Institutional Structure of Corporations (the Case of Large Russian Corporations)

Modern corporation is the main form of social production but its activity and development still remain a largely underex-plored question. Economic theory predominantly relies on simplified approaches based on mathematical modeling to study cor-porations, which gives us little in-depth understanding of the essence of this phenomenon. On the other hand, applied research on corporations does not rise to the level of theoretically significant generalizations. This paper proposes the following theoretical and methodological approach to analyzing the phenomenon of corporation: we identify institutional elements in its structure — institutions and routines. We use the cases of the largest Russian companies to demonstrate the possibility of using this approach to analyze specific corporations and their aggregates. The paper describes nine different routines that structure corporate actors’ interactions based on social norms, coercion, and private interest. We also conduct an analysis of the official sites of Russian cor-porations and sites with employee feedback, which leads us to evaluating each institution’s development from the triad: coercion, assistance, and opportunism. We found a significant correlation between the development level of each corporation’s institutional structure and its efficiency (profitability of sales and capitalization growth rate).

The Marketing Firm and the Consumer Organization: A Comparative Analysis With Special Reference to Charitable Organizations

The accurate delineation of various forms of business organization requires a comparative analysis of their objectives, functions, and organizational structures. In particular, this paper highlights differences in managerial work between business firms and non-profits exemplified by the charitable organization. It adopts as its template the theory of the marketing firm, a depiction of the modern corporation as it responds to the imperatives of customer-oriented management, namely consumer discretion and consumer sophistication. It describes in §2 the essentials of the theory and its basis in consumer behavior analysis, and outlines its unique position as the organization responsible for marketing transactions, based on objective exchange, competitive markets and prices, and the deployment of the entire marketing mix. §3 deals in greater depth with the objective, strategic functions, and organization of the marketing firm in terms of the concepts of metacontingency and bilateral contingency. §4 discusses how the marketing firm differs from charities in terms of goal separation, market-based pricing and competition, the entrepreneurial (strategic) process, the pursuit of customer-oriented management, and organizational structure. Particular attention is accorded the organizational differences between marketing firms and charities, which arise as a direct consequence of the distinct patterns of contingency they entail. §5 discusses the implications of the foregoing analysis and draws appropriate conclusions.

Are Online Job Postings Informative to Investors?

Human capital is a key factor in value creation in the modern corporation. Yet the disclosure of investment in human capital is scant. We propose that a company’s online job postings are disclosures made outside of the investor-relations channel that contain forward-looking information that could be informative to investors about future growth. We find that changes in the number of job postings are positively associated with changes in future performance and that this relation is stronger when postings likely represent growth rather than replacement. Consistent with job postings providing new information to the market, investors react positively to changes in the number of job postings. The market reaction to postings is stronger when firms are likely to be hiring for growth rather than replacement and for firms with low labor intensity (and therefore high marginal productivity of labor). This paper was accepted by Brian Bushee, accounting.

The purpose of the modern corporation: a holistic view

Purpose This paper aims to examine the shareholder versus stakeholder debate. This paper outlines how businesses are starting to move toward a stakeholder model, and also discusses what must be done to sustain the momentum toward the stakeholder model. Design/methodology/approach This paper uses examples from organizations to highlight the momentum toward the stakeholder model. Findings This paper suggests that countervailing forces - from financial analysts, institutional investors, and institutionalized practices in many corporations - will need to be overcome if businesses are to succeed in adopting the stakeholder model. Practical implications Thus paper discusses the role of educators in the process of changing the mindset of students, executives, and others from a shareholder to stakeholder mindset. Originality/value This paper discusses not only the trend toward the stakeholder model of businesses, but also how to sustain the momentum toward this model.