The impact of institutional complexity and top management characteristics on executive compensation and firm performance

While most studies take a dyadic view when examining the environmental difference between the home country of a multinational enterprise (MNE) and a particular foreign country, they ignore that an MNE is managing a network of subsidiaries embedded in diverse environments. Additionally, neither the impacts of global environments on top executives nor the effects of top executives’ capabilities to handle institutional complexity are fully explored. Thus, using a three-essay format, this dissertation tried to fill these gaps by addressing the effects of institutional complexity and top management characteristics on top executive compensation and firm performance. ^ Essay 1 investigated the impact of an MNE’s institutional complexity, or the diversity of national institutions facing an MNE’s network of subsidiaries, on the top management team (TMT) compensation. This essay proposed that greater political and cultural complexity leads to not only greater TMT total compensation but also to a greater portion of TMT compensation linked with long-term performance. The arguments are supported in this essay by using an unbalanced panel dataset including 296 U.S. firms with 1,340 observations. ^ Essay 2 explored TMT social capital and its moderating role on value creation and appropriation by the chief executive officer (CEO). Using a sample with 548 U.S. firms and 2,010 observations, it found that greater TMT social capital does facilitate the effects of CEO intellectual capital and social capital on firm growth. Finally, essay 3 examined the performance implications for the fit between managerial information-processing capabilities and institutional complexity. It proposed that institutional complexity is associated with the needs of information-processing. On the other hand, smaller TMT turnover and larger TMT size reflect larger managerial information-processing capabilities. Consequently, superior performance is achieved by the match among institutional complexity, TMT turnover, and TMT size. All hypotheses in essay 3 are supported in a sample of 301 U.S. firms and 1,404 observations. ^ To conclude, this dissertation advances and extends our knowledge on the roles of institutional environments and top executives on firm performance and top executive compensation.^

Strategic Approach to Smoking Bans: Delaware Gaming Industry

A study of Delaware’s statewide smoking ban suggests that it may have had a significant negative economic impact on the state’s gaming industry. However, such impact may vary in different segments of the hospitality industry, and therefore, must be examined strategically and on a case-by-case basis. The specific market environment, including both demand and competition of each state or each municipality, should be carefully analyzed by both governmental decision makers and by hospitality operators who influence these decision makers.

In Favor of Hospitality-Management Education

Despite the almost one-hundred-year history of hospitality-management education; the hundreds of well-established two-year, four-year, and graduate programs worldwide; and the hundreds of thousands of graduates those programs have prepared for careers in the industry, hospitality-management education’s merit and place in higher education are still questioned at times, to the dismay of hospitality educators the world over. This article delineates several features of hospitality management that make these programs valuable and unique and provides compelling arguments in its favor. The arguments include: 1) courses tailored to the hospitality industry, the world’s largest industry; 2) focus on small-business management as well as corporate enterprises; 3) emphasis on services and service management, not manufacturing; 4) programs and coursework focused on people management, which it at the core of the hospitality businesses; 5) unique focus on the specific issues of food and beverage management, the largest component of the hospitality industry; and 6) transferability of graduates’ knowledge and skill sets, which are in high demand among other service industries. While business programs focus on the fundamentals of management and production, hospitality- management programs prepare graduates who are aware of general management principles and are particularly well-versed in managing the guest experience and employees in a service environment.

Current State of Management/Union Relations in Hospitality Sector

Labor management relations in the hospitality sector is an important aspect of effective management. Increasingly, unions are becoming proactive in organizing hospitality workers. This manifests itself in strikes, boycotts, picketing, sexual harassment complaints, and complaints to OSHA regarding safety and health workplace violations. This research monitors the current scene with respect to labor management relations and analyzes work issues that have been brought up for third-party resolution by NLRB staff or arbitrators. The study reports on 66 NLRB cases and 104 arbitration cases. Issues brought before the NLRB include mostly contract interpretations. In arbitration, there were mostly discipline issues, including work rule violations, disorderly conduct, poor performance and employee theft. Quite often, the proposed job action on the part of the employer was discharge. In NLRB cases, the employee usually prevailed, while in arbitration the employer usually prevailed.

