The impact of overeducated and undereducated workers on establishment-level productivity

2016 ◽  
Vol 37 (2) ◽  
pp. 372-392 ◽  
Author(s):  
Philipp Grunau

Purpose – Many contributions to the educational mismatch literature address the productivity effects of both excess and deficit educational attainments for workers at the individual level. Due to the limited transferability of their results to establishment-level performance, especially when allowing for the possibility of spillover effects from mismatched workers to their well-matched colleagues, from an employer’s point of view, it is highly important to know the net effect of educationally mismatched employees on productivity at the establishment level. The paper aims to discuss these issues. Design/methodology/approach – This paper analyses the impact of overeducated and undereducated workers among an establishment’s workforce on its productivity, providing first representative evidence for Germany. Using linked employer-employee data from Germany, the author estimates dynamic panel production functions using a system GMM estimator. Findings – The author finds that undereducated workers among an establishment’s workforce impair its (establishment-level) productivity, implying that an establishment’s HR management should avoid the recruitment of undereducated workers, at least if they follow a short-term personnel policy. The effect for overeducated employees is also negative, albeit small and insignificant. Originality/value – The consideration of the phenomena of over and undereducation from the employer’s point of view provides further insight into the consequences of educational mismatch.

2019 ◽  
Vol 61 (6) ◽  
pp. 718-736
Author(s):  
Swagatika Sahoo ◽  
Rajeev Kumar Panda

Purpose The purpose of this paper is to empirically investigate the impact of the contextual antecedents on the individual entrepreneurial orientation (IEO) of university graduates, which, in turn, affects their entrepreneurial intentions (EIs). Design/methodology/approach Primary data were collected in the form of 510 valid responses from engineering students across two technical universities in India, through a structured questionnaire consisting of scales adapted from the extant literature, and the data were empirically validated in this study. The reliability and validity measures of the constructs were validated through the confirmatory factor analysis, and the proposed hypotheses were validated using structural equation modelling. Findings The results of this empirical analysis validate that the contextual antecedents have a significant positive impact on students’ entrepreneurial orientation (EO), which, in turn, has a significant positive influence on EIs. Research limitations/implications This analysis depicts the significance of EO as a perceptual driver at the individual level and substantiates that the availability of resources such as startup capital, access to business information, social networks and supportive university context significantly affects the decision-making process of an individual to venture into an otherwise uncertain occupation of entrepreneurship. Practical implications The study has the likely potential to help university administrators and policymakers to allocate resources, develop strategies and provide effective entrepreneurial learning in entrepreneurship-oriented courses aimed at honing entrepreneurial skills and self-confidence of the university students. This holistic model can be used as a tool for resource planning and prioritising in order to provide the desired contextual support essential for fostering the IEO of the university students towards adopting entrepreneurial career, thereby assisting them to achieve their career goals and the broader objective of nation-building. Originality/value This study adopts an innovative approach to empirically validate the EO construct at the individual level, which has been studied at the organisation (firm) level till today. This research explores the relevant contextual antecedents and analyses their impact on IEO as well as the explanatory capacity of IEO to explain students’ EIs in the contextual backdrop of universities in a fast transitioning economy like India.


2014 ◽  
Vol 37 (2) ◽  
pp. 130-151 ◽  
Author(s):  
Evangelia Siachou ◽  
Panagiotis Gkorezis

Purpose – The present study aims to contribute to the limited empirical research regarding the individual level antecedents of absorptive capacity (AC). In this vein, the authors examined the impact of employees' psychological empowerment (PE) dimensions on their AC. Moreover, the authors explored the magnitude of the relationship between one of PE four dimensions, namely competence, and AC compared to that of the rest three dimensions of PE. Design/methodology/approach – The authors collected data from 100 private employees working in two manufacturing organizations. In order to investigate the hypotheses, the authors conducted hierarchical regression and usefulness analysis. Findings – As predicted, the present results showed that all four PE dimensions affected employees' AC. Furthermore, competence demonstrated the strongest impact among all PE dimensions. Research limitations/implications – Data were drawn from two manufacturing organizations located in specific geographical area. Thus, this may constrain the generalizability of the results. Also, the cross-sectional analysis of the data cannot directly assess causality. Originality/value – To the best of the authors' knowledge, this is the first empirical study examining the relationship between PE and AC.


