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Discount retailing in the UK has taken on a higher profile over recent years owing to the effects of the recession. Interest has largely centred on the growth of discount grocery retailing and the potential emergence of US‐style warehouse clubs. Nine discount clothing retailers currently present in “conventional” retail environments were studied. Examines in particular the nature of discounting and the business practices employed by those discount retailers. Suggests that discount clothing retailing in the UK is characterized by: both core business discounters and clearance outlets; a high degree of planned purchasing as a result of own‐label activity, information technology and relationships with manufacturers; importance of image and service in attracting customers.

Examines the current state of retailing in two of the more remote regions of Russia ‐ Eastern Siberia and the Russian Far East. Examines categories of retail shop ‐ the department store, or more appropriately the “quasi department store”, the kiosk, food shops as well as markets and street traders. Suggests that there is little retailing in these regions that is in any way similar to that of the west. In an examination of ownership, the only evidence found of any multiple activity is the multiple ownership of kiosks and some multiple ownership through a trading company. Explores the ways in which retailing is likely to develop in the future in these regions.

Post-merger integration (PMI) success depends heavily on the social and cultural integration of the two legacy organizations. Given that organizational members work and exchange information through social relationships, social network analysis can serve as a useful tool to identify key actors, address areas of concern, and measure PMI success. However, few PMI studies have employed a social network perspective or social network analysis. In this chapter, the authors review the current literature on PMI and organizational change, including the few studies that use social networks approach. The authors also identify recent developments in social networks and organizational change research that can improve our understanding of PMI processes and propose promising avenues for future research. Further, the authors identify obstacles for social network research on PMI and provide practical advice for overcoming them.

The PMI Risk Framework (PRF) is introduced as a guide to classifying and identifying risks which can be the source of post-merger integration (PMI) failure — commonly referred to as “culture clash.” To provide managers with actionably insight, PRF dissects PMI risk into specific relationship-oriented phenomena, critical to outcomes and which should be addressed during PMI. This framework is a conceptual and theory-grounded integration of numerous perspectives, such as organizational psychology, group dynamics, social networks, transformational change, and nonlinear dynamics. These concepts are unified and can be acted upon by integration managers. Literary resources for further exploration into the underlying aspects of the framework are provided. The PRF places emphasis on critical facets of PMI, particularly those which are relational in nature, pose an exceptionally high degree of risk, and are recurrent sources of PMI failure. The chapter delves into relationship-oriented points of failure that managers face when overseeing PMI by introducing a relationship-based, PMI risk framework. Managers are often not fully cognizant of these risks, thus fail to manage them judiciously. These risks do not naturally abide by common scholarly classifications and cross disciplinary boundaries; they do not go unrecognized by scholars, but until the introduction of PRF the risks have not been assimilated into a unifying framework. This chapter presents a model of PMI risk by differentiating and specifying numerous types of underlying human-relationship-oriented risks, rather than considering PMI cultural conflict as a monolithic construct.

The purpose of this paper is to look into how universities identify themselves and the audiences they choose to serve, taking into account three specific universities in Atlanta, Georgia.

The paper gives brief overviews of the literature on differentiation and sustainability and the study, followed by descriptions of the three subject business schools and the geographic context, Atlanta, within which they operate.

Not every professional school will offer nationally ranked degree programs, but they all can aspire to establish unique, strong programs that are sustainable over time. Gaining a clear understanding of identity and purposefully targeting the audience to be served are important first steps in such an endeavor.

The article holds important lessons for professional schools and colleges that face increasing competition for students within their home arenas.

