GROUP INEQUALITY

We explore the combined effect of segregation in social networks, peer effects, and the relative size of a historically disadvantaged group on the incentives to invest in market‐rewarded skills and the dynamics of inequality between social groups. We identify conditions under which group inequality will persist in the absence of differences in ability, credit constraints, or labor market discrimination. Under these conditions, group inequality may be amplified even if initial group differences are negligible. Increases in social integration may destabilize an unequal state and make group equality possible, but the distributional and human capital effects of this depend on the demographic composition of the population. When the size of the initially disadvantaged group is sufficiently small, integration can lower the long‐run costs of human capital investment in both groups and result in an increase the aggregate skill share. In contrast, when the initially disadvantaged group is large, integration can induce a fall in the aggregate skill share as the costs of human capital investment rise in both groups. We consider applications to concrete cases and policy implications.     

How does decision-making involvement affect perceptions of speed during post-merger integration?

This article offers an empirical demonstration of how different employees perceive the speed of change during the post-merger integration (PMI) process. As such, it adds to the growing body of literature on the speed of integration in the aftermath of a merger or acquisition (M&A). It broadens our understanding of the M&A integration process as it goes beyond binary recommendations of ‘fast’ or ‘slow’ integration by highlighting the relationship between an employee's involvement in the decision-making process and their perception of the speed of change.We conducted a multi-level longitudinal study over a two-and-a-half-year period. Our qualitative research on two not-for-profit, higher education institutions, employed multiple sources of process data. Building from this, our article thus provides not only novel theoretical insights into the PMI process, but equally offers valuable managerial advice on how staff morale, turnover and change resistance might be more efficiently managed during PMI.     

Organizational Identification During a Merger: Determinants of Employees' Expected Identification With the New Organization*

In order to investigate the development of organizational identification during a merger, a quasi‐experimental case study was conducted on a pending merger of police organizations. The research was conducted among employees who would be directly involved in the merger and among indirectly involved employees. In contrast to earlier studies, organizational identification was measured as the expected identification prior to the merger. Five determinants were used to explain the employees' expected identification: (a) identification with the pre‐merger organization, (b) sense of continuity, (c) expected utility of the merger, (d) communication climate before the merger and (e) communication about the merger. The five determinants appeared to explain a considerable proportion of the variance of expected organizational identification. Results suggest that in order to obtain a strong identification with the soon‐to‐be‐merged organization, managers should pay extra attention to current departments with weaker social bonds as these are expected to identify the least with the new organization. The role of the communication variables differed between the two employee groups: communication about the merger only contributed to the organizational identification of directly involved employees; and communication climate only affected the identification of indirectly involved employees.     

Working Under a Black Cloud: How to Sustain Organizational Identification after a Merger*

This article argues against the merger folklore that maintains that a merger negatively affects well‐being and work attitudes primarily through the threat of job insecurity. We hold that the workplace is not only a resource for fulfilling a person's financial needs, but that it is an important component of the self‐concept in terms of identification with the organization, as explained by social identity theory. We unravel the key concepts of the social identity approach relevant to the analysis of mergers and review evidence from previous studies. Then, we present a study conducted during a merger to substantiate our ideas about the effects of post‐merger organizational identification above and beyond the effects of perceived job insecurity. We recommend that managers should account for these psychological effects through the provision of continuity and specific types of communication.     

跨国并购中文化整合的流程设计与模式选择

企业在跨国并购活动中,面临着民族文化与企业文化双重差异的影响和挑战.能否做好文化的整合与创新,直接关系到跨国并购的成败.本文试就文化整合与跨国并购的关系、文化整合的流程设计、模式选择等问题进行探讨,以期对我国企业的跨国并购实践有所启示.     

