Old and New Organizational Cages. What about Autonomy and Freedom?

The discourses on the so-called “post-bureaucracy” emphasizes the importance of autonomy and freedom in present-day organizations. Yet, differently to the discourses, the practices are not univocal and there is a mix of continuity and transformation to be investigated. The article addresses these issues aiming to understand if and how organizational cages are changing, in particular in the public sector. After discussing the issues of autonomy and freedom in the contemporary organizations, the analysis focuses on the New Public Management in Italy on the basis of a case study. The research highlights the role of institutional and social resources that mediate freedom and autonomy.     

Nature or Nurture? Learning and the Geography of Female Labor Force Participation

One of the most dramatic economic transformations of the past century has been the entry of women into the labor force. While many theories explain why this change took place, we investigate the process of transition itself. We argue that local information transmission generates changes in participation that are geographically heterogeneous, locally correlated, and smooth in the aggregate, just like those observed in our data. In our model, women learn about the effects of maternal employment on children by observing nearby employed women. When few women participate in the labor force, data are scarce and participation rises slowly. As information accumulates in some regions, the effects of maternal employment become less uncertain and more women in that region participate. Learning accelerates, labor force participation rises faster, and regional participation rates diverge. Eventually, information diffuses throughout the economy, beliefs converge to the truth, participation flattens out, and regions become more similar again. To investigate the empirical relevance of our theory, we use a new county‐level data set to compare our calibrated model to the time series and geographic patterns of participation.     

Connecting the Dots: Do Financial Analysts Help Corporate Boards Improve Corporate Social Responsibility?

This paper presents an examination of the joint impact of board structural elements at firm level and financial analysts as market-level corporate governance (CG) on corporate social responsibility (CSR) performance. Our study contributes to the CG–CSR literature by adopting the bundling approach, a perspective that has recently attracted researchers’ attention as an answer to any heterogeneity and fragmentation in existing findings. It is based on an extensive sample consisting of 7,739 firm-year observations of US firms for the 2006–2015 period. The findings suggest that financial analysts complement the corporate board with more independence, gender diversity and a specialized CSR committee to realize a certain level of CSR performance of a firm. The findings also indicate that analysts substitute for those internal governance factors that are associated with weaker boards – larger sizes and dual-role CEOs. We also draw implications for research and practice from our findings.     

Global Financial Crisis, Public Administration and Governance: Do New Problems Require New Solutions?

A financial crisis, or any crisis, is likely to produce a variety of responses from governments. This article discusses the range of responses that may be possible, pointing out that diametrically opposite answers may be made to the common problem. The analysis points to the persistence of many dichotomies in our thinking about public administration and public policy. These varied responses to crises are investigated in several political systems including the Baltic States and the European Union.     

Does a Store Brand Always Hurt the Manufacturer of a Competing National Brand?

It is generally believed that store brands hurt the manufacturers of competing national brands while benefiting retailers. In this study, we challenge this notion by studying the impacts of a store brand when it is introduced by a power retailer. We show that a store brand may benefit the manufacturer when the interaction between the manufacturer and retailer is modeled as a retailer‐led Stackelberg game. This phenomenon occurs because the store brand changes the nature of the strategic interaction between the manufacturer and retailer in our model. In particular, while the interaction is always vertical strategic substitutability without a store brand, it may become vertical strategic independence with one. With the store brand, the demand for the national brand becomes larger, and the wholesale price for the national brand may increase, both of which benefit the manufacturer. Finally, the store brand may lessen the double marginalization problem of the supply chain for the national brand in the retailer‐led Stackelberg game, but does so in an unconventional way: The reduction in the double marginalization effect may come from a lowered retail markup instead of a lowered wholesale price. Our results reconcile some discrepancies between theoretical predictions and empirical findings regarding the impacts of store brands on manufacturers.     

The More You Give,the More You Get? The Impact of Corporate Political Activity on the Value of Government Contracts

Firms have been relying on corporate political activity (CPA) to achieve access and to affect public policy change for decades. Most research on CPA and public policy outcomes has implicitly assumed that access afforded by CPA results in an either‐ or (dichotomous) policy outcome such as votes or election outcomes. Based on recent research on how CPA can be a strategic signal to government agencies, however, it is possible that CPA may in fact, have a linear association with public policy outcomes as opposed to merely a dichotomous one, and we explore this relationship in the unique public policy context of government contract awards. We specifically analyze how higher levels of CPA impact the financial value of government contracts awarded to firms. Utilizing the S&P 1500 sample for 16 years (1997–2012) we find that CPA has a one to one association with the value of contract awards, indicating that CPA and public policy outcomes can be linked in ways that motivate firms to continuously invest in CPA, to maximize their political rents. We discuss the theoretical and practical implications of this finding in light of extant research on CPA and its direct impact on public policy outcomes.     