Effects of computer self efficacy and positive mood in business -to -business service encounters

Attempts to improve the level of customer service delivered have resulted in an increased use of technology in the customer service environment. Customer-contact employees are expected to use computers to help them in providing better service encounters for customers. This research study done in a business-to-business environment explored the effects of customer-contact employees' computer self efficacy and positive mood on in-role customer service, extra-role customer service and organization citizenship. It also examined the relationship of customer service to customer satisfaction and customer delight. ^ Research questions were analyzed using descriptive statistics, frequency distributions, correlation analysis, and regression analysis. Results indicated that computer self efficacy had a greater impact on extra-role customer service than it did on in-role customer service. Positive mood had a positive moderating influence on extra-role customer service but not on in-role customer service. ^ There was a significant relationship between in-role customer service and customer satisfaction but not between extra-role customer service and customer satisfaction. There was no significant relationship between in-role customer service and customer delight nor between extra-role customer service and customer delight. There was a statistically greater positive relationship between joy experienced by clients and customer delight than between pleasant surprise and customer delight. ^ This study demonstrated the importance of facilitating customer-contact employee positive mood on the job in order to improve the level of extra-role customer service delivered. It also showed that increasing the level of customer service does not necessarily lead to higher levels of customer satisfaction. ^

A deontic analysis of inter -organizational control requirements

This research focuses on the design and verification of inter-organizational controls. Instead of looking at a documentary procedure, which is the flow of documents and data among the parties, the research examines the underlying deontic purpose of the procedure, the so-called deontic process, and identifies control requirements to secure this purpose. The vision of the research is a formal theory for streamlining bureaucracy in business and government procedures. ^ Underpinning most inter-organizational procedures are deontic relations, which are about rights and obligations of the parties. When all parties trust each other, they are willing to fulfill their obligations and honor the counter parties’ rights; thus controls may not be needed. The challenge is in cases where trust may not be assumed. In these cases, the parties need to rely on explicit controls to reduce their exposure to the risk of opportunism. However, at present there is no analytic approach or technique to determine which controls are needed for a given contracting or governance situation. ^ The research proposes a formal method for deriving inter-organizational control requirements based on static analysis of deontic relations and dynamic analysis of deontic changes. The formal method will take a deontic process model of an inter-organizational transaction and certain domain knowledge as inputs to automatically generate control requirements that a documentary procedure needs to satisfy in order to limit fraud potentials. The deliverables of the research include a formal representation namely Deontic Petri Nets that combine multiple modal logics and Petri nets for modeling deontic processes, a set of control principles that represent an initial formal theory on the relationships between deontic processes and documentary procedures, and a working prototype that uses model checking technique to identify fraud potentials in a deontic process and generate control requirements to limit them. Fourteen scenarios of two well-known international payment procedures—cash in advance and documentary credit—have been used to test the prototype. The results showed that all control requirements stipulated in these procedures could be derived automatically.^

Design and evaluation of a consulting system for database design

Database design is a difficult problem for non-expert designers. It is desirable to assist such designers during the problem solving process by means of a knowledge based (KB) system. Although a number of prototype KB systems have been proposed, there are many shortcomings. Firstly, few have incorporated sufficient expertise in modeling relationships, particularly higher order relationships. Secondly, there does not seem to be any published empirical study that experimentally tested the effectiveness of any of these KB tools. Thirdly, problem solving behavior of non-experts, whom the systems were intended to assist, has not been one of the bases for system design. In this project, a consulting system, called CODA, for conceptual database design that addresses the above short comings was developed and empirically validated. More specifically, the CODA system incorporates (a) findings on why non-experts commit errors and (b) heuristics for modeling relationships. Two approaches to knowledge base implementation were used and compared in this project, namely system restrictiveness and decisional guidance (Silver 1990). The Restrictive system uses a proscriptive approach and limits the designer's choices at various design phases by forcing him/her to follow a specific design path. The Guidance system approach, which is less restrictive, involves providing context specific, informative and suggestive guidance throughout the design process. Both the approaches would prevent erroneous design decisions. The main objectives of the study are to evaluate (1) whether the knowledge-based system is more effective than the system without a knowledge-base and (2) which approach to knowledge implementation - whether Restrictive or Guidance - is more effective. To evaluate the effectiveness of the knowledge base itself, the systems were compared with a system that does not incorporate the expertise (Control). An experimental procedure using student subjects was used to test the effectiveness of the systems. The subjects solved a task without using the system (pre-treatment task) and another task using one of the three systems, viz. Control, Guidance or Restrictive (experimental task). Analysis of experimental task scores of those subjects who performed satisfactorily in the pre-treatment task revealed that the knowledge based approach to database design support lead to more accurate solutions than the control system. Among the two KB approaches, Guidance approach was found to lead to better performance when compared to the Control system. It was found that the subjects perceived the Restrictive system easier to use than the Guidance system.

