book reviews

WOMEN FOR HIRE, A STUDY OF THE FEMALE OFFICE WORKER London School of Economics and Political Science A HANDBOOK OF INDUSTRIAL RELATIONS PRACTICE Personnel Director British Aluminium VOTES, VIRTUES AND VICES: TRADE UNION POWER THE TROJAN HORSE: UNION POWER IN BRITISH POLITICS School of Industrial & Business Studies University of Warwick WHITE COLLAR UNIONISM: THE REBELLIOUS SALARIAT Manchester Business School THE INTERNATIONAL YEARBOOK OF ORGANIZATION STUDIES Centre for European Industrial Studies University of Bath     

The dynamics of US bank profitability

We examine the determinants of profitability for a large sample of US banks over the period 1984–2010. Specifically, we assess the extent to which short-run profits persist, and whether such persistence is affected by changes in regulation and the recent financial crisis. Our findings suggest that the competitive process reduces positions of abnormal profitability, albeit this is not immediate. There is also evidence that changes in regulation enacted during the 1990s affected both the level and persistence of bank profitability. The financial crisis of 2007–2010 appears to have resulted in an increase in the persistence of bank profitability.     

Sustainable clothing: challenges,barriers and interventions for encouraging more sustainable consumer behaviour

Research with consumers has revealed limited awareness of the sustainability impact of clothing (Goworek et al., 2012). Semi‐structured interviews conducted with a range of experts in sustainable clothing to increase understanding of the challenges for sustainable clothing revealed that a focus on sustainability alone will not drive the necessary changes in consumers’ clothing purchase, care and disposal behaviour for three reasons: (i) clothing sustainability is too complex; (ii) consumers are too diverse in their ethical concerns and (iii) clothing is not an altruistic purchase. The findings identify the challenges that need to be addressed and the associated barriers for sustainable clothing. Interventions targeting consumers, suppliers, buyers and retailers are proposed that encourage more sustainable clothing production, purchase, care and disposal behaviour. These interventions range from normalizing the design of sustainable clothing and increasing the ease of purchase, to shifting clothes washing norms and increasing upcycling, recycling and repair.     

Horizontal Integration Between Brand and Generic Firms in the Pharmaceutical Industry

This paper asserts that brand pharmaceutical firms (those mostly involved in the invention and production of new drugs) engage in a set of complementary activities that are different from those of generic pharmaceutical firms (those that primarily make off-patent medicines). Complementarities of the Milgrom-Roberts variety within, but not across, these two kinds of firms make it more efficient for pharmaceutical firms to specialize in either brand or generic production. Using FDA data, I show that this is indeed the case. I then examine the firms that produce both types of drugs to see if there are market-level strategic synergies between brand and generic products. I find generic entrants that belong to a corporation that owns the brand in the market are (1) not more likely to enter, (2) not more likely to be approved faster, and (3) not more likely to deter other generics from entering. Thus the advantage, or synergy, from mixing brand and generic activities in one corporation must arise elsewhere in the operations of the firm. If not, the integrated pharmaceutical firm is not the most efficient organizational form for the production of ethical drugs.     

Circular business models in high value manufacturing: Five industry cases to bridge theory and practice

The transition to a circular economy (CE) requires companies to evaluate their resource flows, supply chains, and business models and to question the ways in which value is created. In the high value manufacturing (HVM) sector, this evaluation is critical, as HVM enables value in nonconventional forms, beyond profit, including unique production processes, brand recognition, rapid delivery times, and highly customized services. We investigate the role of value, cost, and other factors of influence in the selection of a circular business model (CBM) for HVM. Explored through five case studies using a qualitative evaluation of circularity, we then contribute to the emerging field of CBMs by modifying the CBM canvas that can capture the nontraditional value, traditional value, cost, and other influencing factors enabled via CBM adoption in HVM. Finally, the important role of digital technologies for incentivizing and enabling CBM adoption, is clarified.     

Equality and diversity in the public services: moving forward on lesbian,gay and bisexual equality?

A key change for lesbian, gay and bisexual (LGB) people in the European Union has been the prohibition by the Employment Equality Directive (2000) of discrimination in employment on grounds of sexual orientation. This article focuses on the UK, which in 2003 introduced legislation making it unlawful to discriminate on these grounds. It explores the factors encouraging ‘good practice’ in sexual orientation equality work. It considers progress within the public services that have ‘pioneered’ sexual orientation equalities work, drawing on the views of LGB employees, management and trade union stakeholders. The recent legislation is considered to have provided a major impetus for change; however, an emerging ‘business case’ within the public service modernisation agenda is considered to have provided both opportunities and barriers to progress. A challenge for HR practitioners is getting organisational commitment to sexual orientation work, which is still perceived within organisations as a ‘sensitive’ area.     

On the export-led growth hypothesis for the little dragons: An empirical reinvestigation

The export-led growth hypothesis is tested using quarterly time series data for Hong Kong, Korea, and Taiwan and by constructing a vector autoregression (VAR) model. The Granger no-causality procedure developed by Toda and Yamamoto [1995] was applied to test the causal link between real export growth and real industrial output growth. Three distinct features in this paper stand out against earlier studies on the Little Dragon countries of Asia. First, going beyond the traditional two-variable relationship, a VAR model is built in the production function context to avoid a possible specification bias. Second, Riezman et al. [1996] are followed to test the export-led growth hypothesis while controlling for the growth of imports to avoid producing a spurious causality result. Third, the sensitivity of causality test results under different lag structures is tested along with the choice of optimal lags. In particular, the methodology developed by Toda and Yamamoto is expected to improve the standard F-statistics in the causality test process. The principal result from this research cannot offer support for the export-led growth hypothesis.