Supplier Capacity and Intermediary Profits: Can Less Be More?

We identify market conditions under which intermediaries can thrive in retailer‐driven supply chains. Our main finding is that, as a consequence of the retailers’ leadership position, intermediaries prefer products for which the supply base (existing production capacity) is neither too narrow nor too broad; that is, less existing capacity can result in more intermediary profit. We also show that our main finding is robust to (i) the presence of horizontal competition among retailers and intermediaries, (ii) the existence of exclusive suppliers, and (iii) the ability of the retailers to source directly from the suppliers. Nevertheless, we find that horizontal competition between intermediaries encourages them to carry products with relatively smaller production capacity, whereas exclusive suppliers and direct sourcing encourage intermediaries to carry products with relatively larger installed capacity.     

Can Management Accounting Be Helpful for Young and Small Companies? Systematic Review of a Paradox

While management accounting (MA) implies potential benefits for large established companies, its usefulness for young and small companies is less clear. This review analyzes and partially resolves the paradox and provides a structured overview of present knowledge. A systematic literature search yielded 67 empirical papers in 25 journals. Drawing on the results of a two‐step coding process, this study proposes 20 novel second‐level constructs expressing the types of MA, their antecedents and their consequences in young and small companies. The main results show that, in discussing MA, the literature refers mainly to business planning, accounting‐based management control activities and financial accounting. Most studies find MA to be helpful for young and small companies because it provides tools to overcome difficulties arising from company growth and reduces information asymmetry with external partners. Overall, however, the empirical literature on this topic is highly concentrated, offers theoretical construct definitions of poor quality, and lacks a clear statement of what MA really does in young and small companies. Therefore, future research and theory development are warranted.     

Unions’ and Firms’ Attitudes Towards Research Joint Ventures: When Will the Incentives Be Aligned?

Abstract. This paper studies the relationship between unionization and innovation activity. Under a unionized labour market, we find that when R&D spillovers are relatively low (high), cooperative, as well as non‐cooperative R&D is a strategic substitute (complement). Furthermore, irrespective of the spillover rate, cooperation increases firms’ profits, whereas it increases union utility only if spillovers are sufficiently high. Alignment of incentives between firms and unions requires that firms pay transfers in the form of ‘rent‐sharing’ to make a Research Joint Venture attractive to unions. Our results suggest that if spillovers are low enough, the amount of money that firms give up in order to buy unions’ acquiescence weakens their incentives to form a Research Joint Venture.     

What Should Be the Implications of Uncertainty,Variability, and Inherent “Biases”/“Conservatism” for Risk Management Decision-Making?

This paper is a challenge from a pair of lifelong technical specialists in risk assessment for the risk-management community to better define social decision criteria for risk acceptance vs. risk control in relation to the issues of variability and uncertainty. To stimulate discussion, we offer a variety of straw man proposals about where we think variability and uncertainty are likely to matter for different types of social policy considerations in the context of a few different kinds of decisions. In particular, we draw on recent presentations of uncertainty and variability data that have been offered by EPA in the context of the consideration of revised ambient air quality standards under the Clean Air Act.     

Do Business Leaders Have Role‐Model Obligations to Be Good Political Actors?

This article raises an issue about corporate political activity that is different from those typically addressed by business ethicists. It examines the role‐model status and obligations of the business leaders who direct such activity. This approach has two potential benefits. First, since ethicists often appeal to role‐model obligations and many are concerned about corporate political activity, business ethics literature would benefit from expanding the examination of role‐model status and obligations to encompass the business leaders who direct political activity. Second, it will help ethicists determine what we should demand from business leaders who direct such activity. This is important given the U.S. Supreme Court's Citizens United decision in 2010 that guarantees corporations the free‐speech right to make political expenditures in support of political causes. I seek to demonstrate that we should hold business leaders morally accountable for how they direct political activity because of their role‐model status that arises from their greater fame, authority, or power than ordinary persons possess.     

Management and 1992 — Illusions and reality

Dr Butt Philip takes a refreshingly unsycophantic view of ‘1992’, pointing out that, away from the hype, a good deal of the Single European Market (SEM) programme has been in place for some time. Although the European Commission's timing and tactics over the SEM programme were shrewd, in Britain at least, the national campaign has been confusing.It is a company's business development and positioning in relation to 1992 that matters, and this involves both an internal ‘1992 audit’ as well as making sure it is well represented in Brussels.Although giving us cautionary good advice, the author feels a sense of Zeitgeist about the SEM programme and the federal Europe that it implies. Attitudes and institutions in business must be developed to achieve the destiny of European integration.     

