Business Commons^™

The Challenge Of Developing Across Borders: Singapore’S Gambit In Bangalore, India, Choong Tze Chua, Wilfred Pow Ngee How, Caroline Yeoh

Research Collection Lee Kong Chian School Of Business

No abstract provided.

Including Corporate Social Responsibility, Environmental Sustainaibility, And Ethics In Calibrating Mba Job Preferences, David B. Montgomery, Catherine A. Ramus

Research Collection Lee Kong Chian School Of Business

It has long been understood by organizations and academics that the people make the place (Schneider, 1987). A quality workforce is an important source of competitive advantage, and organizational and financial success for firms (Capelli, 2000; Chapman, Uggerslev, Carroll, Piasentin, & Jones, 2005; Huselid, 1995; Pfeffer, 1994, 1998; Teece, 1998). Attracting talent is difficult for business organizations, and may become increasingly so in the years to come, as demographic and economic factors create a war for talent (Chapman, et al., 2005; Johnson, 2000; Michaels, Handfield-Jones, & Axelrod, 2001). Particularly salient in this war for talent is the ability to attract …

Investigating Web-Based Recruitment Sources: Employee Testimonials Vs Word-Of-Mouse, Greet Van Hoye, Filip Lievens

Research Collection Lee Kong Chian School Of Business

Although the internet has dramatically changed recruitment practices, many web-based recruitment sources have not yet been investigated. The present study examines the effects of web-based employee testimonials and web-based word-of-mouth (i.e., 'word-of-mouse') on organizational attraction. The source credibility framework is used to compare these company-dependent and company-independent recruitment sources. In a sample of potential applicants for a head nurse position, word-of-mouse was associated with higher organizational attractiveness than web-based employee testimonials. However, potential applicants were more attracted when testimonials provided information about individual employees than about the organization. Conversely, word-of-mouse was associated with higher organizational attractiveness and more organizational pursuit …

Knowledge Narratives And Heterogeneity In Management Consultancy And Business Services, Robin Fincham, Timothy Adrian Robert Clark, Karen Handley, Andrew Sturdy

Research Collection Lee Kong Chian School Of Business

In the professional services, diversification into various types of business advice has implications for knowledge boundaries. This is a sector of changing jurisdictional patterns and periodic reconstruction. Firms like large law practices that feed services into corporate clients have been merging to provide global coverage (Suddaby and Greenwood, 2001; Suddaby et al., 2004). But new specialisms in areas like consulting and IT are even more dynamic. Patterns such as the growth in outsourcing and movement into management consulting accounted for stupendous growth of the global accounting firms. These changes have themselves been overtaken, as the IT and systems giants muscled …

Measurement Equivalence In The Conduct Of A Global Organizational Survey Across Countries In Six Cultural Regions, Alain De Beuckelaer, Filip Lievens, Gilbert Swinnen

Research Collection Lee Kong Chian School Of Business

This study examined the measurement equivalence of a global organizational survey measuring six work climate factors as administered across 25 countries (N = 31.315) in all regions of the world (West Europe, East Europe, North America, Latin America, South America, Middle East, Africa and Asia-Pacific). Across all countries, the survey instrument exhibited 'form equivalence' and 'metric equivalence', suggesting that respondents completed the survey using the same frame-of-reference and interpreted the rating scale intervals similarly. Schwartz's (1994, 1999, 2004) cultural value theory was then used for grouping the countries in cultural regions, and to anticipate measurement equivalence of the data from …

Creating Alternate In-Basket Forms Through Cloning: Some Preliminary Results, Filip Lievens, Frederik Anseel

Research Collection Lee Kong Chian School Of Business

Research on constructing alternate forms of assessment center exercises is very scarce. This study examines the effectiveness of a cloning procedure (incident isomorphic approach) for developing alternate forms of a computerized in-basket. In this approach, original and alternate items are essentially similar (they are based on the same critical incident), while being superficially different (they are situated in a different context). Results showed there was no significant difference between the overall in-basket score across the alternate forms. In addition, these overall scores correlated .66, with projected estimates for the full in-basket approaching .80. Implications and limitations of the use of …

Measurement Invariance Of The Pay Satisfaction Questionnaire Across Three Countries, Filip Lievens, Frederik Anseel, Michael M. Harris, Jacob Eisenberg

