Divestiture of prior acquisitions: competing explanations of performance

2019 ◽  
Vol 13 (1) ◽  
pp. 33-50
Author(s):  
Sina Amiri ◽  
David King ◽  
Samuel DeMarie
Keyword(s):  
Design Methodology ◽  
High Technology ◽  
Positive Relation ◽  
Multiple Perspectives ◽  
Press Releases ◽  
Improve Performance ◽  
Content Type ◽  
Public Firms ◽  
Treat All ◽  
Practical Implications

Purpose There are multiple perspectives of divestiture and its performance that require reconciliation. While research finds a positive market response to divestment announcement, divestiture of prior acquisitions are generally viewed negatively. The purpose of this paper is to develop and empirically test different explanations for the divestment of prior acquisitions. Design/methodology/approach This research employs event study to capture market reaction at acquisition announcement and subsequent divestments in a sample of 69 public US high-technology acquisitions between 2003 and 2008 that were divested by 2015. Only initial acquisitions involving public firms were included from the Thomson One Banker SDC database. Public press releases and companies’ SEC filings were reviewed to track divestitures back to prior acquisitions. Ordinary least squared regression was used to estimate coefficients. Findings Results indicate a positive relation between acquisition and divestiture performance around announcement dates. This finding rejects the correction of mistake explanation, suggesting that a negative stigma surrounding divestments is largely unwarranted and that investors reward capable acquirer’s divestiture decisions. Practical implications Investors do not treat all information signals at divestiture equally. For example, acquisitions made by larger and more profitable firms, or acquisitions paid for with stock, are associated with lower return upon divestiture announcement. Originality/value This study finds that investors view divestiture as a proactive strategy, suggesting firms can improve performance by actively managing acquisitions and divestments to optimize their portfolio of businesses.

Teamwork of temporary employees: multiple perspectives

2019 ◽  
Vol 27 (1) ◽  
pp. 11-14
Author(s):  
Saikat Chakraborty ◽  
Sushmita Chakravarti
Keyword(s):  
Design Methodology ◽  
Informed Decision ◽  
Multiple Perspectives ◽  
Temporary Employees ◽  
Content Type ◽  
Permanent Employees ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this study is to understand the teamwork of temporary employees by taking into consideration the impact and role of the management’s perspective, temporary employee’s perspective and contextual perspective. Design/methodology/approach Based on reviews of workplace literature pertaining to temporary employments, conversations with managers and temporary and permanent employees of organizations engaging temporary employees on a perennial basis have been thematically analyzed. Findings Multiple perspectives of teamwork of temporary employees exist in organizations. However, one rarely finds the interaction and collective treatment of these perspectives, which are critical to understanding teamwork of temporary employees. The paper reports on these perspectives. Practical implications With rise in temporary employments in organizations and teamwork being crucial to participative work cultures, organizations need to consider multiple perspectives of the phenomenon before making an informed decision. Originality/value There is limited research that delves into teamwork of temporary employees despite the phenomenon becoming increasingly significant in organizations. This paper offers an approach to look at teamwork of temporary employees through multiple perspectives.

Initiating, challenging and improving knowledge in organizational contexts

2018 ◽  
Vol 41 (3) ◽  
pp. 278-295 ◽  
Author(s):  
Stefania Mariano
Keyword(s):  
Design Methodology ◽  
Organizational Knowledge ◽  
Current Debate ◽  
Improve Performance ◽  
Content Type ◽  
Organizational Contexts ◽  
Managerial Practices ◽  
Practical Implications ◽  
Over Time

Purpose The purpose of this study is to investigate how organizational knowledge interacts with artifacts and what determinants, driving processes and outcomes govern these interactions in organizational contexts. Design/methodology/approach A case study is used and data collected is from a US engineering and consulting company. Findings Findings suggested three major driving processes specifically initiating, challenging and improving and several related determinants and outcomes that governed the interaction between organizational knowledge and artifacts over time. Research limitations/implications This study has limitations related to the nature and dimension of the case selected. Practical implications This study provides a means to explain how organizations hold existing knowledge and what determinants, driving processes and outcomes govern the interactions between knowledge and artifacts to assist managerial practices and improve performance. Originality/value This paper contributes to the current debate on organizational knowledge and provides some empirical evidence of how knowledge interacts with artifacts in organizational contexts.

