitations/implications This study focused on the data from the middle managers of the pharmaceutical firms only. The results may not be generalized to the sectors. Another limitation is that the respondents of the study were middle managers. It was made intentional to see the impact of management aspects other than organizational mechanisms, as discussed by Cohen and Levinthal (1990) and Jansen et al. (2005) in their studies. The results on the basis of the data collected from other entities of the organization may differ. This is a cross-sectional study, and a longitudinal study may give different results. Practical implications Absorptive capacity has the capability to absorb new knowledge and plays an important role in the development of organizational processes to compete in the turbulent environment. It is dependent not only on technological infrastructure but also on the employees’ behaviors and attitudes. This study gives insights about the knowledge process activities and employment of human resource at each phase of absorptive capacity in relation to their behaviors toward knowledge process. Social implications Development of organizational process with knowledge management plays an important role in the capacity building, which ultimately enhances social paradigm of activities. Originality/value Pharmaceutical companies in Pakistan acquire technologies from foreign countries and have very limited research and development of their own. As technology is upgraded by the foreign companies as a continuous improvement process, local firms of Pakistan are required to absorb the new knowledge with the same pace. The study highlights importance of human capital in the development of this capability.

The role of organizational and social capital in the firm’s absorptive capacity

2015 ◽  
Vol 19 (5) ◽  
pp. 987-1006 ◽  
Author(s):  
Amal Aribi ◽  
Olivier Dupouët
Keyword(s):  
Social Capital ◽  
Absorptive Capacity ◽  
Organizational Capital ◽  
Industrial Firms ◽  
Content Type ◽  
Radical Innovations ◽  
The World ◽  
Expected Outcome ◽  
Do So

Purpose – This paper aims to ask the question of the contingency of a firm’s absorptive capacity upon the type of expected outcome. Thus, this paper looks at different expected outputs in terms of more or less radical innovations and sees if there are consequences on the absorptive process underpinning cognitive structures and processes, as embodied in its organizational and social capital. Design/methodology/approach – To do so, a qualitative study was conducted. In total, 23 persons in three French industrial firms were interviewed about their firm’s absorptive capacity. One of these firms aims at “new-to-the-firm” innovations, while the other two aim at “new-to-the-world” innovations. Findings – Results suggest that while “new-to-the-firm” innovations tend to favor the use of social capital, “new-to-the-world” innovations tend to rely more on organizational capital. These rather counterintuitive results are interpreted by the necessity to take into account other variables than knowledge distance in the absorption of new knowledge. In particular, complexity and time-length would call for greater use of organizational capital, while speed and reactivity would instead require greater use of social capital. Originality/value – This is to the best of the authors’ knowledge that one of the first study evidencing the contingent nature of the absorptive process. Further, results tend to show the form absorptive capacity takes depends not only on cognitive aspects but also on the particular environment the firm evolves in.

scholarly journals Linking human resources practices to employee engagement in the hospitality industry: the mediating influences of psychological safety, availability and meaningfulness

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md Karim Rabiul ◽  
Ahmad Edwin Mohamed ◽  
Ataul Karim Patwary ◽  
Tan Fee Yean ◽  
Siti Zaitun Osman
Keyword(s):  
Human Resources ◽  
Employee Engagement ◽  
Customer Service ◽  
Self Concept ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Psychological States ◽  
Hr Practices ◽  
Concept Theory

PurposeDrawing on self-concept theory, this study evaluates the mediating effects of employees' psychological states on the relationship between human resources (HR) practices and employee engagement.Design/methodology/approachThrough random sampling, 434 customer-contact frontline employees from five-star hotels in Malaysia participated in the cross-sectional survey.FindingsThe results produced by the Smart-PLS (partial least squares) indicate that HR practices positively and significantly influence employees' psychological states of safety, meaningfulness and availability. All these psychological states also exert positive influences on employee engagement (organisational and work engagement). Safety and availability mediate the links between HR practices and employee engagement, but not meaningfulness.Practical implicationsHR practices and employees' psychological states are necessary in ensuring positive employee outcomes and improving customer service provision.Originality/valueThe findings contribute to the further extension of self-concept theory and employee engagement by incorporating the mediating roles of employees' psychological states in the relationships between HR practices and employee engagement.研究目的以自我概念理論為依據，本研究擬評估僱員的心理狀態、如何在人力資源做法與員工敬業度之間的聯繫上起著仲介的效應。研究方法透過隨機抽樣法，434名在馬來西亞五星級酒店工作、接觸顧客的一線員工被選參與一個橫斷面調查。研究結果以SmartPLS （偏最小平方）取得的研究結果顯示、人力資源做法正面地影響著員工的安全感、工作給予的意義和感知的組織支援；而且，這些心理狀態，均會對員工的敬業度（對組織的自豪感及對工作的投入）起著正面的影響。另外，安全感和感知的組織支援在人力資源做法與員工敬業度之間的聯繫上、起著仲介之效應；唯工作給予的意義則沒有這個效應。研究的原創性研究結果進一步伸展了自我概念理論及員工敬業度方面的論述，這是由於本研究把員工心理狀態所扮演的中介角色，納入人力資源做法與員工敬業度的聯繫中。研究給予的啓示若要確保積極的員工成果及提供更佳的顧客服務，有效的人力資源做法和正面的員工心理狀態是不可或缺的。

