Grants structure when the type of public project is endogenous

This paper gives an insight into changes in intergovernmental grants structure, focusing on the type of public project. Presenting a simple model which incorporates the endogenous determination of project type and grants structure, the results show that as the relative cost encountered by central government in collecting public funds increases, the central government tends to choose types of projects which local governments prefer and adopt block grant systems. The resulting equilibrium is compared with an optimal solution based on an utilitarian welfare function. Received: December 22, 2000 / Accepted: September 20, 2001     

Assessing the performance of matching algorithms when selection into treatment is strong

This paper investigates the method of matching regarding two crucial implementation choices: the distance measure and the type of algorithm. We implement optimal full matching—a fully efficient algorithm—and present a framework for statistical inference. The implementation uses data from the NLSY79 to study the effect of college education on earnings. We find that decisions regarding the matching algorithm depend on the structure of the data: In the case of strong selection into treatment and treatment effect heterogeneity a full matching seems preferable. If heterogeneity is weak, pair matching suffices. Copyright © 2007 John Wiley & Sons, Ltd.     

The adoption of innovative work practices in service establishments

Using data from the 1994 US National Establishment Survey, the author investigates differences between manufacturing and service establishments in the use of five innovative work practices: total quality management, self-managed teams, job rotation, job sharing and flextime. Service establishments are more likely to use job sharing and flextime. Manufacturing establishments are more likely to use total quality management and self-managed teams. These results hold when controlling for establishments’ business strategies, worker demographics, institutional connections and use of technology. Determinants of adoption of total quality management, self-managed teams and flextime also varied by sector.     

Assessing the adoption of HRM by small and medium-sized manufacturing organizations

This paper reports on exploratory research which uses a comparative case-study approach with sixteen organizations to study the extent to which HRM has been adopted in traditional brownfield-site, small and medium-sized UK manufacturing organizations. The paper begins with a comparison of HRM practices across the sixteen organizations. It is argued that the most common HRM practices in these firms appeared to relate more to a traditional small firm approach than to any proactive attempt to adopt HRM. The analysis shows that very few of the organizations adopted a strategic approach towards HRM with an integrated set of policies related to corporate strategy being put forward. Instead, the dominant approach seemed to be one of reactive, opportunistic pragmatism, showing little development from the standard modern approach identified as most common in the early 1980s. On the other hand, three organizations are shown to approximate quite closely to the model of strategic HRM and contextual analysis is undertaken to attempt to differentiate these from the other organizations. A comparison is also made between the findings of this research and a telephone survey that was conducted to assess the use of HRM in Leicestershire. The results of this show that a certain degree of caution should be exercised when accepting reports of organizational practices which do not involve researchers actually entering the organizations. Finally, the paper concludes that in order to get a better understanding of the situation facing these and other organizations we need to broaden our scope and consider the impact of changing economic, social and political conditions on management worker relations.     

Assessing output and productivity growth in the banking industry

This paper assesses the evolution of output and productivity in the Greek banking industry for the period 1990–2006. Three main categories of bank output were estimated based on modern theoretical approaches, while for the estimation of output and productivity (partial and total factor) we relied on the index number method (Tornqvist index). We also considered the effect of labor quality on banks’ productivity and the contribution of total factor productivity to bank output growth. Bank output and labor productivity outpaced considerably the respective GDP growth and labor productivity of the Greek economy during the period under examination. Capital and total factor productivity have also improved remarkably mainly since 1999, due to the structural changes that took place within the industry, capital (mainly IT) investments and improvement in the quality of human capital.     

Assessing the robustness of estimators when fitting Poisson inverse Gaussian models

The generalized linear mixed model (GLMM) extends classical regression analysis to non-normal, correlated response data. Because inference for GLMMs can be computationally difficult, simplifying distributional assumptions are often made. We focus on the robustness of estimators when a main component of the model, the random effects distribution, is misspecified. Results for the maximum likelihood estimators of the Poisson inverse Gaussian model are presented.     

Drivers,adoption, and evaluation of sustainability practices in Italian wine SMEs

Based on a survey with 64 small and medium‐sized enterprises (SMEs) in two Italian wine regions, this study aims to (a) identify key drivers and barriers of the adoption of sustainability and (b) compare the adoption and evaluation (use, financial/labor investments, and satisfaction) of sustainability practices in four management domains (marketing, chain, operational, and innovation). Results show that internal drivers were considered to be more important than external drivers. Economic sustainability‐oriented drivers scored significantly lower than drivers related to other dimensions, such as environmental sustainability and heritage. Key barriers refer to labor and investments costs, as well as concerns about greenwashing. Although there are substantial differences in adoption and evaluation of sustainability practices within and between management domains, this study confirms their widespread adoption in wineries. Among users, satisfaction levels outweigh the perceived investments. Except for innovation management practices, financial investments are considered to be lower than labor investments. Positive correlations between use‐satisfaction (within each management domain) and between investments or satisfaction levels (between management domains) further lend support for producers' adoption of multiple practices. At sustainability dimension level, heritage is negatively correlated with the evaluation indicators, indicating that it may act as a potential barrier to some sustainability practices. Segmentation analysis identified a low (30%) and high sustainability clusters (70%), which differ significantly in terms of sustainability perceptions and drivers, adoption, and evaluation of practices, as well as company characteristics. Future research needs to validate the findings on SMEs, compare our measures with more objective evaluation indicators, future adoption rates, and multidimensional sustainability practices.     

