Assessing the efficacy of structural merger remedies:choosing between theories of harm?

Previous empirical assessments of the effectiveness of structural merger remedies have focused mainly on the subsequent viability of the divested assets. Here, we take a different approach by examining how competitive are the market structures which result from the divestments. We employ a tightly specified sample of markets in which the European Commission (EC) has imposed structural merger remedies. It has two key features: (i) it includes all mergers in which the EC appears to have seriously considered, simultaneously, the possibility of collective dominance, as well as single dominance; (ii) in a previous paper, for the same sample, we estimated a model which proved very successful in predicting the Commission’s merger decisions, in terms of the market shares of the leading firms. The former allows us to explore the choices between alternative theories of harm, and the latter provides a yardstick for evaluating whether markets are competitive or not – at least in the eyes of the Commission. Running the hypothetical post-remedy market shares through the model, we can predict whether the EC would have judged the markets concerned to be competitive, had they been the result of a merger rather than a remedy. We find that a significant proportion were not competitive in this sense. One explanation is that the EC has simply been inconsistent – using different criteria for assessing remedies from those for assessing the mergers in the first place. However, a more sympathetic – and in our opinion, more likely – explanation is that the Commission is severely constrained by the pre-merger market structures in many markets. We show that, typically, divestment remedies return the market to the same structure as existed before the proposed merger. Indeed, one can argue that any competition authority should never do more than this. Crucially, however, we find that this pre-merger structure is often itself not competitive. We also observe an analogous picture in a number of markets where the Commission chose not to intervene: while the post-merger structure was not competitive, nor was the pre-merger structure. In those cases, however, the Commission preferred the former to the latter. In effect, in both scenarios, the EC was faced with a no-win decision. This immediately raises a follow-up question: why did the EC intervene for some, but not for others – given that in all these cases, some sort of anticompetitive structure would prevail? We show that, in this sample at least, the answer is often tied to the prospective rank of the merged firm post-merger. In particular, in those markets where the merged firm would not be the largest post-merger, we find a reluctance to intervene even where the resulting market structure is likely to be conducive to collective dominance. We explain this by a willingness to tolerate an outcome which may be conducive to tacit collusion if the alternative is the possibility of an enhanced position of single dominance by the market leader. Finally, because the sample is confined to cases brought under the ‘old’ EC Merger Regulation, we go on to consider how, if at all, these conclusions require qualification following the 2004 revisions, which, amongst other things, made interventions for non-coordinated behaviour possible without requiring that the merged firm be a dominant market leader. Our main conclusions here are that the Commission appears to have been less inclined to intervene in general, but particularly for Collective Dominance (or ‘coordinated effects’ as it is now known in Europe as well as the US.) Moreover, perhaps contrary to expectation, where the merged firm is #2, the Commission has to date rarely made a unilateral effects decision and never made a coordinated effects decision.

Opinion leaders' role in innovation diffusion:a simulation study

This study investigates the critical role that opinion leaders (or influentials) play in the adoption process of new products. Recent existing reseach evidence indicates a limited effect of opinion leaders on diffusion processes, yet these studies take into account merely the network position of opinion leaders without addressing their influential power. Empirical findings of our study show that opinion leaders, in addition to having a more central network position, possess more accurate knowledge about a product and tend to be less susceptible to norms and more innovative. Experiments that address these attributes, using an agent-based model, demonstrate that opinion leaders increase the speed of the information stream and the adoption process itself. Furthermore, they increase the maximum adoption percentage. These results indicate that targeting opinion leaders remains a valuable marketing strategy.

The impact of relational demography on the quality of leader-member exchanges and employees' work attitudes and well-being

This study investigated the role of differences in age, organizational tenure and gender between manager and employee as potential moderators between employees' leader-member exchanges (LMX) and related work outcomes. The results support the interaction effect of manager-employee organizational tenure difference with LMX and outcome variables. Employees with a high organizational tenure difference from the manager reported the worst work outcomes when they perceived LMX was of low quality, whereas when the quality of LMX was high, they reported the highest work attitudes and well-being.

Leader-member exchange and contextual performance:the mediating influence of organization-based self-esteem

This study examined the mediating influence of organization-based self-esteem (OBSE) on the relationship between leader-member exchange (LMX) and contextual performance. Respondents were Indian employees and their immediate supervisors. Results of structural equation modeling (SEM) that compared the fit of a fully mediated model to a partially mediated model revealed support for the hypothesized fully mediated model. Specifically, the SEM results showed the relationship between LMX and the contextual performance facets of interpersonal facilitation and job dedication to be indirect, through OBSE. Support for the hypothesized mediating influence of OBSE highlights the multiple motivational underpinnings of contextual performance

Marine Le Pen and the 'New' FN:a change of style or of substance?

The electoral challenge of the far right is an enduringly problematic feature of contemporary French politics. In the first rounds of the 2012 presidential and parliamentary elections, the Front National (FN) under new leader Marine Le Pen attracted a combined total of ten million votes, bringing its ultra-nationalist policies to the centre of national political debate. This article examines the FN's impact on these elections and its implications for French politics. Drawing on official FN programmes, detailed election results and a range of opinion polling data, it assesses the strength of support for Le Pen and her party and seeks to explain their electoral appeal. In particular, it subjects to analysis the claim that the new leader has ‘de-demonised’ the FN, transforming it from perennial outsider to normal participant in mainstream French politics; and it reflects on the strategic dilemma posed for the centre-right by this newly invigorated far-right challenge.

