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This article examines how a profit-centered restructuring of labor relations in an academic medical center undermined team-based care practices in its intensive care unit. The Institute of Medicine has promoted team-based care to improve patient outcomes, and the staff in the intensive care unit researched for this paper had established a set of practices they defined as teamwork. After hospital executives rolled out a public relations campaign to promote its culture of teamwork, they restructured its workforce to enhance numerical and functional flexibility in three key ways: implementing a “service line” managerial structure; cutting a range of staff positions while combining others; and doubling the capacity of its profitable and highly regarded intensive care unit. Hospital executives said the restructuring was necessitated by changes to payment models brought forth by the Affordable Care Act. Based on 300 hours of participant-observation and 35 interviews with hospital staff, findings show that the restructuring lowered staff resources and intensified work, which limited their ability to practice care they defined as teamwork and undermined the unit’s collective identity as a team. Findings also show how staff members used teamwork as a sensitizing concept to make sense of what they did at work. The meanings attached to teamwork were anchored to positions in the hospitals’ organizational hierarchy. This paper advances our understanding of he flexible work arrangements in the health care industry and their effects on workers.

Research on employee ownership has focused on questions of productivity, profitability, and employee attitudes and behavior, while there has been little attention to the most basic measure of performance: survival of the company. This study uses data on all U.S. public companies as of 1988, following them through 2001 to examine how employee ownership is related to survival. Estimation using Weibull survival models shows that companies with employee ownership stakes of 5% or more were only 76% as likely as firms without employee ownership to disappear in this period, compared both to all other public companies and to a closely matched sample without employee ownership. While employee ownership is associated with higher productivity, the greater survival rate of these companies is not explained by higher productivity, financial strength, or compensation flexibility. Rather, the higher survival is linked to their greater employment stability, suggesting that employee ownership companies may provide greater employment security as part of an effort to build a more cooperative culture, which can increase employee commitment, training, and willingness to make adjustments when economic difficulties occur. These results indicate that employee ownership may have an important role to play in increasing job and income security, and decreasing levels of unemployment. Given the fundamental importance of these issues for economic well being, further research on the role of employee ownership would be especially valuable.

For over three decades, vector autoregressions have played a central role in empirical macroeconomics. These models are general, can capture sophisticated dynamic behavior, and can be extended to include features such as structural instability, time-varying parameters, dynamic factors, threshold-crossing behavior, and discrete outcomes. Building upon growing evidence that the assumption of linearity may be undesirable in modeling certain macroeconomic relationships, this article seeks to add to recent advances in VAR modeling by proposing a nonparametric dynamic model for multivariate time series. In this model, the problems of modeling and estimation are approached from a hierarchical Bayesian perspective. The article considers the issues of identification, estimation, and model comparison, enabling nonparametric VAR (or NPVAR) models to be fit efficiently by Markov chain Monte Carlo (MCMC) algorithms and compared to parametric and semiparametric alternatives by marginal likelihoods and Bayes factors. Among other benefits, the methodology allows for a more careful study of structural instability while guarding against the possibility of unaccounted nonlinearity in otherwise stable economic relationships. Extensions of the proposed nonparametric model to settings with heteroskedasticity and other important modeling features are also considered. The techniques are employed to study the postwar U.S. economy, confirming the presence of distinct volatility regimes and supporting the contention that certain nonlinear relationships in the data can remain undetected by standard models.

A concise introduction to the normalized quadratic expenditure or cost function is provided so that the interested reader will have the necessary information to understand and use this functional form. The normalized quadratic is an attractive functional form for use in empirical applications as correct curvature can be imposed in a parsimonious way without losing the desirable property of flexibility. We believe it is unique in this regard. Topics covered include the problem of cardinalizing utility, the modeling of nonhomothetic preferences, the use of spline functions to achieve greater flexibility, and the use of a “semiflexible” approach to make it feasible to estimate systems of equations with a large number of commodities.

Creativity and innovation have been buzzwords of managerial discourse over the last few decades as they contribute to the long-term survival and competitiveness of firms. Given the non-linear, causally ambiguous, and intangible nature of all innovation-related phenomena, management scholars have been trying to uncover factors that contribute to creativity and innovation from multiple lenses ranging from organizational behavior at the micro-level to strategic management at the macro-level. Along with important and insightful developments in these research streams that evolved independently from one another, human resource management (HRM) research – especially from a strategic perspective – has only recently started to contribute to a better understanding of both creativity and innovation. The goal of this chapter is to review the contributions of strategic HRM research to an improved understanding of creativity at the individual-level and innovation at the firm-level. In organizing this review, the authors rely on the open innovation funnel as a metaphor to review research on both HRM practices and HRM systems that contribute to creativity and innovation. In the last section, the authors focus on more recent developments in HRM research that focus on ambidexterity – as a way for HRM to simultaneously facilitate exploration and exploitation. This chapter concludes with a discussion of future research directions.

In this paper, we argue that work should be recognized as “commons.” We call for a new approach to how managers define their role and responsibility regarding the problem of work flexibility and of its societal implications. We argue that, in the global and digitized economy, it is in the best interest of all the company’s stakeholders that managers choose combinations of work arrangements and human resource policies considering the externalities of these decisions. Managers’ responsibility spans to the costs and risks that the broader social system of organizational stakeholders will bear because of their decisions. When labor market institutions are “thin,” it is management’s responsibility to contribute structuring and shaping them, so that the interests of workers, independent of the work arrangements, are considered.