Purnima Bhaskar-Shrinivas is a doctoral student at the Department of Management and Organization, Pennsylvania State University. She received an MBA in Marketing from NMIMS, Bombay and a Masters in Management from the University of Bombay, India. Her research interests include cross-cultural work role adaptation, organizational change and artificial neural network modeling in organizational behavior. Her work has been presented at various conferences in management and psychology, including Academy of Management and SIOP. She also serves as a reviewer for the Organizational Development and Change (ODC) Division of the Academy of Management. Prior to her academic career, she worked as a management consultant at Accenture (erstwhile Andersen Consulting), India.Philip Bobko is Professor of Management and Psychology at Gettysburg College. His publications are in methodology, measurement, management, and industrial/organizational psychology. Content domains include test fairness, adverse impact, moderated regression analysis, validation methods, goal setting, decision making, utility analysis, and performance standard setting. He has also published a text on correlation and regression analysis (Sage), co-authored several handbook chapters in industrial/organizational psychology, and served as editor of Journal of Applied Psychology. His Ph.D. is from Cornell University and his B.S. is from MIT.Jacqueline A.-M. Coyle-Shapiro is a reader in Organizational Behavior in the Department of Industrial Relations at the London School of Economics where she received her Ph.D. Prior to this, she was a lecturer in Management Studies at the University of Oxford. She is a consulting editor for the Journal of Organizational Behavior and the Journal of Occupational and Organizational Psychology. She has served as guest editor for the Journal of Organizational Behavior with Lynn Shore on a special issue titled Employment Relationships: Exchanges between Employees and Employers. Her current research interests include the employment relationship, psychological contracts, organizational citizenship behavior, and organizational change. Her work has appeared in such journals as the Journal of Vocational Behavior, the Journal of Applied Behavioural Science and the Journal of Organizational Behavior. She has edited The Employment Relationship: Contextual and Psychological Perspectives published by Oxford University Press with Lynn Shore, Lois Tetrick and Susan Taylor.Jerald Greenberg is the Abramowitz Professor of Business Ethics and Professor of Organizational Behavior at the Ohio State University’s Fisher College of Business. Professor Greenberg is co-author of one of the best-selling college texts on organizational behavior, Behavior in Organizations, which is in its third decade of publication. As a researcher, Dr. Greenberg is best known for his pioneering work on organizational justice. He has published extensively on this topic, with over 140 professional journal articles and books to his credit. Acknowledging his research contributions, Professor Greenberg has received numerous professional honors, including: a Fulbright Senior Research Fellowship, and the William Owens Scholarly Contribution to Management Award. From the Organizational Behavior Division of the Academy of Management, Professor Greenberg has won the New Concept, and twice has won the Best Paper Award. Dr. Greenberg is co-author of the forthcoming volume, Organizational Justice: A Primer, and co-editor of Advances in Organizational Justice and the forthcoming Handbook of Organizational Justice. In recognition of his life-long scientific contributions, Dr. Greenberg has been inducted as a Fellow of the American Psychological Association, the American Psychological Society, and the Academy of Management. Professor Greenberg is also past-chair of the Organizational Behavior Division of the Academy of Management.David A. Harrison is a Professor of Management at the Department of Management and Organization, Pennsylvania State University. He received an M.S. in applied statistics and a Ph.D. in I-O psychology from the University of Illinois at Urbana-Champaign. His research on work role adjustment (especially absenteeism and turnover), time, executive decision making, and organizational measurement has appeared in Academy of Management Journal, Human Resource Management Review, Information Systems Research, Journal of Applied Psychology, Journal of Management, Personnel Psychology, Organizational Behavior and Human Decision Processes, Strategic Management Journal, and elsewhere. He has served on the editorial board of Journal of Management, and currently serves on boards of the Academy of Management Journal, Organizational Research Methods, and Personnel Psychology, and will be editor of Organizational Behavior and Human Decision Processes.Violet T. Ho is an assistant Professor in Nanyang Business School at Nanyang Technological University (Singapore). She earned her Ph.D. (2002) in organizational behavior and theory from Carnegie Mellon