Economic and social leader–member exchange relationships and follower performance

This exploratory study investigated the link between economic and social leader–member exchange relationships and follower work performance and organizational citizenship behavior. Instead of viewing exchange relationships between leaders and subordinates on a continuum from low to high quality, we conceptualize social and economic exchange relationships as relationships with different qualities, rather than different levels of quality. Data from 552 followers and 78 leaders supported our two-dimensional model of leader–member exchange relationships. Furthermore, an economic leader–member exchange relationship was negatively related to both work performance and organizational citizenship behavior. As expected, positive relationships were obtained for a social leader–member exchange relationship and work performance and organizational citizenship behavior. Implications for practice and future research are discussed.     

Approximation and hardness results for label cut and related problems

We investigate a natural combinatorial optimization problem called the Label Cut problem. Given an input graph G with a source s and a sink t, the edges of G are classified into different categories, represented by a set of labels. The labels may also have weights. We want to pick a subset of labels of minimum cardinality (or minimum total weight), such that the removal of all edges with these labels disconnects s and t. We give the first non-trivial approximation and hardness results for the Label Cut problem. Firstly, we present an \(O(\sqrt{m})\)-approximation algorithm for the Label Cut problem, where m is the number of edges in the input graph. Secondly, we show that it is NP-hard to approximate Label Cut within \(2^{\log ^{1-1/\log\log^{c}n}n}\) for any constant c<1/2, where n is the input length of the problem. Thirdly, our techniques can be applied to other previously considered optimization problems. In particular we show that the Minimum Label Path problem has the same approximation hardness as that of Label Cut, simultaneously improving and unifying two known hardness results for this problem which were previously the best (but incomparable due to different complexity assumptions).     

6 Pay and Performance: Individuals,Groups, and Executives

Abstract

In this chapter, we address three pay for performance (PFP) questions. First, what are the conceptual mechanisms by which PFP influences performance? Second, what programs do organizations use to implement PFP and what is the empirical evidence on their effectiveness? Third, what perils and pitfalls arise on the way from PFP theory to its execution in organizations? We address these questions in general terms, but also highlight unique issues that arise in PFP for teams and for executives. We highlight the fact that research and practice in the area of PFP requires one to deal with a number of trade‐offs. For example, strengthening PFP links can generate powerful motivation effects, but sometimes these are in unintended and unanticipated directions, resulting in undesirable effects. In addition, there are also trade‐offs in deciding the degree of emphasis to give to individual versus team performance and to results versus behaviors in PFP plans. What all this means is that, as in other areas of management, “one best way” advice (e.g., do or do not use individual PFP plans) or “sound‐bite” conclusions (e.g., PFP does not exist; PFP does or does not motivate) are rarely valid, but rather depend on the circumstances and the organization. In the realm of executive pay, we question the current conventional wisdom in the management literature that there is little or no PFP. We close the chapter with a discussion of our key conclusions and suggestions for what we think would be the most interesting and useful future research areas. We encourage the management literature, which has increasingly become interested in the concept of evidence‐based management, to execute this concept more effectively in its research and when talking or writing about pay.     

Can Businesses Be Too Good? Applying Susan Wolf's “Moral Saints” to Businesses

Susan Wolf famously argues that moral sainthood is not an ideal for which persons should aim because it requires one to cultivate moral virtues to the exclusion of significant, nonmoral interests, and skills. I find Wolf's argument compelling in her context of persons, and seek to demonstrate that it remains so when the context is expanded to businesses. I argue that just as moral perfection precludes individuals from challenging societal norms and traditions in ways that benefit us, moral perfection prevents businesses from challenging norms and traditions in ways that can promote positive social change. I also describe, and respond to, three possible objections to my position, most notably the claim that businesses' greater social power justifies demanding moral perfection from them even though we should not demand moral perfection from persons.     

