Connect with us

BizNews

Narcissistic bosses stymie knowledge flow, cooperation inside organizations

The study found that unit-head narcissism can prevent knowledge sharing. That tendency diminished in fast-changing or complex environments because narcissists had an excuse to pursue external ideas. But when businesses have high inter-unit competition, narcissists are more tempted to distinguish themselves from other units.

Published

on

Photo by Paul Hanaoka from Unsplash.com

Narcissism is a prominent trait among top executives, and most people have seen the evidence in their workplaces.

These individuals believe they have superior confidence, intelligence and judgment, and will pursue any opportunity to reinforce those inflated self-views and gain admiration. According to new research from the University of Washington, narcissism can also cause knowledge barriers within organizations.

When different units in the same company share information, it boosts performance and creates a competitive advantage. Narcissists hinder this knowledge transfer due to a sense of superiority that leads them to overestimate the value of internal knowledge and underestimate the value of external knowledge.

“Many big companies are what one would describe as multi-business firms, an organizational form where you have a corporate parent and subsidiary units,” said co-author Abhinav Gupta, associate professor of management in the UW Foster School of Business. “The financial logic for why these firms exist is so that knowledge and skills that reside in one unit can be used in another unit.”

But units don’t work with each other as much as companies would like, Gupta said. The study, published April 4 in the Strategic Management Journal, revealed that certain personality traits of executives — specifically narcissism — impede the flow of information.

“Narcissism affects people’s desire to be distinctive,” Gupta said. “It’s correlated by people wanting glory for themselves. We hypothesized that business-unit heads that have those traits would be the ones to say, ‘We don’t want to work with you. We have sufficient skills and knowledge and abilities that we will work independently.’ That was very strongly borne out based on our research design.”

The authors surveyed business units of a headhunting company in China that helps organizations recruit talent and search for technical personnel. These units must share knowledge about building talent pools, identifying skills and persuading prospects to accept offers.

Researchers asked unit heads to rate, among other factors, their own narcissistic traits, the environmental complexity of the local market and perceived competition with other units. They then asked deputies to rate the level of knowledge imported from other units.

Narcissism was measured using the self-report Narcissistic Personality Inventory 16-item scale, which presents pairs of statements and asks individuals to select the one that best describes them. One pair consisted of “I like to be the center of attention” and “I prefer to blend in with the crowd.”

The study found that unit-head narcissism can prevent knowledge sharing. That tendency diminished in fast-changing or complex environments because narcissists had an excuse to pursue external ideas. But when businesses have high inter-unit competition, narcissists are more tempted to distinguish themselves from other units.

The research has multiple implications for companies, Gupta said. For example, when filling roles that require knowledge sharing, managers might watch for signs of narcissistic personality traits. Companies could also design an organization and reward structure that encourages cooperation among current personnel.

“There are two views of how multi-business firms create value,” Gupta said. “One perspective is you want to run an organization like an internal market. All the units are actively competing for resources from the corporate headquarters, and that competition is what enables superior performance.

“This research kind of goes against the grain of that. If you create the perception of competition inside an organization, then that will have some downstream effects. You will be essentially foregoing some essential knowledge-sharing activities.”

The study was funded by the National Natural Science Foundation of China.

The other co-authors were Xin Liu of Remin University of China, Lin Zhang of Peking University, Changqi Wu of Shangdong University and Xiaoming Zheng of Tsinghua University. 

BizNews

Emojis make tourism advertising on social media more effective, appealing

The use of emojis in online messages about tourism destinations facilitates processing and reduces ambiguity, especially when the recipients encounter content with low levels of congruence.

Published

on

The use of congruent messages and emojis when promoting tourist destinations on social media leads to greater user attention. This strategy helps users to process the information effectively and reduces their cognitive effort. More specifically, the use of emojis in online messages about tourism destinations facilitates processing and reduces ambiguity, especially when the recipients encounter content with low levels of congruence.

