Auditor Commitment to Privately Held Clients and its Effect on Value-Added Audit Service

2012 ◽  
Vol 32 (1) ◽  
pp. 113-137 ◽  
Author(s):  
David N. Herda ◽  
James J. Lavelle
Keyword(s):  
Social Exchange ◽  
Social Exchange Theory ◽  
Value Added ◽  
Perceived Support ◽  
Research Model ◽  
Public Accounting ◽  
Exchange Relationships ◽  
Accounting Firms ◽  
Levels Of Service ◽  
Privately Held

SUMMARY This study examines auditor commitment to clients and how it affects the level of value-added audit service (e.g., management letter comments) provided to the clients. Our research model is based on social exchange theory. Using a sample of 204 auditors at two public accounting firms that principally serve privately held clients, we find that perceived fair treatment by the client predicts perceived support from the client, and perceived support predicts auditor commitment to the client. We find that client commitment is positively associated with the extent of value-added audit service provided to the client. The results highlight the important role that perceptions of client fairness play in engendering social exchange relationships between individual auditors and clients. Higher-quality relationships lead to higher levels of service that go beyond the basic requirements of the audit itself.

How the Auditor-Client Relationship Affects the Extent of Value-Added Service Provided to the Client

2012 ◽  
Vol 7 (1) ◽  
pp. P9-P14 ◽  
Author(s):  
David N. Herda ◽  
James J. Lavelle
Keyword(s):  
Value Added ◽  
Public Accounting ◽  
Accounting Firms ◽  
Fair Treatment ◽  
The Core ◽  
Client Relationships ◽  
Client Relationship ◽  
Public Accounting Firms ◽  
Levels Of Service ◽  
The Relationship

SUMMARY This article summarizes our recent study, “Auditor Commitment to Privately Held Clients and its Effect on Value-Added Audit Service” (Herda and Lavelle 2013), which examines how the relationship between individual auditors and their clients affects the extent of value-added services that clients receive. Based on a survey of 204 auditors at two public accounting firms, we find that the auditor-client relationship, measured in terms of the auditor's commitment to the client (i.e., client commitment), develops in response to auditor perceptions of fair treatment and support received from the client. Higher levels of client commitment lead to more value-added services (e.g., management letter comments). The results indicate that auditors' perceptions of client fairness are essential in building strong auditor-client relationships. Stronger relationships yield greater levels of service that go beyond the core audit requirements.

Developmental mentoring, affective organizational commitment, and knowledge sharing in public accounting firms

2018 ◽  
Vol 22 (1) ◽  
pp. 142-161 ◽  
Author(s):  
Mary B. Curtis ◽  
Eileen Z. Taylor
Keyword(s):  
Organizational Commitment ◽  
Knowledge Sharing ◽  
Social Exchange ◽  
Social Exchange Theory ◽  
Reciprocal Relationship ◽  
Affective Organizational Commitment ◽  
Public Accounting ◽  
Accounting Firms ◽  
Content Type ◽  
Public Accounting Firms

Purpose This study aims to examine how public accounting firms can use developmental mentoring to increase knowledge sharing (KS) among employees directly and indirectly through affective organizational commitment. Design/methodology/approach This study uses a survey of public accounting professionals to elicit participants’ demographics and their perceptions of KS, mentoring relationships and organizational commitment in their workplace. Findings The findings support that two categories of challenges found in developmental mentoring, demonstrating dedication and resilience and career goal and risk orientation, are directly associated with increased KS and they, along with a third, measuring up to mentor’s standards, indirectly influence KS through their positive effect on organizational commitment. Applying social exchange theory, these challenges contribute to a reciprocal relationship between the protégé and mentor, which builds the relationship between the protégé and organization. Practical implications This study provides information about developmental mentoring that human resource professionals and managers in public accounting firms can use to address two persistent challenges facing them: increasing employees’ organizational commitment and encouraging employees to share their knowledge with others at work. Originality/value This study examines the concept of developmental mentoring, adopting three categories of mentoring challenges and applying them in the context of public accounting to examine their effect on KS.

