Restructuring and Failure in Buy-outs and Buy-ins

In this paper we examine the reasons why buy-outs fail or need to be restructured and identify the implications for managers and investing institutions. It is evident that considerable attention needs to be given to assessing issues concerning industrial sectors, management and financing. In respect of the market, consideration needs to be given both to the nature of the market in which a particular buy-out finds itself and the firm's position within that market. Management is likely to have a crucial role in ensuring that the firm restructures and adapts to changing market circumstances.     

Activists, Pragmatists, Technophiles and Tree-huggers? Gender Differences in Employees' Environmental Attitudes

Although there are suggestions that the environmental attitudes of men and of women differ, there have been few studies that study and evaluate these differences at the workplace. Given the claim of Ecofeminist writers about the environmental superiority of women's environmental attitudes, and the proclaimed need of business to change attitudes and behaviour with regard to the environment, this is a surprise. The paper is based on 1022 (37% from women) questionnaires which were collected in a U.K. pharmaceutical company, and it compares the empirical results with environmental attitude archetypes, such as those prescribed by O'Riordan. However, the attitude clusters that were found do not correspond greatly with such theoretical modes of environmental ethics. Instead, it appears that women were more likely to be actively involved in environmental behaviour, and showed greater scepticism towards the role of technology in the search for solutions to environmental problems. In addition, men sought to a much greater extent a consistency between an environmental rationality and their behaviour. Men's attitudes were also much more influenced by their position in the organisational hierarchy. There were few significant differences across age groups.     

Gender,Risk, and Venture Creation Intentions

This paper is concerned with whether women are less likely to express business start‐up intentions because of a less favorable attitude to risk. Previous research suggests that attitude to risk differs significantly between genders, but has not addressed the question of whether this contributes to lower levels of female interest in venture creation. This paper describes a conceptual basis for this question, and investigates it using a survey of business start‐up intention from across a sample of European universities. A large proportion of the difference in average levels of intention between genders appears to be associated with attitude to risk.     

Understanding the Complex Relationship Between Creativity and Ethical Ideologies

The relationship between individuals’ creativity and their ethical ideologies appears to be complex. Applying Forsyth’s (1980, 1992) personal moral philosophy model which consists of two independent ethical ideology dimensions, idealism and relativism, we hypothesized and found support for a positive relationship between creativity and relativism. It appears that creative people are less likely than non-creative people to follow universal rules in their moral decision making. However, contrary to our hypothesis and the general stereotype that creative people are less caring about others, we found a positive relationship between creativity and idealism. These findings indicate that highly creative people are likely to be what Forsyth called “situationists,” individuals with both an ethic of caring and a pragmatic moral decision-making style. The finding that creative individuals tend to be situationists, and particularly that they tend to be high in idealism, appears to refute the line of reasoning that argues for a “creative personality” characterized in part by social insensitivity. Understanding the relationship between creativity and ethical ideologies has important implications for researchers, managers and teachers.     

The Quality of Advertising Education Today

Abstract

Based upon their findings in a survey of advertising educators. practitioners, and students, the authors cite a lack of agreement on the proper content, the value, and the aims of advertising education. The article suggests that this failure to achieve consensus is actually a failure of communication, which is further manifested in the fact that educators have achieved neither the respect of nor the leadership in the field. The authors maintain that educators have the potential to command both but that they themselves must correct the situation through meaningful interaction win practitioners and thus resolve these misunderstandings and make their rightful contribution to advertising.

Note: The authors wish to thank Davenport Bruker, graduate student at the Universiy of Georgia, for his valued assistance in conducting the survey used in this study.     

The Chief Officer of Corporate Social Responsibility: A Study of Its Presence in Top Management Teams

