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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.
Academic integrity is an interdisciplinary concept that provides the foundation for every aspect and all levels of education. It is a term that evokes strong emotions in teachers, researchers, and students, not least because it is usually associated with negative behaviors. When considering academic integrity, the discussion tends to revolve around cheating, plagiarism, dishonesty, fraud, and other academic malpractices and how best to prevent these behaviors. A more productive approach entails a focus on promoting the positive values of honesty, trust, fairness, respect, responsibility, and courage as the intrinsically motivated drivers for ethical academic practice. Academic integrity is much more than “a student issue” and requires commitment from all stakeholders in the academic community, including undergraduate and postgraduate students, teachers, established researchers, senior managers, policy-makers, support staff, and administrators.
Torben Juul Andersen and Carina Antonia Hallin
Contemporary organizations operate under turbulent business conditions and must adapt their strategies to ongoing changes. Sustainable performance can be achieved when the organization engages in interactive processes that link emerging opportunities to forward-looking analytics. But few organizations are able to practice this consistently. Fast processes performed by managers at the frontline respond to ongoing environmental stimuli and slow processes initiated by managers at the center interpret events and reasons about updated strategic actions. Current experiential insights from the fast processes can be aggregated systematically to inform the slow processes of reasoning. When the fast and slow processes interact they can form a dynamic system that adapts organizational activities to changing conditions.
Steven A. Stewart and Allen C. Amason
Since the earliest days of strategic management research, scholars have sought to measure and model the effects of top managers on organizational performance. A watershed moment in this effort came with the 1984 introduction of Hambrick and Mason’s upper echelon view and their contention that firms are a reflection of their top management teams (TMT). An explosion of research followed and hundreds, if not thousands, of manuscripts have since been published on the subject. While a number of excellent reviews of this extensive literature exist, a relative few have asked questions about the overall state and future of the field. We undertook this assessment in an effort to answer some key questions. Are we still making progress on the big questions that gave rise to the upper echelon view, or have we reached a point of diminishing returns with this stream of research? If we are at an inflection point, what are the issues that should drive future inquiry about top management teams?
Mallory E. Compton and Kenneth J. Meier
Pathologies inherent in democratic political systems have consequences for bureaucracy, and they need to be examined. Limited in time, resources, and expertise, elected officials turn to bureaucratic institutions to carry out policy goals but all too often give public agencies too little support or too few resources to implement them effectively. In response to the challenges imposed by politics, public agencies have sought organizational solutions. Bureaucracies facing shortages of material resources, clear goals, representation of minority interests, or public trust have in recent decades adopted less hierarchical structures, exploited networks and privatization, and taken a representative role. In other words, the evolution of postbureaucratic governance institutions is in part a consequence of political incentives. Efforts to diagnose and resolve many of the shortcomings attributed to bureaucracy therefore require an accounting of the political processes shaping the context in which public managers and bureaucrats operate.
Margarethe F. Wiersema and Joseph B. Beck
Corporate or product diversification represents a strategic decision. Specifically, it addresses the strategic question regarding in which businesses the firm will compete. A single-business company that expands its strategic scope by adding new businesses becomes a diversified, multibusiness company. The means by which a company expands its strategic scope is by acquiring businesses, investing in the development of new businesses, or both. Similarly, an already diversified firm can reduce its strategic scope by divesting from or closing businesses.
There are two fundamentally different types of corporate diversification strategy, depending on the interrelatedness of the businesses in the company’s portfolio: related diversification and unrelated diversification. Related diversification occurs when the businesses in the company’s portfolio share strategic assets or resources, such as technology, a brand name, or distribution channels. Unrelated diversification occurs when a company’s businesses do not share strategic assets or resources and do not have interrelationships of strategic importance. Companies can pursue both types of diversification simultaneously, and thus have a portfolio of businesses both related and unrelated. In addition to variations in the type of diversification, companies can vary in the extent of their diversification, ranging from business portfolios with very limited diversification to highly diversified portfolios.