The acculturation of middle income Hispanic households

Research on the consumer behavior of the Hispanic population has recently attracted the attention of marketing practitioners as well as researchers. This study's purpose was to develop a model and scales to examine the acculturation process of Hispanic consumers with income levels of $35,000 and above, and its effects on their consumer behavior. The proposed model defined acculturation as a bilinear and multidimensional change process, measuring consumers' selective change process in four dimensions: language preference, Hispanic identification, American identification, and familism. A national sample of 653 consumers was analyzed. The scales developed for testing the model showed good to high internal consistency and adequate concurrent validity. According to the results, consumers' contact with Hispanic and Anglo acculturation agents generates change or reinforces consumers' language preferences. Language preference fully mediates the effects of the agents on consumers' American identification and familism; however, the effects of the acculturation agents on Hispanic identification are only partially mediated by individuals' language preference change. It was proposed that the acculturation process would have an effect on consumers' brand loyalty, attitudes towards high quality and prestigious brands, purchase frequency, and savings allocation for their children. Given the lack of significant differences between Hispanic and Anglo consumers and among Hispanic generations, only savings allocation for children's future was studied intensively. According to these results, Hispanic consumers' savings for their children is affected by consumers' language preference through their ethnic identification and familism. No moderating effects were found for consumers' gender, age, and country of origin, suggesting that individual differences do not affect consumers' acculturation process. Additionally, the effects of familism were tested among ethnic groups. The results suggest not only that familism discriminates among Hispanic and Anglo consumers, but also is a significant predictor of consumers' brand loyalty, brand quality attitudes, and savings allocation. Three acculturation segments were obtained through cluster analysis: bicultural, high acculturation, and low acculturation groups, supporting the biculturalism proposition.

Simulating Business Processes of Manufacturing SMEs on the Cloud

Simulating the efficiency of business processes could reveal crucial bottlenecks for manufacturing companies and could lead to significant optimizations resulting in decreased time to market, more efficient resource utilization, and larger profit. While such business optimization software is widely utilized by larger companies, SMEs typically do not have the required expertise and resources to efficiently exploit these advantages. The aim of this work is to explore how simulation software vendors and consultancies can extend their portfolio to SMEs by providing business process optimization based on a cloud computing platform. By executing simulation runs on the cloud, software vendors and associated business consultancies can get access to large computing power and data storage capacity on demand, run large simulation scenarios on behalf of their clients, analyze simulation results, and advise their clients regarding process optimization. The solution is mutually beneficial for both vendor/consultant and the end-user SME. End-user companies will only pay for the service without requiring large upfront costs for software licenses and expensive hardware. Software vendors can extend their business towards the SME market with potentially huge benefits.

Reputation performance: a portfolio selection approach

This paper introduces a normative view on corporate reputation strategic management. Reputation performance is conceptualised as the outcome of complex processes and social interactions and the lack of a holistic reputation performance management framework is identified. In an attempt to fill this gap, a portfolio-based approach is put forward. Drawing on the foundations of modern portfolio theory we create a portfolio-based reputation management algorithmic model where reputation components and priorities are weighted by decision makers and shape organisational change in an attempt to formulate a corporate reputation strategy. The rationale of this paper is based on the foundational consideration of organisations as choosing he optimal strategy by seeking to maximise their reputation performance while maintaining organisational stability and minimising organisational risk.

Reputation Performance: a portfolio selection approach

This paper introduces a normative view on corporate reputation management; an algorithmic model for reputation-driven strategic decision making is proposed and corporate reputation is conceptualized as influenced by a selection among organizational priorities. A portfolio-based approach is put forward; we draw on the foundations of portfolio theory and we create a portfolio-based reputation management model where reputation components and priorities are weighted by decision makers and shape organizational change in an attempt to formulate a corporate reputation strategy. The rationale of this paper is based on the foundational consideration of organizations as choosing the optimal strategy by seeking to maximize performance on corporate reputation capital while maintaining organizational stability and minimizing organizational risk.

Using Information on Unconstrained Student Demand to Improve University Course Schedules

We examine how using information on unconstrained demand can improve operational decisions. Specifically, we examine the widespread problem of developing course schedules in not-for-profit university settings. We investigate the potential benefit of incorporating, into the scheduling process, information on the unconstrained demand of students for courses. Prior to this study, the status quo in our college, like that in a large proportion of university settings, was building the course schedule to avoid time conflicts between required courses and to minimize time conflicts between designated groups of courses, such as electives in a particular area. Compared to the status quo approach, we find that, based on three semester's worth of actual data, an approach that explicitly considers students’ course preferences improves a student-based metric of schedule quality on the order of over 4% (which is the equivalent, in our setting, of improving service for over 20% of students).

