Research collaboration and behavioural additionality: A New Zealand case study

Generating the greatest benefit from public research programmes is a major aim for industry managers and policy administrators alike. However, how to measure whether benefit has occurred createsf a considerable dilemma for managers and policy-makers. One approach centres upon the concept of ‘additionality’ or ‘what difference the policy has made’. Traditional ‘input additionality’ measures of subsequent research and development activity, for example, neither incorporate all impacts nor give adequate signals about adequate signals about aspects of ‘output additionality’, such as the impact on increased competitiveness at the level of the firm, or national competitiveness, the ultimate goal for the majority of research policies. An intermediate form of impact, ‘behavioural additionality’, centred upon changes in a firm's subsequent managerial behaviour, is considered to provide an alternative, yet compelling perspective on the impact of public support on the conduct of research. This study outlines empirical eveidence found for the various forms of additionality in a New Zealand collaborative research programme. It discusses how managers and policy administrators can exploit the occrrence of behavioural additionality to maximize the impact of a research policy, on the basis that modified behaviour is likely to strengthen a policy' latent abilityto influence the creation of output additionality. In such circumstances, the study suggests that managers and policy-makers should be identifying those interventions that lead to sustained improvements in mangerial practice, and in competitiveness, and should be managing their diffusion within firms and throughout industries.     

Ethical Judgments: What Do We Know, Where Do We Go?

Investigations into ethical judgments generally seem fuzzy as to the relevant research domain. We first attempted to clarify the construct and determine domain parameters. This attempt required addressing difficulties associated with pinpointing relevant literature, most notably the varied nomenclature used to refer to ethical judgments (individual evaluations of actions’ ethicality). Given this variation in construct nomenclature and the difficulties it presented in identifying pertinent focal studies, we elected to focus on research that cited papers featuring prominent and often-used measures of ethical judgments (primarily, but not exclusively, the Multidimensional Ethics Scale). Our review of these studies indicated a preponderance of inferences and conclusions unwarranted by empirical evidence (likely attributable at least partly to inconsistent nomenclature). Moreover, ethical judgments related consistently to few respondent characteristics or any other variables, emergent relationships may not always be especially meaningful, and much research seems inclined to repetition of already verified findings. Although we concluded that knowledge about ethical judgments seems not to have advanced appreciably after decades of investigation, we suggested a possible path forward that focuses on the content of what is actually being judged as reflected in the myriad of vignettes used in the literature to elicit judgments.     

Perceptions of organizational context and job attitudes: The mediating effect of organizational identification

Informed by social exchange theory and social identity theory, we developed a conceptual model that examines the mediating role of organizational identification in the relationship between employees’ perceptions of organizational context and their job attitudes. In our model, the antecedents include perceived organizational support (POS), procedural justice, and perceived job insecurity. The outcome variables consist of affective organizational commitment, job satisfaction, and intentions to leave. Our respondents were 591 workers employed in three different firms in China. The results of regression analyses showed that employees’ job attitudes are affected by their perceptions of organizational context and organizational identification. Further, organizational identification was found to mediate the effects of POS on the outcome variables.     

Authoritarian Legacies in Post–New Order Indonesia: Evidence from a New Dataset

Democratisation has fundamentally changed the formal institutional structure of Indonesian politics, but a wealth of contemporary research has demonstrated that the informal mechanisms of power and influence have survived the transition. This article uses a unique, hand-collected dataset of information on Indonesian public figures to empirically catalogue the changes and continuities in Indonesian politics since democratisation. Our results provide quantitative evidence of a substantial shift in Indonesia’s political economy over the last decade and a half: the simultaneous rise of the private sector and decline of the military and the state as avenues to political influence at the national level. Our evidence also suggests that the origins of this shift pre-date democratisation itself.     

Whom are you promoting? Positive voluntary public disclosures and executive turnover

Research summary: This paper uses signaling theory to bring together two complementary research streams that have largely ignored each other: strategic human resource management and media relations management. We argue that when publicly traded firms voluntarily and publicly disclose positive information about their value creation and appropriation activities, they also send positive signals to managerial labor markets regarding executives' capabilities. Accordingly, we hypothesize a positive association between public disclosures and voluntary executive turnover. An analysis of pharmaceutical and communications equipment firms from 1990 to 2004 supports this prediction, underscoring the need to understand better the effects of voluntary public disclosures on a firm's ability to protect its human capital. More generally, our results highlight the importance of considering the impact of a single signal on multiple receivers. Managerial summary: Given the organizational benefits of positive media coverage, the considerable effort that firms put into managing their image in the media is not surprising. We argue and show, however, that when a firm enhances its public image it also improves its executives' positions in the managerial labor market and, by so doing, increases their likelihood of voluntarily leaving the firm. In particular, we find that corporate press releases, an important mechanism for managing information released in the public domain to signal a firm's competitive advantages, may result in unintentional loss of senior management talent. This trade‐off suggests that firms should increase coordination between their strategy, human resources, and corporate communications/investor relations departments to ensure that they collectively weigh the benefits and costs of publicly disclosing value‐relevant information. Copyright © 2015 John Wiley & Sons, Ltd.     

