Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom

The experience of East Asia in the 1960s and 1970s supportsthe theory that greater openness to trade tends to narrow thewage gap between skilled and unskilled workers in developingcountries. In Latin America since the mid-1980s, however, increasedopenness has widened wage differentials. This conflict of evidenceis probably not the result of differences between East Asiaand Latin America. Instead, the conflict is probably the resultof differences between the 1960s and the 1980s, specifically,the entry of China into the world market and, perhaps, the adventof new technology biased against unskilled workers.     

The consequences of private equity acquisitions for employees: new evidence on the impact on wages,employment and productivity

There is growing controversy on the HR consequences of private equity acquisitions, especially when the existing management team is replaced. Much of the debate thus far has centred on the use of limited panels of case studies and industry surveys. This article, in contrast, uses both in‐depth interviews with relevant stakeholders and objective company data to compare firms subject to private equity acquisitions against a control group of non‐acquired firms. Our interviews provide insights into key issues that are investigated in the subsequent empirical analysis. Our core findings are that firms subject to a specific type of private equity acquisition – institutional buyouts – are associated with job losses, lower wages and lower productivity. This evidence is consistent with the notion that this type of private equity acquisition has negative employment consequences without any corresponding improvement in productivity.     

Networks of injustice and worker mobilisation at Walmart

This article investigates the use of Internet networks during the recent mobilisation of Californian Walmart workers. The findings of this case study suggest that Internet‐based mass self‐communication networks (Facebook, YouTube, etc.) can complement traditional organising techniques. Mass self‐communication networks ameliorate many of the weaknesses identified by previous studies of Internet networks. In particular, these types of networks can help overcome negative dispositions towards unions, increase the density of communication and the level of participation among members, create a collective identity congruent with trade unionism, facilitate organisation and spread ‘swarming actions’ which are effective at leveraging symbolic power. Moreover, unions may be well suited to providing crucial strategic oversight and coordination to wider worker networks.     

Hybridization: Understanding the microdynamics of a postacquisition integration process

There is no shortage of theoretical or empirical research on mergers and acquisitions (M&A). Knowledge on the subject has grown substantially in recent decades. However, the integration of firms involved in M&A remains a challenging and often unsuccessful process. In addition, there is a scarcity of research on temporal dynamics within integration projects. This article reports on the postacquisition integration of a business school into a university using the concept of organizational hybridization as a theoretical lens. The aim was to identify the microdynamics that occurred during integration. We conducted an inductive case study, interviewing professionals involved in the integration process, analyzing a wide range of documents, and conducting participant observation over 6 years. Field research revealed that different organizational components underwent distinct hybridization processes that were characterized by different degrees of conflict. This study contributes to the understanding of the microdynamics that occur in postmerger or postacquisition integration processes, focusing on the complex adjustments inherent in these developments.     

What Drives Executive Stock Option Backdating?

We study motives for executive stock option backdating, the practice of changing the grant dates of current options to dates in the past using hindsight. We find that smaller, younger and less profitable firms tend to be more heavily involved in backdating. These results are consistent with the retention hypothesis. In line with the incentive hypothesis, we find that backdating occurs more for options that are out‐of‐the‐money. We derive some evidence for the agency hypothesis, in the sense that backdating companies have a larger percentage of inside directors. However, contrary to this hypothesis, we conclude that backdating firms have better protection for minority shareholders compared to firms that do not backdate.     

Strategic Commitment and Timing of Internationalization from Emerging Markets: Evidence from China,India, Mexico,and South Africa

In a study of 257 new ventures from China, India, Mexico, and South Africa, we find support for the mediating effect of strategic early internationalization on international sales intensity. We argued that when new ventures from emerging markets internationalize early and with commitment, the legitimacy they acquire helps them overcome liabilities of newness and foreignness. We develop a typology of international new ventures that, based on strategic intent and timing of internationalization, distinguishes strategic early internationalizers from persistent, serendipitous, and long‐term internationalizers. We show that strategic early internationalization accounts for over half of the explained variance in international sales intensity and either fully or partially mediates the effects of managerial knowledge and market orientation on international sales intensity.