Creating Mutual Gains to Leverage a Racially Diverse Workforce: The Effects of Firm-Level Racial Diversity on Financial and Workforce Outcomes Under the Use of Broad-Based Stock Options

References

• Aboody D, Johnson NB, Kasznik R (2010) Employee stock options and future firm performance: Evidence from option repricings. J. Accounting Econom. 50(1):74–92.Crossref, Google Scholar
• Almeida P, Kogut B (1999) Localization of knowledge and the mobility of engineers in regional networks. Management Sci. 45(7):905–917.Link, Google Scholar
• Andrevski G, Richard OC, Shaw JD, Ferrier WJ (2014) Racial diversity and firm performance: The mediating role of competitive intensity. J. Management 40(3):820–844.Crossref, Google Scholar
• Autant-Bernard C, Fadairo M, Massard N (2013) Knowledge diffusion and innovation policies within the European regions: Challenges based on recent empirical evidence. Res. Policy 42(1):196–210.Crossref, Google Scholar
• Avery DR, McKay PF, Wilson DC (2008) What are the odds? How demographic similarity affects the prevalence of perceived employment discrimination. J. Appl. Psych. 93(2):235–249.Crossref, Google Scholar
• Ayoko OB, Konrad AM (2012) Leaders’ transformational, conflict, and emotion management behaviors in culturally diverse workgroups. Equality Diversity Inclusion 31(8):694–724.Crossref, Google Scholar
• Balliet D, Mulder LB, Van Lange PA (2011) Reward, punishment, and cooperation: A meta-analysis. Psych. Bull. 137(4):594–615.Crossref, Google Scholar
• Barrick MR, Thurgood GR, Smith TA, Courtright SH (2015) Collective organizational engagement: Linking motivational antecedents, strategic implementation, and firm performance. Acad. Management J. 58(1):111–135.Crossref, Google Scholar
• Belmi P, Pfeffer J (2018) The effect of economic consequences on social judgment and choice: Reward interdependence and the preference for sociability vs. competence. J. Organ. Behav. 39(8):990–1007.Crossref, Google Scholar
• Bhargava A, Sargan JD (1983) Estimating dynamic random effects models from panel data covering short time periods. Econometrica 51(6):1635–1659.Crossref, Google Scholar
• Blasi JR, Freeman RB, Kruse DL (2013) The Citizen’s Share: Putting Ownership Back into Democracy (Yale University Press, New Haven, CT).Google Scholar
• Blasi JR, Kruse DL, Bernstein A (2003) In the Company of Owners: The Truth about Stock Options (and Why Every Employee Should Have Them) (Basic Books, New York).Google Scholar
• Blau PM (1977) Inequality and Heterogeneity: A Primitive Theory of Social Structure (Free Press, New York).Google Scholar
• Cady SH, Valentine J (1999) Team innovation and perceptions of consideration: What difference does diversity make? Small Group Res. 30(6):730–750.Crossref, Google Scholar
• Cappelli P, Conyon M, Almeda D (2020) Social exchange and the effects of employee stock options. Indust. Labor Relations Rev. 73(1):124–152.Crossref, Google Scholar
• Carberry EJ (2010) Who benefits from shared capitalism: The social stratification of wealth and power in companies with employee ownership. Kruse D, Freeman RB, Blasi J, eds. Shared Capitalism at Work: Employee Ownership, Profit and Gain Sharing, and Broad-Based Stock Options (University of Chicago Press, Chicago), 317–349.Crossref, Google Scholar
• Carberry EJ, Meyers JS (2017) Are the “best” better for everyone? Demographic variation in employee perceptions of Fortune’s “Best Companies to Work For.” Equality Diversity Inclusion 36(7):647–669.Crossref, Google Scholar
• Chatman JA, Flynn FJ (2001) The influence of demographic heterogeneity on the emergence and consequences of cooperative norms in work teams. Acad. Management J. 44(5):956–974.Crossref, Google Scholar
• Chun JS, Shin Y, Choi JN, Kim MS (2013) How does corporate ethics contribute to firm financial performance? The mediating role of collective organizational commitment and organizational citizenship behavior. J. Management 39(4):853–877.Google Scholar
