Income inequality

2017 ◽  
Vol 6 (1) ◽  
pp. 2-10 ◽  
Author(s):  
Robert Alan Baron

Purpose The purpose of this paper is to explain why (based on an extensive body of research findings) efforts to reduce income inequality may have negative effects on motivation and the desire to excel. Design/methodology/approach This paper presents the author’s personal perspective on income inequality and efforts to reduce it. However, these views are grounded in extensive literature concerning the nature of “fairness,” and the harmful effects of weakening the link between performance or effort on the one hand, and rewards on the other. Breaking this connection may be especially harmful for entrepreneurs, who have strong beliefs that the hard they work in building their new ventures, the more likely are these companies to be successful. Findings The paper presents what, it is hoped, provides a broadened framework within which to examine the causes and income inequality, definitions of “fairness,” and the potential effects of efforts to reduce such inequality. Practical implications By weakening the relationship between performance and rewards, efforts to reduce income inequality involving large tax increases may weaken the relationship between performance (accomplishment) and rewards, thus reducing motivation to work hard and achieve excellence. Social implications Understanding the negative implications of government-funded programs designed to reduce income inequality helps to clarify the potentially detrimental effects of such programs – effects that are neither intended not expected by proponents of such efforts. Originality/value The effects of efforts to reduce income inequality have not previously been examined in the context of their negative implications for human motivation to work hard and attain excellence in any endeavor – implications suggested by a large body of relevant research.

2015 ◽  
Vol 115 (1) ◽  
pp. 88-106 ◽  
Author(s):  
Shuchih Ernest Chang ◽  
Anne Yenching Liu ◽  
Sungmin Lin

Purpose – The purpose of this paper is to evaluate privacy boundaries and explores employees’ reactions in employee monitoring. Design/methodology/approach – The research used the metaphor of boundary turbulence in the Communication Privacy Management (CPM) theory to demonstrate the psychological effect on employees. The model comprised organizational culture, CPM, trust, and employee performance in employee monitoring to further investigated the influence exerted by organizational culture and how employees viewed their trust within the organization when implementing employee monitoring. Variables were measured empirically by administrating questionnaires to full-time employees in organizations that currently practice employee monitoring. Findings – The findings showed that a control-oriented organizational culture raised communication privacy turbulence in CPM. The communication privacy turbulence in CPM mostly had negative effects on trust in employee monitoring policy, but not on trust in employee monitoring members. Both trust in employee monitoring policy and trust in employee monitoring members had positive effects on employee commitment and compliance to employee monitoring. Research limitations/implications – This research applied the CPM theory in workplace privacy to explore the relationship between employees’ privacy and trust. The results provide insights of why employees feel psychological resistance when they are forced to accept the practice of employee monitoring. In addition, this study explored the relationship between CPM and trust, and offer support and verification to prior studies. Practical implications – For practitioners, the findings help organizations to improve the performance of their employees and to design a more effective environment for employee monitoring. Originality/value – A research model was proposed to study the impacts of CPM on employee monitoring, after a broad survey on related researches. The validated model and its corresponding study results can be referenced by organization managers and decision makers to make favorable tactics for achieving their goals of implementing employee monitoring.


2014 ◽  
Vol 18 (1) ◽  
pp. 22-35 ◽  
Author(s):  
Domenico Celenza ◽  
Fabrizio Rossi

Purpose – The aim of this paper is to investigate the relationship between corporate performance and Value Added Intellectual Coefficient (VAICTM) on the one hand, and the relationship between the variations in market value and the variations in VAIC on the other hand. Design/methodology/approach – Starting from the VAIC model, 23 Italian listed companies were examined with the aim of investigating the relationship between VAIC and the performance of the firms in the sample. The analysis was divided into two stages. In the first stage, eight models of linear regression were estimated to verify the presence of a positive and statistically significant relationship between M/BV and VAIC and between accounting performance indicators (ROE, ROI, ROS) and the VAIC. In the second stage, six other models were tested, considering as an independent variable the variations in VAIC and the variations in profitability indicators. Findings – The outcomes of the application stress the importance of VAIC in the explanation of the variations in MV and its role as “additional coefficient” in the analysis of equity performance. Originality/value – This methodology highlights some very interesting aspects. In particular, whereas the relationship between M/BV and VAIC and between profitability indicators (ROI, ROE, ROS) and VAIC is statistically insignificant, the subsequent analysis highlights the importance of VAIC as a variable capable of increasing the explanatory power of the regression in a cross-sectional perspective.


