What to stabilize in the open economy*

We consider the question how “best” to maintain price‐level stability in an open economy, and evaluate three possible policy choices: (a) a constant money growth rate rule; (b) a fixed exchange rate; and (c) a policy of explicit commitment to a price‐level target. In each case we assume that policy is conducted by injecting reserves into or withdrawing reserves from the “banking system.” In evaluating the three regimes, we adopt the criterion that the “best” policy should leave the least scope for indeterminacy and “excessive” economic volatility. In a steady‐state equilibrium, the choice of regime is largely irrelevant; any steady‐state equilibrium under one regime can be duplicated by an appropriate choice of the “control” variable under any other regime. However, we show that the sets of equilibria under the three regimes are dramatically different. When all countries follow the policy of fixing a constant rate of money growth, there are no equilibria displaying endogenously arising volatility and there is no indeterminacy of equilibrium. Under a regime of fixed exchange rates, indeterminacies and endogenously arising fluctuations are impossible if and only if the country with the low “reserve‐to‐deposit” ratio is charged with maintaining the fixed rate. Finally, when one country targets the time path of its price level, under very weak conditions, there will be indeterminacy of equilibrium and endogenously arising volatility driven by expectations.     

Mutual fund advertising: Should investors take notice?

This research investigates the relationship between advertising, quality, and price in the mutual fund market, considering both equity and fixed income funds. The research considers these relationships based on the results for a time period following the advertisement. Given the complexity of the mutual fund purchase decision for investors, this research provides an initial investigation into whether investors can infer mutual fund quality and price from the presence of mutual fund advertising. Post-advertising period results show a negative relationship between advertising and fund quality, indicating that previously advertised funds exhibit weaker performance than nonadvertised funds. During the post-advertisement period, both equity and fixed income funds exhibit lower expenses (ie, price) than nonadvertised funds. These research findings and implications for theory are discussed.     

Accompaniment,Workplace Representation and Disciplinary Outcomes in British Workplaces — Just a Formality?

The Workplace Employment Relations Survey 2004 provides data that, for the first time, measure the extent to which workforce representation is part and parcel of grievance and disciplinary processes in British workplaces. This article explores the impact of the introduction of the statutory right to accompaniment at grievance and disciplinary hearings on rates of disciplinary sanctions, dismissals and employment tribunal applications. It concludes that there is little evidence to suggest that either the right to accompaniment or the operation of formal grievance and disciplinary procedures moderates disciplinary outcomes. Instead, it argues that trade union and employee representatives may be influential in facilitating the resolution of workplace disputes.     

How groups learn,continuously

This article examines how groups learn, conditions that affect learning, and interventions to improve the learning process. Adaptive group learning is reacting almost automatically to stimuli to make minor changes in process and outcome. Generative group learning is proactive learning for mastery. Transformative group learning is reconstructing meaning and fundamentally changing the way the group operates. Pressures and opportunities in the environment and group readiness stimulate and support these different types of learning. Group leaders, members, and human resource professionals who facilitate, coach, and provide resources for development can apply this knowledge to diagnose group conditions and encourage continuous learning. © 2007 Wiley Periodicals, Inc.     

‘It's more than who you know’– networks and trade unions in the audio‐visual industries

Many commentators have argued that a shift towards post‐industrial modes of production and employment has progressively undermined the conditions for collective labour organisation and regulation. The capacity of trade unions to respond to these changes and represent the interests of contingent workers has become a key issue in many industries in which employment has become increasingly fragmented. This article examines patterns of interest representation pursued by freelance workers in the UK audio‐visual sector. In particular, it examines three critical cases to explore the potential of networks of freelance workers for representing their interests and to consider the implications for trade unions as traditional collective actors. We conclude that networks can provide forums through which interests can be articulated, but their limitations in representing freelance workers offer trade unions a crucial opportunity to extend collective regulation.     

Prosecuting Insurance Fraud—A Case Study of the Massachusetts Experience in the 1990s

There is widespread agreement that insurance fraud is a major problem in the United States. There is little agreement, however, in what constitutes insurance fraud in the many articles and research papers published on the subject during the past ten years. The term ‘‘fraud’’ carries the connotation that the activity is illegal and, hence, that prosecution and conviction are potential outcomes of a specific fraud. Accepting that premise allows us to adopt the legal definition of fraud in the insurance context and to examine the experience of dealing with insurance fraud in terms of property‐liability insurance lines. Specifically, we examine ten years of data on referrals and disposals of incidents of suspected fraud as processed by the Insurance Fraud Bureau of Massachusetts to provide estimates of the distribution of types of people who perpetrate a variety of insurance frauds. We compile conviction rates, sentencing outcomes, and recidivism rates in detail to illuminate the law enforcement process and to gauge the deterrent effect of prosecuting insurance fraud in the criminal courts. The Massachusetts data lead us to conclude that the number of cases of convictable fraud is much smaller than the prevailing view of the extent of fraud; that the majority of guilty subjects have prior (noninsurance) criminal records; and that sentencing of subjects guilty of insurance fraud appears effective as both a general and specific deterrent for insurance fraud but ineffective as a specific deterrent for other crime types, as the recidivism rate appears no different from the general property criminal's recidivism rate.     

When technological discontinuities and disruptive business models challenge dominant industry logics: Insights from the drugs industry

An industry's dominant logic is the general scheme of value creation and capture shared by its actors. In high technology fields, technological discontinuities are not enough to disrupt an industry's dominant logic. Identifying the factors that might trigger change in that logic can help companies develop strategies to enable them to capture greater value from their innovations by disrupting that logic. Based on analyzing the changes that biotechnologies and bioinformatics have brought to the drug industry, we identify and characterize three triggers of change that can create disruptive business models. We suggest that, in mature industries experiencing strong discontinuities and high technological uncertainty, entrants' business models initially tend to fit into the industry's established dominant logic and its value chains remain unchanged. But as new technologies evolve and uncertainty decreases, disruptive business models emerge, challenging dominant industry logics and reshaping established value chains.     

Integration planning for technology intensive acquisitions

Rapid technological change, growing technological complexity and shortening product life cycles increasingly force companies to source technologies externally. One means of building up competencies and fostering innovation based on external resources such as knowledge is through the acquisition of technology-based companies. However as literature and practice have shown, technologically motivated and intensive acquisitions are highly vulnerable to failure. One of the main reasons for this value destruction lies in the miscarried and inappropriate integration of the technology-based company after the acquisition.
Based on eight in-depth case studies on technology intensive acquisitions in multi-national technology-based companies this paper aims to identify the main causes of failure in internalizing external knowledge during the integration of technology intensive acquisitions. It was derived that a lack of integrative decision-making, of systemic processes and of a holistic change of both companies during the integration hinders successful knowledge sourcing through acquisitions. Based on these findings, a concept for integration planning which is tailored towards the specific characteristics of technology intensive acquisitions is proposed. This concept is embedded in the acquisition process and encompasses the development of an appropriate integration strategy and the determination, assessment and planning of the required integration projects thus fostering successful knowledge sourcing.     

Attributional influences on consumers' desires to communicate about products

Three studies examined attributional antecedents of selected consumer communications about products. Study One used the critical incident technique to examine the types of attributions consumers make about product performance when they want to complain to or compliment a firm. Studies Two and Three systematically manipulated causal inferences to determine their effects on consumer desire to complain to a firm, compliment a firm, warn against, or recommend a product to other consumers. Results indicate that attributional locus (buyer-related versus seller-related), controllability (under volitional control versus uncontrolled), and stability (fluctuating versus stable) influence consumers' desires to communicate about products.