Proceeding 2015 Asia Academy of Management (AAOM) and Taiwan Academy of Management (TAOM) Joint Conference

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2 Proceeding 2015 Asia Academy of Management (AAOM) and Taiwan Academy of Management (TAOM) Joint Conference Session 1: Employee Creativity and Innovation (AAOM) A Multilevel Analysis on Employee Motivation, Creativity, and Objective Performance Hsueh-Liang Fan, National Taiwan University Forrence Hsin-Hung Chen, National Chengchi University Creativity is commonly described as both the result and the process of producing creative outcomes; individuals need to first engage in certain process that could help them become more creative (Shalley & Zhou, 2008). The study proposed that individual creativity can be motivated through both intrinsic and extrinsic motivations and creativity can also be enhanced by team-level effect. Besides, employees with high level creativity can achieve high work performance. Moreover, the present study also proposed that team climate for innovation affects different kinds of team performance at the team level. Subjective data (independent variables and mediators) were collected from 237 R&D employees (20 project teams) of a company which was ranked in the 2006 Forbes Global 2000 over two time periods, and objective data (the performance of employees and their teams) were acquired from the organizational record. Results of path analysis using Structural Equation Modeling (SEM) revealed that creativity could fully mediate the relationship between motivation (intrinsic and extrinsic) and performance. The subsequent hierarchical regression analysis confirmed that the interaction effects of intrinsic and extrinsic motivations on creativity and performance were significant. Furthermore, results of Multilevel Model (MLM) showed that team climate for innovation at the team level had cross effect on employee creativity at individual level. The implications of the findings, limitations, and direction for future study are discussed. Impact of Human Resource Management Systems on Employees Knowledge Innovative Behavior An Empirical Study for Taiwanese R&D Professionals 1

3 Min-Shi Liu, Soochow University Mei-Ling Wang, Tamkang University Many studies in recent years have investigated innovation and organizational reform, and have largely focused on the questions of how to improve an organization's innovation capability. In connection with the resource-based view (RBV), Barney(1991) points out that a key issue is how organizational resources can be used to achieve a sustainable competitive advantage. From this point of view, the knowledge, skills, and abilities possessed by employees can be considered important resources boosting an organization's innovation capability, and employees knowledge innovative behavior is a key element displaying their knowledge, skills, and abilities. What external and internal factors influence employees knowledge innovative behavior? The chief goal of this study is to analyze the correlation between HRM systems, the willingness to share tacit knowledge, employees' knowledge sharing behavior, and employees knowledge innovative behavior, while also verifying whether innovation management procedures can be established. Findings from evidential analyses include: First, the willingness to share tacit knowledge plays an important role in innovation integration models and collaboration-based HRM systems can induce employees to share the willingness to share tacit knowledge hidden in their brains, which can further boost organization members' innovative behavior. Secondly, two pathways may influence employees knowledge innovative behavior. The first pathway is the positive effect of knowledge-based HRM systems on employees knowledge innovative behavior. The second pathway is the use of collaboration-based HRM systems to induce employees to share their willingness to share tacit knowledge and thereby influence employees knowledge innovative behavior. We verify that different human resource management strategies can activate these different pathways for enhancing employees knowledge innovative behavior. Extroversion and Creativity Performance Shih Hsi-An, National Cheng Kung University Chu-Chun Hsu, Southern Taiwan University of Science and Technology Yun-Hwa Chiang, Ming Chuan University 2

4 Drawing on the personality literature, this study argues that highly extroverted workers will engage in higher levels of information exchange with colleagues than their counterparts with lower levels of extroversion personality. Since information exchange provides cognitive resources for creativity, we also argue that engaging in information exchange can help a person think of creativity ideas at work. Thus, we propose that extroversion is positively related to creativity through the effect of information exchange. Collecting data from Taiwanese research and development engineers in electronic product manufacturers listed as members of the Taiwanese Electrical and Electronics Manufacturer Association, we find that extroversion is positively related to creativity performance through the effect of information exchange. This study complements scholarly knowledge about how personal factors may influence creativity. Session 2: Alliance and New Venture Management (AAOM) Increasing the Innovation Effectiveness of Exploratory Alliances: An Empirical Study on Korean Manufacturing Firms Marco JinHwan Kim, Seoul National University Seunghwan Song, Korea University Klaus Marhold, Seoul National University Jina Kang, Seoul National University A range of alliance literature confirms the effects of strategic alliances on immediate innovation outcomes such as patenting performance and new product development. They have, however, not sufficiently examined the effects of alliances on innovation effectiveness. This paper aims to investigate the influence of exploratory alliances on firms innovation effectiveness. Moreover, we examine some internal and external organizational characteristics which strengthen the influence of exploratory alliances. We verify the positive effect of exploratory alliances on innovation effectiveness measured by percentage of revenue from new innovation and uncover the moderating effects of firms exploitative alliances and innovation intent. We test our hypotheses using data on 364 Korean manufacturing firms gathered from the Korea Innovation Survey. The data captures the performance of the firms during 3