2019 ◽  
Vol 46 (3) ◽  
pp. 591-610 ◽  
Author(s):  
Sima Siami-Namini ◽  
Darren Hudson

PurposeThe purpose of this paper is to explore the effect of growth in different sectors of the economy of developing countries on income inequality and analyze how inflation, as a proxy for monetary policy, makes a proportionate contribution for setting a binding national target for reducing income inequality. The paper examines the existence of a linear or nonlinear effect of inflation and sectoral economic growth on income inequality using a balanced panel data of 92 developing countries for the period of 1990–2014.Design/methodology/approachMethods section includes several steps as below: first, the functional form of the model using panel data for investigating the contribution of economic sectors in income inequality; second, to estimate the relationship between income inequality and sector growth: testing the Kuznets hypothesis; third, to estimate the relationship between inflation and income inequality base on general functional form of the model proposed by Amornthum (2004); fourth, a panel Granger causality analysis based on a VECM approach.FindingsThe statistically significant finding shows that first agricultural growth and then industrial growth have a dominate impact in reducing income inequality in our sample. But, the service sector growth has positive effects. The results confirm the existence of Kuznets inverted “U” hypothesis for industry growth and Kuznets “U” hypothesis for service sector growth. The findings show that sector growth and inflation affect income inequality in the long-run.Originality/valueThis research is an original paper which analyzes the effect of growth in different sectors of the economy of developing countries (agriculture, manufacturing and services sectors) on income inequality and test the Kuznets hypothesis in terms of sector growth and at the same time, examine the existence of a linear/nonlinear effect of inflation and sectoral economic growth on income inequality and test Granger causality relationship between income inequality and sector growth and inflation.


2020 ◽  
Vol 27 (5) ◽  
pp. 727-747
Author(s):  
Wenqing Wu ◽  
Hongxin Wang ◽  
Fu-Sheng Tsai

PurposeThis study analyses the relationship between the networks of business incubators (BIs) and new venture performance. It proposes an integrated model for identifying the influence of BIs' internal and external networks on new venture performance through the entrepreneurial orientation (EO) and environmental dynamism.Design/methodology/approachThe study uses multiple regression analysis on a sample of 205 new ventures in Chinese BIs.FindingsBoth the internal and external networks of BIs positively affect new venture performance and EO has a mediating effect in this relationship. Environmental dynamism plays a positive moderating role in the relationship between BIs' internal and external networks and EO.Practical implicationsBased on the results of this study, incubator managers should focus on creating internal and external networks and leveraging network embeddedness to influence new venture performance. Further, new ventures should focus on strengthening their EO and fully consider the impact of environmental dynamism on EO implementation.Originality/valueTo address the research gaps in understanding how BI networks can support new venture growth, this study integrates BIs' internal and external networks and explores their impacts on new venture performance using co-production theory and the resource-based view. It thus opens the black box on how BI's networks affect performance from the EO perspective. Moreover, this study fully clarifies chain relationships by identifying and analysing the moderating role of environmental dynamism.


2018 ◽  
Vol 47 (6) ◽  
pp. 1244-1260 ◽  
Author(s):  
Nishtha Malik

Purpose The purpose of this paper is to investigate the relationship between authentic leadership and contextual performance of nursing staff while considering the mediating effect of psychological capital and moderating effect of autonomy on this association. Design/methodology/approach Data were gathered from 41 small and medium-sized hospitals situated in the state of Uttarakhand, India. The sample for the study included 530 nurses and their 146 supervisors. Process macro (Hayes) was used to examine the influence of authentic leadership on contextual performance and the mediating effect of psychological capital and moderating role of autonomy in the relationship between authentic leadership and contextual performance. Findings Results indicate that authentic leadership is positively linked to contextual performance of nurses. Furthermore, psychological capital is found to mediate the relationship between authentic leadership and contextual performance while autonomy acts as a moderator between psychological capital and contextual performance. Practical implications Findings of this investigation would help healthcare managers to understand the importance of developing the psychological capital of healthcare workers. The paper draws attention of hospital administrators toward the need for setting up an appropriate environment wherein nurses are given a certain degree of autonomy to perform their task more effectively. This study also highlights the importance of an effective leadership style, namely authentic leadership in influencing contextual performance in service-oriented organizations such as healthcare institutions, as investigated in this study. Originality/value While extensive literature is available on authentic leadership and its impact on followers’ behavior, very little work seems to have been done to show a linkage between authentic leadership and contextual performance, especially in the context of nurses in developing country such as India. This work, therefore, may be considered original and of significant value in understanding the relationships between the various constructs in the Indian scenario.


2020 ◽  
Vol 41 (3) ◽  
pp. 463-479
Author(s):  
Guo Qiuyun ◽  
Wenxing Liu ◽  
Kong Zhou ◽  
Jianghua Mao

PurposeThe authors examined the relationship between leader humility and employee organizational deviance. They also tested the mediating effects of personal sense of power and the moderating effects of organizational identification on this relationship.Design/methodology/approachThe authors tested their hypotheses using a sample of 186 employees from an information technology (IT) enterprise in China. They used hierarchical regression and bootstrapping analyses to test for direct and indirect relationships.FindingsSense of power mediated the effect of leader humility on organizational deviance and organizational identification moderated the effect of sense of power on organizational deviance. In addition, organizational identification mediated the indirect effect of leader humility on organizational deviance via sense of power. Thus, employees who demonstrate high organizational identification may not conduct organizational deviant behavior, even if they have a high sense of power.Practical implicationsOrganizations should explore and practice effective leader humility. Selection and training programs should be developed to choose humble leaders and teach them how to exhibit moderate humility.Originality/valueThe authors contribute to the literature by revealing the negative effects of leader humility in Chinese culture. They find support for their hypotheses that employee sense of power mediates the relationship between leader humility and employee organizational deviance and that this relationship is weaker when employee organizational identification is higher. This clarifies how and why leader humility stimulates employee organizational deviance.