The Auditor-Audit Firm Relationship and Its Effect on Burnout and Turnover Intention

2012 ◽  
Vol 26 (4) ◽  
pp. 707-723 ◽  
Author(s):  
David N. Herda ◽  
James J. Lavelle
Keyword(s):  
Social Exchange ◽  
Turnover Intention ◽  
Data Availability ◽  
Perceived Support ◽  
Negative Consequences ◽  
Exchange Relationship ◽  
Exchange Relationships ◽  
Accounting Firms ◽  
Audit Firm ◽  
Organizational Fairness

SYNOPSIS: Auditor burnout is an important issue in public accounting, as burnout has negative consequences for both the auditor and the audit firm. We examine how social-exchange relationships between auditors and their firm affect auditor burnout and turnover intention. Using a sample of 204 auditors at two accounting firms, we find that perceived fair treatment by the firm predicts perceived support from the firm, and perceived support predicts auditor commitment to the firm. We find that commitment is negatively related to auditor burnout and turnover intention and burnout is positively related to turnover intention. We also find that perceived firm fairness is directly associated with reduced levels of auditor burnout and turnover intention. The results underscore the important role that organizational fairness plays in engendering a social-exchange relationship between auditors and their firm, leading to reduced levels of burnout and turnover intention, benefitting both the auditor and the firm. Data Availability: Please contact the first author.

Team Networks and Team Identification: The Role of Leader-Member Exchange

2013 ◽  
Vol 41 (7) ◽  
pp. 1115-1123 ◽  
Author(s):  
KeXin Guan ◽  
ZhengXue Luo ◽  
JiaXi Peng ◽  
Zhen Wang ◽  
HaiTing Sun ◽  
...  
Keyword(s):  
Social Exchange ◽  
Social Identity Theory ◽  
Social Exchange Theory ◽  
Team Identification ◽  
Leader Member Exchange ◽  
Exchange Relationships ◽  
Member Exchange ◽  
The Mean ◽  
The Relationship

We examined the relationship among team networks, leader-member exchange (LMX), and team identification in the workplace. Social network theory, social exchange theory, and social identity theory served as references for our theoretical propositions and analyses. We collected data from a sample of 223 teams of military personnel, serving in the artillery in West China. We found that the team networks had a significant effect on team identification. Further, the variance and the mean for LMX in teams interacted in influencing team identification (β =-.893, p < .01). Our findings indicated that creating productive networks in teams would be useful to enhance team identification, the effect of which may be carried on through to building exchange relationships between leader and follower.

Understanding the changing nature of psychological contracts in 21st century organizations

2016 ◽  
Vol 7 (1) ◽  
pp. 4-35 ◽  
Author(s):  
Carlos-Maria Alcover ◽  
Ramón Rico ◽  
William H. Turnley ◽  
Mark C. Bolino
Keyword(s):  
Social Exchange ◽  
21St Century ◽  
Psychological Contract ◽  
Social Exchange Theory ◽  
Psychological Contracts ◽  
Complex Nature ◽  
Organizational Life ◽  
Exchange Relationships ◽  
Justice Perceptions

In recent years, scholars have increasingly recognized that the theoretical underpinnings of employee-organization relationships (EOR) are in need of further extension in light of recent organizational changes. In prior research, the study of EOR has been based on social exchange theory, and the psychological contract (PC) has played a central role in understanding this crucial aspect of organizational life. The main objective of this paper is to provide an integration of the existing literature by adopting a multiple-foci exchange relationships approach. Specifically, we looked at identification; the quality of relationships and exchanges with the leader, coworkers, and other organizational agents; justice perceptions involving several organizational sources; and perceived organizational, leader, and coworker support to expand our understanding of the PC. Overall, we advocate a multiple-foci exchange relationships approach that will ultimately enable us to develop a more comprehensive understanding of the complex nature of PCs in 21st century organizations.

