Adverse macroeconomic environments undermine integrative value generation

Publication Type

Conference Proceeding Article

Publication Date

8-2018

Abstract

Recent work in the organizational literature started to investigate how individual workers respond to cues of economic downturns with the goal of helping leaders to understand, predict, and effectively manage the behavior of their workforce when difficult economic times hit. The present research examined how the cues of adverse economic times impact a fundamental economic activity–integrative value generation in business deals. Study 1 extended past work which suggested that adverse economic environments induce a more zero-sum construal of success by controlling for a potential confounding influence of individualism versus collectivism, as well as demonstrating that the effect of adverse economic environments is amplified in more collectivistic countries. Study 2 replicated these effects using experimental manipulation and also documented negative implications for integrative value generation. Taken together, these findings identify an important effect through which cues of economic downturns prompt workers to react in a way that hinders, rather than helps, organizations’ ability to cope with an unfavorable state of the economy.

Discipline

Human Resources Management | Organizational Behavior and Theory

Research Areas

Organisational Behaviour and Human Resources

Publication

Academy of Management Proceedings: 78th AOM 2018, August 10-14, Chicago, IL

Identifier

10.5465/AMBPP.2018.10672abstract

Publisher

Academy of Management

City or Country

Briarcliff Manor, NY

Additional URL

https://doi.org/10.5465/AMBPP.2018.10672abstract

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