The UK research assessment exercise

Abstract

This article examines and critiques the UK research assessment exercise (RAE) and its implications for research and writing in HRD. It describes the process and identifies weaknesses in some of the concepts and related criteria applied in assessing and grading research outputs and in particular the notions of ‘international’ and ‘world class’ as standards against which to judge those outputs. The article argues that the process has detrimental effects for emerging subjects such as HRD, for those engaged in research in such subjects and for journals such as HRDI which are relatively new to business and management. It concludes that UK academics working in the field of HRD are mistaken if they allow the RAE to drive their research and choice of publications and outlets, and that it is important to support the journals which are playing a critical role in establishing the subject.     

Business models as a basis for regulation of financial reporting

The paper observes that the term ‘business model’ has been incorporated in recent financial reporting regulations. The first section of the paper describes various meanings of ‘business model’ and demonstrates that the term has no settled or agreed meaning. The second part of the paper considers the suitability of the term ‘business model’ as a basis for a measurement standard (IFRS 9) or for requirements for narrative reporting and concludes it is not suitable for either purpose. Examples from the UK FTSE 100 index companies are used to illustrate existing usage in narrative reporting, finding varying levels of informativeness of disclosures about business models. The final part of the paper discusses reasons for incorporating an ambiguous and contested term in reporting guidance. It identifies parallels with ambiguity in other branches of financial reporting and the potential utility of ambiguity in allowing consensus to be arrived at on a form of words, apparently tightening up reporting regulation, while allowing participants ‘wiggle room’.     

Understanding platform business models: A mixed methods study of marketplaces

Recent technological advances have enabled the emergence of novel business models based on digital platforms. Marketplace like Airbnb or Uber offer such digital platforms to connect previously unmatched demand-side and supply-side participants through innovative forms of value creation, delivery and capture. While countless firms claim to offer the next ‘Airbnb for X’ or ‘Uber for Y’, we lack knowledge about the defining business model characteristics of these marketplaces. To close the gap, this paper provides a conceptually and empirically grounded taxonomy of their business models. Applying a mixed methods approach, it first develops an integrative framework of marketplace business models. Guided by the framework, the research systematically analyzes 100 randomly selected marketplaces with content analysis and binary coding. The gathered data is analyzed with cluster analysis techniques to develop a taxonomy for marketplace business models. The clustering process reveals six clearly distinguishable types of marketplace business models and thus shows that there is no one-size-fits-all approach to creating, delivering, and capturing value with marketplaces and platforms in general. We characterize these distinctive types on basis of the qualitative and quantitative findings. Among others, we find that two of these types are highly aligned with business model characteristics associated with the so-called sharing economy. The findings are discussed against platform, marketplace, and sharing economy literature to contribute to a higher integration of different literature streams that are concerned with similar organizational types and phenomena.     

Conflict of values— the central strategy problem

There is growing evidence that the central strategy question for business is no longer ‘what business are you in?’ but‘why are you in business?’ The traditional answers to this question—‘to make profits’, ‘to grow’ and ‘to give an adequate return to the shareholder’, are all being questioned. In their place others are being suggested—‘to provide satisfying jobs’, ‘to help solve social problems’, ‘to assist in urban and regional development’.In this article, Bernard Taylor suggests that the conflict between business goals and social goals has become the central strategy problem. Business enterprises like other organizations tend to develop their own distinctive sub-cultures with their own value systems which may differ markedly from the values accepted in society generally. The more effective the selection, training and reward systems, the more these business values will be reinforced.But this can lead to difficulties when society begins to reject business values in favour of other social goals; particularly at a time when the power and autonomy of management is being challenged and Corporate Planning is being transformed from an internal dialogue between managers at headquarters and managers in divisions into an open debate involving public servants, employees and self-appointed representatives of community interests.     

