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Jennifer S. Leigh and Amy Kenworthy
Over the last three decades, service-learning has become a well-known experiential learning pedagogy in both management education and higher education more broadly. This popularity is observed in the increasing number of peer-reviewed publications on service-learning in management and business education journals, and on management education topics within higher education journals focused on civic engagement and community-based teaching and learning. In this field of study, it is known that service-learning can result in positive outcomes for students, faculty, and community members. In particular, for students, positive results are related to mastery of course content and group process skills like teamwork and communication, leadership, and diversity awareness. Despite the rise in scholarship, service-learning instructors still face several challenges in the area of best practice standards, fostering deep and cohesive partnerships, and managing institutional pressures that disincentivize engaged teaching practices. With constantly evolving challenges in management education, continued research is needed to understand a variety of service-learning facets such as platforms (face-to-face, hybrid, and virtual learning), populations (graduate vs. undergraduate populations and adult vs. traditional college-age learners), measurement (how to assess university-community partnerships and faculty instruction), and which institutional policies and procedures can enable and reward community-engaged teaching and learning approach.
Family business is a multidisciplinary subject area of critical importance to practitioners. The global volume of family business owners and managers is enormous. The firms are significant components of national economies. Yet they are often underappreciated and have been under-represented in business and economic research. Scholars have the potential for contributing to the survival and prosperity of these firms. The boundaries of the field are ill-defined. Family business scholars are seeking recognition from their colleagues. Opportunities for future research are unlimited.
Keith Murnighan* and Dora Lau
Group faultlines are hypothetical dividing lines that may split a group into subgroups based on one or more attributes. An example of a strong faultline is a group of two young female Asians and two senior male Caucasians. Members’ alignment of age, sex, and ethnicity facilitates the formation of two homogeneous subgroups. On the other hand, when a group consists of a young female Asian, a young male Caucasian, a senior female Caucasian, and a senior male Asian, the group faultline is considered weak because subgroups, regardless of how they are formed, are diverse.
As a relatively new form of group compositional pattern, the group faultline is associated with subgroup formation, and these subgroups, rather than the whole group, can easily become the focus of attention. When members strive to obtain more resources and protect their subgroups, between-subgroup conflict, behavioral disintegration, lack of trust, lack of willingness to share information, and communication challenges are likely. As a result, group performance is often negatively affected, and sometimes groups may even be dissolved. These results were repeatedly found in studies of experimental groups, ad-hoc project groups, organizational teams, top management teams, global virtual teams, family businesses, international joint ventures, and strategic alliances.
Elisabeth Anna Guenther, Anne Laure Humbert, and Elisabeth Kristina Kelan
Gender research goes beyond adding sex as an independent, explanatory category. To conduct gender research in the field of business and management, therefore, it is important to apply a more sophisticated understanding of gender that resonates with contemporary gender theory. This entails taking the social construction of gender and its implications for research into consideration. Seeing gender as a social construct means that the perception of “women” and “men,” of “femininity/ties” and “masculinity/ties,” is the outcome of an embodied social practice.
Gender research is commonly sensitive to notions of how power is reproduced and challenges concepts such as “hegemonic masculinity” and “heteronormativity.” The first highlights power relations between gender groups, as well as the different types of existing masculinities. The latter emphasizes the pressure to rely on a binary concept of “women” and “men” and how this is related to heterosexuality, desire, and the body. Gender research needs to avoid the pitfalls of a narrow, essentialist concept of “women” and “men” that draws on this binary understanding of gender. It is also important to notice that not all women (or men) share the same experiences. The critique of Black feminists and scholars from the global South promoted the idea of intersectionality and postcolonialism within gender research. Intersectionality addresses the entanglement of gender with other social categories, such as age, class, disability, race, or religion, while postcolonial approaches criticize the neglect of theory and methodology originating in the global South and question the prevalence of concepts from the global North.
