Twice as Smart? The Importance of Managers’ Formative‐Years’ International Experience for their International Orientation and Foreign Acquisition Decisions

This study examined how top management team's (TMT) international orientation influences perceptions of environmental uncertainty and how these perceptions impact international strategic decisions, in particular regarding ownership stakes taken in foreign acquisitions. We highlighted the need for the concept of TMT international orientation to encompass executives’ formative‐years’ international experiences along with their international career experiences and nationalities. Empirical tests based on a sample of 2122 international acquisitions completed by 561 UK firms over the period 1999–2008 showed that TMT international orientation positively moderated the negative impact of cultural differences and host country risk on acquisition ownership stakes. The results underscored the importance of considering decision‐makers’ attributes due to their experiences at a young age, beyond their demographic characteristics or professional experience, in the context of international strategic choices. We also discussed some implications of one of the possible consequences of executives’ formative international experience, namely biculturalism, for international business.     

BUSINESS COMBINATION DECISIONS: A U.S./CANADA STUDY*

The purpose of this paper is to clarify the motives behind business combination decisions. Twenty-one favorable characteristics associated with the motivations for business combinations were selected to serve as the basis for an empirical survey. Our analysis revealed that there are seven motivational variables of varying import and that the motivations underlying business combination decisions are similar for U.S. and Canadian executives.     

Analysis of human capital development in Puerto Rico: summary and conclusions

This study explored whether perceptions of organizational business ethics differ by hierarchical levels. The study sample included more than 40,000 executives, mid-level managers and non-managerial employees from business organizations in six countries: Brazil, China, Germany, India, the UK and the US. We found that executives provided the most positive assessment of ethical business culture within their respective organizations. Employees’ assessments were less positive, and mid-level managers’ assessments fell in the middle. Organizational size and respondents’ age were not related to differences in responses. Statistically significant differences among hierarchical levels were found in Brazil, the US, Germany, the UK and China. Differences were not significant in India. Executives with longer tenure at the same organization tended to provide higher ratings of organizations’ ethical cultures, while managers’ and employees’ ratings tended to decrease with time.     

Fairness and nanotechnology concern

Research suggests that fairness perceptions matter to people who are asked to evaluate the acceptability of risks or risk management. Two separate national random surveys (n = 305 and n = 529) addressed Americans’ concerns about and acceptance of nanotechnology risk management in the context of the degree to which they view scientists and risk managers as fair. The first survey investigated general views about scientists across four proposed dimensions of fairness (distributional, procedural, interpersonal, and informational). The results show that respondents who believe that the outcomes of scientific research tend to result in unequal benefits (distributional fairness) and that the procedures meant to protect the public from scientific research are biased (procedural fairness) were more concerned about nanotechnology. Believing scientists would treat them with respect (interpersonal fairness) and ensure access to information (informational fairness) were not significant predictors of concern. The second study also looked at these four dimensions of fairness but focused on perceptions of risk managers working for government, universities, and major companies. In addition to concern, it also examined acceptance of nanotechnology risk management. Study 2 results were similar to those of study 1 for concern; however, only perceived informational fairness consistently predicted acceptance of nanotechnology risk management. Overall, the study points to the value of considering fairness perceptions in the study of public perceptions of nanotechnology.     

Mexican and Swedish Managers' Perceptions of the Impact of EIS on Organizational Intelligence,Decision Making,and Structure*

Although information technologies in business organizations around the world may be very similar, the meanings conveyed through the technologies may be dependent on managerial values and national culture. Cultural differences need to be understood before information technology developed for organizations in one country can be effectively implemented in organizations in another country. Drawing on survey responses from managers using Executive Information Systems (EIS) across many organizations in Mexico, Sweden, and the United States, the current study examined whether cultural differences influence perceptions of the relationship between Executive Information Systems' use and various outcomes related to decision-making behaviors and processes. The study found significant differences, predicted by cultural factors, in the impact of EIS use on senior management decision making. The findings confirm the notion that IT is used by executives to reinforce the decision-making behaviors valued in their culture.     

Health care fraud and abuse. What physician executives need to know

Fraud and abuse, which can occur in all industries, also exist in the health care industry. This problem is compounded by the reality that "American medicine, although undergoing evolution, now faces changes of a magnitude that has never before been encountered." These changes are creating new realities for physician executives and also new challenges. As there are changes in business practices, there will be changes in how fraud occurs in health care. Physician executives need to be sensitive to the possibility of fraud and abuse as an unwanted component in medical losses in managed care systems.     

