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

Abstract

© 2018, Emerald Publishing Limited. Purpose: The 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/approach: To 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. Findings: This 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/implications: The 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/value: Not 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.