Firm characteristics, innovation, financial resilience and survival of financial institutions

2019 ◽  
Vol 10 (1) ◽  
pp. 48-73
Author(s):  
Stephen Korutaro Nkundabanyanga ◽  
Elizabeth Mugumya ◽  
Irene Nalukenge ◽  
Moses Muhwezi ◽  
Grace Muganga Najjemba
Keyword(s):  
Financial Institutions ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
Firm Characteristics ◽  
Cross Sectional ◽  
Firm Innovation ◽  
Content Type ◽  
Going Concern ◽  
Innovation Activities ◽  
The Social

Purpose The purpose of this paper is to examine the relationship among firm characteristics, innovation, financial resilience and survival of financial institutions in Uganda. Design/methodology/approach This paper employs a cross-sectional research design, and responses from 143 officers of 40 financial institutions are analyzed using Statistical Package for the Social Sciences. The authors used ordinary least squares regression in testing the hypotheses. Findings The authors find that firm characteristics of size, age, innovation and financial resilience have a predictive force on survival of public interest firms such as financial institutions. Research limitations/implications The implication drawn here is that a combination of firm characteristics, firm innovation and financial resilience explains a significant contribution in the survival chances of financial institutions. However, as much as firm characteristics and financial resilience are significant, innovation explains more of the variances in financial institutions’ going concern appropriateness. Originality/value This paper adds to the limited financial institutions literature and provides the first empirical evidence of the efficacy of innovation and financial resilience on financial institutions survival. The auditing profession could consider more seriously the innovation activities and financial resilience of financial institutions in their test for the going concern assumption of such firms.

Flexibility and innovation: moderator effects of cooperation and dynamism

2019 ◽  
Vol 48 (6) ◽  
pp. 1548-1564 ◽  
Author(s):  
Ángel Martínez-Sánchez ◽  
Maria-Jose Vela-Jimenez ◽  
Silvia Abella-Garces ◽  
Sophie Gorgemans
Keyword(s):  
Innovation Performance ◽  
Business Strategies ◽  
Large Set ◽  
Moderator Effect ◽  
Content Type ◽  
Moderator Effects ◽  
Innovative Firms ◽  
The Relationship ◽  
Organizational Cooperation ◽  
Technology Cooperation

Purpose The purpose of this paper is to analyze simultaneously two moderator effects on a model of relationships between external human resource (HR) flexibility and innovation in a large sample of manufacturing firms. Design/methodology/approach The study sample consisted of 1,864 Spanish industrial firms in 2012 compiled from a large set of statements from the Survey of Business Strategies questionnaire. Logit and linear regressions tested the moderator effects of inter-organizational technology cooperation and environmental (market) dynamism in the relationship between external HR flexibility and innovation performance. To control for multicollinearity the Lance’s residual centering technique was used. Findings Process innovations seemed to be dependent on industry while innovative firms have developed a greater flexibility than non-innovative firms. Some moderator effects were found regarding inter-organizational cooperation while the market dynamism was negatively related to the measures of innovation with absence of moderator effects. Research limitations/implications Future studies should integrate more moderator effects that may influence the relationship between external HR flexibility and the firm’s innovation performance. The results regarding the influences of external flexibility on innovation have to be differentiated as inter-organizational technological cooperation compensated the influence of external workplace flexibility on innovation. Practical implications Managers should use a right mix of external flexibility measures according to the inter-organizational cooperation but regardless the level of environmental dynamism. Originality/value This paper is original in the sense that it studies the relationship between external HR flexibility and innovation with the simultaneous moderator effect of inter-organizational technology cooperation and market dynamism. The value of the paper lies in the discussion of interrelated moderator effects in order to propose adequate strategies to develop external HR flexibility.

scholarly journals The challenge of integrating operational knowledge in building and ship design

Facilities ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Helle Lohmann Rasmussen
Keyword(s):  
Project Management ◽  
Case Studies ◽  
Design Process ◽  
Qualitative Methodology ◽  
Ship Design ◽  
Cross Sectional ◽  
Content Type ◽  
Multiple Case ◽  
Group Interviews

Purpose For optimising long-term building operations, building clients need to enable integration of operational knowledge in the design process of new buildings. This study aims to investigate and compare how operational knowledge is integrated into the design of buildings and large ships, focussing on the roles affiliation and the competences of the client’s project manager play. Design/methodology/approach A cross-sectional qualitative methodology with multiple case studies (five cases) was used. In addition, ten expert interviews and two validation focus group interviews were conducted. Case studies included in-depth interviews, document analysis and observations. Findings The study showed that organisational affiliation, focus and competences of the client’s project management play an important role in how much effort and resources go into ensuring integration of operational knowledge in the design process. In the ship cases, projects managers’ highest concerns were operations. Yet, the fewest procedures and tools to integrate operational knowledge in design were found implemented in these cases. Contrastingly, in the building cases, where operations were not the main matter of concern of project management, a large number of procedures and tools to integrate operational knowledge in design were implemented. Originality/value To the best of the author’s knowledge, this research is the first to compare how integration of operational knowledge is taking place in the design process of buildings and large ships and identifying what these industries can learn from each other. Furthermore, it adds to the limited research on operations in large ship design.

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