I present a review of the top management teams (TMTs) of the largest public corporations in the U.S. and Scandinavia (one thousand in total) to identify corporations that have a TMT position with “corporate social responsibility” (CSR) or a “CSR synonym” like sustainability or citizenship explicitly included in the position title. Through this I present three key findings. First, I establish that a number of CSR TMT positions exist and I list all identified corporations and associated position titles. Second, I show that Scandinavian corporations are significantly more likely than U.S. corporations to have such CSR TMT positions. This finding serves as evidence that the U.S. may have been surpassed by a subset of Europe, i.e., Scandinavia, in at least one relevant measure of explicit CSR, whereby this study may serve witness to a noteworthy juncture post Matten and Moon’s (Academy of Management Review, 33(2):404–424, 2008) “Implicit & Explicit CSR” article. And third, I show that corporations with a CSR TMT position are three times more likely to be included in the Dow Jones Sustainability Index (DJSI) than corporations with none. A range of further research opportunities stemming from these findings include exploring whether explicit attention to CSR by the corporation is indicative of a longer term trend that has to do with attention to responsible business and whether a move away from the expression ‘CSR’ toward the expression ‘sustainability’ is underway and what this may entail.     

The impact of home business network attributes on Chinese outward foreign direct investment

Researchers who take a network perspective argue that insidership in foreign market networks is a necessary condition for internationalization. In this study, we argue that insidership in home market networks also matters. The effect of home network insidership on outward foreign direct investment (OFDI) depends on both individual and joint effects of structural and relational network attributes. Our study based on a survey of 194 Chinese firms shows that firms in a central network position are more likely to engage in OFDI than those in a brokerage position. Furthermore, we find the interaction between firms’ centrality and their connections to foreign-invested enterprises to be significantly and positively associated with OFDI, whereas a significantly negative effect is evidenced when a firm is connected more to domestic firms.     

Strategic Choice and Organisational Context in HRM in the UK Hotel Sector

Human resource management in the UK hotel industry is typically held to be informal, instrumental and associated with poor employment relations. Some studies, however, have identified incidences of more formal, high-commitment HRM indicating greater diversity in employment practices. Using original research undertaken in south-west England, this article examines this diversity and the influence of organisational context in the formation of HRM strategy. By identifying patterns of employee relations practice it is possible to examine the influence of market factors and establishment size and the extent to which there is scope for strategic choice in HRM. The research indicates that whilst larger hotels operating in stable product markets might be more likely to display formal or strategic approaches to employee relations compared to the industry as a whole, this sub-sector still appears significantly divided in the extent to which managers feel able, willing or compelled to invest in associated practices.     

The “New Economic Reality”: How New and How Real?

Is there a “new economic reality” as the United States gradually emerges from the Great Recession? It appears that some major new forces are indeed likely to persist and must be taken into account in public policy and business planning. Others may or may not be transitory. Still other major factors, both good and bad, are not new but are likely to persist for the foreseeable future. This NABE presidential address describes the factors that are likely to have the most influence on the U.S. economic future and the implications that they have for economists in contributing to productive analysis and debate.     

Editorial

The concept of an excellent company is complex and multidimensional. Most studies of “excellence” have focused on one, or sometimes two, dimensions with profitability and growth being the most common. Companies that have performed exceptionally well on such criteria have, however, proved far from robust. It is shown how the objectives of the firm partly conflict with one another and these conflicts are exacerbated when the firm seeks exceptional performance along one specific measure. Performance in the long run depends upon satisfying several stakeholder groups. A concept of a “tolerance zone” of performance is defined which is bounded by zones of disequilibrium. Within this tolerance zone the firm is likely to be in a position to satisfy its key stakeholder groups. Paradoxically, the financial performance of companies operating successfully within this tolerance zone will often be regarded as mediocre by students of “excellence” but in the long run such companies are more likely to prosper.     

Family Ownership and Corporate Misconduct in U.S. Small Firms

This study adds to the theory of family business management by exploring the effects of family ownership on the corporate misconduct of small firms in the United States. The empirical findings indicate that small family-owned firms are less likely to commit misconduct than small non-family-owned firms. We interpret this finding as family firms aiming to achieve the trans-generational succession of moral capital. Further investigation shows a nonlinear family-ownership–misconduct relationship. A negative relationship between them only appears in mature firms. We further show that for relatively mature firms, only family firms with older owners are less likely to commit corporate misconduct.     

