Thomas A. Birtch

The transferability of management practices: Examining cross-national differences in reward preferences

This study examines the multi-dimensional nature of reward preferences (i.e. types, systems, and criteria) in the cross-border context, an area not sufficiently addressed by prior research. We found empirical evidence to suggest both similarities and differences in employee reward preferences. Although culture may impinge on reward preferences, this study suggests that its influence may be diminishing or giving way to a range of other contextual forces. Directions for future research are also presented.

The Performance Implications of Financial and Non‐Financial Rewards: An Asian Nordic Comparison

This study empirically investigated cultures consequences on employee perceptions of the performance implications of financial and non‐financial rewards. Using a sample (n = 568) drawn from the banking industry in Finland and Hong Kong, we found that although the effects and predictive capability of culture (i.e. masculinity–femininity, individualism–collectivism, uncertainty avoidance, and power distance) offered some important insights, a range of other contextual factors (i.e. organizational, institutional, economic) wielded influence over and shaped reward–performance values, preferences, and behaviours. The emergence of these new paradigms necessitates that the US centric economic and behavioural theories (e.g. exchange) that underpin reward–performance be revisited and extended if they are to be applicable in the international context. Understanding the influence of a range of contextual forces is therefore critical to multinational organizations attempting to implement effective reward strategies aimed at achieving a diverse set of performance priorities. In addition to these novel theoretical and practical contributions, this study also paves the way for future research in this promising area of management studies.

Examining human resource management outsourcing in Hong Kong

This study explored the state of human resource (HR) outsourcing in the Asian context, a particularly important subject given its rapid proliferation in Europe and North America, the inconsistent and limited evidence from prior research, and its strategic importance to the human resource management (HRM) function. Drawing on both quantitative and qualitative data and the transaction cost, resource-based, and institutional perspectives, we found that although respondents were generally favourable towards outsourcing, that in practice its adoption and diffusion were in a nascent stage in Hong Kong. Decisions to outsource were, by and large, incremental and experimental and influenced by a range of contextual factors (e.g., availability of in-house expertise, skills and creativity, strategic priorities, legislation (coercive), availability of external service providers, and industry and peer (mimetic) influence). Despite considerable pressure to cut costs, instead of outsourcing in the first instance, firms placed greater emphasis on maximising internal resource utilization (insourcing). Implications for practice and suggestions for future research are also provided.

A social exchange theory framework for understanding the job characteristics–job outcomes relationship: the mediating role of psychological contract fulfillment

This study integrated the Job Demands-Resources (JD-R) model and concept of psychological contract fulfillment into a social exchange theory process framework to improve our understanding how and when job characteristics interact to influence job outcomes. Using survey data (n = 334), we found evidence to support our hypothesized relationships between job characteristics (job demands and job resources) and job outcomes (job satisfaction and organizational commitment); and the mediating role of psychological contract fulfillment (transactional and relational), such that when job resources (job control and support) were high, the negative effects of high job demands on psychological contract fulfillment were attenuated. Theoretical and managerial implications are discussed.

Front-line Service Employees’ Job Satisfaction in the Hospitality Industry: The Influence of Job Demand Variability and the Moderating Roles of Job Content and Job Context Factors

A study of 302 front-line employees in three 5-star Hong Kong hotels found that high job demand variability diminished their job satisfaction. However, adding discretion to the job content and improving rewards and training as part of the job context resources and support were found to moderate the negative effects of high job demand variability on the employees’ job satisfaction. The importance of service discretion is particularly intriguing for these employees, since their hotels’ current cultural approach is to require supervisory approval for deviations from standard practice. This study draws on the job demands–control (JD-C) model to incorporate socio-psychological characteristics of customer service positions in the analysis of employees’ job satisfaction.

Perceptions of Negative Workplace Gossip A Self-Consistency Theory Framework

We present and test a self-consistency theory framework for gossip: that perceived negative workplace gossip influences our self-perceptions and, in turn, this influences our behaviors. Using supervisor-subordinate dyadic time-lagged data (n = 403), we demonstrated that perceived negative workplace gossip adversely influenced target employees’ organization-based self-esteem, which, in turn, influenced their citizenship behavior directed at the organization and at its members. Moreover, by integrating victimization theory into our framework, we further demonstrated that negative affectivity, an individual’s dispositional tendency, not only moderated the self-consistency process but also predicted perceived negative workplace gossip. Our study therefore shifts attention to the target of negative workplace gossip and in doing so offers a promising new direction for future research. Implications to theory and practice are discussed.

