THE POLITICAL EMBEDDEDNESS OF PRIVATE ECONOMIC TRANSACTIONS*

Governments are able to manipulate economic transactions in order to achieve foreign policy goals. This article addresses the question: can managers of multinational enterprises (MNEs) structure economic transactions in ways that will limit the costs resulting from government intervention? Using a transaction cost framework, the efficiency of alternative structures (exporting, joint ventures, licensing, or wholly owned subsidiaries) for protecting a firm's interests are assessed. We argue that the traditional focus on the dyadic relationship between supplier and buyer misses sources of transaction costs; by conceptualizing economic transactions as embedded in a political context, additional sources of transaction costs are revealed. We examine three cases of home government intervention in US MNE transactions with the Soviet Union. We find that the full range of structural alternatives is affected by government sanctions, although sanctions are imposed on exporting relationships first and removed last. We find that MNEs are, therefore, beginning to insulate international transactions by making their overseas subsidiaries more independent of US technology and supplies with the hope that the US government will be less likely to impose its will extraterritorially by intervening in foreign subsidiaries’private economic transactions.     

Institutional Sources of Distrust in Government Contracting

Abstract

This interview-based study explores trust in public–private co-operation by addressing the research questions: What are the main sources of distrust in public–private contracting? And why? We compare two Spanish social services subfields: one with high levels of cross-sector distrust and another one with low distrust between public and private sectors. We conclude that the sources of the identified cross-sector distrust are institutional: insufficient regulation and legislation, lack of business certification, and low local government administrative capacity. The article is a pioneering exploration of the under-researched theme of institutional distrust and its effect on public–private co-operation management.     

The R&D knowledge base in city-agglomerations and knowledge searching in product innovative SMEs

ABSTRACT

This paper looks at the relation between the R&D knowledge base of city-agglomerations and knowledge sourcing in product innovative small and medium-sized enterprises (SMEs). The small open Belgian economy is used as a test case. The characteristics of the city-agglomeration’s R&D knowledge are posited to be instrumental for SMEs’ reliance on particular sources of information for innovation. The R&D knowledge base is studied as a multidimensional concept consisting of R&D capacity, R&D specialization and R&D diversification. A representative sample of product innovative SMEs drawn from two waves of the Community Innovation Survey between 2008 and 2012 reveals that a strong R&D capacity at city-agglomeration level favours private external information sources for innovation, but has no influence on the likelihood to rely on public sources for innovation. Accordance between specialization of the private R&D knowledge base and the SME’s activities positively influences the use of clients as information sources for innovation, whereas under these circumstances supplier responsiveness turns out to be less frequently solicited for. A more diversified private R&D environment reduces the reliance on universities and public research organizations as information sources for innovation. A public R&D knowledge base specialized in natural sciences or engineering favours information sources from universities.     

Der Markteintritt multinationaler Unternehmungen in Märkte an der Basis der Einkommenspyramide

It has been widely accepted that poverty alleviation can’t be achieved without including the private sector. Especially, foreign multinational companies (MNCs) are highlighted in this context and are considered as a key to unlock the economic potential of low-income markets by linking them with more developed markets and facilitating the transfer of financial and technological resources. The international business literature, however, lacks of theoretical insights and systematic empirical evidence of MNCs entering low-income markets. Therefore, this study sheds light on the questions why MNCs enter low-income markets, how MNCs operate and how they gain knowledge in these markets. Using a multiple case study approach, we analyze MNCs with business activities in low-income markets by taking recourse to the internationalization process model of Johanson and Vahlne. The results reveal that companies develop knowledge by enlarging their mode of market commitment to a new level that exceeds investments of foreign manufacturing and production facilities.     

Economic Determinants of Multiple Accounting Method Choices in a Swiss Context

This article investigates economic determinants that may affect multiple accounting method choices made by Swiss listed companies. It intends to make a contribution to the accounting choice literature for at least four reasons. This is, to our knowledge, the first study to investigate the economic determinants of Swiss accounting method choices. Second, Swiss firms provide an interesting sample for testing accounting method choices because they can choose from a much wider range of accounting methods than their American counterparts. Third, this study examines the balance sheet effect as well as the income statement effect. Lastly, multiple accounting methods are used instead of individual choices. The empirical results exhibit that income‐accelerating accounting method choices is positively associated with the recourse to bank and private loans, the extent of assets specificity and the ownership dilution of the firm and negatively with labour force. Additionally, firms that select leverage‐ratios decreasing accounting methods, make higher recourse to debt and especially bank loans to finance their activities and exhibit a higher proportion of specific assets than other corporations. Overall, this result suggests that in a Swiss context, managers may select accounting methods to decrease both debt and political costs as well as to increase their own compensation to some extent.     