Research Collection Lee Kong Chian School Of Business

In recent years, pay satisfaction has been increasingly studied in an international context, prompting the importance of examining whether the Pay Satisfaction Questionnaire (PSQ) is invariant across countries other than the United States. This study investigated the measurement invariance across three countries, namely, the United States (N = 321), Belgium (N = 301), and Cyprus (N = 132). Results showed that the measurement structure of the PSQ was invariant across these different countries because there was no departure from measurement invariance in terms of factor form, factor pattern coefficients, factor variances, and factor covariances. These results show promise for the …

The Validity Of Assessment Centres For The Prediction Of Supervisory Performance Ratings: A Meta-Analysis, Eran Hermelin, Filip Lievens, Ivan T. Robertson

Research Collection Lee Kong Chian School Of Business

The current meta-analysis of the selection validity of assessment centres aims to update an earlier meta-analysis of assessment centre validity. To this end, we retrieved 26 studies and 27 validity coefficients (N=5850) relating the Overall Assessment Rating (OAR) to supervisory performance ratings. The current study obtained a corrected correlation of .28 between the OAR and supervisory job performance ratings (95% confidence interval .24 < =rho < =.32). It is further suggested that this validity estimate is likely to be conservative given that assessment centre validities tend to be affected by indirect range restriction.

Japanese Corporate Governance: Structural Change And Financial Performance, Asli M. Colpan, Toru Yoshikawa, Takashi Hikino, Hiroaki Miyoshi

Research Collection Lee Kong Chian School Of Business

This paper analyzes institutional and legal changes related to corporate governance and their impact on financial performance in Japan since the second half of the 1990s. We attempt to address two issues systematically: (1) how much the governance reforms of Japanese firms transformed the conventional system of alliance capitalism and managerial control; and (2) what economic outcomes those governance changes have yielded. As the Commercial Code and other legal and institutional frameworks were revised, Japanese firms experienced shifts in terms of stock ownership, corporate control and managerial organizations. Our empirical results show that the influence of new ownership composition and …

International New Ventures: Revisiting The Influences Behind The 'Born-Global' Firm, Terence P. C. Fan, Phillip Phan

Research Collection Lee Kong Chian School Of Business

There is a small but theoretically important literature on 'born-globals' or international new venture firms that positions itself in contrast to the more established sequential international entry literature. In this paper we examine the pattern of entry into international markets for a set of international new ventures and show that they need not be a distinct breed of firms, as previous research has portrayed. Absent a specific technological advantage, the decision for a new venture to internationalize at inception is influenced by the size of its home market and by its production capacity, as well as by cultural and economic …

The Effects Of Entrepreneurial Growth Orientation On Organizational Change And Firm Growth, Wee Liang Tan, Thomas Menkhoff, Yue Wah Chay

Research Collection Lee Kong Chian School Of Business

Managing growth in an enterprise as it grows beyond the startup phase is a challenge for many entrepreneurs. One key element that can help or hinder growth is the entrepreneur. Entrepreneurial growth has been linked to micro variables (motivations and psychological attributes of the entrepreneur) and macro variables. However, few studies have examined the role of the growth aspirations of the entrepreneur on the necessary elements of organization change related to growth.

This paper reports a study employing a typology of entrepreneurs based on their growth aspirations using an established dichotomous scale devised by Smith to differentiate between what he …

Technological Knowledge, Product Relatedness, And Parent Control: The Effect On Ijv Survival, Dean Xu, Jane W. Lu

Research Collection Lee Kong Chian School Of Business

This article examines the relationships among parent firm technological knowledge, parent-IJV product relatedness, parent control over the IJV, and IJV survival. Combining the knowledge-based perspective and institutional theory, we argue that parent control itself does not necessarily lead to higher IN survival; it contributes to IN survival when the parent firm has a high level of technological knowledge, and when the IJV is product-related to this parent. Results obtained from 1038 Japanese IJVs based in China indicate that both equity control and managerial control of a Japanese parent had a positive interaction effect, with the parent's technological knowledge, on IN …

An Examination Of Psychometric Bias Due To Retesting On Cognitive Ability Tests In Selection Settings, Filip Lievens, Charlie L. Reeve, Eric D. Heggestad