Avaliação do Processo Sucessório em Empresas de Gestão Familiar

As mudanças e o aumento da concorrência em todos os segmentos econômicos têm exigido das empresas um grau de profissionalização cada vez maior. As empresas familiares, além desse desafio frente ao mercado, ainda se deparam com dificuldades intrínsecas às suas características, como a dificuldade em separar o que é família, empresa e patrimônio. Portanto, é necessário se preparar para continuar no mercado e desenvolver um plano de sucessão para as próximas gerações. O objetivo geral deste trabalho é propor um instrumento de avaliação do processo sucessório em empresas familiares. Dentre os objetivos específicos, encontram-se identificar itens de maturidade no processo sucessório, oferecer diretrizes estratégicas para promover a sucessão em empresas familiares e avaliar a aplicabilidade do instrumento de pesquisa. Para a empresa estar preparada para a sucessão, ela não pode tratar somente o assunto isoladamente. Portanto, os temas estratégia, planejamento estratégico, distinção entre família, propriedade e gestão, governança corporativa e maturidade, também são aprofundados ao longo da revisão de literatura. Por meio de um estudo de caso com abordagem exploratória, o trabalho foi desenvolvido tendo-se como base modelos disponíveis na literatura para avaliação de maturidade. Antes da aplicação, o instrumento foi submetido à avaliação por cinco especialistas em empresas familiares. Como resultado, foi possível propor uma avaliação para o processo sucessório, identificando itens de maturidade e oferecendo diretrizes estratégicas para promover a sucessão em empresas familiares. Conclui-se que a avaliação do processo sucessório pode contribuir para a empresa identificar seus pontos fortes, minimizando dificuldades e superando obstáculos para sua sobrevivência no mercado ao longo das gerações. / The advance of competition in all of the economy markets has being demanding companies to have professional businesses, in an increasing way. The family business, beyond this challenge, still faces particular difficulties, such as the difference among family, business and ownership. So, it is a necessity for them being ready for their continuity in the market and developing a succession plan for the next generations. The main objective of this work is to propose an evaluation instrument for succession process. Specific objectives are to identify maturity items in the succession process, offer strategic directions to promote succession in family businesses and evaluate the usage of the research instrument. To get ready for succession, the company can not work just this subject. Therefore, it includes topics like: strategy, strategic planning, difference among family, business and ownership, corporate governance, and maturity are reviewed along the literature. Using a case study research method with an exploratory approach, it was developed based on maturity models available in the literature for maturity evaluation. Prior to the application, the research instrument was applied to five specialists in family businesses. As a result, it was possible to propose an evaluation model for succession, identifying maturity items and offering strategic perspectives to promote the succession process in family businesses. As conclusion, the succession evaluation could contribute for the company identifies its strengths, minimizing difficulties and overcoming obstacles for survival throughout generations.

Analisi e ottimizzazione del flusso di approvvigionamento in una produzione su commessa: il caso CT Pack S.r.l.

La tesi ha l'obiettivo di analizzare e ottimizzare i flussi di approvvigionamento in un'azienda che produce su commessa: CT Pack S.r.L, specializzata nella realizzazione di macchine automatiche per il packaging di biscotti, gelato e cioccolato. Per raggiungere l'obiettivo si è preso come riferimento il modello proposto dal BPR (Business Process Reengineering): sono stati analizzati i principali attori coinvolti, in particolare fornitori e magazzino, mediante l'uso di KPI definiti ad hoc. Sulla base di questi sono stati individuati due processi critici: il primo riguarda la gestione del magazzino, che presenta un'elevata quantità di codici non movimentati anche a causa del processo di gestione del materiale avanzato al termine di ciascuna commessa; il secondo riguarda il materiale a consumo, che impiega i magazzinieri per un tempo eccessivo, è caratterizzato da giacenze per il 30% non movimentate e da supermarket collocati in officina ridondanti e caratterizzati da bassi tassi di utilizzo (anche sotto il 50%). Per risolvere questi problemi ed effettuare una riprogettazione si fa affidamento agli strumenti proposti dal project management: si imposta quindi un progetto che ha l'obiettivo di ridurre nel breve periodo il valore di magazzino mediante lo smaltimento attraverso diverse vie di codici non utilizzati e agisce nel lungo periodo per evitare che le criticità si ripropongano. Mediante la riprogettazione della gestione dei resi di produzione si prevede un maggior controllo, grazie al lavoro congiunto di ufficio tecnico e ufficio acquisti. La nuova gestione del materiale a consumo ha in se alcune delle tecniche proposte dalla lean production (il kanban, per esempio) e integra il fornitore nella catena di approvvigionamento, garantendo un maggior controllo sulle quantità, un risparmio di circa 7 h/mese di lavoro per i magazzinieri e una riduzione delle giacenze del 46%.