National influences on European Works Councils in UK‐ and US‐based companies

The view that the role of European Works Councils (EWCs) is shaped predominantly by national industrial relations (IR) traditions in the company's country of origin derives largely from the experience of EWCs in companies based in continental Europe. This article argues that a more differentiated approach to the influence of national IR factors on EWCs needs to be developed to take account of the circumstances of companies headquartered in the UK and the US, whose national IR arrangements do not provide a strong institutional model for the EWC and, in the case of US‐based companies, where headquarters management has little or no direct involvement in the EWC. Findings from comparative case studies of EWCs in eight UK‐ and US‐based multinationals suggest that their character is shaped by the interplay between ‘country‐of‐origin’ factors,‘country‐of‐location’ factors and structural, company‐specific considerations.     

Investor legal protection,capitalized development costs,and audit fees: A cross‐country analysis

Our study explores the association between capitalized development costs and audit fees. International Accounting Standard No. 38 stipulates the discretion to capitalize the development costs of internally generated intangible assets. We find a positive association between capitalized development costs and audit fees, which reflects auditors’ concern that managers may use the discretion of development cost capitalization to manipulate earnings. Moreover, this positive association is mitigated by stronger investor legal protection because stronger investor legal protection alleviates the earnings management concern from capitalized development costs. These results suggest that country‐level legal regimes affect auditors’ perception on client firms’ accounting choices. Our study contributes to the literature exploring how legal regimes affect auditor behaviors.     

Understanding the postgraduate education market for UK‐based students: a review and empirical study

This paper examines why postgraduate students in the UK decide to take up a further degree, the factors influencing their choice of programme and institution and the sources of information consulted. The study is based on a literature review, other sources of information and primary research with students at one institution. Based on responses from 102 current students the analysis reveals that improvement of career prospects was the prime motivator for studying a postgraduate qualification, allied to a desire to gain or update skills to become more employable. Students also chose to study for their own personal satisfaction. For the university in question, accreditation of some programmes was a deciding factor influencing their choice of institution. The reputation of the university and its location were also important. Various sources of information were referred to but the use of faculty and tutors as ‘salespeople’ had significant impact. Managerial implications for universities and directions for further research complete the paper. Copyright © 2004 Henry Stewart Publications     

Sustainability in multi-tier supply chains: Understanding the double agency role of the first-tier supplier

In light of the growing complexity of globally dispersed, multi-tier supply chains, the involvement of first-tier suppliers has become instrumental in the quest for achieving sustainability compliance along the supply chain. We describe this new responsibility as the double agency role. We employ agency and institutional theory arguments to explore the conditions under which first-tier suppliers will act as agents who fulfill the lead firm's sustainability requirements (i.e., the primary agency role) and implement these requirements in their suppliers' operations (i.e., the secondary agency role). The findings from three in-depth case studies embedded in different institutional contexts highlight the importance for lead firms to incentivize each agency role separately and to reduce information asymmetries, particularly at the second-tier level. In addition, our inductive analysis reveals several contingency factors that influence the coupling of the secondary agency role of the first-tier supplier. These factors include resource availability at the first-tier supplier's firm, the lead firm's focus on the triple-bottom-line dimension (i.e., environmental or social), the lead firm's use of power, and the lead firm's internal alignment of the sustainability and purchasing function. We integrate our findings in a conceptual framework that advances the research agenda on multi-tier sustainable supply chains, and we subsequently outline the practical implications of assigning the double agency role to first tier suppliers.     

Expanding the boundaries of buyer-supplier agency problems: Moving from dyad to triad

Extant agency theory addresses dyads consisting of a principal and an agent. It informs us about how to overcome agency problems in the buyer-supplier relationship. In this conceptual paper, we propose a theoretical argument that if we expand the boundary conditions from dyads to triads, we find new solutions to dealing with agency problems. To the buyer-supplier dyad, we add the supplier’s supplier, the buyer’s other supplier, the supplier’s other customer, and the buyer’s customer. As such, we consider four types of triads in supply chains and propose that the buyer as the principal could reframe agency problems with the focal supplier by moving to one of these triads. In particular, we investigate alternative mechanisms that may reduce the level of goal incongruence, information asymmetry, and power asymmetry in the buyer-supplier relationship. Our conceptualization suggests that supply managers should look outside the buyer-supplier dyad for additional opportunities to resolve agency problems.     

Effects of the ‘principle of non‐discrimination’ on temporary agency work: compensation and working conditions of temporary agency workers in 15 European countries

This article examines, with reference to Europe (EU‐15), whether temporary agency workers experience less favourable working conditions and compensation than employees with a standard employment contract. Furthermore, it analyses whether the same differences exist in European countries with and without the principle of non‐discrimination in force. The results show that discrimination of temporary workers persists even when we control for other factors. Second, in countries with the principle of non‐discrimination in force, the discrimination is higher with respect to employer‐provided training.     

