External sources for innovation in public organisations

This article's objective is twofold: First, to provide a framework for understanding the role of external information sources in service innovation, with particular attention to innovation in public organisations. The second part of the article's objective is to test the proposed framework. Method of analysis is based on data at European level from the 2010 Innobarometer Survey on Public Innovation. Data is used for estimating a bivariate probit with sample selection, where the selection variable indicates whether or not organisations have recently implemented service innovations and the estimated variable indicates whether organisations have introduced services that are new to the whole public sector. Results indicate a significant relation between the use of both internal and external sources of information and the implementation of innovations by public organisations. External sources are shown to be more relevant for the implementation of services that are new to the public sector.     

Predictors of Ethical Code Use and Ethical Tolerance in the Public Sector

This paper reports the results of a survey of ethical attitudes, values, and propensities in public sector employees in Australia. It was expected that demographic variables, personal values, and contextual variables at the individual level, and group- and organisational-level values would predict use of formal codes of ethics and ethical tolerance (tolerance of unethical behaviour). Useable data were received from 500 respondents selected at random across public sector organisations in a single Australian state. Results supported the study hypotheses, but indicated that different mechanisms underlie each of the criterion variables. Use of ethical codes was determined primarily on the basis of a perception that others use the code, while ethical tolerance was determined by personal values. At an applied level, the research highlights the need for orgasnizations to establish a critical mass of code users, so that this operates as a normative influence on others in the organization.     

Public-Private Partnerships for Service Delivery

This article reports on the performance of services contracted out by the public sector to private sector organisations. The conclusions are based on probably the biggest-ever questionnaire survey on this topic to-date: it covered 7,500 public-private partnerships, and was replicated annually over three years. The private sector organisations providing the services included multinationals like IBM and Andersen Consulting as well as local firms. The public sector "clients" were all from three Australian states or the Australian federal government. The study not only shows that these partnerships are set to go on expanding fast, but also explores the ways in which they have been successful and the pitfalls which the partners need to avoid.     

Does it Pay to Be Ethical? Examining the Relationship Between Organisations’ Ethical Culture and Innovativeness

In this article, we examine the relationship between ethical organisational culture and organisational innovativeness. A quantitative empirical analysis is based on a survey of a total of 719 respondents from all levels of three Finnish organisations, both general staff and managers. The organisations belong to both the private and public sectors. The results of this study show that organisations’ ethical culture is associated with their organisational innovativeness, and that different dimensions of ethical culture are associated with different dimensions of organisational innovativeness. The ethical culture of the organisation had a specific role in process and behavioural innovativeness. It was found that congruency of management was the single dimension with the highest effect on organisational innovativeness overall and specifically on process and behavioural innovativeness. These findings suggest that when organisations are aiming for specific outcomes, such as organisational innovativeness, they need to be aware of what dimensions of ethical culture are particularly relevant.     

The impact of the work environment on ethical decision making: Some Australian evidence

Business ethics has emerged in recent years as a field of significant scholarly endeavour. Particularly well documented is the existence of ethical conflict at work and the reported inseparability of business decisions and moral consequences. However, to date, the majority of studies have been conducted in the American business context.This paper examines the concept of ethical conflict as experienced by employees in the Australian context. According to a sample of Western Australian managers, ethical conflicts at work do occur — with relative frequency. Of considerable concern is the high incidence of cases where the demands of superiors are deemed to be the cause of this conflict. This finding is particularly disturbing as superiors are also the primary influence on employee ethical decision making. It would see that the ethics role models are also the instigators of unethical behaviour.This research has confirmed in the Western Australian context that the values of top management do have significant impact on the ethical choices made by employees. The management of organisational culture, therefore, is a key to raising ethical standards in business. The institutionalisation of ethics by such formal means as codes of ethics is a necessary, but insufficient, condition of ensuring ethical behaviour in organisations. Management of the informal climate is pivotal to the achievement of ethical organisational behaviour.Geoffrey Soutar is Professor of Management at Curtin University of Technology. He has particular interests in marketing and, in recent times, in the marketing of services. He has published widely across a number of management areas and has acted as consultant for both private and public sector organisations as well as for a number of unions.Margaret McNeil is a Lecturer in the School of Management at Curtin University of Technology. Her research interests include corporate innovation and financial services marketing. Consultancy has been in the areas of financial services, professional services and non-profit organisations.Caron Molster is a Research Assistant in the School of Management at Curtin University of Technology. She has a research interest in the area of ethics, having completed her thesis on this topic.     