5 their peak growth rate after overcoming the 1997 Asian Financial Crisis. Our results show the influence of exploratory alliances on innovation effectiveness under certain boundary conditions and provide implications for increasing alliance performance. Similarity-Attraction or Strategic Choice? The Effects of Ownership Structure on New Venture Teams Aegean Leung, The University of Sydney Business School Der Leeds Maw, The University of Colorado at Boulder Poh Kam Wong, The National University of Singapore This study examines the effects of founding ownership structure on new venture team recruitment and team characteristics from the startup to the early growth phase. Our key argument is that founder control, as reflected in the presence or absence of institutional ownership at founding may lead to the use of different hiring channels for core team members, and the formation of teams with different characteristics in new ventures. Initial team characteristics can persist to the growth phase of the firm through inertia, making the growth team a close resemblance of the startup team. Our findings generally support the proposition that the presence of institutional ownership lead to the selection of core team members based on strategic choice rather than similarity-attraction factors. Balanced Skills and Entrepreneurial Intention: How do Skill Quantity and Skill Diversity Add up? Yingzhao Xiao, The Chinese University of Hong Kong Kevin Au, The Chinese University of Hong Kong Marta Dowejko, The Chinese University of Hong Kong Balanced skills is an pivotal attribute for entrepreneurs. Drawing on the Jack-of-all-trades theory, this article examine the skill quantity and skill diversity, as two dimensions of balanced skills, and entrepreneurial intention to provide an understanding of the individual decision-making toward becoming an entrepreneur. Results suggest that while skill quantity has a positive effect on entrepreneurial 4

6 intention, there is no direct association between skill diversity and entrepreneurial intention. Further, we find that the interaction of skill quantity and skill diversity is significantly related to entrepreneurial intention. But quite surprisingly, the higher skill diversity an individual has, the less effect of skill quantity on entrepreneurial intention. Theoretical and practical implications are provided. Session 3: Corporate Governance and Ties (AAOM) How Much Do Network Ties Matter in Firm Innovativeness of Internationalized Chinese Firms Huan Zou, SOAS, University of London Jie Zhang, Fudan University This paper examines how global and local network ties influence knowledge acquisition and international opportunity recognition in the internationalization process of firms from emerging economies. We provide empirical evidence using a cross-sectional sample of 133 Chinese firms to test the model. The results show that both global and local network ties have a positive effect on knowledge acquisition but only global network ties is positively linked to international opportunity recognition. The moderating effect of risk orientation is found to be significantly positive on the link between global network ties and knowledge acquisition but negative on the link between local network ties and knowledge acquisition. Agency Theory and Corporate Governance in China: A Meta-analysis Canan Mutlu, University oftexas at Dallas Marc Van Essen, University of South Carolina Mike Peng, University of Texas at Dallas Sabrina Saleh, University of South Carolina Do agency theory-based good corporate governance principles apply to China? A straightforward answer to this question is lacking, because evidence is inconclusive across studies. Amassing a pooled database consisting of 81 studies, 272 effect sizes, and 212,777 firm- year observations between 1991 and 2008, we endeavor to fill this gap by conducting the first meta-analysis on the China literature with two focuses. 5

