Distinguishing Economically from Legally Formal Firms: Targeting Business Support to Entrepreneurs in South Africa’s Townships*

Although the government of South Africa (SA) has formally adopted a policy of proactive support of entrepreneurship, providing business assistance to all of its entrepreneurs is beyond SA’s financial and human resource capabilities. This study utilizes the results of an in‐depth survey of entrepreneurs in SA’s townships to find: (1) The business and owner traits that predict revenues and job creation among the township entrepreneurs, (2) The key issues that challenge township entrepreneurs; and (3) What the answers to these issues imply about the appropriate content and recipients of business assistance to township entrepreneurs. A distinction is helpful in framing this study’s approach. In SA, registered (licensed) businesses are legally formal firms. In contrast, economically formal firms have institutionalized processes that lead to success as a profit‐making firm. We use this distinction in our analysis of the data and framing of the implications for business assistance strategy in SA.     

Patterns of Research Productivity in the Business Ethics Literature: Insights from Analyses of Bibliometric Distributions

In any academic discipline, published articles in respective journals represent “production units” of scientific knowledge, and bibliometric distributions reflect the patterns in such outputs across authors or “producers.” Closely following the analysis approach used for similar studies in the economics and finance literature, we present the first study to examine whether there exists an empirical regularity in the bibliometric patterns of research productivity in the business ethics literature. Our results present strong evidence that there indeed exists a distinct empirical regularity. It is the so-called Generalized Lotka’s Law of scientific productivity pattern: the number of authors publishing n papers is about 1/n ^c of those publishing one paper. We discuss the likely processes that underlie the productivity pattern postulated by the Generalized Lotka’s Law. We find that the value of the exponent c is equal to about 2.6 for the comprehensive bibliometric data across the two leading business ethics journals. The observed research productivity pattern in the business ethics area, a relatively young discipline, is interestingly very consistent with those found in much older, related business disciplines like economics, accounting, and finance. We discuss the general implications of our findings.     

On automated e‐business negotiations: Goal,policy, strategy,and plans of decision and action

In recent years, there has been increasing interest in automated e‐business negotiations. The automation of negotiation requires a decision model to capture the negotiation knowledge of policymakers and negotiation experts so that the decision‐making process can be carried out automatically. Current research on automated e‐business negotiations has focused on defining low‐level tactics (or negotiation rules) so that automated negotiation systems can carry out automated negotiation processes. These low‐level tactics are usually defined from a technical perspective, not from a business perspective. There is a gap between high‐level business negotiation goals and low‐level tactics. In this article, we distinguish the concepts of negotiation context, negotiation goals, negotiation strategy, and negotiation tactics and introduce a formal decision model to show the relations among these concepts. We show how high‐level negotiation goals can be formally mapped to low‐level tactics that can be used to affect the behavior of a negotiation system during the negotiation process. In business, a business organization faces different negotiation situations (or contexts) and determines different sets of goals for different negotiation contexts. In our decision model, a business policymaker sets negotiation goals from different perspectives, which are called goal dimensions. A negotiation policy is a functional mapping from a negotiation context to some quantitative measures (or goal values) for the goal dimensions to express how competitive the policymaker wants to reach that set of goals. A negotiation expert who has the experience and expertise to conduct negotiations would define the negotiation strategies needed for reaching the negotiation goals. Formally, a negotiation strategy is a functional mapping from a set of goal values to a set of decision‐action rules that implement negotiation tactics. The selected decision‐action rules can then be used to control the execution of an automated negotiation system, which conducts a negotiation on behalf of a business organization.     

Context-Sensitive Access Control Model for Government Services

During the past two decades, e-government information systems have become less paper-based and more computer-based. Those information systems usually take the form of workflow systems. Due to the large social impact of e-government systems, computer security plays a pivotal role in ensuring its efficiency and effectiveness. Access control is one of the key aspects of computer security. Current access control models do not take into account the context of the system and its environment. In this article, we argue that a formal context-sensitive access control model can improve the development of e-government workflow systems and present a particular context-sensitive access control model. The subject of the article is a specification of the context-sensitive access control model for business processes (COBAC). By using a context-sensitive access control, it is possible to define more sophisticated access control policies that cannot be implemented by existing access control models. The COBAC's context is modeled using Web Ontology Language (OWL) in order to provide formal representation of context, rich representation of diverse contextual information, semantic interoperability between various context-aware systems, and a high degree of inference making. The presented model is applicable in different e-government systems, and supports the definition of access control policies for both simple and complex business processes. The model's prototype is verified by a case study on a real e-government business process—the national petty offense trial proceedings.     

