Management compensation systems in MNCs and domestic firms. Cross-national empirical evidence

• This is a study of the relationship between institutional settings and managerial compensation systems, based on extensive cross-national survey evidence. • We compare differences in practices between Multinational Corporations (MNCs) and domestic firms across a range of capitalist archetypes. • We find that MNCs are more likely to promote compensation systems that incentivise managers in line with organisational performance compared to domestic firms. Our findings also reveal persistent diversity reflecting firm type and institutional setting. We find that the gap between MNCs and domestic firms in terms of the usage of incentive-related compensation is less pronounced in Liberal Market Economies than in other settings. This suggests that it is a combination of being an MNC and the specific home locale that moulds approaches to managerial compensation. This reflects considerable hybridisation of practices within and between settings.

The four pillars of corporate responsibility: ethics, leadership, personal responsibility and trust

Purpose – This paper aims to examine how to further embed CSR thinking and practice into corporations, particularly in emerging markets, by reviewing and drawing similarities between key issues faced by all senior managers, namely ethics, leadership, personal responsibility and trust. Design/methodology/approach – This paper presents a conceptual exploration of global CSR practices using social psychology and overlays this concept with strategic and institutional theory in order to encourage new ways of thinking about CSR adoption, especially in emerging markets. Findings – The paper reveals the importance of shareholder needs on global corporate decision making and applies alternative conceptual models to help businesses to devise better CSR practices and individuals to align their actions to their own values. Originality/value – This paper strongly argues for blending different theoretical foundations from the management and organization literature in order to draw comparisons between current global CSR practice and the potential for its further adoption in emerging markets.

Conceptualising public-private partnerships: a critical appraisal of approaches to meanings and forms

Purpose – The purpose of this article is to survey various meanings attached to a public-private partnership (PPP) and related aspects in Western literature, and identify commonalities and differences between them. Additionally, the article intends to critically assess conflicting and overlapping views on contractual and institutional PPPs, their forms and models, and draw insights for transitional economies. Design/methodology/approach – The article contrasts and compares views on PPP meanings, forms and models within Western PPP literature, and also draws comparisons with understanding of partnership aspects in the Russian language sources. The article examines theories underpinning PPPs, builds connections to PPP advantages and drawbacks, and provides critical assessment of net benefits that PPPs may bring along to the society. Findings – The article concludes that future PPP research in transitional countries such as Kazakhstan and Russia, particularly in the area of organisational and power arrangements in partnerships, may delineate new concepts such as government as a guarantor of a PPP project, social significance of a PPP project, and risk management in a country's contextual environment. Practical implications – In transitional countries, in which PPPs are in their infancy, clarification of theoretical positions, and identification of commonalities and differences between meanings attached to the PPP terminology may enable better decisions by researchers and practitioners in their selection and further development of partnerships and related concepts. Originality/value – Research in the field of PPPs in transitional countries such as Russia and Kazakhstan is in its infancy. The paper intends to contribute to the body of knowledge about PPPs by providing detailed account and categorisation of their principal meanings, forms, models, underpinning theories, and drawing insights for future research in transitional countries.

A longitudinal study of carbon disclosure strategy: evidence from utility, energy and mining industries in the UK

The paper investigates how energy-intensive industries respond to the recent government-led carbon emission schemes through the content analysis of 306 annual and standalone reports of 25 UK listed companies from 2004 to 2012. This period of reporting captures the trend and development of corporate disclosures on carbon emissions after the launch of EU Emissions Trading Schemes (ETS) and Climate Change Act (CCA) 2008. It is found that in corresponding to strategic legitimacy theory, there is an increase in both the quality and quantity of carbon disclosures as a response to these initiatives. However, the change is gradual, which reflects in the achievement of peak disclosure period two years after the launch. It indicates that the new legislations have a lasting impact on the discourses rather than an immediate legitimacy threat from the perspective of institutional legitimacy theory. The results also show that carbon disclosures are an institutionalised practice as companies in the same industries and/or with same carbon trading account status appear to imitate and adopt the industry’s ‘best practice’ disclosure strategy to maintain legitimacy. The trend analysis suggests that the overall disclosure practice is still in its infant stage, especially in the reporting of quantitative and monetary items. The paper contributes to the social and environmental accounting literature by adopting both strategic and institutional view of legitimacy, which explains why carbon disclosures evolve in a specific way to meet the expectation of various stakeholders.