Promoting Scholarship that Matters: The Uselessness of Useful Research and the Usefulness of Useless Research

Our ambition in this essay is to challenge received wisdoms about the importance of ‘useful’ management scholarship. Suggesting that usefulness and uselessness are contingent on issues of temporality and power, we advocate caution in assigning terms such as useful and relevant – they are inherently problematic, we argue, and should be viewed more as ideology than as empirical statements. We conclude by a call for reflexivity about what it is we are doing when we do ‘useful’ research, along with a greater concern for the values for which business schools stand.     

Formal planning in major U.S. corporations

As the world about us changes, managers in all types of institutions try to cope in a variety of ways. In the early 1960s, many corporate managers realized they could not make sound decisions about future business activities in an expedient, reactive manner because their firms were growing very large and complex with new technologies, products, markets and competition to deal with. As a result, formal planning techniques which had been used in narrow functional applications were introduced on a much broader scale and formal long-range planning became popular. New corporate planning functions appeared in many companies, as well as new staff planning specialists and planning executives. The author conducted a field study on the design of these systems in the mid-1960s and he argues that they showed great promise for improved management.With this history in mind, we might ask why such subjects as ‘planning techniques’ and ‘problems of implementation’ are still topics of concern. It would seem that such techniques would be well known and established in most firms after 10–15 years. However, this is not the case, for during a second field study of corporate planning systems which was completed in 1976 the author found that many corporations, including some of the largest ones, had redesigned their planning systems in the early 1970s, essentially making a fresh start at formal long-range planning. (See Table 1).From his recent field study the author concludes that all corporations experience problems in implementing and using a formal planning system. The nature of these problems and some possible remedies are the subjects upon which this article focuses.     

A Multi‐level Dialectical–Paradox Lens for Top Management Team Strategic Decision‐Making in a Corporate Venture

This paper aims to critique the process of corporate‐owned, high‐tech start‐up strategizing through an inductive, longitudinal, case study of ‘UK‐Research‐Tech’. Insights are given through the combined ‘dialectical–paradox’ concept, thereby focusing on where ‘dialectic’ and ‘paradox’ theorizing overlap. This linked iterative, ‘dialogical–dialectic’ research approach also reflects chief executive officer/top management team (CEO/TMT) start‐up dynamics over time. These foci fill important gaps that impede better understanding of dialectical, dialogical and paradoxical forces within strategic decision‐making. As an interpretative tool, they illuminate CEO/TMT strategizing and changing interrelationships affected by broader, volatile, techno‐economic contexts and parent‐company influences on ventures. In this case study, it was found that the CEO's relatively autocratic, parent‐framed approach combined with TMT members' contradictory reactions to create ‘dialectical–paradox’ oppositional forces, eventually only resolved through ‘eleventh hour’ business strategy changes to rescue the venture. This research contributes to more nuanced understandings of corporate‐constrained ventures during early business development from start‐up strategic decisions at parent‐company level to subsequent conditions of more independent dynamic equilibrium. The ‘dialectical–paradox’ conceptual lens contributes an innovative critique of processes affecting strategic decision‐making dynamics. Another important contribution is the empirically inspired conceptual model, developed for use both to guide subsequent case‐study research analyses and as a reflective tool for CEO/TMT strategic decision‐making, especially within corporate‐inspired start‐ups.     

Labour Market Flexibility,Human Resource Management and Corporate Performance

Labour market flexibility is often portrayed as a key to the competitive success of the UK and US economies. We surveyed several hundred firms in the UK, and using the resulting data (on over 200 manufacturing firms) this paper investigates the relationships between firms’ use of flexible work practices, human resource systems and industrial relations on the one hand, and corporate performance on the other hand. The results suggest that ‘low‐road’ practices – short‐term contracts, a lack of employer commitment to job security, low levels of training and low levels of human resource sophistication – are negatively correlated with corporate performance. In contrast, it is found that ‘high‐road’ work practices –‘high commitment’ organizations or ‘transformed’ workplaces – are positively correlated with good corporate performance. It is also found that human resource management practices are more likely to contribute to competitive success where they are introduced as a comprehensive package, or ‘bundle’ of practices. Significant interaction effects between human resource systems, trade unions and flexible work practices add further support to the bundling hypothesis.     