Developing alliances between U.S. and Portuguese executives: The impact of executive courage

This study represents an effort to gain insights into the differences between U.S. and Portuguese executives with regard to their attitudes toward the role of executive courage in the business organization. Eighty Portuguese and 40 American executives participated in the study. Four research questions were formulated and investigated. Results show that the two groups of executives tended to be more similar than different. However, some statistically significant differences between the two samples were detected. Portuguese organizations exhibited significantly more control over the actions of their executives and rewarded efficiency rather than effectiveness, when compared to American business organizations. Implications for strategic alliances between Portuguese and American executives are discussed and recommendations for future research are provided.     

Physician executives and communication.

This article presents the results of a pioneering survey of American College of Physician Executives members' perceptions of just how skilled they are as communicators and where they feel the need for further training. Listening skills were rated most important and most in need of enhancement, but physician executives agree that managerial communication skills across the board are vital to the success of a health care organization.     

“Know What to Do If You Encounter a Flash Flood”: Mental Models Analysis for Improving Flash Flood Risk Communication and Public Decision Making

Understanding how people view flash flood risks can help improve risk communication, ultimately improving outcomes. This article analyzes data from 26 mental models interviews about flash floods with members of the public in Boulder, Colorado, to understand their perspectives on flash flood risks and mitigation. The analysis includes a comparison between public and professional perspectives by referencing a companion mental models study of Boulder‐area professionals. A mental models approach can help to diagnose what people already know about flash flood risks and responses, as well as any critical gaps in their knowledge that might be addressed through improved risk communication. A few public interviewees mentioned most of the key concepts discussed by professionals as important for flash flood warning decision making. However, most interviewees exhibited some incomplete understandings and misconceptions about aspects of flash flood development and exposure, effects, or mitigation that may lead to ineffective warning decisions when a flash flood threatens. These include important misunderstandings about the rapid evolution of flash floods, the speed of water in flash floods, the locations and times that pose the greatest flash flood risk in Boulder, the value of situational awareness and environmental cues, and the most appropriate responses when a flash flood threatens. The findings point to recommendations for ways to improve risk communication, over the long term and when an event threatens, to help people quickly recognize and understand threats, obtain needed information, and make informed decisions in complex, rapidly evolving extreme weather events such as flash floods.     

THE PLANT LOCATION DECISION IN MULTINATIONAL MANUFACTURING FIRMS: AN EMPIRICAL ANALYSIS OF INTERNATIONAL BUSINESS AND MANUFACTURING STRATEGY PERSPECTIVES

The paper combines perspectives from international business and manufacturing to examine multinational plant location decisions. The location choice in manufacturing is between integrated and independent plants, while the international choice is between a foreign and domestic plant relative to their headquarters' country. The study empirically investigates whether these choices have different plant location determinants using data from a survey of plant managers of large, multinational firms. We find more evidence that the manufacturing choices benefit from consideration of international business issues than vice versa. However, managers rank determinants associated with manufacturing strategy considerably higher than those associated with intemational business.     

Physician executives in the 21st century: new realities, roles, and responsibilities

This article is based in part on responses from 150 physician executives who participated in an interactive discussion of future trends at the American College of Physician Executives' 1999 Spring Institute and Senior Executive Focus, in Las Vegas, Nevada, on May 13, 1999. The session included electronic polling on 40 predictions, such as the future composition of the clinical workforce and how technology will affect the way that medicine is practiced and the patient-physician relationship. The prediction for physician executives? A growing number of physician executives will find themselves at the top of their careers in the next decade. The physician executive of the future will have a broad array of management opportunities and career choices. More doctors will be managers. Physician executives will work at every level of health care organizations, across the continuum of care, from large complex urban systems to small rural settings.     

An international study of ethics

This study presents the results of a survey of graduate students from three cultural backgrounds. English, German, and American business students responded to an eleven-item survey designed to assess one's beliefs about what is necessary to succeed in graduate business programs. The results indicate that the attributes which students believe are required to succeed differ among cultures, with the greatest differences occurring between the American and European respondents.     

Physician executives report high job satisfaction. Summary of findings from a survey of senior physician executives

The role of the senior physician executive is well established in American hospitals and health systems. There is little research, however, on overall physician executive job satisfaction, their perceptions of their organizational role and job performance, or their views of the medical staffs with which they work. A recent survey of physician executives examined these and other areas. It found physician executives to be quite satisfied with their jobs. What follows is a summary of the findings. An article based on the survey will be featured in a future issue of The Physician Executive.     