This is according to a research – “The effect of online message congruence, destination-positioning, and emojis on users’ cognitive effort and affective evaluation” – that was published in the Journal of Destination Marketing & Management.

The study, which was carried out at the University of Granada’s Mind, Brain and Behaviour Research Centre (CIMCYC), consisted of an experiment using eye-tracking techniques on 60 users of the social network Facebook. These individuals underwent a series of experimental procedures in which the researchers manipulated the level of congruence between the messages of those posting and the users, the use or omission of emojis in the content, and the way in which the tourist destination was positioned in the media (natural environment, gastronomy, hotels, sun and beach).

The UGR research team, which includes Beatriz García Carrión, Francisco Muñoz Leiva, Salvador del Barrio García and Lucia Porcu, point out that the study “clearly illustrates the benefits in terms of the effectiveness of using congruent messages in marketing communications in general, and especially in digital communications via social media, as well as how the use of emojis contributes to improving users’ information processing, increasing their attention and reducing the cognitive effort involved. Moreover, congruent messages not only facilitate users’ information processing, but also improve their affective evaluation — a crucial aspect when it comes to making a decision on a tourist destination.”

The key findings included:

  • Importance of maintaining a high level of congruence in the information they convey through social media. As the researchers explain: “This involves systematically reviewing and managing comments across all communication channels to identify any comments that do not align with the destination’s desired positioning, with a view to mitigating potential negative effects.”
  • Pictorial representations (emojis) significantly enhance the overall comprehension of the information. However, the study did not find a significant impact of emojis on the formation of affective evaluations.
  • Tourism managers should focus on information related to the destination’s gastronomy and natural environment, rather than more conventional aspects such as sun and beach facilities or hotel offerings, as the former attract more attention and are perceived more favorably, even under low levels of congruence.

The research findings suggest a shift in the preferences of potential consumers towards more nature-based tourism. “Therefore, tourism managers should place greater emphasis on communicating aspects related to the environment and sustainability of the tourist destination in their social media posts, thereby reaping benefits in terms of visual attention and affective evaluations,” the researchers stressed.

Continue Reading

BizNews

Study shows corporate misconduct at home hurts sales overseas

Consumers and investors increasingly read about unethical business practices globally and demonstrate their displeasure locally.

Published

on

New research in the Global Strategy Journal has bad news for companies struggling with corruption, discrimination, or sweatshops in their supply chain: corporate misconduct demonstrably hurts international sales. Consumers and investors increasingly read about unethical business practices globally and demonstrate their displeasure locally.

“Socially irresponsible acts transcend geographic boundaries and negatively affect foreign subsidiary performance,” said Nuruzzaman Nuruzzaman of the University of Manchester, one of the study’s authors.

Nuruzzaman, along with co-authors Erin E. Makarius and Debmalya Mukherjee of the University of Akron and Ajai Gaur of Rutgers, monitored the sales growth of 335 subsidiaries in 109 countries over nine years. They charted the growth alongside the number of corporate social irresponsibility (CSI) incidents reported against parent companies. Social irresponsibility hurt subsidiaries’ sales whether incidents occurred internationally or in the parent company’s home country.

“We weren’t looking at incidents that were local to the subsidiary,” said Makarius. “We wanted to explore how much negative news spreads globally and how stakeholders react to incidents beyond their borders. The data shows the location of misconduct no longer seems to matter. There’s still significant negative impact.”

The study also explored whether creating distractions could buffer the consequences of a parent company’s bad behavior. The researchers compared two methods of strategic noise: marketing campaigns and product innovations. Promotions, contests, and sales showed little ability to curb reputational damage, but introducing two or more product or service innovations could flip sales growth in a positive direction despite CSI incidents.    

“Perhaps consumers perceive marketing campaigns as hollow responses,” Mukherjee said. “Because innovation is more costly, it may create a stronger positive impact.”

While the study demonstrates that subsidiaries do have agency against negative media coverage of their parents’ activities, the authors emphasize that the larger takeaway concerns the potential fallout from CSI. Managers at parent companies and their subsidiaries abroad should be aware that misconduct even in distant locations can quickly impact international sales performance.

