Organisational buying behaviour in changing times

In a recent paper, Johnston and Lewin (1996) analyse the stream of research on organisational buyer behaviour published over the past 25 to 30 years isolating eight propositions which they encapsulate in their ‘Risk Continuum'. Our paper, reports a comparison between Johnston and Lewin's analysis of the extant literature and current buying practices as revealed by interviews with senior UK buyers. We found that business practice has changed in the intervening years. New, process-driven management styles are changing the way in which UK buyers and suppliers interact, yet work reflecting this change (by, for instance, the European based IMP Group) is under-represented in textbooks and teaching. We question the continuing predominance of the established risk management view of organisational buyer behaviour based upon research conducted in the USA 30 years ago.     

Professional Temporary Agencies, Women and Professional Discretion: Implications for Organizations and Management

There are a disproportionate number of professional women working through temporary agencies. We develop a theory wherein this gender skewness in temporary-agency employment results from the differences in perceptions of control at work between men and women working through large traditional organizations. Our theory suggests that if control is perceived to be less for women than for men in large organizations, then women will tend to populate other work arrangements, like temporary agencies, in order to enhance their control. Propositions are tested via a unique data set comparing the responses of employees from both a London temporary accountancy agency and a large London accountancy firm. Our results are consistent with a lack of control driving professional women from large firms to temporary agencies, and neither rely on preference differences nor familial obligations.     

Development of a Performance Assessment Capability in the Waste Management Programs of the U.S. Nuclear Regulatory Commission

The U.S. Nuclear Regulatory Commission (NRC) staff has developed a performance assessment capability to address three programmatic areas in nuclear waste management: high-level waste, low-level waste, and decommissioning of licensed facilities (license termination). The NRC capability consists of: (1) methodologies for performance assessment; (2) models and computer codes for estimating system performance; (3) regulatory guidance in various forms, such as regulations, Branch Technical Positions, and Standard Review Plans; and (4) a technical staff experienced in executing and evaluating performance assessments for a variety of waste systems. Although the tools and techniques are refined for each programmatic area, general approaches and similar issues are encountered in all areas.     

Equity Ownership in Cross‐border Mergers and Acquisitions by British Firms: An Analysis of Real Options and Transaction Cost Factors

The authors investigate the factors influencing the share of equity ownership sought in cross‐border mergers and acquisitions (CBM&As). Drawing on real options theory and transaction cost economics (TCE), they address and hypothesize key factors linked to commitment under exogenous uncertainty and the separation of desired and non‐desired assets’ influence on share of equity sought by acquiring firms in CBM&As. Empirical analysis based on 1872 CBM&As undertaken by British firms in both developed and emerging economies shows that British MNEs are more likely to pursue a partial acquisition in a target foreign firm when those foreign firms are from culturally distant countries. Further, findings support the view that the high cost of separating desired assets from non‐desired assets motivates firms to make a partial acquisition rather than acquire the target completely. This is one of the first studies to use real options theory to address the cost of commitment under exogenous uncertainty, as well as TCE logic to address the separation of desired and non‐desired assets in the target firm while analysing equity ownership sought in CBM&As. Empirically, this paper contributes by examining CBM&As by British firms in both developed and emerging markets.     

Generating Probabilistic Spatially-Explicit Individual and Population Exposure Estimates for Ecological Risk Assessments

Exposure to chemical contaminants in various media must be estimated when performing ecological risk assessments. Exposure estimates are often based on the 95th-percentile upper confidence limit on the mean concentration of all samples, calculated without regard to critical ecological and spatial information about the relative relationship of receptors, their habitats, and contaminants. This practice produces exposure estimates that are potentially unrepresentative of the ecology of the receptor. This article proposes a habitat area and quality-conditioned exposure estimator, E[HQ], that requires consideration of these relationships. It describes a spatially explicit ecological exposure model to facilitate calculation of E[HQ]. The model provides (1) a flexible platform for investigating the effect of changes in habitat area, habitat quality, foraging area, and population size on exposure estimates, and (2) a tool for calculating E[HQ] for use in actual risk assessments. The inner loop of a Visual Basic program randomly walks a receptor over a multicelled landscape--each cell of which contains values for cell area, habitat area, habitat quality, and concentration--accumulating an exposure estimate until the total area foraged is less than or equal to a given foraging area. An outer loop then steps through foraging areas of increasing size. This program is iterated by Monte Carlo software, with the number of iterations representing the population size. Results indicate that (1) any single estimator may over- or underestimate exposure, depending on foraging strategy and spatial relationships of habitat and contamination, and (2) changes in exposure estimates in response to changes in foraging and habitat area are not linear.     

Risk Perception in the U.K. Oil and Gas Production Industry: Are Expert Loss‐Prevention Managers' Perceptions Different From Those of Members of the Public?

This article investigates potential differences in risk perception between experts (loss-prevention managers in the U.K. oil and gas production industry) and nonexperts (managers and students). Extant research on expert versus nonexpert perceptions of risk is reviewed, followed by the present study concerning risk perceptions of seven pen-picture scenarios involving the occurrence of hazardous events in the U.K. oil and gas production industry. In contrast to many of the earlier studies of expert versus nonexpert perceptions of risk, the present analysis concludes that experts did not judge the overall riskiness of the portrayed hazardous events as less risky than the nonexperts. Nevertheless, the experts believe more strongly than our nonexperts that the risks portrayed in the scenarios pose little threat to future generations, are more precisely known, and are relatively controllable. Use of multiple regression analysis to help uncover the basis of overall riskiness assessments for expert and lay respondents was inconclusive, however. Finally, little evidence was found that nonexperts were any more heterogeneous in their risk perceptions than experts. It may be that the nature of the risks assessed in the present study may account for the general lack of clear expert versus nonexpert differences in overall perceptions of the riskiness of hazardous events in the North Sea. Earlier findings of strong expert versus nonexpert differences in risk perception assessed hazards of major public concern. It is inferred that using such extreme hazards may have resulted in an exaggerated view of differences in expert versus public (nonexpert) perception of risk.     

Optimal Policies for Recovering the Value of Consumer Returns

This study characterizes the class of Pareto optimal returns policies between a manufacturer and a retailer who receives consumer returns. The manufacturer may take a costly hidden action that reduces the expected number of products returned by consumers, which when realized is hidden information known only to the retailer. When faced with consumer returns, the retailer must decide whether to send the product back to the manufacturer, who harvests a low salvage value, or to engage in costly refurbishment that permits the returned product to be resold to consumers. We find that the optimal returns policies may be implemented through the payment by the manufacturer of a full refund to the retailer of the wholesale price for any returns as well as a bonus paid to the retailer that is decreasing in the number of returns to the manufacturer.