Ethical frameworks and ethical behavior: A survey of business students

This study investigated the efficacy of collegiate attempts to help students cope with ethical dilemmas. Data were collected from 674 business students on their ethical frameworks and ethical behaviors. Modest support was found for the relationship between the frameworks used for decision making and the choices made when confronted with an ethical dilemma. Furthermore, it was found that ethical frameworks were generally resistant to change over time while behavioral choices did change over time.     

Attitudes Toward Managing Hazardous Waste: What Should Be Cleaned Up and Who Should Pay for It?

Hazardous waste policy in the United States uses a liability-based approach, including strict, retroactive, and joint and several liability. To assess attitudes toward these basic principles of liability, and toward priorities for clean-up of wastes, a questionnaire was mailed to legislators, judges, executives of oil and chemical companies, environmentalists, and economists. The questionnaire consisted of abstract, simplified cases, which contrasted basic principles rather than dealing with real-world scenarios. Subjects were asked how they would allocate clean-up costs between companies and government as a function of such factors as adherence to standards, adoption of best available technology (BAT), and influence of penalties on future behavior. Most subjects felt that, if the company followed government standards or used the best available technology (BAT), it should pay for only a portion of the clean-up cost, with the government paying the rest. In general, responses did not support the principles underlying current law–strict, retroactive, and joint-and-several liability. Most subjects were more interested in polluters paying for damages than in deterrence or future benefit–even to the extent that they would have "harmless" waste sites cleaned up. A bias was found toward complete clean-up of some sites, or "zero risk." Different groups of subjects gave similar answers, although more committed environmentalists were more willing to make companies pay and to clean up waste regardless of the cost.     

Does Ethnic Diversity Mean Cultural Diversity?

This paper examines the degree of cultural diversity between two ethnic groups in South Florida. The cultural attitudes and causal attributions for unethical work behavior of 269 Anglo and Hispanic business graduate students and of 255 Anglo and Hispanic business executives were investigated. Findings from t-test comparisons for both of these samples suggest a strong agreement between Hispanics and Anglos in their individualism and collectivism orientation, as well as in their process of justifying potentially unethical decisions. Implications for theory, research and practices will be discussed. This revised version was published online in July 2006 with corrections to the Cover Date.     

Health reform bridging gaps between physician executives and CEOs

Recently, Hospitals & Health Networks reported the results of a study it conducted, in conjunction with Premier Health Alliance, Inc., and among hospital CEOs and COOs to gauge their preparedness and level of concern about various health care reform issues. Because administrators and physician executives are not always in agreement, we wondered how physician executives would rate the same issues. To find out, the American College of Physician Executives polled some members and posed the original survey questions. The results and subsequent interviews revealed that health care reform appears to be a catalyst in bringing the two factions closer in their thinking.     

Canadian executives' perceptions of the U.S. and Canadian free-trade agreement and their potential effects on decision-making

This study analyzes executives' perceptions of free trade negotiations and the potential effects of these perceptions on strategy. Top executives in 300 major Canadian industrial firms were surveyed to test two propositions. They are: (1) Executives tend to perceive that free trade would lead to market expansion which, in turn, would increase trade, production, and investment efficiencies and (2) Decisions in business strategy formulation and implementation may be influenced by the perceptions of the trade policy.The propositions were tested with the following results. Support for proposition one is mixed. Support for proposition two, however, is for the most part predominant.     

Management competencies required in ambulatory care settings

A study was conducted to identify the most important competencies physician executives in medical groups and other ambulatory settings will need to have in the next five years. The specific job skills, knowledge, and abilities (SKA) that physician executives will need to acquire these competencies were also explored. The Delphi techniques were used to analyze responses from two surveys from members of the American College of Medical Practice Executives. The most important competencies were grouped into 13 management domains, each with specific SKAs. "Managing health care resources to create quality and value" and "fundamentals of business and finance" were rated as the most important competencies. The most frequently rated SKA was the "ability to build and maintain credibility and trust."     

The MBA mystique

Is an MBA the solution for you? Do physician executives need to have a business degree to compete in today's competitive marketplace? What are clients looking for when they make hiring decisions? The answers may surprise you. This column is an attempt to dispel myths about physician executives and the MBA degree. Clients want to attract and hire physician executives who possess sometimes intangible skills--with or without the MBA credential. These intangible skills include the ability to educate other physicians to the new health care realities, a sales orientation emphasizing effective communication that focuses on patients and payers as customers, comfort with ambiguity, flexibility, and tact and sensitivity in negotiations.