The Impact of Corporate Tax Executive Credentials on Person-Organization Fit

INTRODUCTION Researchers in organization management and applied psychology have suggested that the ability of corporate executives to effectively manage and produce desired results is related to the extent to which their values match those of the organization in which they are employed (Anderson, Spataro & Flynn, 2008; Erdogan & Bauer, 2005). Person-organization (P-O) fit has been examined by researchers as a significant determinant of the ability of employees to manage complex tasks and to align their behavior with the expectations of their superiors (Kristof-Brown, Jansen & Colbert, 2002; Shaw & Gupta, 2004; Verquer, Beehr & Wagner, 2003). The job responsibilities of corporate tax executives provide a research context of complexity, rapid change, and executive decisionmaking that allows for the examination of the determinants of P-O fit among high-level managers (Douglas & Ellingsworth, 1996; Epps & Cleaveland, 2009; Prow, 2005; Willis, Hoffman, Maloney & Raabe, 2008). Additionally, the lack of consistent qualifications for management of the corporate tax function suggests that analysis of potential outcome differences is warranted (Shevlin, 2007). The study's overall purpose is to examine the impact of corporate tax executive certification and licensure (credentials) on the fit between the executive and his or her work environment. In the study, we utilize a detailed questionnaire to elicit information from corporate tax executives. The questionnaire gathers information regarding the P-O fit of tax executives in terms of staffing preferences, continuing professional education, resource availability, and support for participation in professional organizations. We find that tax executive credentials impact environment fit in three of four areas--satisfaction with staffing levels of tax professionals, availability of tax guidance resources, and support for participation in professional organizations. We separate tax guidance resource availability into resources inside of the organization and resources outside of the organization. The significant result in the area of tax guidance resource availability lies in the reliance on outside consultants, and both groups (with certification or licensure credentials and without certification or licensure credentials) report satisfaction with the availability of in-house corporate tax resources. We also test for competing factors that may drive environment fit measures, and we find that both credential groups are similar in their knowledge of the tax function, influence over tax decisions, and educational achievement. The remainder of the paper is organized as follows. The next section reviews the literature related to person-organization fit and the importance of relevant work credentials. Information about the potential significance of work credentials for tax professionals is emphasized. This section also presents the hypotheses. The third section describes the study methodology and summarizes the demographic characteristics of the study respondents. The fourth section discusses the results of the study, and the final section provides a summary and conclusion. LITERATURE REVIEW AND HYPOTHESES Psychology researchers examining person-organization fit have alternatively defined P-O fit in terms of the similarity (or congruence) of individual and organization characteristics, the ability of an individual to fill a void in an organization, and the match between the individual's skills and the demands of the organization (Morley, 2007). In the management literature, the congruence of individual and organization values has emerged as the operational definition of P-O fit (Kwantes, Arbour & Boglarsky, 2007; Silverthorne, 2004). Several manifestations of P-O fit in corporations have been examined by researchers. Ambrose et al. (2008) and Coldwell et al. (2008) examine the impact of P-O fit in terms of ethical values and find that an ethical P-O fit is related to higher employee commitment to the organization and its goals. …