Required and obtained equity returns in privately held businesses: the impact of family nature—evidence before and after the global economic crisis

This paper analyses the impact that family businesses have on the minimum rate of return required by owner–investors (k _e ) and on the equity returns (ROEaT) obtained in privately held businesses. This influence is analysed for an economic growth period (2002–2007) and for a crisis period (2008–2013) in the European context. Moreover, our study also explores the family nature through the heterogeneity among family firms in their required and obtained equity returns by considering the degree of family involvement in the ownership and management. Our findings reveal that while family businesses always have a negative and significant impact on k _e regardless of the economic environment, they only have a positive and significant impact on ROEaT in economic upturns. Thus, non-economic goals do not necessarily imply underperformance but may involve a lower cost of equity capital in privately held family businesses than in privately held non-family businesses, which also leads to differences in the value creation.     

Robustness of power-law networks: its assessment and optimization

Many practical complex networks, such as the Internet, WWW and social networks, are discovered to follow power-law distribution in their degree sequences, i.e., the number of nodes with degree \(i\) in these networks is proportional to \(i^{-\beta }\) for some exponential factor \(\beta > 0\). However, these networks also expose their vulnerabilities to a great number of threats such as adversarial attacks on the Internet, cyber-crimes on the WWW or malware propagations on social networks. Although power-law networks have been found robust under random attacks and vulnerable to intentional attacks via experimental observations, how to better understand their vulnerabilities from a theoretical point of view still remains open. In this paper, we study the vulnerability of power-law networks under random attacks and adversarial attacks using the in-depth probabilistic analysis on the theory of random power-law graph models. Our results indicate that power-law networks are able to tolerate random failures if their exponential factor \(\beta \) is \(<\)2.9, and they are more robust against intentional attacks if \(\beta \) is smaller. Furthermore, we reveal the best range \([1.8, 2.5]\) for the exponential factor \(\beta \) by optimizing the complex networks in terms of both their vulnerabilities and costs. When \(\beta < 1.8\), the network maintenance cost is very expensive, and when \(\beta > 2.5\) the network robustness is unpredictable since it depends on the specific attacking strategy.     

Substitution, availability and preferences in earnings management: empirical evidence from China

Our study analyzes financial reporting data on earnings management from a rapidly changing economy—the PRC. Some Chinese regulatory reforms allow for an easy identification of incentives to engage in both accounting and real earnings management activities. In addition, straightforward economic reasoning suggests that firms incur different costs for pursuing these strategies, which leads to the possibility of a hierarchy or ranking of different earnings management practices. Our results show that accounting and real earnings management activities were significantly higher for firms in danger of missing a regulation imposed performance threshold. After controlling for the availability of the different instruments, our results provide weak evidence for a ranking of different earnings management activities.

Card-based production control: a review of the control mechanisms underpinning Kanban,ConWIP, POLCA and COBACABANA systems

Since the emergence of Kanban, there has been much research into card-based control systems. This has included attempts to improve Kanban and/or develop alternative systems, particularly ConWIP (i.e. Constant Work-In-Process), POLCA (i.e. Paired-cell Overlapping Loops of Cards with Authorisation) and COBACABANA (i.e. Control of Balance by Card-Based Navigation). Yet, to date, no unifying review of the mechanisms underpinning these systems has been presented. As a consequence, managers are not provided with sufficient support for choosing an appropriate system for their shop; and researchers lack a clear picture of how the mechanisms compare, leading to several misconceptions. This paper reviews the control mechanisms underpinning the Kanban, ConWIP, POLCA and COBACABANA systems. By comparing the ‘control mechanism’ (i.e. the loop structure and card properties) and ‘contextual factors’ (i.e. routing variability, processing time variability, and whether stations are decoupled by inventory or the flow of jobs is controlled), we provide managers with guidance on which system to choose. For research, we show for example that most criticisms put forward against Kanban systems, e.g. to justify the development of ConWIP, POLCA or COBACABANA, only apply to work-in-process Kanban systems and not to production Kanban systems. Future research directions for each control system are outlined.     

Corporate social responsibility: the organizational view

Designing strategies for corporate social responsibility (CSR)-practice nowadays has become essential for organizations. Notwithstanding, how organizations appear internally in a socially responsible context toward their employees has been insufficiently investigated. This study aims at ascertaining how Internal CSR can be conceptualized as well as how it affects employees’ commitment. To do so, the manifestations of Internal CSR are discussed based on social identity theory and further literature, while the developed research model is checked for suitability through a survey generating 2081 employee responses from an international pharmaceutical company. As one result, it can be stated that the factors proposed to constitute Internal CSR are confirmed. Further, the findings entail the following conclusions: Internal CSR has a notable influence on employees’ Affective Organizational Commitment whilst relatively moderate impacting Normative Organizational Commitment. Additionally, Affective Organizational Commitment adopts a mediating function regarding Normative Organizational Commitment.     