Youth unemployment and vocational training

This paper focuses on the determinants of the labor market situation of young people in developed countries and the developing world, with a particular emphasis on the role of vocational training and education policies. We highlight the role of demographic factors, economic growth and labor market institutions in explaining young people's transition into work. Subsequently, we assess differences between the setup and functioning of the vocational education and training policies across major world regions as an important driver of differential labor market situation of youth. Based on our analysis, we argue in favor of vocational education and training systems combining work experience and general education and provide some policy recommendations regarding the implementation of education and training systems adapted to a country's economic and institutional context.

Towards (more) integrity in academia: transcending neo-liberal assumption of research and knowledge creation and the “rules” supressing academic freedom

European researchers across heterogeneous disciplines voice concerns and argue for new paths towards a brighter future regarding scientific and knowledge creation and communication. Recently, in biological and natural sciences concerns have been expressed that major threats are intentionally ignored. These threats are challenging Europe’s future sustainability towards creating knowledge that effectively deals with emerging social, environmental, health, and economic problems of a planetary scope. Within social science circles however, the root cause regarding the above challenges, have been linked with macro level forces of neo-liberal ways of valuing and relevant rules in academia and beyond which we take for granted. These concerns raised by heterogeneous scholars in natural and the applied social sciences concern the ethics of today’s research and academic integrity. Applying Bourdieu’s sociology may not allow an optimistic lens if change is possible. Rather than attributing the replication of neo-liberal habitus in intentional agent and institutional choices, Bourdieu’s work raises the importance of thoughtlessly internalised habits in human and social action. Accordingly, most action within a given paradigm (in this case, neo-liberalism) is understood as habituated, i.e. unconsciously reproducing external social fields, even ill-defined ways of valuing. This essay analyses these and how they may help critically analyse the current habitus surrounding research and knowledge production, evaluation, and communication and related aspects of academic freedom. Although it is acknowledged that transformation is not easy, the essay presents arguments and recent theory paths to suggest that change nevertheless may be a realistic hope once certain action logics are encouraged.

Spatial regulation and international differences in housebuilding industries

Housebuilding firms vary across the world in size and in the scope of their activities. This variety may seem surprising in an industry with open technologies and ease of entry. While market and technological factors may go some way to explain such differences, much of the causes of variation lie in dissimilarities in regulatory and institutional frameworks. These themes are explored through a comparative analysis of the structure of the residential development industry in Australia, the UK and the USA and in analysis of firm size hierarchies. The firm concentration ratio is much higher in the UK than the other two countries and the reasons may lie in the geography of the country but also in the peculiarities of its planning system.

Can institutional investors bias real estate portfolio appraisals? Evidence from the market downturn

This paper investigates the extent to which institutional investors may have influenced independent real estate appraisals during the financial crisis. A conceptual model of the determinants of client influence on real estate appraisals is proposed. It is suggested that the extent of clients’ ability and willingness to bias appraisal outputs is contingent upon market and regulatory environments (ethical norms and legal and institutional frameworks), the salience of the appraisal(s) to the client, financial incentives for the appraiser to respond to client pressure, organisational culture, the level of moral reasoning of both individual clients and appraisers, client knowledge and the degree of appraisal uncertainty. The potential of client influence to bias ostensibly independent real estate appraisals is examined using the opportunity afforded by the market downturn commencing in 2007 in the UK. During the market turbulence at the end of 2007, the motivations of different types of owners to bias appraisals diverged clearly and temporarily provided a unique opportunity to assess potential appraisal bias. We use appraisal-based performance data for individual real estate assets to test whether there were significant ownership effects on performance during this period. The results support the hypothesis that real estate appraisals in this period reflected the differing needs of clients.

Orientalism and intelligence analysis: deconstructing Anglo-American notions of the ‘Arab’

Despite revived notions of a ‘cultural divide’ between East and West, Edward's Said's ‘Orientalism’ has received little attention from scholars of intelligence and diplomacy. This article brings to light for the first time a number of recently declassified documents of a different nature to usual assessments produced by Anglo-American analytic bodies: those focussed primarily on the issue of ‘national character’. Using and critiquing Said's thesis of Western ‘Orientalism’ it reveals some critical and enduring conceptualizations articulated by the diplomatic and intelligence community about Arab culture such as the role of Islam, rhetoric, political motivation and notions of ‘honour’. Such a critical approach demonstrates how diplomatic and intelligence history can also be a history of culture, ideas and institutional mentalité.

