The impact of stakeholder orientation on sustainability and cost prevalence in supplier selection decisions

The stakeholder approach has taken a prominent role in the discussion of sustainability measures at varying strategic levels and corporate functions. Literature on sustainability suggests that firms have to cope with enhanced pressure from different stakeholder groups regarding their upstream supply management practices. At the same time purchasing managers face the trade-off between sustainability and cost prevalence in selecting new suppliers. Thus, it is of major concern for companies in general and purchasing organizations in particular to know and understand how purchasing managers react to the influence of specific stakeholder groups when it comes to supplier selection decisions. Following this notion we formulate six sets of hypotheses linking the adoption of ethical business culture to the prevalence of sustainability and cost criteria in supplier selection decisions to be tested in a path analytical model.Based on the results of an empirical study conducted with purchasing managers from multi-national firms located in Germany, this paper makes two major contributions: first, it sheds light on direct effects of shareholder, public, and customer orientation on the evaluation of the outlined-trade off; second, it investigates the indirect effects by introducing the formalization of ethical culture as a mediating variable to assess the impact of the three kinds of shareholder orientation on the propensity to select suppliers based on their performance in terms of social and environmental criteria as well as cost performance.     

Stakeholders’ Attributes,Behaviors, and Decision‐Making Strategies in Construction Projects: Importance and Correlations in Practice

Project managers need to make decisions on how to balance competing claims between the different stakeholders in projects. Previous studies have suggested that the choice of decision‐making strategies is highly related to stakeholders’ attributes and behaviors in practice; however, limited studies have been conducted in the construction field to analyze the importance of stakeholders’ attributes, behaviors, and decision‐making strategies, and validate the correlations between the factors and decision‐making strategies. To analyze the underlying meanings of stakeholders’ attributes, behaviors, and decision‐making strategies from the practitioners’ perspectives, and indicate the influence of stakeholder‐related factors on decision‐making strategies, an interview, questionnaire survey, and case study were adopted. Empirical studies suggest that three stakeholder attributes (power, urgency, and proximity), and four types of stakeholder behaviors (cooperative potential, competitive threat, opposite position, and neutral attitude) are perceived by the practitioners as important to dealing with stakeholder claims. Depending on stakeholders’ salience levels and behavior types, strategies of defense, compromise, or concession/adaptation are chosen and applied by project managers in practice. The findings can help project managers to proactively understand stakeholder performance, place emphasis on particular attributes and behaviors, and formulate appropriate schemes under different circumstances.     

In Search of Collaborative Public Management

Abstract

This paper describes how managers from disparate organizations collaborated to implement a crime programme through the mechanism of a multi-layered crime partnership. The case is analysed using three theoretical models: collaborative public management (CPM), new public management (NPM) and public administration (PA). A case study research strategy was adopted with eighteen managers from the partnership being interviewed and ten partnership meetings being observed, to enhance understanding of management practice under partnership. This paper provides evidence for CPM, a model of management suited to deliver on the shared outcomes required by government from the varied organizations involved in crime programmes.     

Searching for managerial discretion: how public managers engage managerialism as a rationalization for increased latitude of action

ABSTRACT

This article focuses on the managerial discretion that public managers experience. More specifically, it discusses how managerialism is an embedded ideological stance that influences understandings of public sector governance. I argue that managers’ perceptions of discretion are affected by these understandings. The analysis draws on empirical data from a longitudinal study, demonstrating how public managers engage discourses emanating from managerialism in order to rationalize increased discretion. The findings suggest that customer perspectives functions as a rationalizing factor for engaging public managers’ transition towards increased discretion. As such, this article contributes to knowledge about managerial discretion as well as managerialism.     

Moving Beyond The Clash of Interests: On stewardship theory and the relationships between central government departments and public agencies

Abstract

This paper analyses the relationships between central government departments and agencies through the lens of stewardship theory. Stewardship theory has been developed as an alternative to agency theory and focuses on shared goals and norms. The paper first shows how current regulations are strongly imbedded in agency theory and then proceed to analyse, on the basis of a survey and focus groups, how the problems experienced by public managers generally point to the relevance of stewardship. On this basis and with input from sixty public managers, a stewardship model for the relationships between agencies and central governments is developed.     

Social welfare,corruption and credibility

Abstract

Economic development requires that investments by entrepreneurs are not subject to expropriation by government. Unfortunately, public agencies often serve as the instruments by which political elites engage in corruption and extracting rents from the economy. The question is how to design institutions that credibly commit to a stable system of guarantees of property rights and contract enforcement.

Principal agent theory and the new public management favor greater accountability of public managers to elected officials or eliminating public agencies through privatization. We argue for institutional designs that provide a degree of public agency autonomy. We show that public agency autonomy is a by-product of the competition between elites in democracies with multiple veto players. We show that transparency, professionalism, and legality help ensure that public managers do not engage in rent-extraction. The institutional design problem is how to induce public managers to serve the public interest without being fully responsive to elected political officials.     

