Governing Networks in the Hollow State: Contracting out,process management or a combination of the two?

The hollow state is characterized by governing through networks. In this article, we explore the nature of the hollow state and trace and illustrate three basic uncertainties in the decision-making process which create complexity: knowledge uncertainty, institutional uncertainty and strategic uncertainty. Next, we elaborate the main characteristics of contracting out and address the issue of whether these fit the nature of the hollow state. Finally, we ask if the role of politicians should change given the characteristics of the hollow state. We conclude with some thoughts on effective management in the hollow state and the role of process management and contracting out.     

Regionalism in the nineties: what effect on trade?

We apply a gravity model to 1980–1996 annual nonfuel imports data for 58 countries to quantify the effects of recently created or revamped PTAs on trade. We modify the gravity equation to identify separate effects of PTAs on intrabloc trade, members’ total imports and their total exports and to test for significant changes in trade patterns following the creation of trade blocs. We find no indication that ‘new regionalism’ boosted intrabloc trade significantly and we find trade diversion only for the EU and EFTA. The latter also exhibit ‘export diversion’, which could indicate their imposing welfare costs on other countries. Latin American trade liberalization in the 1990s had a positive impact on bloc members’ imports and, usually, exports.     

Aligning employees with the organization's strategic objectives: out of ‘line of sight’, out of mind

This research focuses on the strategic alignment of a firm's human resources. Specifically, I investigate employee ‘line of sight’ to an organization's strategic objectives. Line of sight is conceptualized as an employee's understanding of an organization's objectives and how to contribute to those objectives. Line of sight was expected to vary across individual characteristics (e.g. hierarchical level, tenure) and relate to important work outcomes (e.g. work attitudes, turnover). Results of a field study confirmed many of the hypotheses, supporting the importance of this construct to research and practice.     

Clinical negligence in the UK: throwing the baby out with the bath water?

As the total cost of clinical negligence claims has grown in the UK in recent years, calls for reform have resurfaced. The government now plans a White Paper on the subject next years. This paper assesses some of the economic arguments surrounding such reform. It suggests that the principle of negligence performs a useful economic function, that there is sum uncertainty surrounding the precise costs of the UK's clinical negligence, and that costs of alternative systems may sometimes be larger than they first appear.     

Lessons from Sweden’s first large-scale implementation of Six Sigma in healthcare

The Skaraborg Hospital Group (SkaS) has implemented a variety of quality management initiatives in the last 20 years in accordance with its strategy of excelling at quality development to fulfill the needs and expectations of its patients. One such initiative is Six Sigma, which has contributed to more than 40 completed improvement projects. Using an action research approach, this article describes the lessons that were learned from the first 22 Six Sigma projects, completed between 2006 and 2008 and having a success rate of 75%. We further describe how these insights have contributed to other ongoing quality improvement activities at SkaS. In particular, the paper presents some key points not earlier described in other Six Sigma healthcare applications.     

Results of the first survey of independent trust grantmaking: who is setting the agenda?

Based on an analysis of 2,300 grants made by a representative sample of independent trusts and foundations, ‘Patterns of Independent Grantmaking in the UK’ is the first national survey identifying where independent trusts allocate their funds. The results show that, as in mainstream central and local government expenditure, social care was a clear priority for independent grantmakers, not only attracting the highest proportion of grants overall, but also the single largest proportion of funding, £233m. This figure equals just over one‐third of local authority support for social services in the voluntary sector and indicates that the collective impact of independent funding to the sector is significant. Social care funding consisted mainly of a large number of small to medium‐sized grants. Health was the second largest area, followed by education and the arts. There was a considerable regional imbalance in funding. Given this fairly conservative pattern of funding, the question arises whether funders are led by applicants or vice versa? What is needed to introduce more change and risk into trust funding? Copyright © 2000 Henry Stewart Publications.     

E-commerce regulation: New game,new rules?

Policy makers face many challenges to lay the foundations of a sound regulatory environment for e-commerce. These challenges reflect not only the large variety of policies that can influence e-commerce, but also the emergence of new governance issues that require international coordination. Moreover, the rapid expansion of networks has increased the potential for cross-border disputes in this area. This paper argues that competition among national regulatory regimes is unlikely to promote regulatory harmonization in the near future. The negotiation of a new set of rules at multilateral level, however, is bound to proceed at a slower pace than what would be desirable from the perspective of e-commerce firms. The paper points out that the WTO – as an obvious organization to advance the agenda of multilateral disciplines – is not in a position to deliver quick results with respect to e-commerce. The main contribution that the WTO can offer at this stage concerns the expansion of commitments under the GATS, fostering national treatment and broader market access, particularly, in telecommunications and computer-related services.     

