Cognitive Complexity and Conformity: Effects on Performance in a Turbulent Environment

1994 ◽  
Vol 75 (3_suppl) ◽  
pp. 1451-1472 ◽  
Author(s):  
Andrew R. McGill ◽  
Michael D. Johnson ◽  
Karen A. Bantel

A study exploring the effects of cognitive complexity and conformity on managers' adaptive performance in a turbulent environment is reported. Traditionally treated separately, complexity and conformity were examined jointly for 8 top managers of 6 different business units in the consumer banking industry. The results support an over-all positive effect of cognitive complexity on performance. Importantly, this effect is directly and also indirectly mediated by a lack of conformity. These results point out the criticality of hiring and promoting business-unit-level managers with high cognitive complexity and low conformity to achieve adaptive performance. They also suggest that business-unit-level managers who lack these characteristics are better suited to more stable environments.

2017 ◽  
Vol 38 (1) ◽  
pp. 14-21 ◽  
Author(s):  
Emmanuel Josserand ◽  
Achim Schmitt ◽  
Stefano Borzillo

Purpose This paper aims to analyze how business units can use their employees’ external social capital to explore and exploit the resources available in their environment. Based on multiple interviews with the employees of the global commodity firm Gamma Chemical (around 50,000 employees), the research aims at gaining an understanding of the contextual conditions required to successfully build and leverage individuals’ external social client network ties for business unit ambidexterity. Design/methodology/approach The authors conducted a single-case study at Gamma Chemical that entailed 33 semi-directive interviews, each of which lasted 1-4 h, at different organizational levels (ranging from top-level management to production workers). We had access to three regional business units. The interviews addressed the links between the individuals in the business units and external actors. The authors also collected information about the company’s strategic objectives, the local competitive environment and work organization. Open-ended questions were used to allow the interviewees to freely relate anecdotes about their own network development. In particular, the authors asked the respondents to identify business contacts with whom they interacted privately and to describe the relationships. Findings The research findings are two-fold. First, and contrary to prior studies, the authors find that individuals’ social capital contributes to both exploration and exploitation at the business unit level. Second, developing and leveraging individuals’ external social capital requires a specific organizational context at the business unit level that allows employees to develop and nurture their personal business relationships with clients. Research limitations/implications The study is limited by the scope of the sample (a study of one large multinational firm). Further research conducted in similar contexts may therefore be useful for comparability purposes and to generalize the results. Practical implications Several practical recommendations describe how managers can effectively make use of their employees’ social connections with clients. In particular, the results suggest that managers should seek business unit flexibility on the basis of team-based structures, an autonomous leadership style and by actively creating a degree of critical social network tie redundancy, encouraging a shared network culture. These three specific conditions allow employees’ personal client networks to not only flourish but also contribute to business unit ambidexterity. Originality/value Prior social capital studies have analyzed intra-firm and inter-firm relationships in terms of contributing to firm ambidexterity. However, these findings have often been difficult to translate into specific organizational levels. Given business units’ critical role in identifying and implementing business opportunities for a firm, the authors focus on the micro-foundations of exploratory and exploitative learning by using a social capital perspective to explore the link between employees’ private external social relationships with clients and business unit ambidexterity. In this way, we contribute to the social capital literature and research on business unit ambidexterity and to extant contextual ambidexterity research by specifying the conditions that help firms develop and leverage their employees’ own external social capital for exploration and exploitation.


2015 ◽  
Vol 1 (6) ◽  
pp. 416
Author(s):  
Nareswari Saputro ◽  
Imron Mawardi

This study aims to determine the effect of the murabahah margin rate to Financing to Deposit Ratio and Non Performing Financing on Indonesian Sharia Banks in the period 2010-2012. This study uses quantitative approach by using path analysis with three kinds of variables, which are murabahah margin rate as an exogenous variable, Financing to Deposit Ratio as an intervening endogenous variables and Non Performing Financing as an endogenous variable. The Sharia Banking industry is used as sample in this study, which consist of Sharia Comercial Banks (BUS) and Sharia Business Unit of a Conventional Bank (UUS). Furthermore, this study uses secondary data which conducted by collecting monthly financial statements for three years.The results showed that murabahah margin rate has significantly negative effect to Financing to Deposit Ratio (FDR) of Sharia Banking in Indonesia. Meanwhile, murabahah margin rate has significantly positive effect to Non Performing Financing (NPF). It also happens to the effects of Financing to Deposit Ratio (FDR) to Non Performing Financing (NPF) of Sharia Banks in Indonesia period 2010-2012.


