What is the impact of sustainable development on the re-localisation of manufacturing enterprises?

Rendering the supply chain more eco-friendly is an innovative idea progressively adopted by industry. Our research focuses on the CO₂ equivalent emissions along the supply chain due to freight energy use and storage. A supply chain model based on discrete event simulation was developed. The model uses reorder point production management policy (ROP) within a make to stock (MTS) demand response strategy. Manufacturing capability is also taken into account using an overall equipment effectiveness indicator (OEE). In addition, the location of the firms and their types of products are modelled. The purpose is to compare supply chain CO₂ equivalent emissions of different configurations. This method is applied to two industrial cases: Carrier (UTC group), a large cooler manufacturer and Zannier group, a textile industry. The principle objective of the study is to conduct pertinent experiments to give green guidelines to Carrier and Zannier group.     

Does managerial ability influence the quality of financial reporting?

The purpose of this paper is to study the influence of managerial ability on the quality of their financial reporting. Using a large bank sample from nine different countries and for the time period 2004–2010, we expect that bank earnings quality and accounting conservatism increase with more able managers that disclose more accurate earnings and who report higher information about banks’ future earnings and cash flows.The results confirm that managerial abilities play a significant role in the quality of financial reporting in banks, and that capable bank managers are less likely to manage earnings opportunistically. This study is timely and relevant given the recent emphasis on earnings quality of banks over the last few years, and the criticisms of managerial abilities after the financial crisis. The evidence from this study can help standard-setters and regulators to better understand the business practices and accounting behavior of banks in the light of managerial abilities.     

NAFTA's impact on the North American agriculture—a logistician's perspective

NAFTA is improving the field of agriculture in Canada, the United States, and Mexico. It is not doing so by enacting measures intended to improve the agricultural sector directly. Rather, the improvement is the indirect result of agriculture's dependence on transportation, telecommunications, intellectual property rights, and investment capital-all of which have been substantially improved by NAFTA. Improvement of these four areas has improved agriculture and will continue to improve it in the future.     

Environmental scanning— the state of the art

In recent years increasing attention has been devoted to amplifying individual elements of corporate planning systems—among them the environmental scanning element. Moreover, the unprecendented intensification of corporate environmental complexity has led to a proliferation of approaches to scanning the general environment. However, a recent survey of a dozen U.S. companies has questioned whether such scanning practices have, in fact, been established in an ongoing manner. The author provides evidence here, based on publicly available information, of at least nine leading organizations where the practice of scanning for planning appears to have taken firm root. A discussion of the many facets of the resulting composite picture of sophisticated wide angle scanning leads to the anticipation that it is, in fact, on the threshold of rapid diffusion in the corporate world.     

Measuring servitization progress and outcome: the case of ‘advanced services’

The purpose of this paper is to establish a framework for assessing the progress and outcome of a manufacturer’s transformation towards becoming a provider of ‘advanced services’ – a complex bundling of products and services, whereby manufacturers offer capabilities and outcomes instead of products alone. ‘Advanced services’ represent the most complex offering in the current servitization trend amongst manufacturers. However, current performance measures lack the breadth and focus to assess progress or outcomes, and so support research and practice of organisational transformation efforts required. To address this gap the paper investigates how a manufacturer’s efforts to become an ‘advanced services’ provider can be comprehensively measured, and develops a framework for assessing the transformation journey towards becoming an ‘advanced services’ provider. The research method is based on (1) a systematic literature review process to create a comprehensive set of service-related performance measures that are available to assess a manufacturer’s servitization efforts, followed by (2) an engagement with an expert panel to synthesise the identified measures and create a set of ‘advanced services’ performance measures. The proposed framework is presented as a scorecard that can be used in practice to assess the progress and outcome of a manufacturer’s transformation towards becoming a provider of ‘advanced services’.     

The impact of family owners’ monitoring on CEO turnover decisions and the role of trust

Even though there is clear evidence that large shareholders play an effective monitoring role over poorly-performing CEOs, the monitoring of family owners is yet quite unexplored. This study investigates the impact of family ownership on the CEO turnover-performance sensitivity, examining two potential factors that can affect the ability of the family owners in ensuring a prompt replacement of an underperforming CEO. First, we examine whether the monitoring of family owners is weakened by the existence of family ties with CEO. Second, we investigate whether the monitoring of family owners over professional CEOs is affected by the cultural propensity to trust or distrust a stranger. Our findings show that family owners are able to ensure a prompt replacement of an underperforming CEO only when the CEO is not a family member but rather an outside professional. Moreover, we find that the effectiveness of the family’s monitoring over professional CEO is weaker in environments characterized by the cultural propensity to distrust a stranger, rather than in contexts characterized by the cultural feeling to trust an outsider.     