• Colquitt JA, Noe RA, Jackson CL (2002) Justice in teams: Antecedents and consequences of procedural justice climate. Personnel Psych. 55(1):83–109.Crossref, Google Scholar
• Core JE, Guay WR (2001) Stock option plans for non-executive employees. J. Financial Econom. 61(2):253–287.Crossref, Google Scholar
• Courtright SH, Thurgood GR, Stewart GL, Pierotti AJ (2015) Structural interdependence in teams: An integrative framework and meta-analysis. J. Appl. Psych. 100(6):1825–1846.Crossref, Google Scholar
• De Dreu CK (2008) The virtue and vice of workplace conflict: Food for (pessimistic) thought. J. Organ. Behav. 29(1):5–18.Crossref, Google Scholar
• De Dreu CK, Weingart LR, Kwon S (2000) Influence of social motives on integrative negotiation: A meta-analytic review and test of two theories. J. Personality Soc. Psych. 78(5):889–905.Crossref, Google Scholar
• Deutsch M (2000) Cooperation and competition. Deutsch M, Coleman PT, eds. The Handbook of Conflict Resolution: Theory and Practice (Jossey-Bass, San Francisco), 21–40.Google Scholar
• Dezsö CL, Ross DG (2012) Does female representation in top management improve firm performance? A panel data investigation. Strategic Management J. 33(9):1072–1089.Crossref, Google Scholar
• Dickerson N, Schur L, Kruse D, Blasi JR (2010) Worksite segregation and performance-related attitudes. Work Occupations 37(1):45–72.Crossref, Google Scholar
• Dineen BR, Allen DG (2016) Third party employment branding: Human capital inflows and outflows following “Best Places to Work” certifications. Acad. Management J. 59(1):90–112.Crossref, Google Scholar
• Dunford BB, Oler DK, Boudreau JW (2008) Underwater stock options and voluntary executive turnover: A multidisciplinary perspective integrating behavioral and economic theories. Personnel Psych. 61(4):687–726.Crossref, Google Scholar
• Ely RJ, Padavic I, Thomas DA (2012) Racial diversity, racial asymmetries, and team learning environment: Effects on performance. Organ. Stud. 33(3):341–362.Crossref, Google Scholar
• Ferguson JP, Koning R (2018) Firm turnover and the return of racial establishment segregation. Amer. Sociol. Rev. 83(3):445–474.Crossref, Google Scholar
• Fisher DM, Bell ST, Dierdorff EC, Belohlav JA (2012) Facet personality and surface-level diversity as team mental model antecedents: Implications for implicit coordination. J. Appl. Psych. 97(4):825–841.Crossref, Google Scholar
• Fitzsimons GM, Shah JY (2008) How goal instrumentality shapes relationship evaluations. J. Personality Soc. Psych. 95(2):319–337.Crossref, Google Scholar
• Freeman RB, Kruse DL, Blasi JR (2010) Worker responses to shirking under shared capitalism. Kruse DL, Freeman RB, Blasi JR, eds. Shared Capitalism at Work: Employee Ownership, Profit and Gain Sharing, and Broad-Based Stock Options (University of Chicago Press, Chicago), 77–104.Crossref, Google Scholar
• Gaither SE, Apfelbaum EP, Birnbaum HJ, Babbitt LG, Sommers SR (2018) Mere membership in racially diverse groups reduces conformity. Soc. Psych. Personality Sci. 9(4):402–410.Crossref, Google Scholar
• Gardner TM, Wright PM, Moynihan LM (2011) The impact of motivation, empowerment, and skill‐enhancing practices on aggregate voluntary turnover: The mediating effect of collective affective commitment. Personnel Psych. 64(2):315–350.Crossref, Google Scholar
• Girod SJ, Whittington R (2017) Reconfiguration, restructuring and firm performance: Dynamic capabilities and environmental dynamism. Strategic Management J. 38(5):1121–1133.Crossref, Google Scholar
• Godart FC, Maddux WW, Shipilov AV, Galinsky AD (2015) Fashion with a foreign flair: Professional experiences abroad facilitate the creative innovations of organizations. Acad. Management J. 58(1):195–220.Crossref, Google Scholar
• Gomulya D, Jin K, Lee PM, Pollock TG (2019) Crossed wires: Endorsement signals and the effects of IPO firm delistings on venture capitalists’ reputations. Acad. Management J. 62(3):641–666.Crossref, Google Scholar
