Examining Organic and Mechanistic Structures: Do We Know as Much as We Thought?

Burns and Stalker's theory of organic/mechanistic structures (1961, The Management of Innovation. London: Tavistock) has been widely used. However, review of the empirical literature revealed inconsistencies in how the concepts have been operationalized. These inconsistencies may interfere with the ability to consolidate knowledge. This paper reviews the various ways in which researchers have operationalized the concepts, and summarizes the empirical findings derived from these operationalizations. In doing so, it highlights gaps and opportunities for future empirical and methodological work, suggesting the need to further our theoretical conceptualization of the concepts and to draw attention to Burns and Stalker's ( 1961 ) largely neglected corollary of the employee experience. As such, this review provides a road map for future exploration of the wide‐ranging implications associated with organic and mechanistic structures.     

Strategic planning as an organizational change process—Some guidelines from practice

Learning to cope with the problems and uncertainties created by today's changing business environment is a task which faces ever company. Coping with the challenge of change is not just a question of adapting or reacting to the changes, it may also involve taking new initiatives in relation to the environment itself in order to exploit the opportunities which exist.A company may need to make fundamental adjustments to its philosophy, strategies, organization and practices in order to meet the newer demands of the environment. A prime difficulty is that companies are rarely in a position to start from scratch, they have existing organizational arrangements, power distributions, well established strategies and vested interests all of which tend to resist any kind of change which is likely to upset the ‘status quo’. They also have to overcome outdated beliefs and norms if they are to progress.This article considers the use of a modified approach to strategic planning as a mechanism for helping a company to acquire the norms, organization and strategies needed to cope with today's business environment. It is based on experience gained in helping to re-organize business enterprises engaged in textiles, steel tube manufacture, light engineering, distribution (world wide) and vehicle sales and servicing and also the Government of Jersey, Channel Islands.     

Does shareholder protection affect the performance of analysts as a gatekeeper?

This paper investigates the effect of shareholder protection on analysts’ performance. The important corporate governance role analysts can play by monitoring management has largely been ignored in the literature. Using a newly constructed index, we are for the first time able to analyse how changes in shareholder protection over time affect analysts’ performance as a gatekeeper. We find that strengthened shareholder protection improves analysts’ performance as a gatekeeper, i.e. analysts’ ability to reduce information asymmetry improves with strengthened shareholder protection. However, we also find a substitution effect: Strengthened shareholder protection makes analysts’ services less valuable to investors, thereby leading to a reduction in the number of analysts following firms.     

Boards of Directors as Strategists in an Enacted World – The Danish Case

We argue that Boards of Directors of Danish companieshave been socially constructed as an importantdecision making body in the companies. Since 1974,employees have elected members to the Board ofDirectors. Today they can elect one third of the Boardmembers. In spite of this new composition of theBoard, it has emerged as a team that has been able toconvince the stakeholders, the press, and the publicabout its important standing in the management of thecompany.To understand this development we look at fourdifferent perspectives. (1) The changing businessenvironment that has framed the development:globalization, mergers and acquisitions, increasedcompetition, technological innovations, strategicalliances, political consumers, and ethical issues are factors that have been the motor for this change. (2)We use a radical social psychological version ofleadership theory (Meindl, 1993) to understand thesocial construction of the change of the role of theBoard of Directors that has occurred. We argue thatthe stakeholders and the society at large haveascribed importance and leadership to the Board, andthat it plays an important role as strategist in thecompanies. (3) We see the board as a theater ensemblestaging a performance for the audience (stakeholdersand the wider environment) using Erving Goffman's``Presentation of Self in Everyday Life' (1959) as atheoretical point of departure. From this point ofview, the role of the Board is to socialize newmembers, to maintain its unity, and to successfullyplay the role of strategists. (4) To understandstrategists you may understand the company and itsenvironment in either realist terms (objectiveenvironments) or in social constructivist terms(enacted environments) (Smircich and Stubbart, 1985). We adopt the enactment position.     