The transfer and diffusion of HRM practices within MNCs: lessons learned and future research directions

Abstract The transfer and diffusion of human resources management (HRM) practices within the geographically dispersed operations of multinational corporations (MNCs) is receiving heightened attention, in particular because it is believed to significantly influence the performance and competitiveness of MNCs and their subsidiaries. However, as a review of the current body of literature suggests, further work is needed if we are to more fully understand the underlying process through which HRM practices are transferred and diffused or provide more holistic guidance with practitioner relevance. In this article, the authors review and synthesize the extant literature on the transfer and diffusion of HRM practices in the MNC context. Five salient themes or questions that prior research attempts to address are identified and critiqued. A general guiding framework is proposed as are possible avenues for future research.

Examining the perceived causes of successful employee performance: an East–West comparison

This study examines cross-national differences in the perceived attributes of employee performance using a multi-country sample drawn from Canada, China (Hong Kong), Finland and the UK. Significant country differences were found in the relative importance individuals attach to internal versus external causes of their performance. Respondents in Canada, Finland and the UK considered internal factors to be the most relevant. This was in contrast to their counterparts in China (Hong Kong) where a combination of both internal and external factors are believed to influence performance outcomes. Understanding these East–West differences is essential to managers grappling with the design and implementation of performance management systems in cross-border settings. The present study also paves the way for future research.

The 2001‐2005 price convergence in the A‐ and H‐shares of Chinese state‐owned enterprises: A story of unprecedented economic, regulatory and political change

Purpose - The purpose of this paper is to examine the population of Chinese state-owned enterprises (SOEs) listing A- (Chinese Mainland) and H- (Hong Kong) shares with a view to explaining differential pricing across the two stock types. Design/methodology/approach - Despite the fact that both A- and H-shares carry ostensibly the same shareholder benefits, when issued by a given SOE, major pricing differences are apparent. The behaviour of such prices for 20 quarters spanning January 2001 to December 2005 was examined. During this period, a marked contraction in the mean A- to H-price relative occurred, whereby A-prices generally softened and H-prices soared. Findings - It was noted that that the principal factors relevant to the contraction in the A- to H-share price relative relate to two issues: first, an enveloping risk premium centring on state-share disposal fears, and second, the firming of expectations surrounding the likely deployment of a qualified domestic institutional investor (QDII) scheme. Research limitations/implications - Modelling of changing expectations, especially in relation to uncertain policy deployment, is an invidious task. Measurement of such expectations is obviously strewn with difficulties. Originality/value - As pertinent factors largely hinge on the deliberations of the PRC state, the analysis herein provides useful input into how policy can either wittingly or unwittingly shape general share price movements. Such insights are especially important given the evolving nature of the Chinese economy.

Leaders Matter Morally: The Role of Ethical Leadership in Shaping Employee Moral Cognition and Misconduct

There has long been interest in how leaders influence the unethical behavior of those who they lead. However, research in this area has tended to focus on leaders’ direct influence over subordinate behavior, such as through role modeling or eliciting positive social exchange. We extend this research by examining how ethical leaders affect how employees construe morally problematic decisions, ultimately influencing their behavior. Across four studies, diverse in methods (lab and field) and national context (the United States and China), we find that ethical leadership decreases employees’ propensity to morally disengage, with ultimate effects on employees’ unethical decisions and deviant behavior. Further, employee moral identity moderates this mediated effect. However, the form of this moderation is not consistent. In Studies 2 and 4, we find that ethical leaders have the largest positive influence over individuals with a weak moral identity (providing a “saving grace”), whereas in Study 3, we find that ethical leaders have the largest positive influence over individuals with a strong moral identity (catalyzing a “virtuous synergy”). We use these findings to speculate about when ethical leaders might function as a “saving grace” versus a “virtuous synergy.” Together, our results suggest that employee misconduct stems from a complex interaction between employees, their leaders, and the context in which this relationship takes place, specifically via leaders’ influence over employees’ moral cognition.