Steven S. Lui

The Role of Trust and Contractual Safeguards on Cooperation in Non-equity Alliances

Because partners may behave opportunistically in alliances, contractual safeguards or trust between partners are necessary for successful outcomes. However, it remains controversial whether safeguards and trust substitute or complement each other. Drawing on transaction cost theory, this study conceptualizes both contractual safeguards and trust as important control mechanisms in non-equity alliances, and develops a model that relates contractual safeguards and trust to cooperative outcomes. We test our hypotheses with data collected from 233 architect–contractor partnerships in Hong Kong. The results show that the relationship between contractual safeguards and cooperative outcomes depends on both the level and type of trust.

The Roles of Competence Trust, Formal Contract, and Time Horizon in Interorganizational Learning:

This study examines the roles of competence trust, formal contract, and time horizon on interorganizational learning. Two types of learning — knowledge accessing and knowledge acquisition — are first identified. I then evaluate the relative roles of competence trust and contract on these two types of learning. I further investigate how time horizon moderates their roles. The hypotheses are tested with a sample of 126 buyer—supplier relationships between the Hong Kong toy traders and their suppliers. The results show that knowledge accessing and knowledge acquisition have very different requirements on the competence trust and contract of an exchange relationship. These requirements also change with the time horizon of the relationship.

Socialized to be a professional: a study of the professionalism of accountants in Hong Kong

Abstract Extant definitions of professionalism in the management literature are ambiguous. Adopting a socialization perspective, in this study we view professionalism as the values, goals and norms learned through professional socialization. Based on Miner’s (1993) motivation role theory, we develop a new scale of professionalism. We further investigate the antecedents and outcomes of professionalism and test a number of hypotheses on 251 accountants in Hong Kong. Our results suggest that current job characteristics have a stronger effect on professionalism than does early stage socialization. Additionally, a higher level of professionalism is related to higher professional identification, higher job satisfaction and lower intentions to quit. Theoretical and managerial implications are drawn.

Drivers and Outcomes of Long‐Term Orientation in Cooperative Relationships

We argue in this paper that a buyer may deliberately develop long‐term orientation as a governance mechanism to deal with risks arising from exchange hazards, and to reduce the opportunistic behaviour of a supplier. While the exchange hazards of asset specificity pose a safeguarding problem, those of market uncertainty pose an adaptation problem. We test our model on a sample of 221 procurement partnerships. Our results show that satisfactory prior history of a supplier, asset specificity of the buyer and market uncertainty are all positively related to a buyers long‐term orientation towards a supplier. Consistent with the idea that asset specificity and market uncertainty pose different governance problems, we find that satisfactory prior history reduces the positive relationship between asset specificity and a buyers long‐term orientation, but enhances the positive relationship between market uncertainty and a buyers long‐term orientation. We also find that a buyers long‐term orientation fully mediates the relationship between satisfactory prior history and a suppliers opportunistic behaviour. Finally, implications on the theory and the practices of relationship governance are discussed.

Global Convergence, Human Resources Best Practices, and Firm Performance: A Paradox

In view of rapid globalization and the subsequent heightened competitive pressure, it is imperative to investigate whether, as the convergence thesis has suggested, globalization is leading towards a universal adoption of Human Resource best practices (HRBP). Based on Barney’s (1991) argument that a firm’s competence needs to be unique, rare, and hard to imitate, if firms are increasingly adopting the same set of HRBP, these practices can no longer provide the competitive advantage for them. In this paper, we integrate the globalization argument with institutional theory and resourced-based view to formulate several hypotheses to test the extent of convergence in HRBP and the subsequent effect on firm performance on a sample of 248 firms operating in Hong Kong.

