QALYs versus WTP.

Quality adjusted life years (QALYs) and willingness to pay (WTP) are alternative measures of the value of reductions in health risk that are often used in evaluating environmental, health, and safety practices. Although both methods are based on individual preferences, the underlying assumptions differ. The different bases yield systematically different conclusions about the relative value of reducing health and mortality risks to individuals that differ in age, preexisting health conditions, income, and other factors. The choice of which method to use depends on judgments about what constraints should be placed on individual preferences and what factors should be considered in aggregating preferences across people.     

Successful innovation through inter-company networks

Companies are now investing in the new technologies of the 1990s. This article deals with the central question of why and how companies work together on technological innovation. First the author looks at the reality of technological innovation, and review reasons why companies might want to work together in this area. They then uncover the different types of collaboration involved in technological innovation. These forms are innovation networks, and they identify several success factors for innovation networks.     

Comparing Expressed and Revealed Preferences for Risk Reduction: Different Hazards and Question Frames

Studies often note the wide differences that exist in costs per death avoided across U.S. federal programs and regulatory contexts. This paper explores two new, related explanations for these differences. First, it argues that the patterns of revealed preferences (public allocations) may be related to public values, which are measured here through subjects' expressed preference responses to a contingent valuation survey regarding risk reduction. Subjects' expressed values are compared to actual (and proposed) costs of safety regulations for a similar set of hazards. We discover strong congruence in the ranking of expressed values and actual values. Second, the paper presents the results of a subsequent survey that investigates why the patterns observed in the first survey might occur. It suggests that one reason for the observed similarities between revealed and expressed preferences may be in how choices are framed. The paper hypothesizes that both subjects and decision makers may frame valuation decisions in the same way: as percentage changes from the reference point provided by the base rate of deaths for that hazard.     

Whatever happened to environmental analysis?

This article discusses a longitudinal study of firms selected for their expertise in environmental analysis. It is primarily designed to test two general propositions. The first, that environmental analysis is increasing in importance over time— both within and between firms; and the second, that environmental analysis is most viable as a separate, freestanding function within the organization.     

U.K. competition policy evaluated

This paper surveys the application of U.K. monopoly policy and examines its general impact on industrial structure and market processes. It considers the effects of the Competition Act 1980 in relation to U.K. monopoly control and concludes that unless further measures are introduced, competitive pressures are likely to be weakened over the longer term.     

Product planning—we're still getting it upside down

This paper questions why with all the traditional inventive genius of the British people, this country is failing to hold its own against foreign competition. While the reasons for this are many, the author suggests that the conventional approach to new product development is a major factor. Industry should put the demands of the consumer first rather than an abstract pursuit of technological development. He suggests that for industry in general the needs of consumers should take precedence over the ‘technology push’.     

Building an innovative organization

Morton L. Mandel, CEO of Cleveland-based Premier Industrial Corporation, with brothers Jack and Joe, started selling automotive fasteners out of garage 50 years ago. Today, Premier's sales are running at a record $650m clip. The market value of the Mandel brothers' publicly-traded Premier shares earns all three a place on Forbes' list of the 400 wealthiest Americans. The family still holds about 60 per cent of the stock. Mort Mandel believes that gives the company independence and the ability to concentrate on nuts and bolts rather than politics. Mandel's nuts and bolts approach to managing has created stunning success—after-tax margins twice the average of Premier's industry, return on assets of 24 per cent, return on investment above 30 per cent, earnings per share compounded in excess of 17 per cent for the past 5 years, shareholders' equity that has grown close to 10 per cent annually for 20 years, and debt of less than 3 per cent of net worth. Mandel says it's simple: Treat customers as though they have the ‘right’ to superior service. Behave ethically, professionally and personally. Do good. Invest in people. Execute, execute, execute. What he calls Management 101. We suspected it wasn't quite that simple, and we wanted to know how he created a company that repeatedly outperforms its industry and many others, how he sustains a culture that generates 5000 written profit improvement ideas a year from Premier's 5400 employees. So we asked him some questions about his views on management and leadership that produced refreshing insights into the power, purity and timeless applicability of ‘management basics’. This interview was conducted at Premier's unpretentious executive offices, located in the Midtown Corridor of Cleveland, Ohio, a privately-sponsored urban renewal project inspired by Mort Mandel, who practices his preachings about ‘doing good’.     

Beyond expectancy theory: an integrative motivational model from health care

Expectancy theory has been criticized for its omission of normative, habitual, and other motivational elements. This paper describes the sources and features of an integrative motivational model from the field of preventive health care that combines expectancy/valence factors with habitual, normative, and conative motivational elements. The model is viewed as having implications for work motivation as well.