Strategic Groups,Frontier Benchmarking and Performance Differences: Evidence from the UK Retail Grocery Industry*

ABSTRACT In this paper we seek to advance the theory and practice of strategic group theory by means of powerful benchmarking tools that allow the composition of strategic groups on the basis of empirically derived production function frontiers. The relative performance of firms is assessed based on multiple inputs and outputs and as a result, firms are associated with different segments of the efficient frontiers. These segments constitute strategic facets and are used in the current paper as strategic group variables. The strategic facets are composed by outlier firms in the sense that they satisfy the Pareto dominance criterion when compared with other firms. Such advancement offers significant advantages compared to the ‘average’ firm that is used traditionally as a basis to define strategic groups. The proposed methodology for the formation of strategic groups has been applied on a panel of data from the grocery industry in the UK in the period 1987–93. The results of the study confirmed the existence of three stable strategic groups and one with a more volatile membership. Performance differences were also identifiled both between and within strategic groups using as criteria traditional accounting methods and also the relative efficiency indices obtained from the benchmarking methodology applied to the panel of data.     

Regional Foreign Direct Investment and Wage Spillovers: Plant Level Evidence from the UK Electronics Industry*

This paper examines the extent to which foreign investment in the UK generates wage spillovers in the domestic sector of the economy using a simultaneous dynamic panel data model and focusing on the electronics sector, possibly the most ‘globalized’ sector of UK manufacturing. It finds evidence that the higher wages paid by foreign firms cause wages in the domestic sector to be bid up. This phenomenon is, however, largely confined to the region where foreign direct investment takes place.     

The Utility of Social Obligations in the UK Energy Industry*

abstract The imposition of social obligations on the UK energy supply industry provides an important opportunity to examine how social responsibilities are construed by companies and how these constructions relate to perceptions of the role of regulation, specifically the scope for compromise and influence with the regulator. Our data suggest four templates for understanding this relationship: embracing social obligations, business as usual, management deliberation, and conflicts with commerce. First, embracing social obligations is based on competitive advantage and struggles for market leadership, and highlights informal mechanisms in attempts to influence the regulatory agenda. Second, business as usual reflects pre‐existing standard operating procedures and a generalized approach to serving the broad consumer base in line with regulation as formal policing procedures. Third, management deliberation is a way of either reflecting upon or stalling progress on social issues, and suggests compromise and passivity in regulatory relations. Fourth, conflicts with commerce focuses on the inherent difficulties of reconciling social obligations with economic regulation and a profit orientation, so that meeting minimum standards or the risk of regulatory censure may be sensible strategies. Together these templates emphasize the subjective and multiple nature of social responsibility and of regulatory relationships, and demonstrate struggles for the strategic and operational meaning over the nature of public interest and competitive advantage.     

Empowerment and Accountability: Evidence from the UK Privatized Water Industry

abstract    Empowerment initiatives have become popular in recent years in programmes of organizational change, but their impact as a practical managerial policy remains shrouded in ambiguities. We attempt to provide a fuller understanding of their impact, firstly by exploring managers' understanding of what constitutes empowerment, and secondly by locating the analysis of changes in managers' experiences of empowerment in the context of their experiences of changes in accountability practices. Drawing on data from interviews with managers and a mail questionnaire, we argue that the experience of empowerment is multi-faceted, and shaped by managers' attitudes towards it. Moreover we find that accountability plays a more significant and independent role in encouraging managers to engage in empowerment than has hitherto been acknowledged.     

Within and Beyond Communities of Practice: Making Sense of Learning Through Participation,Identity and Practice*

abstract Situated learning theory offers a radical critique of cognitivist theories of learning, emphasizing the relational aspects of learning within communities of practice in contrast to the individualist assumptions of conventional theories. However, although many researchers have embraced the theoretical strength of situated learning theory, conceptual issues remain undeveloped in the literature. Roberts, for example, argues in this issue that the notion of ‘communities of practice’– a core concept in situated learning theory – is itself problematic. To complement her discussion, this paper explores the communities of practice concept from several perspectives. Firstly, we consider the perspective of the individual learner, and examine the processes which constitute ‘situated learning’. Secondly, we consider the broader socio‐cultural context in which communities of practice are embedded. We argue that the cultural richness of this broader context generates a fluidity and heterogeneity within and beyond communities. Finally, we argue that it is sometimes difficult to distinguish conceptually between the terms ‘participation’ and ‘practice’ because of occasional duplication of meaning. We propose, instead, a refinement of the definition to allow for greater conceptual clarity.     

