The drama of interaction within business networks

We propose a dramaturgical approach to the understanding of business networks with particular reference to IMP research. Our purpose is to focus upon immeasurable processes and practices too often neglected by the tangible, variance modeling of business networks (Colville & Pye, 2010; Rinallo & Golfetto, 2006). This paper follows our call to take language and communication more seriously (Ellis, Lowe & Purchase, 2006). The inventive fluidity of communication, in the form of dramaturgy, when added to the rather more entitative IMP model of Actors, Resources and Activities (Håkansson & Snehota, 1995) creates a more processual, theatrical ‘scenario’ of Actor-Characters, Resource Props and Scripted Activities. We employ the dramaturgical approach of Goffman (1956, 1961) which, in keeping with the approach of the IMP Group is centrally attentive to social interaction. In order to illustrate the potential contribution of this approach, we apply this dramaturgical perspective to the interactions described in a published case study (Helander & Möller, 2007, 2008a, 2008b).     

International Political Economy and Industrial Relations

The field of international political economy offers valuable insights into global economic integration, trade liberalization, global governance and the nature and activities of international organizations and regimes. Despite their impact on industrial relations, industrial relations theory has not wholeheartedly engaged with these phenomena or this sister field. This paper argues that the field of international political economy offers much to industrial relations, particularly in terms of understanding the nature and impact of internationalization and emerging global governance. The potential in a closer relationship between the two fields is illustrated by the example of the international labour standards regime and its principal organization, the International Labour Organisation.     

Board Pay and the Separation of Ownership from Control in U.K. SMEs

This paper examines Board pay for a sample of 571 U.K. SMEs from 1991 to 1995. Approximately half of the sample were closely-held (i.e., owner-managed) firms which allowed empirical testing of models of the relationship between Board pay and ownership from control characteristics. Consistent with their need to align shareholder and manager incentives, the results indicate that the change in nonclosely-held SME Board pay is significantly related to both external market pay comparisons and “benchmark” profits. This contrasts with the empirical results for the closely-held firms where Board pay awards are typically highly sensitive to current total profits but wholly unrelated to external market pay levels.     

The recession of 1990: An Austrian explanation

Conclusion Deficit spending and money-supply expansion do not eliminate recessions. Theycause recessions. This fact will never be understood unless economists and government policymakers stop trying to micro-manage the economy, and start studying what their actions are doing to the structure of production. Heavy inflation of the money supply followed by sharp cutbacks change the rules right in the middle of the game for millions of businesses in the economy. For the last 40 years, government expansionary policies have stimulated industries to create false and untenable investments. These policies are followed by government corrective actions that destroy those same projects—waste the billions of dollars invested in them, and throw millions out of work. Business cycles are not an essential feature of market capitalism. They are the result of government interference with the market. In the misdirection of labor and the distortion of the structure of production during past business cycles, it was fairly easy to point to the places where the excessive expansion had occurred because it was, on the whole, confined to the capital goods industries... In contrast, the present expansion of money, which has been brought about partly by means of bank credit expansion and partly through budget deficits, has been the result of a deliberate policy, and has gone through somewhat different channels... I do not doubt that in a sense we have today the same kind of phenomenon, but the over-expansion, the undue increase of labor employed in particular occupations, is not confined to a single, clearly defined block such as the capital-goods industries. It is now spread much more widely, and the distribution is much more difficult to describe. It is a field I would wish some statistically minded economist would investigate in order to show how the process operated in particular countries. Friedrich A. Hayek     

ERPs as 'technologies-in-practice': social construction, materiality and the role of organisational factors

Enterprise Resource Planning systems (ERPs) often fail to deliver the organisational benefits anticipated. This paper uses Orlikowski's 'technology-in-practice' framework to analyse the impact of an ERP on branch managers in a large bank. While this framework provides important insights into the impact of ERPs, the case also highlights the significance of organisational factors in shaping how users enact technology at work.     

How effective could sanctions against the Soviet Union be?