• Gonzalez JA, DeNisi AS (2009) Cross‐level effects of demography and diversity climate on organizational attachment and firm effectiveness. J. Organ. Behav. 30(1):21–40.Crossref, Google Scholar
• Gruenfeld DH, Inesi ME, Magee JC, Galinsky AD (2008) Power and the objectification of social targets. J. Personality Soc. Psych. 95(1):111–127.Crossref, Google Scholar
• Guo S, Fraser MW (2010) Propensity Score Analysis: Statistical Methods and Applications, 2nd ed. (Sage, Thousand Oaks, CA).Google Scholar
• Han K, Kim A (2018) Differential impact of short-term and long-term group incentives. Employee Relations 40(3):549–564.Crossref, Google Scholar
• Hansen LP (1982) Large sample properties of generalized method of moments estimators. Econometrica 50(4):1029–1054.Crossref, Google Scholar
• Harrison DA, Klein KJ (2007) What’s the difference? Diversity constructs as separation, variety, or disparity in organizations. Acad. Management Rev. 32(4):1199–1228.Crossref, Google Scholar
• Hausknecht JP, Trevor CO (2011) Collective turnover at the group, unit, and organizational levels: Evidence, issues, and implications. J. Management 37(1):352–388.Crossref, Google Scholar
• Heavey AL, Holwerda JA, Hausknecht JP (2013) Causes and consequences of collective turnover: A meta-analytic review. J. Appl. Psych. 98(3):412–453.Crossref, Google Scholar
• Herring C (2009) Does diversity pay? Race, gender, and the business case for diversity. Amer. Sociol. Rev. 74(2):208–224.Crossref, Google Scholar
• Hochberg YV, Lindsey L (2010) Incentives, targeting, and firm performance: An analysis of non-executive stock options. Rev. Financial Stud. 23(11):4148–4186.Crossref, Google Scholar
• Ittner CD, Lambert RA, Larcker DF (2003) The structure and performance consequences of equity grants to employees of new economy firms. J. Accounting Econom. 34(1):89–127.Crossref, Google Scholar
• Jackson SE, Brett JF, Sessa VI, Cooper DM, Julin JA, Peyronnin K (1991) Some differences make a difference: Individual dissimilarity and group heterogeneity as correlates of recruitment, promotions, and turnover. J. Appl. Psych. 76(5):675–689.Crossref, Google Scholar
• Jacqueminet A (2020) Practice implementation within a multidivisional firm: The role of institutional pressures and value consistency. Organ. Sci. 31(1):182–199.Link, Google Scholar
• Jehn KA, Greer LL (2012) Diversity as disagreement: The role of group conflict. Roberson QM, ed. The Oxford Handbook of Diversity and Work (Oxford University Press, New York), 179–191.Google Scholar
• Jensen M, Zajac EJ (2004) Corporate elites and corporate strategy: How demographic preferences and structural position shape the scope of the firm. Strategic Management J. 25(6):507–524.Crossref, Google Scholar
• Johnson DW (2003) Social interdependence: The interrelationships among theory, research, and practice. Amer. Psych. 58(11):931–945.Crossref, Google Scholar
• Jones KP, Peddie CI, Gilrane VL, King EB, Gray AL (2016) Not so subtle: A meta-analytic investigation of the correlates of subtle and overt discrimination. J. Management 42(6):1588–1613.Crossref, Google Scholar
• Joshi A, Liao H, Roh H (2011) Bridging domains in workplace demography research: A review and reconceptualization. J. Management 37(2):521–552.Crossref, Google Scholar
• Kang J, Kang R, Kim SJ (2017) An empirical examination of vacillation theory. Strategic Management J. 38(6):1356–1370.Crossref, Google Scholar
• Kearney E, Gebert D, Voelpel SC (2009) When and how diversity benefits teams: The importance of team members’ need for cognition. Acad. Management J. 52(3):581–598.Crossref, Google Scholar
• Kelley HH, Thibaut JW (1978) Interpersonal Relations: A Theory of Interdependence (John Wiley & Sons, New York).Google Scholar
• Kim Y, Ployhart RE (2014) The effects of staffing and training on firm productivity and profit growth before, during, and after the Great Recession. J. Appl. Psych. 99(3):361–389.Crossref, Google Scholar