Self-interest and ideology : bureaucratic corruption in Vietnam

Remedies for corruption in socialist-transforming East Asia (China and Vietnam) primarily apply ‘public choice’ theory, invoking Weberian imagery of socially detached bureaucratic decision-making. However, as the episodes of corruption accumulate, it is becoming clear that existing legalistic conceptions of corruption must give way to analytical methods that take into account broader social and institutional perspectives. This article evaluates public choice theory by examining ideological explanations for bureaucratic corruption in Vietnam.

Conservation and development interventions as networks: The case of the India ecodevelopment project, Karnataka

Experience with community-based biodiversity conservation programs in the 1980s and 1990s contributed to the conviction among donor agencies and researchers that such programs must be based on the active support of local resource users, appropriate incentives, and institutional support. Yet the continuing struggles of practitioners to implement conservation interventions that are socially and ecologically sustainable point to difficulty in realizing these principles on the ground. Actor-oriented research in rural development and actor network theory emphasize that the capacity of facilitators to engage effectively in negotiation processes and establish strong networks with key actors is critical in mediating intervention outcomes. Drawing on the case of the India Ecodevelopment Project at Rajiv Gandhi (Nagarahole) National Park in Karnataka, India, this paper explores the role of relationships and networks between actors in a conservation and development intervention, finding that practitioners need to focus on negotiation and network building as a central rather than subsidiary part of the intervention process. Associated with this is the need for change in the way donor and implementing agencies conduct themselves, to promote communication and greater flexibility in intervention processes.

Performativity, youth and injurious speech

Young people may become disengaged from schooling in the middle years for a multitude of reasons. We consider the story of one young woman from the state of New South Wales, in Australia, who left school early, and consider some of the factors that contributed to her decision to remove herself from compulsory education. This young woman encountered injurious speech relating to her race, gender, sexuality, size and ability. In undertaking this analysis, we draw on Foucaultian theorizing of the subject and on the related Butlerian notion of performativity. Performative acts that occur within and around schools have the power to injure, to alienate and to potentially exclude students from access to schooling. This article details how performative acts may operate as mechanisms of exclusion, obfuscating the social conventions and institutional structures that invest them with power. Our analysis of how performative acts function in school settings concludes with some suggestions of how teachers and students might think differently about the production of their own and others' existence.

Biotechnology and governance in Australia and Sweden: path dependency or instutional convergence?

The development of new generic technologies occurs within traditional structures of industry-government interaction, but also unleashes a process of 'creative destruction' generating new institutional patterns. This article, focusing on biotechnology, describes and compares policy processes and institutional arrangements in Australia and Sweden. The Swedish biotechnology sector displays a pattern of fragmentation and relatively weak state steering. Australia, by contrast, has implemented a set of comparatively coordinated regulatory and other measures to foster the growth of biotechnology. This observation contradicts the characterisation of Sweden as a 'strong state' economy, and challenges the depiction of Australia as lacking in state steering capacity. The relative open-endedness of the search in these countries for a mode of regulation of biotechnology suggests that the role of the state in economic restructuring today is fundamentally distinct from that of earlier periods.

Predicting IHRM strategy and practice decisions : development of the IHRM orientation typology

International human resource management (IHRM) is becoming increasingly fundamental to organisational success, as globalisation forces demand organisations to design and implement a global strategy. One of the most critical choices faced by IHRM practitioners is whether and when an organisation should adapt its human resource policies and practices to the local context (localisation). A typology of International Human Resource Management Orientations (IHRMO) that clarifies what IHRMO’s are and what they entail is developed from a review of the literature on localisation and globalisation, convergence and divergence and Perlmutter’s management typology. Additionally, two theoretical models are developed that predict which IHRM orientation identified in the typology should be adopted. The article takes a step towards elucidating effective IHRM strategy and practice decision-making by showing that culture and institutional pressures, amongst other tings, do make a difference.