High Compensation and Unethical Reciprocity

2021 ◽  
pp. 014920632110405
Author(s):  
Long Wang ◽  
Fei Song ◽  
Chen-Bo Zhong
Keyword(s):  
Social Exchange ◽  
Police Officers ◽  
Social Exchange Theory ◽  
Experimental Studies ◽  
Organizational Studies ◽  
Exchange Relationships ◽  
Initial Field ◽  
Ethical Behaviors ◽  
Field Evidence ◽  
Behavioral Games

This research extends social exchange theory by investigating unethical reciprocity induced by high compensation in employee–manager exchange relationships. Two experimental studies based on behavioral games showed that even after employees had reciprocated their managers’ wage offers with commensurate work efforts, managers’ previous compensation decisions still had potent effects on employees’ subsequent ethical behaviors. Specifically, Study 1 showed that high wages led employees to engage in unethical reciprocity to benefit their managers at the expense of honesty. In addition, when managers had the possibility of rewarding employees’ unethical reciprocity, only underpaid employees demonstrated more unethical reciprocity, and high-paid employees were not affected by their potential personal payout. Study 2 replicated Study 1’s results using different designs and behavioral games. Its results consistently showed that high-paid employees were more likely to act dishonestly to advance their managers’ interests, irrespective of their own payouts. Finally, Study 3 complemented our experimental results with initial field evidence, suggesting that higher salaries were positively related to the likelihood of police officers engaging in unethical and illegal actions to help their organization. We discuss our results by applying cross-disciplinary insights on exchange models and compensation to organizational studies.

Colleagues for Life? Post-Employment Citizenship among Big 4 Alumni

2019 ◽  
Vol 33 (3) ◽  
pp. 25-41 ◽  
Author(s):  
Nathan H. Cannon ◽  
David N. Herda ◽  
Thomas M. Puffer
Keyword(s):  
Social Exchange ◽  
Social Exchange Theory ◽  
Citizenship Behavior ◽  
Public Accounting ◽  
Factors Associated ◽  
Big 4 ◽  
Firm Commitment ◽  
Underlying Mechanisms

SYNOPSIS Using a sample of 2,533 Big 4 alumni, we examine factors associated with alumni's proclivity to benefit their former firm (post-employment citizenship). Based on social exchange theory, we predict and find that alumni who perceive their firm treated them fairly and adequately supported them during their time with the firm are more inclined to engage in post-employment citizenship. We provide theoretical and practical contributions to the literature by also investigating the role of post-employment experiences on alumni's commitment to the firm and citizenship behavior. Although we predict and find that firm commitment decreases after individuals exit the firm, we find that formal and informal alumni outreach activities appear to help mitigate this decline. Although most prior research on public accounting alumni models “alumni affiliation” as a binary trait, we illustrate that the nature and quality of alumni affiliation is variable and identify some of the underlying mechanisms influencing alumni behavior.

Effects of Resource Availability on Social Exchange Relationships: The Case of Employee Psychological Contract Obligations

2014 ◽  
Vol 43 (5) ◽  
pp. 1447-1471 ◽  
Author(s):  
Prashant Bordia ◽  
Simon Lloyd D. Restubog ◽  
Sarbari Bordia ◽  
Robert L. Tang
Keyword(s):  
Social Exchange ◽  
Resource Availability ◽  
Psychological Contract ◽  
Social Exchange Theory ◽  
Exchange Theory ◽  
Conservation Of Resources ◽  
Exchange Relationships ◽  
Family Work ◽  
Work Conflict ◽  
The Social

