Financial performance and the long‐term link with HR practices,work climate and job stress

Using data front a large financial services organisation in the Netherlands, this article reports a longitudinal study at the business unit level. The study addresses the question of which longitudinal relations exist between survey data on perceived HR practices, work climate and job stress on the one hand, and prospective and retrospective financial performance on the other. Data from 223 business units were available for this study. Eight scales were selected from an employee survey answered by 18,142 respondents. These were aggregated to mean scores at the business unit level. Financial performance is operationalised by a yearly profits‐to‐costs ratio. Correcting for employee and business unit characteristics, the eight survey scales predict 22 per cent of the variance in business unit financial performance in the year after the survey.‘Co‐operation between departments’ appears to be the most important predictor. Equally strong evidence was friund for a reverse causation sequence: business unit financial performance in the year before the survey was a significant predictor for four out of eight survey scales, especially for ‘co‐operation between departments’ and ‘job security’. The results underline the importance of studying variance in HR and performance variables within large organisatiuns, and the possibilities of using employee surveys in this research context. Limitations and implications of the findings are discussed.     

Can pure play internet banking survive the credit crisis?

This paper positions the pure-play internet banking model (PPI) as a hybrid business model that combines features of both relationship and transaction banking. Although in terms of customer orientation PPI banks may partly resemble relationship banks, they lack their comparative advantage in generating borrower-specific information. Instead, the characteristic features of PPI banks are low costs and easy scalability. While the latter may enable PPI banks to quickly capture market share, it may also generate overexposure in risky markets. We present a case study on ING Direct, one of the leading global PPI banks and address the sustainability of the PPI business model by comparing the ING Direct foreign operations. The findings for ING Direct are validated using data for E-Trade Bank. We conclude that managing growth appears to be the prime challenge to PPI banks.     

The role of strategic enterprise risk management and organizational flexibility in easing new regulatory compliance

The impact of new regulatory requirements for internal control reporting on an organization's ability to maintain strategic flexibility has been debated in the popular press extensively. This paper tests theory from strategic management to examine the relationship between an organizations' pre-regulatory strength of strategic enterprise risk management (ERM) processes and their ability to react to new regulatory mandates. In the context of companies' adoption of SOX Section 404 internal control reporting requirements, we examine organizations' pre-SOX ERM processes, ERM supporting technologies, and organizational flexibility in order to better understand the antecedents to the difficulty encountered in meeting SOX 404 requirements. Using responses from 113 Chief Audit Executives (CAEs), we find that organizations with stronger strategic ERM processes and flexible organizational structures already in place incurred little difficulty in implementing SOX 404 mandates. On the other hand, organizations using weaker ERM processes, which focused on control compliance, experienced more difficulty. These findings provide key insights into the importance of strategic ERM in effectively complying with new regulatory controls in volatile environments.     

Exploring governance of the new European Banking Authority—A case for harmonization?

In the context of the proposed EU financial supervisory reforms, this paper focuses on the governance of the network of national supervisory banking agencies and the newly established Community supervisor (European Banking Authority, EBA). We assess to what extent lack of governance convergence nationally and with EBA could undermine the incentives for cooperation among supervisors. Convergence should particularly focus on (i) the issue of the presence of politicians on decision-making bodies; (ii) the need for clearly defining dismissal procedures of heads of supervision; (iii) autonomy from government in regulatory matters; (iv) supervisory autonomy in matters of licensing and withdrawing licenses; (iv) mechanisms for judicial accountability; (v) legal protection for supervisors handling in good faith. In the absence of full centralization of prudential supervision, early harmonization of national governance arrangements towards best practice would better align supervisors’ incentive structures and, hence, be beneficial for the effectiveness of European supervision.     

Supply network capacity planning for semiconductor manufacturing with uncertain demand and correlation in demand considerations

A semiconductor supply network involves many expensive steps, which have to be executed to serve global markets. The complexity of global capacity planning combined with the large capital expenditures to increase factory capacity makes it important to incorporate optimization methodologies for cost reduction and long-term planning. The typical view of a semiconductor supply network consists of layers for wafer fab, sort, assembly, test and demand centers. We present a two-stage stochastic integer-programming formulation to model a semiconductor supply network. The model makes strategic capacity decisions, (i.e., build factories or outsource) while accounting for the uncertainties in demand for multiple products. We use the model not only to analyze how variability in demand affects the make/buy decisions but also to investigate how the correlation between demands of different products affects these strategic decisions. Finally, we demonstrate the value of incorporating demand uncertainty into a decision-making scheme.     

Teaching and learning the nature of technical artifacts

Artifacts are probably our most obvious everyday encounter with technology. Therefore, a good understanding of the nature of technical artifacts is a relevant part of technological literacy. In this article we draw from the philosophy of technology to develop a conceptualization of technical artifacts that can be used for educational purposes. Furthermore we report a small exploratory empirical study to see to what extent teachers’ intuitive ideas about artifacts match with the way philosophers write about the nature of artifacts. Finally, we suggest a teaching and learning strategy for improving (student) teachers’ concepts of technical artifacts through practical activities.     

Getting closer to whales—passenger expectations and experiences, and the management of swim with dwarf minke whale interactions in the Great Barrier Reef

Whale-watching tourism is a growth industry worldwide. In Australia, with whale-watchers approaching one million per annum there has been considerable effort to develop management regimes that protect the whales while enabling the development of a sustainable ecotourism industry. A mixture of National and State laws and regulations have governed the industry (Tourism based on free-ranging marine wildlife: opportunities and responsibilities, Wildlife Tourism Research Report No. 11, Status Assessment of Wildlife Tourism in Australia Series, CRC for Sustainable Tourism, Gold Coast, Queensland) but these have been mainly derived from experiences with humpback (Megaptera novaeangliae) whale watching from vessels at sea. In this article we describe the development and nature of new and rapidly growing swim-with-whales operations based on the dwarf minke whales (Balaenoptera acutorostrata) in the Great Barrier Reef of northern Queensland. The distinctly different quality of these operations raise interesting questions for long-term management (Towards sustainable management of the developing dwarf minke whale tourism industry in northern Queensland, CRC Reef Research Technical Report 27, James Cook University of North Queensland, 30pp (emended version of SC/50/WW1)).In the 1999–2000 seasons, 453 passengers (88.1% of respondents) swam with minke whales. Only 25% of visitors came specifically for the whale interactions and 43% learned of the whales on board the vessel. Passengers thus had low expectations about whales and encounters. A variety of factors, including the diving experience, particular dive sites, a range of wildlife species and socializing contributed to visitor satisfaction. Nonetheless, there was a significant correlation between visitor satisfaction and closeness of approaches by the whales, total number of whales seen and total time spent with whales. We discuss the key issues associated with swim-with-whales programs in the light of our findings. The cooperative engagement of tourism operators, researchers and government management agencies is a feature of this new industry.