Innovating for Good in Opportunistic Contexts: The Case for Firms’ Environmental Divergence

Journal of Business Ethics - Opportunistic behaviors are considered ethically and strategically troublesome since they disrupt otherwise mutually beneficial relationships. Previous literature has...     

Publishing in an Environment of Predation: The Many Things You Really Wanted to Know,but Did Not Know How to Ask

ABSTRACT

The purpose of this research note is to define and review the extent of “predatory¹1. Predatory an adjective of, relating to, or practicing plunder, pillage, or rapine; inclined or intended to injure or exploit others for personal gain or profit as in predatory pricing practices; living by predation, predaceous; adapted to predation. Source: (https://www.merriam-webster.com/dictionary/predatory#synonyms) To avoid connotative inaccuracies the authors intend to convey the construct predatory in its broader sense thereby striving toward denotative accuracy.” publishing process practices in academic journals in recent years. In addition, ascertaining what, if any, substantive damage can result from these practices. And to derive “warnings signs” for those embarking on the road to creating/distributing what they have learned. “Predatory publishing” is the charging of a fee or proving value in exchange for the publication of research material without providing the publication services an author would have reasonably expected such as peer review and editing to mention only a few. There is evidence that this “practice” has sadly grown in prevalence in recent years. Following a review of the literature and using case study methodology, it was found that damages in the case of one large publisher were estimated to be over $50 m, as per a court adjudication in the US. With open access publishing becoming more popular as a result of institutional, funder and national mandates, it is likely more authors could be tempted or even baited into making poor decisions and publishing their research articles in illegitimate journals, wasting funding resources and damaging their research reputations. These and other implications are considered, as well as enumeration of such behaviors with an eye toward fostering deterrence. Further research and actions that could mitigate the problems are outlined.     

Information technology, organizational form, and transition to the market

The paper reviews theories of information technology adoption and organizational form and applies them to an empirical analysis of firm choices and characteristics in four transition economies: Czech Republic, Hungary, Romania, and Slovakia. We argue that two major structural changes have occurred, one concerning technology and another concerning firm ownership and boundaries, and we consider how each change may have affected the other. We estimate the impact of firm size, integration, and ownership on new information technology adoption and the impact of information technology on changes in firm boundaries and ownership, using a sample survey of 330 firms.     

Long-term unemployment, social assistance and labor market policies in Romania

Long-term unemployment in Romania has grown in both absolute and relative terms in the last few years, leading to increased expenditures, both absolutely and in relation to unemployment benefits, for the support allowance and social assistance programs and for pensions to labor force drop-outs. The paper uses a variety of data sources, including registration information, labor force surveys, and our own survey of registered unemployed (SRU) to describe these trends in the characteristics of Romanian unemployment and to examine differences across unemployment benefit (UB), short-term and long-term support allowance (SA) recipients. We employ the data to estimate the transition flow probability from the UB to the SA program; discuss the work incentives, income maintenance effects, and public costliness of the labor market and social insurance (including pension and disability) policies; and investigate the effects of the policies and of other characteristics of the unemployed and the areas where they live on the hazard for the escape rate from unemployment for UB and SA recipients separately.     

Requirements planning systems in the health care environment

An important problem confronting health care administration is cost containment in hospitals. Much of the current high costs can be traced directly to outdated procedures in materials management leading to waste, excessive inventory and unnecessary obsolescence of expensive short shelf life items. In this paper, we illustrate how a modern requirements planning system for surgical supplies was developed for a private hospital in Houston and used to effectively hold inventory levels to the minimum required to support a detailed schedule of surgical procedures. We also discuss some specific problems involved in the transfer of manufacturing technology to the hospital setting.     

Incentive contracts,corporate governance,and privatization funds in Romania

This paper analyzes the governance problems of the Romanian Private Ownership Funds (POFs), critical institutions both in the privatization process and in the future ownership and control structure of the Romanian economy. Although the POFs share similar problems with mass privatization intermediaries elsewhere, the satisfactory performance of Romanian funds faces additional obstacles due to the bureaucratic character of their initial organization, the continuing involvement of the state in their governance and operation, and the complexity of the tasks that they are supposed to accomplish. The POFs are charged not only with governing companies and managing their portfolios, but with part of the task of selling the remaining state shareholdings. We review instruments of corporate governance that could potentially induce them to perform these tasks, and conclude that the standard practices are likely to be seriously deficient in the case of the Romanian POFs. One possibility which has not yet been adopted is an incentive payment scheme for POF executives. We analyze the difficulties of implementing such a scheme with a multi-task principal-agent model, and propose a practical solution to the incentive design problem. We argue that, while some such method is certainly necessary to induce the POFs to perform their assigned tasks even approximately, it is by no means sufficient to enliven the Romanian privatization process. The author is grateful for a research grant from the National Council for Soviet and East European Research, received through the Center for Economic Policy Research at Stanford University. Encouragement from Ralph W. Pfouts, discussion with Alexander Dyck, and comments from Roman Frydman on an earlier draft are gratefully acknowledged.     

The results of ‘mass privatization’in Romania: A first empirical study1

This paper provides an assessment of the contribution to privatization in Romania of the 1995-96 Mass Privatization Programme (MPP), which offered shares in nearly 5,000 companies to citizens in exchange for coupons. Analysing a comprehensive database of MPP companies, we find that an average of only 18.7 per cent of these companies' shares were actually transferred to Romanian citizens, and only 7.8 per cent of the companies were majority privatized (on a size-weighted basis). We estimate that the MPP accounted for only about 5.5 per cent of the value of state-owned enterprise assets inherited from the socialist period. The design of the programme created highly dispersed ownership structures, which is likely to generate particularly difficult problems in the many small companies in the programme. We place our findings in the context of the history of Romanian privatization policies since 1990, and provide some comparisons with mass privatization programmes in other countries. We also analyse the implications of the MPP for the corporate governance and the restructuring of enterprises.     

Does Business and Society Scholarship Matter to Society? Pursuing a Normative Agenda with Critical Realism and Neoinstitutional Theory

To date, B&S researchers have pursued their normative aims through strategic and moral arguments that are limited because they adopt a rational actor behavioral model and firm-level focus. I argue that it would be beneficial for B&S scholars to pursue alternate approaches based on critical realism (CR) and neoinstitutional theory (IT). Such a shift would have a number of benefits. For one, CR and IT recognize the complex roots of firm behavior and provide tools for its investigation. Both approaches also note the importance of social context and IT, in particular, points to tangible sites where changes in (and outcomes of) corporate practices can be assessed. CR also has an emancipatory ethos which harkens a role for scholars in social change, while IT provides mechanisms to ground this ethos in tangible activities that go beyond appealing to managers’ strategic or moral sensibilities.     

Privatization, Competition, and Budget Constraints: Disciplining Enterprises in Russia

We investigate whether privatization, competitive forces, and the hardening of budget constraints played efficiency-enhancing roles in Russia in the immediate post-privatization period. We find evidence of a positive impact of privatization on labor productivity: a 10% point increase in private share ownership raises real sales per employee by 3–5%. The evidence on product market competition is weaker, depending on model specification. Soft budget constraints are usually found to reduce restructuring but the effect is small and insignificant. We find that in terms of their impacts on productivity, privatization and subsidy reduction are substitutes; privatization and competition (measured as the geographic scope of markets) are complements; and that competition and subsidy reduction are independent. This revised version was published online in August 2006 with corrections to the Cover Date.