Revisiting the decomposition of cost efficiency for non-homothetic technologies: a directional distance function approach

In the early 1980’s Kopp and Diewert proposed a popular method to decompose cost efficiency into allocative and technical efficiency for parametric functional forms based on the radial approach initiated by Farrell. We show that, relying on recently proposed homogeneity and duality results, their approach is unnecessary for self-dual homothetic production functions, while it is inconsistent in the non-homothetic case. By stressing that for homothetic technologies the radial distance function can be correctly interpreted as a technical efficiency measure, since allocative efficiency is independent of the output level and radial input reductions leave it unchanged, we contend that for non-homothetic technologies this is not the case because optimal input demands depend on the output targeted by the firm, as does the inequality between marginal rates of substitution and market prices—allocative inefficiency. We demonstrate that a correct definition of technical efficiency corresponds to the directional distance function because its flexibility ensures that allocative efficiency is kept unchanged through movements in the input production possibility set when solving technical inefficiency, and therefore the associated cost reductions can be solely—and rightly—ascribed to technical-engineering-improvements. The new methodology allowing for a consistent decomposition of cost inefficiency is illustrated resorting to simple examples of non-homothetic production functions.     

Perceived human resource system strength and employee reactions toward change: Revisiting human resource's remit as change agent

Although scholars have highlighted human resource's (HR's) important role as a change agent, we know little about the extent to which HR influences the change context to foster positive employee responses and support organizational changes. This study positions perceived HR system strength as an important internal context factor that influences employees' reactions toward change. Drawing on emotion theory and social exchange theory, we analyze the mechanisms through which employees' perceptions of HR system strength lead to positive employee responses to organizational change. Data from 704 employees in a UK police force showed that employees' perceptions of HR system strength were positively related to their ability to cope with organizational change and that this relationship was simultaneously mediated by state positive affect and perceived organizational support. Moreover, our findings demonstrated that coping with organizational change was positively related to employees' change‐supportive behavior. This study is important because it broadens the remit of HR's role as change agent and provides valuable insight into how HR positively influences employee outcomes during organizational change.     

Collaboration at work: An integrative multilevel conceptualization

The term collaboration has been used throughout a variety of research disciplines to describe multiple types of interaction; yet, a unified, comprehensive definition of the construct remains elusive. This lack of clarity regarding the distinctions and commonalities between collaboration and other interaction concepts has resulted in conceptual confusion that affects practice and research in human resource management. Practitioners see collaboration as more of a buzzword than as an effective human resource strategy. Previous theory development efforts have not yet taken a comprehensive multidisciplinary approach. This has resulted in failure to integrate key themes across disciplines into an overall view of collaboration, which is a commonplace practice in business and military sectors alike. This paper describes a multidisciplinary conceptualization of collaboration and discusses the implications of this integrative theory to human resource management and strategy development as well as future research efforts.     

Saturation in qualitative research: exploring its conceptualization and operationalization

Quality & Quantity - Saturation has attained widespread acceptance as a methodological principle in qualitative research. It is commonly taken to indicate that, on the basis of the data that...     

Community entrepreneurship - cases and conceptualization *

As starting and managing a small business means both social and economic risk taking so is building a robust community a social as well as an economic endeavour. Such a community is a most vital context for entrepreneurship. If located in a remote area and if the environment is hostile cooperation is stimulated between firms and other community groups. Their success is especially ascribed to qualified community entrepreneurship, i.e. personal and innovative ways of building support for local autonomous entrepreneurs. An integrative approach to local economic development is illustrated by two successful, albeit contrasting, Swedish cases.

The cases are reviewed with the help of a conceptual framework that particularly points out the importance of local and global networking in both community and autonomous entrepreneurship. In a mixed economy such networks must be carefully managed and encompass linkages on, beside the market, institutional and political arenas. The very role of the community entrepreneur is to bridge these different settings through alert leadership, if required organized as a team.     

