Search results

1 – 10 of over 8000
Article
Publication date: 15 June 2010

Robert Schwartz, Avner Wolf and Jacob Paroush

Empirical researchers should recognize that opening and closing prices are not simple reflections of underlying fundamental values, as studies of stock price behavior have…

1011

Abstract

Purpose

Empirical researchers should recognize that opening and closing prices are not simple reflections of underlying fundamental values, as studies of stock price behavior have documented a U‐shaped intra‐day volatility pattern that is a manifestation of noise. While implicit transaction costs and the tactical trading of informed participants are contributing factors, they do not provide a sufficient explanation. The purpose of this paper is to focus on an additional factor – price discovery and present a formulation which allows investors with divergent expectations to respond rationally to each other's valuations, and which implies elevated volatility even when information is common knowledge.

Design/methodology/approach

This is a conceptual paper with empirical implications for the dynamic process of price formation in an equity market. The work is motivated by the well‐documented finding that intra‐day stock prices are excessively volatile, especially at market openings and closings. The paper's theoretical construct shows that the volality accentuation can be attributed to the dynamic process of price discovery.

Findings

The paper's chief finding is that price discovery is a protracted, path‐dependent process in an environment characterized by divergent expectations and adaptive valuations. The protracted, path‐dependent process of price discovery can account for the observed elevation of intra‐day price volatility.

Originality/value

This is an original research paper. The formulation is a novel and innovative treatement of a divergent expectations, adaptive valuations paradigm.

Details

Managerial Finance, vol. 36 no. 7
Type: Research Article
ISSN: 0307-4358

Keywords

Book part
Publication date: 19 August 2019

Christopher Torr

The Austrian economist Ludwig Lachmann claimed that Keynes was a lifelong subjectivist. To evaluate this, we start by distinguishing Keynes’ writings on probability theory from…

Abstract

The Austrian economist Ludwig Lachmann claimed that Keynes was a lifelong subjectivist. To evaluate this, we start by distinguishing Keynes’ writings on probability theory from his writings on economics. In the General Theory (1936), Keynes’ treatment of expectations provides the basis for Lachmann’s view that Keynes was a subjectivist at heart. In his Treatise on Probability (1921), Keynes refers explicitly to the subjectivism–objectivism divide in probability theory and pins his colors to the objectivist mast. In this essay, we present the objectivist slant in Keynes’ earlier writings on probability theory. Thereafter, we evaluate the criteria Lachmann employed to cast Keynes as a subjectivist.

Details

Including a Symposium on Ludwig Lachmann
Type: Book
ISBN: 978-1-78769-862-8

Keywords

Open Access
Article
Publication date: 5 August 2021

Axel Georg Zehendner, Philipp C. Sauer, Patrick Schöpflin, Anni-Kaisa Kähkönen and Stefan Seuring

Managing supply chains (SCs) for sustainability often results in conflicting demands, which can be conceptualized as sustainability tensions. This paper studies sustainability…

3609

Abstract

Purpose

Managing supply chains (SCs) for sustainability often results in conflicting demands, which can be conceptualized as sustainability tensions. This paper studies sustainability tensions in electronics SC contexts and the related management responses by applying a paradox perspective.

Design/methodology/approach

A single case study on the electronics SC is conducted with companies and third-party organizations as embedded units of analysis, using semi-structured interviews that are triangulated with publicly available data.

Findings

The study identifies tension elements (learning, belonging, organizing and economic performing) conflicting with general social–ecological objectives in the electronics SC. The results indicate a hierarchal structure among the sustainability tensions in SC contexts. The management responses of contextualization and resolution are assigned to the identified tensions.

Practical implications

Framing social–ecological objectives with their conflicting elements as paradoxical tensions enables organizations and SCs to develop better strategies for responding to complex sustainability issues in SC contexts.

Originality/value

The study contributes toward filling the gap on paradoxical sustainability tensions in SCs. Empirical insights are gained from different actors in the electronics SC. The level of emergence and interconnectedness of sustainability tensions in a larger SC context is explored through an outside-in perspective.

Article
Publication date: 21 March 2016

Robin Pesch, Ricarda B. Bouncken and Sascha Kraus

Firms build new product development alliances to cope with the demands of continuous and rapid new product development. Such alliances allow surplus access to complementary…

Abstract

Purpose

Firms build new product development alliances to cope with the demands of continuous and rapid new product development. Such alliances allow surplus access to complementary capabilities and knowledge. However, the successful use of specialization advantages requires coordination and effective communication between alliance partners. Communication is vital to alliance success, as it allows a timely flow of information and resources across partners and supports the coordination within the alliance. The aim of this study is to research how divergent communication schemes influence firms’ new product development performance in alliances.

Design/methodology/approach

A paper-and-pencil survey about firms’ collaborative new product development performance in the German medical device industry was conducted. Results are derived from a survey of n = 184 new product development alliances in the medical device industry. To test the hypotheses, structural equation modeling (SEM) using the Mplus 7.0 software was applied.

