Robin Kramar, Vijaya Murthy, and James Guthrie
This article discusses how the shift to a knowledge-based economy has propelled firms' human capital (HC) and associated intellectual resources to center stage. It notes that while organizational researchers have highlighted the increasingly strategic role of HC, and despite a growing realization among firms that their human-knowledge resources are becoming more important, managerial awareness of the value of HC remains low. The article suggests that HC management, measurement, and reporting are increasingly vital capabilities that all organizations will need to acquire. It proceeds to analyse the nature of HC, trace the evolution of HC accounting, identify current accounting challenges, and describe contemporary frameworks that are seeking to address these challenges. The article defines HC within organizations as ‘employee capability, knowledge, innovation, adaptability, and experience’, noting that it is typically represented as one element in a tripartite framework of intellectual capital, the other two being relational capital and organizational capital.
Mooweon Rhee and Tohyun Kim
This article reports a behavioural theory of reputation repair with a focus on the behavioural mechanisms underlying an organisation's response to a reputation-damaging event. The reputation repair model views reputation repair as a process of problem solving, consisting of three steps: problem recognition, search for solutions and implementation of solutions. Both an organisation's successful reputation repair and an ideal research program on reputation repair must cover both the issues of repairing or reviving the stakeholders' perceptions of the organisation by protecting these stakeholders from the harm of the reputation-damaging event, and determining the root causes and restructuring or reorganising the organisation's behaviour and position to prevent the recurrence of similar events. Managing the stakeholders' perceptions of the organisation can serve as a key supplement to the substantive reputation repair process and as a crucial part of an organisation's successful reputation repair.
Geoffrey Wood and Douglas Michael Wright
The financial crisis of 2008 has prompted some people to ask basic questions about the extent to which large-scale corporate governance failures have underestimated the basis of the global economy. This chapter carefully critiques the financialization perspective on corporate governance, and argues that the financialization process does not comprise a new epoch and is not a coherent phenomenon. It suggests that socio-economic change is a process of continual change that embodies continuities going back to previous eras. It states that institutions are highly unlikely to be perfectly aligned with and follow what is done at firm level, which may be the reason behind the various strengths and weaknesses encountered in Chandlerian managerial capitalism. The literature on financialization is also examined.
Samira Nuhanovic-Ribic, Ermanno C. Tortia, and Vladislav Valentinov
Over the last decades, agricultural co-operatives grew substantially in most developed and developing countries, often reaching dominant market positions. We inquire into the economic mechanism behind this growth, by elaborating on the relation between co-operative identity and co-operative benefits. We highlight the ability of agricultural co-operatives to co-ordinate large-scale production, to monitor work contributions and product quality, and to ensure economic independence of farmer members. Following the two principal streams in the economic literature, we distinguish between the conceptions of agricultural co-operatives as units of vertical integration and as firms characterized by common governance of collective entrepreneurial action and ability to reduce transaction costs and economic risk. We describe the financial and governance limitations of agricultural co-operatives while taking account of new co-operative models presenting institutional tools introduced to overcome these limitations. We conclude by suggesting directions for enhancing the role of co-operatives in agricultural and rural development.
Co-operatives have played a significant role in the agricultural sector in China, particularly since the promulgation of a first national co-operative law in 2007. This chapter offers an analysis of the evolution, diversity, and dynamics of agricultural co-operatives in contemporary China and the institutional environments in which the development of these organizations took place. A multi-dimensional typology of co-operatives is proposed in order to provide a framework of analysis. This analysis enables one to understand the diversified driving forces, the operational patterns, and the organizational missions of agricultural co-operatives in China. The significant contributions provided by each type of co-operative to poverty reduction, work integration, and local community development is emphasized. The chapter concludes with a discussion on the challenges and opportunities for Chinese co-operatives’ future development.
David P. Lepak, Riki Takeuchi, and Juani Swart
This article focuses on the alignment between human capital (HC) and organizational needs. It focuses on the question of how alignment between HC and organizational strategy influences individual and organizational performance. The starting point for this article is the human-resource architecture proposed by Lepak and Snell (1999), which suggests that firms' decisions to build or buy in HC are influenced by its strategic value and uniqueness. At the individual level of analysis, the article investigates the potential influence of job security/career prospects and the target of an individual's commitment on performance. In a wide-ranging analysis, it questions whether conventional goals of maximizing workforce commitment are necessarily desirable, given that, while core workers and firm's targets of commitment are likely to be in alignment, the targets of commitment for those in job–productivity relationships are more likely to align with their future careers outside the firm.
Tina Dacin, Douglas Reid, and Peter Smith Ring
This article defines collaborations between firms that involve the creation of a separate, autonomous, and legally recognized firm — a ‘newco’ — as a joint venture. Joint ventures usually, but not always, involve parties who have contributed equity in creating the ‘newco’, so the term joint venture in this article refers to equity joint ventures. Joint ventures typically involve collaborations between two parties, but there can be more. This article defines an alliance as a cooperative agreement between at least two firms. These firms combine their resources and capabilities in the pursuit of collective and individual strategic objectives. This article begins with a discussion of the frequency with which firms rely on joint ventures and alliances and the motivations that lead economic actors to develop joint ventures and/or alliances. It provides a detailed discussion of the theory underlying partner selection in joint ventures and alliances.
This article considers the analysis of the firm's strategic environment. Its objectives are to examine the concept of the environment in the context of strategic management, the role of the environment in the development of the field of strategic management, the implications of the environment for strategic management, and the role and analysis of the common strategic environment and of the industry and business unit environment. Strategic management is concerned with, amongst other things, how firms relate to each other, whether by competing, cooperating, or just coexisting. Consequently, the most relevant distinction to be drawn amongst potential subsets of the strategic environment surrounding the firm is between those factors and conditions which affect all related firms.
This article aims to explain the concept of organizational competences and its central role in contemporary strategic thinking about how a firm creates competitive advantages, to clarify the strategic roles of resources, capabilities, and management processes in creating organizational competences and competitive advantages, and to explain the essential aspects of a competence framework for the strategic analysis of organizations. The emergence of the field of strategic management in the last decades of the twentieth century may be broadly divided into two major periods of development of foundational concepts and theory. Both periods of development have tried to contribute to answering the central concern of strategic management, which is understanding how a firm might achieve competitive advantage in its industry.
James M. Poterba
This article summarizes the current operation of annuity markets and the potential role of these markets in providing retirement security. It is divided into six sections. The first describes the basic structure of annuity products, with particular reference to those that are currently available in the United States and the United Kingdom. The second section explains the standard analysis of why annuities are attractive to individuals who face uncertainty about length of life, and describes several hypotheses that have been advanced to explain the limited size of private annuity markets. The third section describes the standard methodology for comparing the expected present value of annuity payouts with their cost. The fourth section examines several aspects of individual demand for annuity products. The fifth section briefly discusses the role of regulation in annuity markets. The brief conclusion considers a number of emerging issues that bear on the role of private annuity markets in providing retirement-income security.