2016 ◽  
Vol 21 (1) ◽  
pp. 92-102 ◽  
Author(s):  
Meryem Uluskan ◽  
Jeffrey A. Joines ◽  
A. Blanton Godfrey

Purpose – This study aims to provide a comprehensive insight into the role of the quality management (QM) systems in international suppliers (e.g. ISO, Total Quality Management, Lean and Six Sigma) on outsourcing decisions of buyer companies with regard to reshoring activities. Design/methodology/approach – By the means of a comprehensive survey data collected within USA textile and apparel industry, the authors identify four quality factors and compare these factors for international and domestic suppliers by the means of linear discriminant analysis (LDA) and consequently define a reshore vector. Next, the most-effective QM system within international suppliers is analyzed by the means of a new application based on LDA. Findings – The results reveal that international suppliers perform worse for all quality factors compared to domestic USA suppliers, which may leave the door open for reshoring activities. Furthermore, it is shown that Lean and Six Sigma within international suppliers lead to superior levels of quality because they are aligned along the most opposite directions against reshore vector. Therefore, it is claimed that Lean and Six Sigma within the international suppliers can inhibit reshoring activities of US companies. Practical implications – The willingness of US textile companies to assist their international suppliers and the challenges on this subject are discussed on the basis that supplier development (or quality management) programs can be strong alternatives to reshoring activities. Originality/value – QM systems in suppliers are analyzed with a new method within a new context based on reshore phenomenon, which provides an essential point of view for academic and industrial environments.


2017 ◽  
Vol 30 (1) ◽  
pp. 24-46 ◽  
Author(s):  
Saggi Nevo ◽  
InduShobha Chengalur-Smith

Purpose Our knowledge of why organizations continue to use open source software (OSS) infrastructure technologies is relatively limited, and existing models appear inadequate to explain this continuance phenomenon given that they are set at the individual level and also do not take into account the unique characteristics of OSS. The paper aims to discuss these issues. Design/methodology/approach Using an institutional perspective, this paper posits that coercive (business value of IT) and normative (open source ideology (IDEO)) factors may be credited with sustaining the continued use of OSS technologies. The study argues that organizations that subscribe to IDEO are more likely to continue using OSS technologies. Survey data are collected from organizations that have implemented an OSS infrastructure technology and a moderated multiple regression analysis is performed to test the proposed hypotheses. Findings In addition to the business value provided by OSS technologies, adherence to IDEO also impacts decisions to continue using those technologies. The results suggest that once an OSS is implemented in an organization, IDEO can enhance organizations’ intentions to continue using such technologies, directly, as well as indirectly, by amplifying the impact of the perceived business value of the technology. Originality/value Much of extant literature on continued use focuses on end-user technologies. This paper is one of the first to focus on infrastructure technologies and examine organizations’ intentions to continue using those technologies by developing a parsimonious theory-driven model for examining organizations’ continued use intentions toward infrastructure IT. Additionally, much of open source research to date has been inwardly focused, and this paper is one of few empirical studies to focus on the demand or consumption side of OSS technologies.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marieke van den Brink

Purpose The purpose of this paper is to advance knowledge of organizational change towards diversity by bringing together concepts from organizational learning and diversity studies. Design/methodology/approach This longitudinal study was conducted over two years. It involved interviews, observation of meetings and consultation of documentation and the analysis focused on organizational learning. The key research question was how do organizational members institutionalize their individual learning process to change in organizational cultures, routines and structures in a sustainable way? Findings The results showed that there had been learning at the individual level but this did not necessarily mean that participants had been able to transfer their learning into behaviour change. Research limitations/implications The research suggested that training alone may not be sufficient to promote effective organizational change regarding diversity. Additional measures are likely to be required, for example, including diversity targets in performance management plans and reviews. Practical implications In order to achieve greater diversity, organizations are likely to need to use a number of methods to supplement initial training. Social implications This research gives insight into how greater diversity may be achieved in organizations. Originality/value Previous literature understates the complexity of the change processes for enhanced diversity to be sustained in organizations. This study has originality in its focus on organizational learning.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shen Lei ◽  
Cuijuan Qin ◽  
Muhammad Ali ◽  
Susan Freeman ◽  
Zheng Shi-Jie

