What is the meaning of ‘talent’ in the world of work?

The ongoing confusion about the meaning of ‘talent’ within the world of work is hindering the establishment of widely accepted talent management theories and practices. The aim of this paper is to contribute to the literature on talent management by offering an in-depth review of the talent concept within the specific context of the world of work, and proposing a framework for its conceptualization. We group different theoretical approaches to talent into ‘object’ (i.e., talent as natural ability; talent as mastery; talent as commitment; talent as fit) versus ‘subject’ approaches (i.e., talent as all people; talent as some people) and identify dynamics existing within and between them, as well as implications for talent management theory and practice. Finally, we discuss different avenues for further research aimed at developing the talent—and consequently, the talent management—construct further.     

Market Response to Investor Sentiment

This paper reconsiders the effect of investor sentiment on stock prices. Our main contribution is that, in addition to the intermediate term return predictability, we also analyze the immediate price reaction to the publication of survey‐based investor sentiment indicators. We find that the sign of the immediate market response is the same as that of the predictability at intermediate time horizons. This is consistent with underreaction to cash flow news or with investor sentiment being related to mispricing. It is inconsistent with the alternative explanations of a rational response to cash flow news or sentiment indicators providing information about future expected returns.     

Call for papers: Special Issue of International Journal of HRM

Though women remain under-represented among expatriate managers due to a range of organisational and cultural barriers in selection and individual relocation concerns, they have begun to pursue alternative routes towards a global career such as frequent travel and undertaking domestic positions with international development and community development responsibilities. In this paper, we explore the perceptions that Middle Eastern and North American women have of traditional and new trajectories in global work and careers and conclude that increased flexibility allows women to pursue global development opportunities differently throughout their lifetime careers, permitting them to adapt to work–life circumstances. Thus, our research provides new insights into the nature and dynamic of the nature of women's global work and careers.     

Positive Accounting Theory as a Lakatosian Research Programme

‘Positive accounting theory’ fails to meet Popper's falsificationist criteria for scientific inquiry. This paper argues, however, that Lakatos' ‘methodology of scientific research programmes’ is superior to Popper's falsificationist methodology, and that ‘positive accounting research’ does meet Lakatos' criteria for ‘scientific' status. Within Lakatos’ philosophy of science, however, this claim does not necessarily represent an endorsement of positive accounting theory.     

Freedom of Choice in Technology Strategy? An Analysis of Technology Strategy in the Large Commercial Aircraft Industry

Many companies experience difficult situations as a result of their selected strategy. Strategic management theories implicitly assume that companies have a free choice in setting their strategy. Hence, when companies experience difficult situations this is because of management inadequacy. It is questionable whether companies always have a free choice. This research examines this issue by examining the new product strategies of the two main competitors in the commercial aircraft industry. The development of the A380 aircraft was selected to determine to what extent the companies had a choice in setting their product development strategies. The conclusion is that neither has the alleged freedom for setting its strategy. Implications of this finding are that the strategy theory needs to be adjusted for this choice issue, and that management should not always be held fully responsible for the developing events.     

HR in the small business enterprise: Assessing the impact of PEO utilization

Within small businesses, organizational leaders are themselves often responsible for the HR function, an area where they typically have limited training and experience. Not surprisingly, small business leaders have raised concerns about the quality of HR programs in their firms and the fact that HR consumes scarce managerial time. While professional employer organizations (PEOs) emerged in response to such concerns, much controversy exists as to whether and how small businesses benefit from PEO utilization. Using a survey of more than 740 small businesses, we examine the relationship between PEO utilization and two key small business outcomes: managerial time required by HR activities and satisfaction with HR outcomes. Our results indicate that firms not using a PEO reported significantly lower levels of satisfaction with HR outcomes than firms that used a PEO for a limited set of transactional services and firms that used a PEO for both transactional and strategic HR services. Among firms using a PEO, satisfaction with HR outcomes was significantly higher among firms that obtained a broader set of transactional and strategic HR services. Firms that used a PEO also reported that HR consumed significantly less managerial time relative to leaders in firms that made no use of a PEO. However, there was no significant difference in the time demanded by HR between firms that used a limited set of transactional services and those that used a broader range of transactional and strategic services. Implications for the role of PEOs and their use within small businesses are discussed. © 2005 Wiley Periodicals, Inc.     

How Do Investors' Expectations Drive Asset Prices?

Based on an extension of the process of investors' expectations to stochastic volatility we derive asset price processes in a general continuous time pricing kernel framework. Our analysis suggests that stochastic volatility of asset price processes results from the fact that investors do not know the risk of an asset and therefore the volatility of the process of their expectations is stochastic, too. Furthermore, our model is consistent with empirical studies reporting negative correlation between asset prices and their volatility as well as significant variations in the Sharpe ratio.     

Externalities of R&D Expenditures

Innovation is generally recognized as a major source of economic growth. R&D investments explicitly aim at generating innovations and creating knowledge. Since knowledge has certain public good properties, positive externalities are likely to exist. In this paper, we extend well-known concepts from the input-output literature (backward multipliers) to indicate at which commodities stimuli should be targeted to enhance R&D and its positive externalities in the economy as a whole. Next, we argue that there may also be negative externalities of R&D, due to increased prices. This issue can be studied by means of forward multipliers. Both concepts are applied to the United States, 1977-90.