Sourcing strategies of U.S. service companies: a modified transaction–cost analysis

Global procurement of services has been receiving an increasing amount of managerial attention in recent years. Service firms seem to have begun sourcing part of their service activities from abroad in much the same way as manufacturing firms have sourced components and finished goods in the past 30 years. However, little is known about the nature of service sourcing strategy. In this study, we employ a modified transaction–cost analysis to examine empirically the locational (domestic vs. global sourcing) and the ownership (internal vs. external sourcing) aspects of service sourcing strategy. In addition, performance implications on both the locational and ownership aspects of service sourcing are investigated. The results show that, similar to components and finished goods procurement, supplementary services are sourced globally, either internally or externally. Furthermore, the relationship between asset specificity and internal sourcing of supplementary services is moderated by the level of inseparability and transaction frequency. Finally, internal sourcing and foreign sourcing of supplementary services are negatively related to a service’s market performance. Copyright © 1999 John Wiley & Sons, Ltd.     

The Peter Principle resuscitated: are promotion systems useless?

The challenge of developing and maintaining an effective organisation is intimately linked with HR activities that include selecting and motivating employees. Many organisations engage in an internal selection process designed to fill upper level positions with employees who have proven their worth at a lower level in the organisation. However, some observers have questioned whether this approach actually results in optimal individual and organisational performance. Using the Peter Principle as a starting point, this article examines the evidence for problems with merit‐based promotions, as well as various explanations that have been advanced for why these problems occur. This article then proposes a new model, based on contemporary management theory and evidence, which addresses the question of why promotions fail.     

Interethnic relations,informal trading networks,and social integration: imitation,habits, and social evolution

The ethnically homogeneous middleman groups (EHMGs), which are informal trading networks, are ubiquitous in less-developed economies where the legal infrastructure for contract enforcement is not well developed. This paper develops a formal model of social interaction among members of the EHMG as well as in more general situations in a multi-ethnic or multi-cultural society consisting of identifiable ethnic or linguistic groups. Behavioral patterns are transmitted between generations and altered via imitation in social contacts. The model demonstrates how different discriminatory behavioral patterns can evolve and persist over time. One result is that the trust between such groups can increase due to a higher frequency of inter-group contacts. In concluding the paper, we speculate about how the model can be expanded to include changes in legal structures, especially contract law. This could lead to an increase in the trust between the different groups.     

The Aggregate Demand Curve and Its Proper Interpretation

Textbook authors, in their presentations of aggregate demand–aggregate supply, are admonished to set their houses in order. The writers suggest the continued usefulness of the traditional “Keynesian cross” model as a pedagogical device and present a version that they allege to be superior to the popular AD–AS models found in many contemporary texts.     

Exploring transport to arts and cultural activities as a facilitator of social inclusion

This paper explores the relationship between travel and social inclusion in relation to a relatively rarely examined group of travel destinations—arts and cultural activities. This paper examines travel behaviour to arts and cultural activities and how this relates to social inclusion. Research literature associated with these issues is examined and then an analysis of a household travel survey in Melbourne, Australia, is undertaken to explore how travel to arts and cultural activities varies by income, car ownership and location. The paper outlines a range of evidence linking participation in arts and cultural activities and positive outcomes for social inclusion. Arts and cultural activities do not fit well into traditional household travel survey definitions of trip purposes. There is also no definitional difference between travel to activities and ‘participation’ or ‘attendance’ in arts and cultural activities. This is unfortunate since social outcomes may vary by participation or attendance. Travel survey analysis shows that like other activities trip rates to arts and cultural activities increase with income. However higher participation is demonstrated for zero- and one-car households, which contrasts with previous research of work, education and social travel. Higher participation is also demonstrated for those living in inner parts of the city. The paper suggests that most travel to arts and cultural activity is quite localised and hence much travel may be led by the diversity and range of local opportunities provided. These are particularly high in inner parts of the city. A high share of travel is also demonstrated for older people, who are thought to have the time and desire for greater participation in arts and cultural activities.     

Unions and Gender Pay Equity in Academe: A Study of U.S. Institutions

This paper uses 1994-95 faculty salary data from over 1,100 four-year U.S. academic institutions, about one-fourth of them with collective bargaining agreements, to ask if faculty unions make a difference to gender pay equity. Average gender salary differences are negative at every rank and at every category of U.S. institution with or without collective bargaining agreement. Unions may improve gender salary differentials somewhat, particularly at the assistant professor level. There is no evidence that this gain will be lost at higher levels, and mixed evidence that further gains occur for women at the full professor level. The most pervasive and robust consequence of unions is to increase the positive impact that higher proportions of women at senior faculty ranks make on relative salaries at the assistant professor level. However, the influence of these higher-ranked women on gender salary inequalities at the associate and full levels is lower in union schools than nonunion schools. By reducing the flexibility of existing salary structures, collective bargaining apparently reduces the influence of senior women faculty on the salaries of current women faculty members while increasing their attention and influence at entry levels.     

Paul Mason Fotsch. Watching the Traffic Go By: Transportation and Isolation in Urban America

In this well-meaning but deeply flawed book, Paul Mason Fotschexamines what he calls "narratives that promote a reliance onthe automobile."(2) Fotsch's Watching the Traffic Go By examinesa series of different events, times, and ideas that he claimshave had a hegemonic power in American popular culture. Thisbook draws on the disciplines of cultural studies and history,and closely reads various books, movies, and events. It movesbetween exploring transport systems (particularly the