University. Her research interests include social networks, psychological contracts, and the impact of employees’ cognitive structures on work performance and other outcomes. She has published in the Academy of Management Review, Journal of Vocational Behavior, and Information Systems Research, and was awarded the Best Paper Based on a Dissertation (2003) from the Organizational Behavior Division of the Academy of Management.Robert C. Liden (Ph.D., University of Cincinnati) is Professor of Management at the University of Illinois at Chicago. His research focuses on interpersonal processes as they relate to such topics as leadership, groups, career progression and employment interviews. He has over 50 publications in journals such as the Academy of Management Journal, Academy of Management Review, Journal of Applied Psychology, Journal of Management, and Personnel Psychology. In 2000 he was inducted into the Academy of Management Journals’ Hall of Fame as a charter bronze member. He won awards (with co-authors) for the best article published in the Academy of Management Journal during 2001, as well as the best article published in Human Resource Management during 2001. He has served on the editorial boards of the Journal of Management since 1994 and the Academy of Management Journal from 1994 to 1999. He was the 1999 program chair for the Academy of Management’s Organizational Behavior Division, and was division chair in 2000–2001.Judi McLean Parks is the Reuben C. and Anne Carpenter Taylor Professor of Organizational Behavior at John M. Olin School of Business at Washington University in St. Louis. She received her Ph.D. in organizational behavior from the University of Iowa. Her research focuses on conflict and conflict resolution, the “psychological contract” between employers and employees, the impact of perceived injustice as well as the effect of gender and ethnicity on perceived justice. Recently, she has begun to explore organizational identity and its relationship to conflict in organizations. She is editor of the International Journal of Conflict Management, former executive director of the International Association for Conflict Management, and former chair of the Academy of Management’s Conflict Management Division. Author of numerous articles and chapters, her research has been published in a variety of journals, including Academy of Management Journal, Journal of Applied Psychology, and Organizational Behavior and Human Decision Processes.Robert E. Ployhart is an associate Professor at George Mason University. His primary program of research focuses on understanding staffing within the context of forces shaping contemporary Human Resources (e.g. developing multi-level staffing models, enhancing the effectiveness and acceptability of recruitment and staffing procedures, identifying cultural/subgroup influences on staffing processes). His second program of research focuses on applied statistical/measurement models and research methods, such as structural equation modeling, multilevel modeling, and longitudinal modeling. He is an active member of both the Society for Industrial and Organizational Psychology and the Academy of Management, and serves on several editorial boards.Lyman W. Porter is Professor of Management in the Graduate School of Management at the University of California, Irvine, and was formerly Dean of that School. Prior to joining UCI in 1967, he served on the faculty of the University of California, Berkeley, and, also, was a visiting professor at Yale University. Currently, he serves as a member of the Academic Advisory Board of the Czechoslovak Management Center, and a member of the Board of Trustees of the American University of Armenia, and was formerly an external examiner for the National University of Singapore. Professor Porter is a past president of The Academy of Management. In 1983 received that organization’s “Scholarly Contributions to Management” Award, and in 1994 its “Distinguished Management Educator” Award. He also served as President of the Society of Industrial-Organizational Psychology (SIOP), and in 1989 was the recipient of SIOP’s “Distinguished Scientific Contributions” Award. Professor Porter’s major fields of interest are organizational psychology, management, and management education. He is the author, or co-author, of 11 books and over 80 articles in these fields. His 1988 book (with Lawrence McKibbin), Management Education and Development (McGraw-Hill), reported the findings of a nation-wide study of business school education and post-degree management development.Belle Rose Ragins is a Professor of Management at the University of Wisconsin-Milwaukee and the Research Director of the UWM Institute for Diversity Education and Leadership. She studies diversity and mentoring in organizations, and her work has been published in Academy of Management Journal, Academy of Management Review, Academy of Management Executive, Journal of Applied Psychology and Psychological Bulletin. She is co-author of the book Mentoring and diversity: An