Performance feedback and organizational learning: the role of regulatory focus

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shinhye Ahn ◽  
Cecile K. Cho ◽  
Theresa S. Cho
Keyword(s):  
Organizational Learning ◽  
Performance Feedback ◽  
Learning Process ◽  
Regulatory Focus ◽  
Strategic Change ◽  
Managerial Compensation ◽  
Strategic Decisions ◽  
Content Type ◽  
Top Managers

PurposeThis study investigates how a firm's regulatory focus (i.e. promotion and prevention foci) affects growth- and efficiency-oriented strategic change, highlighting the role of organizational-level regulatory focus as a cognitive frame within which to interpret performance feedback and its subsequent effects on strategic decisions.Design/methodology/approachThe authors collected longitudinal data on 98 S&P 500 manufacturing firms for a seven-year period. The panel data, which includes texts from the firms' 10-K filings, were then analyzed using a feasible generalized least squares (FGLS) regression estimator to test the authors’ hypotheses.FindingsA firm's strategic change orientation is affected by its regulatory focus and performance feedback: a promotion focus increases the magnitude of growth-oriented strategic change, while a prevention focus favors efficiency-oriented strategic change. Furthermore, both foci moderate the effect of performance feedback on the strategic change orientation: under negative performance feedback, a promotion (prevention) focus increases (decreases) the magnitude of growth-oriented strategic change relative to that of efficiency-oriented change. The findings provide robust evidence that regulatory focus can influence how organizations learn from feedback and formulate strategic change.Research limitations/implicationsThe authors’ examination of regulatory focus and organizational learning process relied on large manufacturing firms in the USA. However, learning process could be quite different in small and/or young firms. Future work should expand to a wider range of organizational types, such as nascent entrepreneurial ventures. In addition, the authors’ measurement of regulatory focus using corporate text has inherent weakness and could be supplemented with alternative research methods, such as surveys, interviews or experiments. All in all, however, the findings of this study offer a novel behavioral perspective while demonstrating that a regulatory focus is an important antecedent of organizational learning.Practical implicationsThis study highlights the importance of motivational characteristics of the top managers in the process of organizational learning from performance feedback. Furthermore, recruitment of a new top manager should be aligned with the organizational context, values and goals. In addition, corporate governance systems such as managerial compensation schemes need to be carefully designed so as to maximize organizational resilience, especially in the context of performance downturn or environmental change. Establishing a constructive organizational culture so that strategic decisions are not overly swayed by the performance outcomes would also be crucial to the organizational learning process.Social implicationsThis study highlights the importance of understanding the motivational orientations of top managers in organizational learning. In terms of managerial compensation, for instance, an optimal incentive system should reflect the desired performance output by encouraging managerial behavior that corresponds to its objective. Furthermore, motivational orientation of new recruits should be considered in the context of the composition of the top management team members in order to achieve “optimal fit.” In addition, this study suggests that top executives' regulatory focus can be a key factor for organizations in balancing goals of different value orientations.Originality/valueThe findings of this study demonstrated that a firm-level regulatory focus has a significant effect on organizational learning and strategic change following performance feedback. The authors hope this study provides an impetus for future discussions on the microcognitive mechanisms of organizational learning by exploring the relations between organizations' regulatory foci, performance feedback and strategic change orientations.

Mediating effect of organizational learning and moderating role of environmental dynamism on the relationship between strategic change and firm performance

2019 ◽  
Vol 12 (2) ◽  
pp. 275-297 ◽  
Author(s):  
Haruna Isa Mohammad
Keyword(s):  
Organizational Learning ◽  
Firm Performance ◽  
Strategic Change ◽  
Developed Countries ◽  
Mediating Effect ◽  
Environmental Dynamism ◽  
Content Type ◽  
The Relationship ◽  
Moderating Role