2020 ◽  
Vol 1 (01) ◽  
Author(s):  
Deni Anggrayani ◽  
Ari Susanto ◽  
Safiruddin Al Baqi

As education systems, Islamic boarding school has several advantages such as teaching religious knowledge, science and various extracurricular activities. Modern Islamic Boarding School of Darussalam GontorInodonesia is a boarding school that has a holistic education system, which is not only educate the academic skill but also educate students in developing entrepreneurship skills. This study aims to determine the effect of joining the business unit to the motivation and ability of entrepreneurship among students. This research used ethnography method with interviews and observations in business units in Darussalam Gontor. The results of this study indicate that Darussalam Gontoris a boarding school which implements 24-hour education system with various activities, such as praying togather, muajjah, learning in class, sports, mahkamatullughohand others. Differences of Darussalam Gontor with other boarding school is because Darussalam Gontor requires senior student to be responsible for business unit, such as Darussalam Press, Wisma Darussalam, La Tansa bookstore and other units. Result of this study shows that after joining the business unit, students become more motivated to develop their own business. Students also get enough knowledge to start a business or become an entrepreneur. The data showed that many alumni who have success become entrepreneurs. The entrepreneur character is heavily influenced by the role of alumni as a student of Darussalam Gontor. The alumni's businesses include production of songkok, ice cream, bookstore, travel agent, garment businessman and others. Keywords: Business unit, education system, entrepreneurship, Islamic boarding school, Islamic education


Author(s):  
Stefan Dierkes ◽  
Ulrich Schäfer

Abstract Corporate valuation often relies on the assumption of a constant and homogenous growth rate. However, large firms frequently (re)balance their activities by diverting cash flows from some business units to fund investments in other units. We develop a value driver model of terminal value for a firm with two units. The model relaxes common assumptions and allows for cross-unit differences in the return on invested capital. We consider intra-unit and cross-unit investments and show their implications for firm value and the long-term development of key accounting variables. Our results help characterize business unit strategies that can be reconciled with popular firm strategies such as the constant payout and constant growth strategies. We find that popular valuation methods that assume both constant payout ratios and constant growth rates (e.g., Gordon and Shapiro, Manage Sci 3:102–110, 1956) constitute a restrictive special case of our model and should only be applied to firms with homogenous business units. We use a simulation analysis to compare our results with alternative valuation models and to illustrate the economic relevance of our findings. The simulation shows that an accurate depiction of business unit strategy is particularly useful if firms plan large-scale cross-unit investments into business units with high returns and if the cost of capital is low.


Author(s):  
Steven De Haes ◽  
Wim Van Grembergen ◽  
Dirk Gemke ◽  
John Thorp

There is little research available that specifically looks at how organizations define and implement their inter-organizational governance of information technology. The challenge in such environments is also observed in large organizations where multiple business units and activities often have separate strategies and investment priorities. This paper provides both practitioners and academics with an enriched understanding of how the international airline company KLM introduced IT related governance principles and practices tailored for a multi-business-unit global organization. Insights from this exploratory single case study can contribute to further theory building and practitioner guidance regarding the crafting of both intra- and inter-organisational governance frameworks.


2019 ◽  
Vol 11 (24) ◽  
pp. 6975
Author(s):  
Weifeng Xu ◽  
Qingsong Ruan ◽  
Chang Liu

With the continuous improvement of China’s overall education level, the number of top managers with famous university experience in listed companies has been increasing. The question then becomes whether the performance of the listed companies is better if there are more top managers with famous university experience in the top management team (TMT). Based on the sample of listed companies in China from 2008 to 2018, we adopted the two-way fixed effect model and panel propensity score matching (Panel-PSM) methodology to examine the impact of top managers with famous university experience on corporate performance and its mechanism. We found that the higher the proportion of top managers with famous university experience in the TMT, the better the corporate performance will be, and this positive effect is larger in companies with high business complexity. We also found that this effect is mediated by overconfidence of the TMT. The proportion of top managers with famous university experience in the TMT will inhibit the overconfidence of the TMT, which will ultimately benefit corporate performance.