Research Collection Lee Kong Chian School Of Business

Using a latent variable approach, the authors examined whether retesting on a cognitive ability measure resulted in measurement and predictive bias. A sample of 941 candidates completed a cognitive ability 14 test in a high-stakes context. Results of both the within-group between-occasions comparison and the between-groups within-occasion comparison indicated that no measurement bias existed during the initial testing but that retesting induced both measurement and predictive bias. Specifically, the results suggest that the factor underlying the retest scores was less saturated with g and more associated with memory than the latent factor underlying initial test scores and that these changes …

Procedural Fairness, Outcome Favorability, And Judgments Of An Authority's Responsibility, Joel Brockner, Ariel Y. Fishman, Jochen Reb, Barry M. Goldman, Scott Spiegel, Charlee Garden

Research Collection Lee Kong Chian School Of Business

Fairness theory (R. Folger & R. Cropanzano, 1998, 2001) postulates that, particularly in the face of unfavorable outcomes, employees judge an organizational authority to be more responsible for their outcomes when the authority exhibits lower procedural fairness. Three studies lent empirical support to this notion. Furthermore, 2 of the studies showed that attributions of responsibility to the authority mediated the relationship between the authority's procedural fairness and employees' reactions to unfavorable outcomes. The findings (a) provide support for a key assumption of fairness theory, (b) help to account for the pervasive interactive effect of procedural fairness and outcome favorability on …

Corporate Governance Reform As Institutional Innovation: The Case Of Japan, Toru Yoshikawa, Lai Si Tsui-Auch, Jean Mcguire

Research Collection Lee Kong Chian School Of Business

To address the convergence-divergence debate in corporate governance, we conduct a multiple-case, multiple-level study to analyze the diffusion of governance innovation in Japan. We argue that Japanese systems of corporate governance neither fully converge to, nor completely diverge from, the Anglo-American model. Rather, Sony-the pioneer of corporate governance reforms-and its followers selectively adopted features from this model, decoupled them from the original context, and tailored them to fit to their own situations to generate governance innovation. However, we find that the spread of innovation across firms and institutional levels is far from linear and straightforward, and that other well-regarded firms …

State-Led Transborder Industrialization In Asia: A Note On Singapore's Manufacturing Enclaves In Vietnam And China, Caroline Yeoh, Wilfred Pow Ngee How

Research Collection Lee Kong Chian School Of Business

State-led, market-driven interventions have been the hallmark of the Singapore `success storyÆ. This paper revisits SingaporeÆs state-enterprise strategy and takes a closer look at the portability of this strategy, in the framework of Regionalization21, a series of transborder industrialization experiments in Indonesia, Vietnam and China. These state-engineered projects, orchestrated to encapsulate economic space for Singapore-based firms to expand into the region, remain controversial. This strategic initiative is promulgated on the exportability of SingaporeÆs state credibility, systemic and operational efficiencies as well as technological competencies, to locations where these attributes are less distinct. We present evidence culled from surveys and interviews …

The Promise Of A Managerial Values Approach To Corporate Philanthropy, Jaepil Choi, Heli Wang

Research Collection Lee Kong Chian School Of Business

This article presents an alternative rationale for corporate philanthropy based on managerial values of benevolence and integrity. On the one hand, top managers with benevolence and integrity values are more likely to spread their intrinsic concern for others into the wider society in the form of corporate philanthropy. On the other hand, top managers high in benevolence and integrity are likely to contribute to improved managerial credibility and trusting firm-stakeholder relationships, thereby improving corporate financial performance. Therefore, the article makes the argument that both corporate philanthropy and corporate financial performance can better be interpreted as resulting from managers’ benevolence and …

Forecasting In Rapidly Changing Environments: An Application To The Us Motion Picture Industry, Anirban Mukherjee, Kadiyali Vrinda

Research Collection Lee Kong Chian School Of Business

Markets with rapidly changing environments provide forecasting challenges because of fewer similarities between past and future outcomes. In this paper, we provide a methodology that enables forecasting with relatively short histories. The application is to the U.S. motion picture industry where we forecast revenues in theatrical, sales (DVD and VHS), and rental channels. Using short market histories of similar products, we account for (1) observed and unobserved movie-specific characteristics, (2) seasonality of demand, (3) competition within and across multiple distribution channels (4) market expansion, substitution and complementarity between movies inside and across distribution channels. We extend the multiplicative competitive interaction …