Flows with unit path capacities and related packing and covering problems

Since the seminal work of Ford and Fulkerson in the 1950s, network flow theory is one of the most important and most active areas of research in combinatorial optimization. Coming from the classical maximum flow problem, we introduce and study an apparently basic but new flow problem that features a couple of interesting peculiarities. We derive several results on the complexity and approximability of the new problem. On the way we also discover two closely related basic covering and packing problems that are of independent interest. Starting from an LP formulation of the maximum s-t-flow problem in path variables, we introduce unit upper bounds on the amount of flow being sent along each path. The resulting (fractional) flow problem is NP-hard; its integral version is strongly NP-hard already on very simple classes of graphs. For the fractional problem we present an FPTAS that is based on solving the k shortest paths problem iteratively. We show that the integral problem is hard to approximate and give an interesting O(log?m)-approximation algorithm, where m is the number of arcs in the considered graph. For the multicommodity version of the problem there is an $O(\sqrt{m})Since the seminal work of Ford and Fulkerson in the 1950s, network flow theory is one of the most important and most active areas of research in combinatorial optimization. Coming from the classical maximum flow problem, we introduce and study an apparently basic but new flow problem that features a couple of interesting peculiarities. We derive several results on the complexity and approximability of the new problem. On the way we also discover two closely related basic covering and packing problems that are of independent interest. Starting from an LP formulation of the maximum s-t-flow problem in path variables, we introduce unit upper bounds on the amount of flow being sent along each path. The resulting (fractional) flow problem is NP-hard; its integral version is strongly NP-hard already on very simple classes of graphs. For the fractional problem we present an FPTAS that is based on solving the k shortest paths problem iteratively. We show that the integral problem is hard to approximate and give an interesting O(log m)-approximation algorithm, where m is the number of arcs in the considered graph. For the multicommodity version of the problem there is an O(?m)O(\sqrt{m}) -approximation algorithm. We argue that this performance guarantee is best possible, unless P=NP.     

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.     

Median problems with positive and negative weights on cycles and cacti

This paper deals with facility location problems on graphs with positive and negative vertex weights. We consider two different objective functions: In the first one (MWD) vertices with positive weight are assigned to the closest facility, whereas vertices with negative weight are assigned to the farthest facility. In the second one (WMD) all the vertices are assigned to the nearest facility. For the MWD model it is shown that there exists a finite set of points in the graph which contains the locations of facilities in an optimal solution. Furthermore, algorithms for both models for the 2-median problem on a cycle are developed. The algorithm for the MWD model runs in linear time, whereas the algorithm for the WMD model has a time complexity of  O(n²)\mathcal{O}(n^{2}) .     

Does the internet change how we die and mourn? Overview and analysis

The article outlines the issues that the internet presents to death studies. Part 1 describes a range of online practices that may affect dying, the funeral, grief and memorialization, inheritance and archaeology; it also summarizes the kinds of research that have been done in these fields. Part 2 argues that these new online practices have implications for, and may be illuminated by, key concepts in death studies: the sequestration (or separation from everyday life) of death and dying, disenfranchisement of grief, private grief, social death, illness and grief narratives, continuing bonds with the dead, and the presence of the dead in society. In particular, social network sites can bring dying and grieving out of both the private and public realms and into the everyday life of social networks beyond the immediate family, and provide an audience for once private communications with the dead.     

Does shared and differentiated transformational leadership predict followers' working conditions and well-being?

Transformational leadership has been widely researched and is associated with followers' performance, attitudes, and subjective well-being at the individual level. Less research has focused on transformational leadership as a group phenomenon. In a survey study (425 followers and 56 leaders), we examined how group-level and differentiated transformational leadership shape followers' perceptions of their working conditions and individual subjective well-being. There was stronger evidence that differentiated transformational leadership's relationships with indicators of well-being was mediated by perceptions of working conditions, in that 10 out of 20 tests for mediation using differentiated transformational leadership were significant, compared to just three out of 20 for group-level transformational leadership. The results suggest that transformational leadership needs to be studied as a group phenomenon considering how group-level perceptions may impact on followers' well-being and that leaders need to realize that there is an “I” in groups and addition to a “we” in groups.     

The state and the macro-industrial economy—The use and abuse of offset

State intervention to establish, develop and retain particular industrial sectors in the world economy is widespread, often stimulated by the perceived threat to sovereignty posed by foreign based macro-industrial enterprises. The paper examines a particular form of such intervention, known as offset, which is widely used in major purchases of aerospace products. In this the State, in consideration of such a purchase from a foreign based company, requires that a proportion of the contract value be placed as work in its own related manufacturing sector. Current examples of how widespread and complex these have become are given and analysed by reference to a matrix of possible types of offset and levels of industrial development of the purchasing State. On the assumption that the efficient diffusion of appropriate industrial capabilities to all nations of the world is a desirable goal, the use and abuse of offset to this end is discussed and conclusions drawn.