Giddens’ structuration theory and its implications for management accounting research

The purpose of this essay is to briefly review the pillars and the rationale of Giddens’ theory of structuration, and offer a snapshot of the impact of these ideas on research in management accounting. Conceptualised as a way of making sense of social life, structuration theory represents a sensitizing device for researchers, which has be drawn upon “in a selective way in thinking about research questions or interpreting findings” (Giddens, Modernity and self-identity: Self and society in the late modern age, 1991). In the following pages the duality of structure, the modalities of structuration, the concept of double positioning, the theory of the subject as well as concepts such as ontological security, routines or trust will be reviewed as essential elements of a vocabulary originally framed within Giddens’ The constitution of society (1984). The essay ends sketching the work of Macintosh and Scapens (Management accounting and control systems—an organisational and behavioural approach, 1990), who broke new ground to interpret management accounting systems in light of structuration theory terms and concepts, as well as some of the more recent works in accounting that have built on Giddens’ latest ideas on the The Consequences of Modernity (1990).

Practical implications of the resource-based view

Managers use many decision making tools when developing a firm’s strategic direction. Ideally, such tools yield a good solution for an acceptable amount of application effort. This paper presents the results of an experimental research project that compares the effectiveness of a theory-based strategic decision making tool, theVRIO-framework, with two alternative decision making heuristics for predicting the stock-market performance of different companies. First, we assess how the predictions of theVRIO-framework contrast with decisions based on “gut feeling” using the forecasts derived from a recognition-based decision making tool, theRecognition Heuristic. Secondly, theVRIO-framework’spredictive power is compared to predictions derived fromAnalyst Ratings. Our results suggest that the predictions of theVRIO-framework are superior to those of theRecognition Heuristic and theAnalyst Ratings, supporting the practical usefulness of resource-based theory. We conclude that resource analysis is important to strategic decision making and discuss the implications of our findings for future research and management practice.     

Darwinism,organizational evolution and survival: key challenges for future research

How do social organizations evolve? How do they adapt to environmental pressures? What resources and capabilities determine their survival within dynamic competition? Charles Darwin’s seminal work The Origin of Species (1859) has provided a significant impact on the development of the management and organization theory literatures on organizational evolution. This article introduces the JMG Special Issue focused on Darwinism, organizational evolution and survival. We discuss key themes in the organizational evolution research that have emerged in recent years. These include the increasing adoption of the co-evolutionary approach, with a particular focus on the definition of appropriate units of analysis, such as routines, and related challenges associated with exploring the relationship between co-evolution, re-use of knowledge, adaptation, and exaptation processes. We then introduce the three articles that we have finally accepted in this Special Issue after an extensive, multi-round, triple blind-review process. We briefly outline how each of these articles contributes to understanding among scholars, practitioners and policy makers of the continuous evolutionary processes within and among social organizations and systems.     

OB and entrepreneurship: The reciprocal benefits of closer conceptual links

One widely accepted definition of the field entrepreneurship (Venkataraman, 1997, p. 6) suggests that it is “A scholarly field that seeks to understand how opportunities to bring into existence ‘future’ goods and services are discovered, created, and exploited, by whom, and with what consequences.” This definition indicates that entrepreneurship involves a complex process in which specific individuals recognize opportunities and then act to convert them into tangible economic benefits (e.g. by creating new ventures). It is the central thesis of this paper that entrepreneurs play a key role in this process and that because they do, OB — the branch of management science that focuses on human behavior — can contribute much to understanding the entrepreneurial process. More specifically, OB can help answer questions long addressed by entrepreneurship researchers such as these:

• 1.(1) Why do some persons but not others choose to become entrepreneurs?
• 2.(2) What factors influence entrepreneurs' success? and
• 3.(3) Why do some persons, but not others, recognize economically advantageous opportunities?

     

5 Bringing National Culture to the Table: Making a Difference with Cross‐cultural Differences and Perspectives

Abstract

Cross‐cultural research has achieved a front‐and‐center role in management and social psychology. In this chapter, we attempt to address the fundamental issue of what makes cross‐cultural research valuable. In doing so, we first summarize major methodological and conceptual themes across recent reviews. We then raise the question about the criticality of cross‐cultural differences, i.e., whether cross‐cultural differences are required for research in this domain to matter. Most efforts exerted by cross‐cultural researchers have been directed toward uncovering and explaining cross‐cultural differences, or finding better ways to do so. However, differences per se do not necessarily make an important difference in advancing knowledge. Instead, we argue that a more fundamental value of cross‐cultural research is the diverse perspectives it offers for theoretical innovation. Using Wagner and Berger’s (1985 Wagner, D.G. and Berger, J. 1985. Do sociological theories grow?. American Journal of Sociology, 90: 697–728. [Crossref], [Web of Science ®] , [Google Scholar]) typology, we examine how the inclusion of “other cultural” perspectives has contributed to knowledge growth in social psychology and organizational behavior. We conclude with suggestions for how the field can further realize the inherent benefits of diverse cultural perspectives in future research.     