High‐commitment human resource practices and employee outcomes: The contingent role of organisational identification

In this paper, we examine whether the relationship between high‐commitment human resource (HR) practices and two employee outcomes, quit intentions and organisational citizenship behaviours (OCBs), is contingent on organisational identification. Incorporating insights from both social exchange and social identity theories, we propose that the relationship between high‐commitment HR systems, intention to quit, and OCBs is attenuated when employees strongly identify with their organisation. This proposition was tested and supported with employees of a Swedish relocation company and a Greek shipping organisation. For high identifiers, as perceptions of HR practices deteriorated from high to low, they were associated with smaller increases in quit intentions and smaller decreases in citizenship behaviours. But overall, high identifiers always had lower quit intentions and higher citizenship behaviours than low identifiers, which is managerially reassuring.     

Recruitment and retention in front‐line services: the case of childcare

This article highlights how problems of recruitment and retention in front‐line services create a particular challenge to traditional HRM models and solutions. Private day nurseries make an interesting example of the challenges facing managers in the service sector as the combination of a feminised workforce, a price‐sensitive service, public–private competition and state regulation create particular difficulties. We report on a study of 33 day nurseries involving interviews with managers and employees over an eight‐month period. Our findings show that childcare providers have to cope with recruitment and retention problems associated with high‐end interactive service provision compounded by gender segregation and small business characteristics. Our analysis of employer and employee perspectives examines labour market issues affecting recruitment, and categorises the reasons for staff turnover into internal ‘push’ factors, external ‘pull’ factors, outside factors and functional turnover.     

Pricing by state‐owned enterprises: the case of postal services

Sappington and Sidak develop a model of state‐owned enterprise (SOE) pricing behavior in which firms maximize a weighted average of revenues and profits. The model predicts that SOEs will lower prices in more‐elastic markets and raise them in less‐elastic markets if the weight they place on profit is positive. The Postal Reorganization Act of 1970 relaxed the institutional constraints on pricing by the US Postal Service, which allows a test of the Sappington–Sidak model. The model's predictions are broadly confirmed. Congress passed the Postal Accountability and Enhancement Act in 2006, which may help address some anticompetitive concerns in this industry. Copyright © 2008 John Wiley & Sons, Ltd.     

Resistance as emotional work: the Australian and Canadian non‐profit social services

Drawing on data collected as part of a larger qualitative study of the experience of restructuring in the non‐profit social services in Canada and Australia, this article argues that resistance, including social unionism, is often a complex form of emotional labour and a source of deep satisfaction for care workers in the non‐profit social services.     

Evaluating the dynamic employment effects of training programs in East Germany using conditional difference‐in‐differences

This study analyzes the employment effects of training in East Germany. We propose and apply an extension of the widely used conditional difference‐in‐differences estimator. Focusing on transition rates between nonemployment and employment, we take into account that employment is a state‐ and duration‐dependent process. Our results show that using transition rates is more informative than using unconditional employment rates as commonly done in the literature. Moreover, the results indicate that due to the labor market turbulence during the East German transformation process the focus on labor market dynamics is important. Training as a first participation in a program of Active Labor Market Policies shows zero to positive effects both on re‐employment probabilities and on probabilities of remaining employed with notable variation over the different start dates of the program. Copyright © 2008 John Wiley & Sons, Ltd.     

HRM‐based reforms in public organisations: problems and perspectives

Many attempts at modernisation have been launched in public organisations during the last decade, focused on a renewal of HR policies and devices. Via an in‐depth exploration of three case studies in Belgium, this paper develops an analytical framework likely to explain their contrasting performances. Our main hypothesis is that a lack of coherence (a) within the content itself of HRM‐based reforms, (b) between this content and the context in which it is introduced, or (c) the process by which it is implemented, could explain a large part of the problems encountered. The paper also suggests some key recommendations for the management of HRM‐based reforms in the public sphere.     

Victimisation and agency: the social construction of union women’s leadership

This article interrogates the notion that women union leaders lead differently. Despite significant variation in the union movements in Australia, Canada, Sweden, the UK and the USA, similar discourses on women’s union leadership emerge in all five countries. Based on a materialist social construction approach which supports a recognition of difference without reference to essentialist ideas about women’s nature, this article seeks to identify what may be common across these countries to explain this phenomenon. The article argues that the fact that women face discrimination in unions, on the one hand, and organise as a constituency and have access to women‐only education, on the other, supports the development of transformational leadership among women unionists, even across diverse contexts and cultures. Unpacking union women’s leadership practices in this way reveals a dialectic of victimisation and agency.     

