Large Multinational Organization Research Articles

Consistency and Organizational Justice: The Role of Calibration Committees in Subjective Performance Evaluation Systems

Using proprietary data from the internal audit department of a large multinational organization, we provide the first empirical evidence of the role that “calibration committees” play in subjective performance evaluation systems. Specifically, we examine how distributional properties of ratings, supervisor rating credibility, and structural characteristics of the calibration process influence the likelihood, direction, and magnitude of calibration committee adjustments to supervisors’ subjective ratings of subordinate auditors. We find that calibration committees make adjustments that remove inter-rater differences in the distribution of initial ratings, but have asymmetric preferences for the downward adjustment of relatively higher ratings versus the upward adjustment of relatively lower ratings. In doing so, calibration committees mitigate leniency bias, while exacerbating centrality bias. Contrary to expectation, we find no association between calibration committee adjustments and our proxies for the credibility of supervisor ratings. However, we do find that committee adjustments are decreasing in the hierarchical distance between the committee and the subordinate auditor being rated, consistent with the theoretical prediction that decision rights are optimally collocated with the decision-maker possessing the greatest relevant knowledge. We also find that adjustments are less likely when the rating supervisor serves on the committee. This study contributes to the literature on subjective performance evaluation by providing novel insights into the organizational dynamics of subjective performance evaluation systems when decision rights span hierarchical levels of the organization.

Efficiency and effectiveness of small retailers: The role of customer and entrepreneurial orientation

While it is generally agreed that a customer and entrepreneurial orientation enhance company performance in large multi-national organizations, relatively little is known about how these variables influence the small retailers that form a substantial part of national economic well-being. This study investigates the potential influences of these factors on the performance of small retailers in Switzerland, because this nation has long had a reputation for creativity, innovation and a customer focus. Performance is viewed as a two dimensional concept including an effectiveness and an efficiency perspective. Data for this study were collected through personal interviews from 261 SMEs. While customer orientation is found to be positively related to both efficiency and effectiveness, results only show a positive impact from entrepreneurial orientation on effectiveness. At the same time, entrepreneurial orientation is found to be a driver of customer orientation, and thus having an indirect impact also on efficiency for the small retail firms. All in all, the study shows that small retailers do indeed put an emphasis on both customer and entrepreneurial orientation in spite of their limited resources. It also stresses that this will increase their competitive advantage. In the light of existing literature, limitations and future research directions are subsequently addressed.

Understanding informal feedback seeking in the workplace

Purpose – The purpose of this study is to investigate whether the position of employees in the organizational hierarchy is important in explaining their feedback seeking behaviour. Design/methodology/approach – This study takes a social network perspective by using an ego-centric network survey to investigate employees ' feedback seeking behaviour within their professional networks. Data were collected from an online questionnaire among 243 employees working in a large multinational organization located in The Netherlands. Findings – Results indicate that employees frequently seek feedback from colleagues within the same department. However, managers or leaders seek significantly less feedback from colleagues in the same department and from coaches, as compared to others. Furthermore, employees perceive the feedback they receive from managers/leaders, coaches, and colleagues in the same department as useful. Originality/value – The study findings extend the existing literature on the dynamics of feedback seeking of employees across different hierarchical levels. Methodologically, an egocentric network survey was used to investigate the employees ' relationships within their professional network. The findings suggest that this approach, novel in research on feedback seeking, is valuable and promising.

Information security and business continuity management in interorganizational IT relationships

PurposeThis paper aims to understand how managers of IT and information security aim to enhance information security and business continuity management in interorganizational IT relationships, such as outsourcing, cloud computing and interorganizational systems.Design/methodology/approachAn explorative study of large multinational or local organizations operating in Finland was conducted. In total, 18 IT and information security managers were interviewed with semi‐structured questions.FindingsFirst, the author discovered that several methods such as contracts, audits and standards were applied to balance power relationships between organizations or transfer responsibilities to other parties. The objectives of these methods are different within organizations. Second, the paper presents a comprehensive view of different security and continuity solutions in interorganizational IT relationships. The findings have practical value for IT managers and information security experts.Research limitations/implicationsThe interviews were conducted in different organizations. Therefore, it is suggested that a single in‐depth study that examines the phenomenon on different organizational levels within one organization would supplement the findings. Further studies on the power, trust and control balance of interorganizational IT relationships are required.Originality/valueThis paper builds on and expands information security and business continuity literature by illustrating that audits and standards play different roles in interorganizational IT relationships within organizations, and that contracts form the basis of those relationships. Information security problems and business continuity breaches caused by external partners and outsourcing vendors affect the reputation and value of the client company. Therefore, managers must have the means to ensure the continuity of operations.