Various insights from gender theory inform business and management research in various ways. Concepts such as the “gendered organization” or “inequality regime” can be seen as substantial contributions of gender theory to organization theory. Analyzing different forms of masculinities and exploring ways in which gender is undone within organizations (or whether a supposedly gender-neutral organization promotes a masculine norm) can offer thought-provoking insights into organizational processes. Embracing queer theory, intersectionality, and postcolonial approaches in designing research allows for a broader image of the complex social reality. Altogether management studies benefit from sound, theoretically well-grounded gender research.
Clara Kulich and Michelle K. Ryan
A wealth of research has previously shown that gender stereotypes and discrimination keep women from climbing the corporate ladder. However, women who do break through the “glass ceiling” are likely to face new barriers. Research on the glass cliff phenomenon shows that, when women reach positions of power, they tend to do so in circumstances of crisis and instability. A number of archival, experimental, and qualitative studies have demonstrated that women are more likely to rise in the professional hierarchy in difficult, and for these women, potentially harmful, situations. For example, compared to their male peers, women are seen as more desirable for managerial or political leadership positions in times of instability and crises, or following scandals. Such appointments expose women to a higher risk of failure, criticism, and psychological distress, thus a danger of falling off an “invisible” cliff.
Jawad Syed and Memoona Tariq
Diversity management refers to organizational policies and practices aimed at recruiting, retaining, and managing employees of diverse backgrounds and identities, while creating a culture in which everybody is equally enabled to perform and achieve organizational and personal objectives. In a globalized world, there is a need for contextual and transnational approaches to utilize the benefits that global diversity may bring as well as the challenges that organizations may face in managing a diverse workforce. In particular, it is important to take into account how diversity is theorized and managed in non-Western contexts, for example in BRICS countries (i.e., Brazil, Russia, India, China, and South Africa) and Muslim-majority countries. The literature confirms the need for organizational efforts to be focused on engaging with and managing a heterogeneous workplace in ways that not only yield sustainable competitive advantage but also are contextually and socially responsible. Organizations today are expected to take positive action, beyond legal compliance, to ensure equal access, employment and promotion opportunities, and also to ensure that diversity programs make use of employee differences, and contribute to local as well as global communities.
Paul D. Reynolds
In the late 1990s, there was considerable interest in national differences in entrepreneurial activity. The Global Entrepreneurship Monitor (GEM) research program was developed to provide harmonized, cross-national measures of participation in business creation; business creation was considered a critical aspect of entrepreneurship. This information was considered important for understanding the national characteristics associated with business creation and its subsequent impact on economic growth. The initial effort involved 10 countries in 1999. By 2014 Adult Population Surveys (APS) had been completed 705 times in 104 countries and with six special samples; this involved 2.3 million individual interviews. While there have been changes in the administrative structure and the focus of the annual global reports, the most significant data collection procedures have been stable since 2002. The GEM APS data sets are currently the only harmonized cross-national comparisons of business creation and business ownership. Designed to provide estimates of the prevalence of both business creation and existing firms, they also allow estimates of the total number of business ventures. GEM data sets are publically available three years after completion, providing a unique resource for assessing factors affecting business creation and its subsequent role in economic growth. Systematic assessments by national experts in participating countries provide measures of the national entrepreneurial framework conditions, complementing a variety of established measures of national economic and political characteristics.
There are three distinct features that characterize the GEM initiative: the unique organizational structure, the global reports summarizing annual assessments of entrepreneurial activity, and data sets assembled and made available for public use. The initial organizational structure, a collaborative arrangement among national teams, was replaced by membership in the Global Entrepreneurship Research Association (GERA) in 2004. The annual global reports emphasize comparisons among member countries, the annual national reports the country-specific situations. Both are designed to facilitate reality-based public policy.
