Kenneth S. Law

Multidimensional constructs in structural equation analysis: An illustration using the job perception and job satisfaction constructs

This article contrasts the composite view of the relationship between multidimensional constructs and their facets/dimensions with the factor view. The composite view assumes that facets are components of the composite constructs, while the factor view assumes that facets are manifestations of latent constructs. An empirical study is used to illustrate the fact that these two views will lead to different conclusions about the relationship of constructs in covariance structure analyses. It is suggested that researchers must examine the theoretical basis of their topic in order to determine whether the factor or composite view is more suitable for the multidimensional construct of interest.

Organizational citizenship behavior : Comparing perspectives of supervisors and subordinates across four international samples

A total of 431 independent supervisor and subordinate dyads from the United States, Australia, Japan, and Hong Kong evaluated the perceived job role boundary of the subordinate ;, Participants rated the degree to which they agreed that the behavior described in the organizational citizenship behavior (OCB) scale developed by P. M. Podsakoff, S. B. MacKenzie, R. H. Moorman, and R. Fetter (1990) was an expected part of the subordinates job. Each supervisor was paired with only one subordinate, and all participants held the same jobs in the same company but with branches in these 4 nations. The scale used was found to have conceptual equivalence across all subsamples. Results indicated that supervisors had broader definitions of job roles than subordinates. Participants from Hong Kong and Japan were also more likely to regard some categories of OCB as an expected part of the job than were participants from the United States and Australia.

Effect of supervisor–subordinate guanxi on supervisory decisions in China: an empirical investigation

As China is becoming an important market and there are a lot of foreign ventures operating there, different lines of research have been providing useful information for foreign ventures to manage effectively in China. In this paper, we discuss one of the critical factors leading to successful management of Chinese subordinates, i.e. building and maintaining good guanxi (i.e., interpersonal connection) with them. We conducted an empirical investigation to illustrate (1) the supervisor-subordinate guanxi concept is different and unique when compared to other similar concepts in the Western literature such as leader-member exchange (LMX) and commitment to supervisor; (2) the supervisor-subordinate guanxi will affect the Chinese supervisors administrative decisions; (3) guanxi can be measured by concrete behaviour/activities. Data on 189 supervisor-subordinate dyads were collected in the Peoples Republic of China (PRC). Results indicated that supervisor-subordinate guanxi is a distinct concept from LMX and commitment to supervisor. It also has additional explanatory power over supervisory decisions on promotion and bonus allocation after controlling for performance. Implications for foreign ventures and expatriates are discussed.

Power-Distance, Gender and Organizational Justice

A sample of Hong Kong employees was used to test the hypotheses that power-distance orientation and gender moderate the relationships between justice perceptions and the evaluation of authorities (trust in supervisor) and the organization (contract fulfillment). Results indicated that 1) the relationship between procedural justice and contract fulfillment was higher for males, 2) the relationship between procedural justice and trust in supervisor was higher for those with low power-distance orientations, and 3) the relationship between distributive justice and contract fulfillment was higher for those with low power-distance orientations. The discussion addresses the implication of including power-distance and gender variables in research on procedural and distributive justice.

The significant role of Chinese employees’ organizational commitment: implications for managing employees in Chinese societies

The high rate of turnover has been a substantial problem in managing Chinese employees in joint ventures in the Peoples Republic of China. Organizations operating in the PRC face a dilemma of whether it is worthwhile to invest in better compensation packages and training and development programs if their employees will leave the organizations anyway. This study argues that because traditional Chinese culture values loyalty, guanxi and pao, organizations will benefit in the long run if they cultivate employees organizational commitment. Data from two samples from the PRC and Hong Kong were analyzed to understand the role of organizational commitment in affecting other attitudinal antecedents (i.e., job satisfaction and turnover intention) to turnover. Results indicate that organizational commitment among Chinese employees has a much stronger effect on job satisfaction and turnover intention than results from studies conducted in the West. Our analysis provides strong support for the effect of Chinese traditional values in the modern Chinese work place. Practical implications for organizations operating in China are discussed.

Testing Reciprocal Relations by Nonrecursive Structuralequation Models Using Cross-Sectional Data

Structural equation modeling has become a common technique to test the reciprocal relations between two constructs using cross-sectional data in management research. Although there are pros and cons to this application, it appears clear that sometimes it is necessary to use a cross-sectional nonrecursive model as an approximation of the cross-lagged reciprocal effects. Several factors (i.e., proper specification of the nonrecursive model, effects of instrumental variables, time interval, true cross-lagged effects, and sample size) that may affect the adequacy of the nonrecursive model are identified from the literature. Two examples using realistic parameters found in the literature are used to explore the potential effects of these factors in the application of a nonrecursive model. The article ends with a discussion of future research implications and recommendations of studies designed to test possible reciprocal relations between constructs.

Managing localization of human resources in the PRC: A practical model

The localization of top management positions is an important objective for many Transnational Corporations (TNCs). Despite its importance, there is little systematic discussion of how the localization process should be managed. Based on a review of related literature and in-depth interviews with six TNCs in the PRC, we developed a three-stage model of the localization process. In this article, we use that model to describe the challenges that TNCs face when localizing top management positions in the Peoples Republic of China.

The Importance of Justice Perceptions on Pay Effectiveness: A Two-Year Study of a Skill-Based Pay Plan

We conducted a survey across a two-year period to examine the attitudinal effects of skill-based pay (SBP) plans in a consumer products company in the Northeast region of the United States. We examined the relationship between SBP plan characteristics and employees’ evaluation of (and reactions to) the pay system; fairness perceptions were considered as the explanatory mediating variable. The results demonstrate that SBP plans, which provide training and are better understood and communicated, will lead to an increased general perception of fairness which, in turn, will lead to more positive evaluations of the plans a year later. Implications for the relationships between fairness perception and pay system design are discussed.

Empowerment in the Manager-Employee Relationship in Hong Kong: Interdependence and Controversy

Abstract M. Deutschs (1949) theory of cooperation and competition may be usefully extended to the study of effective, empowering, managerial leadership in Chinese settings. Results of structural equation modeling and other analyses on data collected from interviews of Chinese managers and employees in Hong Kong indicated that cooperative goals contributed to constructive discussion between managers and employees and that such discussions, in turn, resulted in productive work and stronger work relationships. Cooperative goals and constructive controversy also predicted democratic leadership and the power of employees and managers. The results suggest that Chinese and North American managers may operationalize goals and controversy differently.

Collectivistic and Individualistic Values: Their Effects on Group Dynamics and Productivity in China

Collectivistic and individualistic values are theorized to have far reaching effects on teamwork and organizations. This study proposes that cooperative and competitive goal interdependence mediates the relationship between these values and group interaction and outcomes. Working in State Owned Enterprises in three regions of China, 689 employees in 194 teams indicated their groups values, goal interdependence, constructive controversy, and productivity. Their managers also reported on the extent these teams were productive. Structural equation analysis suggested that collectivistic values may reinforce cooperative goals and an open-minded discussion of views which in turn results in strong relationships and team productivity, as experienced from both the teams and managers perspectives. Individualistic values, especially the horizontal version, can have contrasting effects through fostering competitive goals and closed-minded discussion. These results, coupled with previous research, suggest that collectivist values, cooperative goals, and constructive controversy provide an important foundation for productive teamwork.