The Joint Effects of Formal Institutions and Business Characteristics on Interfirm Guanxi in China: A Fuzzy Set Analysis

ABSTRACT

Purpose: This research intends to investigate the effects of formal market institutions on managers’ willingness to use personal networks, such as guanxi in China, for business success.

Methodology: We collect data from a major cellular phone manufacturer and its 277 retailers across China. We employ Fuzzy set Qualitative Comparative Analysis (FsQCA) to identify necessary conditions and causal recipes (combinations of antecedent conditions) for three elements of guanxi between boundary spanners (i.e., ganqing, information favor, and business support) and a firm’s operational performance.

Findings: We find that formal market institutions are not the sole factor influencing managers’ decisions on exercising guanxi practices and, in turn, achieving interfirm collaboration. We also find that there exists more than one causal recipe leading to each key element of guanxi between boundary spanners. The results also suggest that well-established formal market institutions would never be able to completely eliminate guanxi practices in China.

Originality: This paper is among the first to examine the joint effects of formal market institutions and key characteristics of interfirm relationships on the use of guanxi practices.     

Happiness and the market: the ontology of the human being in Thomas Aquinas and modern functionalism

In this paper, we aim at identifying a concept of man that can represent a reference point for those who work or supervise social processes characterized by commercial or economic purposes. Economic, management, and organizational theories and ideas have a large impact on the way we think of ourselves, and we act accordingly. By making a radical departure from the ontological assumptions, this paper proposes a shifting of the current paradigm in terms of how we theorize about man. In order to do this, we analyze the ontological level of the relationship between the idea of happiness and the concept of man from medieval scholastics, and the relationship between the idea of happiness and functionalism in social science. We first prove the formal equivalence between the structures of human choice as described in the qq. 6–21 Prima Secundae of the Summa Theologiae of St. Thomas Aquinas, and the model of problem‐solving behavior as conceptualized in popular management models. Then we show that the Aquinas theory of action could provide a more adequate view of economy and business in the sociocultural and environmental context in which they operate. Finally, we present the implications of this study for management theory, practice, and education.     

The UK Research Assessment Exercise (RAE) 2001 and Retail Research Output

Knowledge creation processes in British Universities have been affected significantly by formal evaluations of research performance. The Research Assessment Exercise (RAE) 2001 in the UK shows that retail research is based primarily in the business and management subject area and in selected institutions. There is a tension amongst institutional strategies to maximise assessment results and thus income, individual career paths, journal 'ratings' and the direction of research. The emerging focus on a North American model of research knowledge creation raises fundamental concerns covering the philosophy, methodology, techniques and topics of retail research in the UK.     

Internationalization Strategies of Business Schools: How Flat Is the World?

Business school strategy has become extremely complex, especially regarding internationalization. Using different paths, experiencing failure and success, business schools have internationalized, attracting many of the international students who contributed $27 billion¹ to the US economy in 2014. Some business schools are global, training global managers, while others serve national markets. How do business schools strategize about internationalization? Can we use existing models to explain this process? Are internationalization and globalization similar? Using a comparative analysis of six case studies in the United States and Europe, we found that the engine of internationalization influences its paths and outcomes. We contribute to international business (IB) research by discussing how business schools strategize their internationalization toward uniformity or diversity under isomorphic pressures from accreditation bodies (Association to Advance Collegiate Schools of Business [AACSB], 2011) and rankings. The so‐called Uppsala model should be extended to address three tensions: internationalization versus globalization, enacted dimensions of audiences, and respective risks of different internationalization pathways. © 2015 Wiley Periodicals, Inc.     

