The Mechanistic Structure Shift and Strategic Reorientation in Declining Firms Attempting Turnarounds

Past researchers have observed that decliningorganizations often experience mechanistic structuralchanges that centralize authority, increase reliance onformalized procedures, and reduce the amount of information flowing to top managers. Many haveproposed that this “mechanistic shift” indeclining organizations reduces their adaptivecapability by making innovative organizational change in response to decline less likely. However,despite much research on declining firms and theirturnaround attempts, many questions about mechanisticshifts remain, such as: (1) To what extent do declining firms become systematically mechanistic whentrying to recover from decline? (2) What aspects ofdeclining firms' situations make mechanistic shifts morelikely? (3) Do mechanistic shifts reduce the likelihood of large-scale strategic reorientation asdeclining firms attempt to recover? We sought answers tothese questions through an analysis of data fromin-depth interviews with top managers (mostly CEOs) at 29 U.S. firms attempting turnarounds fromdecline. Our primary finding was that mechanisticstructure shifts did restrict firms' abilities to changetheir strategic orientations in response to decline. Highlighting the important role of the contextof turnaround attempts, we further found the averagedeclining firm attempting a turnaround did not becomemore mechanistic, but that turnaround attempts launched from financial crises were significantly morelikely to lead to mechanistic shifts. Also, we foundthat the common practice of replacing the firm's CEOduring turnaround attempts had conflicting andparadoxical effects on firms' abilities to enact strategicreorientations.     

Economic and Psychological Models of Job Search Behavior of the Unemployed

Economic and psychological theories relating tojob search behavior by the unemployed are considered.There exists a noticeable contrast between the economicapproach which is almost exclusively based on a single model of the rational job seeker, andthe diverse approaches adopted by psychologists.Accordingly, the paper concentrates on areas of researchby psychologists which are relevant to the economic model. The paper starts with an overview of theresearch program in economics. Next, the psychologicalliterature on the general well-being of the unemployedis briefly surveyed; this research might be useful in informing economic studies of theeffects of the duration of unemployment on an individuals search behavior. Two psychological approaches to jobsearch behavior are then discussed, namelyexpectancy-value theory and prospect theory. Findings using theexpectancy-value approach suggest that certainpsychological variables, including normative pressures,might play an important role in job search. In addition, these findings highlight the complexrelationship between job expectations and searchintensity. Finally, it is suggested that the role andimportance of certain psychological variables such asstatus might be expected to vary over the course ofunemployment.     

Exploring cultural economies of internationalization: the role of ‘iconic individuals’ and ‘brand leaders’ in the globalization of headhunting

Understanding the internationalization of professional services like advertising, architecture, accounting, consulting and legal services continues to attract considerable attention in academic and policy circles. Research in geography and management studies has emphasized the different organizational strategies adopted by firms as they seek to develop and maintain a competitive position within an increasingly global economy. In this article we develop a new strand in this literature by adopting a cultural economy approach to argue that an important, yet comparatively neglected, aspect of the internationalization strategies of transnational professional service firms is the role of certain ‘iconic individuals’ and ‘brand leaders’ in influencing the practice of internationalization. Drawing on empirical research into the burgeoning European executive search (headhunting) industry we identify a cadre of such individuals and brand leaders that act as resources other firms leverage when internationalizing. This highlights the importance of a cultural economy perspective in theories of the internationalization of professional services and its value in moving discussions beyond purely economic analyses of competitive advantage.     

SEQUENCING AND BATCHING FOR TWO CLASSES OF JOBS WITH DEADLINES AND SETUP TIMES

We formulate a general sequencing problem that includes two classes of jobs with setup times, setup costs, holding costs, and deadlines. The formulation is unique in its explicit recognition of the opportunities to exploit productive capacity increases due to batching. An algorithm based on tabu search is then used as a solution method. Computational results are presented that suggest that the algorithm is effective.