The Ghent effect for whom? Mapping the variations of the Ghent effect across different trade unions in Denmark

The presence of an unemployment insurance system based on voluntary membership in unemployment insurance funds (known as the ‘Ghent system’) and a high union density has long been known and well documented, and even referred to as a special ‘Ghent effect’. However the Ghent system, especially in the three classic Ghent countries, Finland, Sweden and Denmark, has come under significant pressure in recent years, and many researchers are referring to an erosion of the Ghent system as a recruiting mechanism for trade unions. But prior research aimed at documenting the Ghent effect seems to disregard variations in how strongly trade unions benefit from the Ghent system as a recruiting mechanism. Hence, this article sets out to investigate whether all trade unions equally benefit from a Ghent effect across different sectors and occupations by studying the Danish case. Unique survey data made it possible to map Danish wage earners' reasons for joining or leaving unemployment insurance funds and trade unions. The article finds that there are great variations among Danish trade unions in terms of how strongly they are dependent on a Ghent effect as a recruiting mechanism. We may expect the same variations in the two other Ghent countries, Sweden and Finland, because the organisation of the Ghent system is similar in the three Nordic countries. In addition, the article shows that this variation might help explain why some trade unions are on the rise to the detriment of others.     

Small change,big impact? Organisational membership rules and the exit of employers' associations from multiemployer bargaining in Germany

German employers' associations first introduced a so‐called “bargaining‐free” membership (BFM) category in 1990, giving companies the option to join and access services while avoiding the obligations arising to regular members from industry‐level collective agreements with unions. To explain how this phenomenon contributes to change in the German political economy, we investigate why some associations offer their members BFM status whereas others have refused to introduce this option. Controlling for influences such as size and industry, our multivariate analysis of survey data shows that four sets of influences are positively associated with BFM: the role of courts' judicial decisions as “door openers,” structural characteristics of diverging business environments, the evaluation of multiemployer bargaining by the leadership of the association, and the strategic choices of associations.     

Public–private innovation: barriers in the case of mobility as a service in West Sweden

Departing from open innovation (OI), this case study explores the development of Mobility as a Service (MaaS) in West Sweden. An analysis of 19 interviews reveals how representatives from involved actors perceive internal and external barriers as hampering the regional public transport authority’s attempts to collaborate with private actors, and that the perception of barriers is incongruent across public and private actors. Transferability to other cases of public–private OI is discussed, and implications for public actors are proposed. The paper expands the knowledge of preconditions for MaaS’ development and of the unique conditions for OI in public–private settings.     

R&D Outsourcing and the Effectiveness of Intangible Investments: Is Proprietary Core Knowledge Walking out of the Door?

Intangible relationship‐specific investments can be double‐edged swords, as they facilitate not only the governance of business relationships but also undesired knowledge transfers. Building on transaction costs theory and the relational view of alliances, we analyse the effectiveness of these investments in R&D outsourcing agreements from the viewpoint of the client. We argue that, when outsourcing to business firms, the safeguards adopted by the clients to prevent spillovers may reduce the effectiveness of the supplier's specialized investments. Using original survey data from 170 European and US technology‐intensive firms, we find that the contribution of these investments to client performance decreases the more a client's core knowledge is required to perform the service, except when outsourcing to non‐profits. This suggests that as the appropriability hazards associated with outsourcing to business firms rise, the client is able to capture less value from the supplier's relationship‐specific investments.     

Why are these Islands of Conscious Power Found in the Ocean of Ownership? Institutional and Governance Hypotheses Explaining the Existence of Business Groups in Sweden

Four hypotheses concerning the existence of business groups are developed and are tested on two Swedish business groups that were found to provide both government and corporate economy with governance solutions. Swedish culture also appeared supportive of the groups, which were not found to be institutionally inert, building their existence solely on power.     

Stepping out of the Twilight? Assessing the Governance Implications of Land Titling and Regularization Programmes

This article engages with the discussions on the benefits and drawbacks of land titling programmes that seek to regularize informal urban settlements in developing countries. It is based on fieldwork in two neighbourhoods of Maputo, Mozambique, that are currently part of a municipal government regularization programme supported by the World Bank. The fieldwork explored an informal titling system administrated by the neighbourhood authorities upon which local residents rely to prevent land conflicts and to provide proof of residence. The findings add to the literature that demonstrates growing unease with a strictly dyadic formal/informal analysis of land occupation, and further queries the assumption that the state and the informal settler are diametrically opposed, with the former granting formal rights to the latter. In the process of these discussions, the article highlights the limited scholarly attention that has been granted to the governance implications of land titling programmes.     