Research And Development Project Valuation And Licensing Negotiations At Phytopharm Plc, Pascale Crama, Bert De Reyck, Zeger Degraeve, Wang Chong

Research Collection Lee Kong Chian School Of Business

We describe a research and development project-valuation model developed for Phytopharm plc, a pharmaceutical development and functional food company based in Cambridgeshire, United Kingdom. Phytopharm uses the model to value the projects in its research and development portfolio, and in licensing negotiations with potential product development and marketing partners. We include different valuation methods, including net present value, decision analysis, and Monte Carlo simulation. We also consider the technological risks of product development, as well as the uncertainty of commercial success. In addition to determining a value for a product in development, the model proposes appropriate licensing contract structures. A …

European Venture Capital Market: Scaling Beyond Current Boundaries, Gerard George, Eva Nathusius

Research Collection Lee Kong Chian School Of Business

This study systematically documents the perceptions of LPs, venture capitalists and entrepreneurs and their views of the trends and challenges facing the European venture capital market. The interest from LPs in European venture capital funds was found to be neutral to marginally negative because of historical returns. However, buoyancy in the supply of high quality opportunities at reasonable valuations has the potential to improve this outlook. The findings suggest that European venture capitalists still face structural barriers in the form of heterogeneous consumer preferences, improving but weak exit and fundraising environments, and the scarcity of LPs of significant size. The …

Antecedents And Outcomes Of Perceived Locus Of Causality: An Application Of Self-Determination Theory, Daniel B. Turban, Hwee Hoon Tan, Kenneth G. Brown, Kennon M. Sheldon

Research Collection Lee Kong Chian School Of Business

We extended self-determination theory by examining personality antecedents and self-regulatory consequences of perceived locus of causality (PLOC), which is the extent to which individuals perceive their actions as caused by internal or external reasons. We theorized that personality would influence PLOC and that individuals with internal PLOC would engage in more self-regulatory activities, which would in turn predict performance and enjoyment. We used structural equation modeling with data collected from 260 students at 4 time points to test our hypotheses. The model fit the data well. Although personality had direct effects on the self-regulatory activities of effort and meta-cognitive strategies, …

A Self-Motives Perspective On Feedback-Seeking Behavior: Linking Organizational Behavior And Social Psychology Research, Frederick Anseel, Filip Lievens, Paul E. Levy

Research Collection Lee Kong Chian School Of Business

Both the feedback-seeking literature in management and the self-motives domain in social psychology have focused on how motives affect the way in which people acquire information for self-evaluation purposes. Despite apparent conceptual similarities, the implications of research in these domains have not been fully integrated. This paper aims to link research on feedback-seeking behavior to recent theoretical developments in social psychology. First, the current perspective in management on feedback-seeking motives is depicted. Second, a well-established framework of self-motives in social psychology is introduced. Third, similarities and differences between these two motivational perspectives are discussed and a first step towards integration …

Job Satisfaction As Mediator: An Assessment Of Job Satisfaction's Position Within The Nomological Network, Marcus Crede, Oleksandr S. Chernyshenko, Stephen Stark, Reeshad S. Dalal, Michael R. Bashshur

Research Collection Lee Kong Chian School Of Business

Job satisfaction's position within the nomological network and the mechanism outlined by theories of social exchange suggest that job satisfaction functions as a mediator of the relationship between various antecedent variables and volitional workplace behaviours. We extend social exchange theory to include perceptions of the total job situation and develop a model that positions job satisfaction as a mediator of the relationships between various internal and external antecedent variables, and three volitional workplace behaviours: citizenship behaviours, counterproductive workplace behaviours, and job withdrawal. The fit of a fully mediated model is good and all four classes of antecedents (dispositions, workplace events, …

Social Influences On Organizational Attractiveness: Investigating If And When Word Of Mouth Matters, Greet Van Hoye, Filip Lievens

Research Collection Lee Kong Chian School Of Business

Previous recruitment studies have treated potential applicants as individual decision makers, neglecting informational social influences on organizational attractiveness. The present study investigated if and under what conditions word-of-mouth communication matters as a recruitment source. Results (N = 171) indicated that word of mouth had a strong impact on organizational attractiveness, and negative word of mouth interfered with recruitment advertising effects. Word of mouth from a strong tie was perceived as more credible and had a more positive effect on organizational attractiveness. For potential applicants high in self-monitoring, word of mouth had a stronger effect when presented after recruitment advertising. Finally, …

