Complements or Substitutes? Culture–Technology Interactions in Healthcare

The U.S. government recommends that hospitals adopt Computerized Provider Order Entry (CPOE) systems to improve the quality problems that plague U.S. hospitals. However, CPOE studies show mixed results. We hypothesize that CPOE effectiveness depends on the prevalence of patient safety culture within a hospital. Using organizational information processing theory, we describe how patient safety culture and CPOE enable healthcare organizations to better process information. Specifically, we posit that CPOE complements some aspects of patient safety culture and substitutes for others. Using ridge regression, we empirically test this proposition using data from 268 hospitals and multiple data sources. Results show that while CPOE complements the patient safety dimensions of handoffs and transitions, feedback and communication about error, and organizational learning, CPOE substitutes for the dimension of management support for safety, in the context of our dependent variable. As organizations work to implement new systems, this research can help decision‐makers understand how culture impacts such initiatives and account for culture when anticipating effects.     

Inept or Badly Matched? — Effects of Educational Mismatch in the Labor Market

Negative wage effects of educational mismatch have become a stylized fact. Whether these are explained by differences in unobserved productivity or poor matching is still to be answered conclusively. In an empirical analysis based on data from the German Socio‐Economic Panel and the International Adult Literacy Survey, a broad econometric strategy is applied to solve the problem of unobserved heterogeneity and reveal the mechanism underlying wage differences between matched and mismatched workers. Results show that wage differentials can be explained by a poor matching in the labor market, rejecting the hypothesis that mismatched workers compensate for unobserved productivity differences.     

Is Wage Leadership an Instrument to Coordinate Unions’ Wage Policy?The Case of Imperfect Product Markets

Given an oligopolistic product market, trade unions organized at firm level want to coordinate their bargaining activities. If for some exogenous reasons centralization is not possible, unions could try to coordinate wage setting by wage leadership. The outcome of such wage leadership is compared with that of an uncoordinated bargaining and is characterized by higher utilities for all unions. But wages and employment levels are not symmetrical either for unions or for firms. The leader firm employment decreases and the follower firm employment rises compared with uncoordinated bargaining. This may cause problems with the implementation of wage leadership.     

Corporate Governance in China—Is Economic Growth Potential Hindered by Guanxi?

Despite the opening of the market and partial privatization of state‐owned companies in China, the state still represents the controlling shareholder in larger companies. By analyzing the weaknesses of Chinese corporate governance we illustrate the framework for harmful corruption. China is characterized by a weak legal system and strong influences of traditions such as guanxi. In this article we analyze the influence of guanxi on the Chinese corporate governance system. We find that guanxi is in general a double‐edged sword, but business‐to‐government guanxi in particular can harm the weak Chinese corporate governance system and hamper its further economic development and growth.     

Decentralizing Wage Bargaining in Germany — A Way to Increase Employment?

Abstract. The area‐wide wage agreement is at the centre of Germany's system of collective bargaining. In recent years, however, there has been a tendency towards the decentralization of collective bargaining. Individual wage agreements have led to more moderate wage developments, whilst collective agreements with individual firms, and agreements at the production unit level, have not had this moderating effect. On the other hand, collective bargaining has become more flexible, leading to greater pay differentiation. The further decentralization of collective bargaining, although desirable, has given rise to objections based in constitutional law and to resistance from employees and employers.     

The panopticon,an emblematic concept in management and organization studies: Heaven or hell?

