The adoption of international best practices in a Western culture: East meets West

Contemporary organizations facing changing economic and strategic realities have considered many models of organizational performance, in particular those based on ‘actices’odels of best practice have emanated from the USA, some European countries and Japan; however, the question remains –ternational best practices be transferred to Australia or elsewhere? Since companies in Japan, in particular, have been seen as harbingers of these best practices, we compare the level of adoption in Japanese and non-Japanese companies in three Australian industries. Differences between Japanese and non-Japanese companies were more apparent in the automotive industry with only a few differences found for the information and tourism industries. The main differences between the two ownership categories were in areas of unionization and management–elations, that is, areas that may be influenced more by institutional arrangements than by cultural differences. Perhaps the most interesting finding from the comparative research was that there were relatively few differences between the Japanese and non-Japanese companies. These characteristics include: organizational structure, labour turnover, teams as part of the organizational structure, levels of training, use of ringi-style decision making, security of employment, employee welfare schemes, the use of and success with performance appraisal and performance-related pay, and a wide range of quality systems. The key pillars of Japanese management are not being transferred, and we cannot expect to see identical arrangements regarding other management practices. But the differences between Japan and western countries such as Australia are very gradually declining.     

Managerial and organizational learning in Hungarian–Western mixed management organizations

The radical changes in Eastern Europe which aim to transform these economies into market economies put the issue of organizational and individual adaptation at the centre of attention. Hungarian-Western mixed management organizations are regarded as effective tools for helping this adaptation process. This paper examines, through the example of five joint ventures, what practices are to be changed and what problems arise in terms of organizational and individual adaptation and learning. For the theoretical framework, the author draws together the insights of four types of learning approaches with structural contingency theory, strategy-structure and strategic choice theories, institutional theory of organizations and organizational change theories. The paper finds that there are changes in the organizational routines and procedures as a response to changes in the contingent factors. Westerners do not, however, necessarily play a positive role as agents of change in introducing strategic thinking among Hungarian managers. This problem relates to the phenomenon of new paternalism which also makes it easier for Westerners to cope with the problems of not being able to change the old philosophies of their Hungarian staff.     

International best practice,quality management anf high performance: inferences from the Australian automotive sector

The adoption of international ‘best practice’ (IBP) has been presented widely as a strategy for organizations to improve productivity and competitiveness. The most prominent best practices include total quality management, continuous improvement programmes and just-in-time (JIT) production. Two key measures of competitiveness are quality and efficiency, and we examine those IBPs that lead to high levels of quality and efficiency in the Australian automotive industry. Our findings are based on a survey of the Australian automotive industry, and they suggest that the successful implementation of JIT and continuous improvement programmes can influence efficiency; this corresponds with recent discussions of IBP. However, our analyses also indicate that certain areas of human resource management, such as performance appraisals, performance-related pay, welfare schemes and testing during selection, can have an important influence on efficiency and quality and should also be considered as important forms of best practice.     

MNC practice transfer: institutional theory,strategic opportunities and subsidiary HR configuration

Human resource (HR) practice transfer is an important topic in the domain of strategic international human resource management (SIHRM). Previous research in practice transfer has emphasized the challenges arising from the institutional distance between the home and host countries. However, potential opportunities due to this distance have been largely overlooked. Shifting the focus away from looking at institutional distance as a constraint, we examine the possibilities of strategic opportunities that exist because of institutional distance. We argue multinational corporation (MNC) subsidiaries can exploit these opportunities to gain competitive advantage. Building upon SIHRM literature, institutional theory and the resource-based views, we propose a conceptual framework explaining how institutional environments present strategic opportunities. We argue that these strategic opportunities are most abundant in the case of moderate institutional distance between the two countries. Building upon the conceptualization of strategic opportunities, we propose a model of subsidiary HR configuration, and then we explain how an HR configuration could be a source of competitive advantage. Further, we examine the role of MNCs' overall SIHRM orientation in relation to the identification and exploitation of strategic opportunities.     

Kantian dignity and social economics

Many social economists endorse the ethics of Immanuel Kant, specifically his emphasis on the dignity of humanity and the equal respect due all persons. Based on these tenets, Kant mandates a social outlook in which concern for others, characterized by negative duties of respect and positive duties of beneficence, are broadly required of all rational agents. However, some of the positions that social economists derive from Kantian dignity actually violate it, such as support for a welfare state and opposition to the institution of wage employment. I will show that both of these positions are inconsistent with the traditional understanding of Kantian dignity, suggesting that social economists should either ground their positions on a different concept of dignity, or revise them to remain consistent with Kant's specific sense of dignity. For helpful comments and criticism I thank John Davis, Charles Wilber, David Ellerman, and the rest of the participants in the “Economic Philosophy and Theories of Justice” session at the 2003 meetings of the Association for Social Economics, as well as two anonymous referees. All remaining errors are my own.     

Nonlinear Mean-Reversion in Real Exchange Rates: Toward a Solution To the Purchasing Power Parity Puzzles

We fit nonlinearly mean-reverting models to real dollar exchange rates over the post-Bretton Woods period, consistent with a theoretical literature on transactions costs in international arbitrage. The half lives of real exchange rate shocks, calculated through Monte Carlo integration, imply faster adjustment speeds than hitherto recorded. Monte Carlo simulations reconcile our results with the large empirical literature on unit roots in real exchange rates by showing that when the real exchange rate is nonlinearly mean reverting, standard univariate unit root tests have low power, while multivariate tests have much higher power to reject a false null hypothesis.