Combining Predictors To Achieve Optimal Trade-Offs Between Selection Quality And Adverse Impact, Wilfried De Corte, Filip Lievens, Paul R. Sackett

Research Collection Lee Kong Chian School Of Business

The authors propose a procedure to determine (a) predictor composites that result in a Pareto-optimal trade-off between the often competing goals in personnel selection of quality and adverse impact and (b) the relative importance of the quality and impact objectives that correspond to each of these trade-offs. They also investigated whether the obtained Pareto-optimal composites continue to perform well under variability of the selection parameters that characterize the intended selection decision. The results of this investigation indicate that this is indeed the case. The authors suggest that the procedure be used as one of a number of potential strategies for …

Asymmetries In Stock Returns: Statistical Tests And Economic Evaluation, Yongmiao Hong, Jun Tu, Guofu Zhou

Research Collection Lee Kong Chian School Of Business

We provide a model-free test for asymmetric correlations in which stocks move more often with the market when the market goes down than when it goes up, and also provide such tests for asymmetric betas and covariances. When stocks are sorted by size, book-to-market, and momentum, we find strong evidence of asymmetries for both size and momentum portfolios, but no evidence for book-to-market portfolios. Moreover, we evaluate the economic significance of incorporating asymmetries into investment decisions, and find that they can be of substantial economic importance for an investor with a disappointment aversion (DA) preference as described by Ang, Bekaert, …

Evaluating The Blending Of An E-Learning Module Into A Knowledge Management Course: A Case Study From The Singapore Management University (Smu), Thomas Menkhoff, Tze Yian Thang, Yue Kee Wong

Research Collection Lee Kong Chian School Of Business

In 2005, the authors of this essay led the development and launch of SMU’s (Singapore Management University) first e-learning package on ‘Knowledge Management’. The package is aimed at supporting SMU’s mission to be committed to an interactive, participative and technologically-enabled learning experience. Since its inception in 2000, SMU’s educational and administrative practices are modelled after American institutions, in particular the Wharton School of the University of Pennsylvania. To support SMU’s unique pedagogy, wireless technology for mobile computing is a central feature at SMU. Against this background, the paper features a self-critical and reflective case study of the roll out of …

The Size Of Venture Capital And Private Equity Fund Portfolios, Gennaro Bernile, Douglas Cumming, Evgeny Lyandres

Research Collection Lee Kong Chian School Of Business

We propose a model that examines the optimal size of venture capital and private equity fund portfolios. The relationship between a VC and entrepreneurs is characterized by double-sided moral hazard, which causes the VC to trade off larger portfolios against lower values of portfolio companies. We analyze the structural relations between the VC's optimal portfolio structure and entrepreneurs' and VC's productivities, their disutilities of effort, the value of a successful project, and the required initial investment in a venture. We also test the model's predictions using a small proprietary dataset collected through a survey targeted to VC and private equity …

Understanding Chinese Business Behaviour: A Historical Perspective, Taieb Hafsi, Li Yan

Research Collection Lee Kong Chian School Of Business

The behaviour of Chinese business has been studied by a variety of strategic management scholars (see in particular Hafsi and Tian, 2005; Peng, 2006; Peng and Heat, 1996). Most of these studies rely on traditional data gathering, either in the form of interviews or published data banks. Very little attention has been given to history as a determinant of strategic behaviour. In this paper, we propose that the cognitive orientation of Chinese managers is dominated by their knowledge and understanding of Chinese history. We take the Three Kingdoms historic novel as a proxy to history to derive basic behavioral norms …

Coordination In Distributed Organizations, Kannan Srikanth

Research Collection Lee Kong Chian School Of Business

Innovative work performed in a distributed fashion does not easily lend to itself either of two classic coordination strategies - anticipatory planning or ongoing rich communication. We study how innovative work that is distributed across space and time is coordinated in global software service organizations. Our findings indicate that neither coordination by plan nor coordination by feedback play a dominant role in the coordination of distributed software services delivery. Instead, we find that the firms we studied coordinate action distributed work by relying on common ground. Common ground leads to coordinated action across locations by two means: the anticipation effect …