Supply Chain Management as Private Sector Regulation: What does it Mean for Business Strategy and Public Policy?

The growing practice of environmental supply chain management by firms constitutes private sector regulation that is analogous in many ways to public sector regulation. Similarly to their public counterparts, private sector regulators set standards, apply standards, monitor for compliance, apply sanctions and require corrective action. Private sector regulation differs, however, in the source of authority, external oversight, analytical requirements, public participation and available sanctions. This article argues that supply chain management by firms goes beyond business objectives by creating positive environmental externalities for society, and that more systematic study of the similarities and contrasts between the two forms of regulation may provide valuable lessons for both. Further, it may be possible to increase the effectiveness of private sector regulation to achieve both public societal and private business goals. From a business perspective, supply chain management enables firms to strategically redefine their relationships with government, reduce uncertainty and promote goal‐oriented collaboration. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

Trust and Sociability

A bstract Trust is distinguished from confidence in that the latter rests on knowledge or predictability of the alter's actions, while trust is necessary to maintain interaction in the absence of such knowledge. While confidence may have many different bases, trust is a preeminently modern phenomenon, resting, ultimately on the self-regulating, autonomous individual. It emerges concomitantly with the moral privileging of the private realm and of individual conscience. Contemporary developments associated with late or postmodern culture and society are however calling into question this model of the individual and with it the potential for trust to exist beyond the realm of regulations and constraints.
V ladimir I lych L enin is said to have remarked: " Vertraun ist gut, Kontrol noch besser "–trust is good, but control is much better. In this saying we find what I think is a distinction critical to any preliminary understanding of trust-that is, the distinction between trust and confidence ( control in Lenin's terms). Control or confidence is what you have when you know what to expect in a situation; trust is what you need to maintain interaction if you do not.¹     

Is the Public Oversight of Auditors Effective? The Impact of Sanctions on Loss of Clients,Salary and Audit Reporting

This study examines the consequences of sanctions against individual Swedish auditors issued by the Supervisory Board of Public Accountants (SBPA). The results provide no support for individual auditor client loss after receiving a sanction. However, we find that Big 4 auditors have a lower salary after the sanction than before. Finally, we do not find that auditors become more conservative in their reporting after being sanctioned. Collectively, our results support that public oversight sanctions have relatively limited consequences for auditors of private companies.     

Entrepreneurs learning together: The importance of building trust for learning and exploiting business opportunities

This longitudinal, qualitative case study examines trust-building processes and learning outcomes among entrepreneurs who participated in formal networks designed to develop competence and knowledge. This study is built on rich data collected through observation and video recordings made during network meetings and get-togethers. Additional data was gleaned from personal interviews with participating entrepreneurs. All data sources reveal on how trust develops and how entrepreneurs can use networks to learn and improve their capacity to exploit business opportunities. Studying how trust is built over time among entrepreneurs who demonstrate a low level of trust when they join the network, this study provides insights into micro-processes and important components of building trust. Findings suggest three processes that build commitment, companionship, and competence trust. Moreover, acknowledging the notion of social learning, the findings suggest that when entrepreneurs build trust with one another they can experience cognitive, emotional, and social changes by participating in a network. This may bring potential consequences for their exploiting opportunies. Implications for academics and managers are discussed.     

The impact of corporate social responsibility associations on trust in organic products marketed by mainstream retailers: a study of Italian consumers

This paper investigates the determinants of consumer attitudes toward organic products marketed by mainstream retailers under a private label. Since organic products are credence goods, consumers cannot directly verify whether these products comply with official standards. Organic labels are the primary source of consumer trust in organics, but these labels must be noticed and understood before consumers will actively seek them out. In that some consumers may not prioritize product labels when they shop, it is sometimes up to retailers to strengthen consumer trust. Within the antecedents of this trust, we isolated the contribution of the corporate social responsibility associations held by consumers about retailers. We surveyed Italian customers interested in organics and found that they are more likely to trust the private‐label organic products sold by a retailer when it is considered socially responsible. Our results also show that consumer trust translates into brand loyalty and a willingness to pay a premium price for organic products. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.     

Green innovation and knowledge: The role of size

This paper reports research on relationship between firm's knowledge sourcing strategy and green innovation. The data are taken from Spanish Technological Innovation Panel survey during 2007–2011. The study contributed to the literature by focusing on the moderating role of firm size on the relationship between knowledge sources and green innovations. Results from over 5,000 firms indicate a shift in the focus from internal knowledge to external knowledge when developing green innovations as firms grow in size. Despite benefits from broad knowledge search on green innovations, the relationship has an inverted U shape. The diminishing returns of knowledge breadth on green innovations are present for smaller firms and disappearing as firms get larger. Government policies promoting more coordination and knowledge complementarity between private and public sector will help to influence more knowledge transfer, ensuring a more sustainable and green economy.     