Embodying who we are:leader group prototypicality and leadership effectiveness

Leadership is a process enacted in the context of a shared group membership, and leadership effectiveness is contingent on followers' perceptions of the leader as a group member. Addressing this role of group membership, the social identity theory of leadership puts leader group prototypicality, the extent to which the leader is perceived to embody group identity, center-stage in leadership effectiveness. I review empirical research in leader group prototypicality, concluding there is a robust empirical basis for the key propositions of the social identity theory of leadership. I also identify newer developments that extend and enrich the social identity analysis of leadership, including attention to the roles of uncertainty, leader fairness, leader–follower relationship, leader self-perceived prototypicality, and leadership of creativity and innovation.

Trust in leader-follower relationships:how and when trust building enhances dyadic and organisational outcomes

Guided by theory in both the trust and leadership domains, the overarching aim of this thesis was to answer a fundamental question. Namely, how and when does trust-building between leaders and followers enhance leader-member exchange (LMX) development and organisational trust? Although trust is considered to be at the crux of the leader-follower relationship, surprisingly little theoretical or empirical attention has been devoted to understanding the precise nature of this relationship. By integrating both a typology of trustworthy behaviour and a process model of trust development with LMX theory, study one developed and tested a new model of LMX development with leader-follower trust-building as the primary mechanism. In a three wave cross-lagged design, 294 student dyads in a business simulation completed measures of trust perceptions and LMX across the first 6 months of the LMX relationship. Trust-building was found to account for unexplained variance in the LMX construct over time, while controlling for initial relationship quality, thus confirming the critical role of the trust-building process in LMX development. The strongest evidence was found for the role of integrity-based trust-building behaviour, albeit only when such behaviour was not attributed to insincere motives. The results for ability and benevolence-based trustworthy behaviour revealed valued insights into the developmental nature of trustworthiness perceptions within LMX relationships. Thus, the pattern of results in study one provided a more comprehensive and nuanced understanding of the dynamic interplay between trust and LMX. In study two, leader trust-building was investigated cross-sectionally within an organisational sample of 201 employees. The central aim of this study was to investigate whether leader trust-building within leader-follower relationships could be leveraged for organisational trust. As expected, the trust-building process instigated by members in study one was replicated for leaders in study two. In addition, the results were most consistent for benevolence-based trust building, whereas both integrity- and ability-based trust-building were moderated by the position of the leader within the organisation’s hierarchy. Overall, the findings of this thesis shed considerable light on the richness of trusting perceptions in organisations, and the critical role of trust-building in LMX development and organisational trust.

Who wants to be the leader? The discursive construction of emerging leadership in differently gendered teams

Increasingly, scholars are contesting the value of grand theories of leadership in favour of a social constructionist approach that posits the centrality of language for ‘doing’ leadership. This article investigates the extent to which the linguistic enactment of leadership is often gendered, which may have consequences for the career progression of women business leaders. Drawing on a UK-based study of three teams with different gender compositions (men-only; women-only and mixed gender), I use an Interactional Sociolinguistic framework to compare what leadership ‘looks and sounds like’ during the course of a competitive, leadership task. My findings show that the linguistic construction of leadership varies considerably within each team although not always in conventionally gendered ways. The study potentially provides linguistic insights on the business issue of why so few women progress from middle management to senior leadership roles.

Leader‐Member Exchange (LMX) and performance:a meta‐analytic review

This paper reports a meta-analysis that examines the relationship between leader-member exchange (LMX) relationship quality and a multidimensional model of work performance (task, citizenship, and counterproductive performance). The results show a positive relationship between LMX and task performance (146 samples, ρ = .30) as well as citizenship performance (97 samples, ρ = .34), and negatively with counterproductive performance (19 samples, ρ = -.24). Of note, there was a positive relationship between LMX and objective task performance (20 samples, ρ = .24). Trust, motivation, empowerment, and job satisfaction mediated the relationship between LMX and task and citizenship performance with trust in the leader having the largest effect. There was no difference due to LMX measurement instrument (e.g., LMX7, LMX-MDM). Overall, the relationship between LMX and performance was weaker when (a) measures were obtained from a different source or method and (b) LMX was measured by the follower than the leader (with common source- and method-biased effects stronger for leader-rated LMX quality). Finally, there was evidence for LMX leading to task performance but not for reverse or reciprocal directions of effects.

How good are citizen weather stations? Addressing a biased opinion

The UK is home to a dense network of Citizen Weather Stations (CWS) primarily set up by members of the public. The majority of these stations record air temperature, relative humidity and precipitation, amongst other variables, at sub-hourly intervals. This high resolution network could have benefits in many applications, but only if the data quality is well characterised. Here we present results from an intercomparison field study, in which popular CWS models were tested against Met Office standard equipment. The study identifies some common instrumental biases and their dependencies, which will help us to quantify and correct such biases from the CWS network.

An examination of the relationship between work value similarity, work value fulfilment, leader-member exchange quality and work outcomes

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