Determinants of knowledge transfer strategy in franchising: integrating knowledge-based and relational governance perspectives

This study presents an integrative model on the franchisor's choice of knowledge transfer strategy by deriving hypotheses from the knowledge-based theory and the relational governance view. First, based on the knowledge-based view, tacitness of system-specific knowledge influences the choice of the knowledge transfer strategy of the franchisor. The higher the degree of tacitness of knowledge, the more knowledge-transfer mechanisms with a high degree of information richness (HIR) are used, such as training, seminars, visits and formal meetings, and the more likely the franchisor chooses a personalization strategy (P-S). Conversely, the lower the degree of tacitness of system-specific knowledge, the more knowledge transfer mechanisms with a low degree of information richness (LIR) are used, such as reports, emails, intranet, databases, and the more likely the franchisor chooses a codification strategy. Second, based on the relational view of governance, trust influences the choice of knowledge transfer strategy of the franchisor. If trust reduces relational risk, more trust reduces the franchisor's use of HIR-knowledge transfer mechanisms and increases the franchisor's use of LIR-knowledge transfer mechanisms. If trust increases knowledge-sharing between the network partners, it increases the franchisor's use of both HIR- and LIR-knowledge-transfer mechanisms. The hypotheses are tested by using data on the use of the P-S in the Austrian franchise sector. The data provide some support for the hypotheses. A new model on the franchisor's choice of knowledge transfer strategy, using knowledge-based theory and relational view of governance is developed, and specifically, the knowledge-based view of Windsperger and Gorovaia [(2011). Knowledge attributes and the choice of knowledge-transfer mechanisms in networks: The case of franchising. Journal of Management and Governance, 15(4), 617–640] is extended by considering trust as additional explanatory variable of the knowledge-transfer strategy.     

A combination of differentiation and consolidation theory and risk-benefit analysis to examine decisions on mastitis prevention

Abstract

Mastitis infections cause severe pain in dairy cows and are the most costly illness to farmers. This study combined differentiation and consolidation (Diff-Con) theory with risk-benefit analysis to explore how risky decisions are perceived and justified after a decision has been taken. More specifically, using survey data from 428 Swedish dairy farmers, their decisions about adopting preventive measures to control mastitis (mastitis control options, MCO) in dairy herds were examined. The analyses included group comparisons with non-parametric rank tests and use of both ordinary least squared regression and seemingly unrelated regression analysis to examine how prior adoption of MCO affects farmers’ attitudes to the MCO. The results showed that MCOs already adopted were rated higher in perceived riskiness (if not implemented) and in expected benefit (for illness prevention) than non-adopted MCOs. Having made the decision to implement a strategy increased the likelihood of that decision being perceived as more beneficial (reducing mastitis) and risky (in terms of disease increase if not implemented), irrespective of the combination of strategies used on the farm, during the post-consolidation stage. No difference in perceived illness prevalence could explain the farmers’ rating of the MCOs. These findings suggest that there may be a path dependency in farmers’ decision-making with respect to MCO. This implies that novel MCOs may have difficulty in achieving wider implementation. These results have implications for the development of strategies to communicate best practices for use of MCOs and for new research on MCOs and farmers’ decision-making.     

Cooperation and change in union settings: Problems and opportunities

This article examines the increased levels of change and cooperation that have recently occurred in union settings. The article reports the results of interview data from 33 union/management relationships studied over a four- to seven-year period. The types of change programs discussed include productivity sharing plans, (for example, Scanlon, Rucker, and Improshare plans), area and in-plant labor/management committees, quality circles, and quality of work life projects. The focus of the article is on the problems of implementing cooperative strategies. These occur at three stages in the process: (1) establishing the cooperative framework; (2) establishing the boundaries between the cooperative and adversary processes; (3) factors interfering with continuing commitment. The author concludes with a discussion of the implications for government, management, and unions.     