Regulation,self-regulation and environmental consensus: lessons from the UK packaging waste experience

This paper uses the case study of UK packaging waste policy to illustrate the problems of developing environmental self-regulation. In July 1993, the UK Secretary of State for the Environment ‘challenged’ British business to organise and run a self-regulatory scheme to recover between 50 and 75 per cent of packaging waste by 2000. But the response was dogged by differences of opinion within business and a lack of political will from business and government. Consequently, the businesses approached to develop this scheme declared self-regulation unworkable and lobbied government to introduce national legislation. This case study suggests that self-regulation works best where it fits the status quo by formalising existing practices or encourages incremental change to those practices. Where major changes to the status quo are needed, self-regulation may founder because it fails to bind together diverse sectors and companies which are differentially threatened by those changes and thereby fails to ensure voluntary compliance. © 1997 John Wiley & Sons, Ltd and ERP Environment.     

Understanding Labour Turnover in a Labour Intensive Industry: Evidence from the British Clothing Industry*

ABSTRACT The clothing industry is both a quintessential global industry and one that is inescapably labour intensive. Despite more and more production shifting to low wage economies in the past decades, there remains a significant amount of clothing manufacturing in high wage economies. This study examines the drivers of change that are forcing restructuring in one such country and the outcomes of such changes for the organization of production. Because the changes have involved treating workers as a resource to be developed rather than a cost, preventing labour turnover has become a crucial component of this strategic repositioning. In presenting the results of a national survey of UK clothing manufacturers we find that high labour turnover rates persist. We discuss the historical background to this phenomenon and current trends, and then explore the principal variables that might explain these trends. We conclude with a discussion of the outcomes facing firms in this industry and comment on why managers resist comprehensive changes in organizational routines and the effort bargain.     

物流企业如何应对后金融危机时代困境

通过分析在后金融危机时代,我国物流企业所面临的困境,指出物流企业应从提升企业的资本实力和服务能力,降低企业运营成本,提高员工综合素质,提高企业信息化程度等四个方面应对后金融危机时代。     

Contrasting Institutional and Performance Accounts of Environmental Management Systems: Three Case Studies in the UK Water & Sewerage Industry*

abstract This paper presents results from a longitudinal, qualitative study into the adoption of environmental management systems (EMS) in three companies in the UK water & sewerage industry. Based on institutional theory and the literature on EMS, four factors related to the adoption of EMS are identified: external and internal institutional forces, environmental performance issues, and economic performance issues. While previous literature has often assumed a balance of performance and institutional factors or a preponderance of performance factors, the results of this study indicate that institutional forces are the predominant drivers. The results further indicate that environmental performance issues become less important over time, whereas institutional drivers and economic performance rationales increase in importance over time. While conforming to institutional pressures can result in improved economic performance of a company, adoption of environmental management systems mostly on the basis of institutional and economic factors has wider repercussions for the state of corporate environmental management and progress towards greater ecological sustainability of business.     

物流企业如何应对后金融危机时代困境

通过分析在后会融危机时代,我国物流企业所面临的困境,指出物流企业应从提升企业的资本实力和服务能力,降低企业运营成本,提高员工综合素质,提高企业信息化程度等四个方面应对后金融危机时代.     

Corporate Governance,Strategy and Survival in a Declining Industry: A Study of UK Cotton Textile Companies*

ABSTRACT Building on the strategic flexibility perspective, this paper examines the influences of organizational diversity, ownership structure and board characteristics on strategic responses to industrial decline in firms from the UK textile industry. Using samples of exiting and surviving companies it shows that, in line with the predictions of the strategic flexibility framework, the surviving companies tended to have a higher level of organizational diversity. They also tended to have larger institutional ownership and more diverse boards. These factors are associated with higher investment, financial performance, and growth. The results are consistent with the resource and service roles of the corporate governance factors.     