international perspective. Dr. Ragins has received eight national research awards, including the Sage Award for Scholarly Contributions to Management, the ASTD Research Award, the APA Placek Award, and five Best Paper Awards from the National Academy of Management. She has or is currently serving on the boards of the Academy of Management Journal, Journal of Applied Psychology, Journal of Vocational Behavior, and Personnel Psychology. She is a Fellow of the Society for Industrial-Organizational Psychology, the American Psychological Society, and the American Psychological Association.Marie-Élène Roberge has a master’s degree in industrial/organizational psychology from Université du Québec à Montréal and is currently a doctoral student in organizational behavior at the Ohio State University’s Fisher College of Business. She has published several articles on various aspects of human resource management. Her research interests include organizational justice, deviant organizational behavior, and reactions to communication media in the workplace.Sandra L. Robinson (Ph.D., Northwestern University) is an Associate Professor of Organizational Behavior as well as an Associate Member of the Psychology Department at the University of British Columbia. Professor Robinson’s research focuses on trust, managing employment relationships, psychological contracts, workplace deviance. Her most research work focuses on territorial behavior in organizations. Her research has appeared in various journals, such as Administrative Science Quarterly, Academy of Management Journal, and Journal of Applied Psychology. Professor Robinson is an associate editor of the Journal of Management Inquiry and she also serves on the editorial boards of the Academy of Management Journal, Journal of Organizational Behavior, and the Journal of Engineering and Technology Management. She has received a number of awards, including the Ascendant Scholar Award from the Western Academy of Management, the Junior Research Excellence Award from the Faculty of Commerce at UBC, and the Cummings Scholar Award from the Academy of Management. Most recently, she was awarded a “Distinguished University Scholar” designation by the University of British Columbia.Mark V. Roehling is an Assistant Professor in the School of Labor and Industrial Relations, Michigan State University. He received his Ph.D. in Human Resource Management (HRM) from the Broad School of Management, Michigan State University, and his law degree from the University of Michigan. His primary research interests include interdisciplinary studies in HRM and the law, and responsibilities in the employment relationship (psychological, legal, and ethical perspectives). His work has appeared in academic journals (e.g. Personnel Psychology, Journal of Applied Psychology, Employee Responsibilities and Rights Journal, Human Resource Management, Journal of Business Ethics) and the popular press (e.g. The Wall Street Journal, New York Times). Dr. Roehling is currently serving on the editorial review boards for the Employee Rights and Responsibilities Journal and Human Resource Planning. He is a member of the Academy of Management, the Society for Industrial and Organizational Psychology, and the Academy of Legal Studies in Business.Patrick J. Rosopa is a doctoral student in Industrial and Organizational Psychology at the University of Central Florida (UCF). He earned a B.S. in Psychology from Tulane University and an M.S. in Industrial and Organizational Psychology from UCF. He has conducted research on teamwork mental models, the results of which have been presented at the meeting of the Society for Industrial and Organizational Psychology. His current research interests include: (a) decision-making in personnel selection; and (b) the use of simulation methods to evaluate the utility of statistical techniques.Philip L. Roth is Professor of Management at Clemson University. Phil’s research interests are employment interviews, grade point average, and utility analysis. He is also interested in missing data, outliers/influential cases, and meta-analysis. He is a fellow of the Society for Industrial and Organizational Psychology and the American Psychological Society. His Ph.D. is from the University of Houston.Denise M. Rousseau is the H. J. Heinz II Professor of organizational behavior at Carnegie Mellon University’s Heinz School of Business. Professor Rousseau is President of the Academy of Management (2004–2005), and Editor of the Journal of Organizational Behavior. Dr. Rousseau is best known for her work on the changing psychological contract in employment, human resource strategies, and the effects of organizational culture on performance. She has published extensively on these topics and has over 100 professional journal articles to her credit. Her books include: Psychological Contracts in Employment (Sage, with Rene Schalk); Relational Wealth: The Advantage of Stability in a Changing Economy (Oxford, with Carrie Leana); and Psychological Contracts in Organizations (Sage). In 1996, her