What Determines Employee Perceptions of HRM Process Features? The Case of Performance Appraisal in MNC Subsidiaries

Against the background of Bowen and Ostroff's ( 2004 ) human resource management (HRM) process theorization, this study explores influences on individual employee perceptions of the visibility, validity, and procedural and distributive justice of performance appraisal in subsidiaries of multinational corporations, and at what levels these influences reside. The study adopts an embedded, multiple‐case design with interview data from 33 managers and professionals in six subsidiaries of three corporations. The findings show that perceptions of the performance appraisal process are driven by a number of influences pertaining to the unit, relationship, and individual levels. Further, the study highlights differences and similarities of influences across four performance appraisal process features, and identifies overlaps and inter‐linkages between the process features suggested by Bowen and Ostroff ( 2004 ). For practitioners, the value of our study lies in the identification of steps that can be taken to increase the likelihood that HRM practices are perceived positively and as intended by the organization. © 2014 Wiley Periodicals, Inc.     

The importance of surrogate entrepreneurship for incubated Swedish technology ventures

Universities and incubators that are more experienced in venture creation have been found to appoint surrogate entrepreneurs as one way to improve entrepreneurial team formation. However, it is not known how such intervention into the core of a venture affects performance. This article investigates the impact of surrogate entrepreneurs on technology ventures stemming from leading Swedish university incubators. From a total of 170 ventures incorporated 1995–2005, belonging to 16 incubators, 59 ventures (35%) have received incubator help to recruit a surrogate entrepreneur. Swedish surrogate ventures perform significantly better in terms of growth and revenue compared to non-surrogates. Significantly higher performance of surrogates is also found in the subgroup academic technology ventures as well as the largest technology subgroup of information and communication technology (ICT) ventures. These findings in combination with a case study of the most productive incubation environment are used to propose future research and policy regarding university incubators intervening into entrepreneurial team formation in different ways.     

Management is the solution: Now what was the problem? On the fragile basis for managerialism

This paper critically investigates the impact and meaning of managerialism in a pharmaceutical firm by exploring its shaky basis. Managers’ explanations of the failure in research leading to new products showed considerable variety. This reflects the absence of any shared understanding of research inefficiencies and difficulties to determine the roots of the problems. Despite this people blame bad management and put hope to improved responsibility of managers. The study highlights the ambiguity of causes of the research inefficiencies and how this is suppressed as well as exploited by the introduction of a vague managerialist agenda.     

Affective-symbolic and instrumental-independence psychological motives mediating effects of socio-demographic variables on daily car use

An empirical study investigates the extent to which affective-symbolic and instrumental-independence psychological motives mediate effects of socio-demographic variables on daily car use in Sweden. Questionnaire data from a mail survey to 1134 car users collected in 2007 were used to assess the relationships daily car use as driver or passenger have to sex, household type (single or cohabiting with or without children), and residential area (urban, semi-rural or rural). Reliable measures of affective-symbolic and instrumental-independence motives were constructed. The results show that households with children use the car more than households with no children, that men make more car trips as drivers than women who use the car as passenger more than men, and that households living in rural areas use the car more than households living in semi-rural areas who use the car more than households living in urban areas. An affective-symbolic motive partially mediates the relationship between the number of weekly car trips and sex, the instrumental-independence motive partially mediates the relationships between weekly car use and percent car use as driver and several of the socio-demographic variables (living in urban vs. rural residential area for both measures; sex and living in urban vs. semi-rural residential area for percent car use as driver). Of several other socio-demographic variables (age, employment, and income) affecting car use, only the relationship of the number of cars to percent car use as driver was (partially) mediated by the instrumental-independence motive.     

Tender evaluation and supplier selection methods in public procurement

The EU procurement directives stipulate that public contracts be awarded to the lowest bidder or to the bidder with the economically most advantageous tender; the latter requiring that a scoring rule be specified. We provide a simple theoretical framework, based on standard microeconomic theory, for tender evaluation (scoring and weighing) and discuss the pros and cons of methods such as highest quality (beauty contest), lowest price and price-and-quality-based evaluations. We argue that the most common method, price-to-quality scoring, is inappropriate for several reasons. It is non-transparent, making accurate representation of the procurer's preferences difficult. It is often open to strategic manipulation, due to dependence on irrelevant alternatives, and it tends to impose particular and unjustified non-linearity in bid prices. The alternative quality-to-price scoring method, where money values are assigned to different quality levels, is a better alternative. However, when the cost of quality is relatively well-known and several providers can offer optimal quality, lowest price is the preferable supplier selection method, while beauty contests may be preferred when purchasing budgets are inflexible.     

Cyclical and causal patterns of inflation and GDP growth

Empirical foundations for the view that high inflation impairs GDP growth are examined using annual data for 115 countries over the period 1960–1995. Taking into account country heterogeneity and time-specific symmetric shocks, as well as endogeneity of inflation and dynamics of GDP growth, dynamic panel-data models of the effects of inflation on growth are estimated. No evidence is found supporting the view that inflation is in general harmful to GDP growth. On the other hand, there is a negative correlation between contemporaneous intra-country inflation and growth for periods characterized by positive oil-price shocks.     

When Should an Incumbent be Obliged to Share its Infrastructure with an Entrant Under the General Competition Rules?

According to the essential-facilities doctrine, competition law requires an infrastructural monopoly to provide access. Under the Bronner criterion, proposed by the EC Court, the doctrine is only applicable when a symmetric infrastructural duopoly is non-viable. This paper uses a simple model to illustrate that, from a welfare point-of-view, the Bronner criterion may provide too little monopoly protection for the incumbent in high-risk new markets, while requiring too much investments from the entrant in low-risk mature markets.JEL classification: L43, L51     

Large investments in the pulp and paper industry: a count data regression analysis

This paper analyses the effects of price and market size variables on the investment propensities in the pulp and paper industry. A panel of 15 European countries in the time period 1988-1997 is used in the regression analysis. We find the wages, the USD/ECU exchange rate, the price of paper and the installed production capacity to be the main determinants of large investments in this industry. Our measure of market size has no - or only very small - effects.     

Quis Custodiet Ipsos Custodes? or Measuring and Evaluating the Effectiveness of Competition Enforcement

Summary  This article surveys, discusses and classifies methods for ex-post evaluation of the efficiency of competition authorities: court appeals, peer reviews, case studies, event studies, (authorities’ own) bottom-up calculations of consumer gains, deadweight-loss estimates, cross-country panel studies etc. Based on empirical estimates from other types of studies and on a simple oligopoly model, one conclusion is that many bottom-up calculations are based on exaggerated estimates of gains from cartel enforcement, relative to those from merger enforcement. Another conclusion is that authorities’ ex-post self evaluations are of limited value, relative to external evaluations. “Who watches the guardians?”, by Juvenal, 2nd century Roman poet and critic.     

The Profitability and Pricing of Major Customers

We examine the profitability and valuation of retail firms identified by suppliers as major customers, using major customer relationships to proxy for unrecorded organizational-capital intangibles. Major customers have higher operating profitability and profitability persistence, with the sources of the higher profitability consistent with purported advantages of supply chain arrangements. The pricing of major customers is consistent with the market recognizing the level and over-time properties of operating profitability. Together, these results suggest that investors understand the profitability effects of unrecorded organizational intangible assets and that financial statement analysis can be used to further examine the valuation effects of such intangibles.