Can Management Accounting Be Helpful for Young and Small Companies? Systematic Review of a Paradox

While management accounting (MA) implies potential benefits for large established companies, its usefulness for young and small companies is less clear. This review analyzes and partially resolves the paradox and provides a structured overview of present knowledge. A systematic literature search yielded 67 empirical papers in 25 journals. Drawing on the results of a two‐step coding process, this study proposes 20 novel second‐level constructs expressing the types of MA, their antecedents and their consequences in young and small companies. The main results show that, in discussing MA, the literature refers mainly to business planning, accounting‐based management control activities and financial accounting. Most studies find MA to be helpful for young and small companies because it provides tools to overcome difficulties arising from company growth and reduces information asymmetry with external partners. Overall, however, the empirical literature on this topic is highly concentrated, offers theoretical construct definitions of poor quality, and lacks a clear statement of what MA really does in young and small companies. Therefore, future research and theory development are warranted.     

International coopetition for innovation: Are the benefits worth the challenges?

International coopetition has rarely been studied in relation to innovation. Further exploration of effects of international coopetition, i.e. the pursuit of simultaneous cooperation and competition, on a firm’s innovation performance is especially important as such a relationship is challenging with a high propensity to fail. This observation formed the point of departure for this study, which aims to increase the understanding of the effects of international coopetition on firm innovativeness and how these effects are conditioned on the magnitude of the organizational adjustments a firm introduces. We use an unbalanced panel of 9839 firms that participated in four waves of the Swedish Community Innovation Survey between 2008 and 2014 as our empirical base. We illustrate that firms that cooperate with competitors internationally are more likely to exhibit higher propensity to introduce radical innovations, yet this effect is conditioned upon the magnitude of organizational adjustments. Overall, our study contributes to the understanding of the implications of international coopetition and what a firm needs to benefit from it.     

Public or Private? Public Corporations,Companies and the Decline of the Middle Ground

In the era of New Public Management in the Anglo-Saxon countries, governments have become infatuated with things private and disparaging of things public. This dramatic attitudinal shift has been reflected in the importation of private sector business method into so much of what government does, and in the championing of privatization in its various forms as a way of reducing the size and importance of public sectors. The change represents a retreat from the more traditional acceptance that a valuable social purpose was served by middle ground structures and activities located in the outer parts of these public sectors, i.e., between the highly politicised cores of government systems and the highly commercialised institutions of private enterprise. In particular, this article argues that the form of the public (or government, statutory or crown) corporation epitomised such social value, and that the state-owned company which is now so often replacing it represents an abandoning of social value.     

International work experience and compensation: Is more always better for CFOs?

The CFO is increasingly considered the second most important executive in the firm after the CEO. Still, little is known about the factors that determine CFOs' compensation. Recently, it has often been claimed that, in MNCs, CFOs should have international work experience. But is a CFO's international work experience also reflected in his or her compensation? We combine human capital and social capital perspectives to account for both the upside and the downside of international work experience. We suggest that working abroad provides CFOs with valuable knowledge and skills which increase compensation; however, staying abroad for too long has an adverse effect due to losses in social network ties. We thus propose an inverted U-shaped relationship between CFOs' international work experience and their compensation. Furthermore, we suggest that this relationship is contingent on the characteristics of the CEO. In testing our hypotheses on a sample of the largest MNCs in Europe, we find support for the proposed relationships. Our study contributes to the literature on top management characteristics and executive compensation, specifically by providing a comprehensive understanding of how and when international work experience pays off for CFOs.     

Does Japan Still Matter? Past Tendencies and Future Opportunities in the Study of Japanese Firms

This paper engages with the question ‘does Japan still matter’ by systematically reviewing publication patterns in peer‐reviewed academic journal articles addressing Japanese firms and their management practices, illustrating the academic discourse surrounding Japanese firms over four decades, and by identifying future research opportunities. Initially, particularly from the 1980s when Japanese firms came to prominence, these practices tended to be identified as ‘best practice’. However, at least in part due to socio‐economic changes, this tendency has become less prominent since the ‘bubble economy’ burst. Instead, three broader developments are observed: the examination of the continuity and change in the traditional Japanese model, a more complex approach that involves multiple themes of research, and leveraging new contexts to examine Japanese firms, including the long‐term recession, the rise of the East Asian economy, and the increasing importance of corporate social responsibility.     

