Exploring the power dimensions of the human resource function

While a large body of literature has investigated the content of human resource management (HRM) practices, this research explores the process through which the HRM function impacts on organisational performance. Specifically, the research explores the reasons for the success or failure of HRM initiatives that have been associated with organisational outcomes and classifies the reasons as dimensions of HRM power. Based on 26 interviews conducted in Australia with senior HRM executives, top management team (TMT) executives and two management consultants, we found that, in order to contribute to organisational performance, HRM professionals can effectively utilise three dimensions of power, namely power of resources, power of processes and power of meaning. The findings offer new insights to the relationship between dimensions of HRM power and organisational performance.     

Does international openness affect the productivity of local firms?

This paper examines how international openness can change firm productivity in south‐eastern Europe (SEE), a crucial question for middle‐income countries. Using firm‐level data for six transition economies over the 1995–2002 period, we identify whether foreign ownership and propensity to trade with more advanced countries can bring about higher learning effects. We find that: (i) foreign ownership has helped restructure and enhance the productivity of local firms in four out of six countries; (ii) exporting to advanced markets has a larger impact on productivity growth in four countries, especially when the firm's absorptive capacity is taken into account; (iii) in contrast, exporting to the less competitive markets of the former Yugoslavia seems to negatively affect productivity growth in three countries; and (iv) learning effects from importing are similar to those from exporting. Our results suggest that trade liberalization is not uniformly beneficial. Regional composition of trade flows and absorptive capacity of local firms matter. Thus, trade liberalization within the SEE region may not provide a substitute for a general trade liberalization which includes access to the more competitive markets of countries belonging to the Organization for Economic Co‐operation and Development.     

The effect of information on the bidding and survival of entrants in procurement auctions

In government procurement auctions of construction contracts, entrants are typically less informed and bid more aggressively than incumbent firms. This bidding behavior makes them more susceptible to losses affecting their prospect of survival. In April of 2000, the Oklahoma Department of Transportation started releasing the internal cost estimates to complete highway construction projects. Using newly developed quantile regression approaches, this paper examines the impact of the policy change on aggressive entrants. First, we find that the information release eliminates the bidding differential between entrants and incumbents attributed to informational asymmetries. Second, we argue that the policy change affects the prospects of survival of entrants in the market. We find that those who used to exit the market relatively soon are now staying 37% longer, while at the median level bidding duration increased by roughly 68%. The policy has the potential to encourage entry in government procurement auctions and thus increase competition.     

Measuring the Market Power of the Portuguese Milk Industry

This paper is based on the previous work of Appelbaum (Journal of Econometrics, 1979, 9, pp. 283-94; 1982, 19, pp. 287-99). Iwata (Econometrics 1974, 42, pp. 947-66) and Rogers (PhD Dissertation, GeorgeWashington University, 1983).We estimate the degree of market power of an oligopolistic industry, using a linear system and the 2SLS estimation method. Our departure point is the work of Appelbaum (1982) where a 'market power index' is estimated for each of the sample's 25 years. As the market power index depends functionally on the conjectural elasticity, the goal is to obtain annual estimates for that elasticity. For this purpose, Appelbaum defines a non-linear simultaneous-equation system and obtains, with non-linear methods, the conjectural elasticity estimates for each year of the sample. Considering the conjectural elasticity's functional form that Appelbaum adopts, we use a different approach and obtain a linear system that is easier to estimate. Due to the particular features of the industry analysed, we also derive a much simpler form for the equations involved. The model's simplicity is appealing and its generalisation to other industries with homogeneous products may be implemented with ease.     

Holism versus Reductionism in Modern Social Science Research

Quality &; Quantity - Since an early stage in most of thetechnical sciences, and during the last fewdecades in many of the social sciences,reductionistic research has become a mainstream typeof...     

Intentions to Return of Clandestine Migrants: The Perverse Effect of Illegality on Skills

In this paper we show that highly skilled clandestine migrants are more likely to return home than migrants with low or no skills when illegality causes "skill waste", i.e. when illegality reduces the rate of return of individual capabilities (i.e. skills and human capital) in the country of destination. In a simple life-cycle framework, illegality is modeled as a tax on skills that reduces the opportunity cost of returning home particularly for the highly skilled. This proposition is tested on a sample of apprehended immigrants that unlawfully crossed the Italian borders in 2003. The estimation confirms that the intention to return to the home country is more likely for highly skilled illegal immigrants. The empirical results of this paper attenuate the common wisdom on the return decisions of legal migrants, according to which low-skill individuals are more likely to go back home (mainly because of negative self-selection).     

Testable implications of general equilibrium models: An integer programming approach

Focusing on the testable revealed preference restrictions on the equilibrium manifold, we show that the rationalizability problem is NP-complete. Subsequently, we present a mixed integer programming (MIP) approach to characterize the testable implications of general equilibrium models. Attractively, this MIP approach naturally applies to settings with any number of observations and any number of agents. This is in contrast with existing approaches in the literature. We also demonstrate the versatility of our MIP approach in terms of dealing with alternative types of assignable information. Finally, we illustrate our methodology on a data set drawn from the US economy. In this application, an important focus is on the discriminatory power of the rationalizability tests under study.     

Dynamics of Customer Response to Promotional and Relational Direct Mailings from an Apparel Retailer: The Moderating Role of Relationship Strength

Although direct mails have traditionally been used to sell a product or service, they can also be effective in enhancing retailer-customer relationships. This study examines how customers respond to ‘promotional’ (‘call to action’) and ‘relational’ (‘retailer-image enhancement’) direct mailings. The study develops a model that includes: (i) the dynamic effects of both types of direct mailings over time; and (ii) the moderating role of strength of the relationship that a customer enjoys with the retailer. Past purchase behavior is also considered. The model is then used in a study of customers of a Belgian apparel retailer. The results show that relational mailings positively affect customer response, irrespective of when they are sent. In contrast, the effects of promotional mailings are less clear-cut: although they work well in the short term, their effects can vary in the longer term. In addition, the study finds that a direct-mailing strategy should be planned in accordance with the strength of the relationship between the retailer and the target customers. The results of the study provide valuable insights for retailers in optimizing the effectiveness of their direct-mail initiatives.