Fractional Integration and the Dynamics of UK Unemployment*

This article is concerned with estimating the dynamic behaviour of UK unemployment using fractional integration methods. The question it considers is whether an unemployment model using a relatively small set of determinants of unemployment is consistent with the persistence which estimates an integrated model yield, or the much long‐lasting estimates obtained from fractional integration. Our empirical tests favour the latter version. The results show that when accounting for UK unemployment in terms of lagged values of the real oil price and the real interest rate, unemployment appears fractionally integrated. This finding means that although unemployment is mean reverting, once it is shocked it may take a very long time to recover, and our estimates of the response times are considerably in excess of those previously reported in the literature.     

Transforming Qualitative Survey Data: Performance Comparisons for the UK*

This paper assesses different ways of converting qualitative data obtained in surveys into quantitative indices for a number of economic variables. The research reported here focuses on the main UK employers’ business survey for manufacturing – the CBI industrial trends survey. Six response variables are investigated – plant and machinery investment, output, employment, exports, price and cost. We find that the balance statistic is a satisfactory method of transforming three of the variables: investment, output and exports.     

Capital Services Growth in the UK: 1950 to 2006*

This paper describes a capital services dataset for the United Kingdom developed for use in empirical work, and some of its key features. The estimates are consistent with National Accounts output estimates, making them ideal for use in growth‐accounting or business‐cycle analysis. The divergence between the volume of capital services and the volume of the capital stock after 1980 is highlighted. This divergence is driven by a shift in investment towards short‐lived and more productive information and communication technology assets for which the flow of capital services is high. Standard capital stock measures understate growth in the productive input of capital, especially after 1990.     

The Impact of the 2008 Crisis on UK Prices: What We Can Learn from the CPI Microdata1

This paper takes the locally collected price quotes used to construct the CPI index in the UK for the period 1996–2013 and explores the impact of the Great Recession (2008‐9) on the pricing behaviour of firms. We develop a time series framework which captures the link between macroeconomic variables and the behaviour of prices in terms of the frequency of price change, the dispersion of price levels and the size, dispersion and kurtosis of price‐growth. We find strong evidence for inflation having an effect, but not output. The change in the behaviour of prices during the Great Recession is largely explained by the changes in inflation and VAT. Nevertheless, the magnitude of the inflation effect is sufficiently small that it need not influence monetary policy.     

The Impact of the 2008 Crisis on UK Prices: What We Can Learn from the CPI Microdata1

This paper takes the locally collected price quotes used to construct the CPI index in the UK for the period 1996–2013 and explores the impact of the Great Recession (2008-9) on the pricing behaviour of firms. We develop a time series framework which captures the link between macroeconomic variables and the behaviour of prices in terms of the frequency of price change, the dispersion of price levels and the size, dispersion and kurtosis of price-growth. We find strong evidence for inflation having an effect, but not output. The change in the behaviour of prices during the Great Recession is largely explained by the changes in inflation and VAT. Nevertheless, the magnitude of the inflation effect is sufficiently small that it need not influence monetary policy.     

Failure to Mobilize in Reliability‐Seeking Organizations: Two Cases from the UK Railway*

abstract There is a considerable line of research on organizations dealing with large scale, intrinsic hazards. We know a good deal, as a result, about both the causation of catastrophic failure and its avoidance. Past work has explained failure in terms of (for example) structural vulnerabilities and organizational degradation – and reliability in terms of collective mindfulness, rigorous enculturation and high levels of social redundancy. This paper presents a study, based on a qualitative analysis of two disastrous collisions on the UK railway, of organizations that are strongly reliability seeking yet ultimately experience catastrophic failure. It argues that these cases implicated an organizational incapacity to mobilize systemic reform. The possibility of the two failures had been well‐known in the organizations before their occurrence, but this knowledge could not be converted into modification. A model is presented to explain how processes of systemic reform co‐exist with a set of phenomena that tend to undermine them. It is these that need to be the principal focus of efforts at managing catastrophic failure risks.