Evaluating the Evaluators: Should Investors Trust Corporate Governance Metrics Ratings?

Companies are under increasing pressure to have their corporate governance rated by an independent corporate governance metrics firm, such as Institutional Shareholder Services (ISS) or Governance Metrics International (GMI). These rating firms claim to be able to determine how effective and responsive a company’s board is. Institutional investors have begun using these board governance ratings when deciding which firms to include in their stock portfolios. This paper considers whether investors, many of whom claim to be socially responsible, should be relying upon board governance metrics. We find that these metrics are not good indicators of either the quality of a firm’s earnings or of its ethics.     

Corporate social responsibility and corporate governance in Italian SMEs: the experience of some “spirited businesses”

The study proposes to individuate the relationship between social engagement, social statements and governance of SMEs. Does an adhesion to the philosophy and to the practices of CSR, which are reflected in a firm’s mission and accountability, positively influences its governance? If so, is this influence more or less significant for SMEs with respect to large-sized firms? This paper winds itself around these questions and describes the principle findings that have emerged from a qualitative investigation focused on a selected group of “cohesive” Italian SMEs, in which their management complies with both economic and social issues. The empirical study finds that the diffusion of CSR is tied above all to the entrepreneur’s values and orientation and to the company embeddedness to the local socio-economic environment. The concluding reflections trace the features of a territorial model of socially responsible orientation centered on the best practices of SMEs who are excellent examples of “spirited businesses” and are part of a network (which includes institutions, trade associations, non-profit organizations, etc.) that contributes to the diffusion of an orientation towards CSR and to sustainability across the territory.     

Product Modularity,Process Modularity,and New Product Introduction Performance: Does Complexity Matter?

Modularity has the potential to impact various facets of new product introduction performance including product development lead time, frequency of new product introduction, on time introduction and product innovation. The impact of modularity on new product introduction performance, however, may vary for different levels of product and process complexity. This study empirically investigates relationships between perceptual measures of product modularity, process modularity, and new product introduction performance and explores whether an objective product/process complexity measure moderates these relationships. Using survey‐based methodology we probe both manufacturers of technically simple products and technically complex products. Hierarchical regression models are used to test hypotheses concerning the main effects of product and process modularity and the effects of their interactions with complexity on new product introduction performance. The results show that the main effect of product modularity was positive and its interaction with complexity was disordinal and negative, suggesting that the positive effect of product modularity on new product introduction performance is dampened when complexity is high. For process modularity, only the interaction effect (positive) was statistically significant and it was also disordinal in nature. Thus, the effect of process modularity on new product introduction performance is heightened when complexity is high. The implications of these findings are discussed and more specific theoretical and managerial implications are delineated by examining the impacts of these main and interaction effects on individual measures of new product introduction performance (frequency of new product introduction, product development lead times, product innovation, and on‐time product launch).     

Lean Product Development: Nothing New Under the Sun?

The concept of lean product development has attracted the attention of many scholars since its inception in the 1990s derived from practices at Toyota Motor Company. Key to this approach to new product development (NPD) are a few methods derived from lean production as well as longer established practices such as concurrent engineering. This makes one wonder whether lean product development is a new practice, a new method or an encapsulation of already existing methods at the time; this quest for the roots and tenets of lean product development, also in comparison with other methods for NPD, is the focus of this paper. This journey takes this propositional paper not only to the roots of lean product development and the context of its era of conception, but also to what this concept adds to other extant methods for NPD. In particular, this comparison draws out that other methods are trying to achieve the same objectives: the creation of products and services with value to the customer, the reduction of time‐to‐market and the efficient use of resources. This inference implies that managers of new product (and service) development can choose from a wider pallet of methods and approaches to enhance the performance of R&D and to connect better to manufacturing (including supply chains). Inevitably, this has implications for research on (lean) product and service development; hence, this paper sets out a research agenda based on the deliberations and gaps that have been uncovered in the discourse.