The social desirability response bias in ethics research

This study examines the impact of a social desirability response bias as a personality characteristic (self-deception and impression management) and as an item characteristic (perceived desirability of the behavior) on self-reported ethical conduct. Findings from a sample of college students revealed that self-reported ethical conduct is associated with both personality and item characteristics, with perceived desirability of behavior having the greatest influence on self-reported conduct. Implications for research in business ethics are drawn, and suggestions are offered for reducing the effects of a socially desirable response bias. Donna M. Randall is an Associate Professor in Management and Systems at Washington State University. Her research interests include organizational commitment, media coverage of elite crime, and ethical issues in management. Her publications have appeared in such journals as Decision Sciences, Academy of Management Review, and Journal of Business Ethics.Maria F. Fernandes is a doctoral student in the Department of Management and Systems. Her research interests lie in the area of business ethics and equity theory. Her current research explores cognitive processes involving ethical decision making.     

Bridging the Theory-Practice Gap in Business Marketing: Lessons from the Field—The JBBM at 21

ABSTRACT

Purpose: The purpose of this article is to first examine the distinctive role that Journal of Business-to-Business Marketing (JBBM) assumes in the marketing discipline, explore its heritage and notable accomplishments, and highlight the opportunities and challenges that specialized business journals confront across functional areas. Next, the authors explored the academic-practitioner divide and propose action steps that can be followed to craft corporate research partnerships to address business marketing problems.

Methodology/approach: The authors drew on research experience gained across more than a dozen empirical studies that have been used in a collaborative approach with a partner firm from the business-to-business sector to examine a core marketing problem.

Findings: High levels of engagement and support from the partner organization appear to be most likely to occur when members of the partnering firm were actively involved in framing the research question.

Research implications: A set of action steps is proposed as a vehicle for initiating and managing a corporate research partnership. By providing potential access to rare data, a collaborative approach may provide a path for attacking substantive research issues in business marketing.     

From ‘Whodunit’ to ‘How’: Detective Stories and Auditability in Qualitative Business Ethics Research

Ethical considerations in today’s businesses are manifold and range from human rights issues and the well-being of employees to income inequality and environmental sustainability. Regardless of the specific topic being investigated, an integral part of business ethics research consists of deeply comprehending the personal meanings, intentions, behaviors, judgements, and attitudes that people possess. To this end, researchers are often encouraged to use more qualitative methods to understand the dynamic and fuzzy field of business ethics, which involves collecting in-depth information in real time. Qualitative methods in business ethics research, however, raise the two-fold responsibility of not only conducting such investigations fairly and appropriately, but also clearly communicating the research processes and outcomes to readers. Especially leading journals in the field such as Journal of Business Ethics have a responsibility to conduct their business (i.e., the business of high standard publishing) ethically, by making sure that their content represents clear and honest communications of research concerning a wide range of business systems. Unfortunately, the question of how to effectively facilitate transparent insight into the research process of qualitative business ethics studies is still unresolved. Both the lack of a clear communication of methods and results and the iterative nature of qualitative methods often make it difficult for the readers to properly assess a qualitative business ethics study and understand its results. We propose the use of narratives to remedy this situation. Specifically, we suggest a new classification of audits, named second-party audits, to facilitate a better understanding of research procedures ex-post for the readers. To illustrate this new narrative-based reconceptualization of audits, we use Agatha Christie’s detective novel The Murder on the Links as a frame of reference.

     

On the Influence of Interpersonal Relations on Business Practices in Latin America: A Comparison with the Chinese Guanxi and the Arab Wasta

The connection between interpersonal relationships and business practices is currently an object of study in the field of international business. The authors have identified a significant body of research literature characterizing this phenomenon in China, where it is denominated as guanxi, as well as a recent interest of the academy in studying the Arab wasta (i.e., clout or influence). The authors argue that a similar phenomenon occurs in Latin America and identify patterns similar to those of guanxi and wasta in a cultural artifact called compadrazgo. The article offers insight for managers and individuals interested in doing business in Latin America. © 2015 Wiley Periodicals, Inc.     