Guerrilla‐style Defensive Architecture in Detroit: A Self‐provisioned Security Strategy in a Neoliberal Space of Disinvestment

Self‐provisioning has long been an important component of urban political economic processes. However, it has recently become a central feature of grassroots urban governance strategies as well. In tumultuous cities of the twenty‐first century, with governments either unwilling or unable to effectively enforce zoning laws, police neighborhoods or manage infrastructure, some householders have begun performing these services instead. This article examines one subset of self‐provisioning practices that has emerged in southwest Detroit where residents have taken steps to secure abandoned housing as a means of exerting social control over their living environment. These actions embody many contradictions and ethical dilemmas, and the intimate scale of action has left the structural production of disinvestment in places like Detroit largely unchecked. Nevertheless, these guerilla‐style spatial interventions have emerged as critically important response strategies helping residents reduce their vulnerability and stabilize their blocks even as other nearby areas continue to experience decline.     

Principal–principal–agency relationships and the role of external governance

This paper explores agency problems associated with mutual and joint stock organizational forms. It examines whether the independent mode of distribution acts as a governance factor that reduces principal–agent and principal–principal costs. By analyzing a 1990–1997 panel of life insurance companies this paper provides evidence that mutuals have higher principal–agent costs, but lower principal–principal costs, compared with stocks. Independent distribution mitigates both agency problems by reducing managerial expenses while safeguarding interests of policyholders. These relationships are positively moderated by product complexity and free cash flow. This is consistent with the assumption that companies that use independent agents exhibit lower levels of manager and shareholder opportunism. Copyright © 2009 John Wiley & Sons, Ltd.     

Generalized P‐values and Bayesian evidence in the one‐sided testing problems under exponential distributions

The problem of comparing the frequentist evidence and the Bayesian evidence in the one‐sided testing problems has been widely treated and many researches revealed that these two methods can reach an agreement approximately. However, most of the previous work dealt mainly with situations without nuisance parameters. Since the presence of nuisance parameters is very common in practice, whether these two kinds of evidence still reach an agreement is a problem worthy of study. In this article, we establish in a systematic way under the exponential distributions the agreement of the Bayesian evidence and the generalized frequentist evidence (the generalized P‐value) for a variety of one‐sided testing problems where the nuisance parameters are involved.     

The legal professions and trade unionism: the ‘Dicey’ dilemma

Are the legal professions simply glorified trade unions? In 1867 Dicey's consideration of the question proved inconclusive. Recent evidence, culminating in the trade union like defence of their practices by the professions following the Government's 1989 Green Paper, seems to have resolved his dilemma.     

Determinants of moral hazard in research and development supply relations: Empirical results beyond the agency‐theory explanation

Moral hazard can hinder both the realization and the effectiveness of research and development (R&D) supply relations. However, to the best of our knowledge, there have been no empirical studies investigating the determinants of moral hazard under the specific circumstances of R&D supply relations. Based on a study on 104 cases, this article will help to fill that gap. The results not only confirm information asymmetries as determinants, as predicted by principal‐agent theory, but also reveal surprising effects of additional factors. Thus, we show that the general explanation of moral hazard needs to be adapted to the specifics of a concrete exchange situation.     

Management problems in welfare services: the role of the “social entrepreneur” in home-help for the elderly, the Valby case

This article deals with the management problems of the traditional welfare state. The article is based on observations and interviews with employees in the home-help service for the elderly in Valby, a suburb of Copenhagen. On the basis of observations and interviews, and with reference to various relevant studies, the history of home-help in Denmark is examined as a “narrative” in order to uncover critical problems and incidents. In Valby an attempt has been made to promote flexibility and interaction with clients, rather than a standardisation of the services offered. The practical expression of this approach can be seen in the shape of a new entrepreneurial role in management, what I call the social entrepreneur. I discuss briefly how support for this new role can be institutionalised. At the theoretical level, I analyse the Valby case using the theory of flexible specialisation. However, the Valby case illustrates the contextual limitations of this theory and the need to complement the approach with an understanding of management problems at the practical level.     

Explaining US–UK Interest Rate Differentials: A Reassessment of the Uncovered Interest Rate Parity in a Bayesian Framework*

In this paper, we test the uncovered interest rate parity (UIRP), allowing for transitory deviations from it. These deviations may arise from variations in risk premia, errors in expectations and linearization errors, and are modelled as a zero‐mean noise around the restrictions implied by the UIRP on a vector autoregression (VAR) in the interest rate differential and the spot exchange rate. Importantly, this approach includes the traditional one as a special case, which is derived by simply setting the noise to zero. When the noise is set to zero the UIRP is rejected, but if we allow for some degree of noise the UIRP is strongly supported by the data. Thus the UIRP relation does not hold exactly, but on average, with a stationary risk premium as opposed to a constant one. This result implies that analysing the effects of policy experiments under the null of the UIRP may be both safe and useful.