Reconciling Traditional Morality and the Morality of Competition

It is commonly believed that the moral norms of “everyday” or “traditional” morality apply uniformly in all business contexts. However, Joseph Heath has recently argued that this is not the case. According to Heath, the norms of everyday morality apply with respect to “administered” transactions but not “market” transactions. Market transactions are, he argues, governed by a distinct, “adversarial” morality. In this article, I argue that Heath's attempt to show that competitive contexts are governed by a distinct, adversarial morality does not succeed. I then undertake the task of showing that, contrary to what is commonly thought, competitive actions can be reconciled with the norms of traditional morality.     

Putting the “psychic” Back in Psychic Distance: Awareness,Perceptions, and Understanding as Dimensions of Psychic Distance

Unlike the IB literature whose emphasis within the term ‘psychic distance’ has been more on “distance” and less on “psychic,” our starting point is all “psychic” and no “distance,” assuming distance is defined as the difference between two countries. We propose that psychic distance be centered on the firm's managers and explain how their cognitive limitations, perceptions, heuristics, and experiences interact with a foreign environment to influence their decision making. We replace the conventional definition of distance with the cognitive dimensions of managerial awareness, perceptions, and understanding. Awareness captures the manager's consciousness of foreign context elements relevant to the firm's decision, perception is the manager's interpretation of the extent of these relevant environmental elements, and a manager's understanding captures the relationships among these context elements and the firm's decision. We argue that a multidimensional psychic distance construct is necessary as many of distance's problems are due to the illusion it promises of capturing a manager's perception of a complex foreign environment in a single number. Our approach eliminates distance's problems of symmetry and linearity. It also eliminates the constraint that distance is only associated with negative outcomes. After explaining the theoretical value of awareness, perception, and understanding by developing propositions predicting context traps, we present our operationalization of psychic distance.     

Generalized Steiner Problems and Other Variants

In this paper, we examine combinatorial optimization problems by considering the case where the set N (the ground set of elements) is expressed as a union of a finite number of m nonempty distinct subsets N ₁,...,N _m. The term we use is the generalized Steiner problems coined after the Generalized Traveling Salesman Problem. We have collected a short list of classical combinatorial optimization problems and we have recast each of these problems in this broader framework in an attempt to identify a linkage between these “generalized” problems. In the literature one finds generalized problems such as the Generalized Minimum Spanning Tree (GMST), Generalized Traveling Salesman Problem (GTSP) and Subset Bin-packing (SBP). Casting these problems into the new problem setting has important implications in terms of the time effort required to compute an optimal solution or a “good” solution to a problem. We examine questions like “is the GTSP “harder” than the TSP?” for a number of paradigmatic problems starting with “easy” problems such as the Minimal Spanning Tree, Assignment Problem, Chinese Postman, Two-machine Flow Shop, and followed by “hard” problems such as the Bin-packing, and the TSP.     

AN EXTENSION OF WOLFE'S STUDY OF SIMULATION GAME COMPLEXITY*

This study is an extension of recently reported research concerning the relationships between business simulation game complexity and student perceptions of “learning,”“monotony,” and “appropriateness of challenge.” A game of intermediate-level complexity was used at two education levels. Findings from the current study are compared with findings from an earlier study's intermediate-level complexity game. A number of questions with respect to the earlier findings are raised.     

Hong Kong managers' perceptions of American business values

This report describes empirical research conducted to study the research question, “To what extent do foreign managers' own cultural values influence their perceptions of the corporate values of companies in other cultures?” Using the authors' “Business Values Questionnaire,” business managers from Hong Kong gave their perceptions of publicly stated corporate values of very large U.S. service companies. A similar United States sample was used as a comparison group. Results gave partial support to the authors' hypotheses that an individual's own cultural values influence perceived values of another culture.     

