Cluster life cycle and diaspora effects: Evidence from the Indian IT cluster in Bangalore

The role of local clusters has been of interest to scholars and policymakers in international business alike. Research found that clusters enable a region to develop faster compared to dispersed economic activity, based mainly on a local concentration of competing and cooperating firms and sophisticated domestic demand. Locating in a cluster has certain benefits for firms stemming from pooling of human capital and supporting institutions varying by industry and international specialization.In this paper, we extend the local view of clusters and emphasize the complementary role of non-local linkages, in particular diasporas, illustrating our model employing the case of the evolution of the Bangalore IT cluster. The novelty of our paper lies in its longitudinal character. We are thereby able to identify how the roles of local and non-local networks differ across life-cycle phases; moreover, we find that diasporas can trigger or accelerate local development. We discuss implications for managers and policy makers.     

Foundation ownership and shareholder value: an event study

Review of Managerial Science - Some of the largest listed firms in Western and Northern Europe are partly owned by foundations. So far, little research exists about the shareholder value effects of...     

THE OPTIMAL ALLOCATION OF PRIZES IN TOURNAMENTS OF HETEROGENEOUS AGENTS

Tournaments are widely used in organizations, explicitly or implicitly, to reward the best‐performing employees, for example, by promotion or bonuses, and/or to penalize the worst‐performing employees, for example, by demotion, withholding bonuses, or unfavorable job assignments. These incentive schemes can be interpreted as various prize allocations based on the employees' relative performance. While the optimal prize allocation in tournaments of symmetric agents is relatively well understood, little is known about the impact of the allocation of prizes on the effectiveness of tournament incentive schemes for heterogeneous agents. We show that while multiple prize allocation rules are equivalent when agents are symmetric in their ability, the equivalence is broken in the presence of heterogeneity. Under a wide range of conditions, loser‐prize tournaments, that is, tournaments that award a low prize to relatively few bottom performers, are optimal for the firm. The reason is that low‐ability agents are discouraged less in such tournaments, as compared to winner‐prize tournaments awarding a high prize to few top performers, and hence can be compensated less to meet their participation constraints. (JEL M52, J33, J24)     

Ambivalenzen und Widersprüche als Herausforderungen für Change-Manager

Contradictions and ambivalences are some of the phenomena that accompany change processes but are exhausting for those who experience them and have to deal with them. Drawing on surveys held during workshops, this article summarizes which contradictions are typical of change processes. As a possibility for effectively countering such contradictions, the two-stage concept from Müller-Christ and Weßling for tolerating contradictions is introduced based on this. Finally, information and ideas for conducting workshops on the topic of contradiction tolerance are presented.     

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Success on European Labor Markets: A Cross‐national Comparison of Attainment between Immigrant and Majority Populations1

Typical labor market outcomes vary considerably between majority and migrant populations. Drawing on scholarship from across the social sciences, we assess competing micro‐ and macro‐level explanations of differential occupational attainment among immigrant groups across 28 countries. The analyses of occupational attainment are run separately for first‐ and second‐generation migrants as well as children of mixed marriage and take into account their wider social and cultural background. Results from four rounds of the European Social Survey show that people with a migration background do not necessarily achieve a lower labor market success than the majority. However, human capital, social mobility, and cultural background explain these outcomes to different degrees, suggesting tailored pathways to labor market success for each group of migrants. We also find that occupational attainment varies considerably across countries, although this is hardly attributable to immigration policies. These and other findings are discussed in the light of previous studies on immigrant incorporation.     

The Governance of International Nongovernmental Organizations: How Funding and Volunteer Involvement Affect Board Nomination Modes and Stakeholder Representation in International Nongovernmental Organizations

The governance of civil society organizations (CSOs) is a crucial determinant of organizational legitimacy, accountability, and performance. International nongovernmental organizations (INGOs) are a subtype of CSOs and have received a lot of attention as actors in global governance. Research suggests that INGOs can follow a membership model, where the board is elected by the membership, or a board-managed model, where the board is appointed to represent major stakeholders. Following resource dependency theory, we argue that the choice between these two models depends on the INGOs different sources of funding and the degree of volunteer involvement: As donors and volunteers provide important resources, they are in turn granted the right to nominate board members or to sit on the board. In our quantitative study we show that individual members, regional member organizations, and governmental donors hold a stronger position in the governance of INGOs than philanthropists, foundations and volunteers. Our results inform research on CSO governance by highlighting the relevance of board nomination modes and by showing how CSOs can incorporate stakeholders into their governance mechanisms.