WHAT HAPPENS AFTER SUCCESS: THE PERILS OF EXCELLENCE*

This article examines how past performance influences the way an organization evolves, makes decisions, and adapts to its environment. It argues that compared to other periods of history, those that follow a lengthy interval of success will reveal companies that are especially apt to: (1) exhibit inertia in many aspects of structure and strategy-making process; (2) pursue immoderation, that is, adopt extreme process orientations; (3) manifest inattention, that is, reduce intelligence gathering and information processing activity; and (4) demonstrate insularity by failing to adapt to changes in the environment. an empirical analysis of the long-term histories of 36 companies provides tentative support for these notions.     

Preserving religious identity through education: Economic analysis and evidence from the US

This paper models the decision of religious parents to send their children to private religious schools as reflecting their desire to shield their children from external influences and thus preserve their religious identity. It follows that when the share of the minority in the local population grows—and outside influences become less threatening—the demand for separate religious schooling among the members of the religious group decreases. This pattern implies concavity in the relationship between enrollment in private and religious schooling and the share of the religious group in the population. We present empirical evidence from United States county data on Catholic and private school enrollment that strongly supports our theory. The paper contributes to a better understanding of the demand for religious education.     

Innovation in conservative and entrepreneurial firms: Two models of strategic momentum

Two very different models of product innovation are postulated and tested. The conservative model assumes that innovation is performed reluctantly, mainly in response to serious challenges. It therefore predicts that innovation will correlate positively with environmental, information processing, structural and decision making variables that represent, or help to recognize and cope with these challenges. In contrast, the entrepreneurial model supposes that innovation is always aggressively pursued and will be very high unless decision makers are warned to slow down. Thus negative correlations are predicted between innovation and the variables that can provide such warning. Correlational and curvilinear regression analyses revealed that each model was supported by conservative and entrepreneurial sub-samples, respectively, in a diverse sample of 52 Canadian firms.     

A contingency framework for the design of accounting information systems

Most of the research to date concerning the design of an accounting information system has taken a rather narrow and inflexible view of accounting information. The primary intent of this paper is to provide a broader and more adaptive framework for designing such systems. A contigency approach, which takes into account the environment, organizational attributes, and managerial decision making styles, is advocated. In this context, several hypotheses are offered concerning the requisites of an accounting information system.     

Property appraisal in high-rises: A cooperative game theory approach

The construction of the higher stories in a building is utterly contingent upon the construction of the lower ones, while the construction of lower stories does not require the construction of the higher ones. This rationale underlies our adoption of a cooperative game theory methodology for examining the value of units based on the cost approach of land appraisal. Particularly, we propose the Shapley value solution to examine the allocation of the land and construction cost among the stories of the building. We explore the allocation mechanism and derive several closed-form properties by which the value pattern of stories in a building is rationalized. The proposed cost allocation may, among other things, generate values when comparable market prices are unobservable (consistent with the cost approach); may be used by courts in order to compute compensations in cases of disputes regarding expansions and redevelopments of existing structures among co-owners; and may determine the rent cost allocation in an organization with several profit centers located on different floors of a building.     

Concentrated supply chain membership and financial performance: Chain- and firm-level perspectives

This study reports evidence that concentrated 3-firm supply chains achieve superior financial performance, and that supply chains’ financial performance varies systematically with measures of chain concentration and chain duration. Results from firm-level analyses suggest that the profitability benefits of supply chain relationships are captured predominantly by downstream chain members, whereas cash cycle benefits are realized throughout the supply chain. Firm-level tests also reveal that chain members’ financial performance varies systematically with measures of downstream bargaining power, downstream relationship duration, and degree of supply consolidation. The study's chain- and firm-level analyses employ data extracted from sample firms’ publicly available financial reports, including their major customer disclosures under Statement of Financial Accounting Standards Nos. 131 (1997) and 14 (1976).     

Liberalizing Nirvana: an analysis of the consequences of common pool resource deregulation for the sustainability of Fiji's surf tourism industry

In July 2010, the Fijian government issued a decree that liberalized Fiji's surf breaks and deregulated its surf tourism industry. It did this by canceling licenses that granted resorts exclusive use of surf breaks based on indigenous customary ownership of foreshore and fringing reef fishing areas as common pool resources. This paper analyses the sustainability of surf tourism in Fiji, utilizing a developing framework for sustainable surf tourism. Based on broader sustainable tourism theory and empirical research, the framework considers (1) the impact of economic neo-liberalism, (2) the need for coordinated planning and limits to growth, (3) the advantages of systematic attempts to foster cross-cultural understanding, and (4) the social benefits associated with the development of surfing at the village level. The study found that a lack of regulation is compromising the sustainability of Fiji's surf tourism industry in each of these four dimensions. However, evidence of a growing acceptance of the need for regulation by most stakeholders offers a starting point for a transactive, participative process to find solutions. A fifth element to the framework is recommended for future analyses based on the need for surf tourism to contribute to poverty alleviation in destination communities.