7 First, we assess the impact of (i) board independence, (ii) board leadership structure, and (iii) managerial incentives on firm performance, as these elements have been central to both agency theory as well as to Chinese corporate governance reforms. Second, we extend current theorizing by showing support for the temporal hypothesis, which states that over time, with the improvement in the quality of market institutions, the monitoring mechanisms of the board become more important whereas the incentive mechanisms lose their significance. In addition, we also find that agency theory is more strongly supported in China than in most developed economies. Same but Different? Similarities and Fundamental Differences of Informal Social Networks in China (Guanxi) and Korea (Yongo) Sven Horak, St. John s University Markus Taube, Duisurg-Essen University This research reports about similarities and distinctive differences of informal social networks in China (Guanxi) and Korea (Yongo). Within an analytical framework derived from social capital and institutional theory, structural forms and characteristics of both network forms are compared. Although we observe some similarities, surprisingly both networks show several fundamental differences. Both are large, society spanning constructs, developed and maintained by reciprocal action that creates trust and trustworthiness and serves as a major factor of network cohesion. Both networks are confined to the outside, whereas insiders can connect other insiders with each other (i.e. internal bridging of structural holes). However, in comparison, Guanxi networks are in principle accessible to outsiders and draw on a diverse base of ties; Yongo networks are predefined, partly by birth, and are hence homogeneous and highly exclusive. Guanxi networks can benefit by spillover effects through bridging between different networks; Yongo networks cannot, as there is antipathy, competition and partly hostility between networks. The results add knowledge to social network theory in general and in particular to informal social networks in East Asia. Moreover, in reference to the current debate whether informal networks will disappear in the future, we argue Yongo is culturally driven, hence it may most likely persist. 6

8 Governance Structure, Institutions and Political Ties in Emerging Economies Chi-Nien Chung, National University of Singapore Hongjin Zhu, McMaster University Political ties bear significant implications for firms strategy and performance, but it remains unclear why firms build political ties with the political regime. In this study, we examine how the governance structure of firms in emerging economies shapes their political ties. We propose that business group membership and family ownership and control positively affect the establishment of political ties and such effects diminish as market infrastructures and regulatory institutions develop. We also offer a framework and analysis for why business group affiliates and family owners prefer diverse portfolios of ties with competing or rival political parties amidst democratization. Results of a longitudinal study on political ties of Taiwanese firms from 1996 through 2005 support our arguments. Our results highlight the dynamic influence of governance structure of the firm and institutional contexts on the formation and evolution of political ties. Session 4: Leadership and Empowerment (AAOM) Reference Relationships and Their Impact on Supervisor Empowerment within the Work Group Kenneth Law, The Chinese University of Hong Kong Lin Wang, Sun Yat-sen University, Lingnan (University) College Melody Jun Zhang, The Chinese University of Hong Kong Drawing on reference group theory, we investigate the reference relationships among group members, informal leader and the supervisor of the work group. These reference relationships are postulated as key resources and determinants of power dependence within the group under the power dependence theory and resource dependence theory. Based on the general premise that the supervisor try to maximize his resources under the conservation of resources theory, we analyze the effect of four cases of reference relationships and examine their effects on the 7

9 supervisors empowerment behaviors to the informal leader and group members. The distinctness and boundary conditions of our model are discussed. Is Being a Leader a Mixed Blessing? Dual Pathways Linking Leadership Role Occupancy to Well-being Wendong Li, Kansas State University John Schaubroeck, Michigan State University Jia Lin Xie, University of Toronto The question of how occupying a leadership position affects a job holder's well-being has attracted researchers' attention for decades. Conventional research suggests that serving as a leader is negatively related to the incumbent s well-being because job demands often increase dramatically with ascension to leadership positions. Recent research, however, suggests a positive relationship between leadership role occupancy and well-being due to the stress-alleviating effects of the sense of control conferred by holding leadership positions. The present research aims to reconcile these two opposing views by examining both job demands and job control as mediators linking leadership role occupancy to job incumbents' well-being. We present results from three studies using a national representative U.S. sample, a Chinese sample, and a probability Japanese sample. These studies together assess a variety of psychological and physiological indexes of well-being. Our findings demonstrate that because job demands and job control have sharply different relationships with indexes of well-being, they have countervailing mediating roles that together generally produce an insubstantial relationship between leadership role occupancy and well-being. We discuss research and practical implications of our findings to organizations, employees, and leaders. The Effect of LMX on Work-related Flow: A Moderated Mediation Model of Psychological Empowerment and Emotional Intelligence Junbang Lan, Hong Kong Baptist University Chi-Sum Wong, The Chinese University of Hong Kong Chunyan Jiang, Nanjing University Yina Mao, Nanjing University 8

