Frequent CEO Turnover and Firm Performance: The Resilience Effect of Workforce Diversity

© 2020, Springer Nature B.V. CEO turnover (or succession) is a critical event in an organization that influences organizational processes and performance. The objective of this study is to investigate whether workforce diversity (i.e., age, gender, and education-level diversity) might have a resilience effect on firm performance under the frequency of CEO turnover. Based on a sample of 409 Korean firms from 2010 to 2015, our results show that firms with more frequent CEO turnover have a lower firm performance. However, firms with more gender and education-level diversity could buffer the disruptive effect of frequent CEO turnover on firm performance to offer a benefit to the organization. Our theory and findings suggest that effectively managing diverse workforce can be a resilience factor in an uncertain organizational environment because diverse workforce has complementary skills and behaviors that can cope better with uncertainty and signals social inclusion of an organization, thus fostering a long-term exchange relationship. These findings contribute to the literature on CEO turnover (or succession) and diversity

Language in international business: a review and agenda for future research

A fast growing number of studies demonstrates that language diversity influences almost all management decisions in modern multinational corporations. Whereas no doubt remains about the practical importance of language, the empirical investigation and theoretical conceptualization of its complex and multifaceted effects still presents a substantial challenge. To summarize and evaluate the current state of the literature in a coherent picture informing future research, we systematically review 264 articles on language in international business. We scrutinize the geographic distributions of data, evaluate the field’s achievements to date in terms of theories and methodologies, and summarize core findings by individual, group, firm, and country levels of analysis. For each of these dimensions, we then put forward a future research agenda. We encourage scholars to transcend disciplinary boundaries and to draw on, integrate, and test a variety of theories from disciplines such as psychology, linguistics, and neuroscience to gain a more profound understanding of language in international business. We advocate more multi-level studies and cross-national research collaborations and suggest greater attention to potential new data sources and means of analysis

The effects of conflict asymmetry on work group and individual outcomes

We examine the consequences of an often ignored aspect of work group conflict—asymmetric conflict perceptions—for the effectiveness of individuals and groups. Tests of our multilevel hypotheses using data on 51 work groups showed that group conflict asymmetry (the degree to which members differ in perceptions of the level of conflict in their group) decreased performance and creativity in groups. In addition, individual conflict asymmetry (a member perceiving more or less conflict than other group members) explained reported performance and satisfaction with a group. Social processes and a positive group atmosphere mediated this effect

Do Workgroup Faultlines Help or Hurt? A Moderated Model of Faultlines, Team Identification, and Group Performance

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Not so bad after all : how relational closeness buffers the association between relationship conflict and helpful and deviant group behaviors

Past research has left unanswered the question of how to reduce the negative effects of relationship conflict in work groups. This study investigates whether relational closeness in work groups buffers the negative association between relationship conflict and two important group behaviors that are often overlooked in conflict research: group-level helping behavior and counterproductive work behavior. The results of this field study show that the degree of relational closeness in work groups indeed buffers the negative affiliation between relationship conflict and group-level helping behavior and the positive association between relationship conflict and group-level counterproductive work behavior. Specifically, the results suggest that relationship conflicts are only harmful in relationally distant work groups in which members do not know each other well personally and do not feel close to each other. Theoretical implications and suggestions for organizational practice are discussed

Viel Lärm um nichts? : Diversity im beruflichen Kontext

Obwohl Diversity erst in den letzten Jahren in vielen Organisationen zu einer Art „Modethema“ avanciert ist, handelt es sich um ein alltägliches Phänomen, mit dem die meisten Menschen seit jeher an ihrem Arbeitsplatz konfrontiert werden: Sie arbeiten mit anderen Personen zusammen, die sich hinsichtlich zahlreicher Merkmale (Alter, Geschlecht, Persönlichkeit etc.) voneinander unterscheiden. Empirische Studien verdeutlichen, dass sich aus dieser Zusammenarbeit Vorteile und Nachteile ergeben können. Die Effekte sind jedoch so gering, dass sie im Durchschnitt kaum eine Bedeutung haben. Wer die Effizienz einer Organisation steigern möchte, findet in der Personalauswahl, der Personalentwicklung sowie der Führung sehr viel effektivere Ansatzpunkte. Dennoch kann es Konstellationen geben, in denen es durchaus sinnvoll ist, sich aktiv mit der Heterogenität von Arbeitsgruppen auseinanderzusetzen, um unproduktive Konflikte zu vermeiden und das Potential der Heterogenität zu nutzen

Viel Lärm um nichts? : Diversity im beruflichen Kontext

Obwohl Diversity erst in den letzten Jahren in vielen Organisationen zu einer Art „Modethema“ avanciert ist, handelt es sich um ein alltägliches Phänomen, mit dem die meisten Menschen seit jeher an ihrem Arbeitsplatz konfrontiert werden: Sie arbeiten mit anderen Personen zusammen, die sich hinsichtlich zahlreicher Merkmale (Alter, Geschlecht, Persönlichkeit etc.) voneinander unterscheiden. Empirische Studien verdeutlichen, dass sich aus dieser Zusammenarbeit Vorteile und Nachteile ergeben können. Die Effekte sind jedoch so gering, dass sie im Durchschnitt kaum eine Bedeutung haben. Wer die Effizienz einer Organisation steigern möchte, findet in der Personalauswahl, der Personalentwicklung sowie der Führung sehr viel effektivere Ansatzpunkte. Dennoch kann es Konstellationen geben, in denen es durchaus sinnvoll ist, sich aktiv mit der Heterogenität von Arbeitsgruppen auseinanderzusetzen, um unproduktive Konflikte zu vermeiden und das Potential der Heterogenität zu nutzen