The Social Responsibility of Managers: Reassessing and Integrating Diverse Perspectives

The social responsibility of business has been a prominent issue in the academic and practitioner literatures, as well as in the curricula of business schools, for many years. While Friedman's iconic defense of profit maximization as the responsibility of management has been widely and extensively assailed, emerging positions on the role of business in society offer little clear and practical guidance to current managers, as well as Masters of Business Administration students. I argue in this article that the focus of the debate should shift to considering how the rules of the game surrounding business' behavior should be formulated and what the role of socially responsible managers should be in helping to establish those rules. My contention is that the goal of society should be to strengthen the linkage between the achievement of social objectives and profit maximization by business through “bright line” regulations and laws. Socially responsible managers will participate in setting the rules of the game by advising policymakers on how specific regulations and laws can be structured so that they most effectively condition the linkage between social objectives and profit maximization. If there is a unique social responsibility of managers beyond profit maximization, it is to participate in the policymaking process “honestly,” that is, without attempting to game the system through guile and opportunism.     

An organizational approach for the study of the diffusion of process innovation strategies in internal auditing and control systems

Davenport (1993a) has pointed out that the diffusion of innovation approach as a behavioral process change has been limited to the study of how new information technology can be successfully adopted, rather than “how innovation can improve organizational performance.” This article extends Davenport's challenge to bridge this research gap by applying the diffusion of innovation approach to study accounting and control systems as an administrative process innovation approach to improve business performance. We chose to study internal auditing because it constitutes an important aspect of an administrative process innovation program that is critical for improving business performance programs.     

What drives alignment between offered and perceived well-being initiatives in organizations? A cross-case analysis of employer–employee shared strategic intentionality

This study investigates the conditions of alignment between an organization's business strategy and the well-being initiatives (WBIs) offered to employees and employees' perceptions of the latter. We conducted a comparative study on the conditions of alignment between offered and perceived WBIs in three companies with different business strategies. Findings highlight that the alignment between offered and perceived benefits depends on what we label as “shared strategic intentionality”: (1) how employers use their understanding of the organization's business strategy to craft WBIs and (2) employees' attributions about why their employers offer WBIs the way they do and of the broader understanding of the organization's business strategy. We contribute to the strategic HRM literature by proposing an integrative position with regard to the macro (i.e., employer-focused) and micro (i.e., employee-focused) research traditions. Our position has the advantage of looking at employers' intentions and at employees' attributions of intentions simultaneously, and unravels the central role of business strategy in shaping their alignment. From a practical standpoint, not only do we bring a more nuanced understanding of the strategic HRM challenges faced by employers and employees in settings with different business strategies, but we also initiate a discussion about the traps and best practices associated with configuring effective WBIs in organizations.     

Conceptualizing leadership with respect to its historical–contextual antecedents to power

An attempt is made here to build on the ideas and arguments presented in a recent Leadership Quarterly journal article written by Hunt and Dodge [Leadership Q. Yearly Overview Leadership 11 (2000) 435]. In their article, these authors argue that contemporary leadership researchers tend to neglect the historical–contextual antecedents of the field and as a result are developing many theories that reflect little more than a form of “academic amnesia” and “leadership déjà vu”. The importance of Hunt and Dodge's argument is reinforced through the use here of a form of deconstruction to reveal a lacuna in the leadership literature—the insufficient coverage of power, particularly at what is termed a deep structure level. With the current context of organizational change in mind, this lacuna is shown to have problematic consequences for leadership theory in general. More specifically, the increasing use of dispersed leadership strategies is shown to be particularly problematic. The article proposes a new conceptual framework that begins to address these problems and in so doing provides ideas and challenges for future research in the field.     

Outsourcing Manufacturing: Secure Price‐Masking Mechanisms for Purchasing Component Parts

This paper develops and tests a privacy‐preserving business process that supports the selection of a contract manufacturer by an original equipment manufacturer (OEM), and the determination of whether the OEM or the chosen contract manufacturer will procure each of the components to be used in the manufacture of the OEM's branded product. Our “secure price‐masking (SPM)” technology contributes to procurement theory and practice in four significant ways: First, it preserves the privacy of every party's individual component prices. Second, SPM assures that the contract manufacturers will bid their own private purchase cost (i.e., not add a margin to their cost). Third, SPM is not invertible; i.e., none of the participants can “solve” for the private inputs of any other participant based on its own inputs and the outputs provided to it by SPM. Fourth, the posterior distribution of any other participant's private inputs is practically indistinguishable from its prior distribution. We also describe the results of a proof‐of‐concept implementation.     

