A response to LDR 2 LDR: KNEX 2 U

An act of leadership is always an act of practical theory. We lead because we hold visions of the world as it ought to be, because of the not yet, because of the potential that we see in ideas and people. Yet, there still exists a perceived binary between leadership theory (in the strong sense) and leadership practice, a binary that divides organizations, classrooms, and the differing bodies of leadership literature. In this Symposium, Duncan Waite and his colleagues discuss the barriers they have faced in bringing theory to the educational leadership classroom, as well as the promise they feel theory holds for more productive, equitable, and humane schooling organizations.     

Delivering a superior customer experience in solutions delivery processes: Seven factors for success

In marketing complex solutions to customers, business-to-business firms face significant challenges in managing the customer experience effectively in solutions delivery processes—due primarily to the use of ad hoc teams. To learn more about these challenges, we interviewed executives from a Fortune 100 high-technology company. We identify seven factors ad hoc teams can employ to address this problem, focusing on delivery team composition, delivery processes, and organization-level changes that can be made to optimize the success of the team. In solutions selling, the delivery phase is particularly critical to success. The factors identified enable firms to better manage the customer experience and enhance performance.     

The Entry Cost Shock and the Re‐rating of Power Prices in New South Wales,Australia

Australia has long been the beneficiary of low, stable power prices. A decade‐long state of oversupply underpinned this result and while plant capital costs had been rising, the cost of capital had been declining. These offsetting effects locked the wholesale market into an average cost of $35–$40/MWh. However, from 2007, a simultaneous and sharp rise in new entrant plant capital costs and the cost of capital occurred. The combined effects crept up on the industry while it was in a state of oversupply. This ‘entry cost shock’ disrupted a 7 year long equilibrium price, with average power system cost rising to $60/MWh.     

HR managers as toxin handlers: The buffering effect of formalizing toxin handling responsibilities

Toxin handlers are organizational members who help colleagues manage negative emotions in the workplace. Although toxin handling activities help distressed employees remain productive, they put the toxin handler at risk of emotional exhaustion. In this research, more than 400 HR managers described their experience managing emotionally charged employee problems. We found that formalizing toxin handling responsibilities provided a buffering effect: HR managers whose organizations had made handling emotionally charged employee problems a formal part of HR responsibilities experienced lower levels of emotional exhaustion and perceived HR as more effective, even when they engaged in high levels of toxin handling. Formalizing toxin handling responsibilities may protect HR managers from harm and ensure that they maintain the toxin handling function in their organizations. © 2009 Wiley Periodicals, Inc.     

Home Alone: The Effects of Lone‐Insider Boards on CEO Pay,Financial Misconduct,and Firm Performance

Research summary: Corporate scandals of the previous decade have heightened attention on board independence. Indeed, boards at many large firms are now so independent that the CEO is “home alone” as the lone inside member. We build upon “pro‐insider” research within agency theory to explain how the growing trend toward lone‐insider boards affects key outcomes and how external governance forces constrain their impact. We find evidence among S&P 1500 firms that having a lone‐insider board is associated with (a) excess CEO pay and a larger CEO‐top management team pay gap, (b) increased likelihood of financial misconduct, and (c) decreased firm performance, but that stock analysts and institutional investors reduce these negative effects. The findings raise important questions about the efficacy of leaving the CEO “home alone.” Managerial summary: Following concerns that insider‐dominated boards failed to protect shareholders, there has been a push for greater board independence. This push has been so successful that the CEO is now the only insider on the boards of more than half of S&P 1500 firms. We examine whether lone‐insider boards do in fact offer strong governance or whether they enable CEOs to benefit personally. We find that lone‐insider boards pay CEOs excessively, pay CEOs a disproportionately large amount relative to other top managers, have more instances of financial misconduct, and have lower performance than boards with more than one insider. Thus, it appears that lone‐insider boards do not function as intended and firms should reconsider whether the push towards lone‐insider boards is actually in shareholders' best interests. Copyright © 2017 John Wiley & Sons, Ltd.     

Uncivil aviation: a review of the air rage phenomenon

This article examines the issue of air rage. Attempting to define and identify the extent of this phenomenon provides the context in which to review contributory factors. The analysis of violence or aggression directed at flight attendants is developed with recourse to the work of Poyner and Warne, who offer a framework for understanding violence to staff. Use of this framework suggests that air rage remains a multifaceted phenomenon, with a number of contributory factors. Identification of a variety of factors is then used to develop an analysis of possible solutions to the air rage phenomenon. These solutions are concerned with controlling the assailant and, more proactively, supporting flight attendants through initiatives such as enhanced training programmes. Finally, the article suggests a number of areas for future research that may add to an understanding of a so‐far under investigated phenomenon. Copyright © 2001 John Wiley & Sons, Ltd.     

Letter from the Incoming Editors

This paper reports a study of the key success factors of what have been recognized as successful service enterprises in China, each considered representative of its respective industry. The grounded theory approach was used to analyze information collected from these enterprises, resulting in the identification of the attributes shared by these enterprises: customer-oriented service, service management, service innovation, and corporate social responsibility. Based on these attributes, a survey was conducted to verify the relationships among these attributes and important outcomes, namely customer satisfaction, perceived service quality, and enterprise reputation. The results of the statistical analysis indicate that the four attributes have positive impacts on service outcomes. The findings are of far-reaching importance in view of the vast potential service markets in China.