Schools of thought in organizational learning

This article attempts to bring coherence to the diversity that characterizes organizational learning research. It argues that organizational learning is embedded in four schools of thought: an economic school, a managerial school, a developmental school, and a process school. The article provides a comprehensive analysis of the schools, describes how they differ from each other, and outlines how each of them can be employed effectively. To demonstrate the benefits of theoretical plurality, the four schools are applied to the key marketing topics of market orientation and new product development. Implications for future research in marketing are provided. Simon J. Bell is a lecturer in marketing in the Faculty of Economics and Commerce at the University of Melbourne. Gregory J. Whitwell is an associate professor of marketing in the Faculty of Economics and Commerce at the University of Melbourne. Bryan A. Lukas is an associate professor of marketing and director of the Master of Applied Commerce Program in the Faculty of Economics and Commerce at the University of Melbourne.     

External Monitoring of Property Appraisal Estimates and Information Asymmetry

Finance theory proposes that firms' cost of capital increases when market makers set wider spreads due to perceived higher information asymmetry across traders. Using a sample of UK investment property firms and controlling for firms' non-random selection of external monitors, we find evidence that market makers perceive information asymmetry across traders to be lower for firms employing external appraisers versus those employing internal appraisers. This evidence is consistent with liquidity-motivated traders being unable to overcome such reliability differences using asset value information from sources other than accounting. We fail to find a similar difference for firms employing Big 6 versus non-Big 6 auditors. Our findings contribute to the debate over the recognition of fair value estimates for long-lived tangible assets by documenting that reliability differences attributable to differential monitoring by appraisers can affect information asymmetry, and therefore firms' cost of capital.     

Planning food services for a campus setting

Providing appropriate food services in a campus setting is increasingly important due to more demanding customers and because clients have less time to go off-campus when they need to eat. Using a university campus as an example, this research looks at customer satisfaction with existing food services and explores various methods for determining where to locate new facilities. This campus currently has great needs for additional food services, and it is shown clearly where additional food services are required. Also, the methods used are compared in terms of their effectiveness in finding the solution.     

AN EVALUATION OF PROCESS‐ORIENTED SUPPLY CHAIN MANAGEMENT FRAMEWORKS

Supply chain management (SCM) is implemented by integrating corporate functions using business processes within and across companies. Several process‐oriented frameworks for SCM have been proposed but only two of these provide sufficient detail to enable implementation. We evaluate the Supply‐Chain Operations Reference (SCOR) framework and The Global Supply Chain Forum (GSCF) framework using four criteria and identify their relative strengths and weaknesses.     

Analysing Perceived Downside Risk: the Component Value‐at‐Risk Framework

Multinational companies face increasing risks arising from external risk factors, e.g. exchange rates, interest rates and commodity prices, which they have learned to hedge using derivatives. However, despite increasing disclosure requirements, a firm's net risk profile may not be transparent to shareholders. We develop the ‘Component Value‐at‐Risk (VaR)’ framework for companies to identify the multi‐dimensional downside risk profile as perceived by shareholders. This framework allows for decomposing downside risk into components that are attributable to each of the underlying risk factors. The firm can compare this perceived VaR, including its composition and dynamics, to an internal VaR based on net exposures as it is known to the company. Any differences may lead to surprises at times of earnings announcements and thus constitute a litigation threat to the firm. It may reduce this information asymmetry through targeted communication efforts.     

Consumer value conflicts surrounding ethical food purchase decisions: a focus on animal welfare

Ethical attitudes in relation to meat purchases were studied among urban and rural consumers in Scotland. All subjects perceived at least some ethical issues in relation to animal production systems, in particular, systems keeping animals in close confinement. Welfare‐friendly production systems were viewed as adding value to a food, but this value was not necessarily realizable to producers if purchases occurred only when foods were on special offer. Statements made by individuals were often contradictory, revealing ambivalence, unresolved value conflicts and a general lack of involvement in the nature of meat production. A number of barriers to the establishment of stable attitudes and behaviours in relation to the ethical treatment of food animals were also identified. A key finding of the study is that individuals can hold two views on animal welfare. On the one hand, they may think as citizens influencing societal standards, and on the other, as consumers at the point of purchase. As citizens, they support the notion of animals being entitled to a good life; as meat consumers, they avoid the cognitive connection with the live animal. This paper explores both the citizen–consumer relationship and purchase strategies used by consumers to resolve value conflicts. Lessons for public and commercial policy are highlighted in the context of the Curry Report (2002) which advocates more effective market segmentation where markets are finely attuned to their customers, with the development of a number of assurance schemes discussed in the article.