Hybrid Governance: The Case of Household Solid Waste Management in Sweden

Governance is hybrid to the extent that it involves diverse organizational forms, jurisdictional domains, and stakeholders across the public and private sectors. This article analyses the governance of household solid waste management in Sweden from a hybridity perspective, with the City of Helsingborg in North-Western Scania in Sweden as an example. The governance arrangements comprise municipal and company-based organizations, conflicting legislation, and long planning and investment horizons. The latter has resulted in significant innovations over the last 20 years, while changes in organizational forms, tasks, networks and jurisdictions have caused tensions in governance processes and relationships.     

International Evidence on the Determinants of Organizational Ethical Vulnerability

This paper proposes a model to explain what makes organizations ethically vulnerable. Drawing upon legitimacy, institutional, agency and individual moral reasoning theories we consider three sets of explanatory factors and examine their association with organizational ethical vulnerability. The three sets comprise external institutional context, internal corporate governance mechanisms and organizational ethical infrastructure. We combine these three sets of factors and develop an analytical framework for classifying ethical issues and propose a new model of organizational ethical vulnerability. We test our model on a sample of 253 firms that were involved in ethical misconduct and compare them with a matched sample of the same number of firms from 28 different countries. The results suggest that weak regulatory environment and internal corporate governance, combined with profitability warnings or losses in the preceding year, increase organizational ethical vulnerability. We find counterintuitive evidence suggesting that firms’ involvement in bribery and corruption prevention training programmes is positively associated with the likelihood of ethical vulnerability. By synthesizing insights about individual and corporate behaviour from multiple theories, this study extends existing analytical literature on business ethics. Our findings have implications for firms’ external regulatory settings, corporate governance mechanisms and organizational ethical infrastructure.     

The Choice of Governance Modes of International Franchise Firms — Development of an Integrative Model

This paper examines the evolution of the international franchise research with special focus on the governance modes of the international franchise firm and develops a new model for the franchisor's choice of the international governance modes. International governance modes in franchising refer to wholly-owned subsidiaries, joint venture franchising, area development franchising and master franchising. Although many studies on the governance modes of the international franchise firm have been published in the last two decades, no prior study develops an integrative framework that investigates the determinants of the international governance modes by combining organizational economics and strategic management perspectives. Specifically, this study explains the governance modes of the international franchise firm by applying transaction cost theory, agency theory, resource-based and organizational capabilities theory and property rights theory.     

Agent and Task Complexity in Multilateral Alliances: The Safeguarding Role of Equity Governance

Multilateral alliances are an inherently complex organizational form; managing these complexities is particularly difficult for alliance partners because alliances are plagued by both internal and external uncertainty. Using insights from transaction cost economics, our study identifies, articulates and tests different forms of alliance complexity and their impacts on alliance governance structure. Specifically, we investigate two forms of alliance complexity: agent and task. We decompose agent complexity into organizational and partner complexity, and decompose task complexity into geographic, transaction and technological complexity. Using a sample of 327 trilateral alliances, the most frequent form of multilateral alliances, we find that three forms of alliance complexity involving internal uncertainty (organizational, partner and technological complexity) favor equity-based governance, whereas external uncertainty in the form of geographic complexity discourages equity-based governance.     

Converging and Diverging Governance Mechanisms: The Role of (Dys)Function in Long‐term Inter‐organizational Relationships

This paper explores the dynamic interplay of formal/informal governance mechanisms, in terms of functional and dysfunctional consequences for both sides of the dyad, in long‐term inter‐organizational relationships. Using two longitudinal cases of UK defence sector procurement (warship commissioning) we move beyond notions of complementarity and substitution in governance towards a more nuanced view where the governance mix of inter‐organizational relationships can be convergent or divergent. Our findings, showing that relationships can exhibit functional and dysfunctional behaviour simultaneously, lead us to conclude that mismatches in governance mechanisms can be positive as well as negative. In building a context‐dependent understanding of governance we both summarize the (dys)functions associated with formal and informal governance mechanisms and explore their impact on relationship exchange performance over time.     