The well-known metaphor of ‘panopticon’, derived from Bentham's project and popularized by Foucault, has long informed scholarly conversations in management and organization studies (MOS). Herein, we question the power of this emblematic metaphor. Through an in-depth literature review specifying its form, principle and goal, coupled to an investigation of Bentham's original writings, we identify two readings of the panopticon. First, we disentangle the uses of this concept in MOS literature and highlight a rather uniform and negative interpretation of the panopticon as a mechanism of social control and surveillance (first reading). Beyond this dominant interpretation, we contend that the panopticon is a richer concept than MOS literature acknowledges. Going back to Bentham's initial project, entailing not only one but plural types of panopticons, we propose a more comprehensive conceptualization of the panopticon (second reading) as: (1) a rewarding functional dispositive based on freedom and autonomy (form); (2) relying on information sharing, transparency and visibility (principle); and (3) striving for harmony and efficiency as ultimate ends (goal). In doing so, we generate a new way of seeing the panopticon in MOS research. We also reveal an inherent tension between both readings, interpreted as dystopia and utopia, and show that their combination allows grasping the ambivalence of panopticism in practice in ways that can inform further research on liberal management. As a practice of freedom, panopticism in practice might indeed turn into an instrument furthering control. To conclude, we highlight some analytical paths to help MOS scholars disentangle such ambivalence.     

Transparency in Buyer‐Determined Auctions: Should Quality be Private or Public?

We study buyer‐determined procurement auctions where both price and non‐price characteristics of bidders matter for being awarded a contract. Although, in scoring auctions bidders perfectly know how price and non‐price attributes determine the awarding of the contract, this remains uncertain in buyer‐determined auctions where the buyer is free to choose once all bids have been submitted. We analyze the impact of information bidders have with respect to the buyer's awarding decision. As we show theoretically whether it is in the buyer's interest to conceal the impact of non‐price characteristics depends on how important the quality aspects of the procured good are to the buyer: The more important quality aspects are, the more interesting concealment becomes. In a counterfactual analysis using data from a large European procurement platform, we analyze the reduction of non‐price information available to the bidders. Confirming our hypothesis, for auction categories where bidders’ non‐price characteristics strongly influence buyers’ decisions concealment of non‐price information leads to an increase in buyers’ surplus of up to 15% due to higher competitive pressure and lower bids. Conversely, for categories where bidders’ non‐price characteristics are of little importance concealment of non‐price information leads to a decrease in buyers’ surplus of up to 6%.     

Split‐Award Procurement Auctions—Can Bayesian Equilibrium Strategies Predict Human Bidding Behavior in Multi‐Object Auctions?

We analyze if and when symmetric Bayes Nash equilibrium predictions can explain human bidding behavior in multi‐object auctions. We focus on two sealed‐bid split‐award auctions with ex ante split decisions as they can be regularly found in procurement practice. These auction formats are straightforward multi‐object extensions of the first‐price sealed‐bid auction. We derive the risk‐neutral symmetric Bayes Nash equilibrium strategies and find that, although the two auction mechanisms yield the same expected costs to the buyer, other aspects of the two models, including the equilibrium bidding strategies, differ significantly. The strategic considerations in these auction formats are more involved than in single‐lot first‐price sealed‐bid auctions, and it is questionable whether expected utility maximization can explain human bidding behavior in such multi‐object auctions. Therefore, we analyzed the predictive accuracy of our equilibrium strategies in the laboratory. In human subject experiments we found underbidding, which is in line with earlier experiments on single‐lot first‐price sealed‐bid auctions. To control for regret, we organize experiments against computerized bidders, who play the equilibrium strategy. In computerized experiments where bid functions are only used in a single auction, we found significant underbidding on low‐cost draws. In experiments where the bid function is reused in 100 auctions, we could also control effectively for risk aversion, and there is no significant difference of the average bidding behavior and the risk‐neutral Bayes Nash equilibrium bid function. The results suggest that strategic complexity does not serve as an explanation for underbidding in split‐award procurement auctions, but risk aversion does have a significant impact.     