• Kim Y, Ployhart RE (2018) The strategic value of selection practices: Antecedents and consequences of firm-level selection practice usage. Acad. Management J. 61(1):46–66.Crossref, Google Scholar
• Kripfganz S (2016) Quasi-maximum likelihood estimation of linear dynamic short-T panel-data models. Stata J. 16(4):1013–1038.Crossref, Google Scholar
• Kruse DL, Blasi JR, Park R (2010) Shared capitalism in the U.S. economy: Prevalence, characteristics, and employee views of financial participation in enterprises. Kruse DL, Freeman RB, Blasi JR, eds. Shared Capitalism at Work: Employee Ownership, Profit and Gain Sharing, and Broad-Based Stock Options (University of Chicago Press, Chicago), 41–76.Crossref, Google Scholar
• Kunda Z, Spencer SJ (2003) When do stereotypes come to mind and when do they color judgment? A goal-based theoretical framework for stereotype activation and application. Psych. Bull. 129(4):522–544.Crossref, Google Scholar
• Kurtessis JN, Eisenberger R, Ford MT, Buffardi LC, Stewart KA, Adis CS (2017) Perceived organizational support: A meta-analytic evaluation of organizational support theory. J. Management 43(6):1854–1884.Google Scholar
• Langfred CW (2004) Too much of a good thing? Negative effects of high trust and individual autonomy in self‐managing teams. Acad. Management J. 47(3):385–399.Google Scholar
• Lounsbury M (2007) A tale of two cities: Competing logics and practice variation in the professionalizing of mutual funds. Acad. Management J. 50(2):289–307.Crossref, Google Scholar
• LeBreton JM, Senter JL (2008) Answers to 20 questions about interrater reliability and interrater agreement. Organ. Res. Methods 11(4):815–852.Crossref, Google Scholar
• Lee SY, Pitesa M, Thau S, Pillutla MM (2015) Discrimination in selection decisions: Integrating stereotype fit and interdependence theories. Acad. Management J. 58(3):789–812.Crossref, Google Scholar
• Liao H, Joshi A, Chuang A (2004) Sticking out like a sore thumb: Employee dissimilarity and deviance at work. Personnel Psych. 57(4):969–1000.Crossref, Google Scholar
• Liu NC, Lin A, Lin CH (2009) Why do employees hold their vested stocks while they can sell them? Internat. J. Human Resource Management 20(1):148–163.Crossref, Google Scholar
• Maritan CA, Brush TH (2003) Heterogeneity and transferring practices: Implementing flow manufacturing in multiple plants. Strategic Management J. 24(10):945–959.Crossref, Google Scholar
• Marquis C, Tilcsik A (2016) Institutional equivalence: How industry and community peers influence corporate philanthropy. Organ. Sci. 27(5):1325–1341.Link, Google Scholar
• McLeod PL, Lobel SA, Cox TH Jr (1996) Ethnic diversity and creativity in small groups. Small Group Res. 27(2):248–264.Crossref, Google Scholar
• Meyer JP, Stanley DJ, Herscovitch L, Topolnytsky L (2002) Affective, continuance, and normative commitment to the organization: A meta-analysis of antecedents, correlates, and consequences. J. Vocational Behav. 61(1):20–52.Crossref, Google Scholar
• Moskowitz GB, Ignarri C (2009) Implicit volition and stereotype control. Eur. Rev. Soc. Psych. 20(1):97–145.Crossref, Google Scholar
• Mowday RT, Steers RM, Porter LW (1979) The measurement of organizational commitment. J. Vocational Behav. 14(2):224–247.Crossref, Google Scholar
• Neuberg SL, Fiske ST (1987) Motivational influences on impression formation: outcome dependency, accuracy-driven attention, and individuating processes. J. Personality Soc. Psych. 53(3):431–444.Crossref, Google Scholar
• Ng ES, Wyrick CR (2011) Motivational bases for managing diversity: A model of leadership commitment. Human Resource Management Rev. 21(4):368–376.Crossref, Google Scholar
• Nkomo SM (1992) The emperor has no clothes: Rewriting race in organizations. Acad. Management Rev. 17(3):487–513.Crossref, Google Scholar