Purpose With the materialization of literature on strategic change, it is clear that organizational learning and organizational dynamism have been among the most notable areas of study. The purpose of this paper is to extend the literature on strategic management by examining the mediating effects of organizational learning and the moderating role of environmental dynamism on the relationship between strategic change and firm performance. Design/methodology/approach A survey questionnaire was administered to 650 respondents who were both corporate and business-level managers of 22 main deposit money banks (commercial banks) and their branches across the country. In total, 630 questionnaires were returned and 587 were used after following all the processes of data preparation. Path analysis was employed to test the hypotheses in this study using Smart PLS 3. Findings The study found a significant mediating effect of organizational learning on the relationship between strategic change and firm performance. Although no significant moderating role of environmental dynamism was found, the directions of the path coefficients are consistent with the hypothesis. All the relationships between the constructs are significant. Research limitations/implications It is paramount for managers to understand the type of environment and learning that fits diverse kinds of strategic changes in order to improve firm performance. It is evident that changes that are not proactive and generative organizational learning may seem dangerous for a firm. However, organizations should learn to incorporate the change to be able to compete in a dynamic competitive environment. Originality/value Prior studies on strategic change, environmental dynamism and organizational learning have mainly focused on manufacturing and construction industries in the developed countries, but less has been done in the service sector, particularly the banking organizations in developing countries. Nigeria is one of those countries. Therefore, this study focuses on the links between strategic change and firm performance, moderating role of environmental dynamism and the mediating effect of organizational learning within the context of the Nigerian deposit money banks.

Motivated to change? TMT regulatory focus and strategic change

2016 ◽  
Vol 39 (7) ◽  
pp. 803-829 ◽  
Author(s):  
Philip T. Roundy ◽  
Ye Dai ◽  
Mark A. Bayer ◽  
Gukdo Byun
Keyword(s):  
Regulatory Focus ◽  
Strategic Change ◽  
Deep Level ◽  
Negative Relationship ◽  
Past Research ◽  
Status Quo ◽  
Content Type ◽  
Psychological Determinants ◽  
Top Managers ◽  
The Status

Purpose This paper aims to introduce the concept of top management team (TMT) regulatory focus to explain the differences in executive motivation. Upper echelons research has demonstrated that top managers’ willingness to deviate from their current strategies is a key determinant of organizational success. However, it is not clear why some TMTs are motivated to embrace strategic change while others are motivated to favor the strategic status quo. Design/methodology/approach Recent work in the psychology of motivation is used to develop a conceptual model explaining how the regulatory focus of TMTs can impact their outlooks toward strategic change. Findings It is theorized that there is a positive (negative) relationship between promotion (prevention)-focused TMTs and strategic change. It is also theorized that executives’ performance aspirations, firm maturity and the stability of the environment will influence the relationship between regulatory focus and strategic change. Originality/value Although the theoretical explanations provided by past research on top manager motivation are psychological in their general focus, with few exceptions research has not sought to understand the specific deep-level, socio-cognitive characteristics that shape executives’ perceptions of strategic change. By developing an understanding of the psychological determinants of strategic change, as well as the interplay between these determinants and firm- and environment-level factors, this paper represents a step in the direction of explaining why some TMTs are motivated to embrace strategic change while others seem “locked-in” to the status quo.

The impact of goal (non)attainment on consumer preference through changes in regulatory focus

2018 ◽  
Vol 52 (3/4) ◽  
pp. 637-655 ◽  
Author(s):  
Danielle Mantovani ◽  
Eduardo B. Andrade ◽  
Paulo H.M. Prado
Keyword(s):  
Performance Feedback ◽  
Regulatory Focus ◽  
Goal Attainment ◽  
Critical Role ◽  
Goal Pursuit ◽  
Consumer Preference ◽  
Content Type ◽  
Future Events ◽  
The Impact