Requirement or Promise? An Analysis of the First‐Mover Advantage in Quality Contracting

Quality contracting is critical and challenging due to the many unique issues related to quality. In this study, we analyze the first‐mover right in quality contracting by considering two different strategies for the buyer: the quality requirement strategy (QR) where buyer moves first by posting quality requirement to suppliers and quality promise strategy (QP) where buyer voluntarily gives up the first‐mover right to suppliers to ask them to promise quality. We study which strategy (1) better encourages suppliers' quality improvement efforts and (2) leads to a higher expected profit for the buyer. To analyze the drivers behind the buyer's choice between QR and QP, we start with the basic model where buyer faces only one supplier who has the opportunity to make quality improvements. We then gradually add other business features such as information asymmetry and supplier competition, analyzing how each feature adds/changes the driving forces and how they interact in the buyer's decision between QR and QP. We consider both the case where the wholesale price is fixed (when the buyer has the power to dictate price or price is set by the market) and the case where the wholesale price is included as a variable (when price is part of the negotiation). We find that QP always leads to the first‐best quality efforts from the supplier(s) while QR limits their efforts. However, this does not guarantee higher expected profit for the buyer under QP. We provide insightful guidelines in buyer's choice between QP and QR. This research enriches the limited literature on quality contracting with quality improvement opportunity and asymmetric information.     

The role of the audit committee in Thailand: a mature monitoring mechanism or an evolving process?

Following the East Asia financial crisis of 1997 in common with other countries, Thailand mimicked a series of governance measures, including the mandatory formation of audit committees (AC), that were designed in western developed nations with diffuse share ownership, although evidence about the success of these measures in developed nations is mixed. This research contributes to understanding of the role of ACs in a non-English speaking developing country, where share ownership is concentrated, rather than diffuse. It examines the perceptions of audit committee members, investors and analysts about the roles ACs perform and the importance of these roles. To obtain a large number of responses we have used a questionnaire survey method. We adopt Spira’s (Corporate Governance: an International Review 6(1):29–38, 1998) model of evolutionary development of ACs in which they are characterised as developing along a continuum from an ‘infant’ to a ‘mature’ stage of development, although such development need not be linear. The majority of our participants report that ACs perform roles that are in line with international guidelines, but this appears to reflect a passive role in terms of complying with, rather than developing guidance and regulation. Our evidence reveals that the ACs placed greater emphasis on internal control systems, including internal audit and review of audit fees, than on roles associated with external audit and financial statements, indicative of an early stage in the process of evolutionary development.

On Summarizing Group Exposures in Risk Assessment: Is an Arithmetic Mean or a Geometric Mean More Appropriate?

Since substantial bias can result from assigning some type of mean exposure to a group, risk assessments based on epidemiological data should avoid the grouping of data whenever possible. However, ungrouped data are frequently unavailable, and the question arises as to whether an arithmetic or geometric mean is the most appropriate summary measure of exposure. It is argued in this paper that one should use the type of mean for which the total risk that would result if every member of the population was exposed to the mean level is as close as possible to the actual total population risk. Using this criterion an arithmetic mean is always preferred over a geometric mean whenever the dose response is convex. In each of several data sets examined in this paper for which the dose response was not convex, an arithmetic mean was still preferred based on this criterion.     

E‐Procurement Infusion and Operational Process Impacts in MRO Procurement: Complementary or Substitutive Effects?

The procurement of maintenance, repair, and operating (MRO) goods has remained a relatively understudied topic in the literature. Though vital cost efficiencies can be extracted from procurement processes through investments in e‐procurement systems, there is little empirical work that addresses how such systems should be deployed within organizations. In this study, we focus on the role of e‐procurement systems in MRO procurement and study two critical aspects of infusion. The first dimension captures the depth of e‐procurement use within the procurement function, while the second dimension depicts the breadth of use. We argue that these two dimensions of e‐procurement use, and their interaction, will be related to the performance of the MRO procurement process. Using survey data from 193 service organizations and structural equation modeling techniques, we show that the two infusion dimensions are significantly associated with improved process performance. Additionally, we show a substantial substitutive effect between the two use dimensions on performance. Our work has significant implications for managers who seek to gain efficiencies by the deployment of Internet‐based technologies within operational processes. Our conceptualization of e‐procurement infusion along two dimensions provides a more fine‐grained analysis of performance benefits accruing from the infusion of information technologies within organizations.     