• Nishii LH, Mayer DM (2009) Do inclusive leaders help to reduce turnover in diverse groups? The moderating role of leader–member exchange in the diversity to turnover relationship. J. Appl. Psych. 94(6):1412–1426.Crossref, Google Scholar
• Nyberg AJ, Maltarich MA, Abdulsalam DD, Essman SM, Cragun O (2018) Collective pay for performance: A cross-disciplinary review and meta-analysis. J. Management 44(6):2433–2472.Crossref, Google Scholar
• Oyer P, Schaefer S (2005) Why do some firms give stock options to all employees? An empirical examination of alternative theories. J. Financial Econom. 76(1):99–133.Crossref, Google Scholar
• Pelled LH, Eisenhardt KM, Xin KR (1999) Exploring the black box: An analysis of work group diversity, conflict and performance. Admin. Sci. Quart. 44(1):1–28.Crossref, Google Scholar
• Pendleton A (2005) Sellers or keepers? Stock retentions in stock option plans. Human Resources Management 44(3):319–336.Crossref, Google Scholar
• Pendleton A, Robinson A (2010) Employee stock ownership, involvement, and productivity: An interaction-based approach. Indust. Labor Relations Rev. 64(1):3–29.Crossref, Google Scholar
• Pendleton A, Wilson N, Wright M (1998) The perception and effects of share ownership: Empirical evidence from employee buy‐outs. British J. Indust. Relations 36(1):99–123.Crossref, Google Scholar
• Pierce JL, Kostova T, Dirks KT (2001) Toward a theory of psychological ownership in organizations. Acad. Management Rev. 26(2):298–310.Crossref, Google Scholar
• Ployhart RE, Moliterno TP (2011) Emergence of the human capital resource: A multilevel model. Acad. Management Rev. 36(1):127–150.Crossref, Google Scholar
• Preacher KJ, Zhang Z, Zyphur MJ (2016) Multilevel structural equation models for assessing moderation within and across levels of analysis. Psych. Methods 21(2):189–205.Crossref, Google Scholar
• Richard OC (2000) Racial diversity, business strategy, and firm performance: A resource-based view. Acad. Management J. 43(2):164–177.Crossref, Google Scholar
• Richard OC, Kirby SL, Chadwick K (2013) The impact of racial and gender diversity in management on financial performance: How participative strategy making features can unleash a diversity advantage. Internat. J. Human Resource Management 24(13):2571–2582.Crossref, Google Scholar
• Richard OC, McMillan A, Chadwick K, Dwyer S (2003) Employing an innovation strategy in racially diverse workforces: Effects on firm performance. Group Organ. Management 28(1):107–126.Crossref, Google Scholar
• Richard OC, Murthi BP, Ismail K (2007) The impact of racial diversity on intermediate and long‐term performance: The moderating role of environmental context. Strategic Management J. 28(12):1213–1233.Crossref, Google Scholar
• Richard OC, Stewart MM, McKay PF, Sackett TW (2017) The impact of store-unit–community racial diversity congruence on store-unit sales performance. J. Management 43(7):2386–2403.Crossref, Google Scholar
• Richeson JA, Sommers SR (2016) Toward a social psychology of race and race relations for the twenty-first century. Annual Rev. Psych. 67:439–463.Crossref, Google Scholar
• Roberson QM, Holmes O, Perry J (2017) Transforming research on diversity and firm performance: A dynamic capabilities perspective. Acad. Management Ann. 11(1):189–216.Crossref, Google Scholar
• Sanders WG, Hambrick DC (2007) Swinging for the fences: The effects of CEO stock options on company risk taking and performance. Acad. Management J. 50(5):1055–1078.Crossref, Google Scholar
• Saxenian A (1996) Regional Advantage (Harvard University Press, Cambridge, MA).Crossref, Google Scholar
• Sesil JC, Kroumova MK, Blasi JR, Kruse DL (2002) Broad‐based employee stock options in US ‘New Economy’ firms. British J. Indust. Relations 40(2):273–294.Crossref, Google Scholar
• Sesil JC, Kroumova MK, Kruse DL, Blasi JR (2007) Broad-based employee stock options in the U.S.—Company performance and characteristics. Management Rev. 18(1):5–22.Google Scholar