Required and obtained equity returns in privately held businesses: the impact of family nature—evidence before and after the global economic crisis

This paper analyses the impact that family businesses have on the minimum rate of return required by owner–investors (k _e ) and on the equity returns (ROEaT) obtained in privately held businesses. This influence is analysed for an economic growth period (2002–2007) and for a crisis period (2008–2013) in the European context. Moreover, our study also explores the family nature through the heterogeneity among family firms in their required and obtained equity returns by considering the degree of family involvement in the ownership and management. Our findings reveal that while family businesses always have a negative and significant impact on k _e regardless of the economic environment, they only have a positive and significant impact on ROEaT in economic upturns. Thus, non-economic goals do not necessarily imply underperformance but may involve a lower cost of equity capital in privately held family businesses than in privately held non-family businesses, which also leads to differences in the value creation.     

The impact of family CEO’s ownership and the moderating effect of the second largest owner in private family firms

This study explores two ownership issues in private family firms. First, we investigate the relationship between the ownership of family CEOs and firm performance, and postulate that this relationship in private family firms is more complex than the inverted “U” relationship found in public family firms. Second, we predict a potential moderating effect of the second largest owner, who may exert a monitoring role on family CEOs. We focus on private family firms as recent studies show that private family firms have distinct features compared to public family firms, and that findings documented in public family firms may not apply to the ubiquitous, but much less studied, private family firms. We have applied agency theory to develop the two hypotheses, used secondary data on a large sample of private family firms, utilized an adjusted conventional quadratic technique to test the hypotheses, and validated the findings using a second method of piecewise linear specification. The results show that the non-linear relationship between the ownership of family CEOs and firm performance is more complicated than the often-documented inverted “U” shape from public firms. Meanwhile, the second largest owner with a high enough ownership stake can impose a positive moderating effect by mitigating potential agency problems caused by family CEOs.     

The impact of international business education on career success—Evidence from Europe

In today's globalized world, career paths are becoming increasingly international, and so managers need respective cross-cultural strengths in order to act effectively in various cultural environments. Even though education—especially business education—is progressively becoming more international to meet these organizational demands, little is known about whether the extent of international business education influences careers, and in particular career success. In addressing this research deficit, we explore whether and how international business education affects career success. As the major contribution of this paper we suggest a conceptual framework which posits global identity and international experience as mediators of this relationship. The assumptions of this framework are confirmed by an investigation amongst 450 alumni of a European business school. Additional contributions include that we extend the limited body of research on the construct of international business education and its measurement, by providing an all-encompassing definition and much-needed operationalization. Furthermore, we contribute a European perspective on international business education through our empirical evidence.     

Does the presence of independent and female directors impact firm performance? A multi-country study of board diversity

This study empirically analyzes whether gender diversity enhances boards of directors’ independence and efficiency. Using data from 3,876 public firms in 47 countries and controlling for a wide set of corporate governance mechanisms, we find that firms with more female directors have higher firm performance by market (Tobin’s Q) and accounting (return on assets) measures. The results also suggest that external independent directors do not contribute to firm performance unless the board is gender diversified. These results hold with respect to different estimation models and robustness tests. Overall, our findings provide evidence that the female directors enhance boards of directors’ effectiveness. Finally, we find that firms that are concerned with board independence, and that firms in more complex environments are more likely to have gender-balanced boards.     

Overcoming the liability of foreignness without strong firm capabilities — the value of market-based resources

The concept of “liability of foreignness” — the costs of doing business abroad — has been known and discussed since the mid-1970s. At the core of these discussions is the role that firm capabilities play in overcoming or limiting these costs. This raises the question of how firms with inappropriate, limited or constrained capabilities relative to their host environment overcome the liability of foreignness. This paper focuses on the subsidiaries of “emerging multinationals” and how they manage the demands of a technologically and economically highly developed host country. A host location with sophisticated markets and well-developed institutional infrastructure may be a highly challenging environment for firms that have grown their organizational capabilities in less developed contexts. This paper explores that situation and considers how resources available on the market — for example through supplier inputs — assist subsidiaries to benefit from their presence in a munificent location. Despite the acknowledged limitations of a transaction-based approach, this paper presents evidence that purchasing knowledge provides an accessible strategy for overcoming some liabilities of foreignness.     

UK quality circle failures—The latest picture

This paper presents the main findings of postal questionnaires on quality circle failure based on a total response from 127 manufacturing organisations. Also reported are the results of interviews held in four of the respondent companies with facilitators, and leaders and members of quality circles which had failed. The findings indicate that some companies are still ignoring the well documented guidelines for circle programme implementation and operation. Redundancies and or company restructuring remain the major causes of both complete programme and individual circle failure. It is also pointed that most circle members are not interested in financial rewards for their circle activities, but there is a general feeling that non members do not appreciate their efforts. Significant differences in opinion were found between circle members and those of circle leaders and facilitators, in particular, those related to perceptions of management support for circles.     

Planning without vision— Roots of the urban disaster

Urban planning, especially in the United States, arose in reaction to the forces of industrialization. Yet urban development remained subordinate to the deeper powers of the rising technological order and failed to find an independent inspiration, ideal, or initiative by which cities could integrate the bewildering social changes. A kind of self-defeat is proclaimed in the very language of planning. How did this happen? Even to begin to perceive the causes, it is necessary to search in the history, philosophy, and customs of the society within which urban planning emerged.     