Data collection for the APS provides harmonized comparisons of business creation across countries and within-country time series. The APS data has made clear the substantial variation among countries, by a factor of 10; that national levels of participation are very stable over time; that business creation is much more prevalent in poorer countries; that all segments of society are active in business creation; and that business creation is an important catalyst for the processes that lead to economic growth. The National Expert Survey (NES) questionnaire data provides information about the nature of the entrepreneurial framework in the GEN countries.
There is much to be learned about the relationships between national context, entrepreneurship, and economic growth. The unique information in the GEM data sets should continue to facilitate improved understanding of this important phenomenon.
Corporate governance is a central issue in business and economics. However, governance in financial institutions is more complicated than in other fields because of the nature of financial services and instruments. Financial organizations are similar to other businesses in terms of their purposes of establishment, but confidence in management and complex risk structures are more important in financial organizations than in other businesses. In financial institutions, there are various areas in which problems arise that are related to corporate governance, including the agency problem and stakeholder protection. The importance of good governance for sound performance of financial institutions was reconfirmed during the 2008 financial crisis, raising the need to understand the agency problems and the efficiency of various corporate governance mechanisms in mitigating them. International organizations, such as the Organisation for Economic Co-operation and Development, the Basel Committee, the International Finance Corporation, and the International Organization of Securities Commissions, have been working with regulators and policy makers to improve corporate governance practices both in nonfinancial and financial institutions. Corporate governance, especially in financial institutions, is essential in guaranteeing a sound financial system, capital markets, and sustainable economic growth. Governance weaknesses at financial institutions can result in the transmission of problems across the finance sector and the economy. Consequently, the effectiveness of governance mechanisms of financial institutions and capital markets after financial crises had significant importance in a period that witnessed an intensive discussion of corporate governance issues with new regulations and the related academic works.
Entrepreneurship is a critical driver of economic health, industrial rejuvenation, social change, and technological progress. In an attempt to determine how to best support such an important component of society, researchers and practitioners alike continue to ask why some countries, regions, and cities have more entrepreneurship than others. Unfortunately, the answer is not clear. This question is addressed by focusing on location-based support or infrastructure for entrepreneurship. A framework based on a social systems perspective guides this examination by concentrating on three main categories of infrastructure: resource endowments, institutional arrangements, and proprietary functions. Work from the knowledge-based perspective of entrepreneurship, systems of innovation, entrepreneurial ecosystems, and resource dependence literatures is integrated into this framework.
Heather A. Haveman and Gillian Gualtieri
Research on institutional logics surveys systems of cultural elements (values, beliefs, and normative expectations) by which people, groups, and organizations make sense of and evaluate their everyday activities, and organize those activities in time and space. Although there were scattered mentions of this concept before 1990, this literature really began with the 1991 publication of a theory piece by Roger Friedland and Robert Alford. Since that time, it has become a large and diverse area of organizational research. Several books and thousands of papers and book chapters have been published on this topic, addressing institutional logics in sites as different as climate change proceedings of the United Nations, local banks in the United States, and business groups in Taiwan. Several intellectual precursors to institutional logics provide a detailed explanation of the concept and the theory surrounding it. These literatures developed over time within the broader framework of theory and empirical work in sociology, political science, and anthropology. Papers published in ten major sociology and management journals in the United States and Europe (between 1990 and 2015) provide analysis and help to identify trends in theoretical development and empirical findings. Evaluting these trends suggest three gentle corrections and potentially useful extensions to the literature help to guide future research: (1) limiting the definition of institutional logic to cultural-cognitive phenomena, rather than including material phenomena; (2) recognizing both “cold” (purely rational) cognition and “hot” (emotion-laden) cognition; and (3) developing and testing a theory (or multiple related theories), meaning a logically interconnected set of propositions concerning a delimited set of social phenomena, derived from assumptions about essential facts (axioms), that details causal mechanisms and yields empirically testable (falsifiable) hypotheses, by being more consistent about how we use concepts in theoretical statements; assessing the reliability and validity of our empirical measures; and conducting meta-analyses of the many inductive studies that have been published, to develop deductive theories.
