How Much Does Ownership Form Matter?

Research summary : Previous studies have emphasized firm and industry effects on variation in firm performance, but the relationship between forms of ownership and firm performance has been the focus of limited research. This article examines the extent to which ownership form (i.e., public or private ownership) and ownership structure (including diffused ownership and blockholding) affect firm performance. The results of an analysis of 30,525 European Union (EU) firms indicate that form of ownership is an important explanatory factor in the difference in performance among firms. These results underscore the need to study firms characterized by different ownership arrangements and to provide empirical evidence for the study of firm ownership in strategic management. Managerial summary : Motivated by growing evidence on the involvement of different types of owners in the strategies of firms, we studied the extent to which a firm's ownership form (type of legal incorporation, such as public and private ownership forms) and ownership structure (diffused ownership and blockholding) affect its performance. Our study of more than 30,000 firms from the European Union shows that ownership form differences explain some of the performance differences between firms. Our results also indicate that firms with different ownership forms are differently affected by their competitive environment. Overall, the study suggests that choosing the right ownership form can have important strategic consequences. Copyright © 2017 John Wiley & Sons, Ltd.     

The strategic role of relational capabilities in the business-to-business service profit chain

This paper extends the original service profit chain by examining the role of relational capabilities with employees, customers and strategic partners on process and performance outcomes in a business-to-business context. More specifically, we demonstrate how satisfied and loyal employees are better in developing relationships with customers and strategic partners. These relationships enable firms to be more responsive towards customers and become more innovative, which increase customer satisfaction and loyalty and, ultimately, financial performance. Our results provide support for the development of relational capabilities in a business-to-business environment by extending the service profit chain (SPC) model. However, we find that while the development of strong customer relationships contributes to an improved service responsiveness of the firm, strategic partners do not.     

A NOTE ON THE CONCEPT OF SERVICES

Not one of the many service definitions proposed by various authors and applied in practice enjoy general acceptance. Is it feasible to reach an international agreement on the definition of services? The answer is probably yes; however, is it worthwhile to spend considerable resources to reach such an agreement. Does an overall services aggregate indeed provide important analytical uses? Many doubts are expressed in this respect. Authors of recent international work on the statistics of services tend to accept a more flexible attitude: instead of having one single definition on services, several service concepts could be applied depending on feasibilities and other circumstances of the various statistics. However, all service definitions should be based on the International Standard Industrial Classification (ISIC) and on the Central Product Classification (CPC), recently approved by the Statistical Commission of the United Nations.     

The Collaborative Enterprise

Instead of the currently prevailing competitive model, a more collaborative strategy is needed to address the concerns related to the unsustainability of today’s business. This article aims to explore collaborative approaches where enterprises seek to build long-term, mutually beneficial relationships with all stakeholders and want to produce sustainable values for their whole business ecosystem. Cases here analyzed demonstrate that alternative ways of doing business are possible. These enterprises share more democratic ownership structures, more balanced and broader governance systems, and a more comprehensive view of organizational goals and performance – which goes beyond the narrow concept of financial bottom line and into a stronger and systematic care of the needs and requirements of the different stakeholder groups. Thanks to this evidence and different theoretical and empirical contributions, we suggest that the strength and sustainability of enterprises come from their ability to fit into the environmental, social, and cultural context in which they operate. By creating values for all stakeholders, enterprises can involve them and gain deep support based on their commitment. This may lead to superior performance from a multiple-bottom-line perspective.     

How do additional alternatives affect individual choice under uncertainty?

Abstract .  We show, in an artefactual field economics decision-making experiment, that the addition of an alternative to a choice set can affect the measurement of farmers' risk preferences in rural Peru. We found that an alternative that would normally be considered irrelevant was chosen in Peru, and that it affected choice between other alternatives. In Montreal, the irrelevant alternative was not chosen, but also affected choices between other alternatives. Comparing choices made in Peru with those made in Montreal, we identify beliefs and cultural characteristics that are likely to lead to these results.     

Strike Pay and Employers' Strike Insurance

The consequences of strike pay for employees and of an employers' strike insurance fund are analysed in a two‐period screening model of labour disputes with private information of the firm. It is shown that the employers' strike fund reduces uncertainty and hence lowers strike activity. If the union's strike pay fund can incur a deficit during disputes, strike pay will raise strike activity. If strike pay and an employers' insurance are combined, strikes may become less probable.     

Surviving the transition: Central European bank executives’ view of environmental changes

Executives of ten large banks in three Central European transition economies were interviewed concerning their views of environmental changes. The study sought to identify environmental sectors that were important and uncertain for the bank executives. Central European bankers perceived customers, competitors, economic, and regulatory environmental sectors more uncertain than international and technological factors, sociocultural issues, and new entrants. We found that executives of banks with poor prior performance viewed environmental changes as threats rather than as opportunities.     

On the Relationship Between Wages and Monitoring in Shirking Models

In shirking models of efficiency wages a higher monitoring intensity is often argued to allow for a reduction in the wage. This paper shows that the relationship between wages and monitoring intensity can be positive within a single firm, especially if the monitoring intensity is determined optimally. Moreover, given alternative firm objectives, a positive relationship can also exist across firms. Thus, shirking models do not generate a unique association between wages and monitoring intensity and empirical evidence on their correlation can only provide information on the relevance of shirking models under restrictive assumptions.     

Evaluation of the Information and Communications Infrastructures of Bulgaria and Romania Following Their Accession to the EU

ABSTRACT

The European Union (EU) completed a massive expansion in 2004. On January 1, 2007 Bulgaria and Romania were admitted into the union. EU accession requires the fulfillment of a list of requirements relating to judicial, economic, information and social infrastructures. This article examines Bulgaria's and Romania's National Information Infrastructures (NII) analyzing traditional, high technology and competitive structures. Comparisons are made to the original 15 European Union member countries' (EU15) NII structures and to those ten countries which entered in 2004 (EU10). Results of the analysis indicate that Bulgaria and Romania compare favorably on traditional measures, though high technology infrastructures lag considerably in some instances, and will be costly to build well beyond available EU funding sources. The gap will provide opportunities for western high technology firms which should be favorably embraced by the two resource strapped governments.