Interorganisational project dynamics: A longitudinal study of perceptual distance and client-contractor collaborative relationships

Despite the importance of good collaborative relationships in interorganisational projects, clients and contractors often develop adversarial relationships due to perceptual distance about key project issues. In this case study research, we investigated how perceptual distance emerges and changes over time, and how the collaborative relationship between client and contractor develops alongside these dynamics. In this exploration, we built upon agency theory and stewardship theory as complementary perspectives for understanding client-contractor collaborative relationships. We gathered quantitative and qualitative data in two projects, conducting three assessments in about one year. We found that perceptual distance increased and decreased over time, and that a reduction was typically associated with the collaborative relationship being characterized by stewardship rather than agency. These findings suggest that a regular assessment and evaluation of partners’ perceptions of critical project issues is warranted to timely detect and counteract perceptual distance. Moreover, partners would best adopt a stewardship orientation to reduce perceptual distance, although this may take considerable effort given the distributive nature of many pre-project negotiations.     

The state of theory in three premier advertising journals: a research note

Despite its importance, little is known about the prevalence of theory in the literature on advertising research. Utilising a content analysis of the three premier advertising journals over an 11-year period, it is found that only 17% of articles have made explicit use of theory. Psychology is the discipline from which the greatest number of articles drew their theoretical frameworks, followed by sociology and economics – indeed, theories from marketing and advertising are in the minority. Limitations are noted and implications of the results are discussed.     

Managing sourcing team effectiveness: The need for a team perspective in purchasing organizations

To meet today’s high demands on the purchasing function, sourcing teams have become the standard in contemporary corporate purchasing organizations. Sourcing teams are often started with high expectations. However, after making a promising start many of these teams appear to be unable to operate effectively and to meet management expectations. This study shows that sourcing team effectiveness is particularly hindered by a lack of team perspective in many purchasing organizations. In this paper, the results of a large-scale, cross-sectional survey to address the success factors for sourcing teams are discussed. We aim to clarify the factors behind sourcing team performance, taking into account the specific task and organizational context. It is concluded that purchasing executives should shift their focus towards employee involvement and team processes, to enable teams to actually meet and even surpass the expectations placed on them.     

Implementation of Basel II

In this article Jaime Caruana, Governor of the Bank of Spain and Chairman of the Basel Committee on Banking Supervision, first discusses the current status of the Basel II Accord. Next, he offers his perspective on macroeconomic issues related to the capital framework, focusing especially on pro‐cyclicality. Finally, he discusses three important Basel II implementation issues, namely calibration, validation, and cross‐border supervision.     

Tweaking public sector reporting with integrated reporting (IR) concepts

ABSTRACT

This paper examines the annual departmental reports prepared by Maltese government departments and highlights the gap between current practices and integrated reporting (IR). The authors suggest that principles and elements of IR could be gradually introduced in an effort to enhance transparency and accountability. The internalization of integrated thinking could also lead to enhanced value creation, and overcome the silo mentality that characterizes the Maltese public sector. Detailed guidelines for preparing ADRs urgently need to be developed in Malta—preparers should not expect to find them in the IIRC Framework, because they are not there.     

Production targets

We analyze a dynamic model of quantity competition, where firms continuously adjust their quantity targets, but incur convex adjustment costs when they do so. Quantity targets serve as a partial commitment device and, in equilibrium, follow a hump‐shaped pattern. The final equilibrium is more competitive than in the static analog. We then use data on monthly production targets of the Big Three U.S. auto manufacturers and show a similar empirical hump‐shaped dynamic pattern. Taken together, this suggests that strategic considerations may play a role in setting auto production schedules, and that static models may misestimate the industry's competitiveness.     

The Dawn of the AI Robots: Towards a New Framework of AI Robot Accountability

Journal of Business Ethics - Business, management, and business ethics literature pay little attention to the topic of AI robots. The broad spectrum of potential ethical issues pertains to using...     

Information Gathering Externalities for a Multi‐Attribute Good

Most goods and services vary in numerous dimensions. Customers choose to acquire information to assess some characteristics and not others. Their choices affect firms' incentives to invest in quality and so lead to indirect externalities in consumers' choices. We characterize a model in which a monopolist invests in the quality of a product with two characteristics, and consumers are heterogeneous ex‐ante. Consumers do not internalize their influence on the firm's investment incentives when choosing which information to acquire. Cheaper information affects consumers' information gathering and thereby firm investment. This can paradoxically reduce consumer surplus, profits, and welfare.