PurposeThe purpose of this study is to develop and test a multilevel conceptual model which explains how authentic leadership (AL), through an innovative team atmosphere and promotion of self-efficacy, influences creativity. The study delineates two pathways from AL to creativity. The first pathway is an indirect effect through an innovative atmosphere at the team level and self-efficacy at the individual level, while the second pathway focuses on the moderating effect of AL between self-efficacy and individual creativity.Design/methodology/approachData were collected from 58 team leaders and 283 employees in a creative industry park in the Yangtze River Delta region from China. Path analysis was conducted to test the proposed hypotheses using the statistical package M-plus (v. 7).FindingsThe results reveal that AL is an important antecedent of creativity. Furthermore, an innovation-based atmosphere at the team level mediates the theorized relationship between AL and individual creativity. However, creative self-efficacy at the individual level does not mediate this relationship. Finally, the study found that AL moderates the relationship between creative self-efficacy and individual creativity.Originality/valueThe implications of this study highlight important considerations for enterprises in creative industry parks within and beyond China. This study provides industry leaders with a clearer and more insightful and coherent means of understanding the mediating mechanism between AL and creativity, and the moderating effects of AL between individual self-efficacy and creativity through a new linkage model.


2019 ◽  
Vol 23 (1) ◽  
pp. 114-133 ◽  
Author(s):  
Imran Shafique ◽  
Bashir Ahmad ◽  
Masood Nawaz Kalyar

Purpose The purpose of this paper is to answer two questions. What is the impact of ethical leadership on followers’ creativity and organizational innovation? What are the mechanisms through which ethical leadership influences creativity and organizational innovation? Design/methodology/approach Considering a market-oriented criterion to measure organizational innovation, the data were collected from 322 small-sized information technology firms working in Pakistan. Multilevel modeling and hierarchical regression analyses were used to explore the direct and indirect effects of ethical leadership on creativity and innovation, respectively. Findings The results show that ethical leadership is an important predictor of both individual and organizational creativity. For the individual level, the results of multilevel modeling indicate that there is a positive link between ethical leadership and employee creativity. Furthermore, ethical leadership affects employee creativity through knowledge sharing and psychological empowerment. At the organizational level, the results reveal that ethical leadership is positively associated with organizational innovation directly. Practical implications The findings imply that ethical leadership is an important tool to promote creativity and for the advancement of innovation for developing countries as well as for newly developed industries. Originality/value This study is first to highlight the role of ethical leadership for organizational innovation. The main contribution of the study is to explore creativity as potential mediator for ethical leadership–organizational innovation nexus; where a market-oriented criterion is taken as proxy of organizational innovation.


2016 ◽  
Vol 37 (4) ◽  
pp. 606-627 ◽  
Author(s):  
Morley Gunderson ◽  
Byron Y Lee ◽  
Hui Wang

