Driving Through the Fog: Managing at the Edge

Although the periphery does not occupy the centre of our attention, it should be ignored at our peril. This paper gives many examples of companies that have been heavily influenced by peripheral events, whether they started out there, or whether they hopelessly misread the oncoming signals. It argues that a monitoring of the periphery can help diffuse small problems before they becomes crises. It provides a roadmap for organisations by describing how to define the field of view and how to assess the signals from it.     

Complexity Absorption and Performance: A Structural Analysis of Acute-Care Hospitals

This study assesses the degree to which a complexity absorption response enhances performance in an industry increasingly described as highly complex: acute-care hospitals. Business-level strategy, organizational structure, and analytical comprehensiveness are viewed as mechanisms through which executives can increase internal complexity. A case is made that hospitals are well served to pursue a hybrid (or combination) strategy, employ an organic structure, and engage in a high degree of information acquisition and use. In keeping with a complexity absorption view, results indicate that these elements generally exhibit stronger associations with performance as dynamism increases.     

Target Reputation and Appropriability: Picking and Deploying Resources in Acquisitions

This study explores sources of acquirer satisfaction and achievement of strategic objectives following acquisitions. We develop two sets of factors based on picking and deploying target resources that we expect will affect these outcomes, and consider how the two interact. We find that target reputation is consistently related to desirable acquisition outcomes. In particular, product quality and financial reputation positively affect satisfaction; product quality is a strong predictor of achieving market-based objectives; and management and product reputation facilitate learning. Retaining top management after the transaction is also positively related to satisfaction. We support and extend the theory of relative standing—target executives are retained to a greater degree when management reputation is strong, and this leads to better outcomes for acquirers. Other deployment effects vary depending on the outcome and the strength of the acquired resource.     

Examination of Structured Interview Ratings Across Time: The Effects of Applicant Race, Rater Race, and Panel Composition

This study examined the relationship between race and interview ratings in a structured selection panel interview. Data from 1,334 police officer applicants who were interviewed by three-person panels were examined to explore how applicant race, rater race, and panel racial composition related to interview ratings and change from initial to final ratings. Results revealed the largest effect was for panel racial composition, such that predominately White panels provided significantly more favorable ratings to applicants of all races compared to panels composed of predominately Black raters. However, a significant three-way interaction between rater race, applicant race, and panel composition was also found. Specifically, Black raters evaluated Black applicants more favorably than White applicants only when they were on a predominately Black panel. These results may help explain past inconsistencies in the literature regarding the effects of rater race and applicant race on ratings.     

Can a Previous Alliance Between an Acquirer and a Target Affect Acquisition Performance?

Throughout the 1990s, organizations have been combining resources through acquisitions and alliances in record numbers. An acquirer’s previous alliance with a target may give an acquirer target-specific information and experience that may be an advantage-producing resource in selection, valuation and integration of the target. This study investigates whether a previous alliance between an acquirer and a target affects post-acquisition performance and finds that a previous alliance between an acquirer and a target correlates positively with acquisition performance. Acquirers’ previous R&D, technology transfer, manufacturing and marketing alliances with targets benefit acquisition performance more than their previous licensing alliances with targets. Furthermore, target-specific learning effects are strongest and most beneficial to acquisition performance in acquirers’ previous technology transfer and manufacturing alliances with targets.     

Self-Esteem Within the Work and Organizational Context: A Review of the Organization-Based Self-Esteem Literature

On numerous occasions it has been suggested that an individual’s self-esteem, formed around work and organizational experiences, plays a significant role in determining employee motivation, work-related attitudes and behaviors. We review more than a decade of research on an organization-based conceptualization of self-esteem. It is observed that sources of organization structure, signals about worth from the organization, as well as, success-building role conditions predict organization-based self-esteem. In addition, organization-based self-esteem is related to job satisfaction, organizational commitment, motivation, citizenship behavior, in-role performance, and turnover intentions, as well as, other important organization-related attitudes and behaviors. Explanations for these effects and directions for future research are discussed.     

Managing Internal R&D Networks in Global Firms: What Sort of Knowledge is Involved?

How should a global firm manage its network of R&D centres in an effective manner? Some have developed an Integrated Network model in which the R&D centres around the world are tightly integrated into a coherent whole. Others have adopted a Loosely-Coupled Network model in which individual “centres of excellence” are given considerable autonomy. In this paper we argue that the way individual R&D units are structured, and the way the entire network is managed, should be based not on administrative heritage, environmental turbulence or management style, but on the basis of the underlying characteristics of the firm’s knowledge assets. In particular we focus on the observability and mobility of the firm’s knowledge assets, the impact these factors have on the way individual R&D centres are structured, and how they relate to one another in the international network. The argument is supported using examples and data from Swedish firms including ABB, Alfa Laval and Ericsson.     

Targeting and child poverty

We examine the relative merits of targeting children within the household through price subsidies and cash transfers. To do so, we model the behavior of a household composed of one adult and one child. We then show that ‘favorable’ distortions from price subsidies may allow redistributing toward the child and then derive the conditions under which this redistributive scheme is more efficient than cash transfers. The framework is extended to account for possible paternalistic preferences of the social planner and for households composed of two adults with different preferences. Applied to a continuum of households, our approach is extended to the problem of child poverty alleviation. In contrast to the traditional view, we show that well-chosen subsidies may be more cost effective than cash transfers in reducing child poverty.