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In this study the effects of three key factors (affect, loyalty, and contribution) of the manager-subordinate exchange relationship on two types of reward decision (monetary rewards and nonmonetary incentives) were examined. A policy-capturing approach of 2×2×2 within-subjects of scenario experiment design was used to examine the effects of the exchange relationship factors on the corporate manager's reward decision in terms of a Taiwan-US comparison. Total valid samples were received from 204 Taiwanese and 172 U.S. managers. The results showed that Taiwanese managers allocate more rewards to subordinates with a closer affective relationship than do U.S. managers. Conversely, U.S. managers allocate more rewards to higher contributing subordinates than do Taiwanese managers. The limitations of the research are discussed and suggestions for further research are proposed.

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PurposeIn this study, the authors argue that the host environment of subsidiaries may affect subsidiary initiative via relationships with two stakeholders: public and private stakeholders. On the one hand, the public relationships and private relationships of subsidiaries may affect their tendency to demonstrate initiative. On the other hand, including technological innovation as a moderating effect supports the tendency towards subsidiary initiative.Design/methodology/approachThis study obtained the data through a survey of 216 subsidiaries in China; chief executive officer or senior managers were selected as the data collection sources. AMOS analysis was used to address sophisticated data analysis issues.FindingsFindings based on samples from China support these arguments. The findings contribute to the literature by highlighting that different types of subsidiary initiative coexist within subsidiaries and by accounting for the external environmental relationships and technological innovation.Originality/valueWhat determines subsidiary initiatives in the host market? We find that (1) public relationships directly influence subsidiary initiatives, and (2) this effect is moderated by technological innovation. The theoretical framework shows that this interaction arises from the separate impacts of innovation characteristics, especially a foreign subsidiary's interest in entrepreneurial action affecting both growth and maintenance initiatives. In summary, this article concludes that initiatives are not simply the activities of subsidiaries. The authors hope that the strong explanatory and predictive power of these external factors and technological innovation are further enhanced when these concepts are integrated with the charters of internationalizing MNEs.

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Companies require good management practices to enhance their competitive advantage. The goal of this study is to examine the impact of leadership style, specifically how it induces employee well-being and organizational commitment. This study suggests that the management style of leaders is a key prerequisite for creating a good work environment and inducing innovation in employees. Therefore, this study uses the concepts of leadership style, employee well-being, organizational commitment, and innovation to analyze a sample of 349 respondents in the workplace. Theoretical and hypothetical investigation through causality testing using statistical tools of path analysis. The results indicate that transformational leadership and transactional leadership increase employee well-being and innovation. When employees feel satisfied, they increase their commitment to the organization, which in turn increases their innovation. In conclusion, companies need to be able to emphasize integration in their leadership styles. How to switch or match leadership styles is an important issue for leaders.

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