10 There is some preliminary evidence about the impact of LMX on work-related flow, a core concept in positive psychology. However, the exact process of how this relationship takes place is unknown. Based on the Job-Demand-Resource model and self-determination theory, we hypothesize a moderation mediation model in which psychological empowerment is the mediator while emotional intelligence is the moderator. Using samples from two different industries representing different emotional labor level (service sample N= 219; manufacturing sample N=208), we found full support in the service sample and partial support in the manufacturing sample. Implications and future directions are discussed. Session 5: Knowledge Sharing and Innovation (TAOM) The Effective Learning Mechanism for Sustainable Innovation: A Lesson from an Empirical Study from Asia Jeewhan Yoon, California State University Innovation becomes one of the key elements for organizational success. A growing emphasis on innovation brings our scholastic and managerial attention to understand antecedents for sustainable innovation. Based on social learning theory, this paper focuses on individual learning, one of key motivators of innovation, and explores the theoretical mechanism explaining antecedents that influence individual learning. Based on the original data set of 23 work teams in a hospital that recently went through organizational change and restructuring in South Korea, one of the rapidly growing Asian countries, the current study empirically examined the team learning and individual efficacy as important mediators between team efficacy and individual learning relationship. Theoretical and practical implications are discussed for understanding how team efficacy, individual efficacy, and team learning behavior make significant contribution to the individual learning, thus promoting innovation. Effects of Knowledge Diversity on Shared Knowledge Vision: The Mediation of Knowledge Creation Mechanisms Fu-Sheng Tsai, Chang Shou University Chen-Wei Yang, Fooyin University 9

11 We study the influences of knowledge diversity on shared knowledge vision, a neglected reverse causal relationship between these two constructs. We also investigate on the role played by knowledge creation mechanisms. Analyses were based on data collected over two time points from 153 new product development teams. Empirical evidences support that knowledge diversity negatively influences shared knowledge vision, while knowledge creation mechanisms mediates in such relationship and significantly altered the effect of knowledge diversity on shared knowledge vision. Implications were discussed for theory and practices. Coping with a Firm and Its Rivals Earnings Pressure in Exploratory Innovation Heng-Yu Chang, Chang Gung University Cheng-Yu Lee, Southern Taiwan University of Science and Technology Yun-Ping Amber Lee, National University of Tainan While earnings expectation has been shown to determine a firm's investment decisions, little is known about how such expectation influences its investment horizon for innovation. This paper examines the impact of earnings pressure and cross-rival effect on firm behavior towards exploratory innovation while considering a firm s financial slack. By using data from S&P 1500 companies in high technology industries and patent information from UPSTO database for 2000 to 2012, the results indicate that stock analysts, as information intermediaries between innovation firms and the capital market, impose pressure through earnings forecasts on a firm s exploratory innovation. Besides, a firm tends to increase exploratory innovation by taking advantage of its rivals handicaps. Furthermore, a firm s financial slack not only relaxes earnings pressure but also broadens the innovation gap between two competing firms. This paper suggests that managers should take the competitive effect into account when a strategic investment decision is deployed. Session 6: Family Business (AAOM) Increased Non-family Large Shareholders in Family-controlled Firms: Do They Affect Precipitate CEO Turnover? 10

12 Shuping Li, Kansas State University Will Mitchell, University of Toronto This paper investigates the impact of increased non-family large shareholders in family- controlled firms on CEOs forced and abrupt voluntary exits, which we refer to as precipitate CEO turnover. Taking into account distinct interests between family and non-family large shareholders, we argue that increased presence of non-family large shareholders increases precipitate CEO turnover by enhancing a firm s reference to market efficiency in evaluating the CEOs. Longitudinal analyses based on 599 family-controlled Taiwanese firms from 2000 to 2011 reveal that precipitate CEO turnover increases with the presence of non-family large shareholders in the firms. The relationship is stronger in firms with pyramid ownership structure, lower governance transparency, and CEO affiliation with family controllers. Our study contributes to the family business literature by assessing the governance consequence of non- family large shareholders. Ownership Structure and Affiliate Firm Performance in Diversified Family Business Groups: A Generational Perspective Hsi-Mei Chung, I-Shou University Employing generational perspective, this research examines the effects of ownership structure and diversification on affiliate firm performance in family business groups. Utilizing a unique longitudinal and cross-level data, this research indicates that the pyramidal ownership structure will generate differential performance implications under the founder or descendant generation in a family business group. Additionally, the higher level of diversification will strengthen (or positively moderate) the negative relationship between pyramidal ownership structure and affiliate firm performance in a descendant-led family business group while diversification decision will weaken (or negatively moderate) the positive relationship between pyramidal ownership structure and affiliate firm performance in a founder-led family business group. This research contributes to the understanding of the family ownership and diversification impact from the consideration of the generation context in a family business group. 11