Contribution to social exchange in public organizations: examining how support,trust, satisfaction,commitment and work outcomes are related

The intent of the research was to examine the relationships between support, trust, satisfaction, commitment and work outcomes. The framework of social exchange theory was used as a guide. The research described in this study replicates in the public sector (N = 704) and previous findings obtained in a study conducted in the private sector. Consistent with the study in private sector, support is related to intention to leave and helping behavior to trust and satisfaction. Results are discussed.     

Can we trust measures of trust? a comparison of results from open and closed questions

Quality & Quantity - Many public opinion surveys compare trust in a number of different information and (mediated) knowledge sources, typically using closed questions with a set of answer...     

Enhancing hospital supply chain performance: A relational view and empirical test

Improving hospital supply chain performance has become increasingly important as healthcare organizations strive to improve operational efficiency and to reduce cost. In this study, we propose a research model based on a relational view, delineating the factors that influence hospital supply chain performance: trust, knowledge exchange, IT integration between the hospital and its suppliers, and hospital–supplier integration. Testing results of the research model based on data from a sample of 117 supply chain executives from U.S. hospitals show positive direct effects: (1) from trust and from IT integration to knowledge exchange respectively; (2) from knowledge exchange and from IT integration to hospital–supplier integration respectively; and (3) from hospital–supplier integration to hospital supply chain performance. The results also show the following indirect effects: (1) the influences of knowledge exchange and IT integration on hospital supply chain performance are partially and fully mediated by hospital–supplier integration, respectively and (2) the influences of trust and IT integration on hospital–supplier integration are fully and partially mediated by knowledge exchange, respectively. In addition, the results show the following moderating effects: (1) hospital system membership moderates the relationships between IT integration and knowledge exchange and between trust and knowledge exchange; (2) hospital environmental uncertainty moderates the relationship between trust and knowledge exchange; and (3) trust moderates the relationship between knowledge exchange and hospital–supplier integration. Implications of the study findings and directions for future research are discussed.     

组织内知识共享的信任模型研究

随着知识经济时代的到来,知识管理已经成为学术界和企业界竞相关注的热点。在知识管理的相关研究中,知识共享和组织内部信任问题是研究的重点课题,但对两者的综合研究还不多见。本文在前人对知识共享和信任机制的研究基础上,整合两个概念,引入组织制度、认知因素、情感因素、信任倾向等影响因素,分析出一个全新的组织内知识共享的综合信任模型,希望能够帮助组织更好地理解信任机制,促进组织内知识共享行为。     

Examining transformational leadership,job satisfaction,organizational commitment and organizational trust in Turkish hospitals: public servants versus private sector employees

Leadership, job satisfaction, organizational commitment and trust have become important processes for healthcare management in recent years. One of the contemporary human resource management functions in the organizations involves engaging in leadership development, improving organizational trust and organizational commitment and increasing job satisfaction. Considering the rapidly changing healthcare technology and higher levels of occupational complexity, healthcare organizations are increasingly in need of engaging in leadership development in any given area of expertise to address ever-changing nature of the industry and the delivery of quality of care while remaining cost-effective and competitive. This paper investigates the perceptions of both public servants and private sector employees (outsourcing) on transformational leadership, organizational commitment, organizational trust and job satisfaction in Turkish healthcare industry. Additionally, the paper analyzes the predictability of organizational commitment based on employee – both public servants (physicians, nurses, administrative personnel and other healthcare professionals) and private sector employees (outsourcing) (auxiliary services such as administrative assistants, security personnel, kitchen, laundry and housekeeping employees) – perceptions of transformational leadership, job satisfaction and organizational trust. Using a survey instrument with items adopted from the transformational leadership inventory (TLI) [Podsakoff, P. M., MacKenzie, S. B., Moorman, R. H., & Fetter, R. (1990). Transformational leader behaviors and their effects on followers' trust in leader, satisfaction, and organizational citizenship behaviors. Leadership Quarterly, 1, 107–142], the organizational commitment questionnaire [Meyer, J. P., & Allen, N. J. (1997). Commitment in the workplace: Theory, research, and application. Thousand Oaks, CA: Sage], the organizational trust inventory (OTI) [Cummings, L. L., & Bromiley, P. (1996). The occupational trust inventory (OTI): Development and validation. In R. Kramer & T. Tyler (Eds.), Trust in organizations: Frontiers of Theory and Research (pp. 302–330). Thousand Oaks, CA: Sage] and job satisfaction survey (JSS) [Spector, P. E. (1985). Measurement of human service staff satisfaction: Development of the job satisfaction survey. American Journal of Community Psychology, 13, 693–731], this quantitative study was conducted among 2108 healthcare employees (public servants and private employees) in two large government hospitals in Turkey. The study findings indicate a significant difference between the public servants and private sector employees in terms of their perceptions on two dimensions of transformational leadership (being an appropriate model, providing individualized support), overall transformational leadership and one dimension of job satisfaction (communication). The two dimensions of job satisfaction – operating procedures and communication – as well as organizational trust were the significant predictors of organizational commitment of public servants, whereas the two dimensions of leadership – individualized support and fostering the acceptance – as well as the two dimensions of job satisfaction – promotion and contingent rewards – and organizational trust were the significant regressors of organizational commitment of private sector employees. In addition, there is a significant difference between the predictors of the dimensions of organizational commitment (transformational leadership, job satisfaction and organizational trust) in terms of public servants versus private sector employees. Finally, organizational trust has a significant effect on overall organizational commitment as well as its three dimensions for public servants and private employees.     

