Adm. Sci.2014, 4(3), 219-241; doi:10.3390/admsci4030219 - published online 21 July 2014 Show/Hide Abstract
Abstract: This paper takes both a conceptual and an empirical approach to answer the question as to how Corporate Social Responsibility (CSR) can be connected to the company’s role as an agent of social value creation when it operates within an imperfect institutional framework of market competition. To develop a functional design for an empirical study, we draw on the concept of ordonomics, which provides a heuristics for responsible business activities in society. Drawing on ordonomics, we devise three questions: Referring to action responsibility we ask in which CSR activities companies do invest in their day-to-day business. Referring to governance responsibility we ask as to how companies realize win-win solutions through strategic commitments. In addition, with regard to discourse responsibility we ask in which stakeholder dialogues companies engage in order to discuss and find functional rules for organizing win-win solutions. In our empirical study, we reveal insights into the micro-level analysis of the CSP-CFP link and generate several new questions to be the subject of future research.
Adm. Sci.2014, 4(3), 192-218; doi:10.3390/admsci4030192 - published online 4 July 2014 Show/Hide Abstract
Abstract: When firms (conglomerates) are competing, not only for the present, with a given population of customers and a fixed set of commodities or service, but also for the future, in which products are constantly evolving, what will be their competitive strategies and what will be the emerging ecology of the market? In this paper, we use the agent-based modeling of a modular economy to study the markup rate dynamics in a duopolistic setting. We find that there are multiple equilibria in the market, characterized by either a fixed point or a limit cycle. In the former case, both firms compete with the same markup rate, which is a situation similar to the familiar classic Bertrand model, except that the rate is not necessarily zero. In the latter case, both firms survive by maintaining different markup rates and different market shares.
Adm. Sci.2014, 4(3), 173-191; doi:10.3390/admsci4030173 - published online 4 July 2014 Show/Hide Abstract
Abstract: In the last century, the evolution of manufacturing was characterized by several innovations, concerning technologies, processes, but also entire production systems, with radical changes in strategies, product design, and management of organizations. Cost, time, and quality are the pillars on which was based the industrial competitiveness during that era. In the most recent years, a renewed interest in environmental issues and socio-ethical values has gradually promoted the transition towards the so-called low impacteconomies. Producers are then required to pursue a more rational and eco-efficient use of resources and reduce production wastes to survive; also the concept of value chain has been often associated with the terms environmental/green or sustainable. Various studies have been carried out to encourage companies in including the environment in their strategic and operational decisions making. Industrial Ecology (IE) represents the latest and most ambitious attempt to reach this goal; however, a great deal of work remains to be done to achieve this goal. As a result, enhancing companies to integrate efficiency and sustainable practices still has a long way to go. This study presents an overview on the evolutionary dynamics of manufacturing in the industrial age, and offers a discussion about the potential synergies in integrating IE approaches and tools in Lean Manufacturing, by introducing the environmental load as a further type of Muda; the systematic actions to reduce this waste can build up the basis for improving competitiveness through the eco-efficiency.
Adm. Sci.2014, 4(2), 155-172; doi:10.3390/admsci4020155 - published online 19 June 2014 Show/Hide Abstract
Abstract: As a result of the development of new industrialized countries, such as Brazil, China and other Southern Asian economies, as well as a globalized economy, traditional competitive paradigms based on advantages associated with costs and quality efficiencies or even innovation are no longer sufficient. These previous classical paradigms related competitiveness either to costs or technology innovation and the resources of industry incumbents. However, the combination of adequate knowledge and relationship management with marketing efforts brings forth a reconsideration of the present competitive models that go beyond those analyses from the point of view of global value chains. The objective of this investigation will analyze the governance structure of the territorial value chain in the Spanish and Italian ceramic tile industry, through the understanding of the previous and current roles of several industries involved in the value creation system. By way of both a case study and quantitative methodology approach, we will explore the paradigm change where traditional chain actors are losing their grip on their contribution to the territorial value creation system as new actors appear with a more stable status. The article concludes that proper positioning in the global value chain is a key strategy for the sustainability of the involved firms, especially Small and Medium Enterprises (SME).
Adm. Sci.2014, 4(2), 137-154; doi:10.3390/admsci4020137 - published online 26 May 2014 Show/Hide Abstract
Abstract: As firms are creating and recreating themselves as stakeholder corporations, tensions mount between a firm’s fiduciary duties to its shareholders and the broader responsibilities inherent in a stakeholder focus. Firms have employed several techniques to help resolve this tension with limited success. We suggest that the next step in reducing this tension is formally accounting for stakeholder value through changes in financial reporting. We contend that stakeholders have a financial value to the firm that can and should be accounted for through the firm’s financial reporting system. We propose a three-step process we call stakeholder valuing (SV) to begin a conversation regarding how such a method can be created. SV begins with codifying the firm’s identity as a stakeholder entity, moves to assessing stakeholder value that’s consistent with that identity, and concludes with accounting for and reporting that value. What we are suggesting will be seen by some as a radical change in accounting practices but we believe it is necessary as we move toward a consistent, reliable, verifiable, transparent, and comparable means of accounting for the true value of a stakeholder corporation.
Adm. Sci.2014, 4(2), 120-136; doi:10.3390/admsci4020120 - published online 14 May 2014 Show/Hide Abstract
Abstract: Public and nonprofit organizations, entwined in the delivery of public goods and services, are in the midst of challenging economic times. In these circumstances, sound collaborative leadership may help bridge budget and program service delivery shortfalls. In this paper, we examine the administrative dynamics of mutual reliance between two prominent public and nonprofit organizations: public schools and parent-teacher groups (PTGs). We conclude that the partnership is changing as a result of external, economic forces. In essence, we are seeing a threat-rigidity response. The economic crisis may be responsible for causing PTGs to narrow their range of activities away from broader strategic issues that can be addressed through their confrontation activities and advocacy mission towards a narrower focus on classroom activities that protect core school operations, namely instruction.