Empirical studies of entry and exit: A survey of the evidence

Over 70 empirical studies of entry and exit patterns covering eleven different countries generally support the expectation that entry is more frequent in more profitable, rapidly growing industries, and slower where the absolute costs of capital required to build a minimum efficient scale plant are imposing. Scale economies, excess capacity, and limit pricing receive little empirical support as entry impediments. The evidence concerning the effects of advertising and R&D intensity is confusing.Exit is faster where profits are lower, and slower where durable specific (sunk) capital costs are more important. Exit and entry are strongly correlated, probably due to displacement (of incumbents by more efficient entrants) and vacuum effects (in which entrants are enticed by the prospects of selling to uncommitted customers abandoned by a recent exit).     

A ‘PARTNERSHIP’ ROUTE TO HUMAN RESOURCE MANAGEMENT?*

Collaborative relationships between firms have been growing in importance, including ‘partnerships’ between customers and suppliers. Institutional economists and sociologists have different views on the origins, character and consequences of partnership, and the nature of this debate is outlined, as well as the implications for the reality of ‘partnership’ and its role in the diffusion of business practice. Against this background we use case study and survey evidence to explore the transition within the supply chain relationship, from a customer ‘demands’ model and hence to ‘supplier development’. Supplier development can be seen as an aid to risk reduction, particularly where it involves management control system development in the supply organization. The partnership implications for the human resource management (HRM) function are explored. Supply-side partners are likely to be involved increasingly with activities that will underpin the alliance (for example, training, cultural change and removal of industrial relations obstacles to change). These indirect effects may be supplemented by direct involvement by the HRM specialists in the customer organization, especially where partnership development places strong reliance on the human resource dimensions of the two organizations. Examples of this form of development are discussed. This evidence is assessed in terms of the different disciplinary approaches discussed at the outset. What emerges most strongly is that although ‘partnership’ is used to describe many inter-firm relationships, many of these are very unequal and are recognized to be so, but in other cases evolutionary steps can be taken to reduce the risks involved and lead to apparently equitable alliances. Within this risk reduction process, the role of human resources appears to be of varying importance.     

AN INVESTIGATION OF INDUSTRY AND FIRM STRUCTURAL CHARACTERISTICS IN CORPORATE TURNAROUNDS*

This article uses the structure/conduct/performance framework as an underpinning to investigate the attributes of turnaround firms. Turnaround is defined as a substantial improvement of the firms's return on assets relative to the average return of its industry. Industry and firm structural characteristics including concentration, industry growth, R&D, advertising, market share, size, diversification, capital intensity and margins are identified. The results of a series of univariate and multivariate tests run on a sample of turnaround and non-turnaround firms indicate that size, R&D, and an interaction between operating margin and advertising can be helpful in explaining some turnaround situations.     

The work of leadership

More and more companies today are facing adaptive challenges: changes in societies, markets, and technology around the globe are forcing them to clarify their values, develop new strategies, and learn new ways of operating. And the most important task for leaders in the face of such challenges is mobilizing people throughout the organization to do adaptive work. Yet for many senior executives, providing such leadership is difficult. Why? One reason is that they are accustomed to solving problems themselves. Another is that adaptive change is distressing for the people going through it. They need to take on new roles, relationships, values, and approaches to work. Many employees are ambivalent about the sacrifices required of them and look to senior executives to take problems off their shoulders. But both sets of expectations have to be unlearned. Rather than providing answers, leaders have to ask tough questions. Rather than protecting people from outside threats, leaders should let the pinch of reality stimulate them to adapt. Instead of orienting people to their current roles, leaders must disorient them so that new relationships can develop. Instead of quelling conflict, leaders should draw the issues out. Instead of maintaining norms, leaders must challenge "the way we do business" and help others distinguish immutable values from the historical practices that have become obsolete. The authors offer six principles for leading adaptive work: "getting on the balcony," identifying the adaptive challenge, regulating distress, maintaining disciplined attention, giving the work back to people, and protecting voices of leadership from below.     

A Time Series Analysis of Private College Closures and Mergers

This study examines and explains private four-yearcollege closures and mergers in the United Statesusing time series data at the national level for theperiod 1960 to 1994. The data imply that, exceptduring the 1970s, private colleges were much lesslikely to close than businesses in general.Furthermore, the data indicate that private collegemergers occur more often than casual empiricismsuggests. Multiple regression analysis of the exit andmerger decision reveals that private college closuresand mergers are more likely when the real tuition ratedeclines and real faculty salaries rise at privatecolleges. Both the closure and merger rates are foundto be highly responsive with respect to changes inprivate tuition and faculty salaries. The empiricalresults further indicate that religiously-affiliatedcolleges are less likely to close and merge thansecular institutions and that a larger student poolleads to less closing and merging of private four-yearcolleges.     

Young UK adults and the 5 A DAY campaign: perceived benefits and barriers of eating more fruits and vegetables

Although consuming adequate amounts of fruits and vegetables reduces the risk of developing chronic diseases, it is widely recognized that young adults' intakes are currently well below the Department of Health's recommended five portions a day, with men consuming even less than women. One approach in the UK has been to introduce health campaigns such as the 5 A DAY programme; however, little is currently known about how well their messages are understood amongst young adults. This study examined current knowledge of the 5 A DAY message in young adults, as well as the perceived benefits and remaining barriers towards consuming more fruits and vegetables. In total, four focus groups were conducted using male (n = 22) and female (n = 18) students at the University of Reading. Content analysis revealed that while participants were aware of the 5 A DAY recommendation, there was widespread confusion regarding the detail. In addition, men were less accepting of the message than women, reporting greater disbelief and a lack of motivation to increase intake. Finally, a range of barriers was reported by participants of both genders, despite the perceived beneficial effects for health and appearance. The results illustrate a considerable gap between awareness and knowledge of the 5 A DAY message, and underscore the challenge that changing behaviour in young adults represents. As well as stepping up education‐ and skill‐based health campaigns, more targeted gender specific interventions will be needed to achieve sustained increases in fruit and vegetable intake.