Jingjing Ma, John M. Schaubroeck, and Catherine LeBlanc
Interpersonal trust refers to confidence in another person (or between two persons) and a willingness to be vulnerable to him or her (or to each other). In contemporary organizational science, research conducted within organizations has extensively investigated personal, dyadic, and contextual factors that motivate interpersonal trust (i.e., trust between two persons) and the consequence of interpersonal trust for the trustor and the trustee. This line of work distinguishes between two orientations that researchers have taken when conceptualizing interpersonal trust: unidirectional trust and bidirectional trust. Unidirectional trust refers to a focus on one person’s trust in another without regard to the reciprocation of that trust. Unidirectional trust research investigates trust in another party at a higher hierarchy level (e.g., followers’ trust in the leader), a lower hierarchy level (e.g., the leader’s trust in followers), or at the same hierarchy level (e.g., employees’ trust in coworkers). Bidirectional trust focuses on the shared trust in a dyad. Research on bidirectional trust helps to provide insights about the complex pattern and evolution of interpersonal trust over time. However, research investigating bidirectional trust is relatively limited compared to unidirectional trust. Besides research on interpersonal trust within the same work unit, there is also a recent trend toward investigating interpersonal trust across work unit and organizational boundaries. Another important line of literature regarding interpersonal trust is the investigation of the causes and consequences of interpersonal trust violations and the effectiveness of remedies (e.g., apologies) for these violations.
Intersectionality is a critical framework that provides us with the mindset and language for examining interconnections and interdependencies between social categories and systems. Intersectionality is relevant for researchers and for practitioners because it enhances analytical sophistication and offers theoretical explanations of the ways in which heterogeneous members of specific groups (such as women) might experience the workplace differently depending on their ethnicity, sexual orientation, and/or class and other social locations. Sensitivity to such differences enhances insight into issues of social justice and inequality in organizations and other institutions, thus maximizing the chance of social change.
The concept of intersectional locations emerged from the racialized experiences of minority ethnic women in the United States. Intersectional thinking has gained increased prominence in business and management studies, particularly in critical organization studies. A predominant focus in this field is on individual subjectivities at intersectional locations (such as examining the occupational identities of minority ethnic women). This emphasis on individuals’ experiences and within-group differences has been described variously as “content specialization” or an “intracategorical approach.” An alternate focus in business and management studies is on highlighting systematic dynamics of power. This encompasses a focus on “systemic intersectionality” and an “intercategorical approach.” Here, scholars examine multiple between-group differences, charting shifting configurations of inequality along various dimensions.
As a critical theory, intersectionality conceptualizes knowledge as situated, contextual, relational, and reflective of political and economic power. Intersectionality tends to be associated with qualitative research methods due to the central role of giving voice, elicited through focus groups, narrative interviews, action research, and observations. Intersectionality is also utilized as a methodological tool for conducting qualitative research, such as by researchers adopting an intersectional reflexivity mindset. Intersectionality is also increasingly associated with quantitative and statistical methods, which contribute to intersectionality by helping us understand and interpret the individual, combined (additive or multiplicative) effects of various categories (privileged and disadvantaged) in a given context. Future considerations for intersectionality theory and practice include managing its broad applicability while attending to its sociopolitical and emancipatory aims, and theoretically advancing understanding of the simultaneous forces of privilege and penalty in the workplace.
