An analysis of recruitment,training and retention practices in domestic and multinational enterprises in the country of Brunei Darussalam

This paper studies the behavioural differences in the recruitment, training and retention practices of domestic enterprises (DEs) versus multinational enterprises (MNEs) in the country of Brunei Darussalam. Hypotheses from literature survey predict MNEs to be more stringent in their recruitment and training and rigourous with promotion practices. Results show this is to be largely true. MNEs are found to be more rigourous in recruitment and place more emphasis on such traits as candidates' ‘devotion to task’, ‘self-motivation’ and ‘independent judgement’. MNEs were found to rely more on internal appointments. MNEs place more emphasis on training; they also emphasise a stronger work culture by relying on ‘induction by socialisation’ and ‘buddy system for mentoring’. When analysed by age, older firms were found to place more importance on language and commitment. They also rely on training via the buddy system and on external appointments for senior posts. Large firms place emphasis on employees' willingness to travel and on work experience in other countries as the main recruitment criteria. Large firms also believe in external appointments for senior positions. The study, which is one of few of its kind conducted in non-Western environment, and the only one in the context of Brunei, adds to our understanding of human resource practices in the context of two different genres of enterprises and has implications for future research.     

Sentimental fools: a critique of Amartya Sen’s notion of commitment

Commitment is problematic because one sometimes pursues it against one’s interest. To solve it, the paper proposes a distinction between ‘non-binding’ and ‘binding’ commitments. Non-binding commitment is about ambition, such as becoming a great chef, which bolsters welfare in the pecuniary sense as well as self-respect. In contrast, ‘binding commitment’ is about honesty. While it diminishes welfare, it augments self-integrity. The neoclassical view reduces both commitments to interest, while the multiple-self approach separates both commitments from interest. The separation permits the confusion of sentimental fools, who enter commitments without regard to interest, with rational sentimentalists, who take interest into consideration.     

Development patterns of oil exporting countries

This study analyzes empirically the impact of rising income levels on the economic structure of several oil producing and exporting countries during the 1970s and early 1980s. The results indicate that the agricultural sector showed declining rates of growth, and negative growth elasticities were indicated by nine of the ten countries included in this study. On the other hand, the industrial sector in all countries showed positive growth to varying degrees. However, this growth may be more policy-induced than real growth. Disparity and inequality ratios were highest in Middle East and North African countries.     

Contracts offered by bureaucrats

We examine the power of incentives in bureaucracies by studying contracts offered by a bureaucrat to her agent. The bureaucrat operates under a fixed budget, optimally chosen by a funding authority, and she can engage in policy drift, which we define as inversely related to her intrinsic motivation. Interaction between a fixed budget and policy drift results in low‐powered incentives. We discuss how the bureaucrat may benefit from stricter accountability as it leads to larger budgets. Low‐powered incentives remain even in an alternative centralized setting, where the funding authority contracts directly with the agent using the bureaucrat to monitor output.     

Does the famine experience of board chair hamper innovation?

This study examines whether and how the famine experiences of board chairs influence the innovation of their firms. Results using a sample comprising 8882 firm-year observations from Chinese firms during the period 2003 to 2017 reveal that the board chair's famine experience has a negative effect on innovation. This negative effect is strengthened by famine intensity and high uncertainty. The obtained results are robust to alternative measures, endogeneity issues, omitted variables, and sample selection bias. Additional analyses showed that the relationship between board chair's famine experience and innovation is mediated by cash holdings and R&D investment. The overall results contribute to imprinting theory by explaining that early-life famine experiences of board chairs create survival threat imprints among them, eventually affecting their later-life behaviors. The findings also provide implications by highlighting how the early-life traumatic experiences of executives adversely influence their firms outcomes.     

Board social capital and stock price crash risk

Review of Quantitative Finance and Accounting - We show how board social capital influences stock price crash risk. Considering that directors are embedded in two kinds of social...