Hablas vielleicht un peu la mia language? A comprehensive overview of the role of language differences in headquarters–subsidiary communication

The management of human resources in headquarters (HQ)–subsidiary relationships requires intensive communication, but effective communication often depends on having a shared language. Hence, language differences can be a serious threat to the successful management of human resources in multinational corporations. In this large-scale quantitative study, encompassing data from more than 800 subsidiaries in 13 countries, we investigated four related issues. First, in terms of the importance of language differences, we found that HQ–subsidiary relationships are clearly affected by language differences and that the latter form a distance category of their own, which should not be subsumed under the related, but separate concept of cultural differences. Second, regarding the consequences of language differences for communication outcomes, we found that a lack of a shared language is associated with misunderstanding, conflict and parallel information networks, which could harm HQ–subsidiary interactions. Third, with regard to the impact of language differences on communication methods, we found that a lack of a shared language is associated with a significantly lower level of oral (face-to-face and phone) communication, but not written communication. Fourth, and finally, in terms of a potential solution to communication problems caused by language differences, we found that expatriates can facilitate both communication and knowledge transfer between HQ and subsidiaries.     

SICK PAY INSURANCE AND SICKNESS ABSENCE: SOME EUROPEAN CROSS-COUNTRY OBSERVATIONS AND A REVIEW OF PREVIOUS RESEARCH

All European countries have some form of compulsory insurance against the loss of income due to temporary disability. The insurance schemes vary widely between countries both in terms of measurable entities (such as the compensation level) as well as in unmeasurable traits concerning the actual implementation of the programs. In this paper we use European Labour Force Survey data to study how the measurable differences in the programs is associated with differences in absence rates. We also summarize the theoretical literature on insurance principles in this field. Based on the empirical literature we then discuss how different forms of incentives may affect the work absence rate.     

Multinationals,labour management and the process of reverse diffusion: A case study

This paper investigates a form of diffusion largely overlooked in the literature, namely reverse diffusion, in which practices flow from the overseas to the domestic plants. It examines the process of this type of diffusion, focussing on the role of the HQ and the way in which plant managers are influenced by management at this level. Evidence is presented from a case study of a British MNC.     

TOP MANAGEMENT TURNOVER AND CEO SUCCESSION: AN INVESTIGATION OF THE EFFECTS OF TURNOVER ON PERFORMANCE

One strategic action which is often taken by firms in need of a turnaround is to bring in a new chief executive officer (CEO). Many observers argue, however, that having done this the new CEO must replace large numbers of top managers in order to effect a change in the firm's interactions and subsequent performance. Critics of this perspective insist that just the opposite is true. Substantial levels of turnover may only serve to further disrupt the organization decreasing performance still more. This controversy is addressed in the following study using a sample of 84 firms all of which experienced CEO succession during the year 1980. Analyses rely on a three-year-period pre-succession and three-year period post-succession. Three hypotheses are proposed. First, poor performance prior to CEO succession leads to greater turnover afterward. Second, that turnover is curvilinearly related to performance after the succession. And, finally, that successor type (i.e. whether the CEO was an inside or outside candidate) is related to the level of turnover in upper level management positions in the post-succession period. the results from tests of these hypotheses are presented, and the implications of these findings are discussed.     

Knowledge transfer in multinationals: The role of inpatriates' boundary spanning

Viewing knowledge as rooted in individuals, this study investigates knowledge transfer in multinational corporations (MNCs) from an individual‐level perspective. Specifically, the author focuses on inpatriates as a particular group of knowledge actors in MNCs and examines the role of inpatriates' boundary spanning between their home unit and the headquarters for transferring their knowledge to headquarters staff. Based on a sample of 269 inpatriates in 10 German MNCs, the author found that inpatriates' boundary spanning is positively related to inpatriates' individual efforts to transfer knowledge and inpatriates' perceptions of HQ staff efforts to acquire subsidiary‐specific knowledge. Both perceived HQ absorptive capacity and mentoring by HQ staff moderate these relationships. This study's findings contribute to our understanding of the theoretical mechanisms through which MNC knowledge flows occur and highlight key requirements for the design of international staffing practices. ©2011 Wiley Periodicals, Inc.     

Global talent management and inpatriate social capital building: a status inconsistency perspective

Distinct to expatriate managers at the subsidiary-level, inpatriate managers' influence at the headquarter (HQ)-level is controlled by the extent to which an inpatriate manager is able to ‘win’ status from HQ personnel. The primary goal of the paper is to conceptualize how organizational support, in the form of global talent management (GTM) practices, can alleviate inpatriates' difficulties in building social capital at HQ. Building social capital at HQ is vital for inpatriates to attain status in order to build the inter-unit social capital that enables them to pursue their boundary-spanning role across HQs and subsidiaries. Status inconsistency theory is put forward to recognize the personal, professional and structural incongruence of events and activities at HQ carried out with respect to inpatriates. We argue that inpatriate managers become empowered at HQ only when social capital is accumulated whereby social capital is driven by an acknowledgment of inpatriates as a legitimate staffing option. The relationship between GTM practices and social capital building needs to be managed properly by inpatriates themselves as well as by the organization. A future research agenda helping to build social capital of inpatriates through GTM infrastructure is discussed and propositions are offered throughout.     