External consultants in organisations: evaluating the Spanish case

The article looks into the importance of the work performed by external consultants and consulting as a function in Spanish public and private small and medium-sized industrial organizations that could potentially seek the services of an adviser. The study was conducted by asking them whether they considered the results of the adviser's project to be useful, and about its quality. The aim of the research was to examine what was felt by public and private organisations concerning the use of specialised external advisers, bearing in mind the different reasons that influence politicians, in the case of public companies, and the directors of private companies to engage such services. The former sought to obtain as many votes as possible in the next elections (since the basic purpose underlying the analysis carried out by the external adviser is to maximise the welfare of society). The directors of private firms, on the other hand, sought to obtain returns from the capital invested in engaging the adviser and, thus, maximise the company's profits. Data were obtained by means of personal interviews conducted in organisations that had used consulting services.     

Greening the Service Industries

Despite the dominant role service industries play in modern society, little attention has been paid to assessing and improving their environmental performance. In this research, environmentally related performance data for six different service organisations were acquired, and the organisations evaluated using a services-oriented matrix analysis tool. The greatest potential environmental gains that can be achieved by these service organisations are shown to be those associated with the design of the buildings in which the services are located and the ways in which those buildings and their contents are provisioned, not with service-related operations. These results appear likely to apply generally to all types of service organisations.     

Small Firm Financing in Sweden, 1960–95

This article analyses the financial environment facing small firms in Sweden, 1960–95. The Swedish approach to small firms makes no clear distinction between the functions of non-market and market organisations or between private and public lenders. Their typical financial contracts are essentially similar: open-ended and based on commercial considerations. The long-standing commitment which is observed from both types of creditors implies a continuous exchange of information, carried in the form of regional business networks. The two types of organisations share risks in the financing of new projects, and the role of bank credit as a signal when applying for public credit reinforces the perception of a business network in which private and public organisations collaborate. This stresses the importance of analysing venture capitalists as an entity rather than as isolated actors. A triad relationship between firms, public and private lenders distinguishes the Swedish case. The mixture of state-based and market-based finance has a long tradition related to the Swedish model of a mixed economy.     

Understanding the town centre customer experience (TCCE)

This research enhances the understanding of consumer behaviour and customer experience in the context of town centres. First, it defines town centre customer experience (TCCE) as a multifaceted journey that combines interactions with a diverse range of public and private organisations, including retailers and social and community elements; this results in a unique experience co-created with the consumer across a series of functional and experiential touchpoints. Second, combining qualitative and quantitative insights, this research reveals a series of specific functional and experiential TCCE touchpoints, which underpin the consumer internal response (motivation to visit) and outward behaviour (desire to stay and revisit intentions) in the town centre. In addition to enhancing town centre and customer experience knowledge, these findings offer important new insights to those managing town centres and seeking to retain customer loyalty in the high street. Above all, these findings can help identify the touchpoints that need to be reinforced and/or improved to differentiate a town from its competing centres and to create tailored marketing strategies. Taken together, such initiatives have the potential to positively impact the revitalisation of the high street and the town centre economy.     

Public Sector Marketing in Australia:

Government departments and public sector organisations in Australia are utilising marketing concepts and techniques that originated in the private sector. This has been reported by reference to case studies. However, no systematic attempt to assess the implementation of marketing in the public sector has been reported. This article reports a survey of the use of marketing positions in the Australian public sector over the ten year period 1982-1991. It shows that public sector organisations with similar objectives to organisations in the economic environment of the private sector may well be implementing marketing oriented management. However, a significant and consistent difference is found in the use of marketing between those public sector organisations with a social and political orientation as opposed to those organisations with a commercial and/or economic orientation.     

Business Ethics: Practical Proposals for Organisations

A review of ethical literature demonstrates that the material presented to date is largely based upon theoretical and empirical research. While this information has contributory value, the information produced is largely observational rather than practical. Managers are anxious to receive assistance with the mechanisms by which ethics can be integrated into their organisations. Utilising the recent experience of the author with a large utility company in Asia committed to developing an ethical programme to enhance ethical awareness in their organisation, this paper intends to review current systems and procedures available to managers for integrating ethics into business. In addition to reviewing mechanisms for promoting an ethical climate, where appropriate, reference will be made to prior research and specific organisations where these practices have been used successfully. The paper concludes with a set of summary recommendations for managers embarking on the introduction of an ethical programme to their organisation.     