13 Contact Hitters or Power Hitters? R&D Behavior of Family Firms in the Japanese Pharmaceutical Industry Shigeru Asaba, Waseda University Tetsuo Wada, Gakushuin University While prior studies have found that family firms invest less in R&D, many family firms actually exist in R&D intensive industries. Our analysis on R&D behavior of the Japanese pharmaceutical firms finds that R&D behavior of family firms is not inactive but different from that of non-family firms. We confirm lower R&D intensity of family firms, but find family firms produce at least as many patent applications per R&D expenditure as non-family firms. Further analysis finds that family-owned firms can use R&D investment more efficiently by limiting technological areas of research. We also find that, due to family managers risk aversion, family-managed firms allocate R&D resources to develop many patents of low quality instead of very important technology. In contrast, non-family pharmaceutical firms, which are forced to follow shareholders preference to raise fund, prefer the project of high return with low probability for success and of large loss with high probability like power hitters. It is consistent with cumulative prospect theory that external investors overweight unlikely extreme outcomes. It is as if non-family firms try to hit a home run, at the sacrifice of a high batting average while family firms behave as contact hitters trying to hit as many singles as possible. The results suggest that owners preference or risk attitudes have significant impacts on firms R&D behavior. Expatriate Decision behind the Family in Multinational Family Business Groups: An Integrated Framework Hsi-Mei Chung, I-Shou University Employing agency and resource-based theory, this research examines the impact of host country uncertainty on the likelihood of utilizing family management to manage the foreign affiliations in multinational family business groups. Utilizing multi-level and longitudinal data, the results indicate that the higher degree of 12

14 economic and cultural differences between the home and the host country, the higher possibility to utilize family management to manage a foreign affiliation in family business groups. Moreover, evaluating the choice between qualified family management versus qualified professional management, the higher degree of economic differences in foreign affiliations will increase the likelihood of assigning qualified professional management rather than qualified family management in family business groups. However, the higher degree of cultural differences in foreign affiliations will increase the likelihood of assigning qualified family management rather than qualified professional management in family business groups. These results indicate that the different environmental dimensions will exert distinctive impact on the expatriate decision in multinational family business groups. This research provides referable value in addressing expatriate issues in multinational family enterprises. Session 7: Multinational Firms and FDI (AAOM) Facing Changes in Political Environments and Political Capabilities of Multinational Corporations Naoki Yasuda, Rikkyo University This study applies the process view of experience to investigate the relationship between a multinational corporation s (MNC s) experience of change with respect to a host country s government and its politically risky behaviors. The aim is to explicate a mechanism by which MNCs develop political capabilities. The realms of organizational experience in facing change in foreign political environments are conceptualized as (1) quick retreat, (2) silent observation, and (3) active engagement. Using MNCs in the global mining industry as the target sample, data are collected regarding MNC foreign operations, foreign asset procurement, and the changes of government in the host countries. Following analysis for , this study finds that the experience of quick retreat impairs political capabilities, whereas silent observation and active engagement contribute partially and fully respectively to the development of political capabilities. 13

15 The Sectorial and Spatial Impacts of Inward Foreign Direct Investment on Indigenous New Firm Creation in the Republic of Korea Laixiang Sun, University of Maryland In Hyeock (Ian), Loyola University Chicago Eunsuk Hong, SOAS, University of London This paper examines the impact of inward foreign direct investment (FDI) on the variation in the creation of new firms across high- versus low-technology industrial sectors and geographic space. Using a dataset of 44,434 newly created small firms in 234 regions of South Korea in , this study finds that while the spillover impacts of FDI in the low-tech industry are positive and significant across almost all four possible combinations of the intra-/inter-regional and intra-/inter-sectoral channels, the impacts in the high-tech industry are largely intra-sectoral within the host region and across neighboring regions. Moreover, all statistically significant spillover effects follow an inverted U -shaped curvilinear trend. Past Performance and FDI by Indian Software Firms Nitin Pangarkar, National University of Singapore Naveen Kumar, University of Akron Lin Yuan, University of Macau Vikas Kumar, University of Sydney In this paper, we explore the interfirm variation in the opening of international global development centers (GDCs) by Indian software firms. We examine how the past performance of firms, their degree of internationalization, possession of a valuable resource in the form of CMMI level 5 certification and rivals establishment of GDCs, influence the number of GDCs opened by them. We draw on the organizational learning theory, the resource based view and the institutional theory and base our analyses on a unique dataset about the opening of GDCs by 32 leading Indian software firms during Our analyses support most hypotheses. Session 8: Culture, Value and Executive Compensation (AAOM) 14