Accountability lost: the rise and fall of double entry

This paper discusses the need for modern accounting systems to meet the criteria of both ‘accountability’ and ‘usefulness’ and argues that the traditional double entry book keeping system serves as a constraint on the achievement of system usefulness. We look at the problems associated with the double entry book keeping system and argue for its replacement with an events accounting system (EAS) model which is more appropriate to current business requirements. We also consider the need to extend the EAS model to more adequately meet the criterion of system usefulness. It is suggested that the integration of an EAS approach with that of a strategic information systems planning approach, facilitates the meeting of this objective.     

The choice of a forecasting model

The major purpose of studies of forecasting accuracy is to help forecasters select the ‘best’ forecasting method. This paper examines accuracy studies in particular that of Makridakis et al. [20] with a view to establishing how they contribute to model choice. It is concluded that they affect the screening that most forecasters go through in selecting a range of methods to analyze—in Bayesian terms they are a major determinant of ‘prior knowledge’. This general conclusion is illustrated in the specific case of the Makridakis Competition (M-Competition). A survey of expert forecasters was made in both the UK and US. The respondents were asked about their familiarity with eight methods of univariate time series forecasting, and their perceived accuracy in three different forecasting situations. The results, similar for both the UK and US, were that the forecasters were relatively familiar with all the techniques included except Holt-Winters and Bayesian. For short horizons Box-Jenkins was seen as most accurate while trend curves was perceived as most suitable for the long horizons. These results are contrasted with those of the M-Competition, and conclusions drawn on how the results of the M-Competition should influence model screening and model choice.     

Making and Mending your Nets: Managing Relevance, Participation and Uncertainty in Academic–Practitioner Knowledge Networks

Making and mending your nets is concerned to examine, from an actor–network theory perspective, how the relevance debate concerning research and teaching is a significant non‐human actor in the development and management of industry–academic networks associated with UK business schools. By significant, we do not imply the most important because it is only one of many human and non‐human actors that may arouse interest, be problematized, enrolled and/or mobilized for such networks to become ‘obligatory passage points’ and ultimately irreversible collective assemblies. The paper then utilizes actor–network theory as a framework for examining our primary empirical research on academic–practitioner knowledge networks – nets that require a continuous making and mending in managing relevance, participation and uncertainty. We argue that the actor–network framework is more compatible than alternative knowledge diffusion or transfer models with the data we have collected on academic–practitioner knowledge networks in the UK. In accounting for the dynamic instability and precariousness of knowledge networks, it avoids raising false expectations about business knowledge and its relevance or effectiveness. If knowledge in the physical sciences and engineering unfolds slowly and unevenly in the face of many disputes, disruptions and setbacks, as actor–network theory has claimed, then how much more likely is this to be the case in the social sciences? Consequently there should be no expectations of one‐to‐one, direct causal chains between knowledge production and application, as some business school critics seemingly demand.     

Reframing Relevance as ‘Social Usefulness’: A Comment on Hodgkinson and Starkey's ‘Not Simply Returning to the Same Answer Over and Over Again’

This is a commentary on Hodgkinson and Starkey's (British Journal of Management, 22 (2011), pp. 355–369) proposal to reframe the relevance of business and management research by combining design science with critical realism. Their proposal is welcomed for its advocacy of a ‘social usefulness’ agenda and for commending the insights of the social sciences, rather than emulating a professional (e.g. medical school) model. However, the advocacy of critical realism is not consistent with the commended conception of design science; and it also risks devaluing the contribution of other progressive, emancipation‐oriented approaches to research. Despite substituting ‘social usefulness’ for ‘relevance’, Hodgkinson and Starkey's proposal does not challenge the established, comparatively narrow, research agenda. The counterproposal prioritizes a conception of relevance/social usefulness that broadens what is studied by business school researchers as well as changing how established topics are researched.     