An extensive literature has accumulated during the past three quarters of a century on the topic of intuition in management. The beginnings of management intuition scholarship are to be found in Chester Barnard’s insightful speculations on the role and significance of logical and non-logical processes in managerial work. Barnard’s thinking impacted profoundly Herbert Simon’s foundational concept of bounded rationality, which shed much needed light on how managerial decision-making is accomplished in real-world settings by using intuition as well as analysis. In parallel, management researchers in common with scholars in a wide range of applied fields also drew on Daniel Kahneman, Amos Tversky, and colleagues’ seminal behavioral decision research and its focus on the systematic errors and biases that accrue in managers’ intuitive judgments as the result of the use of heuristics (e.g., representativeness, availability, anchoring and adjustment, and affect heuristics). In recent years management researchers have drawn on further insights from Klein and colleagues’ work in naturalistic decision-making (NDM) (e.g., the “recognition primed decision-making model,” RPD) to conceptualize managerial work as expert performance and in understanding expert-versus-novice differences using the “skill acquisition model” (SAM). In recent years managerial intuition research has alighted on the dual-process theories of Epstein, Evans, Stanovich, and others as a conceptual foundation for further theorizing and research in terms of System 1 (also referred to as Type 1) and System 2 (Type 2) processing. More recently still, research in neurology (e.g., the “somatic marker hypothesis”) and social cognitive neuroscience (e.g., the specification of complementary “reflexive (X)” and “reflective (C)” systems) has mapped the physiological and neural correlates of intuitive processing and begun to inform not only intuition research but decision research more widely in management and organization studies. These various developments have shed light on how intuitive decision-making is accomplished in managerial work across diverse management subfields including entrepreneurship, business ethics, human resources, and strategic management. More recently, scholars are turning to paradox theory and process philosophy as alternative ways of viewing the phenomenon of intuition in organizations.
Dry goods stores, the predecessors of Japanese department stores, were forced to modernize and change their business format after the Meiji Restoration in 1868, which led to the demise of their main customers. The largest dry goods store, Mitsukoshi, was the first to learn about modern retailing in the West, and it broke out of the mold of the traditional Japanese retailer in around 1900 in an effort to catch up with Western department stores. Other large dry goods stores were quick to follow its lead: they transformed into department stores and created their own “cathedrals of consumption” in the 1920s, to match those in the West. This new retail format strongly contributed to Japan’s economic growth and to the Westernization of the Japanese lifestyle.
Despite numerous publications on the history of department stores, there has been little research on this transfer of Western department stores into a very different world: Japan. Although there are many studies on Japanese department stores in Japanese, focusing on how they were influenced by Western department stores, they are mostly subdivided on the basis of specific topics, such as levels of consumption in the interwar period or their economic impact during Japan’s period of high economic growth. The focus here is on the whole development process of department stores, bridging the gap between Western and Japanese studies on department stores.
The first stage in the development of Japanese department stores was in the early 20th century, when Japanese retailers raced to catch up with Western department stores to become modern Western-style retailers themselves; the second stage was in the late 20th century, when these new Japanese stores continued developing along their own unique path in order to target the domestic market during the growth of the Japanese economy, introducing ready-to-wear clothing, luxury brands, and gift products. In this way, Japanese department stores succeeded in increasing their efficiency and establishing a more upmarket image. However, in exchange for this prosperity, department stores also gave up control of their sales floors to the wholesalers and reduced their own merchandising skills. After the economic bubble burst in 1991, Japanese department stores began to suffer from decreased sales and lack of control over the points of sale in their stores.
There are trends in the use of teams in the classroom that stimulate both theory development and pedagogical innovation in this important area. In particular, three classroom applications are (1) building group process skills, (2) developing team leaders, and (3) using teams to learn course content. Of particular interest are new possibilities for utilizing leadered rather than leaderless groups, systematizing team coaching interventions, and enriching team-based learning. In this field of study, it is clear that pedagogical innovation and theoretical development interact to enhance student learning. Continued exploration in both aspects is encouraged.
Pierre-Yves Donzé and Rika Fujioka
The luxury business has been one of the fastest growing industries since the late 1990s. Despite numerous publications in management and business history, it is still difficult to have a clear idea of what “luxury” is, what the characteristics of this business are, and what the dynamics of the industry are. With no consensus on the definition of luxury among scholars and authors, the concept thus requires discussion. Luxury is commonly described as the high-end market segment, but the delimitation of the lower limit of this segment and its differentiation from common consumer goods are rather ambiguous. Authors use different terminology to describe products in this grey zone (such as “accessible luxury,” “new luxury,” and “prestige brands”).
