Microeconomic foundations of corporate strategy

This paper examines several approaches to corporate strategic planning in the context of their relationship to the microeconomic theory of the firm, and discusses the implications of that theory for corporate strategy in general. Specifically, three types of analytical tools are discussed: (1) analytical portfolio models; (2) business simulation models; and (3) optimization models. Examples of how the three types of tools are used in corporate decision-making are given, and certain limitations are cited. The limitations include, for example, the inability of some of the models to deal with interdependencies across business units in production resources or output demand. Finally, the paper examines the approach to strategic planning known as the ‘strategy matrix’, which explicitly allows for interdependices across business units. The use of the strategy matrix by a major petroleum company is discussed in some detail.     

Institutions,banking structure and the cost of debt: new international evidence

This paper analyses the effect of institutions and the structure of the banking system on the cost of debt for a sample of firms from 37 countries. The cost of debt decreases with the rule of law, the protection of creditors’ rights and the weight of banks in the economy. Bank financing and bank concentration have a positive differential effect on the cost of debt in those countries where the financial difficulties of banks are greater. Legal enforcement, the protection of creditors’ rights and the weight of bank financing have a greater influence in countries with a lower degree of economic development.     

Telework and the Information Age

This article provides a critical analysis of the information age literature, explores its attractions for management and assesses evidence of the impact of the information age on the UK. It finds that material changes to work organisations and employment relationships frequently contrast with the optimistic predictions contained in much of the writing.     

Mutual expectations: a study of the three-way relationship between employment agencies,their client organisations and white-collar agency ‘temps’

This paper examines the mutual expectations of employment agencies, the temporary workers who are placed by them and the client or host companies with whom they are placed. It considers the ambiguities and complexities inherent in the psychological contracts of agency temps, pointing to positive dimensions of the agency relationship with temps coupled with a tough transactional regime. In periods of uncertainty agency temping provided individuals with an illusion of freedom and control.     

Pricing Weather Insurance with a Random Strike Price: The Ontario Ice-Wine Harvest

Weather insurance within the agricultural sector has been limited by the difficulty in defining the appropriate weather event and in pricing the product. We develop a new pricing method for weather insurance under situations where returns depend not only on the occurrence of the weather event, but also its timing. The method is used to price weather insurance for ice wine. Because the harvest quantity of grapes for ice wine degrades over time, the strike value on the weather event measured as harvestable hours is random. We develop a Monte Carlo method to estimate the premium.     

No news is good news? Evaluating new pay systems

The evaluation of the impact of changes in reward systems is a common recommendation in the personnel practitioner literature, but little has been written about how and to what extent practitioners themselves evaluate. This article therefore focuses on the activities of HR managers who have introduced new pay systems, not on academic studies of reward system change. Face‐to‐face interviews were conducted in 15 large, unionised organisations in England between 2000 and 2002. The study found that little formal evaluation of changes in pay and grading systems had been carried out and that managers expressed considerable scepticism about the evaluation process. They relied heavily on informal or anecdotal feedback, and appeared to have little psychological incentive to evaluate. The article suggests explanations for this lack of formal evaluation, drawing on the management decision‐making literature, and recommends how changes in reward systems should be evaluated.     

Selection of Socially Responsible Portfolios Using Hedonic Prices

This paper presents a novel framework for selecting socially responsible investment (SRI) portfolios. The Hedonic Price Method (HPM) is applied to obtain an evaluation of SRI criteria that is integrated into a multi-objective mathematical programming model. The HPM breaks away from the traditional view that goods are the direct object of utility; on the contrary, it assumes that utility is derived from the properties or characteristics of the goods themselves. As far as the investment decision is concerned, we assume that socially responsible investmentmutual funds (SRI funds) constitute heterogeneous goods. Our approach allows us to obtain a portfolio, the financial performance of which is similar to that which the investor would have reached if he or she had not taken into account social, ethical, and environmental considerations when making his or her investment decisions. This is achieved by designing a two-stage multi-objective mathematical programming procedure. In the first stage, we achieve the maximum level of financial satisfaction that the investor can receive. In the second stage, the portfolio with the best financial–social behavior is built. For the purpose of this second stage, the first stage portfolio is used as a benchmark for the financial performance of a socially responsible portfolio. To apply this methodology, we use portfolios composed of socially responsible and conventional mutual funds domiciled in Spain.     

Mixed methods research in service-learning: an integrative systematic review

Quality & Quantity - In view of the challenges involved in designing a study of Mixed Methods (MM), as well as the problematics inherent in studying Service-Learning (S-L) from new research...