Should You Buy Your Customer's Values? On the Transfer of Moral Values in Industrial Purchasing

This article discusses a transfer of moral values between purchasing and supplying organisation in the manufacturing sector. In the first part, the relevant literature is discussed to glean criteria, which could facilitate such a transfer. Given a scarcity of research into ethics in purchasing, the literature review is extended into related fields, such as total quality management, environmental purchasing in retailing and minority vendor programmes in the U.S. In the second part, the question is raised whether such a transfer can at all lay claim to being of moral value. The process is screened against established ethical theories, which are found to support it. Finally, the financial impact of such a policy on the supplier is considered. This revised version was published online in July 2006 with corrections to the Cover Date.     

The More You Give,the More You Get? The Impact of Corporate Political Activity on the Value of Government Contracts

Firms have been relying on corporate political activity (CPA) to achieve access and to affect public policy change for decades. Most research on CPA and public policy outcomes has implicitly assumed that access afforded by CPA results in an either‐ or (dichotomous) policy outcome such as votes or election outcomes. Based on recent research on how CPA can be a strategic signal to government agencies, however, it is possible that CPA may in fact, have a linear association with public policy outcomes as opposed to merely a dichotomous one, and we explore this relationship in the unique public policy context of government contract awards. We specifically analyze how higher levels of CPA impact the financial value of government contracts awarded to firms. Utilizing the S&P 1500 sample for 16 years (1997–2012) we find that CPA has a one to one association with the value of contract awards, indicating that CPA and public policy outcomes can be linked in ways that motivate firms to continuously invest in CPA, to maximize their political rents. We discuss the theoretical and practical implications of this finding in light of extant research on CPA and its direct impact on public policy outcomes.     

You have the job you wanted--now what?

We've had calls from physicians who finally have the medical management job they always wanted and then a month later they wondered why they wanted it. I asked seven physician executives to come together as a group and talk to me about this issue. I also asked them what skills they needed most when they first got the job and, as time passed, which skills continued to be most useful. I have not used their names because they were open enough to talk about some very sensitive issues.     

Should the physician executive be the physician's advocate?

Medical staff commonly want to know if a prospective physician executive will serve as their advocate to management. A successful physician executive must like and respect physicians. But the question of advocacy must be answered thoughtfully, because the candidate must not imply that he or she will defend any action by any physician. A three-part conditional response is advisable.     

Should I Stay or Should I Go Now? Or Should I Wait and See? Influences on Wildfire Evacuation Decisions

As climate change has contributed to longer fire seasons and populations living in fire‐prone ecosystems increase, wildfires have begun to affect a growing number of people. As a result, interest in understanding the wildfire evacuation decision process has increased. Of particular interest is understanding why some people leave early, some choose to stay and defend their homes, and others wait to assess conditions before making a final decision. Individuals who tend to wait and see are of particular concern given the dangers of late evacuation. To understand what factors might influence different decisions, we surveyed homeowners in three areas in the United States that recently experienced a wildfire. The Protective Action Decision Model was used to identify a suite of factors previously identified as potentially relevant to evacuation decisions. Our results indicate that different beliefs about the efficacy of a particular response or action (evacuating or staying to defend), differences in risk attitudes, and emphasis on different cues to act (e.g., official warnings, environmental cues) are key factors underlying different responses. Further, latent class analysis indicates there are two general classes of individuals: those inclined to evacuate and those inclined to stay, and that a substantial portion of each class falls into the wait and see category.     

Should government and company planners influence each other?

With the National Plan of 1965, government planning in Britain got off to a poor start. Now, with the Governement's green paper, The Task Ahead, it seems about to be reborn. In this article the author argues the case for closer co-operation between planners in government and planners in business along the lines of the planning dialogue which occurs in NEDC. He answers critics who complain of government pressure on industry and the undue influence of business on government, and suggests that “consultative planning is essential if national plans to be made flexible and realistic, and if company plans are to be made with the national interest in mind”.     

Does the capital of social capital matter? Relational resources of the board and the performance of Brazilian companies

Based on theories of social capital, in this study, we seek to assess the impact of a board’s social capital on the market value of companies listed on the Brazilian stock exchange. As our indicator of social capital, we use the relational resources identified in the direct, indirect and heterogeneous ties of the board. Employing panel data from 508 observations, our results indicate that heterogeneous relational resources have a stronger and more significant influence than the resources available from board members’ direct relationships. Additionally, as the effects of board interlock are endogenously determined by several factors related to the firm level, we seek to mitigate the endogeneity problem using models of instrumental variables and simultaneous equations. Our hypotheses were consistent after controlling for endogeneity. We also check whether the board’s social capital could present a U-inverted effect on the market value. This relationship was only plausible in social capital by indirect ties. Finally, we isolate the effect of relational resources within and between industries on Tobin’s Q. There was no significant effect through interlocks within the same industry. However, ties with companies in several other industries were significant.     

Is it the Brazilian Way? Extending the Comparison of Public and Private Organizations

This study investigates the differences in select organizational characteristics, managerial practices and work attitudes among 670 public and private sector workers in Brazil. The results indicate that in some aspects there is a moderation effect by type of organization. For example,when public employees score high on autonomy and task significance, perceive organizational practices as favourable, and keep membership in the same organization, they tend to be more satisfied than private sector workers. Overall, the findings highlight the need for more international comparisons to gain a better understanding of the public-private distinction.     

