How do family firm CEOs’ expectations of their firms’ succession influence investment time horizon? By extending the socioemotional wealth perspective from the myopic loss aversion framework, we propose that family CEOs who confidently expect that their successors will be found are more likely to engage in long-term investment. Additionally, the likelihood of long-term investment is more positively associated with CEOs’ expectations of managerial succession by non-children than by their own children. We examine a sample of 410 small and medium- sized family manufacturers in Tokyo, Japan, and find a strong statistical support for the hypothesized relationships. These two findings shed light on a novel aspect of the accumulation and retention of socioemotional wealth based on the relationship between family firms’ managerial succession and investment time horizon.
This paper employs board quality researches and examines the relationship between board quality and decision-making. In particular, the paper explores the microfoundation of Watanabe (2017) that demonstrates the number of outside directors has negative relationship with investment escalation for the following two objectives: to investigate what kind of directors bring a negative impact and to clarify if there are outside directors who improve the quality of corporate governance. Our analysis focuses on the effects of directors’ real independence and financial expertise, and consequently shows that outside directors who lack both qualities have negative effects.
According to research findings in social psychology and organizational behavior, acquiring power in organization seems to have various influences over manager’s cognitions, affects and behaviors. This paper focuses on powerholder’s partiality. In other words, a relationship between a sense of social power and in-group favoritism (in-group bias) are studied. Combining Social Identity Theory with existing findings on psychological effects of power, the paper hypothesizes that those with high social power tend to overtly favor their in-group or in-group members. To verify this prediction, a psychological experiment was conducted, in which 66 MBA students participated. The hypothesis is supported only among specific participants―Japanese male participants. Some managerial implications from the findings are also discussed.
We conducted an empirical study on the microfoundation in strategic human resource management using J1 league data. To overcome the problem about unit-level human capital research, we used pay dispersion and diversity as a diversification of human capital, and the effect on ranking was examined. As a result, we found the followings: 1) pay dispersion within the team has a negative impact on ranking, and 2) task diversity has a positive impact on ranking.
In existing researches on technology licensing, researchers have pointed out positive aspects of partially opened policies. A partially opened policy is that a company limits the scope of technology license in terms of a company or a technology. Companies that adopt partially opened policies can curtail market competition while expanding product market. This paper, on the other hand, points out negative aspects of partially opened technology licensing policies. There is a possibility that a company that utilizes a partially opened policy loses competitive technological advantages. This is because in a situation where a competitor adopts an open policy while the company adopts a partially opened policy, other companies that are not eligible for the license will develop a competing technology.
The aim of this paper is to find out situational factors for informal leader emergence with questionnaire data of 1,719 store clerks from 410 stores in a Japanese apparel chain. The results reveal that the factors affecting informal leader emergence of initiating structure were the number of store members and formal leaders’ ability to accomplish their tasks. In terms of consideration, the main factor turned out to be the ability to understand a situation of others by formal leaders or subordinates.