The Antecedents of Middle Managers' Strategic Contribution: The Case of a Professional Bureaucracy

abstract    Our study contributes towards a burgeoning literature that argues organizational performance is heavily influenced by what happens in the middle of the organization, rather than at the top. Examining the UK National Health Service, our study develops the work of Floyd and Wooldridge (1992 , 1994 , 1997 , 2000 ). It utilizes role theory to conceptualize changing experiences of middle managers in organizations as a role transition. Associated with this are problems of role conflict and role ambiguity ( Biddle, 1979 , 1986 ; Biddle and Thomas, 1966 ; Kahn et al., 1964 , 1966 ). Our study illustrates that there are limiting factors to a more strategic role for middle managers associated with the professional bureaucracy context. However, role conflict and ambiguity can be mediated by a socialization process, which values incoming identity and personal characteristics ( Van Maanen and Schein, 1979 ).     

Effort maximization in asymmetric contest games with heterogeneous contestants

Contest rules are set up by administrators who frequently have discretionary power in specifying the details of these rules, i.e., they can bias the contest rules toward specific contestants in order to further their prime objective. We derive the optimal bias of the contest rule for a contest administrator, who is interested in maximizing the total efforts expended in the contest. The solution is obtained in closed form for a widely used class of n-person contest games. Setting the optimal bias has important implications: (i) there is never exclusion of strong players, instead there is (endogenously induced) inclusion of weak contestants; (ii) the contest administrator will optimally level the playing field by encouraging weak contestants, but he will not equalize the contestants’ chances unless they are identical; and (iii) at least three contestants will be active in equilibrium of the optimal contest, irrespective of heterogeneity.     

Output gap in Brazil: a real-time data analysis

Recent literature for developed economies has shown that output gap estimates go through important revisions over time, impairing their reliability in real time. We organize a real-time data set for Brazil’s GDP and assess the revisions of the output gap estimated by four different methods. Similar to the findings of studies for developed economies, the output gap revisions in Brazil are substantial in all methods, with frequent changes in the output gap sign. In general, both the GDP data revision and the effect of adding new observations to the sample are relevant sources of output gap revisions. However, differently from those studies, we cannot assert that the latter source is preponderant.     

International trade and competitiveness

We analyze the role of international market size differences in determining the investment in process R&D (and thus firms?? competitiveness) in a trade model with oligopolistic market structure, non-homothetic production technology and costly trade. We show that the R&D effort is higher (or even disproportionately so) for firms in the larger market, which causes endogenous asymmetries across countries. As a result, firms in the larger market have higher competitiveness, which increases their market shares in international markets. Furthermore, and contrary to what is predicted by Krugman (Am Econ Rev 70:950?C959, 1980) ??home market effect??, in equilibrium the larger country does not need to host a disproportionately higher share of the world??s industry than of the world??s demand. Despite this, the larger country can still continue to run a trade surplus in the oligopolistic sector, since it hosts firms with higher competitiveness than firms in the smaller country.     

Inventory accuracy in 60 days!

Despite great advances in manufacturing technology and management science, thousands of organizations still don't have a handle on basic inventory accuracy. Many companies don't even measure it properly, or at all, and lack corrective action programs to improve it. This article offers an approach that has proven successful a number of times, when companies were quite serious about making improvements. Not only can it be implemented, but also it can likely be implemented within 60 days per area, if properly managed. The hardest part is selling people on the need to improve and then keeping them motivated. The net cost of such a program? Probably less than nothing, since the benefits gained usually far exceed the costs. Improved inventory accuracy can aid in enhancing customer service, determining purchasing and manufacturing priorities, reducing operating costs, and increasing the accuracy of financial records. This article also addresses the gap in contemporary literature regarding accuracy program features for repetitive, JIT, cellular, and process- and project-oriented environments.     

The value of tax benefits and the cost of liquidating versus selling failed thrift institutions

This paper examines the 205 insolvent thrifts that were resolved in 1988 and assesses the cost savings obtained by selling 179 of the institutions through assisted acquisitions rather than liquidating them. It is hypothesized that the cost savings were determined by factors related both to the future viability of the acquired institution and the particulars of the deal arranged by the Federal Home Loan Bank Board and the Federal Savings and Loan Insurance Corporation. The added value by selling a thrift is determined primarily by the level of core deposits obtained by the acquired thrift. However, the branch structure and purchased mortgage-servicing rights should also add franchise value to the firm. In addition to these factors, the analysis accounts for the tax benefits and other regulator forbearances associated with the deals. Other characteristics of the deals are also considered. It is found that core deposits, tax benefits, purchased mortgage-servicing rights, average branch size, and type of acquirer, as well as some other factors, were significant determinants of the cost savings obtained through selling an institution rather than liquidating it.