THE MANAGEMENT OF NEW OFFICE TECHNOLOGY: CHOICE, CONTROL AND SOCIAL STRUCTURE IN THE INSURANCE INDUSTRY

Amongst the growing literature on the technical and social aspects of microelectronics in work organizations, a considerable portion has direct or indirect pertinence to the question of managerial practice. That segment of the literature relating to new office technology is perhaps especially conscious of this angle — not least because this sphere of innovation has a clear bearing on the managerial role itself. Drawing both on theoretical issues extracted from this literature, and on empirical studies in three insurance companies, it is argued that while control is of crucial long-term importance in shaping the general direction of organizational change using new technology, there are sound sociological reasons why the path which is beaten out in that direction remains a far from straight one. Moreover, while differences in organizational practice between these organizations are found to exist, these appear to be associated only indirectly with the diverse levels of technological sophistication.     

Evaluating the effect of soft business support upon small firm performance

The paper applies robust econometric techniques to assess theimpact of publicly-provided subsidised ‘soft’ businesssupport on the performance of small and medium-sized enterprises(SMEs). It considers the assistance for consultancy advice providedtowards marketing under the UK Enterprise Initiative, lookingat its effect on sales turnover, employment and survival, andmaking explicit allowance for selection effects. It is foundthat the policy has no impact on the survival of smaller SMEs,and that it is most effective in the mid-range SMEs, where itraises survival rates by about 4% over the longer run and growthrates in surviving firms by up to 10% per annum. Overall, thescheme has a substantial impact, but the paper draws attentionto the possible displacement effects.     

The Augmented Service Offering: A Conceptualization and Study of Its Impact on New Service Success

Unlike companies that produce tangible goods, service firms typically cannot rely on product advantage as a means for ensuring the success of a new service. Developing a competitive response to a tangible product may require significant investments of time and effort. In many cases, however, competitors can easily duplicate the core elements of a firm's new service. This fundamental difference between new products and new services means that managers who hope to find the keys to new-service success must look to factors other than sustainable product advantage. Chris Storey and Christopher Easingwood suggest that managers must understand the totality of the service offering from the customer's perspective. They explain that the purchase of a service is influenced not only by the service itself, but also by such factors as the service firm's reputation and the quality of the customer's interaction with the firm's systems and staff—in other words, by the augmented service offering (ASO). Using the results of a study they conducted in the consumer financial services industry in the U.K., they identify the components of the ASO, and they examine the relative contributions of these components to the success of new services. In their model, the ASO comprises three elements: the service product, service augmentation, and marketing support. The core of the ASO—the service product—includes such dimensions as product quality, product distinctiveness, and perceived risk. The study's results suggest that improvements in the service product open up new opportunities for the firm, but have only modest effects on sales and profitability. Rounding out the ASO model are service augmentation and marketing support. Service augmentation encompasses such dimensions as distribution strength, staff-customer interactions, and reputation. The customer recognizes and responds to these elements of the ASO, but they are not part of the product core. Marketing support involves those marketing and management actions that affect the quality of the product and its augmentation, even though customers typically are not aware of them. These elements include knowledge of the marketplace, training of contact staff, and internal marketing. Enhanced service augmentation has significant effects on profitability and sales for the firms in this study, but it does not offer enhanced opportunities. The marketing support elements contribute significantly to all aspects of performance for the firms in this study.     

Editorial

Small Business Economics -     

The effects of new firm formation on regional development over time: The case of Great Britain

This paper re-examines the link between new firm formation and subsequent employment growth. It investigates whether it is possible to have the wrong type of entrepreneurship—defined as new firm formation which leads to zero or even negative subsequent employment growth. It uses a very similar approach to that of Fritsch and Mueller (Regional Studies, 38(8), 961–976, 2004), confirming their findings that the employment impact of new firm formation is in three discrete phases. Then, using data for Great Britain, the paper shows the employment impact of new firm formation is significantly positive in the high-enterprise counties of Great Britain. However, for the low-enterprise counties, it shows that new firm formation has a negative effect on employment. Of the 15 low-enterprise regions, eight are Scottish (of nine Scottish regions in our data base) and three are North East Counties (of four). Our findings imply that having the “wrong type of entrepreneurship” is indeed possible.

The relationship between job satisfaction and managerial remuneration in small and medium-sized enterprises: an empirical test of ‘comparison income’ and ‘equity theory’ hypotheses

The relationship between job satisfaction levels and the remuneration of non-owner managers employed by a sample of 97 UK small and medium sized enterprises (SMEs) is investigated. The main empirical findings are that relative remuneration levels appear to be largely explained by differences in human capital and job/firm characteristics and that job satisfaction is positively related to deviations from these estimated comparison-income levels. Moreover, the equity theory expectation that individuals with the least prospect of redressing payment inequities will have the greatest incentives to respond to payment inequities by congitive adjustment is also supported. The results indicate that job satisfaction levels for individuals expecting to remain in their current post are not significantly affected by current payment inequities. For those managers who expect to move firms, the amount of payment inequity has a significantly positive effect upon their job satisfaction.     

The impact of connectivity technologies on e-flexible working practices of small and medium-sized enterprises in the North East of England

This paper examines the use of connectivity technologies among 80 small and medium-sized enterprises operating in the North East of England. The paper demonstrates that translation of connectivity technologies into e-flexible working practices is highly dependent on the firm's organisational structure and managerial capacity.     

Employment law and The European Community: review article

Book reviewed in this article: Business Transfers and Employee Rights John McMullen Butterworths Harmonization and Hazard: Regulating Workplace Health and Safety in the European Community Robert Baldwin and Terence Daintith (Eds.) EC Social Policy and 1992: Laws, Cases and Materials Union of Parts: Labor Politics in Postwar Germany Kathleen A. Thelen The Power to Manage? Employers and Industrial Relations in Comparative Historical Context S. Tolliday and J. Zeitlin (Eds.) Trouble on Board: The Plight of International Seafarers Paul K. Chapman (Introduction by Clifford B. Donn) Markets, Firms and the Management of Labour in Modern Britain . Howard Gospel Hard Cheese: A Study of Hotel and Catering Employment in Scotland Ian R. Macaulay and Roy C. Wood Working Miracles: Experiences of Jobs and Childcare Usha Brown and Louise Tait Scottish     

The Role of Collateral in Entrepreneurial Finance

Abstract:  Previous research has suggested collateral has the role of sorting entrepreneurs either by observed risk or by private information. In order to test these roles, this paper develops a model which incorporates a signalling process (sorting by observed risk) into the design of an incentive-compatible menu of loan contracts which works as a self-selection mechanism (sorting by private information). It then tests this Sorting by Signalling and Self-Selection Model, using the 1998 US Survey of Small Business Finances. It reports for the first time that: high type entrepreneurs are more likely to pledge collateral and pay a lower interest rate; and entrepreneurs who transfer good signals enjoy better contracts than those transferring bad signals. These findings suggest that the Sorting by Signalling and Self-Selection Model sheds more light on entrepreneurial debt finance than either the sorting-by-observed-risk or the sorting-by-private information paradigms on their own.