REGIONAL CONVERGENCE AND THE ECONOMIC PERFORMANCE OF PERIPHERAL AREAS IN TURKEY

The objective of this paper is to examine regional convergence and core-periphery relations in Turkey. The main question explores the degree to which there has been a transformation of interregional disparities in terms of "convergence" and performance of peripheral regions in Turkey by considering GDP per capita over the 1980-97 period. As a result of σ and β convergence (absolute and conditional) analyses, following Barro and Sala-i-Martin (1995), there is no evidence for convergence across both provinces and the functional regions in Turkey from 1980 to 1997. Moreover, a high level of the spatial dependence was revealed. Therefore, the level of regional GDP per capita growth was highly related to the neighbors and disparities are still obvious between the east and west of Turkey. Most of the new dynamic areas are also located in the west. Notwithstanding policies for "Priority Provinces in Development" (PPD), the findings of the convergence analysis indicates that PPDs do not grow faster than core-developed provinces. Moreover, the majority of them remained as poor regions with their neighbors. While the PPDs share similar features compare to the developed provinces, they are differentiated in terms of their performance.     

Where do manufacturing firms locate their headquarters?

Firms often separate headquarters' (HQ) functions physically from their production facilities and construct stand-alone HQs. By locating its HQ in a large, service oriented metro area away from its production facilities, a firm may be better able to outsource service functions in that local metro market and also to gather information about market conditions for their products. However if the firm locates the HQ away from its production activity, the coordination costs in managing plant activities are increased. In this paper, we empirically analyze the trade-off between these two considerations.     

LABOUR PRODUCTIVITY CHANGES AND WORKING TIME: THE CASE OF GREECE

In terms of the annual hours worked per employee, Greece ranks first among EU-15 countries and second among OECD countries. In this context, the austerity measures it adopted (as suggested by the EU and IMF) imply, among other things, a reduction in the over-hours. If such reductions were not to be accompanied by increases in labour productivity, output would be reduced considerably. This paper therefore addresses the question: “What change in sectoral labour productivity levels would have been required to deliver the actual change in final demands in Greece between 1995 and 2005, if working hours in each sector had been reduced to their EU averages?” In this framework, we develop a methodology for calculating labour productivity change by sector of economic activity in an input–output context. Next, we apply it to the Greek economy for the time period 1995–2005, the most recent period for which the required data are available. We find that the required productivity changes are the most substantial for the hotels and restaurants sector, followed by machinery manufacturing and the trade sectors.     

A CRITICAL REVIEW ON EVOLUTION OF RISK FACTORS AND FACTOR MODELS

The purpose of this work is to critically evaluate the evolution of risk factors and factor models. A systematic and structured literature review is carried out to observe and understand the past trends and extant patterns/themes in the present research area, evaluate contributions and summarize knowledge, thereby identifying limitations, implications and potential directions of further research. The main message from the study is that evolution of risk factors and factor models are continuous and endless development. Still today over 300 risk factors are identified by the researchers and many other yet to be discovered but out of them all only few are significantly responsible in explaining the stock markets risk return relationship. Study classifies risk factors into two groups: global and specific risk factors. Study answer the question ‘whether evolution of risk factors and factor models are endless development’. Finally, the present study gives an appropriate direction to the future studies to be taken in terms of risk factors and factor models. Due to continuous evolution and changing of nature of the risk factor it seems quite impossible to have a stable efficient factor models that can explain stock market risk return relationship globally in long run.     

EXAMINING THE RELATIONSHIP BETWEEN QUALITY OF LIFE AMENITIES AND ECONOMIC DEVELOPMENT IN THE SOUTHEAST USA

This paper contributes to the ongoing discussion about amenity-driven rural development strategies by examining the relationship between quality of life amenities and rural economic development in the Southeast USA. The premise is that what is true at a national level may provide a partial or misleading picture when we look at particular areas. Additionally, data available at the county level can often provide richer and more precise information than what is found at the national level. The paper estimates spatial regression models using county-level data. For the most part, the results suggest that the differences in quality of life and amenities factors can explain a large portion of the trend in per capita income, employment and population change across counties in the Southeast USA.     

CHAMPIONS OF CHANGE AND STRATEGIC SHIFTS: THE ROLE OF INTERNAL AND EXTERNAL CHANGE ADVOCATES*

Change advocates who participate in the process of strategy-making can play an important role in enabling organizational adaptation. To examine the nature of this role, this article investigates the influence on strategic shifts of two such participants - new members of the top management team and management consultants. Empirical findings suggest that managers see these two types of change agents as having two different kinds of influence on strategic shifts. Specifically, the change agent role of management consultants is viewed as one that creates pressure for change by helping to shape new managerial perspectives of the environment. In contrast, the change agent role of new members of the top management team is viewed as one that counteracts inertial forces that may block the implementation of change. These results suggest that management consultants may be much more useful in stimulating changes in the ways executives think about their environment than they are in implementing radical strategic changes. To overcome institutional resistance to extreme strategic shifts, organizations may need to resort to stronger political and symbolic actions, such as promoting or hiring new top executives in key leadership roles.     