Strategic experimentation: Understanding change and performance in new ventures

This research was motivated by an interest in understanding more about the extent to which entrepreneurs initiate changes along various dimensions of strategy, the nature of those changes and their implications for firm performance. Our interest in this topic began with the observation that, within the large body of strategic-change literature, the research effort has focused almost exclusively on large and established firms. Moreover, a fundamental assumption underlying much of this work is that strategic change involves movement from one dominant strategic approach to another. This premise does little to motivate or contribute to the understanding of change and strategy in new ventures, where it is less likely that a dominant approach exists. Thus, we drew upon the literature in managerial cognition to develop the idea of strategic experimentation as the conceptual foundation for studying change and strategy in new ventures. Our basic premise is that in new ventures, changes along dimensions of strategy are reflective of a process of trial and error learning, whereby the entrepreneur seeks to develop an understanding of the competitive situation and determine how to compete within that context. Further, we suggest that some aspects of the firm's strategy are more likely to be the focus of experimentation than others.Building on these premises we developed a series of research hypotheses which propose that the greater the level of perceived environmental hostility, the higher the level of strategic experimentation that will be undertaken. We also propose that experimentation will always be greater along some dimensions of strategy than others, and that the degree of environmental hostility will influence the extent to which there are performance benefits associated with strategic experimentation. Our hypotheses are tested using data from a three-year study of over 400 young businesses. Overall, we find support for our assertions.For entrepreneurs and their advisors, this study has several important implications. First, it suggests that strategic experimentation is a normal part of the process by which entrepreneurs seek to position their businesses. Although the present study does not empirically address the linkage between formal planning and experimentation, the learning and cognition literature upon which the construct of strategic experimentation is based suggests that, no matter how much attention to detail is involved in the preparation of the business plan, the actual formation and development of the business will involve considerable adjustment to and/or deviation from that plan. This is because the process of new business development involves iterative changes in the way the entrepreneur positions his/her firm as he/she develops an understanding about what does and does not work. The results of this study further suggest that some dimensions of the firm's strategy are more likely to change than others. Specifically, it appears that peripheral changes (competitive emphasis and time allocation) are more likely to be the focus of such learning and adaptation efforts than core features (product scope and partnership status). This, in part, is because the former dimensions are easier to change than the latter. Moreover, our results show that ventures in more hostile environments clearly face difficult dilemmas. Although poor performance may stimulate experimentation along various dimensions of strategy, the complexity of learning within a hostile environment suggests that entrepreneurs will have a particularly difficult time determining the type of changes that will make a difference.     

Solicitation and the Legal Profession: A New Issue for Consumer Affairs Professionals

While issues relating to the advertising of legal services have received much attention in the scholarly literature, this has not been the case for solicitation by lawyers, even though it appears that lawyers are more interested in being able to solicit than to advertise. In this article the legal issues surrounding solicitation are identified and tied to a basic communications model; then research propositions are presented along with the results of a survey of attitudes held toward solicitation by 125 lawyers practicing in two Rocky Mountain states. The survey results suggest that solicitation is not going to be easily accepted and that many lawyers may have trouble evaluating differences among solicitation, direct mail and advertising. The survey results also suggest that attitudes toward solicitation may be changing in that younger, less experienced respondents expressed more liberal attitudes toward solicitation than their older and more experienced colleagues. Taken together the findings of this article strongly suggest that solicitation is likely to offer a complex and challenging development for consumer affairs professionals in the years ahead.     

Today’s practice of brand placement and the industry behind it

This article presents a content analysis of brand placement on Dutch television, followed by 24 interviews with the parties involved. By combining a content analysis and a practitioners’ perspective, this article offers unique insights into the increasingly popular phenomenon of integrating advertising into television content. Analysis of one week’s television programming showed that programmes with brand placement are growing into a significant part of Dutch television. A fifth of these sponsored programmes can be classified as brand-integrated programmes in which brands are an intrinsic part of the programme. The practitioner interviews showed that these brand-integrated programmes were considered as the future of advertising. Moreover, the interviews gave insights into the mutual relationships between the different parties, showing that practitioners use the law restrictions to estimate the acceptance levels of the audience with respect to television sponsoring.     

