Growing and aging of entrepreneurial firms: Implications for job rotation and joint reward

• Published in: International journal of entrepreneurial behaviour & research 2018-09, Vol.24 (6), p.1087-1103
• Main Authors: Thongpapanl, Narongsak, Kaciak, Eugene, Welsh, Dianne H.B.
• Format: Article
• Language: English
• Subjects: Collaboration; Competitive advantage; Departments; Employees; Entrepreneurs; Entrepreneurship; Innovations; Job rotation; Knowledge; Marketing; Product development; R&D; Research & development
• ISSN: 1355-2554; 1758-6534
• DOI: 10.1108/IJEBR-03-2018-0135

PurposeThe purpose of this paper is to explore whether job rotation strategies and joint reward systems are equally effective in encouraging cross-functional collaboration (CFC) under all organizational contexts, ranging from young and small firms to mature and large ones.Design/methodology/approachTo ensure a wide applicability of findings in this study, the research model and hypotheses were tested with a sample of 232 Canadian firms active in a variety of industrial sectors. A survey instrument that comprised all the questionnaire items corresponding to the examined constructs is the foundation of the data used in this contribution.FindingsThis study shows that job rotation and joint rewards are strong and positive drivers of interdepartmental collaboration, which subsequently enhance firm performance. However, this illustration must be considered in the context of the firm shaped by its size and age because these two variables strongly and negatively moderate the relationships between CFC and its two antecedents.Research limitations/implicationsThe study was limited to Canadian firms only. The manufacturing sector was not differentiated into subsectors, such as technology. Future studies could compare subsectors of manufacturing to see if there is any correlation between types of industries, age, and size.Originality/valueNot all firms will be able to take advantage of the widely accepted values of job rotation and joint reward systems in generating CFC. Firms, to an extent, appear to be confronted with the liability of aging but not with the liability of smallness.