The Chinese business system and its authoriliberal economic model

China's position as one of the most powerful nations in the world is undisputed. However, in an evolving landscape, China's utilization of a path-dependent business system may hinder the ability of the country's institutions to undergo necessary change, which will have important implications for international business literature. Through business system theory, empirical evidence, and a mixed methods approach, we discuss China's business system explaining how the system may impair sustainable growth and the transformation required by a less dependent industrial society. Our research suggests that the Chinese business system is still very arrested due to its recent past, and the Chinese Communist Party has only partial interest in improving some of the most important bases for the development of modern enterprises, even if fostering a somewhat liberal economic approach. Since similar political (authoritarian) and economic (liberal) approaches are found elsewhere, we theorize on what we called an authoriliberal economic approach.     

工作流平台在ERP业务流程管理中的应用研究

经过10多年的发展,ERP系统在企业中应用已经日趋成熟,ERP作为大多数企业中的核心业务系统,其重点处理的是企业中的业务对象,如物资管理（物流）、人力资源管理（人流）、财务资源管理（财流）、信息资源管理（信息流）等,而企业的信息化需要实现的除了业务对象管理外,还有业务流程（BusinessProcess）的管理。工作流就是将一系列相互衔接、自动进行的业务活动或任务进行管理的系统。本文将就工作流系统在ERP系统业务流程管理中的应用进行探索和研究。     

Value Creation,Management Competencies,and Global Corporate Citizenship: An Ordonomic Approach to Business Ethics in the Age of Globalization

This article develops an “ordonomic” approach to business ethics in the age of globalization. Through the use of a three-tiered conceptual framework that distinguishes between the basic game of antagonistic social cooperation, the meta game of rule-setting, and the meta-meta game of rule-finding discourse, we address three questions, the answers to which we believe are crucial to fostering effective business leadership and corporate social responsibility. First, the purpose of business in society is value creation. Companies have a social mandate to organize mutually advantageous cooperation. Second, business ethics should teach the management competencies necessary to fulfill business’s societal mandate. These competencies are optimization competence in the basic game of value creation, governance competence in the meta game of (political) rule setting, and the three discourse-related skills of orientation competence, reception competence, and communication competence necessary for engaging in the meta-meta game. Third, companies can help solve global problems through global corporate citizenship if they participate as political and moral actors in rule-setting processes and rule-finding discourse aimed at laying the foundation for value creation on a global scale.     

What: An argumentative groupware approach for organizing and documenting research activities

The topic of this paper is a process‐vs.‐product design method representation called Argumentative Writing (AW). Argumentative writing is a multi‐representation approach for conducting and reporting research projects. AW has at least two representations: one for structuring the problem‐understanding/solving process and one for communicating its product to others. We discuss WHAT, a hypertext‐based tool for AW. In WHAT (Writing with a Hypermedia‐based Argumentative Tool), the design process is captured using Rittel's Issue Based Information Systems (IBIS) method (Conklin, 1988; Hashim, 1990a; Rittel, 1980). The product of the design process is represented in WHAT using a general document‐representation scheme. In the Introduction we raise four major issues that we explore in the rest of the paper. Also in the Introduction, we show the impact the WHAT approach can have on organizational computing applications such as business education and training (Hashim, Rathnam, & Whinston, 1991) and the design of dialectical organizational information systems. The section “A Methodological Basis for AW Tools”; deals with the rationale behind choosing the IBIS method in capturing the design process. The section after that explains WHAT, and the section following it explores its use as a groupware tool. The applicability of WHAT and its pros and cons are discussed in two separate sections. In the Conclusion we outline the potentiality of the approach and present suggestions for its further development. Since our first reporting on WHAT (Hashim, 1990b), the AW approach was found applicable to educational, scientific, and business areas. One such application is for structuring case discussions in business schools (Hashim et al., 1991).     