Interdealer trading in futures markets

Trading amongst dealers on the floor of the futures exchange is examined. Since there is only one trading venue, the common floor area, trading between dealers is carried on in the presence of trades involving customer orders as well, offering a unique setting for testing the effect of inventory on dealer pricing. The findings are that these futures floor traders implicitly engage in interdealer trading as an inventory management tool. Interdealer trades are more likely to be position reducing than other trades, at higher costs than offsetting with customers. In addition, the concept of a dealer hierarchy is developed, where some floor traders, who generally are more successful, profit from their trades with other dealers. Furthermore, these more successful traders are more likely to use interdealer trading in position reducing trades, which is consistent with the existence of a dealer hierarchy. © 2004 Wiley Periodicals, Inc. Jrl Fut Mark 24:923–944, 2004     

Is it the Kids or the Schedule?: The Incremental Effect of Families and Flexible Scheduling on Perceived Career Success

Flexible work arrangements (FWAs) are widely offered in public accounting as a tool to retain valued professional staff. Previous research has shown that participants in FWAs are perceived to be less likely to succeed in their careers in public accounting than individuals in public accounting who do not participate in FWAs (Cohen and Single, 2001). Research has also documented an increasing backlash against family–friendly policies in the workplace as placing unfair burdens on individuals without children. Building directly on a previous study in this journal (Cohen and Single, 2001), this study addresses the issue of whether the documented perceptions toward FWA participants are the result of electing to take part in the FWA or the result of bias against employees with children. The research questions are addressed in a 3 × 2 experimental setting in which we manipulate FWA participation, along with family status and gender of a hypothetical manager in a public accounting firm. Our findings indicate that FWA participants are viewed as less likely to advance and as less committed than individuals without children or individuals who had children but who were not taking part in a FWA. Male FWA participants are viewed as less likely to succeed than female FWA participants. This effect appears to arise from a perception that FWA participants are willing to make sacrifices in their careers to accommodate family needs and thus may not be as committed to making the sacrifices perceived as necessary to meet the rigorous demands of the public accounting environment. This raises the ethical question of what could be done to change the culture in public accounting to foster a substantive support system for individuals who want to balance a family and a career.     

Demographic Effects of Work Values and Their Management Implications

A survey of 316 participants from Chinese enterprises indicated that the level of their work values was more likely in line with increasing age and education, and associated with employment position and gender. The older the employees, the higher the work values they perceive. The higher the education one receives, the higher the work values he or she counts. Managers rate higher work values than the employees do, and male employees show higher work value perceptions than do those of females. The results of the study suggest that the employees’ age, education, position and gender are important antecedents of work values, and these demographic effects can be a good revelation to enterprise management in both theory and practice.     

Job Creation by the Self-employed: The Roles of Entrepreneurial and Financial Capital

The paper reports micro-econometric evidence on the factors that influence the ability of the small businesses to create employment. It uses data on self-employment from a British panel survey. In particular it investigates the contributions of financial and entrepreneurial capital to job creation. Housing wealth appears to be significantly associated with small business job creation. It appears to act as an important source of financial collateral. The parental background of the small business owner is also significantly associated with job creation. Successful entrepreneurs are more likely to have had self-employed parents, and in particular parents who employed others. Educational attainment, in particular at degree level, is also important. The preferred model incorporates individual random effects and the significance of these suggests the importance of unobserved latent entrepreneurial ability. The British Household Panel Survey data used in this paper were made available through the ESRC Data Archive. The data were originally collected by the ESRC Institute for Social and Economic Research at the University of Essex. Neither the original collector of the data nor the Archive bears any responsibility for the analyses or interpretations presented here. I am grateful to Reza Arabsheibani for helpful comments at a preliminary stage, and to seminar participants at the Welsh Assembly Government, Cardiff.     

Mediating Hierarchical Labor Conflicts: Procedural Justice Makes a Difference—for Subordinates

Investigating mediations of hierarchical labor conflicts, this study focuses on the influence of hierarchical position on perceptions of procedural justice, mediation effectiveness and its moderating effect on this relationship. Since the influence of hierarchical position is omnipresent in organizational life, it is most likely that also parties’ perceptions and appreciation of the mediation will be affected. To test our hypotheses, we use data from real mediation cases dealing with hierarchical labor conflicts in the Netherlands. In line with our hypotheses, results indicate that supervisors—compared with subordinates—perceive more procedural justice and perceive the mediation as more effective. The most striking result however, is that especially subordinates’ perceptions of mediation effectiveness are determined by perceptions of procedural justice: especially when confronted with low levels of procedural justice, their perceptions of mediation effectiveness are negatively affected. This is not true for supervisors. Implications for mediation theory and practice are discussed.