Transaction costs, relational contracting and public private partnerships: a case study of UK defence

This paper is concerned with the economics of public private partnerships (PPPs)/private finance initiative (PFIs) and in particular the role of transaction costs and the importance of trust in relational contracting. The discussion is illustrated by reference to the UK defence sector. The paper begins by discussing the nature of PPPs/PFIs before moving on to consider how the economics of contracting literature can shed light on their strengths and weaknesses. The transaction cost literature is reviewed alongside a resource-based perspective of procurement decisions. The concepts of trust and reputation are then considered in the context of minimising procurement transaction costs. The theoretical framework developed is then applied and illustrated through a case study of UK defence contracting, in an attempt to assess whether the use of PPPs will necessarily lead to improved economic efficiency. The case study highlights both the scope of PPPs/PFIs and their potential transaction costs in defence procurement, with the normal perils in terms of contracting given information asymmetry, asset specificity and the resulting scope for opportunistic behaviour.     

Employer Recognition of Same-Sex Relationships in the United States: Legal and Economic Implications

Recognition of same-sex relationships is receiving increasing national attention in the United States. This paper discusses the current availability of employee rights in the United States on the basis of marital status to same-sex couples, and both the direct and indirect economic consequences to organizations of providing such rights. Despite legal recognition in some states and by many employers in the private sector, the availability of marital rights in the workplace for same-sex couples remains tenuous, at most. Although the direct economic consequences of same-sex relationships remain a matter of debate, the indirect economic advantages are several, including being an employer of choice and having a favorable reputation in the consumer, stockholder, and applicant marketplace. Employers should counterbalance indirect economic benefits with opposition to same-sex relationships, including product boycotts. The issue cannot be ignored from a legal or economic perspective.     

New development: Turning around failing schools—lessons from Lahore

This article reviews the operation of two improvement partnerships in Pakistan, where third sector organizations adopted selected state schools. The authors reflect on the lessons arising from both schemes in the light of the Institute of Educational Sciences’ (IES) guidance on turning around schools. Although the operation of both partnership schemes is context specific, the findings should nevertheless be of interest to policy-makers in other countries. They also show how some aspects of the IES’s guidance may need to be adapted and augmented, especially in the context of developing countries.     

Airport privatization with public finances under stress: An analysis of government and investor's motivations

The management model of airports has long stood as a central research area in the transport sector. There are a wide range of studies that focus on the potential benefits and pitfalls of private airport management. The results of these efficiency studies have not provided irrefutable evidence for the superiority of private management over public management, but the momentum towards privatizing airports is growing. The reason for privatization has been more related with privatization revenues for governments, rather than more efficient management. The search for maximizing the sale value can have negative impacts from a welfare perspective, for example, through excessive increases in tariffs for passengers. This research reflects on the motivations for governments to privatize, and is illustrated by a case study – Portugal – in which the privatization occurred as a result of three main large drivers: 1) a bailout programme by the IMF, the EU, and the ECB; 2) a revision of the regulatory model, and; 3) the need to increase the capacity of Lisbon's airport system in the medium term.     

An examination of the revenue generating capability of co-branded cards associated with Frequent Flyer Programmes

The Frequent Flyer Program (FFP) is fast changing the scope of ancillary revenues. The sale of miles to third-party partners has epitomised the revenue generating capability of FFPs, which has yielded co-branded credit cards as a prominent instrument in substantially boosting earning streams. This study triangulates the tripartite composition of airlines, banks and payment networks that formulate the sale of miles and the resulting value that accrues. A survey was conducted at a prominent commercial conference devoted to the subject area, along with secondary data to ascertain the financial impact of today's FFPs and to investigate the underpinning factors as to how they are producing such stellar incremental revenue streams. The findings indicate that there are a low number of active FFP members, while one-third of new members signup for a co-branded credit card. The hierarchical tier structure supporting the compositional framework of FFPs has a significant impact on membership levels and loyalty engagement. A large proportion of ancillaries now evolve from airline co-branded credit cards which have significantly contributed in propping up the overall value of FFPs. Banks are distributing record numbers of airline co-branded credit cards where the top tier segment spend heavily, while a substantial proportion of such rewards cards now propagate through the payment networks. The symbiotic commercial partnership that is being forged between airlines and banks is prodigious and the industry has engineered a tool that harnesses noticeable returns which can significantly assist in sustaining the financial future in an ever changing landscape.     