Purpose Previous research has investigated how performance outcome impacts effort and subsequent goal pursuit. However, little is known about the incidental impact of goal (non)attainment on consumer preference via changes in regulatory focus. This paper aims to suggest that performance feedback has a direct impact on consumers’ regulatory focus, which in turn influences their attitudes and preferences toward future events. Additionally, the authors assess the extent to which emotions arising out of goal (non)attainment play a critical role in the process. Design/methodology/approach In a series of three experiments, this paper demonstrates that goal (non)attainment induces a specific regulatory focus, which in turn interacts with the frame of an upcoming advertisement to impact consumer preference. Findings This research demonstrates that previous goal (non)attainment interacts with the framing of an upcoming message (promotion vs prevention) and impacts consumer preference. The authors also find initial evidence for the role of emotions on the relationship between goal (non) attainment and preferences for regulatory-focused message frames. Practical implications The findings have important implications because they reveal consumers’ preferences after goal (non)attainment. Originality/value This study complements prior research by integrating two research streams (goal pursuit and regulatory focus) to address an open question of whether/how goal (non)attainment impacts message persuasiveness and consumer preference through changes in regulatory focus. Therefore, this research is intended to contribute to the literature by addressing the interacting effects of goal attainment and regulatory focus on consumer decisions and the role of emotions in this process.

Overcoming counter-knowledge through telemedicine communication technologies

2017 ◽  
Vol 31 (7/8) ◽  
pp. 730-745 ◽  
Author(s):  
Jorge Cegarra-Sanchez ◽  
Juan-Gabriel Cegarra-Navarro ◽  
Anthony Wensley ◽  
Jose Diaz Manzano
Keyword(s):  
Learning Process ◽  
Design Methodology ◽  
Communication Technologies ◽  
Regional Hospital ◽  
Potential Contribution ◽  
Exploration And Exploitation ◽  
Negative Effects ◽  
Content Type

Purpose Knowledge acquired from sources of unverified information such as gossip, partial truths or lies, in this paper it is termed as “counter-knowledge.” The purpose of this paper is to explore this topic through an exploration of the links between a Hospital-in-the-Home Units (HHUs) learning process (LP), counter-knowledge, and the utilization of communication technologies. The following two questions are addressed: Does the reduction of counter-knowledge result in the utilization of communication technologies? Does the development of counter-knowledge hinder the LP? Design/methodology/approach This paper examines the relevance of communication technologies to the exploration and exploitation of knowledge for 252 patients of a (HHU) within a Spanish regional hospital. The data collected was analyzed using the PLS-Graph. Findings To HHU managers, this study offers a set of guidelines to assist in their gaining an understanding of the role of counter-knowledge in organizational LPs and the potential contribution of communication technologies. Our findings support the proposition that the negative effects of counter-knowledge can be mitigated by using communication technologies. Originality/value It is argued in this paper that counter-knowledge may play a variety of different roles in the implementation of LPs. Specifically, the assignment of communication technologies to homecare units has given them the means to filter counter-knowledge and prevent users from any possible problems caused by such counter-knowledge.

The role of organizational learning in soft regulation of workplace gender equality

2017 ◽  
Vol 39 (3) ◽  
pp. 317-334 ◽  
Author(s):  
Johanna Macneil ◽  
Ziheng Liu
Keyword(s):  
Organizational Learning ◽  
Gender Equality ◽  
Significant Shift ◽  
Policy And Practice ◽  
Content Type ◽  
Large Organization ◽  
Regulatory Processes ◽  
Responsible Government ◽  
Reported Data

Purpose The purpose of this paper is to explain progress, or the lack of it, in achieving workplace gender equality goals prescribed by affirmative action regulation by using concepts from soft regulation and organizational learning. Design/methodology/approach The research design is a longitudinal study (2002-2012) of a critical case, that of a single large organization in the male-dominated steel manufacturing, distribution and mining industries. The case focusses on the evidence about organizational learning to be found in that organization’s reports to government on its activities to promote workplace gender equality. Findings While other factors play a role, the apparent failure of the soft regulation to generate a significant shift in gender equality outcomes may also be attributed to ineffective organizational learning, demonstrated by the absence of systematic reflection within the organization on how to improve workplace gender equality, and the lack of firm targets and external benchmarking. Research limitations/implications Self-reported data may be overstated or incomplete. More research is needed to confirm the nature of the specific learning processes occurring within organizations. Practical implications Absent the advent of hard sanctions in workplace gender equality regulation, the responsible government agencies may find it valuable to focus on ways to encourage target organizations to develop competence in organizational learning. Social implications More effective gender equality regulation may change organizational policy and practice and improve work opportunities for women. Originality/value Rather than concluding that the only alternative, when soft regulation is unsuccessful, is hard regulation, this paper shifts the focus to ways that soft regulatory processes might be improved to strengthen their effect.