Market frictions and the competitive advantage of internal labor markets

Research summary : We show that frictions in labor and capital markets can be a source of competitive advantage for affiliates of corporate groups over stand‐alone firms in environments where benefits from internal markets' flexibility are high. We argue that the advantage of flexibility in changing labor inputs is related to how difficult it is to change capital inputs. We predict that if substituting labor with capital is difficult, the group advantage of flexibly changing labor would be stronger in countries with high levels of financial development. Consistent with this prediction, we find a stronger competitive advantage for group affiliates in countries with rigid labor markets but flexible capital markets. In these environments, group affiliates are more prevalent and outperform stand‐alone firms in terms of growth and profitability. Managerial summary : This research shows that the capacity to redeploy workers across internal units of the firm can be a source of competitive advantage in countries that impose strict employment protection laws. We show that the strategic advantage of labor flexibility is affected by how difficult it is to change capital inputs and that labor flexibility is a stronger source of competitive advantage in countries where developed financial markets allow for more flexible capital adjustment. In these settings, strategies designed to lower costs of internal mobility (e.g., locations of greater geographic concentration between units and in regions with less competitive external markets), development of corporate culture supportive of frequent change, and personnel development through internal rotation can result in substantial financial payoffs. Copyright © 2015 John Wiley & Sons, Ltd.     

Married to the firm? A large‐scale investigation of the social context of ownership

Research summary : Using a large sample of private firms across Europe, we examine how the social context of owners affects firm strategy and performance. Drawing on embeddedness theory and the institutional logics perspective, we argue that embeddedness in a family, in particular the nuclear family, can strengthen identification and commitment to the firm, but can also induce owners to behave more conservatively. Consistent with this argument, we find that family‐owned firms have higher profit margins, returns on assets, and survival rates compared to single‐owner or unrelated‐owners' firms, but also invest and grow more slowly, hold greater reserves of cash, and rely less on external debt. These differences are most pronounced when the two largest shareholders are married. Our results highlight the key role of marital ties in explaining differences in behavior and performance among firms. Managerial summary : Despite the prevalence of the married‐couple ownership structure in firms, little research has been dedicated to understanding how these firms are managed and perform. We examine the behavior and performance of firms owned by married couples in a large panel of closely held Western European firms. We find that married‐owner family firms are managed more conservatively relative to firms with unrelated owners and even to other family‐owned firms. In particular, married‐owner family firms invest and grow more slowly and rely less on external finance. However, they also exhibit greater performance stability and higher profitability. Our findings suggest that social relationships among owners have a large impact on firm strategy and performance, and highlight some potential trade‐offs to performance when married couples control firms. Copyright © 2015 John Wiley & Sons, Ltd.     

State contract law and the use of accounting information in debt contracts

Review of Accounting Studies - This paper examines the relation between state contract law and the use of accounting information in debt contracts. Contract theory suggests that balance sheet based...     

Network position and identity: A language-based perspective on strategizing

This article explores processes of strategizing within business networks by showing how managers employ sensemaking to cope with network paradoxes. It takes the linguistic turn to analyze how participants discursively construct their organizations' identities and positions within a ‘designed’ network context. In doing so, the paper attempts to answer the research question posed so provocatively over a decade ago by Håkansson and Ford (2002): by exploring how companies interact in business networks. Our contribution is to show how firms interact by taking a language-based perspective on strategy to help understand the links between network, organizational and micro-levels of social construction. An in-depth discussion of a case study is presented, with particular emphasis on the identity-constructing processes affecting (and affected by) the positioning and strategizing of various network actors. We conclude by reflecting on the theoretical and practical contributions of our analysis, the latter focusing on tensions in Indigenous business development.     

Innovation network trajectories and changes in resource bundles

This paper reports on an investigation into how changes in network resource bundles influence the success of innovation networks and how they change trajectories over time. Innovation networks are complex adaptive systems, and this paper uses a fuzzy set theory simulation methodological approach to capture complexity. The findings indicate that the interdependencies between knowledge variables and financial resources are the greatest contributor to high performing innovation networks, whereas the loss of social capital and its interdependency with the environment are the largest contributors to declines in innovation network performance. The paper suggests a more nuanced role for social capital within innovation networks and, importantly, highlights the sequencing of knowledge contributions, which take low performing innovation networks to high performing innovation networks.