Remodeling Street-Level Workers With Quasi-Markets: Comparing Ireland’s Mixed Economy of Welfare-to-Work

Quasi-markets in employment services often follow social policy turns toward activation. Critics see this as no accident, arguing that marketization is intended to raise the odds that workfare policies will be implemented. Drawing on surveys of Irish frontline activation workers, this study harnesses a natural policy experiment whereby Ireland introduced a Payment-by-Results quasi-market alongside a parallel program contracted without outcomes-based contracting. Although the demandingness of activation remains modest in Ireland, the study finds that regulatory approaches are more common under market governance conditions, which in turn has been associated with significant workforce changes and stronger systems of performance monitoring.

Luis Banchero Rossi (1955-1972), the best entrepreneur in Peru’s fishmeal industry: market governance, social capital, and embeddedness

In the 20th century, Peru was one of the major fishmeal producers worldwide. Luis Banchero Rossi (1929-1972) was the main driving force behind this economic boom. This article discusses how, given a set of historical conditions favoring such a setting, Banchero’s business performance surpassed that of other Peruvian and foreign producers in the industry, and enabled this development. This research uses complementary methodologies; i.e., case study work and financial databases. The authors find that Banchero’s share in Peru’s total exports reached 15.3 % in 1968, far above the next largest Peruvian exporter. In this regard, Banchero operated his organization following a set of criteria, called market governance by Williamson, plus several advantages, including negotiation abilities, social capital formation, human capital management, and tacit knowledge development, building on Peru’s specific sociological conditions. These conclusions help understanding how an entrepreneur of humble origins like Banchero worked around a commodity such as fishmeal to become a successful business leader worldwide.

A transaction cost approach for public procurement

Purpose This paper aims to develop a theoretical framework based on transaction cost economics that identifies key factors shaping public agencies’ governance of supplier relationships and related performance implications. Design/methodology/approach The paper presents an extended transaction cost framework for research on public procurement (PP) with a corresponding set of propositions. Transaction cost theory and specific features of and challenges to the PP function identified in extant literature constitute the main elements of the framework. Findings This conceptual paper makes three sets of proposals. First, public agencies tend to rely on market governance of supplier relationships and when PP deploys non-market governance, such governance tends to be of a unilateral (vs bilateral) kind. Second, increases in purchasing competence and autonomy of PP and particularly if implemented in tandem, will reduce PP’s overreliance on market governance and increase PP’s use of non-market governance. Third, PP should perform better for less complex transactions – and when contracting complexity relates to safeguarding of specific assets rather than when complexity relates to environmental and behavioral uncertainty. Increases in competence and autonomy should increase PP’s performance, particularly for complex transactions. Practical implications Public agencies may be in a better position to align governance solutions with transaction complexities by developing their procurement competence, decentralizing procurement decisions and increasing the flexibility of national and international procurement regulations. Private companies selling to public agencies need to be aware of and able to adapt to PP practices such as extensive use of market governance and unilateral governance as the primary form of non-market governance. Social implications The paper discusses how public agencies can improve procurement performance through better alignment of governance of supplier relationships with transaction attributes and thereby increase the quality of public services. Originality/value The paper relies on a well-established theoretical perspective, enabling identification (and, potentially, correction) of governance misalignment in the public sector.

System or Process? A Meta-theoretical Reflection on the Nature of the Firm

The paper revisits the fundamental question of the nature of the firm by contrasting two philosophic worldviews suggested by process philosophy and the Luhmannian systems theory. Whereas the former worldview takes reality to be internally related, the latter ones underscores the tendency of social systems, such as firms, to disregard much of this interrelatedness. The productive tension between these worldviews suggests that the firm provides a context where systemic imperatives meet the rich concrete reality of human life. The role of the firm is to house those aspects of this reality that are too organic to be accommodated by the abstract “language of prices” corresponding, in institutional economics terms, to the reliance on market governance. The major examples of these aspects explored in the paper are dynamic capabilities and business ethics, both of which hold the potential to improve the firm’s sustainability, both economic and social. The proposed contrast between the process-philosophic and systems-theoretic worldviews thus illuminates not only the nature of the firm but also the managerial relevance of corporate sustainability instruments.

Portuguese Labour Market Governance in Comparative Perspective

This chapter analyses the core characteristics of labour market governance in Portugal in a comparative perspective, analyzing the interplay of public and private regulation in the setting of wages and employment conditions. The chapter describes the main characteristics of the Portuguese employment model within the European context and how it departs from other Southern European countries, notably when it comes to female and low-skilled employment. The chapter argues that the power relationships that emerged out of the transition to democracy favoured a more liberal employment regime than in Spain, resulting in a lower threshold of unemployment but also higher income inequalities and lower wage protections. The models have tended to converge in recent years, and income inequality in Portugal has diminished. The chapter highlights the high level of female employment since the 1960s, a characteristic that departs significantly from other Southern European countries. It is explained by specific contextual factors, notably the legacy of the colonial war and high rates of emigration.

EU Financial Market Governance and the Covid-19 Crisis: ESMA’s Nimble, Responsive, and Speedy Response in Coordinating National Authorities through Soft-Law Instruments

The initial evidence indicates that EU financial market governance has performed well in its response to the Covid-19 crisis. In the European Union (EU), the need for coordination and cooperation over this crisis has been a particular concern given that national competent authorities (NCAs) operate under the single rulebook and supervisory action must, accordingly, be consistent. The European Securities and Markets Authority (ESMA) has, however, shown itself to be nimble, responsive, and speedy in deploying its supervisory powers, including those additional powers it has recently been granted under the 2019 ESA Reform Regulation. This has particularly been the case as regards the application by NCAs of ‘supervisory forbearance’ and as regards the application of market disclosures rules, notably the financial reporting standard IFRS 9. ESMA has also been successful in coordinating the few NCAs which decided to impose restrictions on short selling. ESMA’s actions during the Covid-19 crisis underline the de facto power it wields through its soft supervisory convergence powers and the entrepreneurial but effective approach it deploys in their use.See generally, Niamh Moloney, the Age of ESMA. Governing EU Financial Markets (Hart Publishing, 2018), chapter 4.

Unpacking the efficacy of organizational routines in the financial services industry

Purpose This paper aims to examine how the efficacy of organizational routines varies and the mechanism through which organizational routines improve firm performance. Design/methodology/approach A theoretical model is proposed and tested using data from 53 interviews with financial services experts and 291 survey responses from financial advisors. Findings Operational and adaptive routines work through absorptive capacity to positively contribute to firm performance. The positive effects of adaptive routines are magnified under market governance. Research limitations/implications The examination of organizational routines is focused on routines at the firm level. Therefore, higher corporate-level routines were not measured. Response rate for the survey is a possible concern, so future research will benefit from increasing the response rate from the focal population. Practical implications This study benefits firms facing the dual role of customization and discipline in working with clients toward service delivery. The findings suggest that firms should develop both operational and adaptive routines, particularly when operating under market governance. Originality/value This study identified two categories of routines (operational and adaptive) and the circumstances in which the causal link between routines and performance varies. This study examined the potential moderating influence of a governance mode (market vs hierarchy). Absorptive capacity was identified as a mediator between the use of routines and firm performance.