Fed Credit Policy: What is a Lender of Last Resort?

Discussions of the Fed׳s financial crisis lending – and its role as “Lender of Last Resort” more generally – often overlook the distinction between monetary policy and credit policy. Central bank actions constitute monetary policy if they alter the quantity of the bank׳s monetary liabilities, but constitute credit policy if they alter the composition of the bank׳s portfolio without affecting the outstanding amount of monetary liabilities. In the 19th century, Henry Thornton and Walter Bagehot advocated Lender of Last Resort policies as a means of expanding the money supply when the demand for money surged in a crisis. In contrast, the Fed׳s recent crisis lending for the most part left its outstanding monetary liabilities unaffected, and thus represented credit policy, not Lender of Last Resort activity. Credit allocation in a crisis is potentially costly because it affects market participants׳ beliefs about the likelihood of future central bank rescues, which in turn reduces their incentive to protect themselves against financial distress and thus exacerbates financial instability. Credible limits on credit policy thus are critical to central banks׳ core policy mission. One path to establishing such limits is to create “living wills” that detail how to resolve large, complex financial firms without government support.     

The effect of local and global linkages on the innovativeness in ICT SMEs: does location-specific context matter?

Abstract

Countries differ significantly with regard to the location-specific contexts in which they are embedded. The aim of this paper is to extend the discussion on the effects of local and global innovation collaborations on the degree of novelty of innovation by considering this context. Our main question is: Does embeddedness in the developed or emerging country context affect the likelihood of benefiting from local or global linkages for innovations with higher novelty?

The paper is based on data gathered through a survey of firms in the ICT sector in an emerging economy (India) context and from two Scandinavian countries (Sweden and Norway). The findings of this study show that global linkages do indeed impact the degree of novelty of innovation. However, country context does have a moderating effect. While the effect of global linkages is highly positive on the innovativeness of Scandinavian firms, for the Indian SMEs, the linkages that give novel innovations are the regional ones.     

A survey and analysis of the first 40 years of scholarly literature in DEA: 1978–2016

In recent years there has been an exponential growth in the number of publications related to theory and applications of Data Envelopment Analysis (DEA). Charnes, Cooper, and Rhodes (1978) introduced DEA as a tool for measuring efficiency and productivity of decision making units. DEA has immediately been recognized as a modern tool for performance measurement. Since then, a large and considerable amount of articles has been appeared, including significant breakthroughs in theory and a great portion of works on DEA applications, both public and private sectors, to assess the efficiency and productivity of their activities. Although there have been several bibliographic collections reported, a comprehensive analysis and listing of DEA-related articles covering its first four decades of history is still missing. This paper, thus, aims to report an extensive listing of DEA-related articles including theory and methodology developments and "real" applications in diversified scenarios from 1978 to end of 2016. Some summary statistics of the publications' growth, the most utilized academic journals, authorship analysis, as well as keywords analysis are also provided.     

Property rights out of anarchy? The Demsetz hypothesis in a game of conflict

The Demsetz hypothesis states that secure claims to property arise when the value of creating those rights is sufficiently high. This paper examines the conditions under which this holds in an anarchy equilibrium in which players may allocate labor to production, to conflict, or to the public good of secure claims to property protection. In a simultaneous choice Nash equilibrium, no secure claims to property are created. However, if players play a sequential choice game in which secure claims to property protection occurs in the first stage, then the strategic benefit of reducing others’ subsequent conflict allocation causes secure claims to property to arise. Secure claims to property in a social contract are imperfect, but for sufficiently high productivity of resources, the social contract welfare dominates autocracy.     

Why are the unemployed in worse health? The causal effect of unemployment on health

We analyse the effect of unemployment on health using information from the German Socio-Economic Panel of the years 1991-2008. To establish a causal effect we rely on fixed-effects methods and plant closures as exogenous entries into unemployment. Although unemployment is negatively correlated with health, we do not find a negative effect of unemployment due to plant closure on health across several health measures (health satisfaction, mental health, and hospital visits). For this subgroup of the unemployed, unemployment does not seem to be harmful and selection effects of ill individuals into unemployment are likely to contribute to the observed overall correlation between poor health and unemployment.