Designing computer models that work

The techniques of financial modelling are becoming more popular and accepted as a useful information processing tool. However, what is ‘financial modelling’ and does the term adequately describe current applications? Why has financial modelling been such a growth area and what are the benefits? Given a desire to build models, where does the manager begin? What type of system and language should be used and by whom? What type of computing facility is most suitable? Which modelling system should be selected and what features are important? As well as an increase in the number of financial modelling applications they are now more complex. What guidelines can one use when designing large and complex models? This article seeks to answer these questions, concentrating on the large and more complex models, particularly for long term planning and budgeting applications. Finally an example is given illustrating how a large modelling system can be constructed and maintained with little technical computer expertise.     

Gay Male Academics in UK Business and Management Schools: Negotiating Heteronormativities in Everyday Work Life

This paper contributes to a neglected topic area about lesbian, gay, bisexual and trans people's employment experiences in UK business and management schools. Drawing on queer theory to problematize essentialist notions of sexuality, we explore how gay male academics negotiate and challenge discourses of heteronormativity within different work contexts. Using in‐depth interview data, the paper shows that gay male academics are continually constrained by heteronormativity in constructing viable subject positions as ‘normal’, often having to reproduce heteronormative values that squeeze opportunities for generating non‐heteronormative ‘queer’ sexualities, identities and selves. Constructing a presence as an openly gay academic can invoke another binary through which identities are (re)constructed: as either ‘gay’ (a cleaned up version of gay male sexuality that sustains a heteronormative moral order) or ‘queer’ (cast as radical, disruptive and sexually promiscuous). Data also reveal how gay men challenge organizational heteronormativities through teaching and research activities, producing reverse discourses and creating alternative knowledge/power regimes, despite institutional barriers and risks of perpetuating heteronormative binaries and constructs. Study findings call for pedagogical and research practices that ‘queer’ (rupture, destabilize, disrupt) management knowledge and the heterosexual/homosexual binary, enabling non‐heteronormative voices, perspectives, identities and ways of relating to emerge in queer(er) business and management schools.     

Bridging,bonding and linking global entrepreneurs: the case of Sri Lanka

The purpose of this study is to understand the dynamics and the nature of successful international business relationships between Sri Lankan small business (SB) entrepreneurs and Sri Lankan emigrants in other countries. Using social capital and social network theory framework, this phenomenological study found the nature and underlying values of business relationships that glue Sri Lankan SB entrepreneurs and their emigrant counterparts. ‘Family-like relationships’ and embedded values lead to developing trusting partnerships that became the sources of augmenting knowledge, resources and internationalization of Sri Lankan SBs. The findings will be useful for international human resource development (IHRD) practitioners to develop training interventions to promote SB internationalization. The implications for IHRD practice and research are discussed. It is important for IHRD scholars to conduct in-depth qualitative research to gain a deeper understanding of hidden values and practices of various SB communities whereas practitioners can initiate actions to develop global SBs.     

Criteria for the selection of reporting method

Identification of optimal reporting method by analysis requires that a criterion be available for selecting those ‘best’ practices which are to act as the norms for standardisation. ‘Predictive ability’ has been suggested as such a criterion. This article argues that ‘predictive ability’ should be rejected in favour of an overriding economic criterion for the design of reporting methods and information systems. An information system is only valuable as part of a wider system. This article proposes that the wider system in which we are interested must be ‘more valuable’ in contemplation of change than without it, if changes in information systems are to be justified.     

Searching for innovation: Product,process, and business model innovations and search behavior in established firms

Prior research indicates that search practices are an important part of the innovation process. But where established firms search for different innovation types is not clear. Drawing on knowledge-based theory of innovation and using state-of-the-art statistical techniques (copula with Bayesian inference), we find that established firms predominantly rely on several external sources (broad external search) when introducing new business models, on internal and external sources with high intensity (deep search) when innovating processes, and on broad and deep external search when innovating products. We explain that broad external search is important for business model innovation (BMI) because increased exploration is needed when introducing new business models that rely on general rather than specialized technical or tacit business knowledge. We contribute to the innovation and business model literatures by nuancing the differences between innovation types (BMI, product, and process innovation) and the associated search behavior. It is important to consider these differences because they give us clues to understand how established firms can explore unfamiliar territories through BMI.