Negotiators’ Attitudes toward Signing Business Contracts: Evidence from Greece and Israel

This study extends beyond negotiation process and styles, and focuses on negotiators’ tendency to sign formal contracts. Drawing on a risk mitigation perspective, it examines the influence of businesspeople's levels of horizontal and vertical individualism‐collectivism, ethical idealism, and trust propensity on their attitudes toward signing formal negotiated business contracts in Greece and in Israel. A survey questionnaire was translated from English to Greek and to Hebrew, and 649 responses were collected from employees who worked in industries such as banking, insurance, construction, manufacturing, retailing, and tourism in the Greek and Israeli private and public sectors. Our findings suggest that higher levels of horizontal individualism, horizontal collectivism, and ethical idealism increase employees’ tendency to sign formal contracts, whereas lower levels of general trust are associated with a higher propensity to sign formal contracts. Interestingly, employees’ propensity to sign formal contracts was significantly lower in Israel than in Greece. We argue that the propensity to sign formal contracts, and thus to mitigate potential agreement risks, is dependent on the individuals’ cultural and personal attributes. The study provides practitioners with a set of cultural and individual attributes that can serve as predictors of negotiators’ predisposition toward signing business contracts. © 2015 Wiley Periodicals, Inc.     

Phronesis in administration and organizations: A literature review and future research agenda

Phronesis is essential for good decision-making and actions. This literature review shows how phronesis has been discussed and related to elements of the field of administration and organizations. A search in the database systems Scopus, EBSCO, Web of Science, and Scielo, based on eligibility criteria, resulted in 43 theoretical and 14 empirical works. The analysis of these studies showed the most significant empirical contributions, the most cited authors, methods, journals, and central themes addressed in studies on phronesis to understand ethics in business. From a virtue ethics perspective, we discuss the major theoretical and empirical contributions, as well as the implications of a restricted understanding of phronesis when it is treated apart from other elements of the virtue ethics framework. We present a synthesis of the concepts of phronesis, based on dimensions of magnitude and amplitude of the conceptions, ranging from formal to substantive phronesis, and covering individual, organizational, or societal levels of analysis. We argue that a substantive conception of phronesis within virtue ethics may improve our understanding of ethics because it assumes the interdependence of phronesis and moral virtues, integral anthropology, and the common good. We present a future research agenda, considering the study's limitations and findings.     

Factors influencing the search for information about genetically modified food products

A recent application of biotechnology to food is genetic modification. Genetically modified (GM) plants, animals and processed foods have been introduced to the international marketplace in the 1990s. As scientific and technological progress in modern biotechnology continues at a breakthrough pace, the consumers are presented with different types and levels of information that is potentially relevant for making choices. Findings from studies of consumer attitudes and awareness towards GM products have varied greatly. Many studies, however, have indicated that public opinions about GM products are not fully formed and the task of informing the public is far from over. This study expands on previous research by examining the factors that influence the search for information about GM products. Utilizing the theory of consumer behaviour and information search, we analyse consumers’ information search patterns about GM products. Specifically, we estimate the probability that consumers search for information actively, passively or do not search for information at all, and the factors influencing this search. An ordered probit model is formulated to measure the factors, both economic and behavioural, that influence in‐formation search by consumers for GM products. Variables representing the informational attitudes and behaviour related to GM products have the greatest impact on the probability of searching for information about GM products. With the exception of age, demographic factors are not significant. The results point to information search, not, for the genetically modified characteristic, but instead for the absence of the characteristic.     

Innovation patterns and their effects on firm performance

This study aims to identify various innovation patterns and understand their effects on firm performance across business service sectors. By collecting empirical data from 198 Korean business services firms, we explore these firms’ major innovation patterns, conceptualized as combinations of different service innovation dimensions: service concept, service delivery, customer interaction, and technology. Then, in accordance with the innovation patterns they display, we group these firms into four clusters: ‘service delivery-based high-technology', ‘service delivery and customer interaction-integrated', ‘customer interaction-based high-technology', and ‘strongly balanced’ innovators. Last, we investigate whether these patterns influence firm performance. Our findings are three-fold: (1) the innovation patterns in business service firms result from the creation of new combinations of major service innovation dimensions, (2) four independent innovation patterns emerge in business service firms, and (3) these patterns lead to different levels of firm performance. Practically, our findings highlight the importance of highly qualified employees, customer interaction, and technology in improving financial performance.