THE EQUALITY MULTIPLIER: HOW WAGE COMPRESSION AND WELFARE EMPOWERMENT INTERACT

We explore how more wage equality fuels the generosity of the welfare state via political competition in elections, and how a more generous welfare state fuels wage equality via empowerment of weak groups in the labor market. Together the two mechanisms may generate a cumulative process that explains how equality multiplies, and why countries with more equal distributions of market outcomes also have stronger welfare states. The complementarity between wage setting and welfare spending can explain why almost equally rich countries differ so much in economic and social equality among their citizens. (JEL: H53, I31, J31)     

The Benefits and Pitfalls of Social Capital: Empirical Evidence from Two Organizations in the United Kingdom *

Recently, there has been a shift in the way management scholars view the firm, from traditional models that are based on ideas of opportunism and market failure to newer knowledge‐based theories that argue for a more socialized perspective. One of the key components of these theories is the notion of social capital. Social capital is the set of resources that accrue to an individual or group by virtue of their social connections. As such, it is a resource that is jointly owned. Most recent research adopts a more‐is‐better approach to social capital, suggesting that individuals with larger quantity of ties derive more positive benefits. However in this paper, we argue that using social capital has both benefits and drawbacks for organizations, and that these positive and negative aspects of social capital occur simultaneously. To substantiate our claim, we use data collected from sets of interviews with senior and middle managers in two organizations in the United Kingdom. Our findings indicate that while social capital has many beneficial effects with respect to information access and retrieval, community building, and underlying group norms, there are also a number of less‐beneficial aspects, which are under‐explored in the current empirical literature. Furthermore, we suggest that organizations must develop an understanding of the bridging and bonding elements of social capital, as these are critical for its implementation. Implications of the research findings and future research directions are discussed.     

Resist or Comply: The Power Dynamics of Organizational Routines during Mergers

The role of power and agency in the development of organizational routines is under‐theorized. In this paper, we draw on an in‐depth qualitative case study of a merger between two academic institutions, a college of art and a university, and examine the diverging responses of two organizational routines (admissions and budgeting) during the course of the merger to understand how power dynamics contribute to resistance/compliance of routines. Our findings suggest that the differences in routines’ responses to a merger initiative can be explained by applying Bourdieu's theory of practice and by employing the concepts of field and symbolic capital to unpack power relations in the context of organizational routines, and to disclose why some routine participants can exercise their agency while others cannot. We find that (a) the field within which a routine operates and (b) the actors’ symbolic capital and position‐taking during change implementation shape routines’ responses to organizational change initiatives.     

The Influence of Context on the Strategic Decision‐Making Process: A Review of the Literature

This paper critically reviews the strategic decision‐making process literature, with a specific focus on the effects of context. Context refers to the top management team, strategic decision‐specific characteristics, the external environment and firm characteristics. This literature review also develops an illustrative framework that incorporates these four different categories of contextual variables that influence the strategic decision‐making process. As a result of the variety and pervasiveness of contextual variables featured within the literature, a comprehensive and up‐to‐date review is essential for organizing and synthesizing the extant literature to explicate an agenda for future research. The purpose of this literature review is threefold: first, to critically review the strategic decision‐making process literature to highlight the underlying themes, issues, tensions and debates in the field; second, to identify the opportunities for future theory development; and third, to state the methodological implications arising from this review.     

Conditions of Radical Transformation in State‐Owned Enterprises*

This study analyses the key contributors to radical organizational change in five New Zealand state‐owned enterprises during their ownership transition between 1985 and 1995. Abrupt government reform policies, organizations' market positions, realization of rapid technological innovation, proactive managerial actions and the new owners' strategic intent are established as key conditions of radical change in state‐owned enterprises. We integrate our findings with institutional theory and resource dependency theory to argue that organizational dynamics in times of uncertainty depend on de‐institutionalization of old and institutionalization of new patterns of resource dependency.     

