FIRM PERFORMANCE AND EMPLOYEE DOWNSIZING: THE MODERATING ROLE OF NATIONAL CULTURE
Andre L. Honoree and Mario Krenn
A limitation in the downsizing literature is its lack of attention on how firms’ institutional context interacts with firm’s internal drivers of employee downsizing. This study examines the firm performance - employee downsizing relationship in 1,747 firms across 35 countries over three years and demonstrates that while this relationship is similar among firms across countries, its magnitude varies across countries, and that the cultural dimensions of in-group collectivism, power distance, uncertainty avoidance help explain this variance. Implications from these findings and future directions for employee downsizing research and practice are discussed.
UTILIZING PPPS AS AN ALTERNATIVE TO ENTERING BOP MARKETS: BENEFITS, CHALLENGES, AND SUCCESS FACTORS
Dirk J. Primus, Justin Robinson-Howe, and Nicholas Tasca
This paper examines public-private-partnerships (PPPs) as viable modes of entry into Bottom-of-the-pyramid (BOP) regions. BOP regions present attractive growth targets with untapped purchase power, however, recent case evidence and BOP research suggests that challenges associated with BOP regions present significant challenges for companies entering BOP regions with business-to-business (B2B) and business-to-consumer (B2C) strategies. In this paper, we concur with existing work by Vinogradov et al. (2014), which argues for PPPs as alternative modes of entry that generate mutual benefits for the regional government and the entrant. However, there is no conceptual framework that guides research and informs practitioners in this important area. To address this deficit, we examine extant PPP literature and case evidence to identify benefits, challenges, and the key factors that contribute to a successful bidding and execution process in a PPP. Finally, our work provides a discussion of how the key success factors can be implemented.
CHANGING PLANES IN MANAGING HUMAN RESOURCES IN HIGH PERFORMING INDIAN BANKING ORGANIZATIONS: ATTRACT, RETAIN, AND MOTIVATE
Sensitive to change, human resource (HR) function plays a crucial role in dealing with globally competitive marketplace. Banking sector in a developing country like India is no different. There is an urgent need to revolutionize HR practices in Indian banking. This paper, as part of a larger research, studies high performing banking organizations in India and proposes a changing pattern of HR for the Indian banking organizations through the attract, retain, and motivate (ARM) framework. Further, the paper examines through exploratory factor analysis (EFA) whether and to what extent the changing pattern in HR practices in case of public and private sector banks supports the proposed conceptual framework. Thus, the paper presents empirical evidences (412 employee respondents) for the changing pattern of HR practices. The paper exhibits differences in the extent to which HR practices are changing in the public and private sector banks. Decisions to improve the HR priorities and practices can lay foundations for highperforming organizations. The paper examines an important issue for managerial decision-making in identifying the right blend of ARM to become high performing banking organization.
EARNINGS MANAGEMENT AND FINANCIAL CRISIS: EVIDENCE FROM INDIA
Manish Kumar and Madhu Vij
This paper attempts to examine the earnings management behavior of Indian firms during the global financial crisis in 2008 and compare with the period before and after. It uses the financial data of S&P CNX 500 companies for the period of 2007-2012. GICS, the best industry classification system among competing alternatives, has been used for computing discretionary accruals (DA). The study finds a high level of earnings management in firms during the pre-crisis period, a significant decrease during the crisis period, and an increase again in the post-crisis period. The study further examines the earnings management behavior isolating the firms into two categories – firms with positive DA and firms with negative DA. We found that earnings management in both these categories of firms decreased during the crisis period and increased in the post-crisis period for firms with negative DA. However, for firms with positive DA, our results are inconclusive.
THE ROLE OF NON-MARKET FACTORS IN INTERNATIONAL TRADE: A CASE OF SOUTHERN AFRICA
Mikhail Grachev and Mariya Bobina
This study examines the impacts of non-market factors on international trade in four regionally clustered African countries (Namibia, South Africa, Zambia, and Zimbabwe). It applies the concept of cross-national distance from international business and incorporates statistical and empirically generated data into the augmented gravity models of international trade to predict the impact of those non-market factors. The study reveals negative effects of geographic distance and positive or mixed cultural distance effects in these countries’ foreign trade flows. This paper also suggests useful implications to business scholars and practitioners.