As Public Goes Private, Social Emerges: The Rise of Social Enterprise

This article explores the relationship between social enterprise and a much-longer known set of arrangements generally comprehended as “public enterprise” (or “state-owned enterprise”). It considers the decline in some contexts in the use of, and interest in, public enterprise that reflects the impact of the privatization movement, and the rise of social enterprise as an alternative form—with speculation about cause-and-effect connections between these movements. An exploration of this sort may contribute in the longer term to a better understanding of the place of “public”, “social” and “community” values and structures within the general framework of governance.     

The Impact of a Task Clarification and Feedback Intervention on Restaurant Service Quality

Customer service is a key aspect of restaurant success, as performance has shown a reliable positive relationship with customer retention. However, waitstaff performance may deteriorate, as income from gratuities is often unrelated to service quality. The present study investigated the effectiveness of an intervention consisting of task clarification and task-specific feedback on restaurant service tasks and observed the relationship between task completion and gratuities. Three adult women servers participated during their regular working shifts at a local dine-in restaurant. Initially customer service task completion was low (36% on average across participants). Performance increased immediately following the introduction of the intervention, and all participants maintained 87.5%–100% task completion. Correlational analyses found that gratuities were unrelated to performance and may thus pose a problem for performance maintenance. Implications relating to feedback and payment schedules are discussed.     

Workload Control and Order Release: A Lean Solution for Make‐to‐Order Companies

Protecting throughput from variance is the key to achieving lean. Workload control (WLC) accomplishes this in complex make‐to‐order job shops by controlling lead times, capacity, and work‐in‐process (WIP). However, the concept has been dismissed by many authors who believe its order release mechanism reduces the effectiveness of shop floor dispatching and increases work center idleness, thereby also increasing job tardiness results. We show that these problems have been overcome. A WLC order release method known as “LUMS OR” (Lancaster University Management School order release) combines continuous with periodic release, allowing the release of work to be triggered between periodic releases if a work center is starving. This paper refines the method based on the literature (creating “LUMS COR” [Lancaster University Management School corrected order release]) before comparing its performance against the best‐performing purely periodic and continuous release rules across a range of flow directions, from the pure job shop to the general flow shop. Results demonstrate that LUMS COR and the continuous WLC release methods consistently outperform purely periodic release and Constant WIP. LUMS COR is considered the best solution in practice due to its excellent performance and ease of implementation. Findings have significant implications for research and practice: throughput times and job tardiness results can be improved simultaneously and order release and dispatching rules can complement each other. Thus, WLC represents an effective means of implementing lean principles in a make‐to‐order context.     

Use and misuse of levels of analysis in leadership research: An illustrative review of leader–member exchange

Prior reviews have focused on if leadership literature pays homage to levels of analysis; our purpose is to take stock of how well and in what ways levels issues are implemented in theory and hypotheses formulation, construct conceptualization, measurement, and data analysis. To illustrate these notions, we provide an in-depth review of 163 multi-level empirical leader–member exchange (LMX) and vertical dyad linkage (VDL) studies published between 1972 and 2012. Our findings indicate that the volume of multi-level studies in LMX has drastically increased recently and the majority of these studies cast theory and hypotheses at the same level. With regard to alignment of levels of theory/hypotheses with measurement and with data analyses, however, roughly one out of two published studies suffers from misalignment of levels. Most of this misalignment occurs in studies where the dyad level of analysis, a key component of LMX, is an explicit or implicit focus. We conclude with a discussion of the implications for the LMX literature, and present recommendations to guide multi-level leadership research.     

Contract Pricing in Consumer Credit Markets

We analyze subprime consumer lending and the role played by down payment requirements in screening high‐risk borrowers and limiting defaults. To do this, we develop an empirical model of the demand for financed purchases that incorporates both adverse selection and repayment incentives. We estimate the model using detailed transaction‐level data on subprime auto loans. We show how different elements of loan contracts affect the quality of the borrower pool and subsequent loan performance. We also evaluate the returns to credit scoring that allows sellers to customize financing terms to individual applicants. Our approach shows how standard econometric tools for analyzing demand and supply under imperfect competition extend to settings in which firms care about the identity of their customers and their postpurchase behavior.     

On the functional form of temporal discounting: An optimized adaptive test

The tendency to discount the value of future rewards has become one of the best-studied constructs in the behavioral sciences. Although hyperbolic discounting remains the dominant quantitative characterization of this phenomenon, a variety of models have been proposed and consensus around the one that most accurately describes behavior has been elusive. To help bring some clarity to this issue, we propose an Adaptive Design Optimization (ADO) method for fitting and comparing models of temporal discounting. We then conduct an ADO experiment aimed at discriminating among six popular models of temporal discounting. Rather than supporting a single underlying model, our results show that each model is inadequate in some way to describe the full range of behavior exhibited across subjects. The precision of results provided by ADO further identify specific properties of models, such as accommodating both increasing and decreasing impatience, that are mandatory to describe temporal discounting broadly.     

An exploratory study on the potential of social enterprise to act as the institutional glue of network governance

This study combines two topics of contemporary salience for public administration: social enterprise and governance networks. While operating at different levels, both are institutions which attempt to draw together the three pillars of state, market, and civil society. Nevertheless, the respective literatures focus on particular aspects of the three pillars. We connect the two concepts and suggest that some social enterprises can act as the institutional glue of networks due to their ability to benefit organizations in each of the three sectors. This requires social enterprises to have the managerial capacity to diffuse social know-how, and is facilitated by the trust of other organizations and a supportive policy framework. The links are explicated at the conceptual level before providing evidence from South Korea and the UK. Finally, research propositions are offered, which suggest new avenues for future research.     

Is Probability the Only Coherent Approach to Uncertainty?

In this article, I discuss an argument that purports to prove that probability theory is the only sensible means of dealing with uncertainty. I show that this argument can succeed only if some rather controversial assumptions about the nature of uncertainty are accepted. I discuss these assumptions and provide reasons for rejecting them. I also present examples of what I take to be non-probabilistic uncertainty.