Tips & Toes: a total reward strategy fuels growth

Subject area Human resources (compensation, total rewards, employee engagement, training and development), strategy. Study level/applicability Undergraduate HRM majors and postgraduate business and management. Case overview This case highlights the strong growth and expansion of a former small to medium-sized enterprise (SME) in the United Arab Emirates, Tips & Toes. The company is a leader in the beauty and fitness service industry, and much of its growth and success is attributable to the leadership of its general manager and her implementation of a differentiation strategy, a market innovator in concepts, products and services, and a total rewards system for engaging and retaining employees. Tips & Toes is planning for continued, aggressive growth and expansion over the next five years. This case also highlights an underrepresented area of focus for case studies: women-led businesses, SMEs, and entrepreneurship and innovation. Expected learning outcomes The main focus of this case is for students to examine the beneftts of using a total rewards strategy to engage and retain employees, and more importantly to see the links between such a strategy and business and revenue growth. This is particularly a salient learning point for students in emerging markets, where more traditional types of compensation and views of the employment contract tend to prevail. In addition, this case could be used as a supplementary learning experience regarding strategy and strategic focus of an organization (i.e. the Treacy and Wiersema model of product leadership, customer intimacy, or operational excellence as a strategic discipline for a firm). And finally, this case provides an example of a woman-led organization which grew out of SME status into a market leader; this example provides students with insight into workable entrepreneur opportunities to which they might not see a direct linkage when reading case studies of large multinational organizations or conglomerates. Supplementary materials Teaching notes are available; please consult your librarian for access.

A Cross-National Investigation of the Measurement Equivalence of Computerized Organizational Attitude Surveys: A Two-Study Design in Multiple Nations

Multinational organizations frequently administer employee surveys online. This process is accompanied, however, by concerns about the psychometric equivalence of measures administered by different modalities. Using data from a large multinational organization (N = 57,861 in Study 1; N = 105,734 in Study 2), the present research examined cross-national generalizability of the measurement equivalence of an organizational attitude survey administered by computer and paper-and-pencil. Results of multiple group confirmatory factor analysis indicated psychometric equivalence of the test modalities in disparate national samples. Implications for the cross-national use of computerized organizational attitude surveys are discussed.

Declared versus actual organizational culture as indicated by an organization's performance appraisal

This study examines the incompatible aspects of the declared and actual organizational norms as cultural aspects. Data were drawn from a performance evaluation conducted in a large multinational pharmaceutical organization. The selected evaluation dimensions are based on the publicly articulated behavioral norms stated by top level management. The empirical model partially supported the hypothesis. Two predictors, intrinsic normative motivation dimensions and professional behaviors, showed some overlap between the declared and the actual evaluative behavior norms. One implication of this study is that organizations should make a substantial effort to instil their desired vision and norms among their members.

Why seeking help from teammates is a blessing and a curse: A theory of help seeking and individual creativity in team contexts.

Research has not explored the extent to which seeking help from teammates positively relates to a person's own creativity. This question is important to explore as help seeking is commonly enacted in organizations and may come with reciprocation costs that may also diminish creativity. Results based on 291 employees in a single division of a large multinational organization revealed that seeking help predicted creativity and mediated the relationship between intrinsic motivation and creativity. However, help seekers also incurred reciprocation costs in that they tended to give more help to teammates, and giving help to teammates was negatively related to creativity. In general, giving higher levels of help attenuated the positive relationship between help seeking and creativity. We also tested an integrated model to show that help giving moderated the mediated relationship between intrinsic motivation and creativity via help seeking, such that higher levels of help giving attenuated this mediated effect. We discuss theoretical and practical implications recommending additional research regarding the interpersonal creative process in team contexts.

Global Labor Practices And Corporate Social Responsibility

As companies work in the international marketplace, a level of corporate responsibility is expected by the international business community and by the consumers. Companies must set standards for operations that satisfy the expectations in the home country as well as the host countries. Multinational companies can no longer set financial goals in terms of sales and profitability as the only measures of success; but they must also set standards for ethical and socially responsible behavior of their own enterprise as well as their stakeholders. This paper, using Nike as an example, describes challenges associated with Corporate Social Responsibility (CSR) for large multinational organization. Furthermore, this paper discusses what Corporate Social Responsibility (CSR) is, and what is not, so managers can clearly and realistically state their goals and perspectives on what social responsibility means to their organizations and stakeholders.