Conclusion: Can We Go Home? Roads Taken, Targets Met, and Lessons Learned on Governance and Organizational Eclecticism in the Public Arena

Organizational eclecticism has characterized much of policy and administrative choices in public governance in the last three decades. This concluding article addresses this phenomenon and argues that roads have been taken, targets have been met, and many lessons have been learned in organizing and managing public sector governance, as the articles in this Symposium demonstrate. In the process, experiments have been conducted, some with success, while others with failure, leading to a proliferation of eclectic choices, many unsuited for organizational effectiveness but beneficial to powerful interest groups and politicians, all at the expense of alternative organizational choices and broad-based public interests. Three broad theoretical models/periods are examined, the proliferation of public sector organizational eclecticism is analyzed, and options are suggested concerning alternative organizational choices, resulting in the question: can we go home now?     

Beyond the Disciplinary Role of Governance: How Boards Add Value to Spanish Foundations

Due to the significant role of non‐profit organizations in the development of modern societies, these organizations must adjust their boardrooms. Since traditional theories of corporate governance appear to be limited in explaining the changing non‐profit world, we propose an extended model of governance that integrates the traditional arguments of agency theory with a cognitive dimension. Based on a sample of Spanish foundations, we present evidence on the effect of the board composition on foundations' organizational efficiency. We show that board size and independence do not have a definitive effect on the entity's efficiency. Instead, the knowledge diversity inside the boardroom and the active character of trustees have a positive influence on resource allocation. The cognitive dimension of the extended model of governance is critical to explaining how boards impact on organizational performance.     

Remote control: measuring performance for value creation and governance of globally distributed knowledge work

This article examines the governance of globally distributed knowledge work. To measure performance in knowledge work, it is important to focus on what the knowledge workers do and hence view knowledge as something one does, namely the practices, instead of something one has. By following the practices of knowledge work, it was possible to evaluate the effect of measures related to organizational processes, and identify what was not well covered by the measurement tool. Strategic and long term needs such as learning and employee competence are better managed through projects. This article shows how work performance in international organizations needs two different measures: one tool for measuring short-term value creation linked to the organizational processes; and, one tool for measuring long-term value creation linked to the practices of service work made in projects. Global governance of distributed employees is therefore successfully managed through key performance measures and through understanding projects through their multiple contributions, at both an individual and an organizational level. Global long term governance needs are strategic for the entire firm. The paper rests on an in-depth empirical case study of an international professional service firm.     

Multinational Organizations as Rule-following Bureaucracies — The Example of Catholic Orders

Within the literature, organizational rules are mostly taken for granted even though the reduction of office management into rules and the provision of their blueprints may be the main enabler for the management of organizations that conduct operations in multiple countries. Using the example of Catholic Orders and their monasteries, we analyze whether rule-following bureaucracy contributes to the management of multinational organizations (MNOs). The introduction of organizational rules and the redefinition of labor within these rules produced early medieval monasteries that were the most efficient organizations of this time, allowing them to spread rapidly throughout the world. Our main hypothesis is that governance by rules is a superior governance mechanism for MNOs. MNOs with more bureaucratic rules have accumulated a richer pool of encoded knowledge to deal with heterogeneous problems and, thus, are better forearmed to deal with complexity. The empirical findings mostly support this assumption. Bureaucratic governance may be thus an important but neglected topic for the management of modern MNOs.     

关系质量视角下移动虚拟社区治理对组织公民行为影响研究--以知识型移动虚拟社区为例

从关系质量视角出发,探索移动虚拟社区治理对组织公民行为的影响机理。在已有研究的基础上,结合移动虚拟社区的特点,提出移动虚拟社区治理的内涵和构成要素。构建以成员-平台关系质量和成员-成员关系质量为中介变量的移动虚拟社区治理对组织公民行为影响的理论模型,利用结构方程和Bootstrap法对模型进行验证。通过对知识型移动虚拟社区用户的调查,结果显示:社区构建与成员嵌入对成员-平台关系质量与成员-成员关系质量都有显著影响,而社区监管和信息保护却只对成员-成员关系质量有显著影响;成员-平台关系质量与成员-成员关系质量对组织公民行为均具有显著影响,但成员-成员关系质量对组织公民行为的影响更大;移动虚拟社区治理能够通过成员-成员关系质量和部分通过成员-平台关系质量对组织公民行为产生正向影响。     

Allocation of Rights and the Organization of Transactions: Elements of a Generative Approach to Organizing