The curse of the #1 carmaker: Toyota’s crisis

2018 ◽  
Vol 14 (1) ◽  
pp. 66-82
Author(s):  
Nobuyuki Chikudate ◽  
Can M. Alpaslan
Keyword(s):  
Design Methodology ◽  
Large Scale ◽  
New Technologies ◽  
Corporate Citizenship ◽  
Multiple Perspectives ◽  
Critical Approach ◽  
Technical Problems ◽  
Content Type ◽  
Daunting Task ◽  
Practical Implications

Purpose Using as many perspectives as possible to understand large-scale industrial crises can be a daunting task. This paper aims to demonstrate a reasonably complex yet systemic, analytical and critical approach to analyzing what causes crises. Design/methodology/approach The authors use a multi-perspective methodology within which each perspective uses a substantially different ontology and epistemology, offering a deeper understanding of the causes of large-scale crises. The methodology utilizes extant theory and findings, archival data from English and Japanese sources, including narratives of focal people such as Toyota President Akio Toyoda. Findings The analysis suggests that what caused Toyota’s crisis was not just Toyota’s failure to solve its technical problems. It was Toyota’s collective myopia, interactively complex new technologies and misunderstanding of corporate citizenship. Practical implications The authors argue that crises are complex situations best understood from multiple perspectives and that easily observable aspects of crises are often not the most significant causes of crises. In most cases, causes of crises are hidden and taken-for-granted assumptions of managers. Thus, managers must view crises critically from multiple yet distinct viewpoints. Originality/value The authors use Alpaslan and Mitroff’s multi-disciplinary methodology to outline several critical perspectives on Toyota’s messy recall crisis.

Consequences of sustainable innovations on the reshoring drivers’ framework

2020 ◽  
Vol 31 (7) ◽  
pp. 1373-1390 ◽  
Author(s):  
Carmen Martínez-Mora ◽  
Fernando Merino
Keyword(s):  
Production Process ◽  
Design Methodology ◽  
New Technologies ◽  
New Technology ◽  
Value Chains ◽  
Press Releases ◽  
Content Type ◽  
Depth Interview ◽  
Cost Differentials ◽  
Practical Implications

PurposeThe purpose of this paper is to illustrate how the introduction of new technologies can lead to reconsidering the division of the production process as well as the location of each stage, which may mean reshoring some of them.Design/methodology/approachThe research is based on the analysis of the consequences of new technologies developed and introduced in the market to be applied in the final stage of jeans manufacturing. The paper presents the relevance of this technology, based on an in-depth interview with the representatives of the firm as well as firm and press reports, specialised websites and so on. The information of the reshoring company has been confirmed by its press releases.FindingsThe results show that a new technology justifies the reconsideration of the stages in which the production process can be divided and, once this division is considered viable, the drivers for reshoring can become more/less important in the reshoring decision.Practical implicationsFirms that previously offshored should consider that new technological processes may lead them to slice their value chains differently, causing them to seek the optimal location for each of the stages.Originality/valueMost of the reshoring literature is based on a static framework where the production process is considered stable and the reasons for reshoring must reside in the change of relevant parameters (such as cost differentials, need to be more flexible, monitoring costs higher than expected, etc.). This paper reveals that changes in the production process, even in traditional sectors, may lead to reshoring/backshoring.

How a firm’s competitive strategy can improve performance

2019 ◽  
Vol 35 (2) ◽  
pp. 16-18
Keyword(s):  
Competitive Strategy ◽  
Design Methodology ◽  
Small And Medium Enterprises ◽  
Improve Performance ◽  
Content Type ◽  
Cost Leadership ◽  
Pertinent Information ◽  
Medium Enterprises ◽  
The Impact ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Pursuing an appropriate strategy can enable micro, small, and medium enterprises in developing countries to significantly improve their performance. Such firms should typically be best served by a cost leadership competitive strategy, the impact of which can be increased through an emphasis on key components of quality management. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Compensation clawback policies and corporate lawsuits

2019 ◽  
Vol 27 (1) ◽  
pp. 70-85
Author(s):  
Matteo P. Arena ◽  
Nga Q. Nguyen
Keyword(s):  
Design Methodology ◽  
Fiduciary Duty ◽  
Litigation Risk ◽  
Press Releases ◽  
Content Type ◽  
Current Change ◽  
Empirical Tests ◽  
A Company ◽  
Practical Implications ◽  
A Current

Purpose The purpose of this paper is to study the relation between compensation clawbacks and lawsuits and analyze how these two corporate disciplinary forces interact. This paper hypothesizes that by allowing firms to recoup compensation from managers who breach their fiduciary duty, clawbacks provide a form of discipline that potentially reduces the likelihood of managerial wrongdoing, which, in turn, lowers the risk of corporate lawsuits. Design/methodology/approach This paper identifies whether or not a company in the S&P 1500 had a clawback policy between 2007 and 2014 by searching the company filings and press releases. The authors also construct different proxies for litigation risk and lawsuit outcomes using the Audit Analytics Database. They then perform a variety of empirical tests to examine the association between clawbacks and litigation risk and the association between clawbacks and litigation outcomes. Findings This paper finds that firms with higher litigation risk are more likely to adopt a clawback policy. In addition, after the adoption of clawback provisions, litigation risk significantly declines, suggesting that clawback policies are effective in reducing the likelihood of corporate lawsuits. Furthermore, firms with clawback policies are approximately 50 per cent more likely to have lawsuits against them dismissed or settled for lower amounts (approximately 12 per cent lower). Practical implications The findings of this paper provide insights to the efficacy of a current change in compensation regulation, the mandatory clawback adoption requirement by the Dodd–Frank Act of 2010. Originality/value This paper contributes to the literature on both clawbacks and litigation, as it is the first to analyze the relation between the two.