Purpose – The purpose of this paper is to estimate the union-nonunion pay gap impact separately for wages and bonuses as well as total compensation to include both wages and bonuses in China. The way in which the impact varies as control variables are added is illustrated as is how the impact varies by the type of firm ownership. The overall pay gap is also decomposed into a component due to differences in their pay determining characteristics as well as a component due to differences in their returns to those characteristics. These separate components are also calculated throughout the pay distribution. Design/methodology/approach – Using the 2010 China Family Panel Studies Survey, a nationally representative survey in China, the methodology involves different estimation procedures as appropriate for the nature of the data and the dependent variables. First the authors estimate a single equation to determine the union-nonunion pay gap. Then the authors estimate the union impact on the various components of compensation (wages and bonuses). Next the authors decompose the relative contribution of each factor in explaining the wage gap. Finally, quantile regressions are used to examine the union impact across various levels of the pay distribution. Findings – The authors find a gross union-nonunion pay gap (wages + bonuses) of 42 percent, dropping to 12 percent after controlling for the effect of other pay determining factors. The union impact on wages is only 8 percent, but bonuses are about twice as high for union workers. The union impact is essentially zero for (state-owned firms) SOEs and for foreign-owned firms but it is large at 16 percent for private firms and even larger at 22 percent for government agencies. Of the overall pay gap of 42 percent, about three-quarters is attributable to differences in their endowments of pay determining characteristics and about one-quarter to differences in the returns for the same endowments of characteristics. Quantile regressions reveal that the pure or adjusted union wage premium exhibits a u-shaped pattern being highest in the bottom and to a lesser extent the top of the pay distribution. Originality/value – There are a dearth of studies examining the union-nonunion pay gap in China. Of the studies that examine this issue, all of them are at the enterprise level with no studies at the individual level. Taking a nationally representative dataset at the individual level, the authors are able to estimate the union-nonunion pay gap in China. The authors identify the portion of the gap that reflects differences in endowments of pay determining characteristics and the portion that reflects different returns to those characteristics, and the relative contribution of the different variables to those components; and how these components change over the pay distribution. The authors also offer explanations for many of these patterns.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Veronika Ermilina ◽  
Matthew Farrell ◽  
Fatemeh Askarzadeh ◽  
Jing Zhang

Purpose For new ventures, access to entrepreneurship assistantship is the main source of growth and innovativeness. Accelerators, a growing provider of entrepreneurial resources, offer such assistantship. This study aims to identify several factors that might account for a startup’s acceptance of accelerator programs. Particularly, this paper examines the impact of a lead founder’s country of birth, gender and education on accelerator acceptance. Design/methodology/approach This study tests the framework with logit regression for a sample of 10,298 observations for startups in 166 countries over 2016–2018. Findings This study finds that entrepreneurs from developing countries are less likely to be accepted by accelerators than entrepreneurs from developed economies. Counterintuitively, this study also finds an advantage for female entrepreneurs in accelerator acceptance. Further, the results suggest a positive impact on education. Building on signaling theory, this paper argues and shows that accelerators do not evaluate applicants uniformly. Practical implications Our comparative study enhances business owners’ insight for application to entrepreneurial resources and has meaningful implications for women’s entrepreneurship. For policy-making purposes, this study offers more insight on economic development for entrepreneurs’ access to global resources. Originality/value Despite the extant literature demonstrating the benefits of accelerators, determinants of acceptance to these programs, particularly at the individual level, are underexplored. This is the first study that shows the rarely acknowledged link between a lead founder’s country of birth, gender and education level on accelerator acceptance. Here, this study extends entrepreneurship literature and shows some sources of variation in access to international accelerator programs.


2016 ◽  
Vol 27 (4) ◽  
pp. 434-459 ◽  
Author(s):  
Alexander Buoye ◽  
Yuliya Komarova Loureiro ◽  
Sertan Kabadayi ◽  
Mohammad G. Nejad ◽  
Timothy L. Keiningham ◽  
...  

Purpose – The satisfaction and loyalty research argues that customer satisfaction is an antecedent to share of wallet (SOW). The double jeopardy view, however, argues that satisfaction and SOW levels are driven exclusively by penetration levels. Customer satisfaction and penetration, however, are not always positively related. The purpose of this paper is to explore the relevance and validity of these two divergent perspectives to creating growth in customer share of spending. Design/methodology/approach – The authors examine a series of models evaluating the impact of both the relative penetration of a brand, and the satisfaction ratings of its customers on SOW using data covering 11 industry sectors, 188 brands, and 4,263 customers. Findings – The authors find that part of the problem in reconciling these two views has been in how satisfaction is measured and analyzed. When using absolute satisfaction ratings of the firm/brand, the explanatory power of satisfaction on SOW is very weak at both the individual and firm level. When using satisfaction metrics relative to other competing brands, however, satisfaction is a strong predictor of customers’ share of category spending. Research limitations/implications – As predicted by double jeopardy, penetration is a strong predictor of firm-level SOW, but has almost no explanatory power at the individual level. Practical implications – Managers need to focus on both improving penetration/reach and becoming the preferred brand in a customer’s usage set. Originality/value – The research examines if (and if yes, how) satisfaction and penetration contribute to customers’ SOW allocations both at the individual and brand level.


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