book, Boundaryless Careers: Work, Mobility, and Learning in the New Organizational Era (Oxford, with M. Arthur) won the Academy of Management’s George Terry Award for the best management book. Professor Rousseau’s additional professional honors, include the William A. Davis Award for scholarly research in educational administration and the National Institute for Health Care Management research award. In recognition of her life-long scientific contributions, Dr. Rousseau has been inducted as a Fellow of the American Psychological Association, the American Psychological Society, and the Academy of Management.Professor René Schalk holds a special chair in Policy and Aging at Tilburg University in the Netherlands and is a faculty member of the department of Organization Studies at Tilburg University. He earned his Ph.D. in Social and Organizational Psychology from Nijmegen University. His research focuses on complexity and dynamics in organizations, with a special focus on the psychological contract, international differences, and policy and aging. He is editor-in-chief of Gedrag en Organisatie, consulting editor for the Journal of Organizational Behavior, editorial board member of the Journal of Managerial Psychology, and reviewer for fourteen international journals. He is co-editor of the book Psychological Contracts in Employment: Cross-national Perspectives, and wrote books on absenteeism and older employees. His publications appear in journals such as Journal of Organizational Behavior, Leadership and Organization Development Journal, International Journal of Selection and Assessment, European Journal of Work and Organizational Psychology, Journal of Social Behavior and Personality, and International Small Business Journal.Margaret A. Shaffer is an associate Professor with the Department of Management, Hong Kong Baptist University. She received a Ph.D. in organizational behavior and human resource management from the University of Texas-Arlington. Prior to joining HKBU, she taught at the Hong Kong Polytechnic University. Her research interests are in the areas of expatriate adjustment and performance and life balance. Her work has appeared in various management journals, including Journal of Applied Psychology, Personnel Psychology, Journal of Management, Journal of International Business Studies, and Journal of Vocational Behavior. One of her papers on expatriate adjustment (co-authored with David Harrison) received the first “Best International Paper” award from the Academy of Management.Lynn Shore is Visiting Professor at University of California, Irvine, and is joining the faculty at San Diego State University in fall of 2004. Her research on the employee-organization relationship focuses on the influence of social and organizational processes, and her work on diversity has examined the impact that composition of the work group and employee/supervisor dyads has on the attitudes and performance of work groups and individual employees. She has published numerous articles in such journals as Academy of Management Journal, Academy of Management Review, Journal of Applied Psychology, Personnel Psychology, Journal of Organizational Behavior, Human Relations, and Journal of Management. Dr. Shore is a Fellow of the American Psychological Association and the Society for Industrial and Organizational Psychology. She served as the Chair of the Human Resources Division of the Academy of Management. Dr. Shore is the associate editor for the Journal of Applied Psychology.Eugene F. Stone-Romero received his Ph.D. from the University of California-Irvine, and is now Professor of Psychology and Management at the University of Central Florida. He is a Fellow of the Society for Industrial and Organizational Psychology, the American Psychological Society, and the American Psychological Association. His research interests include moderator variable detection strategies, ethnic bias in personality measures, cross-cultural influences on organizational behavior, reactions to feedback, work-related values, job satisfaction, biases in performance ratings, and privacy in organizations. Professor Stone-Romero’s work has appeared in such outlets as the Journal of Applied Psychology, Organizational Behavior and Human Performance, Personnel Psychology, Organizational Research Methods, Journal of Vocational Behavior, Academy of Management Journal, Journal of Management, Educational and Psychological Measurement, Journal of Educational Psychology, International Review of Industrial and Organizational Psychology, Research in Personnel and Human Resources Management, Applied Psychology: An International Review, Multivariate Behavioral Research, and the Journal of Applied Social Psychology. He is also the author of numerous chapters in books dealing with issues germane to the related fields of industrial and organizational psychology, human resources management, and organizational behavior. Finally, he is the author of a book titled Research Methods in Organizational Behavior, and the co-author of a book titled