Signaling Theory: A Review and Assessment Connelly, Brian L.; Certo, S. Trevis; Ireland, R. Duane ...
Journal of Management,
01/2011, Letnik:
37, Številka:
1
Book Review, Journal Article
Recenzirano
Signaling theory is useful for describing behavior when two parties (individuals or organizations) have access to different information. Typically, one party, the sender, must choose whether and how ...to communicate (or signal) that information, and the other party, the receiver, must choose how to interpret the signal. Accordingly, signaling theory holds a prominent position in a variety of management literatures, including strategic management, entrepreneurship, and human resource management. While the use of signaling theory has gained momentum in recent years, its central tenets have become blurred as it has been applied to organizational concerns. The authors, therefore, provide a concise synthesis of the theory and its key concepts, review its use in the management literature, and put forward directions for future research that will encourage scholars to use signaling theory in new ways and to develop more complex formulations and nuanced variations of the theory.
PurposeThe purpose of this paper is to add to the small but growing body of research examining the influence of founder gender on new venture access to venture development ...programs.Design/methodology/approachHypotheses were tested utilizing a sample of 482 nascent technology ventures which applied for admittance into a venture development organization headquartered in the southern region of the United States from March 2004 through February 2016.FindingsFindings suggest that female-founded applicant ventures experience a higher likelihood of acceptance into venture development programs than male-founded applicant ventures. Results further suggest that social attention to gender equality reduces this effect for female-founded applicant ventures. Findings extend the understanding of the gendered nature of high-technology venturing and venture development organizations.Research limitations/implicationsThe findings of this study may not generalize to new ventures operating in other contexts (e.g., non-U.S., low-tech, and other venture development programs). Additionally, this study's design and data limitations do not allow for the establishment of causality or address founder motivations to apply for acceptance into venture development programs.Originality/valueThis study adds to empirical findings regarding the influence of founder gender on new venture acceptance into venture development programs by developing and testing competing hypotheses. This study also extends extant research by examining the moderating effect of social attention to gender equality on the hypothesized relationships between founder gender and acceptance into venture development programs.
Boards of directors' attention to monitoring represents an understudied topic in corporate governance. By analyzing hundreds of board meeting transcripts, we find that board members do not maintain ...constant levels of attention toward monitoring, but instead selectively allocate attention to their monitoring function. Drawing from the attention-based view, prospect theory, and the literature on power, we find that deviation from prior performance and CEO duality affect this allocation. Specifically, while negative deviation from prior performance increases boards' attention to monitoring, positive deviation from prior performance reduces it. The presence of duality also reduces the boards' allocation of attention to monitoring. Additional analysis demonstrates that the effects of duality are realized in part by the CEO-chair's control of the meeting's agenda and location. Finally, the results show that duality and deviation from prior performance interactively affect boards' attention to monitoring. In total, we find that board members do not consistently monitor management in order to protect shareholder value, a proposition often assumed within governance research; rather, our results demonstrate that board members' monitoring behaviors are contextually dependent. The contextual dependency of board attention to monitoring suggests that additional efforts may be needed to ensure the protection of shareholders' interests.
This article introduces equity theory to the economic growth literature to examine whether a relationship exists between perceptions of distributive justice and the productivity of entrepreneurial ...behavior. Using survey responses from 317 entrepreneurs in India, we find that productive entrepreneurship is positively related to distributive justice perceptions but negatively related to perceptions that corruption is pervasive. In contrast, nonproductive forms of entrepreneurship are negatively related to distributive justice but positively related to corruption. Unexpectedly, the findings also show that corruption mediates the relationship between distributive justice and legal entrepreneurial behavior while distributive justice mediates the relationship between corruption and illegal entrepreneurial behavior. We conclude with a discussion of the study's findings and their implications for entrepreneurship and economic growth.
This article examines the role of top managers in shaping the innovation investment actions of small and medium-sized enterprises (SMEs) in India. Survey responses from 477 top managers of Indian ...SMEs suggest that investment in innovation is influenced by top manager perceptions of innovation opportunity attractiveness, as well as ability to appropriate innovation investment value. Specifically, the results indicate an inverted U-shaped relationship between top manager entrepreneurial orientation and firm investment in innovation. They also suggest that top manager perceptions of environmental munificence, firm resource management capabilities, and organizational controls are positively related to firm investment in innovation.
Purpose
The purpose of this paper is to examine the influence of business leader gender on the pursuit of innovation opportunities. Extant research suggests that leader gender represents an important ...characteristic that shapes firm behavior in various ways. The authors build upon this research by relating business leader gender, perceptions of environmental munificence and distributive justice to firm investment in innovation.