The bounded welfare pluralism: public–private partnerships under social management in China

This article discusses a new public–private partnership promoted by an emerging social management agenda in China. Based on an analysis of recent developments in social policy, the present study suggests that the inherent logic and local practice of social management has crowded out the space for societal sectors despite the proclaimed recognition of their social contribution. The collaboration of public and private entities in welfare provision by social management may end up merely co-opting civic organizations into taking responsibility for meeting welfare targets over which they have scant influence, while providing little support for them to thrive and prosper.     

The friend or foe fallacy: Why your best customers may not need your friendship

Organizational transactions are handled along a continuum of the firm’s customer relationships, ranging from relational and friendly to more adversarial and us-versus-them in demeanor. For top customers, the approach is almost always close and relational. In this article, we question this view and suggest that it is beneficial to condition the firm’s relationship development efforts on an understanding of the true value to be gained from partnering and increased closeness. We provide a framework with which managers can diagnose their current portfolio of relationships with key customers or suppliers and offer suggestions for action. We provide an empirical illustration of the typical distribution of responses among five regions of the framework and discuss its implications.     

论有限合伙企业的治理结构

我国法律规定,有限合伙企业的有限合伙人,除法定的例外情形,不能执行合伙事务。但此规定明显落后于其他国家的立法,也不适合我国国情。因此,应借鉴其他国家的先进立法例,在实践中放宽对有限合伙人执行合伙事务的限制,赋予有限合伙人更大范围内参与、执行合伙事务的权利,构建适合我国国情和实践的有限合伙企业治理结构。     

Communicating across tourism silos for inclusive sustainable partnerships

Abstract

Overcoming traditional tourism silos to develop long-term relationships with stakeholders is essential for transformational change. Adopting broader networks connects researchers to pertinent issues facing society, develops reciprocal capacities for learning, and creates inclusive sustainable partnerships. As critical tourism scholars and not-for-profit employees, we illustrate the journey of how we engaged collaboratively with diverse stakeholders, from businesses, not-for-profits and the university, to tackle issues of economic disadvantage and social exclusion. Critical hospitality and dialogue theory were adopted to provide a framework for the processes of collaboration, research, networking, and advocacy work for inclusive sustainable spaces. Drawing on our involvement with co-founding a collaborative research network, the Network for Community Hospitality, and analysis of data from two Ketso workshops and interviews with 41 network members, we present reflections on setting up and facilitating the network. In addition, two examples of collaborative Network activities are presented to illustrate the techniques and dialogic communication processes for doing critical hospitality. The article thereby contributes by providing empirically informed and reflexive understandings into the experiences of working and communicating within long-term inclusive partnerships with diverse stakeholders to create traction for positive social sustainable change.     

A Comparison of Western Business Instruction in China With U.S. Instruction: A Case Study of Perceived Program Emphases and Satisfaction Levels

This research presents a case study of a joint business degree program between an Association to Advance Collegiate Schools of Business International (AACSB‐I) accredited business school in the United States and a Chinese PhD granting partner university. The case investigates the impact of a U.S.‐based curriculum, taught by U.S. instructors and which uses all English instruction on Chinese student perceptions of program emphases and satisfaction. It compares these perceptions with those of U.S. sister students. The comparison reveals program dissatisfaction among Chinese students when contrasted to U.S. students and for the most part a failure to attend to the program emphases of the West. Reasons for the departures are explored and strategies for improvement are developed.