Following the Finnish way

2018 ◽  
Vol 34 (3) ◽  
pp. 22-24
Keyword(s):  
Knowledge Management ◽  
Local Government ◽  
Design Methodology ◽  
Reading Time ◽  
Improve Performance ◽  
The West ◽  
Content Type ◽  
Global Citizens ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The way local government works in the West is changing to suit the needs of global citizens. Effective knowledge management holds the key to how local government can improve performance to provide what is needed without encountering the issues previous governments have faced. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

HR powers turn-around at Talcher thermal plant

2014 ◽  
Vol 22 (4) ◽  
pp. 16-18 ◽  
Author(s):  
Chandan Kumar Sahoo
Keyword(s):  
Performance Management ◽  
Design Methodology ◽  
Employee Involvement ◽  
Thermal Power ◽  
Improve Performance ◽  
Content Type ◽  
Thermal Plant ◽  
Hr Management ◽  
Working Practices ◽  
Practical Implications

Purpose – The purpose of this paper id to observe how imaginative human resource (HR) management has helped overcome resistance and improve performance following the takeover of the Talcher thermal power station in Odisha, India, by central government’s National Thermal Power Corporation (NTPC). Design/methodology/approach – Explores how a performance-management system, training and employee-involvement schemes have helped to reconcile the workforce to working practices designed to increase production and return the plant to profit. Findings – This paper explains that HR is now run in a more codified and less capricious way. Practical implications – This paper reveals that the plant, which now provides one of the cheapest sources of thermal power in India, is contributing to the overall wealth of the state in which it is situated. Social implications – It examines, in particular, how employee involvement is helping calm workforce fears over restructuring. Originality/value – It provides the inside story of the turn-around at an Indian power plant.

Using fractional GM(1,1) model to predict the life of complex equipment

2016 ◽  
Vol 6 (1) ◽  
pp. 32-40 ◽  
Author(s):  
Lifeng Wu
Keyword(s):  
Design Methodology ◽  
Small Samples ◽  
Percentage Error ◽  
Improve Performance ◽  
Content Type ◽  
Memory Processes ◽  
Gray System ◽  
Out Of Sample ◽  
Complex Equipment ◽  
Practical Implications

Purpose – The purpose of this paper is to improve performance for predicting the life spans of complex equipment systems. Design/methodology/approach – The gray system model with fractional order accumulation (FGM(1,1)) is used to predict the life spans of complex equipment systems using small samples. Findings – FGM(1,1) yielded a lower mean absolute percentage error (MAPE) for an in-sample and a much lower MAPE for an out-of-sample forecast, which means that FGM(1,1) can predict memory processes. Practical implications – FGM(1,1) can predict the life spans of other complex equipment. Originality/value – FGM(1,1) yielded a lower MAPE for an in-sample and a much lower MAPE for out-of-sample forecasts, which means that FGM(1,1) can predict memory processes.

scholarly journals Reflections about Garfield’s algorithm

2019 ◽  
Vol 54 (4) ◽  
pp. 548-558
Author(s):  
Laura Sinay ◽  
Maria Cristina Fogliatti de Sinay ◽  
Rodney William (Bill) Carter ◽  
Aurea Martins
Keyword(s):  
Search Engine ◽  
Search Engines ◽  
Design Methodology ◽  
Scientific Discourse ◽  
Rapid Progress ◽  
Multiple Perspectives ◽  
H Index ◽  
Content Type ◽  
Different Cultures ◽  
Practical Implications

Purpose The purpose of this paper is to critically analyze the influence of the algorithm used on scholarly search engines (Garfield’s algorithm) and propose metrics to improve it so that science could be based on a more democratic way. Design/methodology/approach This paper used a snow-ball approach to collect data that allowed identifying the history and the logic behind the Garfield’s algorithm. It follows on excerpting the foundation of existing algorithm and databases of major scholarly search engine. It concluded proposing new metrics so as to surpass restraints and to democratize the scientific discourse. Findings This paper finds that the studied algorithm currently biases the scientific discourse toward a narrow perspective, while it should take into consideration several researchers’ characteristics. It proposes the substitution of the h-index by the number of times the scholar’s most cited work has been cited. Finally, it proposes that works in languages different than English should be included. Research limitations/implications The broad comprehension of any phenomena should be based on multiple perspectives; therefore, the inclusion of diverse metrics will extend the scientific discourse. Practical implications The improvement of the existing algorithm will increase the chances of contact among different cultures, which stimulate rapid progress on the development of knowledge. Originality/value The value of this paper resides in demonstrating that the algorithm used in scholarly search engines biases the development of science. If updated as proposed here, science will be unbiased and bias aware.

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