This paper is an attempt to articulate in a systematicfashion how different patterns or forms of organizingare achieved and how one can talk about the variety inand the transformation of these forms. The paperargues that one way to address this fundamentalquestion is to look at how resources and rules can beused in transactions to develop a generative grammarof organizational forms. The theoretical perspectivedeveloped in the paper incorporates the nature ofinterdependencies among social actors in definingtheir relationships and the nature of resources beingtransacted in these relations. As a social system, anyorganizational form that involves regularizedrelations of interdependence between social actors,requires resources in some form or another. Whetherthey are characterized as goods transacted in anexchange situation, human or social capital of actorsin a productive act, or collective control ofproductive skills, they are the necessary componentsof organizing because they give the social actors thecapability to develop their strategic conduct. Inaddition to resources, any organizational form mustalso possess a set of rules that define the nature ofthe transaction among the social agents.The first part of the paper introduces the logic andthe elements of the generative grammar fororganizational forms. The second part applies theseideas to organizational governance structuresespecially the relationship between the owners and themanagers in order to show how different forms ofgovernance structures can be generated based on theallocation of rights among various parties involved. The paper concludes with the suggestion that marketsversus hierarchic governance are very grosscategorization that cannot satisfactorily show thediversity of variations in forms of governance inorganizations.     

Regulation issues in the Italian local transport system: aligning transactions and governance structures

This paper refers to the concept of public governance in the light of Transaction Cost Economics (TCE). While TCE is well developed and widely applied in the private sector, only a few studies have adopted such framework to investigate the provision of public services. We aim at pointing out the coherence between peculiar typologies of transactions and a given set of governance structures, within Local Public Transport systems. The core of the analysis is the alignment between characteristics of transactions and governance structures. The empirical section addresses these issues referring to three case studies, pointing out an articulated organizational configuration in terms of actors involved and governance structures adopted. The analysis shows an alignment between the choices underlying the design of the local transport system and the outcomes expected in terms of TCE.     

Corporate Governance and the Governance of Innovation: The Case of Pharmaceutical Industry

The paper focuses on some organizationaldynamics that have characterized the pharmaceuticalindustry in the last thirty years, whenbiotechnology and the development of lifesciences have defined a new technologicalparadigm, reshaping many aspects of theindustry, especially the organization ofinnovative activity. We suggest an original interpretation of someorganizational settings, as the increasedimportance of skilled scientists within firmsand the development of inter-organizationalalliances for the division of scientific labor.Following recent theorizing on corporategovernance issues, which points out theintrinsic organizational and relationaldimensions of the resource allocation processesand strategic decision-making, we propose a roleof the organizational practices mentioned aboveon corporate governance, and, in turn, aninfluence of different governance arrangementson innovative activity. We recall moretraditional approaches to the analysis ofcorporate governance, and give a broaderinterpretation to the relevant variablesproposed. Further, relying on more recenttheories and on literature on firm's boundariesand sectoral systems of innovation, we proposeindustry-specific variables forpharmaceuticals, including internal settings aswell as relations with external actors.Preliminary empirical support is given to ourhypotheses, concerning a panel of large USpharmaceutical companies.     

The governance of social enterprises: Mission drift and accountability challenges in hybrid organizations

We examine the challenges of governance facing organizations that pursue a social mission through the use of market mechanisms. These hybrid organizations, often referred to as social enterprises, combine aspects of both charity and business at their core. In this paper we distinguish between two ideal types of such hybrids, differentiated and integrated, and we conceptualize two key challenges of governance they face: accountability for dual performance objectives and accountability to multiple principal stakeholders. We revisit the potential and limitations of recently introduced legal forms to address these challenges. We then theorize about the importance of organizational governance and the role of governing boards in particular, in prioritizing and aligning potentially conflicting objectives and interests in order to avoid mission drift and to maintain organizational hybridity in social enterprises. Finally, we discuss future research directions and the implications of this work for rethinking traditional categories of organizations, namely business and charity.     

Governance Structures,Coordination Mechanisms and Cognitive Models

This paper criticizes the current prevailing ways ofmodelling governance alternatives, and advocates theopportunity and feasibility of a reconceptualizationof governance forms as mixes or configurations ofsimpler and potentially disentangleablecomponents. These components are constituted by abundle of property rights and by a set of coordinationmechanisms. The paper draws on a previous effort atintegrating economic, organizational and sociologicaltheories of governance in a cognitive perspective(Grandori 1995a) and explicitates how some cognitivefoundations of organization theory can be revised tosustain a more fine-grained view of governance. Theimplications for organization design are illustratedin the final section through the solution of someempirical design problems, as well as through areinterpretation of known hybrid arrangements.     