Findings

The empirical results indicate that divergent communication schemes enhance product innovativeness and speed to market in new product development alliances. The development of new insights and solutions through joint sensemaking builds the theoretical fundament for the supportive effects of divergent communication schemes. Divergent communication schemes go hand in hand with ambiguity, that is, the source of joint dialogues and discussion through which alliance partners refine and adapt their different perspectives and interpretations. However, the supportive effect of divergent communication schemes on speed to market declines with increasing collaboration intensity.

Research limitations/implications

The assessment of divergent communication schemes and new product development performance of the dyadic relationships in this survey is only based on one respondent. Furthermore, the study’s focus on a specific industry sector, albeit one fitting particularly well to the research question, may further limit the generalizability of the empirical findings. Future research should thus strive to take both firms of the dyadic relationship into account and moreover attempt to investigate mediating effects such as joint sensemaking or creativity.

Practical implications

The results indicate that alliance managers should become aware that different ways of communication are not per se dysfunctional. To achieve beneficial effects, they should enhance dialogues and constructive discussions through which the alliance partners develop novel insights and solutions on the fundament of occurring misunderstandings that root in divergent communication schemes. Regular meetings and conferences as well as inter-organizational teams should be applied because they stimulate joint dialogues and discussions in alliances. These instruments also enable learning processes and the development of trust that are both crucial for sensemaking processes in alliances.

Originality/value

Prior research has stressed the importance of interorganizational communication for the success of alliances. However, little is known about the effect of divergent communication schemes in alliances. This study shows theoretically and empirically that divergent communication schemes can improve new product development performance in alliances. The supportive effect of divergent communication schemes is contrary to the argumentation that communication problems and misinterpretations hamper alliance success.

Details

Management Research Review, vol. 39 no. 3
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 4 May 2012

Randal S. Franz and Henry L. Petersen

The purpose of this paper is to explain people's divergent perceptions of companies' corporate social responsibility (CSR) activities in order to help organizations strategically…

1133

Abstract

Purpose

The purpose of this paper is to explain people's divergent perceptions of companies' corporate social responsibility (CSR) activities in order to help organizations strategically manage their global responsibilities.

Design/methodology/approach

Combining institutional theory and role‐theory, the authors examine how people's expectations for the role of business (RoB) in society define the standard by which corporate activities are judged. Where conformity to institutional models confers “legitimacy” and compliance to social scripts constitutes “appropriate” behavior, the authors contend that congruence with RoB expectations is what defines corporate responsibility. This research utilized a quasi‐experimental method to explore the effects of stakeholder status and individuals' RoB expectations on their assessments of CSR activities.

Findings

Significant differences were found between stakeholder groups on all but one of the CSR activities scales. Of substantially more impact, subjects' RoB expectations were found to significantly shape their assessment on all CSR activities scales. A factor analysis of the RoB items identified five dimensions to the role business plays in society, which together define a holistic model for global responsibility.

Research limitations/implications

Subjects were recruited by convenience and randomly assigned to the four experimental conditions, so they are not representative of the general population. Future research would benefit from cross‐cultural, longitudinal and qualitative explorations into people's RoB expectations.

Practical implications

The five RoB components provide managers with a tool to strategically manage a multi‐dimensional portfolio of corporate CSR activities.

Originality/value

This research applies role‐theory concepts to the study of CSR, thereby introducing some emergent, situational, negotiated and idiosyncratic dynamics to our understanding of global responsibility.

Article
Publication date: 30 January 2020

Monika Łada, Alina Kozarkiewicz and Jim Haslam

This article explores the influence of duality in institutional logics on internal accounting, with a focus on a Polish public university. More particularly, we answer the…

Abstract

Purpose

This article explores the influence of duality in institutional logics on internal accounting, with a focus on a Polish public university. More particularly, we answer the research question: how does illegitimacy risk arising from the divergent pressures of the institutional environment impact management accountings in this institution?

Design/methodology/approach

This paper seeks to uncover intricacies of notions of internal legitimacy façade, decoupling and counter-coupling in practice. It explores details of organizational responses involving management accounting aimed at reducing illegitimacy risk. Achieving good organizational access, the authors adopt a qualitative case study approach involving contextual appreciation/document analysis/participant observation/discussion with key actors: facilitating building upon theoretical argumentation through finding things out from the field.

Findings

The authors uncover and discuss organizational solutions and legitimizing manoeuvres applied, identifying four adaptation tactics in the struggle to support legitimacy that they term ‘ceremonial calculations’, ‘legitimacy labelling’, ‘blackboxing’ and ‘shadow management accounting’. These can be seen in relation to decoupling and counter-coupling. Ceremonial calculations supported the internal façade. Shadow management accounting supported pro-effectiveness. Legitimacy labelling and blackboxing helped bind these two organizational layers, further supporting legitimacy. In interaction the four tactics engendered what can be seen as a ‘counter-coupling’ of management accounting. The authors clarify impacts for management accounting.

Research limits/implications

The usual limitations of case research apply for generalizability. Theorizing of management accounting in relation to contradictory logics is advanced.

