Nonlinear effect of employee ownership on organizational financial misdeeds: The moderating role of organizational size.

We used threshold theory to investigate the relationship between employee ownership and financial misdeeds. In particular, we theorized that monitoring and incentive benefits of employee ownership coupled with longer term orientation are two primary theoretical drivers for decreasing the incidence of financial misdeeds in employee-owned firms. Using a sample of 388 investment firms representing 3,421 firm-year observations between 2000 and 2015, we found that employee ownership has an inverted-J-shaped relationship with organizational financial misdeeds such that the negative effect of employee ownership is significant only at medium-to-high levels. We also found that the inverted-J-shaped relationship was stronger when an organization was smaller or practiced giving short-term incentives. We discuss the theoretical and practical implications of these findings. (PsycInfo Database Record (c) 2024 APA, all rights reserved).

Organizational-level perceived support enhances organizational profitability.

Although the importance of perceived organizational support on organizational outcomes has been highlighted in the literature, research is lacking concerning how organization-wide perceptions of support by employees (organizational-level perceived support [OPS]) may contribute to organizational performance. To address this critical deficiency in the literature, we extend organizational support theory to the organizational level and examine the influence of OPS on organizational profitability. We conducted two studies with samples of 224 and 96 organizations, respectively, in South Korea and found that workforce performance (Study 1) and workforce voluntary turnover rate (Studies 1 and 2) mediate the relationship between OPS and organizational profitability. Furthermore, we found that organizational financial slack resources moderate the effect of OPS on workforce performance. Specifically, the positive effect of OPS on workforce performance, and consequently on organizational profitability, was stronger when financial slack resources were lower. Financial slack resources, however, do not moderate the relationship between OPS and voluntary turnover rate. We discuss the theoretical and practical implications of these findings. (PsycInfo Database Record (c) 2022 APA, all rights reserved).

Multisource feedback, human capital, and the financial performance of organizations.

We investigated the relationship between organizations' use of multisource feedback (MSF) programs and their financial performance. We proposed a moderated mediation framework in which the employees' ability and knowledge sharing mediate the relationship between MSF and organizational performance and the purpose for which MSF is used moderates the relationship of MSF with employees' ability and knowledge sharing. With a sample of 253 organizations representing 8,879 employees from 2005 to 2007 in South Korea, we found that MSF had a positive effect on organizational financial performance via employees' ability and knowledge sharing. We also found that when MSF was used for dual purpose (both administrative and developmental purposes), the relationship between MSF and knowledge sharing was stronger, and this interaction carried through to organizational financial performance. However, the purpose of MSF did not moderate the relationship between MSF and employees' ability. The theoretical relevance and practical implications of the findings are discussed. (PsycINFO Database Record