Vertical disintegration and the life-cycle of firms and industries

T0he degree of vertical integration experienced by a firm is an important managerial decision variable. It is an issue where there is a distinct lack of unanimity in studies on the economics of organizations. Moreover, studies have tended to ignore the complementary feature of vertical disintegration. This study examines the basic Stigler hypothesis that vertical disintegration is the typical development in growing industries. Using UK data on divestments, the results initially indicated some positive relationship between industry growth and vertical divestment activity; however, when different categories of asset transfer were examined, the Stigler view was rejected in favour of a null hypothesis.     

European Works Councils in Central and Eastern Europe: varieties of institution building among French service sector multinationals

European Works Councils (EWCs) were launched as important institutions capable of helping workers coordinate responses to multinational corporations (MNCs). Euro‐optimists hoped they might help the transfer of the European social model to Central and Eastern Europe (CEE). Euro‐pessimists believed they lacked the capacity to be effective and suggested EU enlargement might encourage ‘a race to the bottom’ in Western Europe. This article focuses on the behaviours of eight service sector French‐origin multinationals in Bulgaria, Hungary and Poland. It finds that they generally adapt to the host country social model. However, while most keep their subsidiaries in separate compartments, investing little in EWC institution building, some are more ready to invest in stronger EWC institutions and to use them as an integrating tool.     

A Transdisciplinary Exploratory Model of Corporate Responses to the Challenges of Environmental Sustainability

Global surveys of business leaders identify the environment as a major issue of concern, but uncertainties about how to address the challenges of environmental sustainability are cited as a significant inhibitor to business responses. Persistent levels of corporate uncertainty in this domain may be due to the complexity of issues and difficulties in meaningfully capturing this complexity. Calls have been made for new ways to produce knowledge about complex societal challenges, including environmental sustainability. This paper aims to reduce business uncertainties and to stimulate business and research initiatives. The paper describes a field study of a global corporation's pioneering responses to environmental sustainability. The study highlights academic and practitioner collaboration to generate, transfer and implement new knowledge through an innovative research approach. The outcome is a transdisciplinary, exploratory model, presenting a progression of integrated activities and processes within eight categories of corporate responses. Implications for research and practice are considered. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.     

Trusting and Monitoring Business Partners throughout the Relationship Life Cycle

Purpose: The goal of this research is to understand the theoretical and empirical confluence of multi-dimensional trust with the role of monitoring as business partnerships unfold and evolve dynamically throughout the course of the relationship life cycle.

Methodology: A pilot study is run in which in-depth interviews are conducted with managers to glean their insights regarding the theoretical questions and to verify terminology for survey items. A large-scale survey study is then conducted to test hypotheses about the relationships among the focal constructs. The participants in both studies are real procurement professionals reporting on their primary supplier relationships. The qualitative study and the samples of real world managers enhance the external validity of this research.

Findings: In early stages of business relationships, monitoring and benevolence trust interact to positively impact business performance. Continued monitoring in later stages interact with benevolence trust to performance detriment. Conversely, monitoring and competence aspects of trust hurt business performance in earlier life stages.

Research Implications: Theoretical frameworks that include the constructs of multidimensional trust, monitoring, and relationship life cycle stages can build on the nuanced 3-dimensional contingencies established in this research. In particular, this research furthers the concepts of monitoring and the relationship life cycle.

Practical Implications: There is a time and a place to trust one's business partners, and a time and a place to verify their trustworthiness. As business partnerships are forged, monitoring and benevolence trust can be particularly fruitful.

Contribution: In this research, the authors build on the business marketing literature that has begun to delineate the benevolence and competence dimensions of trust in business relationships; they demonstrate the role that partner monitoring has in maintaining business commitments; and establish how these effects are modified over the stages of the relationship life cycle; i.e., from exploration, to build-up, maturity, and decline.     

Beyond Seniority-Based Systems: A Paradigm Shift in Korean HRM?

This study compares work organization and labour relations at three assembly plants: the Ford Escort plant in Wayne, Michigan; the Ford Escort-Tracer plant in Hermosillo, Mexico; and the Mazda-Ford joint venture in Flat rock, Michigan. All three plants are commonly understood to be ‘team concept’ work environments; all three also exhibit a common technical organization derived from the same Mazda-Ford engineering set-up. However, the social organizatin of each plant's work teams is substantially different. The single most important variable in shaping these contrasting outcomes was the role of the union: aggressively involved in the earliest planning for team production at Wayne, while arriving late at Flat Rock and adopting a passive role. When the UAW local at Flat Rock elected more militant leaders, this evolving dynamic pushed in the direction of worker-centred teams; conversely, when the union in the Ford Hermosillo plant was weakened by company reprisals following a bitter strike, management was free to push in the direction of supervisor-centred teams.     

Non-targeted customers in individualistic versus collectivistic cultures

This research explores non-targeted customers in two countries displaying dominant collectivistic and individualistic characteristics. Using China and the UK as research contexts, the study investigates non-targeted customers' perceptions and responses to multiple marketing tactics (MT)' effectiveness. Non-targeted customers are interesting, as they exhibit feelings of inequity and unfairness, influencing their perceptions, responses, and behaviors. Given continuing globalization of retail services and diverse markets, more research that provides insights into cross-cultural shopping behavior is needed. The study fills an important gap in examining non-targeted customers in a cross-cultural framework. Findings reveal that non-targeted collectivists perceive marketing tactics differently than individualists. While the first group responds to price and reputation, the latter group responds to service, communication, and customization. The study posits that collectivists' concerns with loss of face, equality, and status evoke self-expression such as extensive price and reputation comparisons. Theoretical and managerial implications are discussed and future research directions offered.     

Remuneration practices in the UK hospitality industry in the age of the national minimum wage

This article examines why the introduction of the National Minimum Wage has been less disruptive in hospitality than had been anticipated. It shows that in hospitality establishments pay rates are not the outcome of managerial decision making alone, but are influenced by broader economic and social processes. Furthermore, key aspects of the ‘total reward system’ held to exist in hospitality, the provision of live-in accommodation for workers and the practice of tipping, on which there are specific National Minimum Wage regulations, are generally not treated as remuneration. This highlights the need for a reconsideration of how remuneration practices in hospitality operate.     

Conversations during purchase consideration: sales assistants and customers

Conversations among and between our fellow customers and sales personnel provide social and informational exchange to support material exchange in retail settings. A 2 x 2 factorial field experiment (in a ladies' clothing retailing context) was undertaken to compare perceptions of the effects of oral contributions made by sales assistants, and by fellow customers, on levels of satisfaction, purchase intentions and credibility during the service experience. Conversations with other customers are shown to lead to greater perceived satisfaction in the consideration phase than those with sales assistants. Sales assistants are confirmed as less credible, and the notion that spoken interactions with assistants may lead to increased purchase intention is rejected.