Decisions regarding the diversification strategy of a firm represent major strategic scope decisions since they impact the markets and industries in which the company will compete. Companies can increase or reduce their level of diversification for a variety of reasons. Economic motives, for example, include the pursuit of economies of multiproduct scale and scope, whereby per-unit costs may be lowered through the increase in sales volume or other fixed-cost reducing benefits associated with growth through diversification. In addition, companies may diversify for strategic reasons, such as enhancement of capabilities or superior competitive positioning through entry into new product markets. Similarly, economic and strategic reasons can motivate the firm to refocus and reduce its level of diversification when the strategic and economic rationales for being in a particular business are no longer justified.
The performance consequences of corporate diversification can vary, depending on both the extent of the firm’s diversification and the type of diversification. In general, research indicates that high levels of diversification are value-destroying due to the integrative and complexity-associated costs that administering an extremely diversified portfolio imposes on management. Nevertheless, related diversification, where the company shares underlying resources across its business portfolio (e.g., brand, technology, and distribution channels), can lead to higher levels of performance than can unrelated diversification, due to the potential for enhanced profitability from leveraging shared resources. Corporate diversification was a major U.S. business trend in the 1960s. During the 1980s, however, pressure from the capital market for shareholder wealth maximization led to the adoption of strategies whereby many companies refocused their business portfolios and thus reduced their levels of corporate diversification by divesting unrelated businesses in order to concentrate on their predominant or core business.
Kim Cliett Long
E-learning expands options for teaching and learning using technology. This nomenclature has been solidly in use for the last ten years. The expansive and ever fertile frontier of e-learning—a term used interchangeably with distance and online learning—has become standard fare as an educational delivery solution designed to enhance knowledge and performance. Many educational institutions, corporate enterprises and other entities are utilizing web-based teaching and learning methodologies to deliver education either partially or wholly online using electronic platforms. The learning value chain, including management and delivery, has created multimodal systems, content, and processes to increase accessibility, measurability, and cost effectiveness by infusing advanced learning techniques, such as adaptive learning or communities of practice, among students, employee groups, and lifelong learners. It is interesting to note that e-learning encapsulates internet based courseware and all other asynchronous and synchronous learning, as well as other capabilities for supporting learning experiences.
Student success and advancements in technology are now inextricably linked as a result of higher education institutions embracing and offering e-learning options. The absence of direct instructor guidance makes distance learning particularly difficult for some students. Certain students struggle with the lack of guidance inherent in online learning and the requisite need to work independently. In particular, the lack of high touch strategies in e-learning often leads students to drop or fail courses. While some students struggle to remain engaged in technology-enabled learning, technology is often the vehicle for keeping these same students on task. There are a variety of electronic tools designed to augment online learning and keep online learners on task. Podcasts, for example, can be easily downloaded, then played back on a student’s media player or mobile device at a later date. The student is not tied to a computer, which results in a more comprehensive learning experience.
In many cases, e-learning has become a very lucrative and desirable marketplace for higher education institutions. The business case for e-learning is a clarion call for tight integration among business, human resources, and knowledge and performance management. Hence, it is incumbent upon educational institutions to instill approaches that focus on the learner, learning, and improved performance, more so than the tools and technology. Of further importance is the need for higher education institutions to provide stratagems for developing and supporting caring online relationships, individualized student environments, collaboration, communication, and e-learning culture. Ultimately, institutions should measure not only improved business and performance, but also improved student online learning aptitudes (more self-motivated, self-directed, and self-assessed learning).
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.