Managerial incentive, organizational slack, and performance: empirical analysis of Japanese firms’ behavior

The main purpose of this study is to investigate how organizational slack is created and how it affects a firm’s performance. To address these questions, we construct three equations: managerial incentive function, organizational slack formation function and performance function, and we apply 3SLS simultaneously to these functions by using the data sets of 2,791 Japanese firms from the years 2001 and 2006. From the empirical analysis of these Japanese firms, we obtain the following results: a firm’s performance declines as organizational slack increases; organizational slack is affected by annual change rate of revenues but not by managerial incentive; managerial incentive decreases as a firm’s performance improves while it increases as the structure of corporate governance is strengthened.     

STRUCTURE,ENVIRONMENT, AND ORGANIZATIONAL GOVERNANCE IN MANUFACTURING*

The paper compares theories of organizational governance that explain delegation in decision making in terms of administrative rationality on the parts of top corporate officials with theories that emphasize lower-level actors mobilizing resources to gain control over organizational outcomes. These two alternative theories are developed and extended to apply to the relationship between manufacturing plants and parent companies. A general model is introduced to compare these theories which includes characteristics of parent companies and site environments, site resources, and delegation. The model is then tested on a sample of manufacturing plants.     

Integration and Autonomy in Organizational Governance: A Comparative Study of Two Government-Owned Railways in Hong Kong

This article identifies the patterns of integration and autonomy in organizational governance in two government-owned railways in Hong Kong in relation to relevant external and internal actors from the government, market and civil society. The Kowloon Canton Railway Corporation, a government department turned into a statutory corporation, and the Mass Transit Railway Corporation Limited, a statutory corporation turned into a listed company, are both profitable enterprises. They have been subjected to similar macro-governance influences (mainly political and policy changes), but their patterns of integration and autonomy with relevant actors in organizational governance are not the same. The historical variations in the integration-autonomy patterns, notably an increased tendency for government intervention, as well as major differences between the two railways in their relationships with market and civil society actors, can often be explained by three interrelated factors, namely, political conditions, community expectations and performance.

---

     

Does governance confer organisational resilience? Evidence from UK employee owned businesses

Current economic crisis has highlighted the importance of an organization’s ability to withstand economic shocks. This has rekindled interest in organization resilience on the one hand, and the relationship between alternative governance forms such as employee owned businesses (EOBs) on the other. We explore this relationship using performance data on 204 publicly traded non-employee owned businesses and 49 EOBs prior to the economic downturn (2004–2008), and during the economic downturn (2008–2009). This data is complemented with a survey of resilience related governance and organizational practices in 41 EOBs and 22 non-EOBs. Our results show that: (a) employee ownership that is combined with employee involvement in firm governance is associated with greater stability in business performance over a business cycle; (b) EOBs have longer investment payback horizon when compared to non-EOBs across a number of activities; (c) Top management in EOBs are more likely to seek employee input in strategic decision making; (d) EOBs are more likely to use employee involvement to achieve tighter coupling between feedback from operations and the setting of strategic direction for the firm. These results suggest that employee stock ownership programs alone are not sufficient to develop higher levels of organizational resilience. Managers must combine employee stock ownership with employee involvement in governance if they wish to build up resilience in advance of adverse economic conditions.     

Positive Chair-CEO work relationships: Micro-relational foundations of organizational capabilities

With the increasing separation of the of the roles of the CEO and Chairperson, the interplay between them has been attracting considerable interest in both communities of scholarlship and practice. We examine the ways in which the work relationships between these two supreme executive functions may help in developing organizational processes and outcomes. In so doing, we shift the discussion from a corporate governance lens to examining how micro-level mechanisms, which are rooted in individual actions and interactions involving behavioral, cognitive and emotional mechanisms, may help cultivate higher-level processes and outcomes. Using a qualitative methodology in which pairs of Chairpersons and CEOs were interviewed, we developed a conceptual model which specifies how the nature of Chairperson-CEO work relationships may be conducive to cultivating organizational capabilities of knowledge creation and cultivate collective resilience, through the shaping of a supportive organizational communication climate. In so doing, we extended a micro-foundation framework by advancing a micro-relational lens to the corporate governance research and theory and more broadly to the literature on strategic leadership.