Leadership development as identity formation: middle managers’ leadership learning from MBA study

This article challenges often unquestioned understandings within human resource development (HRD) of leadership as comprising knowledge and skills and leadership development as involving the transfer of such knowledge and skills from formal interventions to workplace performance. Using the notions of leadership as identity and learning as a process of identity formation, the article reports qualitative research showing how a case-study group of middle managers in a sector of the economy undergoing unprecedented turbulence, UK local government, developed a sense of themselves as leaders and how a key HRD intervention, a corporate MBA, facilitated such identity development. In particular, the article uses situated learning theory to examine how informal communities of practice associated with Master of Business Administration (MBA) study provided a forum for identity building of equal developmental value to the formal MBA curriculum. The implications for future HRD research are established and suggestions made for the re-design of HRD interventions to best enable identity-work.     

Do performance and environmental conditions act as barriers for cross-border banking in Europe?

This paper attempts to analyse whether banking technology and environmental conditions act as barriers for the entry of foreign banks in each European banking industry. We evaluate how the efficiency score of a representative commercial bank of a given European country changes if it decides to move abroad. To carry out this analysis, we use a sample of 700 banks belonging to 11 European countries. Countries are paired and each couple is studied by using four DEA production frontiers. These frontiers allow us to measure the technological and environmental gaps between the two countries considered and, based on them, to predict the new efficiency score of the representative bank of a country that decides to operate in a different country. The results indicate, as expected, that being technologically advanced appears to be a significant deterrent to foreign competition, and that adverse environmental conditions constitute a real barrier for cross-border banking activity. Additionally, the results suggest that host-nation banking performance is a good safeguard against cross-border competition.     

Real estate and real estate finance as a research field—an international overview

We present a citation-based analysis of the most important journals on real estate and real estate finance over a time period from 1986 to 2010. For each year, those three articles with the highest number of citations according to Google Scholar are identified. A thorough analysis of all 75 selected articles reveals that the focus of interest has been on (1)empirical research, (2) mainly using data ofresidential real estate, with (3) the primary objective of evaluating real estateinvestment until the midst 1990s. In order to derive reliable risk-return relations for real estate investment, (4) asset pricing as the main task of real estateappraisal is in the centre of attention, too. Appraisal issues have relatively gained importance for the last fifteen years in comparison to investment issues. Interdisciplinary aspects and sustainable issues are only very rarely integrated in appraisal methods, the focus is primarily on maximizing economic returns. Therefore, our citation analysis confirms that the Financial Management Approach of Dasso and Woodward (1980) is the predominant approach particularly in the United States. Our findings regarding our basic sample of articles are cross-checked by several robustness tests. For future research activities, it seems to be quite promising to focus on the one hand on interdisciplinary aspects and on the other hand to contribute to the theoretical foundation of real estate with the aim of developing a common body of knowledge.     

Liability of foreignness as a barrier to knowledge spillovers: Lost in translation?

Multinational corporations (MNC) search increasingly for lead market knowledge and technological expertise around the globe. We investigate whether their subsidiaries gain access to these valuable sources of host country knowledge to the same degree as domestic rivals. We develop a theoretical framework for “why” and “how” a lack of embeddedness and legitimacy (liability of foreignness) may translate into additional obstacles for foreign subsidiaries. We test these hypotheses empirically using a broad dataset of more than 1100 firms in Germany. We find that MNCs can compete on an equal footing with host country competitors when it comes to generating impulses for innovations from universities. They are significantly challenged by liabilities of foreignness, though, when host country customers are involved. The disadvantages are especially pronounced when the host country industry is at the technological forefront. We suggest that the disadvantages arising from liability of foreignness in the host country are especially relevant when promising lead customers have to be identified and their tacit and often unarticulated impulses have to be transferred, understood and prioritized. Management recommendations are developed on the basis of these results.     

Can a leader be seen as too ethical? The curvilinear effects of ethical leadership

Ethical leadership predicts important organizational outcomes such as decreased deviant and increased organizational citizenship behavior (OCB). We argued that due to the distinct nature of these two types of employee behaviors, ethical leadership decreases deviance in a linear manner (i.e., more ethical leadership leading to less deviance), but we expected ethical leadership to reveal a curvilinear relationship with respect to OCB. Specifically, we expected that, at lower levels, ethical leadership promotes OCB. However, at high levels, ethical leadership should lead to a decrease in these behaviors. We also examined a mechanism that explains this curvilinear pattern, that is, followers' perceptions of moral reproach. Our predictions were supported in three organizational field studies and an experiment. These findings offer a better understanding of the processes that underlie the workings of ethical leadership. They also imply a dilemma for organizations in which they face the choice between limiting deviant employee behavior and promoting OCB.     