The risk associated with strategic decisions: is it a marketing issue?

2019 ◽  
Vol 35 (1) ◽  
pp. 6-8
Author(s):  
Davide Settembre-Blundo ◽  
Alfonso Pedro Fernández del Hoyo ◽  
Fernando Enrique García-Muiña
Keyword(s):  
Design Methodology ◽  
Management Practice ◽  
Current Debate ◽  
Strategic Decisions ◽  
New Approach ◽  
Content Type ◽  
Marketing Function ◽  
Strategic Approach ◽  
Management Perspective

Purpose The purpose of this paper is to analyze the strategic management of risks in companies from a marketing management perspective and to provide some guidance for management practice. Design/methodology/approach This paper presents the authors’ viewpoint, and it conceptualizes a new approach to risk management. Findings The conceptual discussion has opened up a possible new way for enterprises, especially SMEs, to start taking a strategic approach to risk. Originality/value This paper would like to contribute to the current debate on the role of marketing function in managerial practice beyond the classic four Ps.

Impact of regulatory focus on security technostress and organizational outcomes: the moderating effect of security technostress inhibitors

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Inho Hwang ◽  
Sanghyun Kim ◽  
Carl Rebman
Keyword(s):  
Regulatory Focus ◽  
Structural Equation ◽  
Negative Relationship ◽  
Organizational Outcomes ◽  
Equation Model ◽  
Organizational Level ◽  
Moderating Effects ◽  
Content Type ◽  
Individual Personality

PurposeOrganizations invest in information security (IS) technology to be more competitive; however, implementing IS measures creates environmental conditions, such as overload uncertainty, and complexity, which can cause employees technostress, eventually resulting in poor security performance. This study seeks to contribute to the intersection of research on regulatory focus (promotion and prevention) as a type of individual personality traits, technostress, and IS.Design/methodology/approachA survey questionnaire was developed, collecting 346 responses from various organizations, which were analyzed using the structural equation model approach with AMOS 22.0 to test the proposed hypotheses.FindingsThe results indicate support for both the direct and moderating effects of security technostress inhibitors. Moreover, a negative relationship exists between promotion-focused employees and facilitators of security technostress, which negatively affects strains (organizational commitment and compliance intention).Practical implicationsOrganizations should develop various programs and establish a highly IS-aware environment to strengthen employees' behavior regarding IS. Furthermore, organizations should consider employees' focus types when engaging in efforts to minimize security technostress, as lowering technostress results in positive outcomes.Originality/valueIS management at the organizational level is directly related to employees' compliance with security rather than being a technical issue. Using the transaction theory perspective, this study seeks to enhance current research on employees' behavior, particularly focusing on the effect of individuals' personality types on IS. Moreover, this study theorizes the role of security technostress inhibitors for understanding employees' IS behaviors.

Does deal size moderate the effects of board faultlines? Evidence from acquisitions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Daniel Tidbury ◽  
Steven F. Cahan ◽  
Li Chen
Keyword(s):  
Fixed Effects ◽  
Quantitative Research ◽  
Future Research ◽  
Research Approach ◽  
Strategic Decisions ◽  
Negative Effects ◽  
Content Type ◽  
Instrumental Variable Analysis

