Countervailing institutional forces: corporate governance in Turkish family business groups

This longitudinal study investigates the impact of national and international pressures to improve corporate governance in an emerging economy from an institutional theory perspective. Recently, family business groups (FBGs), the dominant form of organizing in emerging economies, have been criticized by policy makers for their poor governance structures. A common recommendation to FBGs has been increasing the number of independent, outsider directors on their boards. Thus, change in the board compositions of the quoted subsidiaries of the six biggest FBGs is analyzed over 2002–2006. One-way-ANOVA and t-tests were used as statistical tools. Findings reveal that there has not been a statistically significant change in board compositions over the research period. FBGs were found to resist institutional pressures through ‘avoidance’, ‘defiance’ and “manipulation” strategies due to the absence of coercive pressures and multiple forms of ‘institutional work’ for change.     

Ethical leadership,intrapreneurship, service innovation performance and work engagement in chambers of commerce and industry

ABSTRACT

The main purpose of this study which examines how it can be more effective in terms of organizational and managerial aspects with chambers of commerce and industry affiliated to The Union of Chambers and Commodity Exchanges of Turkey is to analyze the relationships between ethical leadership, work engagement, intrapreneurship, and service innovation behavior. In addition, it is to determine the role of mediation of work engagement effecting on intrapreneurship and service innovation behavior. For this purpose, quantitative analysis methods have been adopted. The data collected from 568 employees who were employed in chambers of commerce and industry operating in Turkey were analyzed. For the validity and reliability of the measurement tools, confirmatory factor analysis, the model’s good fit values and the AMOS Structural Equation Model were used. It was found that ethical leadership had statistically significant effect on employee engagement, intrapreneurship and the subscales of service innovation behavior (employee service innovation behavior and new service development). The results showed that work engagement partially mediated with ethical leadership effecting on intrapreneurship, ethical leadership effecting on the subscales of service innovation behavior. It is thought that the study is important in terms of providing empirical contributions to the ethical leadership, service innovation, intrapreneurship and work engagement literature. Finally, there are some limitations of the study and some suggestions are offered for future studies.     

On recursive solutions to simple allocation problems

We propose and axiomatically analyze a class of rational solutions to simple allocation problems where a policy-maker allocates an endowment $E$ among $n$ agents described by a characteristic vector c. We propose a class of recursive rules which mimic a decision process where the policy-maker initially starts with a reference allocation of $E$ in mind and then uses the data of the problem to recursively adjust his previous allocation decisions. We show that recursive rules uniquely satisfy rationality, c-continuity, and other-c monotonicity. We also show that a well-known member of this class, the Equal Gains rule, uniquely satisfies rationality, c-continuity, and equal treatment of equals.     

Quantile estimation and comparing two independent groups with an approach based on percentile bootstrap

Although the most common approach for comparing two independent groups is on the basis of some measure of location, determination of the differences in the tails of the groups is often of interest. In this study, Harrell–Davis estimator, Sfakianakis–Verginis estimators and default quantile estimator of R are used in conjunction with a percentile bootstrap method with the aim of comparing two independent groups via the quantiles, and the relative efficiencies of Harrell–Davis and Sfakianakis–Verginis estimators are compared. General performance of Sfakianakis–Verginis estimators was much better than Harrell–Davis estimator in terms of both saving actual type I error and relative efficiency.     

Supply chain relationship quality and its impact on firm performance

Abstract

This paper examines the impact of supply chain relationship quality (SCRQ) on firm performance (FP) through the mediators of supply chain management processes (SCMP) and supply chain performance (SCP). In the literature, these linkages have been examined separately; in contrast, this study takes a holistic perspective on the antecedents of FP. The model was tested using survey data from manufacturing companies. Variance-based structural equation modelling revealed that both SCMP and SCP lead to FP, unlike SCRQ. On the other hand, SCRQ affects SCMP. Drawing on the resource-based view, consistency in SCRQ can lead to not only efficient and effective supply chain management but also improvements in FP and SCP. This research has practical implications, providing supply chain decision makers with insights on enhancing FP. Supply chain decision makers will be able to benefit from the findings of our study by improving supply chain relationships with supply chain members and ensuring FP. This research also highlights how effective management of SCRQ, SCMP and SCP can provide better FP and a competitive advantage.     

Separating trend and cyclical dynamics in state space models with exogenous inputs

In the present study we compare three state rotation methods in modelling the impact of the US economy on the Finnish economy, i.e. Schur decomposition, eigenvalue analysis and singular value decomposition. Singular value decomposition is seen to provide a robust approximation of the state rotation in most cases studied, irrespective of whether the characteristic roots of the state transition matrix are complex. Thus, singular value decomposition seems to be a viable computational device not only in estimating the system matrices of the state space model, but also in state rotation, as compared to the more involved techniques based on eigenvalue analysis or Schur decomposition.     

INEFFICIENCY AS A STRATEGIC DEVICE IN GROUP CONTESTS AGAINST DOMINANT OPPONENTS

Contests between groups are prone to intra‐group externalities (free‐riding). Yet, costless incentive schemes that entirely avoid free‐riding within a group might be undesirable, both individually and socially. In contests between two groups, a relatively weak (i.e., small or unproductive) group will optimally not implement them because they compound differences in strength between groups. If the groups are of relatively similar strengths, they are both worse off when they rein in their intra‐group externalities compared to a situation where they do not. If groups' strengths differ sufficiently, the relatively strong group benefits at the expense of the relatively weak one. (JEL Z13, D72, N40, D74)