Qualitative research on software development: a longitudinal case study methodology

This paper reports the use of a qualitative methodology for conducting longitudinal case study research on software development. We provide a detailed description and explanation of appropriate methods of qualitative data collection and analysis that can be utilized by other researchers in the software engineering field. Our aim is to illustrate the utility of longitudinal case study research, as a complement to existing methodologies for studying software development, so as to enable the community to develop a fuller and richer understanding of this complex, multi-dimensional phenomenon. We discuss the insights gained and lessons learned from applying a longitudinal qualitative approach to an empirical case study of a software development project in a large multi-national organization. We evaluate the methodology used to emphasize its strengths and to address the criticisms traditionally made of qualitative research.

RFID opportunities within manufacturing SMEs

Radio Frequency Identification (RFID) is an Automatic Identification and Data Capture (AIDC) technology that is used to identify people or objects carrying encoded microchips through the use of radio waves. RFID technologies have been successfully implemented within many large multinational organisations, but research into the successful implementation of RFID systems within Small and Medium Size Enterprises (SMEs) is far more limited. An investigation with various FFID systems was conducted at a manufacturing SME to identify the areas in which the implementation of an RFID system would benefit the company through improved efficiency and visibility of the processes and also the accuracy and reliability of real-time data transfer. [Received 8 February 2010; Revised 21 August 2010; Accepted 12 December 2010]

Effective design of a global leadership programme

The purpose of this paper is to report level 3 evaluation findings from a leadership development programme. This paper comprises a case study, quantitative data analysis, and results from critical incident semi-structured interviews. A unique research model was developed from a literature review. There are many problems associated with the design and delivery of leadership development programmes. Senior executive-taught workshops, 360° feedback, and action learning were deliberately employed to increase the adoption and application of specific behaviours after the programme. The results substantiate previous findings on the impact of these elements by demonstrating concrete behavioural changes rather than perceived enhancement in leadership capabilities as often cited in other studies. The model should be further tested, applied and refined as necessary. Organizations wishing to develop leaders could be guided by the model and findings of this research. A novel and innovative design model was developed from a literature review, tested against a leadership programme in a large well-known multi-national organization, and later refined based on the empirical results. It will be of value to HRD managers and researchers.

The Double-Edged Swords of Autonomy and External Knowledge: Analyzing Team Effectiveness in a Multinational Organization

Extending the differentiation-integration view of organizational design to teams, I propose that self-managing teams engaged in knowledge-intensive work can perform more effectively by combining autonomy and external knowledge to capture the benefits of each while offsetting their risks. The complementarity between having autonomy and using external knowledge is contingent, however, on characteristics of the knowledge and the task involved. To test the hypotheses, I examined the strategic and operational effectiveness of 96 teams in a large multinational organization. Findings provide support for the theoretical model and offer implications for research on team ambidexterity and multinational management as well as team effectiveness.

AIDC feasibility within a manufacturing SME

PurposeThe purpose of this paper is to research and design a feasible automatic identification and data capture (AIDC) system for a manufacturing small to medium enterprise (SME) that is able to facilitate the flow of accurate and real‐time data throughout the manufacturing process.Design/methodology/approachThe processes and operations conducted at a manufacturing SME were critically analysed in order to identify areas, where the use of an AIDC system could be used to improve the efficiency and visibility of the processes throughout manufacture. The areas for improvement could then be identified and solved through specific applications and/or systems of which a cost benefit analysis could be conducted.FindingsSignificant cost savings are found through the implementation of a radio frequency identification (RFID) system based on the reduction of safety stock, the elimination of manual job tracking and the reduction of the manual input and written data throughout the process.Research limitations/implicationsThe read range of the technology outlined in this project was found to be limited due to the metal interference of the products, which should be aimed to be improved through the detection of other RFID transponders or a better adhesive medium used.Practical implicationsThe most common limitations were found to be the lack of IT infrastructure, limited knowledge on the benefits of the system and also cultural resistance to change. However, appropriate training is to be provided to overcome any problems.Originality/valueAIDC systems utilising data carrier technologies have been successfully implemented within many large multinational organisations but research into the implementation of AIDC systems within SMEs is far more limited.

