Employee involvement in decision-making: the more the better?

2019 ◽  
Vol 40 (4) ◽  
pp. 768-782 ◽  
Author(s):  
Xiaowen Tian ◽  
Xiaoxuan Zhai

Purpose The purpose of this paper is to relate participative decision-making (PDM) to organizational learning, and examine the impact of PDM on organizational performance. Design/methodology/approach The paper integrates the resource-based theory with organizational learning theory to develop a framework, and distinguishes PDM in which decisions are jointly made by employees and managers from employee decision-making (EDM) in which decisions are completely in the hands of employees. The paper incorporates an augmented Cobb–Douglass production function into a structural equation model to estimate the performance impact of PDM and EDM. Findings The paper tests the framework against firm-level data form China, and finds that PDM provides an opportunity for collective learning, and has a positive relationship with productivity-based profit gains; the positive relationship is stronger in firms whose management has greater accumulated knowledge and experience; EDM fails to provide an opportunity for collective learning, and has a negative relationship with productivity-based profit gains. Originality/value Prior research focused on the role of PDM in enhancing the motivation and performance of individual employees, considered the degree of employee involvement as a continuum with the highest being decision-making “completely in the hands of employees,” and concluded that the more involved are employees in decision-making the better. This paper relates PDM to organizational performance, and challenges this conventional view from an organizational learning perspective.

2019 ◽  
Vol 27 (1) ◽  
pp. 73-91
Author(s):  
Rizqa Afqarina ◽  
Fereshti Nurdiana Dihan

This study entitled as “The Impact of Knowledge Management and Organizational Learning on Organizational Performance through Innovation as an Intervening Variable (Case Study on Grand Inna Malioboro Hotel). The purpose of this study is to determine the relationship between knowledge management, organizational learning, innovation, and organizational performance. The samples used in this study are employees who have positions as supervisor, officer, manager, and executive with the number of sample returned is 60 respondents. Data analysis techniques used in this study are Structural Equation Modeling (SEM). The result of this study prove that: (1) There is a significant positive relationship between knowledge management and innovation; (2) There is a significant positive relationship between organizational learning and innovation; (3) There is a positive not significant relationship between knowledge management and organizational performance; (4) There is a positive not significant relationship between organizational learning and organizational performance; (5) There is a significant positive relationship between innovation and organizational learning; (6) The roleinnovation mediates the relationship between knowledge management and organizational performance; (7) and the role innovation mediates the relationship between organizational learning and organizational performance.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bahadur Ali Soomro ◽  
Shahnawaz Mangi ◽  
Naimatullah Shah

PurposeThe study investigates the experience and significance of strategic factors in organizational innovation (OI) and organizational learning (OL). The study also examines the impact of OI and OL on organizational performance.Design/methodology/approachThe study takes a quantitative approach, with cross-sectional data collected to achieve its purpose. The respondents are CEOs of different organizations. The data collection tool, a survey questionnaire, is applied to a random sample. In total, data from 360 usable cases are analyzed to infer the results.FindingsAfter employing structural equation modeling (SEM), the study findings reveal the positive and significant impact of strategic factors on OI and OL, with these factors comprising personal mastery, transformational leadership, a shared vision, proactivity, and the environment. Furthermore, OI and OL have a positive and significant impact on organizational performance.Practical implicationsThe study's findings may reinforce knowledge of the different strategic factors/capabilities needed to attain a satisfactory level of organizational capabilities and, consequently, may increase organizational performance and encourage entrepreneurship. An investigation of these factors may impart benefits to an organization, such as becoming more innovative or providing a boost to learning. Managers of organizations may generate circumstances to make it easier to achieve the growth of these strategic factors/capabilities.Originality/valueThe study's findings may help to develop a better understanding of strategic factors, OI, OL, and organizational performance, particularly in a developing country context.


2019 ◽  
Vol 27 (1) ◽  
pp. 75-93
Author(s):  
Rizqa Afqarina ◽  
Fereshti Nurdiana Dihan

This study entitled as “The Impact of Knowledge Management and Organizational Learning on Organizational Performance through Innovation as an Intervening Variable (Case Study on Grand Inna Malioboro Hotel). The purpose of this study is to determine the relationship between knowledge management, organizational learning, innovation, and organizational performance. The samples used in this study are employees who have positions as supervisor, officer, manager, and executive with the number of sample returned is 60 respondents. Data analysis techniques used in this study are Structural Equation Modeling (SEM). The result of this study prove that: (1) There is a significant positive relationship between knowledge management and innovation; (2) There is a significant positive relationship between organizational learning and innovation; (3) There is a positive not significant relationship between knowledge management and organizational performance; (4) There is a positive not significant relationship between organizational learning and organizational performance; (5) There is a significant positive relationship between innovation and organizational learning; (6) The role innovation mediates the relationship between knowledge management and organizational performance; (7) and the role innovation mediates the relationship between organizational learning and organizational performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Regina Lenart-Gansiniec ◽  
Wojciech Czakon ◽  
Massimiliano Matteo Pellegrini