A Thin Spot1

A “thin spot” in thinking about business endangers our human being. This article traces a change in business thinking over the last generations to note how, under the spell of the scientific method and the thrall to utilitarian values, our understanding of our self has grown harder, more determined, and less sympathetic. Bringing together ideas about the meaning of self from the study of semiotics and from the author's own religious faith, this article describes how we can reclaim our human being by grounding thinking about business in faith that reaches to God.     

A Theory of Production Competence Revisited*

A recent article [3] proposed a definable relationship between production competence and business performance and presented empirical evidence to support the relationship. The purpose of this note is four-fold. First, it corrects the authors' numerical measure of production competence. The correction changes the nature of the relationship between competence and performance. Second, this note suggests an improved numerical measure of business performance (the dependent variable in the study). The authors of [3] defined performance in a manner which inadvertently captures elements used to measure production competence (the independent variable). The result is a deceptively close fit of the authors' model with the data. The third purpose of the note is to introduce a more appropriate theoretical framework for the production competence construct. It is shown that production competence is closely related to the formulation and implementation of manufacturing strategy and can best be understood within that context. Last, an alternative conceptual model of the relationship between business strategy, production competence, and business performance is presented. The new model includes a construct which measures the “fit” of a firm's business strategy to its external, competitive environment.     

Trojan Horses or Local Allies: Host-country National Managers in Developing Market Subsidiaries

We investigate a multinational corporation's (MNC) decision to appoint host-country national (HCN) managers to foreign subsidiaries based on the institutional context of and familiarity with the host country. HCN managers are commonly associated with specialized knowledge, superior responsiveness, and higher legitimacy. Yet, we argue that local familiarity of HCNs can also be perceived as risky or harmful by MNC parents. We analyze how formal and informal institutions affect the trade-off between positive effects and potential costs associated with HCN managers (“Local allies” vs. “Trojan horses”). We find that legal institutions protect foreign MNCs from potential costs, encourage the use of HCNs and reinforce their benefits. Corruption and corruption distance, however, increase perceived costs associated with HCN managers up to a point at which they outweigh their perceived benefits.     

Leadership for the Sustainability Transition

Society is looking to business to help solve our most complex environmental and social challenges as we transition to a more sustainable economic model. However, without a fundamental shift in the dominant virtues that have influenced business decision making for the past 150 years to a new set of dominant virtues that better fit today's environment, it will be more natural for companies to resist the necessary changes than to find the opportunities within them. We use the term “virtues” quite broadly to describe dispositions to think, feel and act in skillful ways that promote the aims of a practice. Addressing this deeper level of cultural change is essential to cultivating new instinctive behavior in business decision making. In this article, we describe five clusters of virtues that facilitate effective response to the transition challenges—adaptive, collaborative, frugality, humility, and systems virtues. To illustrate the application of these virtues, we present a detailed case study of Green Mountain Power, a Vermont electric utility that has embraced the shift to renewable energy and smart‐grid technology, and is creating an innovative business model that is disrupting the industry. After distilling key findings from the case, we outline an approach to leadership development that can help accelerate the infusion of transitional virtues across an organization.     

Fit in strategic information technology management research: an empirical comparison of perspectives

The impacts of information technology on business performance has been a focus of research in recent years. In this regard, contingency models based on the notion of “fit” between the organization's management of IT, its environment, strategy, and structure seem to show promise. Six perspectives are examined as they pertain to the relationships between the firm's environmental uncertainty, its strategic orientation, its structure, its strategic management of IT, and its performance, namely moderation, mediation and matching as bivariate approaches to fit, and covariation, profile deviation and gestalts as systems approaches. These relationships are analyzed by means of an empirical study of 110 small enterprises. Results obtained from applying and comparing the six perspectives illustrate their significant differences and confirm the need for conceptual and methodological rigor when applying contingency theory in strategic information technology management research.     

