Process matters—The relevance of the decision making process for divestiture outcomes

We apply strategic decision making and organizational change theory to corporate divestitures and argue that key characteristics of the divestiture decision making process can contribute to explaining the variation in divestiture outcomes. We test our hypotheses in an empirical multi-source quantitative study and find evidence that analytical comprehensiveness in the evaluation of divestiture effects on the corporate portfolio has a positive impact on the effectiveness of divestiture choices, but analytical comprehensiveness at the focal business unit (BU) level does not enhance decision effectiveness. Our results further indicate that involvement of the affected BU management has a varying impact during the decision making process, with negative effects during the early phase and positive effects in the later phase.     

Employer Branding: A Brand Equity‐based Literature Review and Research Agenda

Over the past two decades, scholarly interest in employer branding has strongly increased. Simultaneously, however, employer branding research has developed into a fragmented field with heterogeneous interpretations of the employer branding concept and its scope, which has impeded further theoretical and empirical advancement. To strengthen the foundation for future work, this paper takes a brand equity perspective to review the extant literature and create an integrative model of employer branding. Using an analytical approach, the authors identify 187 articles, which they integrate along different employer brand dimensions and branding strategies: (i) conceptual; (ii) employer knowledge dimensions; (iii) employer branding activities and strategies. On the basis of this review, the authors develop an employer branding value chain model and derive future research avenues as well as practical implications.     

Adoption and Outcomes of ISO 14001: A Systematic Review

The objective of this paper is to analyze the adoption and outcomes of the ISO 14001 standard through a systematic review of the main studies on this issue published in peer‐reviewed journals between 1996 and 2015. The 94 papers analyzed make it possible to paint a comprehensive picture of the effectiveness of ISO 14001 in environmental management practices, performance in this area and social aspects such as employee awareness. The systematic review also sheds more light on the main pitfalls and success factors of the standard. Nevertheless, the similarities and even redundancies of the literature in terms of objectives, approaches and methods used tend to produce quite predictable and optimistic results, which do not reflect the complexity of the impact of ISO 14001. The paper highlights the importance of more diverse and critical approaches that might challenge the successful rhetoric of the dominant literature, which tends to focus on positive aspects and be limited to a few countries that are not representative of the wide international distribution of certification. The findings of this systematic review can also help managers in making decisions on the adoption and renewal of certification.     

Hedging and accounting-based RPE contracts for powerful CEOs

Several firms prohibit their CEOs from trading in the stock of peer firms. This is puzzling since hedging by the CEO through private trading in the capital market can reduce the CEO’s exposure to systematic compensation risk. When the CEO’s incentive contract comprises relative performance evaluation, we find that the firm might want to disallow private hedging even though there are no technological interdependencies or strategic interactions to peer firms. In the analysis, we highlight two frequently observed characteristics of incentive contracts. First, the use of accounting benchmarks is widespread in compensation contracts for CEOs. Second, empirical and anecdotal evidence suggests that powerful CEOs have influence on the process of designing their own compensation. We find that in the presence of a powerful CEO, the firm can benefit from disallowing private hedging. In particular, the firm’s decision to allow or to disallow private hedging depends on the characteristics of the accounting benchmarks and the characteristics of the peer firms.     

The Termination of Public Organizations: Theoretical Perspectives to Revitalize a Promising Research Area

While many studies deal with comparative public sector reform, the fundamental question of whether and to what extent states are actually able to abolish parts of their administrative structure remains untackled. Despite some efforts to solve this puzzle, the topic remains underestimated. This article identifies the main conceptual and theoretical problems associated with existent research on the termination of public organizations. Furthermore, the article systemizes various causal factors of termination into two broad dimensions: “organizational stickiness” and “political incentives.” Taken together, these constitute a typology, which is able to guide future empirical investigation of the termination of public organizations.

Unionization Structures in International Oligopoly

We examine how competition in international markets affects a union's choice of wage regime, which can be either uniform or discriminatory. Firms are heterogeneous with regard to international competition. When unions choose their wage regimes sequentially, a discriminatory outcome becomes more likely when international competition increases. However, for intermediate levels a union may stick with a uniform wage regime even if the rival union adopts a discriminatory regime. When competition is sufficiently intense, both unions revert to the discriminatory regime. Paradoxically only in those latter instances all parties (consumers, workers, and firms) may be better off (each in aggregate) if all unions adopt a uniform wage regime. We conclude that union incentives to coordinate their wage regimes should then also become largest.     

A Comparative Analysis of Quality Practice in Manufacturing Firms in the U.S. and Taiwan*

The aim of this paper is to determine if there is a causal relationship between multivariate constructs for quality (i.e., customer satisfaction, employee satisfaction, and employee service quality) and organizational performance. The presence of such relationships, as well as the identification of key indicators within each quality construct for different types of firms, are explored in this empirical study on the perceptions of middle managers in Taiwan and the United States. The study found a significant causal relationship between the quality constructs and organizational performance. These relationships are different, however, for the four types of firms based on age and size. Also, within the same firm types, there are differences among countries. For example, for older firms, Taiwanese managers tend to perceive customer satisfaction as the most important quality construct in improving organizational performance, while U.S. managers tend to perceive employee satisfaction as the most important. For younger firms, U.S. managers perceive customer satisfaction as influencing organizational performance, while Taiwanese managers perceive both customer satisfaction and employee satisfaction as doing so. A further breakdown of the quality constructs identified the key indicators within each construct that separates “better performers'’from “lesser performers'’in both countries for the four types of firms. These indicators are dissimilar, thus suggesting that focus on quality constructs may lead to improvements in organizational performance by focusing on different indicators in different environments. These results have implications for the adoption and implementation of quality practices in different countries.     

Immigration Policy,Equilibrium Unemployment,and Underinvestment in Human Capital

We analyse the impact of different immigration policies on human capital investment in a search‐theoretic model. This class of models features unemployment and underinvestment in human capital. The underinvestment in human capital can be solved by combining immigration policy with appropriate education subsidies. Extending the model with respect to different skill groups allows to analyse the observed bimodal skilled immigration of the USA.