Extending signaling theory by discussing rhetoric in terms of cost and observability, we examine the relationship between organizational virtue rhetoric in prospectuses and the performance of foreign IPOs from 35 different countries. We also explore how the nature of this relationship is contingent upon the level of perceived corruption for each IPO firm's home country, a pervasive and costly problem for emerging economy countries due to its impact on economic growth and national governance. Our results indicate that signaling organizational virtue in prospectuses leads to higher levels of foreign IPO performance, which is positively moderated by perceived home country corruption.

Research Summary: We advance the concept of organization-stakeholder fit (O-S fit) to explain cooperative behavior between an organization and its stakeholders. O-S fit describes the compatibility that exists between an organization and a stakeholder when their characteristics are well matched. We highlight two dimensions of O-S fit: value congruence, or the supplementary fit of organizational and stakeholder values, and strategic complementarity, or the complementary fit of strategic needs and resources. For each dimension, we detail the unique relational factors-including core elements of trust, predictability, attraction/exchange, and communication-that motivate cooperation. We then explicate the ways in which value congruence and strategic complementarity dynamically interrelate over time. Finally, we consider how organization-stakeholder misfit may result in alternative relational behaviors, such as conflict or compromise. Managerial Summary: We develop a new way of thinking about the relationship between organizations and stakeholders. Recognizing that positive relationships require a degree of fit or compatibility, we argue that cooperative behavior between an organization and its stakeholders is maximized when relational partners share both core values and strategic priorities. We explain that high fit along these two dimensions increases trust, relational predictability, attraction/exchange, and communication. We also describe how positive relationships might be formed with fit along only one dimension, and how negative relationships might result in the presence of misfit. Ultimately, we suggest that managers who want to foster positive relationships with stakeholders should concentrate on aligning their values and priorities, rather than simply concentrating on one or the other.

Despite the call for increased theoretical diversity in franchising research, the incorporation of organizational theory into this literature has been minimal. In response, we examine how aspects of organizational identity are represented in franchisee recruitment Web sites. We develop the concept of franchise branding to understand how franchisors position franchise opportunities to attract potential franchisees. We find that firms in the Franchise 500 use more language associated with market orientation, entrepreneurial orientation, and charismatic rhetoric when compared to a sample of lower-performing franchises. We also examine the impact of franchisor size and age to examine how liabilities of size and newness impact language use. We find that larger firms tend to use more rhetoric but detect no significant differences based on age. We conclude by discussing future possibilities for incorporating additional theoretical perspectives into the franchising literature.

Research summary: Although prior research highlights the organizational and cognitive challenges associated with achieving organizational ambidexterity, there has been comparatively less empirical attention focused on the cognitive characteristics that may differentiate top managers of firms that achieve ambidexterity. We build on emerging research and identify cognitive flexibility as a cognitive characteristic with particular relevance to the challenges associated with ambidexterity and suggest that it works through chief executive officers (CEOs)' information search activities. We find that cognitively flexible CEOs are more likely to engage in effortful and persistent information search and rely to a greater extent on outside sources of information. In turn, effortful and persistent information search activities are associated with higher levels of organizational ambidexterity. Our study pushes forward the research agenda on cognitive micro-foundations of firm capabilities. Managerial summary: Ambidextrous organizations, or organizations that have the capability to pursue both incremental and discontinuous innovation, enjoy more sustainable competitive advantages. However, the achievement of organizational ambidexterity poses unique demands for top managers, including cognitive challenges. To help managers better understand these challenges, this study focuses attention on the role of the CEO in the achievement of organizational

Assumptions about the long-term orientation (LTO) of family firms are common in family business research. Drawing on prior conceptualizations, this article further develops and validates the LTO construct using content analysis techniques on two separate samples of data. Validation comes through empirical analysis of content validity, external validity, dimensionality, and concurrent validity. We find that family firms are higher than nonfamily firms on all three dimensions of LTO. We also discuss how future research can use this now-validated construct to address key questions in family business research, as well as inform the broader business literature.