Strategic management in Latin America

This paper presents conclusions about the kind of strategic management research being done in and about Latin America. The conclusions are based on a selection of papers presented during the conference. The fifteen works that this volume includes were selected from 63 conference presentations through a rigorous double blind review process. The 63 conference presentations were selected from among more that 100 initial proposals.     

Marksist Management: Sophisticated Human Relations in a High Street Retail Store

Large non-union firms such as IBM, Hewlett-Packard and Marks & Spencer are frequently cited as ‘role models’ for ‘soft HRM’. The key elements of sophisticated human relations practised by these firms are well-known, but there is little evidence of employees’ perceptions or experience of this particular management style. Data from a high street retail store which follows the Marksist version of sophisticated human relations reveals a significant gap between aspirations (rhetoric) and outcomes (reality).     

Advances in specification testing

Testing the specification of econometric models has come a long way from the t tests and F tests of the classical normal linear model. In this paper, we trace the broad outlines of the development of specification testing, along the way discussing the role of structural versus purely statistical models. Inferential procedures have had to advance in tandem with techniques of estimation, and so we discuss the generalized method of moments, non parametric inference, empirical likelihood and estimating functions. Mention is made of some recent literature, in particular, of weak instruments, non parametric identification and the bootstrap.     

Volatility forecasting: combinations of realized volatility measures and forecasting models

This article examines financial time series volatility forecasting performance. Different from other studies which either focus on combining individual realized measures or combining forecasting models, we consider both. Specifically, we construct nine important individual realized measures and consider combinations including the mean, the median and the geometric means as well as an optimal combination. We also apply a simple AR(1) model, an SV model with contemporaneous dependence, an HAR model and three linear combinations of these models. Using the robust forecasting evaluation measures including RMSE and QLIKE, our empirical evidence from both equity market indices and exchange rates suggests that combinations of both volatility measures and forecasting models improve the forecast performance significantly.     

Thirty Years of Managerial Change at the BBC

The recent attempts of the BBC to become more accountable and cost-efficient are examined in the context of the McKinsey reforms of 1968 to 1972. They, too, set out to achieve improved resource management, 25 years before the similar initiative known as 'Producer Choice'. The BBC has entered the digital age and is poised to launch even more new services around the world. Few doubt that this would have been possible without Producer Choice, but the change programme did not realize its full intentions and the BBC still has organizational difficulties when trying to meet the strategic challenges it has set itself. It needs to do this if it is going to survive the current shift to new forms of delivery mechanisms in the 21st century.     

Verifying alternative measures of the service-quality construct: consistencies and contradictions

Abstract

Since the role of service quality for organisational survival and success is of outmost importance, its measurement is still receiving increased attention. SERVQUAL and its alternative measures, namely, SERVPERF, weighted SERVQUAL, and weighted SERVPERF, are the most widespread in the service-quality literature. Yet, research has not concluded regarding the relative superiority of any of these measures. The present study compares all four alternatives within the auto-repair industry in Greece. Based on data from 1043 customers, overall results are in line with previous studies, confirming the multidimensionality of the service-quality construct and the five-factor SERVPERF pattern. In disagreement with previous studies, findings show that the importance-weighted SERVPERF scale provides the greatest diagnostic information. Furthermore, significant variation was found in the predictive validity of the measures.     

Relationships in Franchised Distribution System: the Case of the Spanish Market

The purpose of this article is to examine long-term inter-firm relationship management and to investigate empirically if trust and commitment are essential variables for relationship success. This study analyses both the relationship between two behaviours (cooperation and exchange information) and the development of trust and commitment as well as their effects on long-term orientation, satisfaction and performance. The unit of analysis is the dyadic relationship, assessing separately franchisor's and franchisees' perspectives, and comparing similarities and differences across perspectives (Anderson & Narus, ; Jap, ). The model proposed has been tested with 107 franchisors and 102 franchisees operating both in the retail (food and beverages, fashions, furniture …) and the service sector (estate agencies, education, dry-cleaner's, diverse services …) in the Spanish franchised distribution system. Results show that both commitment and trust are key variables for long-term relationship success from the franchisors perspective, but that from the franchisees side, trust is the key variable for relationship success.     

The Psychology of Billing

Contracting between tax entities and tax professionals occurs millions of times every year, yet little is known about the nature of these economic interactions. This study examines the effect of commonly occurring contextual factors on tax professionals’ billing decisions for tax research. These contextual factors are unrelated to the tax research itself and the time it takes to conduct the tax research, but we find that billing decisions are strongly influenced by the three non‐time‐related contextual factors that we manipulate. Initial client volume impacts amounts billed for tax research, with lower initial client volume resulting in higher per client fees. Further, we find that initial billing decisions serve as value billing benchmarks for unanticipated subsequent clients who benefit from research conducted for initial clients. As a result, subsequent clients are billed higher fees when they follow a smaller number of initial clients. We also find that client referrals are billed higher fees than nonclient referrals because professionals attempt to avoid making initial clients feel as though they have been treated unfairly relative to subsequent clients who would otherwise be billed lower fees. The results of this study are relevant beyond the traditional confines of accounting research—they are relevant to the millions of tax entities that contract with tax professionals each year.