Purpose This study aims to identify context-specific antecedents to schools’ absorptive capacity (AC) and to show how those can enact “a virtuous learning circle.” Design/methodology/approach The study uses a mixed method: an exploration based on semi-structured interviews with educational experts; the development of a measurement scale and a partial least squares structural equation modelling to test the impact of the antecedents. Findings The results yielded four empirically-grounded antecedents and their measurement scales, namely, prior knowledge, employees’ skills, educational projects and interactions with the environment (Studies one and two). All antecedents are significantly and positively related to AC processes (study three). Using the organizational learning theory perspective, the results have been interpreted as an AC “virtuous learning circle.” Practical implications With increasing pressures to adapt, a case of which was the COVID-19 pandemic, schools can greatly benefit from absorbing knowledge flows. This suggests the construction a favourable environment for AC. To this end, the individual (employees’ prior knowledge and skills), organizational (educational projects) and institutional level of managerial action (interactions with the environment) can be effective when create a recursive organizational learning circle. In addition, this study offers an expert-validated measurement scale for self-assessment of a school’s specific contingencies, and thus, for planning of punctual interventions to develop AC. Originality/value This study advances the existing body of knowledge management in the educational context by rigorously identifying and validating a scale for measuring the antecedents of AC and developing an interpretive approach to the AC “virtuous circle.”


2018 ◽  
Vol 30 (2) ◽  
pp. 1016-1034 ◽  
Author(s):  
Said Elbanna ◽  
Tamer H. Elsharnouby

Purpose The purpose of this study is to address a timely research question by clarifying whether formal planning is a worthy approach for hotels. In so doing, the authors developed a theoretical model that extends prior research by exploring how the formal planning process influences organizational capabilities and decision-making style. The model also examines the impact of the three identified factors on planning effectiveness. Design/methodology/approach Data were collected from 175 hotels located in United Arab Emirates (UAE) and Qatar and hypotheses were tested using structural equation modeling (SEM). Findings The study concludes that the practice of formal planning in the tourism sector does matter and both organizational capabilities and decision-making style are important factors in predicting planning effectiveness. Research limitations/implications Generalizations to organizations operating in other sectors, such as manufacturing or government sectors, should be drawn cautiously. Practical implications Taking into account oil price volatility and serious political crises in the region, this study provides several insights to hotel managers into how the formal planning process can influence planning effectiveness. Originality/value The findings enrich the debate on the role of formal planning in the tourism sector, which has been relatively devoid of similar studies.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anastasia A. Katou

PurposeThe purpose of this study is to investigate the impact of high-performance work systems (HPWS) on organizational performance through the mediating role of human resources (HR) flexibility (expressed by functional flexibility, skills malleability and behavioural flexibility).Design/methodology/approachThe study examines theoretical relationships in the Greek context, which reflects changing economic and financial crisis, based on multilevel structural equation modelling estimation, using three waves of sample data collected in years 2014, 2016 and 2018 from organizations operating in the private sector.FindingsThe study finds that although HPWS positively influences all three HR flexibility dimensions, this positive effect is not transferred equally to organizational performance. The dominant effect on organizational performance is attributed to skills malleability, a smaller effect to behavioural flexibility and a negligible effect to functional flexibility.Research limitations/implicationsAlthough the data collected refer to three different years, most of the companies and individuals responded to sampling were different. As such, the study does not allow for dynamic causal inferences due to its quasi-longitudinal nature.Practical implicationsThe findings of this study may influence managerial decisions in developing bundles of HPWS policies and practices in relation to HR flexibility attributes.Originality/valueSince most studies consider HR flexibility as an aggregated construct, this study is possibly one of the very few studies that is examining the differential impact of the HR flexibility dimensions on organizational performance in turbulent times.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bekir Bora Dedeoğlu ◽  
Anil Bilgihan ◽  
Ben Haobin Ye ◽  
Yajun Wang ◽  
Fevzi Okumus