Voluntary adoption of non-local GAAP in the European Union: A study of determinants and consequences

Abstract

This study examines the determinants and consequences of voluntary adoption of non-local accounting principles (non-local GAAP) by firms listed and domiciled in the European Union (EU). We restrict ourselves to the two predominant internationally accepted sets of accounting standards: International Accounting Standards (IAS) and United States generally accepted accounting principles (US GAAP). We have used various sources to identify EU firms that use non-local GAAP. We examine the 1999 annual reports of all these firms, because accounting standard choices in more recent years may be affected by the announcement of the proposal by the European Commission in February 2001 to mandate IAS usage from 2005 on. The maintained hypothesis is that firms that voluntarily adopt IAS or US GAAP expect to experience net benefits from adoption. The finding that 133 non-financial firms in the EU voluntarily used non-local GAAP in 1999 suggests that the majority of listed EU firms does not expect to benefit from non-local GAAP adoption. By studying the characteristics of non-local GAAP adopters this study provides insight into the determinants of non-local GAAP adoption. We find that firms voluntarily using non-local GAAP are more likely to be listed on a US exchange, the EASDAQ exchange in Brussels, and have more geographically dispersed operations. Furthermore, they are more likely to be domiciled in a country with lower quality financial reporting and where IAS is explicitly allowed as an alternative to local GAAP. We also study whether non-local GAAP adopters have lower levels of information asymmetry, a much cited benefit of using more transparent financial reporting, than non-adopters. We examine three proxies for information asymmetry: analyst following, cost of equity capital, and uncertainty among analysts and investors (forecast dispersion and stock return volatility). We document a positive effect of non-local GAAP adoption on analyst following, but fail to find evidence of a lower cost of capital for non-local GAAP adopters. Contrary to expectations, uncertainty among analysts and investors appears to be higher for firms using IAS or US GAAP than for firms using local GAAP. However, by comparing ‘early’ and ‘late’ adopters, we find some evidence that suggests that benefits take some time to fully materialise.     

The impact of idiosyncratic uncertainty when investment opportunities are endogenous

This paper develops a general equilibrium model to study the impact of aggregate fluctuations in idiosyncratic volatility that incorporates the endogenous determination of investment opportunities. By making investment options more valuable, an increase in volatility encourages the creation of new investment options. I find the response of the economy to a volatility shock depends on how investment opportunities are obtained. If potential entrants are allowed to invest in new idiosyncratic technologies, thereby acquiring options for further investment, the volatility shock increases overall investment and results in an economic boom. On the other hand, if such an investment in option creation is precluded and investment opportunities are exogenously given, the volatility shock decreases aggregate investment.     

Organisational consequences of asymmetries in task dependence: the moderating role of HR practices

This study integrates recent advances in interdependence theory with the literature on commitment‐based HR practices. New research on interdependence theory suggests that differences, or asymmetries, in task dependence among organisational members can cause interests to diverge. Prior research has shown that this can negatively affect interpersonal relations, individual outcomes and team processes. However, these insights gained on the dyadic, individual and team levels of analysis have not yet been explored at the organisational level and, until now, no research had yet connected these advances in interdependence theory to the field of HRM research. Hence, the current study investigates (a) whether asymmetries in task dependence do (or do not) matter at the organisational level and affect organisational effectiveness, (b) why this relationship may work by assessing a key mediator, namely, trust climate and (c) if and how these relationships can be altered by commitment‐based HR practices. Our moderated‐mediation model was tested and fully supported by a multi‐source data set of 8,390 employees from 67 organisations.     

Correlates and consequences of high involvement work practices: the role of competitive strategy

Illustrative of world-wide trends, New Zealand has undergone drastic product and labour market reforms in an attempt to stimulate economic growth and national competitiveness. Towards this goal, firms have been urged to emphasize differentiation strategies in their approach to their markets and also to become more progressive in their management of human resources. This study finds that whereas more intensive use of high involvement work practices promotes firm effectiveness, this effect depends on the competitive strategy being pursued. The use of high involvement work practices is positively associated with performance in firms competing on the basis of differentiation and shows no relationship in firms pursuing a strategy of cost leadership.     

Performance-enhancing compensation practices and employee productivity: The role of workplace bullying

Performance-enhancing compensation practices are designed to increase employee productivity through greater accountability, while highlighting performance differentials across employees. While productivity increases may occur, these practices can also stimulate an unintended consequence: workplace bullying. In this paper, we present a typology and conceptual model that explore the boundary conditions under which performance-enhancing compensation practices may result in bullying behavior with differential effects on target and perpetrator productivity. We propose the mediating roles of individual competition and stress between zero-sum pay systems and workplace bullying. In our model, we propose that perpetrators will realize increased productivity. This increased productivity will be generated through instilling fear in the targeted employee to compete for output, which will increase the perpetrator's relative ranking. As a result, targets will tend to suffer decreased productivity. We conclude with a discussion of the theoretical contributions, practical implications, and offer directions for future research.     

