Bridging knowledge in ambidextrous HRM systems: empirical evidence from hidden champions

Managing the tension between efficiency and flexibility is one of the core challenges that organizations must tackle in order to survive in the global competitive environment. Ambidexterity has been identified in the literature as a key way of managing this tension. Despite the enormous popularity of the concept of ambidexterity, the questions of how HR practices influence exploration and exploitation and support organizational ambidexterity remain underexplored. Drawing on our empirical case studies of three mid-sized ‘hidden champions’ in different high-tech manufacturing industries, we show how an ambidextrous human resource management (HRM) system works. We demonstrate that ambidextrous HRM systems can be regarded as a special type of high-performance work system (HPWS) that facilitates the continuous integration of exploration and exploitation in the pursuit of flexibility and efficiency. In particular, we elucidate how firms apply integrative employment practices and integrative work practices to facilitate collaboration and to create and strengthen a common frame of reference that fosters knowledge integration. Finally, setting up an ambidextrous HRM system supports the complementary interplay between a common frame of reference and a firm's ability to integrate knowledge in order to manage the conflicting demands of exploration and exploitation.     

Testing rebalancing strategies for stock-bond portfolios across different asset allocations

We compare the risk-adjusted performance of stock–bond portfolios between rebalancing and buy-and-hold across different asset allocations by reporting statistical significance levels. Our investigation is based on a 30-year dataset and incorporates the financial markets of the United States, the United Kingdom and Germany. To draw useful recommendations to investment management, we implement a history-based simulation approach which enables us to mimic realistic market conditions. Even if the portfolio weight of stocks is very low, our empirical results show that a frequent rebalancing significantly enhances risk-adjusted portfolio performance for all analysed countries and all risk-adjusted performance measures.     

Institutional framework and capital structure of microfinance institutions

This article addresses the question of whether institutional frameworks matter in the capital structure of microfinance institutions. We studied a sample of 292 MFIs between 2004 and 2009. Our findings suggest that creditor rights, a country's legal tradition, and the level of financial sector development are significantly related to MFIs' level of external finance. Furthermore, the positive relationship between banking sector development and borrowings enables us to conclude that the microfinance sector and the formal banking sector are complementary. In addition, a split sample technique is used in order to assess the external validity of the model. Findings from this cross-validation strengthen the results obtained from the whole sample and indicate that our model seems to predict well the effect of institutional variables on the capital structure of MFIs.     

Determinants of foreign direct investment: empirical evidence from EU accession candidates

This study examines bilateral foreign direct investments (FDI) between the members of the European Union and eight central and east European candidate (CEEC) economies in transition, awaiting accession into the European Union (EU). Cross-section data were obtained for Bulgaria, Czech Republic, Estonia, Hungary, Poland, Romania, Slovak Republic, and Slovenia for 1997. Once the main characteristics of FDI recipient and donor nations are identified in a bilateral framework, it will be feasible to predict future FDI inflows. This study reveals that the key determinants of FDI inflows in CEECs are size of the host economy, host country risk, labour costs in host country, and openness to trade. Countries that are receiving fewer foreign investments could make themselves more attractive to potential donor nations by focusing on some of the key determinants identified by this study.