2017 ◽  
Vol 22 (4) ◽  
pp. 419-435 ◽  
Author(s):  
Joana Kuntz ◽  
Philippa Connell ◽  
Katharina Näswall

Purpose The purpose of this paper is to investigate the independent and joint effects of regulatory focus (promotion and prevention) on the relationship between workplace resources (support and feedback) and employee resilience. It proposed that, at high levels of resource availability, a high promotion-high prevention profile would elicit the highest levels of employee resilience. Design/methodology/approach An online survey was completed by 162 white collar employees from four organisations. In addition to the main effects, two- and three-way interactions were examined to test hypotheses. Findings Promotion focus was positively associated with employee resilience, and though the relationship between prevention focus and resilience was non-significant, both regulatory foci buffered against the negative effects of low resources. Employees with high promotion-high prevention focus displayed the highest levels of resilience, especially at high levels of feedback. Conversely, the resilience of low promotion-low prevention individuals was susceptible to feedback availability. Practical implications Employee resilience development and demonstration are contingent not only on resources, but also on psychological processes, particularly regulatory focus. Organisations will develop resilience to the extent that they provide workplace resources, and, importantly, stimulate both promotion and prevention perspectives on resource management. Originality/value This study extends the research on regulatory focus theory by testing the joint effects of promotion and prevention foci on workplace resources, and the relationship between regulatory foci and employee resilience.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manting Deng ◽  
Hefu Liu ◽  
Qian Huang ◽  
Guanqi Ding

PurposeOrganisations have widely adopted enterprise social media (ESM) to improve employees' task performance. This study aims to explore the mediating role of perceived task structure on the relationship between ESM usage and employee task performance. The authors investigate the moderating effects of perceived team diversity on the relationship between ESM usage and perceived task structure.Design/methodology/approachThe authors conducted a questionnaire survey in China on 251 working professionals who use social media in their respective organisations.FindingsResults showed that employees' perception of task structure considerably mediates the relationship between ESM usage and task performance. Findings also confirmed that perceived team diversity negatively affects the relationship between ESM usage and perceived task interdependence.Research limitations/implicationsPractitioners and/or managers should pay attention to the effect of ESM usage on employee's perceived task structure. Furthermore, they should focus on the level of team diversity when adopting ESM to enhance task performance.Originality/valueThis study contributes to the knowledge of perceived task structure in explaining the effect of ESM usage on task performance based on communication visibility theory. This work presents the relationship among ESM usage, perceived task structure, perceived team diversity and task performance. Moreover, this research enriches the literature on ESM usage by investigating the moderating roles of perceived team diversity whilst presenting the negative effects of perceived team diversity.


2019 ◽  
Vol 13 (4) ◽  
pp. 840-859 ◽  
Author(s):  
Yong Wu ◽  
Linqian Zhang ◽  
Zelong Wei ◽  
Mingjun Hou

Purpose This paper aims to explore the effects of holistic cognition frame on novelty-centered business model design and efficiency-centered business model design. Moreover, the authors consider how these effects differ in new ventures vs established firms. Design/methodology/approach The authors use survey data to testify the hypotheses based on a database of 204 firms in China. Then, regression analysis is used to examine the relationship between holistic cognition frame and business model design. They also explore the contingency effects of new ventures and established firms on the relationships. Findings The authors find that the holistic cognition frame has a positive effect on efficiency-centered business model design, whereas it has an inverse U-shaped effect on novelty-centered business model design. Furthermore, they find that the effects of holistic cognition frame on efficiency-centered business model design and novelty-centered business model design are different in established firms and new ventures. Originality/value This work offers new insights into the effects of holistic cognition frame on business model design and provides useful suggestions for firms to promote business model design.


2020 ◽  
Vol 41 (6) ◽  
pp. 81-84
Author(s):  
Peter Buell Hirsch

Purpose The purpose of this paper is to highlight the ways in which long running secular trends and the COVID-19 pandemic have combined to re-energize labor movements and pushed political thinking to the left. Design/methodology/approach A review of emerging trends in public opinion and labor action to identify some critical tipping points. Findings There is a critical shift unfolding in which government intervention to stem income inequality is becoming politically acceptable. Originality/value To the best of the author’s knowledge, there have been few, if any comparable discussions of the relationship between the impact of the COVID-19 pandemic and the political will to stem income inequality and the implications for corporate behavior.


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