Potenzialanalyse im Transformationsprozess: strategisch ausgerichtet und dialogisch angelegt

Potential analysis in a transformation – a strategic and dialogic approach in leadership development. The author describes the integration of ?potential analysis“ in a transformation process. It shows how corporate change and management development strategies can be related, and how the process of “potential analysis“ was conducted in such a way as to contribute to corporate change. The article presents the different instruments which were used and emphasizes the importance of an open dialogue between managers and board members.     

A temporal investigation of the direct,interactive, and reverse relations between demand and control and affective strain

Abstract

Few studies have tested how stressors affect outcomes over time. We sought to extend the literature by means of a longitudinal study testing for direct, interactive, and causal relations between demands and control and affective strain. We extended prior work testing causal relationships for Karasek's (1979 Karasek, R.A. Jr. 1979. Job demands, job decision latitude, and mental strain: Implications for job redesign. Administrative Science Quarterly, 24: 285–307. [Crossref], [Web of Science ®] , [Google Scholar]) Job Demand-Control (JDC) model by examining both the effects of demands and control on strain and in turn the effects of strain on demand and control. We tested our hypotheses using hierarchical linear modelling with a military sample of 1539 soldiers who completed six waves of survey data at 3-month time lags. The results replicate earlier cross-sectional studies reporting effects of work characteristics on strain; however, in our study these effects did not persist past three months. The results also provide evidence for reverse causal effects such that higher strain was associated with higher subsequent work overload and lower control over a six month time period. Similar to past research, we did not find support for the interactive effects of work overload and control on strain. We discuss the implications of our findings for theory and practice (such as the optimum time for applying interventions during the management of change), especially in terms of understanding the specific time lags for different stress–strain associations and the need for additional theories to explain reverse relationships.     

The educational orientation of participants in postgraduate managerial study programmes in Poland

The health care industry in Taiwan has faced many challenges in recent years. To tackle those challenges, many hospitals in Taiwan began using management techniques used in other industries. As a result, quality management has become important within Taiwan's health care industry. This study provides a perspective on how this health care industry, by developing both quality control circle (QCC) practices and organizational learning techniques, responded to those challenges. In this study, the authors conducted a comprehensive review of studies published between 1995 and 2007 in Taiwan. The review focused on the quality management, QCC, organizational learning and health care organization aspects reported in previous studies. The authors applied the 4Is (intuiting, interpreting, integrating and institutionalizing) conceptual framework of Crossan et al. (1999 Crossan, M. M., Lane, H. W. and White, R. E. 1999. An organizational learning framework: From intuition to institution. Academy of Management Review, 24(3): 522–537. [Crossref], [Web of Science ®] , [Google Scholar]) (Crossan, M.M., H.W. Lane, and R.E. White. 1999 Crossan, M. M., Lane, H. W. and White, R. E. 1999. An organizational learning framework: From intuition to institution. Academy of Management Review, 24(3): 522–537. [Crossref], [Web of Science ®] , [Google Scholar]. An organizational learning framework: From intuition to institution. Academy of Management Review 24, no. 3: 522–37). in their discussion of the linkage between quality improvement activities and organizational learning. The results revealed the existence of a link between organizational learning and QCC activities. In addition, the reviewed QCC activities facilitated organizational learning and contributed to health care quality improvements in the studied hospitals. Finally, QCC practices in hospitals facilitated dissemination of organizational learning concepts in those hospitals.     

Ownership concentration beyond good and evil: is there an effect on corporate performance?

In this paper, we analyze the relationship between ownership concentration and firm performance, while accounting for the endogeneity of the ownership structure, a potential curvilinearity of the performance effect, differences in corporate governance systems, and alternative performance measures. Using a sample of 1,079 firms from 8 countries we find evidence for a curvilinear effect of ownership concentration on firm performance, which becomes insignificant after controlling for endogeneity. Hence, our results support the findings by Demsetz and Villalonga (J Corp Fin 7(3):209?C233, 2001). More research is needed to disentangle the contradictory findings in prior works.     

Algorithms for testing occurrences of length 4 patterns in permutations

In this paper linear time sequential and optimal parallel algorithms for testing pattern involvement for all length 4 permutations are described. This is an improvement as the previous best sequential algorithms, for most of these pattern require \(O(n\log n)\) time. Our parallel algorithms can be implemented in \(O(\log n)\) time with \(n/\log n\) processors on the CREW PRAM model, or alternatively in \(O(\log \log \log n)\) time with \(n/\log \log \log n\) processors on a CRCW PRAM PRAM model. Parallel algorithm can also be implemented in constant time with \(n\log ^3 n\) processors on a CRCW PRAM model. The previous best parallel algorithms were available for only some of these patterns and took \(O(\log n)\) time with n processors on the CREW PRAM model.