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The general aim of this chapter is to scrutinize implicit assumptions regarding leadership in the public sector entailed in the normative concept of “good governance.” We draw on the concepts of leadership substitution (Kerr & Jermier, 1977), managerial leadership activities (e.g., Bass & Avolio, 1994), and demands for leadership (Blom & Alvesson, 2014). In our empirical study, we explore fine-grained processes of leadership in several local government organizations, including everyday decision-making and social interactions.

A qualitative study was conducted on the basis of 21 interviews with middle- and lower level managers and their subordinates in five municipal departments in Germany and three in Lithuania.

The results suggest that everyday leadership processes can be considered as the coexistence of leadership substitutes and leadership interventions, initiated by the leaders and their subordinates. Such leadership substitutes like routines, laws, and instructions turned out as particular important constituents of leadership processes.

Results of our study open several new avenues for further research on governance and leadership in local governance organizations. First, future research can proceed with a re-conceptualization of leadership in the context of local governance by drawing on the follower-oriented approaches of leadership and governance. Particular focus on tensions, conflicts, and struggles as well as on the interrelationships between different hierarchical levels of public administration could represent a fruitful extension of our study. Second, the institutional and country-based contexts of local government systems should be taken into account more explicitly while studying leadership practices.

In terms of implications for practice, the results of the study call for an explicit consideration of the everyday activities while implementing “good governance.” Considerations of leadership as process of daily interactions between leading persons, subordinates and codes, structures, process rules, and management instruments should become a necessary element of such concepts, otherwise, important aspects of a “good governance” would be ignored and couldn’t be realized.

Our study contributes to the behavioral perspective of governance structures in the public sector by providing empirical insights from local government contexts and by re-conceptualizing governance and leadership processes. Instead of a merely reductionist concentration on managerial positions and persons, we propose a social-constructionist view on governance that allows for a more fine-grained, context-sensible perspective on governance in the public sector. Concretely, we call for a conceptualization of micro-level governance structures and processes mainly as a result of ongoing order-maintaining and order-negotiating processes between supervisors and subordinates, accompanied by institutions of leadership substitution and interventions from leaders and subordinates.

Purpose – To examine the implications of arms export controls on the international spread of weapons production and innovation.

Methodology/approach – The chapter analyses predicted responses to arms export controls, drawing on existing literature. It considers incentives to potential buyer countries to develop their own substitutes and a case study of Australia's response to US denial of access to electronic warfare self-protection (EWSP) technology for fighter aircraft.

Findings – Spurred by the US denial of access to relevant EWSP, Australia devoted many years to developing a homegrown substitute. Although Australia achieved some success, the United States ultimately granted Australia access to the technology. Australia then abandoned research, design and development (RD&D) on EWSP for fast jets in 2009. Cause and effect remain a matter of debate.

Research limitations/implications – Insight into the real-world value of the theory is limited by the use of a single case study. Such cases supported by publicly available information are, however, scarce. Countries seeking to circumvent export controls must expect to incur high costs and uncertain outcomes.

Practical implications – Policy-makers should be wary about committing large budgets in developing substitutes for new technologies denied them through export controls. Such efforts may, however, offer the possibility of putting suppliers under pressure unavailable from other actions.

Social implications – Arms export controls designed to limit proliferation of weapons create incentives for states to develop their capabilities for new arms production and to develop new weapons-related knowledge.

Originality/value of the chapter – This chapter provides a new case study which illustrates an innovative approach to arms export control analysis.

Abuse and misuse of Substitute Decision-Making (SDMg) authority impacts the lives of children and adults with decision-making disabilities. The concerns raised in this paper amplify previous attention addressed by advocacy agencies and law reformists such as the Law Commission of Ontario. I analyse problems associated with Plenary Guardianship from both the lived experience of the non-guardian perspective and from the authority bestowed to the Guardian pursuant to the Guardianship and Administration Act 1990 of Western Australia legitimating the unintended capacity to abuse one’s substitute decision-making authority. Substitute decision-making arrangements enable decisions to be made on behalf of a person with a decision-making disability; usually made when such arrangements are necessary and subject to safeguards. Detrimentally, the substitute decision-maker (SDM) can assert broader powers beyond sensible measures that include thwarting investigations undertaken by family members; removing family members from the life of the person for whom an order is made; inappropriately applying a paternalistic or ‘best interest’ approach to decision-making where other approaches are required; failing to consider the individual’s wishes or making decisions contrary to those wishes; having insufficient contact with the individual; and, sharing insufficient or incorrect information. Moreover, they may subject the individual for whom an SDM order is made to experimental medical treatment in tandem with imposing or condoning severe and harmful restrictive-practices. Consequently, the second issue addressed in this paper concerns normalising both chemical and physical restrictive-practices that are both morally abhorrent and clinically highly questionable. Furthermore, often undertaken by service providers and their contracted psychiatrists and treating teams, endorsed under authority of a collaborating Guardian or SDM.