16 Subnational Institutional Contingencies and Executive Pay Dispersion Lerong He, State University of New York at Brockport Junxiong Fang, Fudan University This paper investigates the impact of subnational institutional contingencies on executive pay dispersion structure as well as the relationship between pay dispersion and firm performance. Using executive compensation data on Chinese listed firms between 2000 and 2011, we find that executive pay dispersion is significantly lower during the voluntary compensation disclosure period and in state-owned enterprises, while is significantly higher in cross-listed firms, and to a smaller extent in firms located in more developed regions. After controlling for endogeneity of pay determination, we find that executive pay dispersion is positively associated with firm performance. Such a relationship is further moderated by ownership structure and regional development level. Specifically, the linkage between executive pay dispersion and firm performance is stronger in non-soes and firms located in more developed regions. Our findings are also robust to alternative measures of pay dispersion and firm performance. Stock Option Exercises of Chinese Executives Kun Yao, University of Illinois, Urbana-Champaign I investigate stock option exercises by executives in Chinese state-owned firms, a behavior considered deviant from the institutional norms of the Chinese state bureaucracy. I seek to answer the following questions: When individual beliefs and actions are deeply embedded in their institutional context, as in the case of Chinese executives in overseas-listed firms, who break with the institutional status quo and what are the reasons? Contrary to the existing status-based theory of social deviance, institutional disengagement among Chinese executives often takes place in the middle of an institutional status hierarchy. Characteristics of the institutional environment and the individual biography further interact with individual positions in affecting the likelihood that an executive will diverge from the institutional expectation of not exercising stock options. 15

17 The Joint Effects of Societal Culture and Individual Values on Job Attribute Preferences: Evidence from Eight Nations Ji Li, Hong Kong Baptist University Chris Chu, University of Surrey Tao Liu, Southwest University Hong Zhu, Tongji University Jieying Xu, Hong Kong Baptist University Based on the theory of universal human values proposed by Schwartz (1992, 1994), we conducted a cross-national comparison of how values at two levels (cultural values at the societal level and personal values at the individual level) affect job attribute preferences (hereafter JAPS). Comparing samples from East Asian collectivistic cultures and major Western individualistic cultures, we predict that JAPS among men and women can be influenced by both societal values and individual values. Analyzing data from three large scale cross-cultural studies, the World Value Survey (WVS), GLOBE, and the IBM study, revealed several interesting findings: i) For predicting preferences for major job attributes, two societal values (collectivism and masculinity) are useful only when their effects do not conflict with the effect of the most relevant individual value; ii) The effects of individual values are ordered by their relative importance to a given issue; iii) individual values influence JAPS among men and women in an asymmetric way. For instance, while the value of gender stereotypes against females discourages women from selecting achievement as their job attribute, this value does not encourage more men to select the same job attribute. This new gender asymmetry may help explain other asymmetries observed in studies on gender, such as asymmetries in sex roles and the effects of gender diversity. Supervisors Social Class, Cultural Values and Ethics Chung-wen Chen, National Taiwan University of Science and Technology This study tested Merton s (1968) anomie theory. Merton argued that people s deviance is determined jointly by their social background and cultural contexts. We proposed that supervisors from a lower social class are more likely to justify 16