The paradox of paradoxical leadership: A multi-level conceptualization

Organizational systems are drenched in tensions and paradoxes. For a leader, addressing and engaging those tensions in constructive ways may unlock greater benefits for the followers, teams and the organization at large. A leader with a paradox mindset successfully deals with contradictory yet interdependent demands with their paradoxical thinking. While embracing these tensions leverages performance and innovation, experiencing these tensions may also lead to frustration and defensiveness, resulting in negative consequences. Considering the burgeoning importance of paradoxical leader behavior in paradox management and leadership literature, we conduct a systematic review of paradox theory of leadership. Based on the review we propose a multi-level conceptual model stating the dual effect of being a paradoxical leader. To do so, we unveil the individual and contextual factors influencing paradoxical leader behavior on the individual followers, teams and the organization. We present future research avenues and discuss theoretical and practical implications.     

Entrepreneurial Culture and Economic Growth: Revisiting McClelland's Thesis

We reestimate McClelland's (1961) thesis on entrepreneurial culture and economic development. McClelland found a strong positive correlation between measures of need for achievement (N achievement) imagery in school textbooks and the subsequent rate of economic growth. Benchmarking our findings against generally accepted empirical growth models, we find no support for his thesis. This leads us to rethink the relationship between entrepreneurial culture and economic growth.     

Time is of the essence: Improving the conceptualization and measurement of time

We advance the understanding and measurement of the concept of time by offering a taxonomy of four distinct time constructs: duration, frequency, timing, and sequence. On the basis of a literature review of human resource management and allied fields (i.e., organizational behavior, industrial and organizational psychology, general management, entrepreneurship, and strategic management studies), we offer recommendations on how to measure each construct as well as illustrations drawn from different domains and theories on how these recommendations can be implemented. In addition, for each construct, we offer specific, practical, and actionable recommendations regarding critical design choices, dilemmas, and trade-offs that must be considered when investigating time conceptually and empirically. We discuss these recommendations in the form of a sequential decision-making process that can be used as a roadmap by researchers. We hope our conceptualization and recommendations will serve as a catalyst and useful resource for future conceptual and empirical research that aims to formulate better time-sensitive and temporally falsifiable theories.     

Revisiting the arcs of integration: Cross-validations and extensions

This paper revisits Frohlich and Westbrook's arcs of integration concept [Arcs of integration: an international study of supply chain strategies. Journal of Operations Management 2001, 19 (2) pp. 185–200]. Using survey responses from 403 supply chain professionals, we compare the arcs of integration group memberships generated with our sample to the original study, rationalize the classification scheme, and assess the impact of supply chain integration strategies on quality, delivery, flexibility and cost performance. In doing so we cross-validate Frohlich and Westbrook's framework with a more recent and broader sample of data utilizing multi-dimensional performance measures collected from supply chain managers. We ground these relationships in the relational and resource-based views of the firm. We also extend Frohlich and Westbrook's study by investigating the moderating role of internal integration on the relationships between arcs of integration and performance. In accordance with information processing theory, the results indicate that internal integration strengthens the positive impacts of external integration on both delivery and flexibility performance. However, the theory is not supported for either quality or cost performance. Overall, our study confirms and extends the work of Frohlich and Westbrook, augments theories used to describe supply chain integration efforts, and provides practical implications for managers.     

Revisiting the theory of production competence: Extensions and cross-validations

This paper examines a widely cited work in operations management, the theory of production competence, advanced initially by Cleveland, Schroeder, and Anderson (CSA). This intuitively appealing proposition asserts that production competence leads to improved business performance. However, CSA's empirical work has been criticized by Vickery and her collaborators and by Safizadeh, Ritzman, and Mallick (SRM). Moreover, SRM's own empirical work suggested that the CSA proposition only holds for batch processes. Using data from two large studies, we avoid the problems that plagued CSA's analysis, improve on their result, and call into question the SRM finding that restricts that result to batch operations.     