Earnings Management Around Zero: A motivation to local politician signalling competence

Abstract

Literature earnings management aims to determine what causes/motivates managers to disclose earnings close to zero and to use this as an instrument to influence users' decisions. However, limited research has been carried out on this subject in the public sector. Therefore, the main purpose of this paper is to evaluate whether local politicians (in Portuguese municipalities), aiming to demonstrate their high level of competence and skills, engage in earnings management in such a way as to ensure that earnings are positive but close to zero. We examined whether political competition is a determining factor of earnings management close to zero and if managers use discretionary accruals in order to do this. Results indicate that, in order to report positive net earnings close to zero, discretionary accruals are used. This study identified the overriding tendency to avoid the reporting of losses in those municipalities where political competition is greatest.     

Strategic Decision Making for the Triple Bottom Line

Corporate social responsibility (CSR) has become a mandate for strategic managers and is often an important element of a differentiation strategy, but there is little research on how managers can make socially responsible decisions within the context of competitive strategy. In this study we explain how data envelopment analysis (DEA) results can be used to determine the trade‐offs inherent in managing the triple bottom line of profits, people and the planet. Once the trade‐offs are well understood, managers can implement sustainable competitive strategies that incorporate socially responsible decisions. Using public data from the electric power generation industry, we demonstrate how DEA can be utilized to determine the trade‐offs between efficiency, costs and pollution reduction, allowing managers to make and champion socially responsible decisions. We discuss the general applicability of our method for making strategic decisions incorporating the triple bottom line. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

Sustainable entrepreneurship,innovation, and business models: Integrative framework and propositions for future research

This article introduces the business models for sustainability innovation (BMfSI) framework to study how business models mediate between sustainability innovations and business cases for sustainability. The BMfSI framework integrates two major perspectives (implicitly) found in the sustainable business model literature. The first is the agency perspective. It takes into consideration that some form of agency is needed, that is, “someone” who takes decisions and acts. Sustainable entrepreneurs are discussed as those agents who align their new or existing business models with sustainability innovations in order to be successful in business and to create value with and for stakeholders. The second perspective is the systems perspective, which acknowledges that business models are always embedded within sociotechnical contexts through which, for example, public policies, private financing, or stakeholder interests influence whether and how business models can be developed. The agency and systems perspectives are integrated in the so‐called business model mediation space. This theoretical notion embraces the decisions and activities pursued by sustainable entrepreneurs as they align their business models with sustainability innovations on the one hand and the influence of environmental contingencies, barriers, and stakeholders from the sociotechnical context on the other hand. The paper concludes with propositions for future research derived from the BMfSI framework.     

AN EXAMINATION OF THE INFLUENCE OF MIDDLE-LEVEL MANAGERS IN FORMULATING AND IMPLEMENTING STRATEGIC DECISIONS

The upward influence of middle-level managers (MLMs) on strategic planning and decision-making is examined. It was found that: (1) upward influence activity was more prevalent in low risk/return types of strategic decisions than in high risk/return decisions; (2) upward influence activity was more prevalent during the implementation of strategic decisions than during the formulation of such decisions; (3) managers most often used rational arguments in their influence attempts; (4) managers were more likely to be successful than unsuccessful in influencing their superiors in strategic decisions; (5) managers most often attributed their success in influencing their superiors to internal causes and their failures to external causes; (6) managers from private sector organizations exerted influence in both high risk and low risk strategic decisions more frequently than did managers from public sector organizations; and (7) the number of years working with the superior was the best predictor of successful interactions and of risky decisions. Some insight into the development of widespread strategic thinking in an organization is provided.     

Strategic management tools and public sector management

Abstract

This article highlights the applicability and effectiveness of two well established strategic management tools, value chain and stakeholder analyses, in the context of seven public sector strategic consultancy projects. The article provides a strong justification for the use of both models, when used independently, but particularly in conjunction, as powerful strategic analytical frameworks that can significantly encourage and illuminate strategic discourses in public sector organizations.

The article establishes that strategic tools such as value chain analysis, when applied in the public sector context, require significant adaptation to maximize their contribution to understanding a given situation. This study proposes that the strategic analysis of relationships that build or contribute to concepts of organizational value are of limited importance if the complex web of interdependent relationships themselves are not clearly demonstrated. This work therefore makes a clear case for applying two strategic models, value chain analysis and stakeholder analysis, in an analogous way to demonstrate how strategic understanding in the public sector is enhanced as a result of such symbiosis.     