Agility from First Principles: Reconstructing the Concept of Agility in Information Systems Development

Awareness and use of agile methods has grown rapidly among the information systems development (ISD) community in recent years. Like most previous methods, the development and promotion of these methods have been almost entirely driven by practitioners and consultants, with little participation from the research community during the early stages of evolution. While these methods are now the focus of more and more research efforts, most studies are still based on XP, Scrum, and other industry-driven foundations, with little or no conceptual studies of ISD agility in existence. As a result, this study proposes that there are a number of significant conceptual shortcomings with agile methods and the associated literature in its current state, including a lack of clarity, theoretical glue, parsimony, limited applicability, and naivety regarding the evolution of the concept of agility in fields outside systems development. Furthermore, this has significant implications for practitioners, rendering agile method comparison and many other activities very difficult, especially in instances such as distributed development and large teams that are not conducive to many of the commercial agile methods. This study develops a definition and formative taxonomy of agility in an ISD context, based on a structured literature review of agility across a number of disciplines, including manufacturing and management where the concept originated, matured, and has been applied and tested thoroughly over time. The application of the texonomy in practice is then demonstrated through a series of thought trials conducted in a large multinational organization. The intention is that the definition and taxonomy can then be used as a starting point to study ISD method agility regardless of whether the method is XP or Scrum, agile or traditional, complete or fragmented, out-of-the-box or in-house, used as is or tailored to suit the project context.

Exploring IT Governance in Theory and Practice in a Large Multi-National Organisation in Australia

IT governance is critical to most organisations and has an influence on the value generated by IT investments. Unfortunately, IT governance is more aspiration than reality in many organisations. This research seeks to address the dearth of empirical evidence about IT governance in practice, presenting the findings of an IT governance case study in an Australian organisation. Recommendations are provided to assist organisations to maximise potential of IT governance and insights are provided for researchers.

Discovering and Evaluating Collaboration Engineering Opportunities: An Interview Protocol Based on the Value Frequency Model

Collaboration Engineering (CE) is an approach to designing collaborative work practices for high-value recurring tasks and transferring those designs to practitioners to execute for themselves without the ongoing intervention of professional facilitators. Because CE projects can entail considerable cost, it would be useful to have a way to predict whether a group would be likely to adopt a collaborative work practice were one developed for them. In this paper we present an interview protocol for that purpose. Using the logic of the Value Frequency Model (VFM), we derived the protocol with two layers of questions. The first layer is for discovering potential collaboration engineering opportunities; the second is for evaluating the degree to which practitioners might be willing to adopt a new work practice were one offered. We used the protocol in two field studies; one with a team of experienced collaboration engineers working in the headquarters of a large multi-national organization, and one with a group of students with no CE experience working with a variety of for-profit and non-profit organizations in their community. The qualitative and quantitative outcomes of these studies suggest that the interview protocol may be a useful means for discovering and evaluating CE opportunities. Outcomes also provide support for VFM, the theory from which the protocol was derived.

Intranet Redesign and Change Management: Perspectives on Usability

As intranet implementations of enabling structures for internal electronic business communication increases, research is needed to provide an insight into the factors affecting a successful intranet design (Tang 2000). Using a case study involving a large multinational IT organisation, this paper studies changes made to the user interface design of a large multinational organisation’s intranet and examines how that intranet’s usability has been affected by these changes from both the managerial and employee end-user perspectives. The paper presents both a background on intranet design, its links to the design of web-based systems, and intranet-focussed usability issues.

Unpacking the effect of IT capability on the performance of export‐focused SMEs: a report from China

Abstract. Export‐focused small and medium‐sized enterprises (SMEs) in China face a number of barriers to success, two primary ones being the liability of foreignness and resource scarcity. In order to transcend these challenges and be able to survive/prosper in the hypercompetitive international market, where players include large resourceful multinational organizations with experience in varied national contexts, these firms need to develop different organizational capabilities. In this paper, we specifically examine the role of a key organizational capability – information technology (IT) capability – and its different dimensions, in determining performance of export‐focused SMEs in China. Our study reveals that IT capability has a positive impact on such firms' performance. This finding indicates the need for their owners/managers to invest in IT capability. Further, the study also highlights specific sub‐dimensions of IT capability that export‐focused Chinese SMEs should (or should not) develop, so as to derive maximum performance‐related gains for the minimum amount spent on IT.

An evaluation of the cross‐national generalizability of organizational commitment

Using data from two large multinational samples, this research sought to contribute to our knowledge of international organizational behaviour by examining the cross‐national generalizability of organizational commitment. Sample 1 included employees of 10 subsidiaries of a large multinational organization, whereas Sample 2 relied on data collected in 25 nations in the context of a large opinion survey. Results in both samples supported the expectation that measures of commitment would be more susceptible to measurement non‐equivalence than measures of job satisfaction. Differences in relationships between commitment and satisfaction across countries were observed in both samples, as were differences in mean commitment levels. Nation‐level individualism/collectivism (I/C) failed to account for the observed differences, however, suggesting that commitment and I/C are largely independent, despite theoretical arguments to the contrary. Results of the study suggest that despite some cross‐national variation, differences in commitment across national boundaries are small and empirically unrelated to I/C.