The Effect of Learning and Integration Investment on Manufacturing Outsourcing Decisions: A Game Theoretic Approach

We introduce a two‐period Stackelberg game of a supplier and buyer. We recognize that learning from manufacturing experience has many advantages. Consistent with the literature, we assume both the buyer and supplier realize reductions in their respective production costs in period 2 due to volume‐based learning from period 1 production. In addition, we introduce another learning concept, the future value, to capture the buyer's benefits of transferring current manufacturing experience for the design and development of future products and technologies. In contrast to the literature, we allow the supplier two mechanisms to impact the buyer's outsourcing decision: price and the investment in integration process improvement (IPI) that reduces the buyer's unit cost of integration. IPI may include the investment in new materials, specialized technology, or the re‐design of the integration process. Conditions are given whereby the buyer partially outsources component demand as opposed to fully outsourcing or fully producing in‐house. Furthermore, conditions are given characterizing when the supplier's price and investment in IPI are substitute strategies versus complements. Both analytic and numerical results are presented.     

The Impact of Leadership and Change Management Strategy on Organizational Culture and Individual Acceptance of Change during a Merger

This article reports a longitudinal study that examined mergers between three large multi‐site public‐sector organizations. Both qualitative and quantitative methods of analysis are used to examine the effect of leadership and change management strategies on acceptance of cultural change by individuals. Findings indicate that in many cases the change that occurs as a result of a merger is imposed on the leaders themselves, and it is often the pace of change that inhibits the successful re‐engineering of the culture. In this respect, the success or otherwise of any merger hinges on individual perceptions about the manner in which the process is handled and the direction in which the culture is moved. Communication and a transparent change process are important, as this will often determine not only how a leader will be regarded, but who will be regarded as a leader. Leaders need to be competent and trained in the process of transforming organizations to ensure that individuals within the organization accept the changes prompted by a merger.     

国有企业内部收入分配公平性研究——基于M公司的案例研究

国有企业内部收入分配是否公平是一个客观现实问题,至今没有给出一个令人信服的答案。本文采用案例研究方法,通过调查和数据收集,分别从薪酬程序的制定、委托代理理论、企业公平理论和社会公平理论的角度,考察国有M公司内部收入分配的公平性问题。从研究结果来看,公司内部薪酬制定程序不公平,企业的收入分配集中于公司管理人员、特别是高层管理人员,管理人员的收入既与企业业绩无关,也与其投入不相称,并且这种分配差距已经到达了社会收入分配的警戒线。本案例研究为判断目前国有企业收入分配和社会收入分配是否公平提供了微观基础。     

委托授权下企业横向兼并效应与激励机制研究

针对异质产品Cournot寡头竞争市场,研究两种不同委托授权下企业的横向兼并效应与内部激励机制调整问题.首先证明了无论企业采用何种类型委托授权模式都具有较大的横向兼并动机,且产品替代性程度越低,兼并动力越大,只是在分散委托授权模式下企业的兼并动机比集中委托授权模式稍弱一些.并且证明兼并企业采用分散委托授权模式时与采用集中委托授权模式时其经营者激励机制调整有明显不同,集中委托授权模式所采用的经营者激励机制其攻击性普遍增强,而分散委托授权模式所采用的经营者激励机制其攻击性普遍减弱,但未兼并企业所采用的经营者激励机制其攻击性总是随兼并规模的增大而增加.     

Returns to Education during the Reform of State‐owned Enterprises in Hunan,People’s Republic of China

The objective of this paper is to analyse the impact of education on personal earnings during the reform of state‐owned enterprises, comparing 1995 with 1998 in Hunan, China, using the Mincerian earnings equation method. The results show that the rates of return to education increased, indicating that human capital has been better rewarded as the reforms of the Chinese economic structure have progressed. Moreover, the findings show that primary education receives the highest returns, followed by tertiary education. Middle school education obtains the lowest rewards, reflecting the effects of the reform of state‐owned enterprises on middle school graduates on whom the unemployment impact of this change has been the greatest.     

Recalibrating Management: Feminist Activism to Achieve Equality in an Evolving University

In this paper we examine the process of incorporating gender equality into a higher education institution as it evolves into a managerial university. The case illustrates the ongoing processes between structure, activism and features of gender equality, and provides insights into how activists adapt to changes in governance and influence managerial responses to equality. Tracing the interaction of employee activism with new managerialism over nearly two decades, four phases of change are identified. These provide a basis for generating two concepts – managerial recalibration and individual activism – while challenging the social abeyance hypothesis of social movements.     