Since the dawn of artistic pursuits by human beings, the artist has been thought of as having a special sphere of influence for representing feelings, emotions, and human conditions through their art. Fast forward to the early days of arts apprenticeship and education, and we can generally conclude that the domain of arts education prepares artists for such representation of feelings and emotions. But what is missing from arts education are skill sets needed to manage the economic realities of artistic pursuits. This skill gap perhaps gave birth to the starving-artist myth, a notion that has endured since the early 1600s. Passion and desire for artistic expression are considered superior to business and economic considerations. Throw into this situation concern for social justice, ethics, and political invective, and a mix of dichotomies emerges. Also, consider that entrepreneurship is primarily an economic behavior. Some suggest that arts entrepreneurship lacks empirical studies, and thus lacks legitimacy. The concepts presented in this discussion include observations in preparing arts entrepreneurs for success as defined by themselves.
As one of the early developers of arts entrepreneurship curriculum, I was expected to define the domain of arts entrepreneurship. Added to this expectation are my duties as director of the Coleman Fellows Program. This task includes the need for developing effective pedagogical constructs that can cultivate arts entrepreneurship modules and lesson plans across the Coleman Fellows Program. Based on my own entrepreneurial experiences, my non-academic approach to this work is viewed by artists as “commercializing the arts” and seen as a polluter of the purist methodology to arts. My colleagues who teach entrepreneurship label this differently. Some say the approach is creative; others think it pollutes entrepreneurship education. Because of these unexpected but different and sometimes passionate reactions from groups of educators and artists, I started investigating the revenue models of arts-based industries with the hope of bridging these dichotomies. The age-old adage “follow the money” seemed to be a good approach to better understand such reactions.
The key sources of information for this discussion include the Coleman Fellows Program, a nationwide program initiated and supported by the Coleman Foundation, located in Chicago, Illinois. I also rely on 30 interviews with arts faculty and 32 interviews with student artists. Added to these sources of data is my work with the Arts Entrepreneurship Special Interest Group, which I helped create and led for a few years with the United States Association for Small Business and Entrepreneurship (USASBE), a member of International Council of Small Business (ICSB). I also include contributions to this field by Linda Essig, publisher of Artivate, the very first journal dedicated to entreprenuership in the arts, and Gary Beckman’s doctoral thesis and his subsequent writings.
Felice B. Klein, Kevin McSweeney, Cynthia E. Devers, Gerry McNamara, and Spenser Blosser
Scholars have devoted significant attention to understanding the determinants and consequences of executive compensation. Yet, one form of compensation, executive severance agreements, has flown under the radar. Severance agreements specify the expected payments and benefits promised executives, upon voluntary or involuntary termination. Although these agreements are popular among executives, critics continually question their worth. Yet severance agreements potentially offer three important (but less readily recognized) strategic benefits. First, severance agreements are viewed as a means of mitigating the potential risks associated with job changes; thus, they can serve as a recruitment tool to attract top executive talent. Second, because severance agreements guarantee executives previously specified compensation in the event of termination, they can help limit the downside risk naturally risk-averse executives face, facilitating executive-shareholder interest alignment. Third, severance agreements can aid in firm exit, as executives and directors are likely to be more open to termination, in the presence of adequate protection against the downside.
Severance agreements can contain provisions for ten possible termination events. Three events refer to change in control (CIC), which occurs under a change in ownership. These are (1) CIC without termination, (2) CIC with termination without cause, and (3) CIC with termination for cause. Cause is generally defined by events such as felony, fraud, embezzlement, neglect of duties, or violation of noncompete provisions. Additional events include (4) voluntary retirement, (5) resignation without good reason, (6) voluntary termination for good reason, (7) involuntary termination without cause, (8) involuntary termination with cause, (9) death, and (10) disability. Voluntary retirement and resignation without good reason occurs when CEOs either retire or leave under their own volition, and voluntary termination with good reason occurs in response to changes in employment terms (e.g., relocation of headquarters). Involuntary termination refers to termination due to any reason not listed above and is often triggered by unsatisfactory performance.
Although some prior work has addressed the antecedents, consequences, and moderators of severance, the findings from this literature remain unclear, as many of the results are mixed. Future severance scholars have the opportunity to further clarify these relationships by addressing how severance agreements can help firms attract, align the interests of, and facilitate the exit of executives.
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.