• Sesil JC, Lin YP (2011) The impact of employee stock option adoption and incidence on productivity: Evidence from U.S. panel data. Indust. Relations 50(3):514–534.Google Scholar
• Shin D, Konrad AM (2017) Causality between high-performance work systems and organizational performance. J. Management 43(4):973–997.Crossref, Google Scholar
• Shore LM, Chung-Herrera BG, Dean MA, Ehrhart KH, Jung DI, Randel AE, Singh G (2009) Diversity in organizations: Where are we now and where are we going? Human Resource Management Rev. 19(2):117–133.Crossref, Google Scholar
• Sieger P, Zellweger T, Aquino K (2013) Turning agents into psychological principals: Aligning interests of non‐owners through psychological ownership. J. Management Stud. 50(3):361–388.Crossref, Google Scholar
• Singh J (2005) Collaborative networks as determinants of knowledge diffusion patterns. Management Sci. 51(5):756–770.Link, Google Scholar
• StataCorp (2013) Stata 13 Base Reference Manual (Stata Press, College Station, TX).Google Scholar
• Statistics Canada (2002) Guide to the Analysis of the Workplace and Employee Survey (Statistics Canada, Ottawa, Canada).Google Scholar
• Statistics Canada (2017) Visible Minority and Population Group Reference Guide (Statistics Canada, Ottawa, Canada).Google Scholar
• Steigenberger N, Wilhelm H (2018) Extending signaling theory to rhetorical signals: Evidence from crowdfunding. Organ. Sci. 29(3):529–546.Link, Google Scholar
• Super JF, Li P, Ishqaidef G, Guthrie JP (2016) Group rewards, group composition and information sharing: A motivated information processing perspective. Organ. Behav. Human Decision Processes 134(1):31–44.Crossref, Google Scholar
• Thatcher SMB, Patel PC (2012) Group faultlines: A review, integration, and guide to future research. J. Management 38(4):969–1009.Crossref, Google Scholar
• Turner JC, Hogg MA, Oakes PJ, Reicher SD, Wetherell MS (1987) Rediscovering the Social Group: A Self-Categorization Theory (Basil Blackwell, Cambridge, MA).Google Scholar
• van Knippenberg D, De Dreu CK, Homan AC (2004) Work group diversity and group performance: An integrative model and research agenda. J. Appl. Psych. 89(6):1008–1022.Crossref, Google Scholar
• van Knippenberg D, Schippers MC (2007) Work group diversity. Annual Rev. Psych. 58:515–541.Crossref, Google Scholar
• Venkatraman N, Ramanujam V (1986) Measurement of business performance in strategy research: A comparison of approaches. Acad. Management Rev. 11(4):801–814.Crossref, Google Scholar
• Wagner SH, Parker CP, Christiansen ND (2003) Employees that think and act like owners: Effects of ownership beliefs and behaviors on organizational effectiveness. Personnel Psych. 56(4):847–871.Crossref, Google Scholar
• Williams KY, O’Reilly CA III (1998) Demography and diversity in organizations: A review of 40 years of research. Staw BM, Cummings LL, eds. Research in Organizational Behavior, vol. 20 (JAI, Greenwich, CT), 77–140.Google Scholar
• Williams R, Allison PD, Moral-Benito E (2018) Linear dynamic panel-data estimation using maximum likelihood and structural equation modeling. Stata J. 18(2):293–326.Crossref, Google Scholar
• Wise S (2014) Can a team have too much cohesion? The dark side to network density. Eur. Management J. 32(5):703–711.Crossref, Google Scholar
• Wooldridge JM (2010) Econometric Analysis of Cross Section and Panel Data, 2nd ed. (MIT Press, Cambridge, MA).Google Scholar
• Wright PM, Gardner TM, Moynihan LM, Allen MR (2005) The relationship between HR practices and firm performance: Examining causal order. Personnel Psych. 58(2):409–446.Crossref, Google Scholar
• Yang Y, Konrad AM (2011) Diversity and organizational innovation: The role of employee involvement. J. Organ. Behav. 32(8):1062–1083.Crossref, Google Scholar
• Zheng W, Singh K, Mitchell W (2015) Buffering and enabling: The impact of interlocking political ties on firm survival and sales growth. Strategic Management J. 36(11):1615–1636.Crossref, Google Scholar