Applications of social exchange theory in organizational research have tended to ignore the resource context and its impact on a focal dyadic social exchange. Integrating insights from the social exchange theory and the conservation of resources theory, we examine the role of resource availability in the social exchange of resources. The type of social exchange we focus on is the psychological contract. Specifically, we examine the antecedents and consequence of breach of employee obligations to an employer. We test our predictions using multisource data obtained from employees over three measurement periods in Sample 1 and matched triads (employee, supervisor, and coworker) in Sample 2. We found that family–work conflict (FWC) and breach of employer obligations are positively, while conscientiousness is negatively, related to employees’ perceptions of breach of their obligations. Conscientiousness moderated the FWC–breach relationship: Employees low on conscientiousness have a stronger positive relationship between FWC and breach of employee obligations. Breach of employee obligations is, in turn, negatively related to employee career progression (a job promotion over the following year in Sample 1 and supervisor-rated promotability in Sample 2). Findings highlight the interconnected nature of demands, resources, and obligations and that dyadic social exchange obligations should be examined in the context of other demands.

The Workplace Working Alliance: The Modern Organizational Relationship

2018 ◽  
Vol 11 (3) ◽  
pp. 517-522
Author(s):  
Mark A. North ◽  
Dylan Jensen
Keyword(s):  
Organizational Behavior ◽  
Working Alliance ◽  
Social Exchange ◽  
Social Exchange Theory ◽  
Great Promise ◽  
Working Relationships ◽  
Exchange Relationships ◽  
Good Science ◽  
New Era ◽  
Hybrid Theory

The evolution of organizational working relationships is always a timely discussion, especially in an age where globalization, remote workforces, and most recently artificial intelligence, to name just three, hold great promise but also concern for organizations’ capabilities to build on the strengths of traditional relationship theories while looking forward to and blazing paths toward future relationship theories. We appreciate Chernyak-Hai's and Rabenu's (2018) questioning of the “old” social exchange theory (SET) as a relevant organizing framework and their proposition of a “new” or hybrid workplace relationship theory to reflect today's workforce. In short, Chernyak-Hai and Rabenu practice good science by not throwing out what does not seem to fit but rather helping science evolve into what it needs to become (see Gergen's [2001] great commentary on ill-advised practices of ending traditions when criticisms are levied). We also admire Chernyak-Hai's and Rabenu's willingness to invite “additional organizational behavior [OB] theories” (p. 476) to join the conversation in defining what the new era workplace relationship might look like. With that invitation and a little latitude in what could be defined as “an OB theory,” we propose that the working alliance (WA; Bordin, 1979) be given space in that narrative. The substance of our commentary will describe the WA connection with Chernyak-Hai and Rabenu's new or hybrid theory, principally as it relates to issues regarding (a) tension toward equality and fairness and (b) mutual reciprocity in exchange relationships.

They support, so we talk: the effects of other users on self-disclosure on social networking sites

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cheng-Yu Lin ◽  
En-Yi Chou ◽  
Heng-Chiang Huang
Keyword(s):  
Social Support ◽  
Social Networking ◽  
Social Exchange ◽  
Social Networking Sites ◽  
Social Exchange Theory ◽  
Exchange Theory ◽  
Research Model ◽  
Self Disclosure ◽  
Content Type ◽  
Online Social Support

PurposeSocial networking sites (SNSs) have significantly influenced people's lives and changed their behavior. Although previous research has explored self-disclosure in virtual communities, little is known about the impact of other users, particularly their online social support, on self-disclosure. The aim of this study is to explore how online social support dimensions (i.e., emotional, informational, esteem, instrumental and network support) influence people's self-disclosure, which in turn affects their commitment to SNSs.Design/methodology/approachBased on social exchange theory, this study proposes a research model that explores the role of other users on self-disclosure. This study collects data from a sample of 558 respondents and applies the structural equation modeling technique to test the research model.FindingsThe findings show that users are motivated to disclose information and commit to a specific SNS because of the supportive climate. Results also show that self-disclosure mediates the effect of online social support on users' commitment to SNSs.Originality/valueThis study focuses on the influence of other users' roles on self-disclosure on SNSs, extending the application of social exchange theory.

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