2009 ◽  
Vol 62 (11) ◽  
pp. 1635-1666 ◽  
Author(s):  
Ethlyn A. Williams ◽  
Terri A. Scandura ◽  
Mark Gavin

Team-level career mentoring by supervisors is conceptualized as mentoring that provides career support for all team members. A new model of mentoring and individual team-source learning is presented. Data from 192 individuals in 37 intact work groups in the banking industry were used to examine how intra-group processes might influence the team mentoring process. Team-level leader-member exchange, peer mentoring, and proactive member behavior were examined for their influence on team-level career mentoring by supervisors. Our results suggest that aspects of the team context (represented by mean leader-member exchange and mean peer mentoring) influenced team-level career mentoring. Team-level career mentoring (TCM) had a positive effect on individual team-source learning and had mediating effects on the relationships between the team contextual factors and individual team-source learning. The implications of this research for studying supervisory team-level career mentoring are discussed.


2019 ◽  
Vol 19 (2) ◽  
pp. 163
Author(s):  
Ariana Suryorini

<p>The function of the mosque is very universal, other than in the religious field, the mosque also has other functions which include religious/worship functions, educational functions, unifying functions of the people, social functions and economic functions. Islam places the mosque in a strategic position. Considering the strategic function of the mosque, it is necessary to provide good guidance, in terms of the physical building and the aspects of its prosperity. The mosque is expected to be a center of social and economic activity for its worshipers, not just a center for worship activities. Mosque empowerment is very important because it can provide a positive perspective related to the utilization of human resources through the empowerment of mosques for the welfare of Muslims. In the economic function of the empowerment of the Sirathal Mustaqim mosque through the activities of the Joint Business Unit (UB), whose ownership is pilgrims who have equity participation or capital ownership, which they refer to as shares of the business units they run, where profits are distributed to the owners or accompanying members of the capital in a meeting of capital owner members every year. The Joint Business Unit (UB) is named UB Rejeki Barokah, whose economic function activities are very diverse, both in the retail business of kiosks, services and goods credit business.</p><p> </p><p>Fungsi masjid sangat universal, selain di bidang keagamaan, masjid juga mempunyai fungsi lain yang meliputi fungsi keagamaan/peribadatan, fungsi pendidikan, fungsi pemersatu umat, fungsi sosial dan fungsi ekonomi. Islam menempatkan masjid dalam posisi yang strategis. Mengingat fungsi masjid yang strategis maka perlu pembinaan secara baik, dari segi fisik bangunan maupun segi kegiatan pemakmurannnya. Masjid diharapkan bisa menjadi pusat aktivitas sosial dan ekonomi bagi para jamaahnya, tidak hanya menjadi pusat kegiatan ibadah saja. Pemberdayaan masjid menjadi hal yang sangat penting karena dapat memberikan perspektif positif terkait pemanfaatan sumber daya manusia melalui pemberdayaan masjid untuk kesejahteraan umat Islam. Dalam fungsi ekonomi pemberdayaan masjid Sirathal Mustaqim melalui aktivitas unit Usaha Bersama (UB), yang kepemilikannya adalah jamaah yang mempunyai penyertaan atau kepemilikan modal, yang mereka sebut seperti saham dari unit usaha yang mereka jalankan, dimana keuntungannya dibagikan kepada jamaah pemilik atau penyerta modal tersebut dalam rapat anggota Pemilik modal setiap tahunnya. Unit Usaha Bersama (UB) tersebut bernama UB Rejeki Barokah, yang aktivitas fungsi ekononominya sangat beragam, baik dalam usaha retail kios, jasa maupun usaha perkreditan barang.</p>


Jurnal Niara ◽  
2021 ◽  
Vol 14 (3) ◽  
pp. 307-314
Author(s):  
Koko Saputra

Village Owned Enterprise is a self-help container that is essentially a forum that conducts empowerment to the community, but the current situation is many unable to function as a forum for community empowerment of Village Owned Enterprise. This research aims to determine community empowerment through The Save Borrow Business Unit in Village Owned Enterprise Mineh Mandiri West Minas Village and to Know what factors hinder community empowerment through the Simpan Pinjam Business Unit in Village Owned Enterprise Mineh Mandiri West Minas Village. This research uses qualitative descriptive research method approach. Primary data obtained directly through interviews from informants, namely the Director of Village Owned Enterprise Mineh Mandiri, Village Chief Of West Minas, representative community Of West Minas Village, Field Experts Of Village Owned Enterprise, and Borrower Community. The results of this study show that community empowerment through the business unit of saving loans in a Village Owned Enterprise Mineh Mandiri West Minas Village is Bad. inhibitory factors in community empowerment through business units save borrowing in Village Owned Enterprise Mineh Mandiri West Minas Village is the limitation of human resources and lack of public awareness and lack of public enthusiasm for Village Owned Enterprise Mineh Mandiri.


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