8 Organizations and Management in China

Abstract

China’s economic transition and its integration into the global economy have been widely recognized as among the most important social changes in the past three decades. This transformation has attracted scholarly attention from multiple disciplines, and sociologists have made particularly important contributions to literature emphasizing theories of organizations, organizational change, and management practice. In this article, we present a critical review of the state of sociological literature on organization and management issues in the transition process. We focus on studies that explore how organizations shaped the trajectory of China’s economic transition, how organizations affect important social and economic outcomes during transition, and the unique challenges that managers face in China’s transition context. We conclude with suggestions for resolving central debates and future research directions.     

Impact of Information Technology Integration and Lean/Just‐In‐Time Practices on Lead‐Time Performance*

Managers seeking to improve lead‐time performance are challenged by how to balance resources and investments between process improvement achieved through lean/just‐in‐time (JIT) practices and information technology (IT) deployment. However, extant literature provides little guidance on this question. Motivated by both practical importance and lack of academic research, this article examines empirically the relationships among interfirm IT integration, intrafirm IT integration, lean/JIT practices, and lead‐time performance using data from IndustryWeek's Census of Manufacturers ( IndustryWeek, 2006 ). The results provide several new insights on the relationship between IT integration and lean/JIT practices. First, the study confirms that implementing lean/JIT practices significantly reduces lead time. Second, lean/JIT practices mediate the influence of IT integration on lead‐time performance. This suggests that process improvements that result from lean/JIT practices are important contributors to the success of IT integration. Even companies that have experienced success in reducing lead time through lean/JIT practices may benefit from IT integration practices such as those embodied in enterprise resource planning systems. The findings provide managers with empirical evidence and a theoretical framework on the balance between lean/JIT and IT for effecting improvement in lead‐time performance, thus offering practical guidance on this important question. Future research is needed to extend the lean/JIT practices in this study to supply chain practices and explore the relationship between supply chain practices and IT integration.     

Confidentiality Constraints Within Mergers and Acquisitions: Gaining Insights Through a ‘Bubble’ Metaphor*

Mergers and acquisitions are extremely sensitive, both within and outside the organizations involved. Confidentiality agreements are therefore essential for allowing teams the ‘space’ to develop potential scenarios for future integration. Despite the importance of confidentiality in practice, the subject has received little coverage in the management literature. By adopting a case‐study approach, this research explores aspects of confidentiality in a four‐year post‐acquisition integration programme in a FTSE100 pharmaceutical company. The paper identifies a range of personal impacts on the signatories, as well as various dimensions of information transfer despite the agreement being in place. Through the use of a metaphor, the research suggests that a confidentiality agreement has many similarities with the properties and characteristics of a bubble. This bubble trope is used to enhance conceptual understanding of confidentiality constraints in an organizational‐change context. The paper concludes by suggesting some ‘key learnings’ in relation to using confidentiality agreements in strategic change programmes such as a merger or acquisition.     

Manufacturing Practices and Strategy Integration: Effects on Cost Efficiency,Flexibility, and Market‐Based Performance

Manufacturing plant managers have sought performance improvements through implementing best practices discussed in World Class Manufacturing literature. However, our collective understanding of linkages between practices and performance remains incomplete. This study seeks a more complete theory, advancing the idea that strategy integration and enhanced manufacturing capabilities such as cost efficiency and flexibility serve as intermediaries by which practices affect performance. Hypotheses related to this thesis are tested using data from 57 North American manufacturing plants that are past winners and finalists in Industry Week's“America's Best” competition ( Drickhamer, 2001 ). The results suggest that strategy integration plays a strong, central role in the creation of manufacturing cost efficiency and new product flexibility capabilities. Furthermore, strategy integration moderates the influences of product‐process development, supplier relationship management, workforce development, just‐in‐time flow, and process quality management practices on certain manufacturing capabilities. In turn, manufacturing cost efficiency and new product flexibility capabilities mediate the influence of strategy integration on market‐based performance. These findings have implications for practice and for future research.