Daniel M. Cable

Network Ties, Reputation, and the Financing of New Ventures

Explaining how entrepreneurs overcome information asymmetry between themselves and potential investors to obtain financing is an important issue for entrepreneurship research. Our premise is that economic explanations for venture finance, which do not consider how social ties influence this process, are undersocialized and incomplete. However, we also argue that organization theoretic arguments, which draw on the concept of social obligation, are oversocialized. Drawing on the organizational theory literature, and in-depth fieldwork with 50 high-technology ventures, we examine the effects of direct and indirect ties between entrepreneurs and 202 seed-stage investors on venture finance decisions. We show that these ties influence the selection of ventures to fund through a process of information transfer.

The convergent and discriminant validity of subjective fit perceptions.

This study examined whether employees develop perceptions about 3 different types of fit: person-organization fit, needs-supplies fit, and demands-abilities fit. Confirmatory factor analyses of data from 2 different samples strongly suggested that employees differentiate between these 3 types of fit. Furthermore, results from a longitudinal design of 187 managers supported both the convergent and discriminant validity of the different types of fit perceptions. Specifically, person-organization fit perceptions were related to organization-focused outcomes (e.g., organizational identification, citizenship behaviors, turnover decisions), whereas needs-supplies fit perceptions were related to job- and career-focused outcomes (e.g., job satisfaction, career satisfaction, occupational commitment). Although demands-abilities fit perceptions emerged as a distinct construct, they were not related to hypothesized outcomes (e.g., job performance, raises).

Complementary and supplementary fit: a theoretical and empirical integration.

Complementary and supplementary fit represent 2 distinct traditions within the person-environment fit paradigm. However, these traditions have progressed in parallel but separate streams. This article articulates the theoretical underpinnings of the 2 traditions, using psychological need fulfillment and value congruence as prototypes of each tradition. Using a sample of 963 adult employees ranging from laborers to executives, the authors test 3 alternative conceptual models that examine the complementary and supplementary traditions. Results show that an integrative model dominates the other two, such that both traditions simultaneously predict outcomes in different ways.

The phenomenology of fit: linking the person and environment to the subjective experience of person-environment fit.

The authors distinguished 3 approaches to the study of perceived person-environment fit (P-E fit): (a) atomistic, which examines perceptions of the person and environment as separate entities; (b) molecular, which concerns the perceived comparison between the person and environment; and (c) molar, which focuses on the perceived similarity, match, or fit between the person and environment. Distinctions among these approaches have fundamental implications for theory, measurement, and the subjective experience of P-E fit, yet research has treated these approaches as interchangeable. This study investigated the meaning and relationships among the atomistic, molecular, and molar approaches to fit and examined factors that influence the strength of these relationships. Results showed that the relationships among the approaches deviate markedly from the theoretical logic that links them together. Supplemental analyses indicated that molar fit overlaps with affect and molecular fit gives different weight to atomistic person and environment information depending on how the comparison is framed. These findings challenge fundamental assumptions underlying P-E fit theories and have important implications for future research.

Employee Resistance to Organizational Change : Managerial Influence Tactics and Leader-Member Exchange

The authors explored the relationship between managerial influence tactics and employee resistance to organizational change. Using attribution theory, the authors developed a series of hypotheses concerning the effects of influence tactics on employee resistance to change and the ways in which these relationships are moderated by leader-member exchange. Results, which are based on multisource data, suggest that employee resistance reflects both the type of influence a manager uses and the strength of leader-member exchange.

THE EMPLOYMENT INTERVIEW: A REVIEW OF RECENT RESEARCH AND RECOMMENDATIONS FOR FUTURE RESEARCH

Abstract The past decade has seen continued interest in the employment interview, with several changes in research emphasis. The present review is a comprehensive examination of interview research conducted since Harris last reviewed this literature. We begin with a review of the traditional areas of interview research: reliability, validity, structured interviews, interviewer differences, equal employment opportunity issues, impression management, and decision-making processes. Next, we review and discuss more recent developments in interview research such as the use of the interview as a means of assessing person–organization (P–O) fit and applicant reactions to the employment interview. Throughout the review, suggested topics for future research are discussed.

Breaking Them in or Eliciting Their Best? Reframing Socialization around Newcomers’ Authentic Self-expression:

Socialization theory has focused on enculturating new employees such that they develop pride in their new organization and internalize its values. We draw on authenticity research to theorize that the initial stage of socialization leads to more effective employment relationships when it instead primarily encourages newcomers to express their personal identities. In a field experiment carried out in a large business process outsourcing company in India, we found that initial socialization focused on personal identity (emphasizing newcomers’ authentic best selves) led to greater customer satisfaction and employee retention after six months than socialization that focused on organizational identity (emphasizing the pride to be gained from organizational affiliation) or the organization’s traditional approach, which focused primarily on skills training. To confirm causation and explore the mechanisms underlying the effects, we replicated the results in a laboratory experiment in a U.S. university. We found that individuals working temporarily as part of a research team were more engaged and satisfied with their work, performed their tasks more effectively, and were less likely to quit when initial socialization focused on personal identity rather than on organizational identity or a control condition. In addition, authentic self-expression mediated these relationships. We call for a new direction in socialization theory that examines how both organizations and employees can benefit by emphasizing newcomers’ authentic best selves.

Organizational Hiring Patterns, Interfirm Network Ties, and Interorganizational Imitation

This study introduces the principles of social contagion and institutional theory to human resource management by examining the top management team (TMT) hiring patterns of Fortune 500 firms. Results provide some initial but promising evidence that social environmental factors should be incorporated into human resource management theory. Specifically, results indicate that firms hired TMT members from sources with which they shared interfirm network ties and that TMT hiring patterns were shaped by mimetic isomorphism.

Smaller but not necessarily weaker: How small businesses can overcome barriers to recruitment

For small firms, one of their most difficult but important goals is locating and hiring new qualified employees that enable them to offer products and services. In fact, despite the currently slowing economy, a recent Conference Board survey of leaders of small and mid-size firms identified scarcity of qualified employees as the most often cited threat to business growth, identified by almost 50% of those surveyed. By contrast, less than 25% of the sample saw the slowing growth in the economy as a threat to firm growth, and only 10% were worried about a collapse in stock prices (Muson, 2001). Consistent with these findings, in a recent National Federation of Independent Business (NFIB) survey of small businesses, 35% reported having difficult-to-fill job openings, a record

When It Comes to Pay, Do the Thin Win? The Effect of Weight on Pay for Men and Women

Cultivation theory suggests that society holds very different body standards for men versus women, and research indicates that the consequences of defying these social norms may not be linear. To test these notions in the employment context, we examined the relationship between weight and income and the degree to which the relationship varies by gender. For women, we theorized a negative weight–income relationship that is steepest at the thin end of the distribution. For men, we predicted a positive weight–income relationship until obesity, where it becomes negative. To test these hypotheses, we utilized 2 longitudinal studies, 1 German and 1 American. In Study 1, weight was measured over 2 time periods, and earnings were averaged over the subsequent 5 years. Study 2 was a multilevel study in which weight and earnings were within-individual variables observed over time, and gender was a between-individual variable. Results from the 2 studies generally support the hypotheses, even when examining within-individual changes in weight over time.