The effects of accelerated capital scrapping: one-off or ongoing?

It is commonly supposed that the effects of accelerated capital scrapping on labour productivity occur only at the time at which the capital equipment is scrapped. This paper shows that under plausible assumptions there is also an effect on productivity growth which is longer-lasting. The latter effect arises because scrapping opens up an investment gap which manifests itself as soon as output recovers from the recession that occasioned the accelerated scrapping. The increased amount of new and best-practice capital stock that is occasioned by the extra scrapping raises the growth of productivity for as long as the quality of the capital stock reflects the transitory effects of accelerated scrapping.     

Top Management Compositional Effects on Corporate Entrepreneurship: The Moderating Role of Perceived Technological Uncertainty

Because corporate entrepreneurship (CE) is central to firms' ability to compete, adapt, and perform in increasingly turbulent environments, there is a great interest in understanding its origins. To date, prior studies have overwhelmingly focused on the architectural factors—the structures, cultures, resources, and incentives—that shape entrepreneurial processes within organizations and the environmental conditions that stimulate entrepreneurial activity. However, some researchers have recently begun to argue that the requirements and challenges of CE fall most saliently on the shoulders of the firm's top management team. Focusing on various aspects of top managers' activities, roles, and processes, this line of research demonstrates the enabling role of top management teams in their firm's pursuit of CE. We extend this research by examining the impact of top management team composition in terms of human capital and social capital on CE. Additionally, because external environment perceptions within top teams shape their sociopolitical process and framing of the issues facing their firms, we submit that a team's level of perceived technological uncertainty moderates the impact of the team's human and social capital on CE. We find support for these arguments using multisource data from a sample of 99 high‐technology firms. The discussion finally traces the implications of our theory and findings for research and managerial understanding on CE.     

A Comparative Study on the Impact of Revised SORP 2 on British and Irish Charities

Charities constitute an important sector in the economies of Britain and Ireland. However, despite their economic importance, charity external financial reporting has been characterised by a diversity of accounting practice and a lack of standardisation. Over the last 20 years an attempt has been made to improve this situation by the publication of a Statement of Recommended Practice (SORP) for charities in 1988 and its revision in 1995. It is argued that inconsistencies in the financial statements of charities and the adoption of dubious accounting practices make it difficult for users of charity accounts to understand (and therefore use) the information provided. Previous studies have mainly looked at the impact of the original SORP (1988) on large charities in Britain. Little is known with respect to the impact on Irish charities. This paper presents the results of a comparative analysis of over 200 financial statements of Irish and British charities with respect to the recommendations contained in the revised SORP (1995). The results provide evidence that the accounts of Irish charities are considerably less compliant with the recommendations made in the revised SORP than their British counterparts. Possible reasons for this are discussed.     

The effect of uncertainty on UK investment authorisation: Homogenous vs. heterogeneous estimators

This paper compares pooled and non-pooled models of UK capital investment using the Confederation of British Industrys (CBI) Industrial Trends Survey, focusing on the impact of uncertainty. The uncertainty measure is based on the cross sectional dispersion of optimism about the future business conditions in the industry in which the firm operates. The panel data estimation shows that uncertainty has quantitatively important negative effects on investment. However, if we look at the estimation results at the industry level, we find a great diversity in both estimated elasticities and t-statistics, providing valuable information not available from the pooled model. Finally, we compare the forecast performances of the above models; this analysis confirms that pooled estimators are generally better than non-pooled estimators in terms of out-of-sample forecast performance, but the difference between the two is not very large.     

Organizational Responses to Uncertainty

This paper investigates two problems in applying management models in beef feedlot farm planning: first, the methodological problem of modelling risk-efficient organizational responses; and second, the behavioural problem of explaining how and why an operator selects a particular organization from a choice set of efficient planning strategies. Specifically, the paper examines the feasibility of using a risk simulator in conjunction with a linear programming farm planning model (LP-RS) to calculate expected income (E)—risk (V) trade-offs as an alternative to quadratic programming (QP). Further, it identifies and examines those management components which aid the operator in forming an attitude toward the selection of one organization over numerous alternative planning strategies. The results from this research demonstrated that the E,V combinations generated by the LP-RS model closely approximated those generated by the QP model. Accordingly, it is implied that commercially oriented farm planning models (based on maximization of a linear profit function subject to linear restraints) could be modified to determine alternative planning strategies which embody different, but efficient, income-risk trade-offs. Additionally, the results indicated that in order to aid the operator in forming an attitude toward a particular organization, it is essential that the numerous E,V planning strategies be translated into management components which are consistent with his normal terms of reference. Cette publication éxamine deux problémes lies à I'application de models de gestion au cos de la production de boeuf en stabulation; un, le problème de méthodologie associéà la représentation du risque et de I'efficacité d'un type d'organisation; et deux, le problème du comportement de I'opérateur: comment et pourquoi ce dernier choisit une organisation particulière à partir d'un éventail de stratégies planificatrices efficientes. Par opposition à l'emploi d'une programmation quadratique (QP) cette étude éxamine, plus précisément, le possible emploi d'un simulateur de risques (RS) associé avec une programmation linéaire (LP) de la planification d'une ferme pour calculer diverses combinaisons de risques (V) et revenus (E). De plus les composantes de la gestion, qui participent à la formation d'une attitude de I'operateur vis à vis du choix d'une organisation parmi de nombreuses alternatives, sont identifiées et éxaminées. Les résultats de cette recherche démontrent que les combinaisons (E,V) proposées par le model LP-RS sont proches de celles produites par le model QP. En consequence cela implique que les models commercial de planification d'une ferme (basis sur la maximization d'une fonction linéaire de profit soumise à des contraintes linéaires) peuvent êlre modifiés de facon à déterminer diverses stratégies planificatrices incorporant diverses combinaisons efficaces revenues-risque. De plus les résultats suggerent que, pour que I'opérateur puisse s'aider du model lors de I'évaluation d'une organisation, il est essentiel que les nombreuses stratégies (E,V) revenues-risques soient traduites dans les composantes de gestion de manière compatible avec les termes de référence de I'opérateur.     

Estate Agency: A Marketing Challenge John Driver

The application of marketing by estate agencies has been influenced and generally restricted by professional considerations, but dramatic changes are occurring us new types of competitor specialise in aspects of the agent's traditional work. The situation of local oligopoly is likely to change, especially in urban areas, but the advent of a new structure in house transacting paradoxically should enhance the professionalism of agencies as they transcend the role of information intermediary and pursue their distinctive competences in property assessment, buying and selling. Their marketing mix, however, must be better aligned to the needs of institutional and individual segments.