The Hierarchical Erosion Effect: A New Perspective on Perceptual Differences and Business Performance

Organizations are coalitions of individuals with heterogeneous interests and perceptions (March and Simon, 1958/1993). We examine an important source of heterogeneity, namely the different perceptions individuals hold across hierarchical levels. We introduce the notion of a hierarchical erosion effect whereby individual perceptions about specific practices become less favourable the lower one goes in the hierarchy. Using data from 4,243 employees across four levels in 38 business units, we provide evidence that this effect exists, controlling for other factors, including the overall favourability of the business unit culture across eight practices. We show how the size of this hierarchical erosion effect varies depending on the nature of the organizational practice being evaluated and the extent to which executives share strategic information widely, and we also show that a lower hierarchical erosion effect is correlated with higher business unit growth. In doing so, we enrich understanding of two aspects of March and Simon's work, their notion of intra‐organizational heterogeneity and their distinctive view of the nature of hierarchy.     

Any Willing Provider and Negotiated Retail Pharmaceutical Prices*

Any Willing Provider (AWP) regulations require insurers to allow health care providers network membership, eliminating an insurer’s ability to commit to a limited network of providers. We study the effect of AWP on prices negotiated between insurers and providers by exploiting the introduction of a regulation targeting retail pharmacies in the state of Maine. Using insurance claim level data and across state variation in exposure to the regulation, we estimate increases in negotiated pharmaceutical prices. Our results are consistent with AWP regulations’ reducing competition by inhibiting the ability of insurers to move demand across competing pharmacies.     

Cross-cultural differences in upward ratings in a multinational company

Differences between countries in the favourability of upward ratings were examined in a multinational corporation. Data were collected from 6,400 subordinates in ten countries. The results showed that the US and European countries were higher than Brazil and Asian countries on a number of items. A discriminant analysis revealed sets of items that maximally discriminated between groups of countries. The results were interpreted post hoc based on Hofstede's (1984) study of country differences in cultural values. Some results indicated changes in values since Hofstede's data were collected twenty years ago, while others indicated that values in some countries have not changed. The results have implications for calibrating upward feedback and evaluating the need for, and likely effectiveness of, interventions to guide how an organization is managed.     

Pictures of me: user views on their representation in homelessness fundraising appeals

There is a long‐standing ethical debate regarding the ‘right’ representation of recipients in charity marketing materials that are intended to accurately define and represent social problems whilst also prompting the maximum response in voluntary income. The study presented in this article makes a contribution to that debate by highlighting the views of charity beneficiaries regarding their representation in fundraising campaigns. Drawing on data from five focus groups conducted in cities across England, we explore the views of young homeless people regarding the images of homelessness that appeared in major charity campaigns aimed at raising money to fund homelessness services. Participants displayed a high level of reflexivity, demonstrating that they understood the issues involved with homelessness and the perceptions of people like themselves that exist in the public sphere and in the consciousness of potential donors. Although the participants held the view that maximising revenues through the use of simple, eye‐catching images is the prime goal of fundraising, they also expressed a desire for more nuanced campaigns that tell the dynamic stories of how people become homeless and the use of imagery that elicits empathy rather than merely arouses sympathy. Copyright © 2012 John Wiley & Sons, Ltd.     

Strategic HRM in building micro-foundations of organizational knowledge-based performance

Strategic HRM research has a strong potential to further our understanding of how organizational knowledge processes influence performance at various analytical levels. Drawing on ability–motivation–opportunity research and linking it to knowledge sharing behaviors, we discuss the micro-foundations in the link between strategic HRM practices and knowledge-based organizational performance. We thus describe a research agenda for future micro-foundational research that links strategic HRM and knowledge-based performance.     

Multichannel marketing: Mindset and program development

Individual consumers have quickly embraced the practice of using a variety of channels through which to make their purchases, as 65-70% of them are multichannel shoppers. Indeed, multichannel shoppers (defined as those who utilize a variety of different purchasing channels, including bricks-and-mortar stores, the telephone, and the Internet) are now in the majority, and spend significantly more than single-channel shoppers. Given this reality, it is critical that organizations adopt a multichannel mindset and effectively employ a multichannel marketing program, as these can enhance profitability, the customer experience, and customer satisfaction. It is the aim of this article to provide firms with guidance in developing an effective multichannel mindset and in designing a multichannel marketing program for serving end-consumers in business to consumer (B2C) situations.     

The IB/ IHRM interface: Exploring the potential of intersectional theorizing

Although the core concepts underlying IB and IHRM provide a common lexicon and epistemology, this commonality is often more implicit than explicit. We highlight not only the common ground but also the lack of critical dialogue between the two fields. This paper asks: What can each field learn from the other? What do scholars from IB learn from IHRM and vice versa? We identify a possible agenda and concerns regarding theory building as a basis for dialogue between the two fields.     

The possibilities of entering new markets for Romanian companies from wood manufacturing industries

Romania has the potential of resources, labor and real capacity to adapt to the gait of a global economic competition. But it required a long term policy and environment which could support this potential value. If not, we will risk turning into a consumer economy, consumption will not be funded on internal production and become supplier of labor services for peripheral. In the context of economic crisis, Romanian furniture retains its significant competitive advantages, including the price in export markets. The most important markets for exporters of furniture from Romania are Ukraine and Russia, markets with great potential, but affected by problems such as devaluing local currencies, and recently, imposing new duties.