Other Aspects of BSE Issues in East Asian Countries

Scientific risk estimates of BSE can be the same internationally; however, socioeconomic backgrounds, such as food supply (e.g., beef import status) and dietary life, are different between East Asian countries (i.e., in this article, Japan, Korea, and Taiwan) and Western countries, which may account for differences in risk perception of people. Since political and social backgrounds also differ among these East Asian countries, they will also influence people's attitudes toward food safety. Psychological factors such as “dread” and the “unknown” are considered to be important in risk perception, but socioeconomic, and in some cases political, situations (e.g., attitudes of politicians and political pressures in trade) may strongly influence the perception and acceptance of various risks by citizens. With regard to the BSE issues, latter aspects may contribute a lot to risk perception, but have not been examined in depth until now. Although protection of health is the key element to food safety, sometimes business factors can overwhelm safety issues in international trade. Appropriate risk governance in food safety issues, such as BSE, can be attained not only through application of outputs of scientific assessment, but also through deliberation of various aspects, that may have strong influence on people's risk perception, and improved communication among stakeholders and also among countries.     

Brokerage and governance for business networks: a metasynthesis-based discussion

This article reviews and discusses empirical literature on the micro-mechanisms of Burt’s concept of brokerage for inter-firm business networks from a governance perspective. Using a combination of a literature review and a qualitative metasynthesis, research gaps are first identified in the literature about these micro-mechanisms and then filled with interpretations, stemming from a qualitative metasynthesis of 13 in-depth case studies on brokerage for business network environments. The paper discusses three related elements and their inter-relationship in the brokerage process: the enabling factors for brokerage in business networks; the brokerage activities, particularly the combination of “bonding”, “bridging”, exclusion, and moderation/negotiation in different network configurations; and the outcomes of brokerage for business networks. We argue that network managers should take care of these elements when using brokerage to govern business networks. For example, the positional factors of agents in the network who take over brokerage functions need to be monitored and a balance of their embeddedness in the network and independence of focal firms should be safeguarded. Moreover, activities associated with brokerage should be steered and controlled in order to generate network benefits such as a higher collaborative stance of the partaking firms or learning processes amongst them.     

Demand-side strategy and business models: Putting value creation for consumers center stage

Value creation for consumers, as the conditio sine qua non for value capture, is at the heart of demand-side strategy research and is a core element of almost any business model. In this paper, we discuss the unique ideas that demand-side strategy and business model research jointly contribute to the strategy literature, and we elaborate on the potential for cross-fertilization between both areas of study. We argue that both the demand-side perspective and the business model concept could jointly promote a better understanding of strategy-making by mutually relying on the distinctive insights from each stream; specifically, while research on demand-side strategy can help business model scholars gain a more robust and granular understanding of effective value propositions, business models can serve as a “bridging concept” that links the shared ideas of both areas of study to resource-based streams of strategy research.     

Key survival issues: Practical steps toward corporate environmental sustainability

Environmental pressures and growing societal commitment to the ideal of “sustainable development” pose profound strategic challenges for business. Recognition of the significance of sustainable development for business and eagerness to “do something” has lead to a number of responses from companies. The most effective corporate response is to build an environmentally sustainable business. The Environment Council through its work had developed an elegantly simple and proven approach to producing and implementing a strategy for doing this.This approach involves recognising that corporate strategic environmental opportunities and threats fall into three inter-related categories; Resources, Innovation, and Values. Applying the simple technique of a Strenghts, Weaknesses. Opportunities and Threats (SWOT) analysis of the business against these fields enables managers to establish the organisation's environmentally-driven key survival issues (KSIs) - environmental threats and opportunities to which the company has to develop the right response to ensure survival and prosperity. Every business has perhaps two or three key survival issues, though few seems to know what they are and even fewer are doing anything serious about them. The article gives some guidance on identifying key survival issues and how to develop a consistent corporate response.     

Rachel Carson's Toxic Discourse: Conjectures on Counterpublics,Stakeholders and the “Occupy Movement”

This article draws attention to the origins, forms, and implications of “toxic discourse” as a genre central to the understanding of the public sphere in business in society. Rachel Carson's Silent Spring is used as a pivotal cultural document establishing “toxic discourse” as an ongoing form of moral narrative rooted in the rationality of counterpublics. Toxic discourse is framed within a center/periphery model in which toxic discourse gains salience in periods of economic dislocation and uncertainty. In these periods, toxic discourse draws together those on the periphery or counterpublics who otherwise would not unite in their opposition to the center. The article critically examines how stakeholder theory, despite making sense of the public sphere for agents of organizations, glosses counterpublics and relegates toxic discourse, as evident in the “Occupy Movement,” to the ephemeral role of temporary, disruptive protest groups with very little of substance to communicate.