Critical realism and constructivism in strategy research: toward a synthesis

We agree with Kwan and Tsang (2001) that critical realism represents an important point of epistemological departure from mainstream realism, and that it has the potential to inform strategy research. To that end, Kwan and Tsang's argument for a critical realist perspective is valid. There however exist substantial nontrivial differences between constructivism and critical realism. While critical realism contests some of the default assumptions of empiricism and realism which treat social systems as closed systems, it is still predicated upon an inherent order of things that is graspable by research. Constructivism instead focuses on the manner in which researchers constitute theories in the act of describing them. This important distinction makes constructivism far more of a departure from empiricism than critical realism, and therefore it has a different set of implications for strategy research. Copyright © 2001 John Wiley & Sons, Ltd.     

Testing the Value-Pragmatics Hypothesis in Unethical Compliance

We test conformity-related values applying the value-pragmatics hypothesis by evaluating how personal values related to compliance moderate the relationships between situational factors and unethical decisions. We examine the direct and indirect effects of the values of traditionalism, conformity, and stimulation, as they combine with the situational factors of rewards and punishments in the person–situation interaction model. We find strong support for the value-pragmatics view of ethical decision making and further build support for the person–situation interaction model.     

Using participatory rural appraisal and participatory research and extension in a post-independence environment: a case from East Timor

A participatory rural appraisal (PRA) conducted in East Timor in 2004 as part of an agricultural development project provided the basis for a number of community-based participatory extension initiatives. The PRA involved several communities throughout a watershed and also served as a training exercise for local agriculture ministry staff. Despite the poverty of many of the communities involved, and in contrast to published literature on the local agricultural situation, farmers clearly expressed their need for more marketable crops and alternative sources of livelihoods. Their desires contrasted with the project's initial assumption that the major need was for increased production of staple crops to alleviate food scarcity. The project consequently branched out from concentrating on basic agronomy of staple crops into developing marketable crops, improving livestock production and facilitating development of a local business. Farmers' groups were set up to allow farmers to develop their own agricultural enterprises. Some ministry staff who participated in the project welcomed the opportunity to move from the traditional authoritarian extension system set up under Indonesian colonial rule to a more collegial and educational system. The breakdown of institutions and lines of authority following independence may create new opportunities for participatory development in newly independent states.     

A guide map to the terrain of gift value

This article integrates a broad range of gift‐giving literature into a conceptual framework that puts the all too often overlooked construct of personal value at its core. Although there have been substantial contributions from the fields of anthropology, sociology, economics, and consumer behavior, efforts to model gift giving have failed to put the value of the gift‐giving experience at the center of the exchange. Within this article, a model of the gift‐giving experience that overcomes this critical shortcoming is proposed. The model establishes clear categories for breaking the giving process into easily examinable elements, and it is argued that although the concept of value is not a simple one, it should be central to any examination of the gift‐giving phenomenon. © 2001 John Wiley & Sons, Inc.     

An Empirical Analysis of Financial and Non-financial Managers' Remuneration in Small and Medium-sized UK Enterprises

This paper examines empirically the influences on managerial remuneration in a sample of 97 UK small and medium-sized enterprises (SMEs). The empirical analysis, based on data obtained from interviews with middle (i.e. non-director level) managers and the published financial records of their employing firms lodged at Companies House, examines the relative explanatory power of a number of human capital, job/firm specific and external labour market variables. In addition, the sample was partitioned into two groups, one comprising 29 financial managers and the other comprising 68 non-financial managers. Separate wage equations were estimated for the two groups to determine whether the factors that influence remuneration differ between the two groups of managers. For the overall sample, the results indicate that the managers' ages, qualifications and previous careers and the size, growth, industry and location of their employing firms are able to explain a large proportion of the variance in remuneration. For the sub-sample analyses, firm profitability, (several aspects of) size, and the managers' career histories are of relatively greater importance in respect of financial managers' remuneration, whilst asset growth, industrial sector and location seem to be of more importance for the non-financial managers. These results are viewed as being broadly consistent with the expectations derived from the extant theoretical and empirical literatures on managerial remuneration.     

Is liquidity the missing link?

Durand et al. (2006a ) argue that the Australian market is both internationally integrated and domestically segmented. They find that the US‐based three‐factor model captures returns of the largest stocks in Australia (evidence of international integration), but that it is unable to account for the returns of the smallest stocks (evidence of domestic segmentation). This study resolves the puzzle left by Durand et al. (2006a) . Incorporating a liquidity factor provides the missing link in their analysis: it results in a model that permits both the international integration of the largest stocks and the model can account for the returns of the smallest stocks. Our analysis highlights the important role of liquidity in Australian asset pricing.     

Simulated financial dealing room: learning discovery and student accountability

This paper identifies the effectiveness of a simulated treasury dealing room for teaching and learning. It uses a presurvey and a postsurvey to establish student perceptions of learning effectiveness. It concludes that students believe that the dealing room: (i) improves their opportunities to apply theory; (ii) provides better learning than lectures; (iii) is more effective than individual learning; (iv) improves student monitoring of learning effectiveness; and (v) improves student abilities to recognize ethical issues, develop alternative solutions to ethical problems, and evaluate solutions to ethical problems from a moral point of view. Student motivation is enhanced by: (i) the high value they place on dealing room learning; (ii) their preparedness to participate; (iii) rapidly reduced levels of anxiety about trading; and (iv) the learning resources provided.     

The Law and Economics of Costly Contracting

In most of the contract theory literature, contracting costsare assumed either to be high enough to preclude certain formsof contracting or low enough to permit any contract to be written.Similarly researchers usually treat renegotiation as eithercostless or prohibitively costly. This article addresses themiddle ground between these extremes, in which the costs ofcontracting and renegotiation can take intermediate values andthe contracting parties can themselves influence these costs.The context for our analysis is the canonical problem of inducingefficient relation-specific investment and efficient ex posttrade. Among our principle results are: (i) The efficiency andcomplexity of the initial contract are decreasing in the costto create a contract. Hence the best mechanism design contractscan be too costly to write. (ii) When parties use the simplercontract forms, they require renegotiation to capture ex postsurplus and to create efficient investment incentives. In somecases, parties want low renegotiation costs. More interestingis that, in other cases, parties have a strict preference formoderate renegotiation costs. (iii) The effect of contract lawon contract form is significant but has been overlooked. Inparticular, the law's interpretive rules raise the cost of enforcingcomplex contracts, and thus induce parties to use simple contracts.Worse, the law also lowers renegotiation costs, which furtherundermines complex contracts and is also inappropriate for someof the simpler contracts.