We use a long panel data set for four cohorts of male blue-collar workers entering into an internal labor market to analyze the effect of age on the probability of participating in different employer-financed training measures. We find that training participation probabilities are inverted u-shaped with age and that longer training measures are undertaken earlier in life and working career. These findings are consistent with predictions from a human capital model that incorporates amortization period and screening effects.
This paper examines whether high quality, curriculum-based training at the workplace makes firms more innovative. Our dependent variable innovativeness is operationalized with four different measures: general innovation, product innovation, process innovation and patent applications. As explanatory variable we use regulated apprenticeship training programs with three to four years length of the type found in German speaking countries. We argue that this type of curriculum-based workplace training provides an additional source of knowledge in the knowledge production process through its innovative and steadily revised training curricula. We expect that this additional source of knowledge leads to higher innovation in training firms compared to non-training firms. Our empirical results show that up-to-date curriculum-based apprenticeship training is positively associated with all of the four innovation measures. Taking endogenous apprenticeship decision into account, the positive effect is only significant for general innovation and patent applications.
This paper contains a critique of solvency regulation such as imposed on banks by Basel I and II. Banks’ investment divisions seek to maximize the expected rate of return on risk-adjusted capital (RORAC). For them, higher solvency S lowers the cost of refinancing but ties costly capital. Sequential decision making by banks is tracked over three periods. In period 1, exogenous changes in expected returns dμ and in volatility dσ occur, causing optimal adjustments dS* / dμ and dS * / dσ in period 2. In period 3, the actual adjustment dS* creates an endogenous trade-off with slope dμ / dσ. Both Basel I and II are shown to modify this slope, inducing top management to opt for a higher value of σ in several situations. Therefore, both types of solvency regulation can run counter their stated objective, which may also be true of Basel III.
We show in a rather general setting that Hoelder and Lipschitz stability properties ofsolutions to variational problems can be characterized by convergence of more or less abstract iteration schemes. Depending on the principle of convergence, new and intrinsic stability conditions can be derived. Our most abstract models are (multi-) functions on complete metric spaces. The relevance of this approach is illustrated by deriving bothclassical and new results on existence and optimality conditions, stability of feasible and solution sets and convergence behavior ofsolution procedures.
The article links leadership and legitimacy in globalizing business. It forwards a framework for analyzing how actors in organizations may build and maintain organizational legitimacy through different strategies. The discussion connects strategies for legitimizing organizational conduct across levels of analysis, highlighting the role of leadership in this process. The article builds on organizational discourse analysis to explain how individual actors may shape societal perceptions around organizational legitimacy. The presented framework highlights three generic strategies and the corresponding processes associated with leading toward legitimacy. In this way, it emphasizes mechanisms for gaining and maintaining legitimacy for each strategic response of the organization in relation to rhetorical tactics used to influence discourses and the resulting necessary leadership resources. The framework offers future theoretical and empirical research directions for the analysis of legitimacy discourses.
This paper proposes to study the constitution of organization at the interstice of order and disorder. By putting forward the processual, heterogeneous, and fragmented nature of organization, it explores the mediating role of communication in organizational becoming (Tsoukas and Chia, 2002). More specifically, the paper focuses on how organizations overcome the inherently precarious, contingent, and disorderly character of their existence in and through language use. Taking a communicative centered approach, the paper argues for considering language-in-use as intrinsically embedding both order and disorder. To do so it relies on the empirical material of three extensive qualitative case studies in three distinct project-based organizations: a science and technology diffusion program, a software development company, and a management consulting firm. The transversal analysis of these studies shows that efforts of ordering are continuously haunted by disordering, that is, the plurality of many potential orders, which are at work in communication. Furthermore, the analysis highlights the key and yet paradoxical role of ordering devices (in the three cases studied inscribed in texts), which are designed to create and maintain order, and because of their language-based nature, generate contingency and undecidability. Language is indeed a source of ambivalence (Weick, 1990). As such, the call for order can (usually does) trigger disorder and the other way around.
The implementation of Corporate Social Responsibility (CSR) is crucial for organizational legitimacy in today’s globalized world. In the absence of a global governance system, several initiatives have emerged to support companies in designing, implementing and communicating CSR. However, research has so far mainly neglected to empirically evaluate the impact of such initiatives on organizational practices. This study aims to close this gap by analyzing on a large quantitative basis how business participants in the largest voluntary CSR initiative - the UN Global Compact (UNGC) - embed CSR into their organizations. Drawing on insights from institutional and stakeholder theory, I derive determinants of UNGC implementation and analyze the accountability of the initiative. My study contributes to the literature in several ways: I develop a theoretical model to describe and explain variation in UNGC implementation, and scrutinize the new measure for UNGC implementation. My results show that the initiative affects organizational practices: Contrary to the bluewashing arguments of UNGC critics, the level of CSR implementation increases with the time of membership in the UNGC. However, my findings also suggest that the declared participant information still lacks credibility - higher UNGC implementation levels are not associated with significantly less UNGC scandals. Implications for CSR research, the Global Compact and its participants are discussed.