“Given the adverse impact of CSI on global performance that this study shows, global corporations should strive to uphold and implement strong ethical and social responsibility standards throughout their global operations,” Gaur said. “Moreover, they should prioritize transparent communications with subsidiaries so they can quickly mitigate the negative impact of socially irresponsible activities.”

To read the full context of the study and its statistical modeling methods, access the full paper available in the Global Strategy Journal.

Continue Reading

BizNews

Cultivating relationships with former employees important – study

One of the biggest mistakes employers make is not supporting workers on their way out, and then turning around and saying they want to stay in touch.

Published

on

For many people, leaving a job can be like leaving a family — and because of the personal and professional bonds they’ve forged, many naturally stay in touch with their former coworkers and keep apprised of what’s happening in the organization.

But what happens when companies make a concerted effort to bolster those bonds, help former employees in their careers and keep them in the loop? According to new research from the UBC Sauder School of Business, it can have big benefits for both employees and employers.

For the paper, researchers studied a wide range of businesses — from top law firms to Starbucks — to understand why organizations are putting time and resources into solidifying ties with ex-employees, also known as alumni.

The researchers propose that alumni-organization relationships (AORs) are particularly important to companies because alumni have a unique mix of insider knowledge and outside-world information and contacts. This can be valuable if employees return as contractors, or move on to companies that might do business with their former employer. Companies can also gain a boost to branding and reputation because maintaining these relationships shows they support employees even after they move on.

“Traditionally, AORs were most common in professional service firms. But as it becomes more common for workers to job hop over the course of their career, we are seeing more organizations investing in relationships with alumni,” said UBC Sauder assistant professor Dr. Rebecca Paluch.

For some organizations, AORs help generate new business. Many law firms support AORs because junior lawyers move on and end up in general counsel roles new organizations. If they need to hire outside counsel, the continuing relationship with their former employer may encourage them to hire that firm.

Companies like Starbucks appreciate the fact that AORs boost their brand image in the community. “They call all of their stores ‘third communities’ because they want to make people feel welcome and like they’re part of something when they visit the stores,” said Dr. Paluch, who co-authored the study with Dr. Christopher Zatzick of Simon Fraser University and Dr. Lisa Nishii of Cornell University. “AORs are in line with the overall branding of building community and keeping people connected.”

Programs that support AORs can offer a variety of benefits to alumni, including newsletters and updates about alumni and the company, career resources, job boards, training and development opportunities and in-person networking.

One of the primary challenges in forming AORs is there is no set playbook, said Dr. Paluch. There are established norms for employee management when it comes to practices like hiring, compensation and benefits, but standard practices don’t exist for managing relationships with alumni after they move on.

In order to develop successful AORs, organizations need to think about their outreach to alumni through broad communication with a wide-range of alumni as well as strategically target alumni who can bring back the most value to the company. It’s also important to encourage current employees to stay in contact with alumni so they can help bring knowledge and resources back into the organization.

The most successful programs, she adds, involve input from former workers. “It’s important to make sure the organization is getting alumni feedback so they’re meeting their needs and not just offering things because some other company is doing it,” advised Dr. Paluch.

One of the biggest mistakes employers make is not supporting workers on their way out, and then turning around and saying they want to stay in touch. “If employees are having terrible exit experiences, then it shouldn’t be surprising if they don’t want to stay in touch after they leave.”

The idea of cultivating relationships between alumni and organizations might seem counterintuitive because it can make leaving more palatable, said Dr. Paluch. But savvy companies realize today’s workers are highly mobile, so it makes sense to keep a positive relationship even after they’re gone.

“We’ve been seeing tenure decline over the past few decades, and most employees move on to a new company after four or five years,” said Dr. Paluch. “Strategically, organizations might as well consider, ‘If we can’t keep them in the organization, how can we at least keep them connected to the organization?’”

Continue Reading
Advertisement
Advertisement

Like us on Facebook

Trending