Job Satisfaction: How People Feel About Their Jobs and How It Affects Their Performance.M. Susan Taylor is Dean’s Professor of Human Resources, 2003 University Distinguished Scholar Teacher and Director, of the Center For Human Capital, Innovation and Technology (HCIT) at the Robert H. Smith School of Business, University of Maryland College Park. She received her Ph.D. in Industrial/Organizational psychology from Purdue University and has been a visiting faculty member at the Amos Tuck School, Dartmouth College, Bocconi University in Milan Italy, the University of Washington, Seattle, London Business School and Wuhan University, in China. Taylor is currently a member of the Academy of Management Board of Governors, incoming senior editor for Organization Science, and Human Resource editor for Sage Publications Foundations of Organizational Science Series, and serves on the editorial boards of the Journals of Applied Psychology and Organizational Behavior. She is also a SIOP Fellow. Taylor’s research interests include the employment relationship, organizational justice, executive career mobility, and organizational innovation and dynamic capabilities.Lois Tetrick is the Director of the Industrial and Organizational Psychology Program at George Mason. Professor Tetrick has served as associate editor of the Journal of Applied Psychology and is currently an associate editor of Journal of Occupational Health Psychology. She also serves on the editorial board of Journal of Organizational Behavior. Dr. Tetrick’s research has focused primarily on individuals’ perceptions of the employment relationship and their reactions to these perceptions including issues of occupational health and safety, occupational stress, and organizational/union commitment. She is active in the Society for Industrial and Organizational Psychology (SIOP) and was recently elected to represent SIOP on the American Psychological Association Council of Representatives. She also is active in the Academy of Management and has served as Chair of the Human Resources Division. Dr. Tetrick is a fellow of the Society for Industrial and Organizational Psychology, the American Psychological Association, and the American Psychological Society.Anne S. Tsui is Motorola Professor of International Management at Arizona State University, Professor of the Hong Kong University of Science and Technology and Distinguished Visiting Professor at Peking University. She was the 14th editor of the Academy of Management Journal, a Fellow of the Academy, and Founding President of the International Association for Chinese Management Research (www.iacmr.org). Her recent research interests include guanxi relationship of managers, employment relationships, executive leadership and organizational culture, especially in the Chinese context. She has received the Outstanding Publication in Organizational Behavior Award (1993), the Administrative Science Quarterly Scholarly Contribution Award (1998), the Best Paper in the Academy of Management Journal Award (1998), and the Scholarly Achievement Award in Human Resource Management (1998). She has held faculty appointments previously at Duke University and the University of California, Irvine. She received her Ph.D. from the University of California, Los Angeles.Linn Van Dyne is Associate Professor, Department of Management at the Broad Graduate School of Business, Michigan State University, USA. She received her Ph.D. from the University of Minnesota in Strategic Management and Organizations. Her research focuses on proactive employee behaviors (such as helping, voice, and minority influence), international organizational behavior, and the effects of work context, roles, and groups on employee attitudes and behaviors. Her work has been published in Academy of Management Journal, Academy of Management Review, Journal of Applied Psychology, Journal of Organizational Behavior, Organizational Behavior and Human Decision Processes, Research in Organizational Behavior, and other outlets.Elizabeth Wolfe Morrison (Ph.D. Northwestern University) is a Professor of Management at the Stern School of Business, New York University, and Chair of the Management and Organizations Department. She has won several research awards, including the Cummings Scholar Award from the OB Division of the Academy of Management. Professor Morrison’s research focuses on proactive behaviors by employees (information seeking, networking), how employees adjust to new jobs, the experience of psychological contract violation, and determinants and effects of employee voice and silence. She is interested with how people make sense of, cope with, and impact their work environments. Professor Morrison has published articles in a range of journals, including Academy of Management Journal, Academy of Management Review, Journal of Applied Psychology, Journal of Organizational Behavior, and Organizational Behavior and Human Decision Processes. She is on the editorial board of the Journal of Organizational Behavior and the Journal of Management.