Business Ethics: The Promise of Neuroscience

Cultural diversity is an increasingly important phenomenon that affects not only social and political harmony but also the cohesion and efficiency of organisations. The problems that firms have with regard to managing cultural diversity have been abundantly studied in recent decades from the perspectives of management theory and moral philosophy, but there are still open questions that require deeper reflection and broader empirical analysis. Managing cultural diversity in organisations is of prime importance because it involves harmonising different values, beliefs, credos and customs, and, in essence, human identity. Taking into consideration these cultural differences and harmonising them is a human rights issue (UNDP, Cultural liberty in today’s diverse world, 2004) and a central dimension of corporate social responsibility. Here we are going to focus on theoretical reflection about the ideas that lie behind corporate policies and organisational initiatives that deal with cultural diversity. The aim of our paper is twofold: to present a critical reflection on the ideology of tolerance, and propose an ideology of respect for dealing with cultural diversity. We start by presenting the plurality of interpretations of the concept of ideology, and justify its applicability to the field of cultural diversity. We then reflect on the differences between “tolerance” and “respect” and identifying the practical implications for managing cultural diversity. And finally, we propose a culture of respect that goes beyond tolerance and complements and legitimizes the “business case” perspective for managing cultural diversity in companies. The ideology of respect is based on the Kantian tradition and on the discursive approach where rational dialogue and argumentation are considered the legitimate process for creating a culture of intercultural respect. From this theoretical discussion of the key philosophical concepts we can suggest some general principles for managing cultural diversity in organisations.     

Right appeals for the 'right self': connectedness–separateness self-schema and cross-cultural persuasion

While culture is often used as a segmentation variable, it may not be used as a surrogate for individual consumer in particular cultures. It is important to identify the underlying mechanism that explains the observed cross-cultural similarities and differences of consumer behaviour and to conduct international advertising research based on theoretically valid frameworks. The present paper presents the connectedness-separateness (C-S) self-schema theory based on psychological and anthropological research streams. It is argued that consumers from different cultures tend to have different construals of the self, which in turn influence their cognition, emotion, motivation and behaviour. It is proposed that cross-cultural differences in consumer responses to different advertising appeals may be explained by consumer C-S self-schema, rather than cultural orientation per se . The C-S construct can also be employed to segment the world market across cultures as well as within a culture. A series of propositions is developed by relating cross-cultural differences in self-construal to the effective design of cross-cultural advertising themes and executions.     

The role of customer management capabilities in public–private partnerships

Commercial organisations are increasingly asked to perform tasks traditionally associated with governmental bodies, such as law enforcement. The rationale for these public–private partnerships is that there are synergies between traditional business skills and those required to achieve certain societal goals. However, there is a lack of research into whether this is, indeed, the case. This paper addresses this gap by investigating one particular type of public–private partnership: anti-money laundering (AML). The study explores the potential synergies between customer relationship management (CRM) and those required for AML. A quantitative survey-based approach is used to identify the overlaps and connections between these two areas of competence. The findings reveal tensions between financial institutions’ dual roles as both commercial organisations and players in the battle against money laundering. The consequences for these firms are explored, and the wider implications for other organisations supplying non-commercial services to government are considered.     

Community Development and Social Regeneration: How the Third Sector Addresses the Needs of BME Communities in Post-Industrial Cities

Interest in third sector organisations (TSOs) is growing as their role in addressing social regeneration, especially in urban environments, is regarded as crucial by governmental and supra-governmental organisations. The challenge is increased in multicultural environments, where those from ethnic minorities may struggle to participate in the mainstream economy and society more broadly. There is an assumption that TSOs make a positive contribution to the social good of the diverse communities and client groups that they serve. However, although there have been many studies of ethicality in commercial and public sector organisations, few focus on TSOs. Furthermore, black and minority ethnic (BME) TSOs, in particular face specific pressures, caught between the high expectations of their capacity to engage with diverse communities where the public sector has failed and, in common with all TSOs, the struggle to secure the resources necessary to manage their organisations and deliver front-line services. In this article, we investigate how implicitly ethicality is constructed in TSOs, including those with a primary mission to provide support for and services to BME communities. Building on information obtained for 305 TSOs in a post-industrial city we develop a structural equation model (SEM) in order to evaluate the relationships between elements that we argue comprise ethicality. We then assess the manner in which TSOs generally, and BME TSOs specifically, vary in the manner in which they communicate their ethical purpose and the outcomes of their actions.     