Should I Text or Call Here? A Situation‐Based Analysis of Drivers’ Perceived Likelihood of Engaging in Mobile Phone Multitasking

This study investigated how situational characteristics typically encountered in the transport system influence drivers’ perceived likelihood of engaging in mobile phone multitasking. The impacts of mobile phone tasks, perceived environmental complexity/risk, and drivers' individual differences were evaluated as relevant individual predictors within the behavioral adaptation framework. An innovative questionnaire, which includes randomized textual and visual scenarios, was administered to collect data from a sample of 447 drivers in South East Queensland‐Australia (66% females; n = 296). The likelihood of engaging in a mobile phone task across various scenarios was modeled by a random parameters ordered probit model. Results indicated that drivers who are female, are frequent users of phones for texting/answering calls, have less favorable attitudes towards safety, and are highly disinhibited were more likely to report stronger intentions of engaging in mobile phone multitasking. However, more years with a valid driving license, self‐efficacy toward self‐regulation in demanding traffic conditions and police enforcement, texting tasks, and demanding traffic conditions were negatively related to self‐reported likelihood of mobile phone multitasking. The unobserved heterogeneity warned of riskier groups among female drivers and participants who need a lot of convincing to believe that multitasking while driving is dangerous. This research concludes that behavioral adaptation theory is a robust framework explaining self‐regulation of distracted drivers.     

Does Iconicity in Pictographs Matter? The Influence of Iconicity and Numeracy on Information Processing,Decision Making,and Liking in an Eye‐Tracking Study

Researchers recommend the use of pictographs in medical risk communication to improve people's risk comprehension and decision making. However, it is not yet clear whether the iconicity used in pictographs to convey risk information influences individuals’ information processing and comprehension. In an eye‐tracking experiment with participants from the general population (N = 188), we examined whether specific types of pictograph icons influence the processing strategy viewers use to extract numerical information. In addition, we examined the effect of iconicity and numeracy on probability estimation, recall, and icon liking. This experiment used a 2 (iconicity: blocks vs. restroom icons) × 2 (scenario: medical vs. nonmedical) between‐subject design. Numeracy had a significant effect on information processing strategy, but we found no effect of iconicity or scenario. Results indicated that both icon types enabled high and low numerates to use their default way of processing and extracting the gist of the message from the pictorial risk communication format: high numerates counted icons, whereas low numerates used large‐area processing. There was no effect of iconicity in the probability estimation. However, people who saw restroom icons had a higher probability of correctly recalling the exact risk level. Iconicity had no effect on icon liking. Although the effects are small, our findings suggest that person‐like restroom icons in pictographs seem to have some advantages for risk communication. Specifically, in nonpersonalized prevention brochures, person‐like restroom icons may maintain reader motivation for processing the risk information.     

Becoming the best: by beating or ignoring the best? Toward an expanded view of the role of managerial selection in complex and turbulent environments

This paper explores how the rules that guide search affect organizational adaptation in complex and turbulent environments. Our consideration of such rules extends beyond search scope—i.e., exploitation of current technologies vs. exploration of new technologies—to include focus on competition. We consider two types of competitive focus—i.e., external, where the choice of focal technology to be improved is influenced by information about other organizations and internal, where it is not influenced by others. We refer to this expanded set of rules as managerial selection and vary it to explore how it affects organizational adaptation. Employing an agent based simulation model, built on the framework of NKC fitness landscapes, we consider multiple types of interdependencies within and between technologies and across competitors. We show that in the presence of these multiple interdependencies, the ability of organizations to adapt is conditioned as much or more by the focus of search than by its scope. In particular, we observe that in simple and stable environments, organizational adaptation is enhanced by an external focus but in complex and turbulent environments, such external focus is counterproductive.