创业者与投资者信任关系构建的影响因素研究

立足于初创企业的创业者与投资者之间信任关系的构建,采用问卷调查法,研究创业者的知识水平、工作经验以及创新能力在不同的信任阶段对创业者与投资者之间的信任关系产生的影响。结果表明,创业者的知识水平、工作经验以及创新能力对创业者与投资者的信任关系构建存在正向影响。但是,在初步信任阶段,投资者关注的是创业者的工作经验和创新能力;在深度信任阶段,投资者增加了对创业者知识水平的审查。     

Outsourcing a satisfied and committed workforce: a trucking industry case study

The steady growth of R&;D costs and the increasingly widespread dissemination of information and communication technology over the past decade have resulted in the affirmation of the paradigm of open innovation, which consists in the continual expansion of access to sources of technological innovation outside the firm itself. Industrial companies are, in fact, turning more frequently to collaboration with university departments and other public and private research centers, and there is a notable increase in agreements regarding technological cooperation and the exchange of know-how between companies. In addition, recourse to highly specialized small research companies is on the rise. This is common, for example in the pharmaceutical sector and, more generally, in the area of biotechnological research. Furthermore, we are witnessing the development of the new role of innovation broker. These factors alter the traditional profile of company R&;D structures, within which the role of researchers and technologists often changes. In particular, matrix and network organizational models are on the increase, and the professional figures of ‘integrators of knowledge and expertise’ (T-men) are assuming major importance at the expense of traditional scientists. As a consequence, the model for training and managing scientific personnel tends to change. This model, as it moves away from the prevailing pattern adopted by firms in Anglophone countries, is continually drawing closer, even from a cultural standpoint, to the R&;D management approach found in the Japanese and German companies. The aim of this article is to investigate how the adoption of open innovation has changed the organizational structures of R&;D and altered the methods used in managing its personnel. The results of the study are based on the analysis of four case studies of Italian multinational firms operating in the pharmaceutical, food, specialty chemical, and aerospace industries.     

Does knowledge explain trust behaviors and outcomes? The different influences of initial knowledge and experiential knowledge on personal trust interactions

This paper examines the influences of initial knowledge and experiential knowledge on trust behaviors and trust outcomes, respectively, at an interpersonal level. We use an experimental dynamic trust game, and our results show that (1) the initial knowledge that exists a priori between a trustor and a trustee helps to explain the trustor's trust behaviors toward the trustee, and (2) the experiential knowledge gained directly by a trustor during a specific trust interaction with a trustee influences the trust outcome, i.e. the difference between the original expectations of the trustor and the subsequent trust behaviors. Our results contribute to human resource literature by clarifying the specific influences of different types of knowledge on interpersonal trust relationships (e.g. between managers and employees) and by supplementing the traditional notion that trust within a firm develops slowly by showing that personal expectations have an immediate and important influence on trust output.     

What makes public-private partnerships work? Survey research into the outcomes and the quality of cooperation in PPPs

Public–private partnerships (PPPs) are often regarded as the solution for time and budget overruns in large infrastructural projects, but not all are successful. This raises the question of what really makes PPPs work. Focusing on the role of relational aspects, this article examines the degree to which trust and managerial activities correlate to the perceived performance and cooperation process in PPP projects. A multilevel analysis of survey data from 144 respondents involved in Dutch PPP projects shows that both trust and management correlate significantly to the perceived performance of these projects. Moreover, trust is associated with a good cooperation process.