Transformational leadership has been found to positively influence employee attitudes and behaviors. However, research also has shown that a variety of task and motivational factors lead to similar outcomes. Yet, little research has explored the potential interaction of transformational leadership with these other factors. We utilize fuzzy-set/qualitative comparative analysis to explore the ways these factors may interact to produce positive employee outcomes. Specifically, we found that high levels of employee commitment and performance can be achieved in the absence of a transformational leader through various “bundles” of enriched jobs, challenging goals, and high quality leader–follower relationships.

The lens used by the courts and much of the antitrust literature on predatory selling and/or buying is based on partial equilibrium methodology. We demonstrate that such methodology is unreliable for assessments of predatory monopoly or monopsony conduct. In contrast to the typical two-stage dynamic analysis involving a predation period followed by a recoupment period, we advance a general equilibrium analysis that demonstrates the critical role of related industries and markets. Substitutability versus complementarity of both inputs and outputs is critical. With either monopolistic or monopsonistic market power (but not both), neither predatory overselling nor predatory overbuying is profitably sustainable. Two-stage predation/recoupment is profitable only with irreversibility in production and cost functions, unlike typical estimated forms from the production economic literature. However, when the market structure admits both monopolistic and monopsonistic behavior, predatory overbuying can be profitably sustainable while overselling cannot. Useful distinctions are drawn between contract versus non-contract markets for input markets.

The purpose of this investigation was to identify the association between Experience Use History (EUH) and types of substitution choices of hikers with the perspectives of activity involvement and place attachment. On-site surveys were distributed by systematic sampling technique to obtain a representative sample of hikers with 51% response rate. The theoretical expectation was confirmed by these data. Findings indicated that among four EUH classifications, Veterans and Visitors who perceived higher levels of activity involvement and relatively lower levels of place attachment tended to make resource substitutability, while Locals who scored highest on place attachment chose to make temporal substitutability and Beginners who scored lower on both activity involvement and place attachment were apt to make both resource and activity substitutability. Suggestions and managerial implication are further discussed.

This chapter develops a neoclassical growth model of illegal immigration with imperfect substitutability between native and immigrant workers in production. We investigate analytically and/or numerically the effects of illegal immigration on the average capital stock in the host economy as well as on the wage, income, and asset holdings of native workers. Our findings indicate that the effects of an increase in illegal immigration on the average levels of capital, consumption, and income are positive. Moreover, by employing the normalization technique (e.g., Klump & de La Grandville, 2000), we examine the effects of a change in the elasticity of substitution between immigrant workers and natives for any given immigration ratio. These effects are in general ambiguous, because of the presence of two opposing forces: the efficiency and the distribution effects. Finally, we extend the model by separating the domestic workers into skilled and unskilled and study the impact on distribution of income and wealth. We show that illegal immigration may not necessarily make the distribution of wealth more unequal and unskilled labor worse off. This is because the end results depend on the elasticities of substitution between different types of labor. Thus, assuming erroneously that immigrants and natives are perfect substitutes could lead to results that are not only overestimated but also of the wrong sign.

This study examines whether dividend payout, an internal corporate governance mechanism, is a substitute for or an outcome of product market competition, an external corporate governance mechanism. The sample includes firms in six of the world’s most prominent economies. We find that firms in more competitive industries pay less in the way of dividends to their shareholders, which is consistent with the notion that dividends and competition are substitutes. We also determine that the above negative relationship is weaker in countries with stronger regulation protecting minority shareholders against corporate self-dealing. Furthermore, the relationship has attenuated following the passage of the Sarbanes-Oxley Act that increased regulation and enhanced governance standards. Collectively, our findings provide consistent evidence across countries that the two corporate governance mechanisms examined in the study are substitutes, and greater regulation weakens the substitution effect. Our empirical findings are robust to alternative measures of dividend payout, industry definition, and shareholder protection.

How is migration related to informal activities? They may be complementary since new migrants may have difficulty finding employment in formal work, so many of them end up informally employed. Alternatively, migration and informality may be substitutes since migrants’ incomes in their new locations and income earned in the home informal economy (without migration) are an imperfect trade-off. Tajikistan possesses both a very large informal sector and extensive international emigration. Using the gap between household expenditure and income as an indicator of informal activity, we find negative significant correlations between informal activities and migration: the gap between expenditure and income falls in the presence of migration. Furthermore, Tajikistan's professional workers’ ability to engage in informal activities enables them to forgo migration, while low-skilled nonprofessionals without postsecondary education choose to migrate instead of working in the informal sector. Our empirical evidence suggests migration and informality substitute for one another.