Employee creativity and innovation in organizations: Review, integration, and future directions for hospitality research

Purpose The purpose of this paper is twofold. First, the study considers research on creativity and innovation in the field of general management and hospitality. Second, the paper develops a theoretical model to integrate individual- and group-level creativity particularly for service organizations. Design/methodology/approach This paper provides a comprehensive, albeit non-inclusive, review of research on creativity and innovation in organizations. The review reveals that hospitality research on creativity and innovation has not matched the new advances in management research, particularly the multilevel nature of creativity and the outcomes of creativity. Thus, to advance research in hospitality, this paper proposes a multilevel model of creativity based on a strategic contingency power theory. This model examines how individual- and group-level uncertainties hinder creativity. Moreover, the model also considers several uncertainty coping strategies and examines individual- and group-level outcomes of creativity. Findings The proposed theoretical model integrates individual- and group-level uncertainty determinants of creativity and yields a multilevel approach to creativity. Several testable hypotheses are proposed. Research limitations/implications This paper highlights the strategic contingency power approach between individual- and group-level uncertainties in creativity. Uncertainty coping practices that alleviate the negative effects of uncertainties on creativity will be useful to managers and service organizations. Originality/value The proposed model provides plausible guidelines that advance creativity research in hospitality management.

The Influence of Structural and Process Factors on Partnership Satisfaction in Interfirm Cooperation

In this study, the authors investigate the relationship of structure and process with partnership satisfaction in interfirm cooperation. In particular, they focus on the less-researched aspect of process. Structure refers to the ex-ante transaction cost-based and partner characteristics of the partnership, whereas process refers to the action pattern that unfolds during the cooperation. Two structural factors, asset specificity and partner reputation, are first examined. Informed by an action approach, they further identify three important aspects of the cooperation process, namely, action acquiescence, action simplicity, and action reciprocity. Their relationships with partnership satisfaction are tested on a sample of 230 architect-contractor partnerships in Hong Kong. The results revealed that action acquiescence and action simplicity explained significant variance in partnership satisfaction above and beyond those explained by the two structural factors.

HRM in Hong Kong

Given the enormous economic and developmental changes being experienced by nations in the Asia-Pacific region, and the related movement of people between and across countries, it is critical that we better understand the HRM policies and practices of these nations. The latest instalment in the Global HRM series, Managing Human Resources in Asia-Pacific (2E) presents the HRM situations in a number of South-East Asian and Pacific Rim countries, highlighting the growth of the personnel and HR function, the dominant HRM system(s) in the area, the influence of different factors on HRM, and the challenges faced by HR functions in these nations. This edition extends its coverage to Cambodia, Fiji, Indonesia, and the Philippines; a new chapter discusses HR research challenges in the region, such as the transferability of western constructs, problems with data collection, and the emergence of MNEs from Asia Pacific.

Does standardized service fit all?: Novel service encounter in frontline employee-customer interface

Purpose – The purpose of this paper is to explore the nature of the novel service encounter with reference to three research questions: first, what kind of creative acts do frontline employees undertake during a novel service encounter? Second, how does the novel service encounter correlate with service innovation? Third, how does it vary in different market environments? The novel service encounter refers to creative acts undertaken by frontline staff working at the employee-customer interface. These acts are important sources of new ideas for service innovation and demand systematic study. Design/methodology/approach – Methods in this study are triangulated by combining interviews, field observations and a survey to develop an observation template for examining the creative acts undertaken by frontline employees during service encounters in an international tourist apparel retailer. Findings – This paper provides initial empirical evidence of the process of the novel service encounter and highlights the...

Managing the Inter-Firm Cooperation Process: Exploratory Case Studies of Hong Kong Architects and Contractors

Researchers have suggested that both the contract and the process of inter-firm cooperation are important for its success. However, empirical knowledge of the inter-firm cooperation process is very limited. Drawing on extant literature on cooperation and competition and social exchange theory, we propose an action pattern model which describes the cooperating process in a parsimonious and systematic way. Twelve case studies were conducted on architect-contractor cooperation dyads in Hong Kong to explore the cooperation process using the lens of the action pattern model. Results gave rich anecdotal accounts of the three key parameters of the model: action acquiescence as a lubricant to deal with unspecified contractual situations, action simplicity as a signaling device to partners, and action reciprocity as a reward and punishment tactic. The implications of the action pattern model are discussed.