Purpose The purpose of this paper is to examine the impact of social media sharing on tourists’ willingness to pay more (WPM) at destinations. The moderating effects of tourists’ preferred route in decision-making or obtaining information (i.e. central or peripheral routes) were also examined. Design/methodology/approach A theoretical model was developed and tested using partial least squares structural equation modeling (PLS-SEM). Moderating effects of central and peripheral routes were tested using PLS multi-group analysis. Data were collected from 478 tourists in Antalya, Turkey, a sea, sun and sand tourist destination. Findings Findings indicate that importance attached to participant sharing (IPS) and importance attached to non-participant sharing (INPS) are significant antecedents of tourists’ WPM intentions. Moderating effects of tourists’ preferred route in decision-making reveal that the effect of IPS on WPM intention is more influential for those with high central route preferences than those with low central route preferences. While the effects of INPS and IPS on WPM intention is more determinative for those with higher peripheral route preferences. Practical implications Although it is known by the practitioners that consumer-generated contents are important, this research suggests and supports that these contents trigger tourists to pay higher prices. Originality/value How WPM is motivated by others’ social media sharing was not very clear in the literature. Therefore, this research gap was addressed in part by examining the social media sharing structure in terms of whether others posted on organization-related sites or on personal sites.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Srinivasan P.

Purpose The purpose of this paper is to analyze the impact of knowledge management (KM) in terms of organizational performance using structural equation modeling. To enhance organizational performance, KM is used as a powerful strategic tool. The factors such as management commitment, leadership and organizational culture are the KM enabler’s conditions, and the step processes of KM are knowledge capture, creation, organizing/storing and transfer, and through this, KM is analyzed on organizational performance in the context of leathers manufacturing company. This study constructs with questionnaire consist of 34 variables. Design/methodology/approach There are about 101 samples that were collected through the questionnaire survey method in the leather companies in Ranipet. The data were collected from executives and associates in the leather companies. Data were analyzed using the SPSS tool and SMART PLS tool used for framing a research model and the hypothesized relationships were tested through partial least squares structural equation modeling technique. Findings The finding of this study is mandatory to implement a structured KM practice in the leather companies. Application of KM is quite an impact on organizational performance, which leads to profitability and productivity. Originality/value This is the first paper to empirically investigate the KM enablers, process and support for the role of KM practices at leather industry. Further, the positioning of KM practices as a strategic competitive tool can be considered as an influential factor to organizational performance.


2019 ◽  
Vol 34 (8) ◽  
pp. 1706-1723 ◽  
Author(s):  
Ana Cristina Ferreira ◽  
Marcio Lopes Pimenta ◽  
Paraskeva Wlazlak

Purpose The purpose of this paper is to develop a model to predict the antecedents of the integration level among marketing, logistics and production, considering the influence of formal and informal factors that generate integration and the existence of conflicts. Design/methodology/approach A survey of 179 participants from all regions of Brazil was conducted. A parsimonious model including four dimensions and 34 variables was developed through confirmatory factor analysis and structural equation modeling. Findings The field data corroborate studies dealing with the impact of various formal and informal integration factors on the cross-functional integration level as a construct. Furthermore, this paper concludes that the level of cross-functional can be defined as: the intensity of the relationship among internal functions which can be measured by the mutual existence of formal and informal factors and the absence of manifest conflicts. Research limitations/implications The findings of this paper cannot be generalized because of the convenience sampling. Future research could apply a probabilistic sampling and try to explore other geographical settings in both national and international contexts. Practical implications The proposed model can generate important information for managers by pointing out variables that can predict the integration level and their impacts on the organizational performance. The paper concludes with examples about how the model could be useful in several practical situations. Originality/value This paper proposes a model with reasonable accuracy to predict the integration level and overcomes prior research limitations with respect to models to predict the antecedents of the integration level, particularly the role of conflicts in the integration processes.


2015 ◽  
Vol 36 (7) ◽  
pp. 1012-1033 ◽  
Author(s):  
Anastasia A. Katou

Purpose – The purpose of this paper is to investigate the impact of human resource management (HRM) systems (expressed by content, process and climate) on organizational performance through the mediating role of psychological contracts (expressed by employer and employee promises fulfilment). Design/methodology/approach – The study examines theoretical relationships in the Greek context, based on structural equation modelling (SEM) estimation, using a sample of employees from both private and public sector organizations. Findings – The study finds that the impact of HRM content on organizational performance is less strong compared to its impact through HRM process. Additionally, the study finds that psychological contract partially and positively mediates the HRM – performance relationship, where the impact of HRM on organizational performance through employee promises fulfilment is stronger than that through employer promises fulfilment. Research limitations/implications – The study does not allow for appropriately investigating dynamic causal inferences due to the cross-sectional nature of data. Additionally, considering that Greece is experiencing a severe economic and financial crisis, the findings from this unique context may not generalize across borders. Practical implications – For improving organizational performance, managers and decision makers should make their HRM systems more visible, understandable, legitimate and relevant. At the same time they should make HRM systems more instrumental, valid and consistent of HR messages. Originality/value – Investigations into the relationship between HRM systems and organizational performance have become increasingly common. Nevertheless, empirical studies that measure the influence of HRM systems, which integrate both content and process, on organizational performance are still rare. This paper partially fills this gap.


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