Zusammenfassung Wie wirksam k?nnten Sanktionen gegen die Sowjetunion sein ? — Der Zweck dieses Aufsatzes ist es, zun?chst optimale Strategien zu untersuchen, die nicht-kausale Wirkungen zulassen, wie sie in einem dynamischen und unbeschr?nkt nicht-kooperativen Spiel impliziert sind. Au\erdem soll die Bedeutung des Einwands der “Nicht-Kausalit?t” in der Praxis beurteilt werden. Wir verwenden ein Optimierungsverfahren, um optimale westliche Handelssanktionen gegenüber der Sowjetunion zu bestimmen. Unsere Ergebnisse deuten darauf hin, da\ die sowjetische Wirtschaft tats?chlich mehr von einer wirtschaftlichen Entspannung, die den Handel verst?rkt, zu befürchten hat als von einem Handelsembargo. Aber die Hauptwaffe ist die Drohung eines zukünftigen Embargos, die deshalb wirksam wird, weil die optimalen sowjetischen Reaktionen auf dieses erwartete Risiko zu einer rapiden Verschlechterung der laufenden Handelsbilanz führen. Der Handelsbilanz kommt ein hoher Stellenwert zu, weil die Entwicklungsstrategie zum Erreichen der sowjetischen Ziele einer Erh?hung von Wachstum, Produktivit?t und Konsum von der Einfuhr ausl?ndischer Güter stark abh?ngt und daher automatisch der westlichen Seite ein wichtiges Pfand in die Hand gibt.

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Résumé Quelle efficacité pourraient avoir des sanctions contre l’Union Soviétique ? — Le but de cet article est, premièrement, d’examiner des stratégies optimum qui considèrent les effets non-causaux implicitement contenus dans un jeu dynamique et sans restriction non-coopératif et, deuxièmement, de donner une estimation de l’importance de la critique ?non-causalité? en pratique. Nous appliquons une procédure d’optimisation pour désigner des sanctions commerciales optimum d’ouest contre l’Union Soviétique. Nos résultats suggèrent que l’économie soviétique en effet devrait craindre plus une détente économique qui augmente le commerce extérieur et moins un embargo commercial. Mais l’arme principale est la menace d’un embargo futur parce que les réactions soviétiques optimales à ce risque anticipé causent une détérioration très rapide de la balance courante de commerce extérieur de l’U.R.S.S. Cette balance est très importante parce que la stratégie de développement pour atteindre le but soviétique d’augmenter la croissance, la productivité et la consommation implique des demandes supplémentaires à la balance commerciale.

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Resumen Cuál es el grado de eficiencia de las sanciones contra la Unión Soviética? — La intención del trabajo es en primer lugar el examinar estrategias óptimas que tengan en cuenta efectos no causales implícites en un juego dinámico no cooperativo sin restricciones y en segundo lugar el presentar una valoración de la importancia de la critica de ?falta de causalidad? en la práctica. Se emplea un procedimiento de optimización para dise?ar sanciones comerciales óptimas contra la Unión Soviética. Los resultados ponen de manifiesto como la Unión Soviética ha de temer más una paz económica que incremente el comercio que un bloqueo comercial. El arma principal es sin embargo la amenaza de un bloqueo futuro, su efectividad debida a que la mejor reacción Soviética ante este riesgo anticipado origina una rápida deterioración de la balanza exterior por cuenta corriente. La estrategia de desarrollo para los fines soviéticos de mayor crecimiento, productividad y consumo, supone demandas adicionales sobre la balanza exterior lo que por fortuna supone automáticamente un importante rehén en manos de Occidente.

     

Accounting for retail land sales: Analysis of a mandated change

This study assesses the stock market's reaction to a series of events leading up to a mandated change in accounting for retail land sales. Evidence is found to support the conclusion that the market reacted to some of these events in a manner consistent with the effects of the accounting change on debt annagement contracts. A distinctive aspect of the analysis is the efficient use of security returns data to detect market reactions and to derive empirical distributions of test statistics employed. The analysis is extended by a model for grouping regression equations known as seemingly unrelated regressions. However, the gains from this extension are modest.