Observing leadership as behavior in teams and herds – An ethological approach to shared leadership research

Both Shared Leadership Theory and evolutionary theories of leadership emphasize the role of team-level patterns of influence on team or group success. Yet, most of the empirical work on the effects of shared leadership assesses the concept through patterns of subjective perceptions of leadership and behavior. Although these studies give us important insights, subjective perceptions of leadership are prone to biases. In this paper, we draw on evolutionary theories of the development of leadership in groups and argue that group-level patterns of observable behavior have a direct effect on team outcomes above and beyond patterns of leadership and behavior perceptions. On the basis of a brief review of ethological assessment methods of leadership in animal groups, we derive implications for team leadership research methods to test hypotheses on team-level influence patterns and performance. Emphasizing the role of influence in terms of interpersonal behavior we formulate implications for the assessment and analysis of verbal and nonverbal behavior in teams. Finally, we discuss how technological advances may be utilized to promote behavioral observations in team leadership research.     

Weather‐related Employment Subsidies as a Remedy for Seasonal Unemployment? Evidence from Germany

Many European countries try to reduce seasonal unemployment by subsidizing short‐time employment during the winter period. Despite such costly efforts, pronounced seasonal unemployment patterns continue to exist. This puts doubts on the effectiveness of such policy interventions. This paper provides a first empirical assessment of the effectiveness of different subsidy schemes by exploiting the institutional variation in a German subsidy scheme that applies to the construction sector and the variation in local weather and business cycle conditions across 20 years. The findings confirm that generous short‐time subsidies reduce individual lay‐off probabilities in the case of poor weather conditions. However, the link between weather conditions and seasonal lay‐offs is much less strong than expected, making planned capacity reductions the main suspect for causing seasonality in unemployment patterns.     

‘Space,the final frontier’? Social movements as organizing spaces for applying HRD

This article suggests a qualitatively different type of ‘space’ that fits the classic definition of what constitutes an ‘organization’, but that is frequently rejected as being beyond the scope of HRD because it does not fit preconceived notions of an ‘organization’. In this article, I describe how social movements are spaces analogous to organizations that can enrich our understanding of HRD principles and that may benefit from our professional experience in fostering learning and development for and within organizations. Using concepts of sensemaking in the organizing process (Weick, K. E. 1979. The Social Psychology of Organizing. 2nd ed. Thousand Oaks, CA: Sage Publications) and concepts of space (Foucault, M. 1986. “Of Other Spaces.” Translated by J. Miskowiec. Diacritics 16 (1): 22–27; Lefebvre, H. 1991. The Production of Space. Translated by D. Nicholson-Smith. Oxford: Blackwell), I show how the social movement, Occupy Wall Street, can be seen as an important site of HRD practice and research.     

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.     

Physician and nonphysician managers as decision makers: are the differences justified or just an illusion?

If the cost of health care is to be curtailed, it is necessary to understand physician behavior and decision making. Not only is physician decision making critical from a clinical perspective, but, as the number of physician executives increases, they must be able to integrate their clinical expertise and management skills into the business context. This article explores differences in decision making methods between physician and nonphysician managers.     

The raisons d'être for international management as a field of study

What justifies international management as a field of study? What differentiates international management from international business? These, and other issues of domain and curricular coverage are discussed in this introductory essay.     

State extraversion and emergent leadership: Do introverts emerge as leaders when they act like extraverts?

Extraverts are more likely than introverts to emerge as leaders, however little is known about the explicit behaviours that cause such an advantage and what introverts can do to overcome their relative disadvantage. Utilising an experiment (n = 601) in a group context, we assessed the effects of manipulating state extraversion on peer-rated emergent leadership, self-rated emergent leadership, and post-activity affect. Participants completed a big five personality measure and were randomly assigned to one of three conditions: a control condition, an ‘act extraverted’ treatment, or an ‘act introverted’ treatment. Results confirmed extraverts' emergent leadership advantage but demonstrated that state extraversion was the proximal cause of emergent leadership, with both extraverts and introverts emerging as leaders when instructed to act extraverted. Acting introverted i) had a particularly deleterious effect on self-rated emergent leadership regardless of trait extraversion, ii) caused a reduction in positive affect for ambiverts and extraverts but not for introverts, and iii) caused an increase in negative affect for ambiverts and extraverts but not for introverts.