Evolving Purchasing and Supply Organizations: A contingency model for structural alternatives

Purchasing and Supply Management (PSM) is under significant pressure to find levers to further increase its contribution to corporate goals. In order to improve performance in line with expectations, Purchasing and Supply Organizations (PSOs) have to evolve continuously. To help address this challenge, a comprehensive contingency framework of PSO structures is presented. The framework is based on existing literature on PSO contingency factors as well as analysis of two case companies. The findings highlight the importance of taking a contingency perspective for understanding the PSO and combining a detailed view of macro-level structural dimensions with micro-level characteristics. These macro-level dimensions comprise category, business unit, geography and activity. The micro-level characteristics comprise centralization, formalization, specialization, participation and standardization. From a theoretical perspective, the contingency framework opens up insights that can be leveraged in future studies in the fields of hybrid PSOs, global sourcing organizations, and International Purchasing Offices (IPOs). From a practical standpoint, an assessment of external and internal contingencies and their relation to specific structural dimensions and characteristics provides the opportunity for more consciously evolving the PSO to continue to improve PSM's contribution.     

Political cost influences on income smoothing via extraordinary item classification

Until 1990, Australian managers could classify recurring gains and losses outside the normal operations of the firm as either operating or extraordinary items. The results of this study indicate that managers of companies with highly unionised workforces, and therefore subject to labour-related political costs, attempted to affect the probability of wealth transfers by smoothing reported net operating profit via the classification of those recurring gains and losses. The degree of management ownership is associated with classificatory smoothing but interest coverage is not, indicating differential contracting influences.     

Shop stewards in the 1990s: a research note

Evidence suggests that the unions suffered badly during the 1980s, but how has this affected the lynch-pin of workplace industrial relations, the shop steward? The evidence of this research is that the shop stewards of the 1990s display remarkable stability in their influence and role when compared to earlier surveys.     

Evidence-Based Illicit Drug Policy: The Potential Contribution of Economic Evaluation Techniques

Summary Drug misuse is associated with a wide range of potential consequences for individual drug users, their families, communities and the rest of society. Debates about drug policy choices are influenced more by opinion and implicit values than scientific evidence. This paper argues that economic evaluation techniques provide a valuable framework to explore the different impacts of drug policy choices.     

I love New York

Conceived in 1976, funded and implemented in 1977, the ‘I Love New York’ campaign has been perhaps the most reknowned tourism marketing campaign in travel industry history. Jonnie Godfrey, of Rosamunde Bern Associates — UK public relations consultants — describes the development of the campaign.     

Impact of Segment‐level Natural Resource Operational Risk Reporting on Earnings Predictions

Non‐financial reports alert investors to operational risks associated with issues such as insufficient access to natural resource inputs and related costly interruptions to production, while segment‐level reports alert investors to operational risk distribution across a firm. An important issue, to date unexplored, is how segment‐level non‐financial reporting has an impact on earnings predictions. We report the results of an experiment used to examine how mining company segment‐level water reports affect investors' earnings predictions, where water reports indicate whether the firm and its segments will have access to sufficient water to meet production needs. We find that investors do not change their earnings predictions when firm and segment‐level reports indicate low water risk but they do revise down their earnings predictions when firm and segment‐level water reports indicate high water risk. This is consistent with investors responding to the additional information provided in segment‐level reports confirming that water risk is high across the firm. Regardless of whether firm‐level water reports indicate high or low water risk, when segment‐level reports indicate that one segment is low water risk and another is high water risk, investors revise down their earnings predictions. This is consistent with investors recognizing that natural resource operational risk concentration in one segment can affect earnings more than evenly‐distributed risk. Overall, our findings suggest that belief‐adjustment theory explains how investors react to prospective operational risk information contained in segment‐level water reports according to the similarity of the segment‐level risks, and that this information is factored into earnings predictions.     

Social welfare and competitiveness

The predominant narrative of globalisation is that it has led to a decline in the power of the nation state and an increase in the power of markets. Others note that the power of the state has increased along some dimensions, even as it has lost economic power. Both of these literatures, however, tend to be too reductive by focusing on the national scale. In contrast, this paper argues that globalisation may reconfigure, respatialise, and potentially increase the economic and political power of certain states. This hypothesis is tested empirically through reference to Chinese engagement in the Southern African country of Zambia using data obtained from in-depth interviews conducted with government officials, Chinese business owners, employees and other key informants.     

Goodwill impairment as a reflection of investment opportunities

We exploit a unique opportunity to examine whether goodwill impairment write‐offs reflect firms’ investment opportunities during the first years of the US goodwill impairment accounting regime. We find that impairment write‐offs are negatively associated with firms’ underlying investment opportunities. We also find associations between goodwill impairment write‐offs and traditionally applied leverage, firm size and return on assets variables, although the leverage and firm size results are less robust. The results support the International Accounting Standards Board and Financial Accounting Standards Board contention that an impairment test regime can reflect firms’ underlying economic attributes, while simultaneously indicating that managers use discretion to reduce contracting costs.     

Surplus labour as a source of foreign exchange?

How far can labour-surplus economies, by exporting unskilled workers and/or by importing capital to employ unskilled workers in industries producing for the world market, use their surplus labour as a source of foreign exchange and as a springboard into self-sustaining development? This paper, using the framework of analysis first suggested by Lewis over 25 years ago, emphasizes the danger of expecting too much from such a strategy. Indeed in the gloomy context of the 1980s, with many labour-surplus economies driven towards closing rather than opening, the closed-economy surplus-labour analyses of the 1950s and 1960s may come into their own again.     

The global economic crisis and the impact on children in Sri Lanka

By the 1970s, Sri Lanka had already achieved a high level of mass well-being, literacy and labour force skills, making it possible to mount a massive investment programme in the late 1970s. Measures taken in 1977 to open the economy emphasized foreign investment and expansion of production, export promotion and employment. Because structures and levels of outlays on essential social welfare were maintained and external resource flows increased, Sri Lanka's economic and health indicators over the 1970s show on balance an improvement in living conditions although pockets of disadvantaged households exist.