A journey around decision-making: Searching for the “big picture” across disciplines

This paper carries out an interdisciplinary literature review to develop an updated framework that integrates all aspects of decision-making. It proposes a framework that combines the evolutionary perspective with the complexity theory to integrate the ontological communalities between the examined disciplines (operational research, psychology and management). Decision-making is regarded as a systemic, multi-tiered information-based process, founded on the interaction of the decision-maker with the environment in a sort of learning path which co-evolves through variation–selection–retention mechanisms nourished by environmental feedback.Such a complex-coevolutionary perspective provides valuable insights concerning some as-yet-unexplored aspects of decision-making, such as inter- and intra-individual differences in decision-making, as well as the interaction of ‘rational’ and ‘intuitive’ processes or some contradictory evidence (regarding ‘fractionated expertise’ and ‘escalation of commitment’).Practical implications on management education are highlighted, as well as methodological limitations and needs for further studies. The journey is not yet over and probably never will be, but, from an evolutionary perspective, it is the journey, not the arrival, that matters.     

Exact and approximation algorithms for?the?complementary maximal strip recovery problem

Given two genomic maps G ₁ and G ₂ each represented as a sequence of n gene markers, the maximal strip recovery (MSR) problem is to retain the maximum number of markers in both G ₁ and G ₂ such that the resultant subsequences, denoted as $G_{1}^{*}$ and $G_{2}^{*}$ , can be partitioned into the same set of maximal substrings of length greater than or equal to two. Such substrings can occur in the reversal and negated form. The complementary maximal strip recovery (CMSR) problem is to delete the minimum number of markers from both G ₁ and G ₂ for the same purpose, with its optimization goal exactly complementary to maximizing the total number of gene markers retained in the final maximal substrings. Both MSR and CMSR have been shown NP-hard and APX-hard. A?4-approximation algorithm is known for the MSR problem, but no constant ratio approximation algorithm for CMSR. In this paper, we present an O(3 ^k n ²)-time fixed-parameter tractable (FPT) algorithm, where k is the size of the optimal solution, and a 3-approximation algorithm for the CMSR problem.     

Does Quality Still Pay? A Reexamination of the Relationship Between Effective Quality Management and Firm Performance

Because of the changing competitive environment, quality might have lost some of its luster and emphasis in business. The research question we aim to address in this paper is: Does quality still pay in the new competitive environment? Using replication research, we re‐examine the impact of an effective total quality management (TQM) program on a firm's operating performance in the new competitive environment. We use publicly available data for award‐winning firms and adopt several control‐firm‐selection approaches in our event study. Based on data from more than 500 firms, we find that over a 10‐year period—6 years before to 3 years after winning their first quality award—firms in our sample perform significantly better than control groups in various operating performance measures. Not only do award‐winning firms have better results after receiving awards, they also have superior performance records before the award. Our results suggest that quality is still critical to achieving long‐term competitive advantages, and firms who continuously improve their quality continue to reap rewards by way of sales and financial performances exceeding those of their competitors.     

Organization and Work Situations: Which sources for the learning process?

ABSTRACT: The observation of economic activity grants an equally important place to learning as some recent theoretical problems. However, what is meant by learning, and what in the productive activity enables the application of the learning process? This paper examines the notion of learning, as far as the firm is concerned, putting the emphasis on two main directions. On one hand, learning is not only a dynamic but also a process: it is not only a matter of going from one point to another, but also a process of construction of knowledge and rules. On the other hand, this process must be understood as an articulation between individual and organizational learning.     

Who Chooses Which Private Education? Theory and International Evidence

Private school students do not always perform better in standardized tests. We suggest that this may be explained by choice of private schooling by less capable students in countries where government schools are better suited to talented students. To assess the empirical relevance of this mechanism, we exploit cross‐country variation in the Program for International Student Assessment (PISA) 2009 survey of differences between private and state school regarding organizational features that are differently suitable for students with different learning ability. We seek and find evidence of this mechanism's empirical relevance in controlled regressions that treat within‐country variation of PISA scores as an indicator of unobserved ability to learn.     