18 ethically suspect behaviors than are supervisors from a higher social class, and the individual-level association is influenced by cultural values including assertiveness, in-group collectivism, future orientation, humane orientation, and the importance of the economy. The results showed that the social-class ethics association transforms based on the cultural dimensions of assertiveness, future orientation, humane orientation, and the importance of the economy. Session 9: Does Organizational Climate Matter? (AAOM) High Performance Work Systems and Organizational Service Performance: The Roles of Different Organizational Climates Nien-Chi Liu, National Central University, Taiwan Yi-Ting Lin, National Central University, Taiwan Prior research on high-performance work systems (HPWSs) has extensively examined the effects of HPWSs on establishment or firm-level performance in manufacturing settings. This study extends the literature to examine how HPWSs relate to organizational performance in a service setting. Further, literature in strategic human resource management also declares that organizational climates play critical roles when exploring the relationships between HPWSs and organizational performance. However, little research has been done to examine the roles of different organizational climates on the HPWSs-performance relationships. Extending prior research that examined the mediating effect of service climate between organizational practices and service performance, we include flexibility climate of the management team as a moderating indicator of the HPWSs-service climate link. Data collected from multiple sources involving 166 managers and 483 management team members of 166 restaurants reveal that service climate constitutes the mediating role of the relationship. Both skill-enhancing and motivation enhancing HPWSs can lead to service performance; however, motivation-enhancing HPWS can initiate greater consensus of service requirements (i.e. service climate) among organizational employees. Interestingly, we find negatively moderating effects of management team flexibility climate on the relationship between motivation-enhancing HPWS and service climate. This result implies that management team flexibility climate cannot complement HPWs to 17

19 create positive synergy to facilitate service climate. Instead, management team flexibility climate and motivation-enhancing HPWS are substitutes. The existing of one type of organizational climate may impede the formation of the other, and then to influence the subsequent organizational outcomes. An Affective Perspective on the Cross-level Influence of Procedural Justice Climate Xiaowan Lin, University of Macau This study explored how procedural justice climate influences an individual s attitudes and behavior from an affective perspective. The results showed that procedural justice climate was related to group affective tone and explained additional variations in individual affect beyond that explained by individual perception of justice. In support of my arguments related to the role of emotional contagion in this process, individual differences in susceptibility to emotional contagion moderated the relationship between procedural justice climate and individual affect. The positive relationship between procedural justice climate and individual positive affect and its negative relationship with individual negative affect were stronger among individuals with high rather than low susceptibility to emotional contagion. Task interdependence also strengthened the relationship between procedural justice climate and positive affective tone at the group level. Furthermore, the indirect relationships between procedural justice climate and individual outcomes, including turnover intention, job satisfaction and knowledge sharing through individual affect and group affective tone were supported. A Multilevel Examination of the Effect of Service Climate on Resident Loyalty Mei-Ling Wang, Tamkang University Min-Shi Liu, Soochow University Based on the service profit chain, the present study evaluates the effect of service climate on resident loyalty by reviewing and incorporating residents perceptions of service quality regarding their interaction with staff members in the nursing home. The research also explores the mediating role of perceived service quality between service climate and resident loyalty. A conceptual two-level model linking service 18

20 climate to resident loyalty was developed and analyzed using data collected from 197 nursing staff members and 477 residents in 44 private nursing homes in Taiwan. The results show that service climate helps nursing homes improve perceived service quality, and positively influences resident loyalty and provides empirical support for the hypothesis that service climate helps nursing homes improve resident loyalty by improving perceived service quality. Both theoretical and practical implications are discussed as well as future research directions. A Study of Strategic Promotion: Exploring its Influence on Organizational Justice Climate and Employee Role Performance Jin Feng Uen, National Sun Yat-sen University Shu-Yuan Chen, National United University Jhih-Ren Jheng, National Sun Yat-sen University Employee promotion practices are suggested for its importance to help firms identify the talents and ability these years. However, employee fairness perception always plays the key role influencing the effectiveness of promotion practices. While a number of documented studies have suggested the promotion practices or selection methods, few have explored the factors influencing a fair promotion decision process, and provide empirical evidences. This study developed the strategic promotion, identified the key factors and examined the influence of strategic promotion on organizational justice climate and employee role performance. In addition, the mediation effects of procedural and interpersonal justice climate are also examined in this study. The data were collected from the 378 individual samples from 40 companies in manufacturing and service industries in Taiwan. This study provided the theoretical and methodological contributions to identify the importance of strategic promotion and suggest the related factors and provide empirical evidences for the potential influence of strategic promotion. The practical contributions are also discussed as important reference for organizations. Session 10: 價 值 創 造 (TAOM) 永 續 價 值 的 創 造 與 移 轉 以 資 源 基 礎 觀 點 探 討 女 性 家 族 成 員 對 事 業 家 族 無 形 資 產 之 世 代 傳 承 的 影 響 19