If Time Is Money Is It a Common Currency? Time in Anglo,Asian, and Latin Cultures

ABSTRACT

Social time affects the timing and frequency of purchases, the hours consumers patronize businesses, and how long consumers expect products to last. Understanding how culturally based social time attitudes differ will help marketers tailor their offerings and messages to consumers whose concepts of time differ. This exploratory study combined related streams of time literature to examine constructs of social time differences across cultures. Drawing upon a sample of 1377 respondents from six countries representing three cultural groups (Anglo, Latin, and Asian), the study explores the similarity and differences of cultural social time differences among these three groups.     

The Contribution of Small and Medium Enterprises to Economic Development in Ukraine and Belarus: Some Policy Perspectives

The paper considers the development of small and medium enterprises (SME) in two transition economies where market reforms have been slow (Ukraine and Belarus), focusing specifically on the role of government in the process. Empirical data from a study on SMEs and economic development in Ukraine, Belarus and Moldova are used to consider the contribution of SMEs to different aspects of transformation whilst data from a second project are used to show the support needs of SMEs.Following the introduction, which summarises the aims and methodology, the second section presents brief profiles of the context for SME development in each country. Part 3 summarises some of the main empirical findings, focusing on those aspects that have potential policy significance, specifically with respect to employment, innovation, and market orientation, whilst the fourth section considers survey evidence of the support needs of SMEs. The final section draws out the main policy implications of the findings, whilst also setting out an agenda designed to increase the contribution of SMEs to economic development in the future.On the whole, the empirical results demonstrate that some SMEs have developed in Belarus and Ukraine despite the actions of governments, although the number of private enterprises per capita remains small and their qualitative characteristics often reflect the difficult operating conditions. As a result, their contribution to economic and social change is less than it could be, mainly due to an unstable environment and an institutional context that has yet to establish the framework conditions for sustainable private sector development. In terms of policy priorities, the survey data suggest that reform of the distorted legal and financial infrastructures that exist in these countries is the highest priority need.     

Liquidity Constraints and Investment in Transition Economies

We use Bulgarian firm-level data to investigate the impact of liquidity constraints on investment performance. Internal funds are an important determinant of investment in most industrialized countries. We test whether internal funds are important for firm investment during the current transition process in Bulgaria. We use a simple accelerator model of investment to test whether liquidity constraints are relevant in the case of Bulgaria. Our estimations are based on data for the period 1993–95, prior to the Bulgarian financial crisis in 1996–97. It turns out that Bulgarian firms are liquidity constrained, and that firms' size and financial structure help to distinguish between firms that are more and less liquidity constrained. In our view, liquidity constraints can be given a different interpretation in the case of transition economies as compared to Western economies. A more in depth analysis of the data reveals that liquidity constraints, and consequently the access to external funds for Bulgarian firm investment, are to be seen against the background of soft-budget constraints and the failure of the financial system to enforce an efficient allocation of funds. In our view, the lack of liquidity constraints may actually be seen as a sign of financial weakness in the case of Bulgaria.     

The Effect of Marriage on Education of Immigrants: Evidence from a Policy Reform Restricting Marriage Migration*

We investigate the effect of immigrants’ marriage behavior on dropout from education. To identify the causal effect, we exploit a recent Danish policy reform that generated exogenous variation in marriage behavior by a complete abolishment of marriage migration for immigrants below 24 years. The reform influenced immigrants from countries with a high historical rate of marriage migration more than immigrants from country groups with a low rate. We find that the dropout rate for males increases by 25 percentage points as a consequence of marriage to a marriage migrant, whereas the effect for females is small and mostly insignificant.     

The structure and management of government research institutes: some problems and suggestions1

The open system model is applied to examine government industrial research institutes. Their observed ineffectiveness is in part accounted for by a growing discrepancy between organizational structure and activities and rapidly changing task environments. A number of suggestions for reorganizing the research institutes are offered. It is, however, indicated that in a change program aimed at promoting organizational effectiveness: (a) the focal organization's management could assume a more active role; (b) relevant parts of the environment should also be considered as targets of change.     

Marie Jahoda (1907–2001)

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