Purpose Board faultlines, which reflect intrinsic divisions of board members into relatively homogeneous subgroups, are associated with poor firm performance. This paper aims to extend the existing board faultline research by examining how acquisition deal size moderates the negative implications of board faultlines. Design/methodology/approach This paper uses a sample of acquisitions and a quantitative research approach to conduct statistical analysis. Findings Using a sample of acquisitions announced between 2007 and 2016, this paper finds evidence suggesting that strong faultlines are associated with poorer acquisition outcomes in the long-term, but not in the short term. Further, this paper finds that the effect of faultline strength on long-term acquisition outcomes is weaker for larger acquisition deals than smaller acquisition deals. The findings are consistent with deal size moderating the relation between faultlines and acquisition outcomes. Research limitations/implications This paper addresses possible endogeneity through firm fixed effects and instrumental variable analysis. Although this paper provides evidence on the moderating role of deal size in the context of faultlines, future research could examine the role of additional moderators, such as pro-diversity, trust, board leadership and board and task characteristics. Practical implications The findings suggest that boards need to be aware of situations where the negative effects of faultlines are more likely to come to the fore. For example, faultlines are more likely to play a role in more routine, obscure monitoring than for high-profile strategic decisions. Originality/value The study is multidisciplinary as it draws on the management, organizational behaviour and psychology and finance literature. It contributes to the developing literature on faultlines in several important ways. First, this paper supports their view that faultlines have adverse effects on board performance by showing that faultlines negatively impact discrete strategic investment decisions. Second, this paper provides evidence that deals size moderates the faultline-acquisition performance relation, indicating that the role of faultlines is contextual. Third, this paper finds evidence that suggests investors do not factor in board faultlines when responding to acquisition announcements.

HRD practices, employee competencies and organizational effectiveness: role of organizational learning culture

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rama Krishna Gupta Potnuru ◽  
Chandan Kumar Sahoo ◽  
Kalyan Chakravarthy Parle
Keyword(s):  
Organizational Learning ◽  
Human Resource Development ◽  
Organizational Effectiveness ◽  
Learning Culture ◽  
Medium Size ◽  
Content Type ◽  
Organizational Learning Culture ◽  
Employee Competencies ◽  
The Relationship

Purpose This paper aims to examine the moderating role of organizational learning culture (OLC) on the relationship between human resource development (HRD) practices and employee competencies (EC) in enhancing organizational effectiveness (OE). Design/methodology/approach An integrated research model of HRD practices, EC, OE and OLC was developed. The validity of the model is tested by applying structural equation modelling (SEM) approach to data collected from 506 employees working in 4 medium-size cement manufacturing companies. Findings The results confirmed that training and career development had a significant impact on EC, the moderating effect of OLC on the relationship between HRD practices and EC was found significant and there is a significant and positive relationship between EC and employee perceived OE. Originality/value This paper contributes to the HRD literature, integrating HRD practices, OLC and EC. The research is unique as it has applied moderated SEM to test hypotheses of the study.

scholarly journals M&As get another assist: when CEOs add intuition to the decision mix

2019 ◽  
Vol 41 (3) ◽  
pp. 57-65 ◽  
Author(s):  
Hannu Kuusela ◽  
Siiri Koivumäki ◽  
Mika Yrjölä
Keyword(s):  
Decision Making ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Strategic Decisions ◽  
Group Interactions ◽  
Content Type ◽  
Individual Level ◽  
Top Executives ◽  
Positive Effects

Purpose The purpose of this paper is to analyze the use of intuition in successful merger and acquisition (M&A) decisions. M&As are strategic decisions that can create growth, open up new markets and strengthen the company’s position and competence portfolio. Strategic decisions involve, by their very nature, considerable investments and have company-wide and long-lasting implications. At the same time, the decision-makers have access to large amounts of data from various sources, but these data are often uncertain and inaccurate and entail numerous assumptions. Therefore, M&A decisions are only rational to a degree, and emotional elements, such as intuition, likely play a significant role. Design/methodology/approach Acknowledging how critically important, but also how difficult, M&As are, the authors analyzed nine instances (cases) of successful acquisitions, in which the executives believed that the role of intuition was critical. Findings The findings show that intuition in strategic decision-making emerges on three levels: individual, collective and environmental. Practical implications This paper encourages top executives to proactively acknowledge and take advantage of intuition in their strategic decision-making. It proposes a framework to help with these endeavors. Originality/value This paper contributes by highlighting that intuition is not just a factor on an individual level; it can also surface from group interactions as well as the environment. Surprisingly, all the executives interviewed spoke of the positive effects that intuition can have on acquisition decisions. This is in contrast to the dominant view that considers intuition as nonrational and even as a form of bias.

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