HUMAN CAPITAL ACCUMULATION AND LABOR MARKET EQUILIBRIUM*

We analyze an equilibrium labor market with on‐the‐job search and experience effects (as workers learn by doing). The analysis yields a Mincer wage equation with worker fixed effects and endogenously determined firm fixed effects. Equilibrium sorting—where over time more experienced workers also tend to move to better paid employment—has a significant impact on wage inequality.     

Building Innovation Networks: Issues of Strategy and Expertise

This article investigates the role of networks in new product development by reporting on a contemporary case study of a firm in the defence electronics sector. A specific focus is the development and ongoing management of a network that comprises a number of formal inter-firm strategic alliances. The paper begins by reviewing earlier literature on technology strategies for innovation that has identified a key role for inter-firm networking in the organization and management of new product development. We then consider the related issue of the relevant management expertise, which enables firms to adopt a network approach to their strategy for innovation by developing a competence in the process of network building. In this particular case study the critical issue centred upon the extent of the internal resources in terms of time and personal effort that was devoted to building trust and actively managing various inter-firm relationships over time. The article concludes that while inter-firm networking can facilitate new product development across firm boundaries, it is not a panacea for success. Whilst financially successful in terms of product and market development, the networking strategy has also set up problems within the particular case study firm in terms of resourcing and managing the very growth that has been generated.     

International Divider Walls

The subject of this teaching case is the Enterprise Resource Planning (ERP) system implementation at International Divider Walls, the world market leader in design, production, and sales of divider walls. The implementation in one of the divisions of this multi-national company had been successful, and now the Chief Information Officer (CIO) was asked to advise the board of directors on the next step in the worldwide roll out of the ERP system. A choice had to be made between a centrally managed ERP option, and an option in which each of the divisions set up its own ERP project.     

What Price Emergency Planning? Local Authority Civil Protection in the UK

The Comprehensive Spending Review (CSR) will have far-reaching effects on government departments and on local government. Terms such as 'best value', 'bench-marking' and 'national performance standards' are now being used to describe the way in which local authority accountability and efficiency are to be tackled and improved. The local authorities' emergency planning function is no exception to this process. This article explores the present status of local authority emergency planning and examines the suggestions currently being made for its future structure and funding.     

Exploring servant leadership across cultures: comparative study in Australia and Indonesia

Several problematic aspects of women's paid employment - e.g. low pay and lack of promotional opportunities - are exacerbated by the segregation of women and men into different occupations. In this article, the potential of in-store equal opportunities policies to break down such gender segregation will be explored, through consideration of the existence and implementation of these policies in twenty-two multinational retail companies in Dublin and Paris. It will be argued that, with one notable exception, the instore equal opportunities policies are effectively neutralized, and furthermore are neutralized in nationally specific ways which can be related to differences between France and Ireland in the organization of labour-market regulation and in women's labour-force participation (LFP). The case-study findings also suggest that the 'country' variable has a stronger effect on the existence and implementation of these policies than the extent of a shop's links to an overseas headquarters. The findings of this study have implications for both the equity of women's incorporation into the paid labour force and understanding of aspects of HRM in branches of multinational companies.     

Accounting graduates' perceptions of skills emphasis in undergraduate courses: an investigation from two Victorian universities

This study investigated the emphasis placed on technical and generic skills developed during undergraduate accounting courses from the graduate perspective. It is motivated by two issues. First, calls by the accounting profession and international education committees regarding the professional adequacy of graduates. Second, the challenge facing educators and professional bodies to design accounting courses that address a diverse range of needs from students, the educational philosophy of the institution, and the changing dynamics of global business. Data obtained from 310 graduates from two Victorian universities provided insights into the types of skills development considered necessary for a successful accounting career.     

Managerial incentives and risk-taking

We provide empirical evidence of a strong causal relation between managerial compensation and investment policy, debt policy, and firm risk. Controlling for CEO pay-performance sensitivity (delta) and the feedback effects of firm policy and risk on the managerial compensation scheme, we find that higher sensitivity of CEO wealth to stock volatility (vega) implements riskier policy choices, including relatively more investment in R&D, less investment in PPE, more focus, and higher leverage. We also find that riskier policy choices generally lead to compensation structures with higher vega and lower delta. Stock-return volatility has a positive effect on both vega and delta.