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Research Summary: This study investigates category innovation, when firms introduce a new label to pioneer a market category. I propose two antecedent pathways. The first is based on firms' material developments. Firms that combine categories in their products and technologies are more likely to use category innovation to communicate their position is not peripheral, but at the center of an emerging category. The second is contextual, in response to category leniency, when a market category has ambiguous social meaning. Central and peripheral firms in lenient categories use category innovation to send a clearer signal of their position. These pathways are countervailing: the more lenient a firm's categories, the weaker the relationship between category combination and category innovation. Exploratory analyses show category innovation is associated with firm success. Managerial Summary: Firms use category labels to communicate the market they are in. This article studies the linguistic tactic category innovation: when firms introduce a new label to signal the firm is carving out a new market. I find firms use this tactic when they (a) develop novel, category‐combining products that do not fit into existing markets, or (b) are in a market that is not well‐defined (a lenient market category). I also find that for firms in lenient markets, the relationship between novel products and category innovation weakens. Preliminary evidence uncovers an association between firms that use category innovation and their likelihood to IPO, suggesting this linguistic tactic may be part of successful firm strategies. [ABSTRACT FROM AUTHOR]

We provide here a general mathematical framework to model attitudes towards ambiguity which uses the formalism of quantum theory as a "purely mathematical formalism, detached from any physical interpretation". We show that the quantum-theoretic framework enables modelling of the Ellsberg paradox, but it also successfully applies to more concrete human decision-making tests involving financial, managerial and medical decisions. In particular, we elaborate a mathematical representation of various empirical studies which reveal that attitudes of managers towards uncertainty shift from ambiguity seeking to ambiguity aversion, and viceversa, thus exhibiting hope effects and fear effects. The present framework provides a promising direction towards the development of a unified theory of decisions in the presence of uncertainty. [ABSTRACT FROM AUTHOR]

Purpose – The aim of the research is to investigate how managers' personal traits, emotions and attitudes shape their tolerance of ambiguity (TOA); and consequently, the influence of managers' ambiguity tolerance in organizations' financial performance. Design/methodology/approach – Survey data were collected from 54 Greek banks. A total of 412 senor-level managers completed questionnaires examining TOA, personal traits, emotions and attitudes in the workplace. Principal components analysis and ordinary least-squares regressions were used to explore the hypotheses of the paper. Findings – Three factors characterize managers' emotions in the workplace, namely pleasure, arousal and dominance; and, respectively, two factors their involvement, namely importance and interest. Further, locus of control, importance, job satisfaction, pleasure and organizational commitment critically affect managers' TOA, which, in turn, seems to influence positively organizations' profitability. Research limitations/implications – Further research is required in Greek banking industry regarding the influence of managers' emotional and cognitive attributes in organizations' financial performance. Likewise, this research should be expanded to other industries. Practical implications – The findings provide further support on the significance of emotional and cognitive attitudes in the workplace; the paper suggests policies to enhance managers' TOA, and thus, organizations' profitability. Originality/value – The originality of this study lies in the finding that emotional and cognitive characteristics affect managers' TOA, which, in turn, influences significantly organizations' profitability. Another significant contributing factor is that the study is carried out in Greece, where few studies have been conducted in this area. [ABSTRACT FROM AUTHOR]

Purpose - The purpose of this article is to develop a conceptual model predicting the influence of biased causal explanations for subordinate behaviors and outcomes on a leader's functionality and the quality of leader-member relationships. Design/methodology/approach - Attribution theory is used to analyze the effect of leader perceptions and emotions on the functionality of leader-member relationships. It is predicted that the negative emotions and expectancies stemming from biased leader attributions will promote dysfunctional leader behaviors. These dysfunctional behaviors, in turn, are believed to reduce the quality of leader-member relationships. Research limitations/implications - Although much of the proposed model is based on empirical evidence, it is acknowledged that some key relationships have not been tested directly in past research. It is suggested that future research can seek to validate these aspects of the model. It is also suggested that future research explore the role of subordinate, as well as leader, attributions in dysfunctional relationships. Practical implications - Several implications of the model for promoting functional leadership in organizations are described. The importance of leaders being aware of their attributional biases is indicated and information provided on how to assess one's attribution style. Also discussed are implications for reducing situational ambiguity and increasing causal feedback in the workplace. Originality/value - This paper builds on past attribution theory research to address a shortage of research on the cognitive, interpersonal aspects of functional and dysfunctional leadership. [ABSTRACT FROM AUTHOR]

Managers who have access to several modes of understanding have been described as ideal decision-makers. This article reports on research that explored how flexible styles of decision-making, defined by the number and kinds of accessible modes of understanding, influence the choices of top executives. Instruments were used to measure attitude toward ambiguity and uncertainty and to determine the style of the participating top executives. The participants were asked to evaluate eight capital expansion projects in terms of adoptability and risk. Inferences about decision-making were drawn from these evaluations. The tolerance for ambiguity and uncertainty scores and the adoptability and risk ratings were associated with the participant's style. Top executives with a flexible style who have access to each of the modes of understanding were found to be aggressive decision-makers with a high tolerance for ambiguity and uncertainty. [ABSTRACT FROM AUTHOR]