Despite the ambiguous definition of “luxury,” various companies have described their own businesses in this way, and consumers perceive them as producers of luxury goods and services. Research on luxury business has focused mostly on four topics: (1) the evolution of its industrial organization since the 1980s (the emergence of large conglomerates such as Moët Hennessy Louis Vuitton SE or LVMH, and the reorganization of small and medium-sized enterprises); (2) production systems (the introduction of European companies into global value chains, and the role of country of origin labels and counterfeiting); (3) brand management (using heritage and tradition to build luxury brands); and (4) access to consumers (customization versus standardization). Lastly, new marketing communication strategies have recently been adopted by companies, namely customer relations via social media and the creation of online communities.
Jacqueline A. Gilbert
Organizational diversity is regarded positively, but haphazardly embraced. The absence of a cultural mandate at work (one which includes an emphasis on managing differences) can result in minority assimilation, and in either unintended bullying or in intentional abuse. Declining stock price, loss of goodwill, inability to recruit qualified candidates, and internal havoc marked by perpetuation of firm dysfunction may occur. These outcomes are especially alarming in the face of transformative population growth, in which minorities are predicted to become the demographic majority within the United States.
Inattention to employee misconduct prevents firms from experiencing enhanced productivity. Encouraging civil behavior is thus essential to engendering camaraderie in a diverse workforce, in which incivilities, or micro-inequities, are disproportionately targeted at minority groups. Management modeling of appropriate behavior (and swift action toward perpetrators for non-compliance) are necessary to achieve human capital integration.
Jeff Hearn and David Collinson
Even though gender and gender analysis are still often equated with women, men and masculinities are equally gendered. This applies throughout society, including within organizations. Following pioneering feminist scholarship on work and organizations, explicitly gendered studies on men and masculinities have increased since the 1980s. The need to include the gendered analysis of men and masculinities as part of gender studies of organizations, leadership, and management, is now widely recognized at least within gender research. Yet, this insight continues to be ignored or downplayed in mainstream work and even in some studies seen as “critical.” Indeed the vast majority of mainstream work on organizations still has either no gender analysis whatsoever or relies on a very simplistic and rather crude understanding of gender dynamics.
Research on men and masculinities has been wide ranging and has raised important new issues about gendered dynamics in organizations, including cultures and countercultures on factory shopfloors; historical transformations of men and management in reproducing patriarchies; the relations of bureaucracy, men, and masculinities; management-labor relations as interrelations of masculinities; managerial and professional identity formation; managerial homosociality; and the interplay of diverse occupational masculinities. Research has revealed how structures, cultures, and practices of men and masculinities continue to persist and to dominate in many contemporary organizations. Having said this, the concepts of gender, of men and masculinities, and of organization have all been subject to complex and contradictory processes that entail both their explicit naming and their simultaneous deconstruction and critique. This is illustrated, respectively, in the intersectional construction of gender; the pressing need to name men as men in analysis of organizational dominance, but also deconstruct the category of men as provisional; and in the multiplication of organizational forms as, for example, interorganizational relations, net-organizations, and cyberorganizations.