When Does the Board Blame the CEO for Poor Firm Performance? Extreme Resource Reallocation and the Board's Industry and CEO Experience

This study sheds light on our understanding of when boards dismiss the CEO by considering the inherent conflict created by the board's advisory role when the firm underperforms. Using a sample of US firms listed in Standard & Poor's ExecuComp for the period 2000–2012 we find that, when a firm underperforms, extreme resource reallocation increases the likelihood of CEO dismissal. This relationship is positively moderated by the board's industry and CEO experience. The study contributes to the literature on corporate governance by identifying the conditions that trigger dismissal of the CEO in light of boards’ motive to protect their reputation.     

Physician-hospital organizations and PHO executives. What lies ahead for the PHO?

The 1996/97 Profile of Physician-Hospital Organizations and PHO Executives, jointly conducted by the American Association of Physician-Hospital Organizations/Integrated Delivery Systems (AAPHO/IDS) and Tyler & Company, takes a closer look at the PHO and trends within the health care system. In examining contracting, enrollees, staff size and experience, compensation, incentives, and projected salary increase for CEOs, the survey found that the PHO is in the midst of transformation into an integrated delivery system. As physicians and hospitals form a team to deliver more efficient and cost-effective health care to patients, they are paving the way to the integrated delivery system. The survey also focuses on the details of the PHO and PHO executives, including an in-depth look at all aspects of compensation for the CEO.     

A future for the corporate planner?

Although not initiated by the event, it seems appropriate that this article is written on the tenth anniversary of the founding of The Society for Long Range Planning. It is entirely coincidental that Ansoff's book ‘Corporate Strategy’, which has evolved into the standard work on corporate planning, also appeared about a decade ago. This fortuitous coincidence has been further emphasized by the recent publication of another book from the same authority which introduces an entirely new factor into the future prospects for corporate planners. An attempt is made here to assess its implications.     

Accounting,economics and management—Some comments on accounting as an economic yardstick for management

Accounting, economics and management have an important role in business education but the theories have a poor standing in the business world.Researchers often cannot test theories in real life. Instead, however, they can look at management at all levels as an experimenting change agent in urgent need of scientifically valid and reliable predictions and feedback. Accounting as the measurement technique for economic transactions has to adapt to that need.Many conflicts on analytical techniques and evaluations for management purposes are still to be solved. The measurements must not only cover the consequences of decisions at large but also explain the consequences with regard to multi-goal attainment, survival risks, revenue effects, managerial incentives and responsibility etc.     

Twice as Smart? The Importance of Managers’ Formative‐Years’ International Experience for their International Orientation and Foreign Acquisition Decisions

This study examined how top management team's (TMT) international orientation influences perceptions of environmental uncertainty and how these perceptions impact international strategic decisions, in particular regarding ownership stakes taken in foreign acquisitions. We highlighted the need for the concept of TMT international orientation to encompass executives’ formative‐years’ international experiences along with their international career experiences and nationalities. Empirical tests based on a sample of 2122 international acquisitions completed by 561 UK firms over the period 1999–2008 showed that TMT international orientation positively moderated the negative impact of cultural differences and host country risk on acquisition ownership stakes. The results underscored the importance of considering decision‐makers’ attributes due to their experiences at a young age, beyond their demographic characteristics or professional experience, in the context of international strategic choices. We also discussed some implications of one of the possible consequences of executives’ formative international experience, namely biculturalism, for international business.     

Transformations and Legitimacy in Nonprofit Organizations—The Case of Amnesty International and the Brutalization Thesis

This paper looks at organizational change in voluntary nonprofit organizations. Their 'purposive' nature makes voluntary organizations difficult to change while their tendency to oligarchic control results in this change often being imposed from the top. Amnesty International's death penalty work demonstrates the complexity of organizational change, as well as the accountability for and the legitimacy of change in nonprofits. Legitimacy should not be equated with organizational strength, and will remain subject to shifting, contested social norms concerning standards of behavior.