Creating comprehensive leadership pipelines: Applying the real options approach to organizational leadership development

Typically, firms consider leadership development (i.e., training focused on skills required for success in leadership roles) and succession planning (i.e., the creation and implementation of long-term plans that address changes in top leadership roles) as two distinct organizational initiatives. In recent years, however, scholars and practitioners have called for a new, more comprehensive approach that considers the organization as a system. Rather than considering succession planning and leadership development as distinctly different initiatives, organizations should work to create internal leadership pipelines that span entry-level employees to executives. To leverage potential advantages associated with instituting comprehensive leadership pipelines and to address practical concerns associated with risk and talent management, we propose the introduction of incremental investment in organization-wide leadership development programs via distinct, evaluative stages – a real options reasoning (ROR) approach to leadership. We argue that blending ROR with skills-based leadership models diversifies risk associated with investments in talent management and increases the ability for targeted, purposeful investment in potential organizational leaders.     

The classical tax system,imputation tax and capital budgeting

Differences in the taxation systems in Britain, France, and some other European countries (which use the imputation system) compared with the USA and the Netherlands, among others (which use the classical tax system), mean that the cost of equity capital should be specified, using a capital asset pricing model methodology, in different ways. Under the imputation system its value should be net of personal taxes; under the classical tax system, it should be gross of personal taxes. Similarly the value of the tax shield on debt for input into adjusted present value calculations differs, being significantly greater under the classical tax system. Formulae are set out to enable the calculation of the magnitude of the tax shield readily to be undertaken.     

Internalisation thinking: From the multinational enterprise to the global factory

Internalisation thinking is traced from its inception by Coase through its application to multinational enterprises and to the global factory. The general principles governing the internalisation of markets are revisited and the focus on innovation, the dynamics of internalisation and its application to newer structures of firms such as the global factory are emphasised.     

Partnerships in ecotourism: Australian political frameworks

Conservation interests hope to use tourism as a tool in conservation, whereas tourism interests want to use conservation as a tool in tourism development. Both promote partnerships, but with different political aims. In federated nations such as Australia, this involves industry associations and government agencies in different jurisdictions as well as different portfolios. There are several recent national‐scale initiatives in Australia. The Tourism in Australia's Protected Areas Forum, TAPAF, is an informal information exchange group between state protected area management agencies which also includes state government tourism representatives. TAPAF has promoted a Code of Practice for commercial tour operators in protected areas. Ecotourism Australia is an industry association which has promoted a Cairns Charter on Partnerships for Ecotourism. The National Tourism and Heritage Taskforce is the highest‐level consultative body, representing both industry and government, tourism and environment, federal and state levels. NTHT has produced a national strategy called Going Places, currently under implementation. The federal tourism portfolio has produced a somewhat conflicting document of its own, called Pursuing Common Goals. And the peak tourism industry association, formerly the Tourism Task Force and currently known as TTF Australia, is soon due to launch a report called Making National Parks a National Tourism Priority. Copyright © 2004 John Wiley & Sons, Ltd.     

Recreational demand for farm commonage in Ireland: A contingent valuation assessment

This paper measures willingness to pay (WTP) for public access and trail improvements on commonage farmland for recreational walking in upland and lowland areas of Connemara region in the West of Ireland using the contingent valuation method (CVM). Common to both upland and lowland commonage sites was the much higher ranking for infrastructural features by those WTP for scenario implementation compared to those preferring the status quo. Results for those expressing a positive WTP reveal a median willingness to pay (MWTP) for formal access with improved trail infrastructure of €12.22 for the lowlands compared with €9.08 for the uplands.     

The Institutionalist Perspective on Recent Theories of Direct Foreign Investment: A Comment on McClintock

This article holistically addresses the effective (relative) income tax contribution of a given income (or, wealth) group. The widely acclaimed standard in public policy is the absolute benefaction of a given income group in filling up the fiscal coffers. Instead, we focus on the ratio of the average income tax rate of an income group divided by the percentage of national income (or wealth) appropriated by the same income group. In turn, we develop the Fiscal Inequality Coefficient which compares the effective percentage income tax payments of pairs of income (or wealth) groups. Using data for the United States, we concentrate on pairs such as the Bottom 90% versus Top 10%, Bottom 99% versus Top 1%, and Bottom 99.9% versus Top 0.1%. We conclude that policy makers with a strong social conscience should re-evaluate the progressivity of the income tax system and make the richest echelons of the income and wealth distributions pay a fairer and higher tax.     

Ownership effects among Native American banks, 2001-2016

Minority Depository Institutions (MDIs), including Native American Banks (NatBs), play an integral role in providing financial services to the under-served. NatBs are split between those that are Tribal owned and those owned by individual Native Americans as private banks. This research explores differences between the two, other MDIs and comparable mainstream banks, using data from 2001 to 2016. Tribal NatBs are hypothesized to emphasize community development for the under-served over profit maximization, and to take on high levels of risk. Testing uses comparisons of population means and regressions, and the overall pattern of results and limited regression findings support those possibilities.     

The Role of China in the Global Strategy of Multinational Enterprises

This paper moves from the general to the particular. First, it examines the differential speed of globalization in different types of market – specifically markets in finance, goods and services, and finally labour markets. It then analyses the location and ownership strategies of multinational enterprises (MNEs), both as regards individual national markets and then in terms of the interaction between national markets (the ‘local/global’ spectrum). This analytical framework is applied to the place of China in the global strategy of MNEs. This application illuminates the role of DFI (direct foreign investment) in China and illustrates the peculiarities of China's place in the global system. The distortions in China's domestic system interact with the global strategies of MNEs to produce several interesting results, including: (1) the importance of MNEs’ ownership strategy; (2) non-optimal location decisions; (3) the ‘excessive internalization’ of activities in China; and (4) the growing importance of China as a location for DFI and, in future, the potential for growth of outward DFI from China.     

The Uneasy Case for the Flat Tax

Social contract theories assume thatbecause personal security and private property are at risk ina state of nature, citizens will agree to grant Leviathan a monopolyof violence. But what is to prevent Leviathan from turning onhis citizens once they have lain down their arms? The socialcontract leaves citizens worse off unless Leviathan can fetterhimself, as constitutional democracies seek to do. Self-bindingfetters are hard to find. We suggest that schemes of progressivetaxation, in which marginal tax rates increase with taxable income,may be useful incentives to realign Leviathan's incentives withthose of his citizens. Income taxes give Leviathan an equityclaim in his state's economy, and progressive taxes give hima greater residual interest in upside payoffs. Leviathan willthen demand higher side payments from interest groups beforehe imposes value-destroying regulations.