These contradictory historical and conceptual namings and deconstructions are especially important in the analysis of transnational organizations operating within the context of globalization, transnationalizations, production, reproduction, and trans(national) patriarchies. Within transnational organizations such as large gendered multinational enterprises, the taken-for-granted nature of transnational gendered hierarchies and cultures persists in management, maintained partly through commonalities across difference, gendered horizontal specializations, and controls. Transnational organizations are key sites for the production of a variety of developing forms of (transnational) business masculinities, some more individualistic, some marriage based, some nation based, some transcending nation. These masculinities have clear implications for gendered practices in private spheres, including the provision of domestic servicing often by Black and minority ethnic women. The growth of the knowledge economy brings further complications to these transnational patterns, through elaboration of techno-masculinities, and interactions of men, masculinities, and information and communication technologies. This is particularly relevant in the international financial sector, where constructions of men and masculinities are impacted by the gendering of capital and financial crisis, and gender regimes of financial institutions, as in men financiers’ risky behavior. Further studies are needed addressing the “gender-neutral” hegemony of organizations, leaderships, and managements, especially in transnational arenas, and organizations subject to changing technologies. Other key research issues concern analysis of neglected intersectionalities, including intersectional privileges, male/masculine/men’s bodies, and the taken-for-granted category of “men” in and around organizations.
This is an advance summary of a forthcoming article in the Oxford Research Encyclopedia of Business and Management. Please check back later for the full article.
Necessary Condition Analysis (NCA) understands cause-effect relations as “necessary but not sufficient.” It means that without the right level of the cause a certain effect cannot occur. This is independent of other causes, thus the necessary condition can be a single bottleneck, critical factor, constraint, disqualifier, or the like that blocks the outcome. This logic differs from conventional additive logic where factors on average contribute to an outcome and can compensate for each other. NCA complements conventional methods such as multiple regression and structural equation modeling. Applying NCA can provide new theoretical and practical insights by identifying the level of a factor that must be put and kept in place for having the outcome. A necessary condition that is not in place guarantees failure of the outcome and makes changes of other contributing factors ineffective.
NCA’s data analysis allows for a (multiple) bivariate analysis. NCA puts a ceiling line on the data in an XY-scatter plot. This line separates the space with cases from the space without cases. An empty space in the upper left corner of the scatter plot indicates that the presence of X is necessary for the presence of Y. The larger the empty space relative to the total space, the more X constrains Y, and the more Y is constrained by X, hence the larger the necessity effect size. A point on the ceiling line represents the level Xc of X that is necessary, but not sufficient, for level Yc of Y.
NCA is applicable to any discipline. It has already been applied in various business and management fields including strategy, organizational behavior, human research management, operations, finance, innovation, and entrepreneurship. More information about the method and its free R software package can be found on the
The New Public Management (NPM) is a major and sustained development in the management of public services that is evident in some major countries. Its rise is often linked to broader changes in the underlying political economy, apparent since the 1980s, associated with the rise of the New Right as both a political and an intellectual movement. The NPM reform narrative includes the growth of markets and quasi-markets within public services, empowerment of management, and active performance measurement and management. NPM draws its intellectual inspiration from public choice theory and agency theory.
NPM’s impact varies internationally, and not all countries have converged on the NPM model. The United Kingdom is often taken as an extreme case, but New Zealand and Sweden have also been highlighted as “high-impact” NPM states, while the United States has been assessed as a “medium impact” state. There has been a lively debate over whether NPM reforms have had beneficial effects or not. NPM’s claimed advantages include greater value for money and restoring governability to an overextended public sector. Its claimed disadvantages include an excessive concern for efficiency (rather than democratic accountability) and an entrenchment of agency-specific “silo thinking.”
Much academic writing on the NPM has been political science based. However, different traditions of management scholarship have also usefully contributed in four distinct areas: (a) assessing and explaining performance levels in public agencies, (b) exploring their strategic management, (c) managing public services professionals, and (d) developing a more critical perspective on the resistance by staff to NPM reforms.
While NPM scholarship is now a mature field, further work is needed in three areas to assess: (a) whether public agencies have moved to a post-NPM paradigm or whether NPM principles are still embedded even if dysfunctionally so, (b) the pattern of the international diffusion of NPM reforms and the characterization of the management knowledge system involved, and (c) NPM’s effects on professional staff working in public agencies and whether such staff incorporate, adapt, or resist NPM reforms.