An Exploration of Opportunities for the Growth of the Fair Trade Market: Three Cases of Craft Organisations

Businesses that maintain ethical standards have an advantage in the marketplace based on the increasing interest of consumers in products that have a social and ethical component. Fair trade organisations that adopt environmental, social and ethical principles in trading are in a good position to make the most of this growing interest in the market. However, it is unclear whether fair trade organisations are taking full advantage of emerging market opportunities for ethically traded products. This research explores this issue by describing the business strategies of three fair trade organisations that import and sell craft goods into Western countries and evaluates them in the context of this growing market. The research findings indicate that in order to remain in business, fair trade craft organisations have had to adopt better business practices in recent years, improving quality, customer service and product offerings to customers. However, growth appears to be limited, as distribution remains focused on a small, niche market. This paper explores the distribution strategies of two fair trade commodity organisations that are successfully reaching a wider customer base, demonstrating that fair trade products have a unique selling advantage in the mainstream marketplace. In conclusion, fair trade craft organisations are not exploiting this market opportunity to the degree they should and will need to explore wider distribution and alternative business strategies to expand their market share.Debora Randall completed her Masters of Management at Massey University, in Auckland, New Zealand. She is currently using her interests in business and community development to work towards practical economic solutions to poverty. She is living in Vancouver, Canada where she is working on a number of community economic development initiatives.     

The organizational context for moral development: Questions of power and access

In this article it is argued that much research into processes of moral learning and development in organisations has been conducted under somewhat controlled conditions, and that these do not permit testing of individuals' thought and action under more extreme circumstances. Therefore in practice one needs to acknowledge the effect of the actual organisational context. Three aspects or issues concerning the effect of this context on interventions are identified: first, systemic factors, especially corporate culture, impact on individual behaviour; second, consultants and developers may have difficulty when working with people at different levels of moral development; and, third, differential influence among members of an organisation affects the possibility of, and the enactment of, moral development programmes.Each of these considerations is discussed while employing conceptualisations based on Kohlberg's ideas. However the question of influence and power is not one which has been addressed to any significant extent by writers in this particular area. The essential argument in this article is that this must be done if the full potential of research into moral development in organisations is to be realised.Patrick Maclagan is Senior Lecturer and director of Research in the Department of Management Systems & Sciences, School of Management, University of Hull, U.K. His current research interests concern managerial behaviour and management learning with reference to ethics in organisations.     

Building on formal education: employers’ approaches to the training and development of new recruits in the People's Republic of China

Conceptions of modern management and of skill in China have developed out of quantitative, production oriented traditions that have tended to downplay the human side of management, training and development. Based on recent survey and case study research this paper argues that some organisations are moving away from such narrow definitions. These tend to be resource rich, larger enterprises, often in modern growth sectors and organisations exposed to foreign practice (either by virtue of foreign ownership or investment, or as a result of exposure to the pressures of global competition through operation in international markets). Skills shortages are faced by organisations throughout China. However, employers do not generally feel that the education system is serving to address these skills needs. The varying conceptions of modern management shape the manner in which organisations recruit from, and build, on formal education provision. Many resource rich employers are using formal education as a selection mechanism, selecting the educational elite and continuing to develop them. Those organisations that have limited access to highly qualified recruits are also least likely to be in a position to provide extensive or high quality training. Consequently the divide between resource rich and resource poor organisations, in terms of both organisational resources and employees’ opportunities for skill acquisition, learning and development, seems likely to widen.     

The changing role of governments in corporate social responsibility: drivers and responses

The aim of this article is to contribute to understanding the changing role of government in promoting corporate social responsibility (CSR). Over the last decade, governments have joined other stakeholders in assuming a relevant role as drivers of CSR, working together with intergovernmental organizations and recognizing that public policies are key in encouraging a greater sense of CSR. This paper focuses on the analysis of the new strategies adopted by governments in order to promote, and encourage businesses to adopt, CSR values and strategies. The research is based on the analysis of an explanatory framework, related to the development of a relational analytical framework, which tries to analyze the vision, values, strategies and roles adopted by governments, and the integration of new partnerships that governments establish in the CSR area with the private sector and social organizations. The research compares CSR initiatives and public policies in three European countries: Italy, Norway and the United Kingdom, and focuses on governmental drivers and responses. The preliminary results demonstrate that governments are incorporating a common statement and discourse on CSR, working in partnership with the private and social sectors. For governments, CSR implies the need to manage a complex set of relationships in order to develop a win–win situation between business and social organizations. However, the research also focuses on the differences between the three governments when applying CSR public policies. These divergences are based on the previous cultural and political framework, such as the welfare state typology, the organizational structures and the business and social and cultural background in each country.     

Technology- and marketing-transfer by tripartite cooperation

The following article is an excerpt from a study written by the authors on behalf of the UNCTAD¹. It is based on conversations with firms which are engaged or interested in tripartite cooperation and with various private and public organisations in the Federal Republic of Germany.