Design/methodology/approach
This study examines the survey responses of 469 business leaders in India. These individuals were primarily responsible for their firms. Their responses to survey questions were analyzed using ordinary least squares regression.
Findings
The results of this study suggest that female-led firms exhibit less investment in innovation than male-led firms. Results also suggest that female business leaders perceive less environmental munificence as well as distributive justice. Finally, study results suggest that the effect of gender on firm investment in innovation is mediated by perceptions of distributive justice.
Originality/value
This study provides an empirical link between business leader gender and firm investment in innovation. In doing so, it acknowledges and provides insight into the gendered nature of the initiation of innovation processes and leadership. Finally, the finding that business leader perceptions of distributive justice mediate the relationship between business leader gender and investment in innovation extends current understanding of the mechanisms underlying the lower investment in innovation rates exhibited by female-led firms.
Human resource executives and post-IPO firm growth Belsito, Carrie A; Reutzel, Christopher R; Collins, Jamie D
Journal of organizational change management,
11/2018, Letnik:
31, Številka:
7
Journal Article
Recenzirano
Purpose
The purpose of this paper is to examine the relationship between human resource (HR) executive representation in top management and the growth of newly public firms. It draws upon research on ...strategic leadership, strategic HR management and Penrose’s theory of firm growth to consider the role of HRs executives in addressing demands placed upon top managers in the pursuit of firm growth. This study attempts to extend the focus of research on the influence of HR executives on organizational outcomes
Design/methodology/approach
In order to test study hypotheses, this study analyses data from a sample of US newly public firms that underwent initial public offerings (IPO) during the 2007 calendar year. Study data were analyzed using ordinary least squares regression in order to test study hypotheses.
Findings
This study provides general support for study hypotheses. First, HR executive presence in top management was found to be positively related to post-IPO firm growth. Second, upper echelon size and the number of firm employees were found to weaken the positive effect of HR executive presence in top management on post-IPO firm growth.
Research limitations/implications
As a consequence of study design, the results found in this study may be limited with respect to their external validity. Therefore, researchers and practitioners are encouraged to use caution before generalizing study findings to other contexts.
Practical implications
This study provides implications for top management team staffing and the pursuit of firm growth. Newly public firms appear to benefit in terms of firm growth by including HR executives in top management. The benefits of doing so appear to be reduced for newly public firms as the size of their upper echelons and number of employees increase.
Originality/value
This study extends research on the firm level consequences of HR executive presence in top management as well as research on factors which influence firm growth.
Although numerous benefits are associated with interfirm ties, these external relationships can also have negative consequences. Theoretically based in the relational component of social capital, we ...identify one potentially serious consequence of interfirm ties, propensity of firms engaging in illegal behavior. Results of our study of S&P 500 firms suggest that companies benefit from a lower likelihood of illegal behavior when they have numerous weak ties to other firms. Conversely, when they become overly embedded in a network of strong ties, they are more likely to engage in illegal behavior. We also found evidence that reciprocity and status similarity influence firms’ propensity to engage in illegal behavior.
Female directors and IPO underpricing in the US Reutzel, Christopher R; Belsito, Carrie A
International journal of gender and entrepreneurship,
03/2015, Letnik:
7, Številka:
1
Journal Article
Recenzirano
Purpose
– The purpose of this study is to explore how initial public offering (IPO) investors view female presence on boards of directors in the USA.
Design/methodology/approach
– This study utilizes ...hierarchical regression and analyzes data collected from firms undertaking their IPO’s in the USA during 1997 and 2007.
Findings
– The findings of this study suggest that US IPO investors react negatively to female presence on the board of directors. However, this negative effect has weakened post-Sarbanes-Oxley Act.
Research limitations/implications
– The results of this study may not generalize to other settings.
Practical implications
– Gender bias against females in the boardroom exists but appears to be weaker post-Sarbanes-Oxley.
Social implications
– One hurdle to greater female representation in entrepreneurial ventures in the USA may be weakening as a result of greater awareness of female director contributions to board functioning.
Originality/value
– First, the study represents one of the few attempts to examine the influence of female directors on organizational outcomes in IPO firms. Second, this study represents one of the first studies to consider the influence of director gender on IPO performance. Finally, this study extends extant research by examining investor reactions to female board presence. The results of this study suggest that bias against females in the boardroom may exist but appears to be weakening post-Sarbanes-Oxley. This finding indicates increasing awareness of female director contributions to board functioning on the part of IPO investors.
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