The adoption of international best practices in a Western culture: East meets West

Contemporary organizations facing changing economic and strategic realities have considered many models of organizational performance, in particular those based on ‘actices’odels of best practice have emanated from the USA, some European countries and Japan; however, the question remains –ternational best practices be transferred to Australia or elsewhere? Since companies in Japan, in particular, have been seen as harbingers of these best practices, we compare the level of adoption in Japanese and non-Japanese companies in three Australian industries. Differences between Japanese and non-Japanese companies were more apparent in the automotive industry with only a few differences found for the information and tourism industries. The main differences between the two ownership categories were in areas of unionization and management–elations, that is, areas that may be influenced more by institutional arrangements than by cultural differences. Perhaps the most interesting finding from the comparative research was that there were relatively few differences between the Japanese and non-Japanese companies. These characteristics include: organizational structure, labour turnover, teams as part of the organizational structure, levels of training, use of ringi-style decision making, security of employment, employee welfare schemes, the use of and success with performance appraisal and performance-related pay, and a wide range of quality systems. The key pillars of Japanese management are not being transferred, and we cannot expect to see identical arrangements regarding other management practices. But the differences between Japan and western countries such as Australia are very gradually declining.     

Assessing the productivity of the Italian hospitality sector: a post-WDEA pooled-truncated and spatial analysis

This paper analyses the productivity of the hospitality sector (hotel and restaurants) in Italy at a regional level by using a mix of non-parametric and parametric approaches. A novel pooled-truncated and spatial analysis is employed, based upon a window data envelopment analysis (WDEA), where pure technical efficiency is computed. The WDEA results show that Lombardy is the best relative performer. However, overall Italian regions reveal important sources of inefficiency mostly related to their inputs. As a post-WDEA, the pooled-truncated estimation indicates that the rate of utilisation and regional intrinsic features positively affect hospitality efficiency. Nevertheless, the spatial analysis does not support evidence of spill-over effects amongst Italian regions.     

Antecedents and consequences of dimensions of human resource management practices in Vietnam

The purpose of this study is to extend the empirical research concerning the impact of human resource management (HRM) practices on organizational effectiveness into the context of developing and transitional economy countries. From a survey of 137 cross-sector companies, it was discovered that there are five dimensions of HRM practices currently in use in Vietnam. Variation in the application of these dimensions can be partly traced to several organizational characteristics, but most salient is the perception of management on the value of human resources. In some dimensions, this variation constitutes a source of the difference in the perceptual company performance. These findings break new ground to propose a process for implementing HRM practices in Vietnam.     

Understanding the adoption of socially responsible supplier development practices using institutional theory: Dairy supply chains in India

Supplier development (SD) initiatives play an important role in building buyer-supplier capacities to deal with social and economic performance. The aim of this paper is to explain the motivations behind the adoption of similar SD strategies to address sustainability (particularly social issues) occurring in local supply chains of a developing country. We compare the economic and social variants of institutional theory to investigate whether efficiency or legitimacy seeking drives the adoption (and copying) of SD practices. Twelve case studies involving private and cooperative dairies were conducted in India via semi-structured interviews. Findings revealed that both private and cooperative dairies adopt similar SD practices to build supplier capabilities and improve social and economic performance of buyers and suppliers. Private dairies imitate SD practices of the cooperatives to survive the competition; i.e., economic performance is the main reason behind their isomorphism. Cooperatives, on the other hand, take up SD practices more for legitimacy and even philanthropic reasons; though also partly note the long-term economic benefits from developing the supplier community. These findings can be used both by practitioners and researchers to gain valuable insights into the reasons driving organisational isomorphism in social sustainability practices from a developing country perspective, something rarely done so far in the literature.     

Critical human and behavioral factors on the adoption of sustainable supply chain management practices in the context of automobile industry

Built upon the resource-based view, the study examines the critical human and behavioral factors (HBFs) on adopting sustainable supply chain practices in the automobile sector (AS). The Interpretive Structural Modeling (ISM) and Decision-Making Trial and Evaluation Laboratory (DEMATEL) method is applied to understand the causeeffect relationships between (HBFs), evidenced by a case study in the automobile industry of India. The causeeffect relationships are informed by an expert team consisting of 18 members working in academia, the automobile industry, and professional consulting companies. The experts provided their inputs based on their direct experience and expertise in this subject matter. The research findings highlight that sustainable supply chain cost (end to end) is a critical success factor. Mangers in the AS should prioritize and focus on sustainable supply chain costs (end to end) to pursue sustainable practices because such critical success factors can foster information sharing behavior. The firms could develop both hard and soft critical HBFs such as Information technology (IT) infrastructure and employee training to build up HBFs to integrate a supply chain. The study provides insight to academicians, policymakers, and practitioners about critical HBFs and develops sustainability goals and policies accordingly.