Electronic Participation Technologies and Perceived Outcomes for Local Government Managers

Abstract

US local governments are under increasing pressure to adopt electronic participation technologies to engage stakeholders in decision-making. The choice set of technologies and the ease with which they can be applied, has potentially increased the complexity of the context within which managers operate. Using data from a national survey of 850 government managers in 500 cities, we investigate whether different channels of e-participation technology and the intensity of e-participation technology use are associated with managers' perceptions of outcomes. We find that the relationships between complexity of e-participation technology and perceived outcomes depend upon the type of external stakeholder group considered.     

Leadership for Collaboration

Abstract

‘Leadership’ and ‘collaboration’ are integral to twenty-first century governance and management but, despite a growing literature, understanding about leadership for collaboration is hampered by a lack of specificity and nuance in theory and empirical research. This article responds to these limitations by working within an interpretive framework and employing Q-method to uncover different interpretations of leadership for collaboration operant among public managers in Wales. The article uses the concept of situated agency to explain why public managers offer diverse interpretations of leadership for collaboration despite working within the same governance framework, and to identify challenges to public managers in determining appropriate leadership for collaboration.     

A Critical Appraisal of the Current Use of Transaction Cost Explanations for Government Make-Or-Buy Choices: Towards a Contingent Theory and Forms of Tests

Abstract

This article aims at contributing to the extant literature on government make-or-buy choices building on transaction cost economics (TCE) by explicitly theorizing about transaction alignment and its relation to performance. It is argued that current theoretical and empirical models of government make-or-buy choices are not able to make predictions that corroborate theory. They are dependent upon the assumption of perfect competition that is ill-suited for the public sector setting. Instead, contingent models that take performance differences into account constitute a more valid model of TCE in this setting. In this article, theoretical models and empirical approaches for such a research agenda are developed.     

Do professional associations make a difference?: linking municipal managers’ association participation and attitudes toward citizen participation

ABSTRACT

There has been a lingering debate on the relationship between public managers’ professional socialization and their acceptance of citizen participation. In this paper, it is empirically confirmed that association participation strengthens municipal managers’ predispositions toward engaging citizens. It is found that municipal managers that are active in generalist-oriented professional associations will be more likely to realize successful practices for citizen engagement in peer municipalities, which boosts their perceived sense of citizen contribution, and reduces their perceptions on the costliness of engaging citizens. These relationships are found to be mediated by municipal managers’ technocratic orientation and engagement self-efficacy.     

Understanding Public and Nonprofit Managers' Motivation Through the Lens of Self-Determination Theory

Abstract

Contemporary public and nonprofit management research has disproportionally emphasized the importance of intrinsic motivation (especially service motivation) but has given comparatively little attention to non-intrinsic motivation. According to self-determination theory (SDT), non-intrinsic motivation moves from identified motivation, introjected motivation, external motivation, to amotivation, depending on their disparate levels of self-determination. The authors examine empirically whether public managers differ from nonprofit managers on these intrinsic and non-intrinsic motivational styles. The findings show that public managers exhibit stronger service motivation, identified motivation, external motivation, and amotivation when compared to their nonprofit peers. In addition, public managers' strong external motivation and amotivation compromise their overall level of self-determination, suggesting that they may be less motivated by their work requirements than are nonprofit counterparts.     

Managing Change,or Changing Managers? The role of middle managers in UK public service reform

Abstract

Drawing upon interview data from three case study organizations, we examine the role of middle managers in UK public service reform. Using theory fragments from organizational ecology and role theory, we develop three role archetypes that middle managers might be enacting. We find that rather than wholesale enactment of a ‘change agent’ role, middle managers are balancing three predominant, but often conflicting, change-related roles: as ‘government agent’, ‘diplomat administrator’ and, less convincingly, ‘entrepreneurial leader’. Central government targets are becoming the main preoccupation for middle managers across many public services and they represent a dominant constraint on allowing ‘managers to manage’.     

The Impact of Managerial Quality on Employee Turnover

Abstract

This paper empirically examines, at the organizational level, the impact of quality public managers on turnover. Quality managers can influence turnover through human capital management, budgeting, setting tasks and providing goals. However, their ability to affect turnover depends on managerial level, which in this study are the upper and middle levels. Managerial quality is operationalized with superintendent and principal salaries and turnover is operationalized with the retention rate of teachers in school districts. The findings reveal that quality middle managers exert a significant and negative effect on organizational turnover and quality upper level managers do not directly influence turnover.     

Interactive identity work of professionals in management: a hospital case study

ABSTRACT

Hybrid professional managers appear less effective in introducing management into public professional settings than policymakers hope. To date, research has offered little understanding of professionals’ identity transition challenge and the role of social interactions underpinning this process. We studied the identity work of hybrid doctors inside a large public health-care organization, finding that it takes place through processes of familiarizing with management, rationalizing being a hybrid, and legitimizing the new role-identity. We contribute to the literature by showing that identity work is distributed and enabled by social interactions beyond the professional group. Implications for policymakers and executives are discussed.