The impact of organisational alignment on the effectiveness of firms’ sustainability strategic performance measurement systems: an empirical analysis

Sustainability is becoming a mainstream issue for many organisations. A limited number of studies exist, however, on integrating sustainability into daily practices. Indeed, most of the research to date addresses only the definition and motivation for companies’ interest in environmental and social concerns. This paper contributes to the research on integrating sustainability into companies’ daily activities both directly and indirectly. It analyses the extent to which top management’s commitment to sustainability directly affects structural and social alignment and the effectiveness of measurement systems that monitor sustainability strategic performance and indirectly impacts firms’ social and environmental performance. Based on a quantitative analysis of survey responses from 405 large European companies, this paper documents the limited impact of social alignment to firms’ social and environmental performance. More specifically, the results challenge the diffuse belief that the alignment and commitment of middle managers to sustainability strategies as defined by the upper echelons have a relevant impact on the company’s social and environmental performance.     

Procurement strategies in the presence of the spot market—an analytical framework

This paper investigates a problem in which a buyer can procure from a regular supplier as well as from a supplier in a spot market, possibly formed over the Internet. The contract with the regular supplier specifies a predetermined order volume and price, while the spot market has unlimited supply but a varying spot price. We analyse this problem from a buyer/supplier perspective, and an analytical model is developed to analyse two distinctive procurement strategies: the pure procurement system (PS) and the mixed procurement system of regular supplier with a supplier in spot markets (MS). Without loss of generality, we obtained a closed-forms solution that enabled us to provide numerical analysis on the procurement strategies, and allowed us to compare further the different characteristics between PS and MS. The results of our analysis demonstrate that the use of spot market could effectively mitigate the risk associated with demand uncertainty facing the buyer. The results also show that adopting MS can generate a higher buyer's profit than the PS, and significant supply-chain profit improvements can indeed be achieved through buyer/supplier coordination. Furthermore, spot price volatility leads to the facilitation of the use of spot markets, improving the buyer and the supply-chain profitability.     

The management of offshore resources—Some implications of the 200-mile limit

This article examines in depth the strategic implications for those States who have recently declared 200 mile off-shore resource management zones. The authors, in a comprehensive and stimulating paper, examine the implications of so-calling a nation's offshore limit. It is an appropriate name for a nation's offshore limit since the primary reason for many nations declaring a 200 mile limit has been the abundance of resources which have often been found within those limits either in the sea or the sea bed itself. This paper reviews the current background of off-shore resource management and outlines suitable roles for adoption by the coastal States in the management of their off-shore renewable and non-renewable resources. Furthermore, it examines the contentious but nonetheless central issue of the benefits and costs which accrue through coastal state jurisdiction. The authors also examine an appropriate resource management process and the implications of resource use conflicts within the off shore limit as well as defining these conflicts on the basis of ‘stakeholder’ interests and introduces a new concept of the maximization of economic equity amongst competing stakeholders. The problem remains that the measurement of economic equity perhaps leaves the States concerned within a situation of only having defined the problem; the political process has then to deal with any reallocation measures that may be deemed appropriate.     

European cooperations in transition — the metamorphosis of homo cooperativus

It is suggested that the signs of the specificity of cooperative organizations are to be found in the mentality, ideality and morality of homo cooperativus. This specificity is undergoing a fundamental metamorphosis due to new environmental challenges emerging from the currently prevailing technological form of capitalism. In this new situation the homo cooperativus has to redefine his logic of action in order to cope with the necessity of accumulating financial, intellectual and political capital. Empirical findings in the U.K. and France suggest that this process of accumulation appears to be showing signs of an emergence of a new generation of homo cooperativus. The theoretical implications of the findings and the future of cooperatives as specific forms of economic organizations are presented and discussed.     

Adopting and Refining e-services — the Role of Organization Size

Information and communication technology (ICT) has become increasingly important in public service provision (e-services). Although most studies conclude that large organizations have higher quality e-service systems, few have studied if the effect of size persist over time. Empirically, this article reports how organizational size affects adoption and development of e-services in all Norwegian municipalities over a 13 year period (2001–2013). Seven different studies, conducted by four independent institutions, mapped the existence and quality of municipal web-sites. Controlling for several system characteristics, the study indicates that size has ambiguous effects concerning adoption, but a strong and positive effect on the quality of e-services.     

Liberalization’s impact on the Indian seed industry: competition,research, and impact on farmers

This article attempts to measure the impact of India’s limited liberalization on the seed industry and on farmers. Using a unique data set on the structure, research, and sales of private seed firms at two points in time, 1987 and 1995, we provide evidence that liberalization increased the competitiveness of the seed industry, and increased the amount of research by Indian and foreign seed firms. Then, using government district level data and data collected from these firms, we show that private hybrids increased farmers’ yields. This suggests that Indian farmers are the true beneficiaries of liberalization and that policies that encourage more competition and more research will provide future benefits to farmers.