Researchers recommend a reorganization of the medical profession into larger groups with a multispecialty mix. We analyze whether there is evidence for the superiority of these models and if this organizational transformation is underway.

We summarize the evidence on scale and scope economies in physician group practice, and then review the trends in physician group size and specialty mix to conduct survivorship tests of the most efficient models.

The distribution of physician groups exhibits two interesting tails. In the lower tail, a large percentage of physicians continue to practice in small, physician-owned practices. In the upper tail, there is a small but rapidly growing percentage of large groups that have been organized primarily by non-physician owners.

While our analysis includes no original data, it does collate all known surveys of physician practice characteristics and group practice formation to provide a consistent picture of physician organization.

Our review suggests that scale and scope economies in physician practice are limited. This may explain why most physicians have retained their small practices.

Larger, multispecialty groups have been primarily organized by non-physician owners in vertically integrated arrangements. There is little evidence supporting the efficiencies of such models and some concern they may pose anticompetitive threats.

This is the first comprehensive review of the scale and scope economies of physician practice in nearly two decades. The research results do not appear to have changed much; nor has much changed in physician practice organization.

We explore the antecedents of workplace ostracism and delineate possible organizational interventions to deter ostracism. Under the lens of evolutionary psychology we argue that individuals deemed capable of contributing to social and organizational goals become valued group members while those who threaten group stability and viability risk being shunned or ostracized. Specifically, we review empirical evidence and present the results of a pilot study suggesting that those who are perceived to violate injunctive and descriptive norms, as well as threaten one’s self-concept are at increased risk for ostracism. In terms of intervention, we propose mindfulness techniques and organizational support as a route to deter employees’ inclinations to ostracize coworkers. Thus, a primary goal of this chapter is to explicate a framework for identifying the predictors and deterrents of workplace ostracism in order to generate additional research on this important topic.

The management of children′s literature is a search for value and suitability. Effective policies in library and educational work are based firmly on knowledge of materials, and on the bibliographical and critical frame within which the materials appear and might best be selected. Boundaries, like those between quality and popular books, and between children′s and adult materials, present important challenges for selection, and implicit in this process are professional acumen and judgement. Yet also there are attitudes and systems of values, which can powerfully influence selection on grounds of morality and good taste. To guard against undue subjectivity, the knowledge frame should acknowledge the relevance of social and experiential context for all reading materials, how readers think as well as how they read, and what explicit and implicit agendas the authors have. The good professional takes all these factors on board.

The purpose of this paper is to demonstrate the importance of institutional innovation in managing the future. Peter Drucker has encouraged managers to develop institutional innovations in order to reach organizational objectives. These institutional innovations revolve round the value created by the organization for its customers over time. Considering Drucker's insight from the perspective of institutional theory, this paper aims to describe how innovations in transaction institutions may lead to strategic transactions and provide a fundamental transformation in the way transactions are conducted in the market.

Using a case study of the development of the American clock industry, it is shown that institutional innovations may provide a leadership position for an organization. By trading direct exchange for an innovative transaction model, management innovation occurred within and well beyond the confines of the American clock market.

The historical case empirically illustrates and extends Drucker's notion of customer‐centric management and the advantage of innovation. Strategically, management must understand how institutional innovations can be used to create a leadership position in the future. This occurs when management uses innovations in transaction rules, termed transaction “institutions”, to create a contrast between the values exchanged between the customer and the organization and the values exchanged between the customer and competing organizations.

Peter Drucker's work is quite broad and, perhaps to his credit, he was never a traditional academic. As a result, evaluating his work is more difficult than evaluating research in one specific theoretical domain. However, it is clear that institutional thinking influenced Drucker. Analytically, this places him at odds with traditional economic and strategic analysis. Accordingly, this research is also somewhat at odds with traditional economic and strategic analysis.

The implications for management are clear. The entrepreneurial role of each type of organisation in solving problems is critical. Only through entrepreneurship can long‐term solutions to problems be developed. This requires a deep understanding of the costs involved, even on a small scale. When the details of costs are understood, entrepreneurial innovations can be developed in response.

This is the first paper that utilizes an institutional framework for strategy analysis based on Peter Drucker's work. This helps managers manage the future by understanding how to systematically take and share risk.