Complex Systems and the Merger Process

This paper considers how some of the generic principles that have emerged in the course of recent study and thinking around complex systems might be applied in a helpful way to the particular context of understanding the nature of the merger process. Theoretically, the paper stresses the connections between the processual and time-dependent nature of learning and knowledge acquisition and the systemic nature of socio-economic development and transformation. When carried into the substantive domain of mergers and their contribution to restructuring in the pharmaceuticals industry, we suggest that the complex systems approach provides a fruitful complement to alternative conceptual frameworks, albeit one which is still at an early stage of development in terms of this particular application.     

Demystifying demotion: A look at the psychological and economic consequences on the demotee

Given the high levels of attrition in the teaching profession there is a need for research to better understand factors that lead to greater teacher well-being and engagement. The present study explores the roles of coping and buoyancy in predicting teacher well-being and engagement. In particular, a process model is hypothesized in which the use of ‘direct’ coping strategies (mastery orientation and planning) predict high levels of buoyancy, well-being, and engagement, while ‘palliative’ coping strategies (self-handicapping and failure avoidance) predict low buoyancy, well-being, and engagement. Amongst a sample of 515 teachers from 18 schools, results generally supported this model with particularly strong direct effects for buoyancy and strong direct and indirect effects for mastery orientation. Failure avoidance, self-handicapping, and planning also produced significant direct and/or indirect effects via buoyancy on teacher well-being and engagement. Implications for school executives and future research are discussed.

Entrepreneurship and Philanthropy in American Capitalism

American capitalism differs from all other forms of industrial capitalism is its historical focus on both the creation of wealth (entrepreneurship) and the reconstitution of wealth (philanthropy). Philanthropy is part of the implicit social contract that continuously nurtures and revitalizes economic prosperity. Much of the new wealth created historically has been given back to the community, to build up the great social institutions that have a positive feedback on future economic growth. This entrepreneurship-philanthropy nexus has not been fully explored by either economists or the general public. The purpose of this paper is to suggest that American philanthropists – especially those who have made their own fortunes – create foundations that, in turn, contribute to greater and more widespread economic prosperity through knowledge creation. If we do not analyze philanthropy we can understand neither how economic development occurred nor what accounts for American economic dominance.     

The sociology of knowledge: Toward an existential view of business ethics

Business ethics is the study of ethics as it applies to a particular sphere of human activity. As such, business ethics presupposes a difference between an individual's experience within a business organization and his or her experience outside the organization. But how do we examine this difference? How do we discuss an individual's experience of “everyday reality”? What processes create and sustain this reality, and how does one's version of “reality” affect what is, and what is not, ethical? This paper outlines an approach to these questions based on theory from the sociology of knowledge, an approach which makes some progress towards making business ethics more existential. The sociology of knowledge, and particularly the social constructionist perspective, is concerned with how an institution creates “knowledge” and how this “knowledge” affects the cognitive processes of the individuals who make up the institution. The dialectic nature of the interdependent processes which shape both the individual and the organization are important in understanding how business ethics, as one kind of social knowledge, are enacted. Examining these processes leads to several interesting hypotheses about the nature of both the study and practice of business ethics. XXX“Only individuals have a sense of responsibility.” — Friedrich Nietzsche     

The Life Cycle of Terrorist Organizations

It is a fact that terrorist organizations come and go. This empirical fact tends to draw attention to the demise of the terrorist organization and distracts from the dynamics of the terrorist organization’s life cycle. In this respect, the extant literature suffers from a serious weakness that is symptomatic of the absence from the literature of a rigorous theoretical explanation for the life cycle of terrorist organizations. This paper aims to address this by developing a theoretical explanation for the life cycle of terrorist organizations that is centered on competition for grassroots or popular support between the terrorist organization and the government. The decline and demise of a particular terrorist organization is not certain ex ante and a terrorist organization may be expected to be most dangerous not in its death throes, but during its early years as it competes with the government for grassroots support. These appear to be different conclusions to those that characterise some parts of the literature on this subject. The theoretical explanation developed herein also predicts a cyclical oscillation of conflict.     

Current Events Periodicals and Business Ethics

This essay argues that the use of current events periodicals may be of great use in the management and business ethics classroom. The advantages include, but are not limited to, (1) the demonstration of the relevance of often highly theoretical class material, (2) an opportunity to apply theory and thus demonstrate understanding and internalization of the theory, (3) the provision of concrete examples as points of reference for materials, and (4) the development and reinforcement of the vital habit of reading periodicals and keeping up with business events.     

A Model of Return Volatility with Application to Estimating Relative Risk Aversion

We estimate a monthly return volatility model that allows for the abrupt changes in volatility often observed in returns data. Using this model we are able to identify key months likely to correspond to draws from a high volatility regime. Using our model in conjunction with Merton's (1980) model relating expected risk premia to risk we obtain reasonable estimates of the coefficient of relative risk aversion.     

The UK Landfill Tax: Financial Implications for Local Authorities

Local authorities in the UK are responsible for waste management. Since the introduction of the landfill tax in 1996, the costs of disposing of municipal solid waste in landfill has increased markedly. The money collected is being paid to central government, through Customs and Excise. Some remission of landfill tax money can be claimed by commercial organizations to develop sustainable waste management, but local authorities, which also have an important role in this, cannot do so. The authors explain why the hypothecation of landfill tax revenue would be helpful and why local authorities need additional funds to develop sustainable waste management projects.     

Asset Efficiency and Reallocation Decisions of Bankrupt Firms

This paper investigates whether Chapter 11 bankruptcy provides a mechanism by which insolvent firms are efficiently reorganized and the assets of unproductive firms are effectively redeployed. We argue that incentives to reorganize depend on the level of demand and industry conditions. Using plant-level data, we find that Chapter 11 status is much less important than industry conditions in explaining the productivity, asset sales, and closure conditions of Chapter 11 bankrupt firms. This suggests that firms that elect to enter into Chapter 11 incur few real economic costs.