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• W2339077539 abstract "In hierarchical organizations, business unit employees often identify stronger with their own business unit than with the organization. This can lead to significant agency costs when the interests of the business unit and the organization are not well-aligned. In this study, we examine whether increasing the salience of top executives, who are considered as representatives of the organization, can mitigate such agency costs. We experimentally examine this question in a capital budgeting setting where business unit employees can create agency costs by misreporting their private information at the cost of the organization. Relying on social identity theory, we predict an interaction between executive salience and the business unit employee’s social value orientation, such that increasing executive salience reduces misreporting by non-proself business unit employees but has no effect on misreporting by proself business unit employees. Our results are consistent with this hypothesis. We further show that the effect of executive salience on misreporting by non–proself employees is mediated by an increase in their organizational identification. This study contributes to the small body of work that focuses on the role of identity regulation in organizations and provides a window onto the role of executive salience in regulating employee behavior." @default.
• W2339077539 created "2016-06-24" @default.
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• W2339077539 date "2016-01-01" @default.
• W2339077539 modified "2023-09-25" @default.
• W2339077539 title "Identity Regulation as a Control Mechanism: Should Top Executives Be Salient to Their Employees?" @default.
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• W2339077539 doi "https://doi.org/10.2139/ssrn.2481352" @default.
• W2339077539 hasPublicationYear "2016" @default.
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