Practical implications

The article illuminates how management accounting can be understood vis-à-vis contradictory logics.

Originality value

Elaboration of the tactics and their interaction is a theoretical and empirical contribution. Focus on a Polish university constitutes an empirical contribution.

Details

Accounting, Auditing & Accountability Journal, vol. 33 no. 4
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 30 November 2012

Deborah Lee

This article's aim is to describe the history, purpose, challenges, strategies, and progress of California's Mental Health Oversight and Accountability Commission (MHSOAC)…

137

Abstract

Purpose

This article's aim is to describe the history, purpose, challenges, strategies, and progress of California's Mental Health Oversight and Accountability Commission (MHSOAC), created by California's pioneering Proposition 63 (Mental Health Services Act). California voters passed this initiative in 2004 to expand and transform public mental health services.

Design/methodology/approach

This case study is based on observations of the author, who has worked with the Commission since its inception, and the study is adapted from a 2009 article by one of the original Commissioners who served from 2005‐2008. The article focuses on challenges and opportunities for oversight in an environment of stakeholders' high and diverse expectations, limited direct state authority, and significant and broad budget challenges.

Findings

The Commission prioritizes evaluation as its principal strategy with a primary goal of using evaluation results for quality improvement. Implementing this strategy, with limited county reporting requirements, inadequate data systems, and insufficient funds designated for evaluation, is a continuing challenge. Other key challenges – and opportunities – include passionate stakeholders with high and divergent expectations, a de‐centralized public mental health, and a statewide fiscal and budget crisis.

Research limitations/implications

The paper relies on the observations of two key participants: a former Commissioner and the Commission's staff psychologist. Participant observation brings opportunities for bias as well as insight. Diverse stakeholders undoubtedly would provide different perspectives on the progress of Proposition 63 and on the MHSOAC.

Practical implications

The Commission developed a logic model that defines strategies for oversight and accountability and links these strategies to Proposition 63's intended outcomes for California's public mental health services system and clients.

Social implications

The success of California's Proposition 63 in transforming mental health delivery from a “fail first” crisis system to a “help first” proactive system has implications for integrated healthcare delivery that includes mental health.

Originality/value

The California emphasis on recovery, resilience, and wellness for diverse people with and at risk of serious mental illness is consistent with national and world‐wide recommendations and initiatives and is one of the largest efforts to transform a mental health system to reflect these values.

Article
Publication date: 1 September 2001

Peter Steane

This paper argues that divergence rather than convergence is manifested in non‐profit governance in non‐profit boards in Australia. This reinforces broader literature on…

2372

Abstract

This paper argues that divergence rather than convergence is manifested in non‐profit governance in non‐profit boards in Australia. This reinforces broader literature on governance undertaken in other countries, and suggests expectations of convergence are premature. The inclusion of more women as directors, together with a greater proportion of directors from minority groups in society, supports a view of directorship dissimilar from the corporate sector. Such divergence offers a contribution to the theory and practice of governance because it suggests that policies of convergence need to be built upon a realistic assessment of the ideologies and values that characterise the non‐profit sector.

Details

Corporate Governance: The international journal of business in society, vol. 1 no. 3
Type: Research Article
ISSN: 1472-0701

Keywords

Book part
Publication date: 27 April 2004

Lisa Troyer

Teamwork represents a democratic logic that may contradict the bureaucratic logic characterizing many organizations. I develop arguments based on new institutional theory…

Abstract

Teamwork represents a democratic logic that may contradict the bureaucratic logic characterizing many organizations. I develop arguments based on new institutional theory suggesting that such a contradiction threatens a team’s legitimacy. My study of 71 teams lends support for two claims that capture a legitimacy paradox confronting teams: (1) Egalitarian work processes do correspond to more effective interactions within teams, however (2) To the extent that egalitarianism is uncommon in the organization in which a team is embedded, external evaluations of team effectiveness are less favorable. I discuss the implications of these arguments for subsequent research on organizational teamwork.

Details

Legitimacy Processes in Organizations
Type: Book
ISBN: 978-0-76231-008-1

Book part
Publication date: 30 November 2017

Raissa Pershina and Birthe Soppe

This study explores how organizations deal with divergent institutional logics when designing new products. Specifically, we investigate how organizations approach and embody…

Abstract

This study explores how organizations deal with divergent institutional logics when designing new products. Specifically, we investigate how organizations approach and embody institutional complexity in their product design. Through a multimodal study of serious games, we identify two design strategies, the proximity and the amplification strategies, which organizations employ to balance multiple institutional logics and design novel products that meet competing institutional expectations. Our study makes an important theoretical contribution by showing how institutional complexity can be a source of innovation. We also make a methodological contribution by developing a new, multimodal research design that allows for the in-depth study of organizational artifacts. Altogether, we complement our understanding of how institutional complexity is substantiated in organizational artifacts and highlight the role that multimodality plays in analyzing such situations.

Details

Multimodality, Meaning, and Institutions
Type: Book
ISBN: 978-1-78743-330-4

Keywords

1 – 10 of over 8000