Sun Young Sung

Do organizations spend wisely on employees? Effects of training and development investments on learning and innovation in organizations

The present study examines the effects of training and development on organizational innovation. We specifically suggest that the training and development investments of an organization affect its innovative performance by promoting various learning practices. We empirically tested our hypothesis by using time-lagged, multi-source data collected from 260 Korean companies that represent diverse industries. Our analysis showed that corporate expenditure for internal training predicts interpersonal and organizational learning practices, which, in turn, increase innovative performance. The data also revealed that the positive relationship between interpersonal and organizational learning practices and innovative performance is stronger within organizations that have stronger innovative climates. By contrast, investment in employee development through financial support for education outside an organization poses a significant negative effect on its innovative performance and no significant effect on learning practices. The present study provides a plausible explanation for a mechanism through which the investment of an organization in employees enhances its innovative performance. Copyright

Who initiates and who implements? A multi-stage, multi-agent model of organizational innovation

Innovation researchers have typically focused on either the adoption or the implementation phase of organizational innovation. In the present study, we propose that four agents of innovation (i.e., top management, external environment, innovation, and employees) play distinct roles in the adoption and implementation stages, and that, together, they predict innovation outcomes. We test the phase-dependent process of organizational innovation using data drawn from intensive interviews with 40 executives of a consumer product company. A path analysis of 94 innovations introduced to the organization over the past 20 years indicates that there is a signifi cant level of stability in innovation-driving dynamics. Particularly, top management and employees tend to remain heavily involved in the implementation of an innovation if they played an important role in adopting it. The four agents of innovation play different roles in accruing benefi ts from the innovation. The results also suggest that employees tend to produce positive innovation outcomes when they have been involved in the innovation from the very beginning and are thus responsible for its adoption. The present study makes a distinct contribution to the literature by exploring the multi-stage, unfolding processes of organizational innovation.

Tangible and Intangible Rewards and Employee Creativity: The Mediating Role of Situational Extrinsic Motivation.

This study examined the effects of tangible and intangible forms of creativity-contingent rewards on employee creativity. Situation-specific intrinsic and extrinsic motivations were proposed as mediators of the reward-creativity link. Based on data collected from 271 employees and their supervisors, results revealed the following: (a) intangible rewards for creativity are positively related to intrinsic and extrinsic task motivations; (b) tangible rewards for creativity are negatively related to extrinsic task motivation; and (c) employee creativity, as rated by the supervisor, is positively related to extrinsic motivation, but not to intrinsic motivation. Results indicate the significance of differentiating the two types of creativity-contingent rewards, and highlight the need to reconsider the roles of intrinsic and extrinsic motivation in promoting creativity in organizations.

Dual Effects of Job Complexity on Proactive and Responsive Creativity Moderating Role of Employee Ambiguity Tolerance

Departing from existing studies based on general notion of creativity, we highlight the driver or initiating force behind creative engagement in organizations. To this end, we distinguish between proactive and responsive creativity and provide a nuanced perspective on the processes underlying distinct types of employee creativity. We propose that job complexity indirectly affects proactive and responsive creativity of employees by promoting psychological empowerment and cognitive overload, respectively. The ambiguity tolerance of employees is hypothesized to moderate the indirect effects of job complexity on the two types of creativity. Data collected from 143 employee–supervisor dyads in various companies in Sweden and Korea supported most of our hypotheses. For employees with high ambiguity tolerance, job complexity exhibited a significant indirect effect on proactive creativity through psychological empowerment. For employees with low ambiguity tolerance, job complexity exerted a significant indirect effect on responsive creativity via cognitive overload. By revealing distinct psychological paths toward different types of creativity and identifying a boundary condition for such processes, the present study provides an ecologically valid explanation regarding creativity in organizations.

To invest or not to invest: strategic decision making toward investing in training and development in Korean manufacturing firms

Abstract This study draws on the literature on strategic choice theory and training and development (T&D) to explore the theoretical mechanisms that explain the strategic decisions of top management, thereby leading to the T&D investment of firms. The current theoretical framework was examined using cross-lagged data collected from 163 Korean manufacturing companies at three time points over a five-year period. Results confirmed that firm performance and environmental change exert significant effects on top management strategic orientation toward T&D, which in turn, lead to financial resource allocation to T&D. The analysis also demonstrated that the effect of top management strategic orientation toward T&D on actual financial investment in T&D is stronger when the current level of human capital is high but not when it is low. This study provides meaningful practical and theoretical insights into the firm-level strategic decisions on T&D investment in organizations.

Workforce diversity in manufacturing companies and organizational performance: the role of status-relatedness and internal processes

Abstract This study investigates workforce diversity at the organization level, which has been relatively overlooked. We focus on status-related processes that complement the ambiguities involving social categorization and information processing perspectives. We further identify the theoretically meaningful mediators (i.e. innovative climate, employee competence and employee satisfaction) of the diversity–performance relationship at the organization level. We empirically validate our hypothesis using time-lagged, multi-source data collected from 256 Korean manufacturing companies at 2 time points over a 2-year period. Results indicate that hierarchical position diversity is negatively related to employee competence and satisfaction, which in turn negatively affects operational performance. Education diversity positively affects innovative climate, employee competence and employee satisfaction, thus increasing the innovation and operational efficiency of an organization. This study elaborates the distinct implications of diversity dimensions with different levels of status-relatedness, and offers empirical contributions that highlight the mediating mechanisms through which diversity enhances different forms of organizational performance.