Time to build capital: Revisiting investment-cash-flow sensitivities

A large body of empirical work has established the significance of cash flow in explaining investment dynamics. This finding is further taken as evidence of capital market imperfections. We show, using a perfect capital markets model, that time-to-build for capital projects creates an investment-cash-flow sensitivity as found in empirical studies that may not be indicative of capital market frictions. The result is due to mis-specification present in empirical investment-q equations under time-to-build investment. In addition, time aggregation error can give rise to cash-flow effects independently of the time-to-build effect. Importantly, both errors arise independently of potential measurement error in q. Evidence from a large panel of U.K. manufacturing firms confirms the validity of the time-to-build investment channel.     

Group concept mapping methodology: toward an epistemology of group conceptualization,complexity, and emergence

Quality & Quantity - Group concept mapping is a participatory mixed-methods approach to social and behavioral research that integrates qualitative group processes with multivariate statistical...     

Revisiting the Quantitative-Qualitative Debate: Implications for Mixed-Methods Research

Health care research includes many studies that combine quantitative and qualitative methods. In this paper, we revisit the quantitative-qualitative debate and review the arguments for and against using mixed-methods. In addition, we discuss the implications stemming from our view, that the paradigms upon which the methods are based have a different view of reality and therefore a different view of the phenomenon under study. Because the two paradigms do not study the same phenomena, quantitative and qualitative methods cannot be combined for cross-validation or triangulation purposes. However, they can be combined for complementary purposes. Future standards for mixed-methods research should clearly reflect this recommendation.     

Overlooked issues in the conceptualization and measurement of counterproductive work behavior

The current paper addresses three important yet generally overlooked issues regarding the conceptualization and measurement of counterproductive work behaviors (CWBs). First, we argue that the field would benefit from the adoption of situation-specific CWB measures that are tailored to the organization or occupation being studied. Such an approach would ensure that CWB measures include sample-relevant behaviors and exclude irrelevant behaviors. Second, we discuss several potential sub-dimensions of CWBs that should be examined in future research. These sub-dimensions include: 1) legal vs. illegal activities, 2) hostile vs. instrumental aggression, and 3) task-related vs. non-task-related counterproductive behaviors. Finally, we consider the relevance of the bandwidth-fidelity principle to the measurement of CWBs.     

Trajectories for Modernizing Local Governance: Revisiting the Flanders Case

Local government plays a central but altering role in local governance. Together with the shift from a night-watchman state to a welfare state , the models of governance provision changed. Government itself became larger and more scattered throughout the local community. Moreover, government was no longer the only governance provider. Many actors were involved in governance with a diversity of steering relations. In our time, governance continues to change. What are the emerging models of local governance today? After sorting out some terminological and methodological issues, we describe four emerging ideal-type models (i.e. the holding model , the autonomous networks model , the implementation model and the reintegration model ), based on four societal scenarios (i.e. triumphant markets , hundred flowers , creative societies and turbulent neighbourhoods ). The models represent four possible local governance futures. Next, the models are applied on two management issues: organizational structure and financial management. Finally, some embryonic evidence is given on the emergence of the models.     

Revisiting the objectives of worker-managed firms: An empirical assessment

This paper provides new evidence on the objectives pursued by worker-managed firms (WMFs). The basic neoclassical model assumes that WMFs maximizes net income per member instead of total profits (Ward, 1958). Even though it has been largely criticized, the Ward model has dominated the self-management literature. Alternative models suggest that WMFs are not only concerned about income per worker but also about the level of employment. However, the empirical content of these competing theoretical models has been rarely analyzed. This paper contributes to fill this gap by estimating the parameters of a generic welfare function, following the methodology proposed by Craig and Pencavel (1993). These parameters determine the relative importance that a WMF places on income per worker vis-a-vis the level of employment. Estimates are based on a long micro-panel of Uruguayan firms covering the entire population of Uruguayan worker-managed firm and conventional firms in 31 3-digit sectors over the period April 1996-December 2005. Following a strictly neoclassical framework, but simply allowing a more general specification of the WMF goals, we show that the assumption of the basic neoclassical model of the WMF is misleading. Our results support the view that WMFs are concerned with both employment and income per worker.