Following the Herd or Not?: Patterns of Renewal in the Netherlands and the UK

How do large firms conduct their strategic renewal journeys in an increasingly turbulent environment? Are there generic industry patterns, or are these renewal journeys country- or firm-specific? To answer these questions, we examine the relative incidence of external versus internal and explorative versus exploitative renewal actions, and their speed, in leading Dutch and UK financial service companies using longitudinal data. The context, content and process dimensions of strategic renewal are distinguished, and research questions about these attributes are formulated and investigated using new metrics. Findings show that while exploration/exploitation ratios are fairly similar for firms across the entire industry, systematic differences are evident between the external/internal renewal ratios of Dutch and UK firms, and that speed of renewal is largely determined at the firm level. Thus we find that industry-, country- and firm-specific factors all influence journeys of strategic renewal in distinctive and complementary ways.     

Tall claims? Sense and nonsense about the importance of height of US presidents

According to both the scientific literature and popular media, all one needs to win a US presidential election is to be taller than one's opponent. Yet, such claims are often based on an arbitrary selection of elections, and inadequate statistical analysis. Using data on all presidential elections, we show that height is indeed an important factor in the US presidential elections. Candidates that were taller than their opponents received more popular votes, although they were not significantly more likely to win the actual election. Taller presidents were also more likely to be reelected. In addition, presidents were, on average, much taller than men from the same birth cohort. The advantage of taller candidates is potentially explained by perceptions associated with height: taller presidents are rated by experts as ‘greater’, and having more leadership and communication skills. We conclude that height is an important characteristic in choosing and evaluating political leaders.     

Encounter Satisfaction in E‐tailing: Are the Relationships of Order Fulfillment Service Quality with its Antecedents and Consequences Moderated by Historical Satisfaction?

This study focuses on whether historical satisfaction with an e‐tailer (HSat) moderates baseline relationships in order fulfillment service quality models. HSat is defined as satisfaction with the e‐tailer spanning all transactions except the current encounter. Encounter satisfaction (ESat) is defined as the consumer's satisfaction with the current transaction. In the baseline model, four order fulfillment service quality (OFSQ) dimensions managerially relevant to consumer e‐tailing are examined: timeliness, availability, condition, and billing accuracy. The baseline structural model results support that OFSQ dimensions impact ESat, which in turn predicts two key consequences—repurchase intention and word‐of‐mouth. Adaptation theory is used to model the role of HSat, while controlling for transaction recency, vendor familiarity, and competitive pricing. HSat is shown to have pervasive main and interaction effects upon all baseline model relationships. These moderation effects have great managerial relevance. For example, the results illustrate a phenomenon similar to the service recovery paradox, wherein when a negative service encounter is followed by a highly positive service recovery event, previously dissatisfied consumers, as compared to previously satisfied consumers, respond with higher levels of current satisfaction. For managers, this finding is encouraging because policies that create highly positive events for consumers can thus supersede past negative experiences. Our results show however that HSat cannot be completely superseded by current OFSQ or current ESat.     

Who knows what? Reconfiguring the governance and the capabilities of the supply chain between physical and digital processes in the fashion industry

Abstract

On the basis of an exploratory multiple-case qualitative longitudinal study in the fashion industry, this article describes how digital technologies enabled choices among different types of supply chain governance. In doing so, this study responds to calls for governance-oriented longitudinal explorations and suggests an alternative path of governance choices in which the digital technologies become the platform that allows a dynamic discourse between outsourcer and outsourcee. Our results show that, when firms decide to leverage their performances through the adoption of information technology, they need to define their knowledge transfer capacities in order to adopt the appropriate type of governance model. With this article, we contribute to the global value chain literature adding to the knowledge transfer dimension.     

Whose company is it? The concept of the corporation in Japan and the west

This article examines the differences in the concept of the corporation and their possible implications for corporate performance, between Japan on the one hand and the United States and Europe (Germany, UK and France) on the other. The Japanese concept is used as the standard against which the other models are compared. The concept of the corporation is defined here as the answer to the question: ‘In whose interest should the firm be managed?’¹ This is the foundation on which corporate governance and the monitoring system for the CEO is built. The analysis is focused on large publicly-held corporations with widely diffused ownership.     

The Wages of Sin? Illegal Drug Use and the Labour Market

We use data from the British Crime Survey (BCS) to analyse the relationship between illicit drug use and labour market outcomes for a sample of men and women aged 16–25. In using these data we highlight a serious design flaw in the BCS questionnaire structure that presents a serious barrier to statistical modelling of drug use at the individual level. We propose a simple way of overcoming this problem and proceed to estimate a model of occupational attainment jointly determined with unemployment and current drug use, conditional on past drug use. Separating the commonly abused drugs into a ‘hard’ and ‘soft’ category, we find that past hard drug use has a significant positive association with current unemployment, but find no significant association between past hard or soft drug use and occupational attainment. We also find no significant association between current drug use and attainment, although we observe that current drug use is associated with current unemployment.     

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.     

Public or Private? Public Corporations,Companies and the Decline of the Middle Ground

In the era of New Public Management in the Anglo-Saxon countries, governments have become infatuated with things private and disparaging of things public. This dramatic attitudinal shift has been reflected in the importation of private sector business method into so much of what government does, and in the championing of privatization in its various forms as a way of reducing the size and importance of public sectors. The change represents a retreat from the more traditional acceptance that a valuable social purpose was served by middle ground structures and activities located in the outer parts of these public sectors, i.e., between the highly politicised cores of government systems and the highly commercialised institutions of private enterprise. In particular, this article argues that the form of the public (or government, statutory or crown) corporation epitomised such social value, and that the state-owned company which is now so often replacing it represents an abandoning of social value.