SYSTEMATIC LITERATURE REVIEW OF TOURISM GROWTH NEXUS: AN OVERVIEW OF THE LITERATURE AND A CONTENT ANALYSIS OF 100 MOST INFLUENTIAL PAPERS

This study performs the first citation-based systematic literature review of the tourism-growth nexus. The citation analysis provides a bird's eye view of this literature, which, in turn, identifies the sources of knowledge in terms of most influential journals, authors, and articles. A detailed content analysis of 100 most influential papers has been generated on the nature of the study, variables used, country of analysis, type of analysis, the methodology, and the direction of causality. In total, 284 papers were found relevant in the Scopus database using a comprehensive list of keywords. The citation analysis reveals that Tourism Management is the leading journal with a total of 2527 citation counts, whereas Tourism Economics is the leading journal with a total of 41 publications on this topic. Juan Gabriel Brida is the most prolific author, whereas Lee and Chang (2008) is recognized as the most influential paper. The content analysis reveals that 58% have applied time series, and 38% have used panel data analysis. Tourism causing growth is the leading result of both time-series and panel studies. International tourism receipts/earnings/expenditure and the number of international tourist arrivals are the most widely used variables to measure tourism.     

The significance of sustained entrepreneurial orientation on performance of firms – A longitudinal analysis

This study focuses on the importance of changes in entrepreneurial orientation (EO) over time for subsequent firm performance, and the significance which inimitable resources (networks, governance system and unique competence) might have in this connection. Hypotheses are developed to test the effects that changes in EO level over a time period and resources have on subsequent firm performance. The study is based on data from 168 Norwegian SMEs, interviewed both in 2000 and 2003. The primary contribution of this study is that a change in EO over time (increased or decreased), may be of importance for a firm's performance represented by performance compared to competitors, and employment growth. A focus on entrepreneurial activities seems to be beneficial in the long run (increasing EO), while the opposite is the case if the EO level decreases. It is especially encouraging to see that firms focusing on EO (increased or the same) are positively associated with employment growth, one of the primary policy goals world-wide. Another contribution from this study is that resources that may be inimitable for firms have some influence on performance compared to competitors. Implications for policy-makers, practitioners and further research are discussed.     

THE QUALITY AND EFFICIENCY OF PRIVATE AND PUBLIC EDUCATION: A CASE-STUDY OF URBAN INDIA†

Recent evidence of a substantial link between quality of schooling and individual productivity suggests that, from an economic efficiency perspective, quality aspects of education deserve attention. This paper presents empirical evidence on the relative quality and efficiency of private and government-funded schools in urban India, using data from Uttar Pradesh. The results suggest that standardizing for home background and controlling for sample selectivity greatly reduces the raw average achievement advantage of private school students over public school students, but does not wipe it out. Private schools' standardized achievement advantage (or better quality) is complemented by their lower unit costs to enable them to be more efficient. The results support much of the existing international evidence on the relative efficiency of private and public schools.     

MERGERS AND PROFITABILITY: A MANAGERIAL SUCCESS STORY?*

Since 1983 expenditure on acquisitions in the UK has more than doubled in real terms, despite the fact that the consensus of opinion in the academic literature is that acquisitions are not, on average, performance enhancing for the acquiring firm. Such literature, however, relates mainly to the acquisition of large, public companies. Drawing on survey evidence from 146 of the UK's top 500 companies, this article reports the results from a survey which encompasses all takeovers. The study revealed that is the expected reward of increased profitabililty which is used in ex-post evaluation. The major finding of the study is, however, that managers firmly perceive that their takeover activity has been performance enhancing for their company. The evidence presented does suggest that the integration of small acquisitions into an existing organizational structure may be achieved without severe problems of loss of control, and the subsequent decline in performance which beset large acquisitions     

THE MEANING OF FAILED REPLICATIONS: A REVIEW AND PROPOSAL

The welcome rise of replication tests in economics has not been accompanied by a consensus standard for determining what constitutes a replication. A discrepant replication, in current usage of the term, can signal anything from an unremarkable disagreement over methods to scientific incompetence or misconduct. This paper proposes a standard for classifying one study as a replication of some other study. It is a standard that places the burden of proof on a study to demonstrate that it should have obtained identical results to the original, a conservative standard that is already used implicitly by many researchers. It contrasts this standard with decades of unsuccessful attempts to harmonize terminology, and argues that many prominent results described as replication tests should not be described as such. Adopting a conservative standard like this one can improve incentives for researchers, encouraging more and better replication tests.