Regulatory incentives and financial reporting quality in public healthcare organisations

English National Health Service Foundation Trusts are subject to a regulatory regime in which the level of monitoring and intervention is determined by performance against two key performance metrics: a ‘financial risk rating’, based on a number of performance metrics, such as the reported surplus margin and return on assets, and a ‘prudential borrowing limit’. In this paper, we investigate the variation in financial reporting quality, proxied by discretionary accruals, with the incentives introduced by this regime. We find: first, that discretionary accruals are managed to report small surpluses; second, that, consistent with the avoidance of regulatory intervention in both the short and medium term, discretionary accruals are more positive when pre-managed performance is below intervention triggering thresholds and more negative when well above threshold; third, that, despite a move away from financial breakeven as the primary performance objective, there remains an aversion to small loss reporting. We further find that the level of discretionary accruals is driven by two metrics of strategic significance: the surplus margin (a measure of retained earnings) and the prudential borrowing limit (a measure of borrowing capacity).     

The cornerstones of competitive advantage: A resource-based view

This paper elucidates the underlying economics of the resource-based view of competitive advantage and integrates existing perspectives into a parsimonious model of resources and firm performance. The essence of this model is that four conditions underlie sustained competitive advantage, all of which must be met. These include superior resources (heterogeneity within an industry), ex post limits to competition, imperfect resource mobility, and ex ante limits to competition. In the concluding section, applications of the model for both single business strategy and corporate strategy are discussed.     

Success factors for collaborative product development: a study of suppliers of information and communication technology

It is apparent that more and more organizations are embarking on collaborative ventures to develop products. This is particularly evident in Information and Communication Technology (ICT) sectors, so much so that part of the 'received wisdom' of ICT companies is that collaboration is the preferred route for product development. The benefits of collaboration have been well documented and are linked to the complexity and costliness of product development and the need for inputs from wide and varied areas of expertise as well as shorter lead times for product development. But the risks and costs of collsborative product development have been less well defined. In this paper, it is argued that the alleged rewards of collaboration may not be experienced in practice and that collaboration can lengthen the product development process, add to the cost of product development and prove difficult to control. However, management practice can facilitate the effective outcome of collaborative product development and the critical factors affecting the likelihood of successful management practice are presented here.     

Factors influencing cultural event tourism in Nelson Mandela Bay,South Africa

ABSTRACT

Cultural tourism has established a market share of approximately 20% in the tourism sector globally. In addition, it fosters socio-economic benefits for a destination and its residents. This study explores residents’ attitudes towards cultural events in Nelson Mandela Bay (NMB), South Africa, to enhance the destination image and induce stakeholder engagement. In this study, 3659 residents of NMB either completed an online questionnaire or a face-to-face interview. The results indicate that the residents of NMB have a positive attitude to cultural events. Notably, the demographic profile of the respondents is representative of the country and may be transferred to a national level to assist the South African tourism industry. The findings clarify insights to the market needs and cultural differences that may be used to tailor unique selling propositions in culturally diverse destinations.     

Paths of learning, grieving and transforming

This paper looks at the internal paths people walk as they are engaged in learning about future generations. The deep personal relevance and immediacy of the topic engage students as whole persons in learning processes that transform their perspective on the world and on themselves. Facilitating students as they go through this transformative learning cycle is the task of the teacher. Furthermore, although not widely recognized as such, grief is a part of any learning process as people let go of one thought, perspective or behavior, and try on a different one. When the topic is emotionally loaded with such profound implications as that of the future of our planet, grief becomes even more intense for the learner. Thus educators benefit from an understanding of both learning and grieving processes as they teach courses about future generations. By acknowledging the mourning associated with transforming the learners' world view, educators may assist students to move beyond immobilizing blocks and despair to creative action. This paper explores the normal experiential learning cycle and natural grief processes as they are played out within students while learning about global futures.     

Black women who head families: An economic struggle

Black families headed by women have much lower incomes and higher poverty rates than almost any other type of family. They are disproportionately dependent on welfare and are less likely to receive support from absent fathers. This is a very serious problem for the black community because of the increasing proportion of black families headed by women alone. This article outlines the dimensions of the economic problem and reviews the likely impact of recent policy changes on these families.