Emerald | American Journal of Business | Table of Contents

The US cap and trade initiative: current status and potential impact on business

literatinetwork@emeraldinsight.com (Bruce W. McClain, Heidi Hylton Meier) — Fri, 12 Apr 2013 00:00:00 +0100

Abstract

Purpose – Even during these tough economic times the current administration has proposed to revive the US “Cap and Trade” initiative and to see it through to passage. Many in the public are not aware that the idea of cap and trade is not new as similar programs have been successfully used in the US and other countries to “wind down” environmentally damaging emissions. The aim of this paper is to explain cap and trade and to project what form current proposals could take. Design/methodology/approach – This paper explains cap and trade and goes on to project what form current proposals could take. It also examines the alternatives and the arguments both for and against cap and trade. Projected costs and benefits are examined, along with some examination of the actual mechanics by which the system is expected to operate. Findings – The current US mood is that proposals to reduce greenhouse gas emissions will be expensive and burdensome to businesses and consumers. In fact, this is what is preventing them from going forward. The consensus is now growing that in order to achieve the goals of cap and trade, proposals will have to be cost effective, expanded internationally, and include India, China and other emerging manufacturing economies. If this can be done, it appears that cap and trade will continue to be part of the landscape of US emission reductions, along with the use of alternative and other renewable energy resources. Originality/value – The paper examines costs and benefits of cap and trade, along with some examination of the actual mechanics by which the system is expected to operate

Characteristics of the information content in business sentiment surveys

Fri, 12 Apr 2013 00:00:00 +0100

Abstract

Purpose – The purpose of this manuscript is to quantify exactly how much information and/or predictive content is contained in business sentiment surveys. Design/methodology/approach – This paper uses techniques drawn from information theory econometrics, and more specifically the theory of information entropy, to characterize the predictive content of business sentiment surveys. The authors apply these techniques to publicly available information obtained from various editions of the Federal Reserve Bank of New York's Empire State Manufacturing Survey, one of the most popular business sentiment surveys conducted in the USA. Parametric and non-parametric statistical analyses are used to examine differences in the quantity of predictive content across various questions in the survey. Findings – The results suggest that business sentiment surveys contain a reasonably high degree of informative content. However, the amount of informative content varies considerably from question to question in the survey. Questions that are more general in nature and ask about current perceptions (as opposed to future expectations) contain more informative content. Originality/value – Business sentiment surveys are a practical, low-cost method to assess the current and expected future state of local and regional economies. However, the value of these surveys is questionable if they do not contain much information. This research finds that such surveys do contain a large amount of information, and are worth administering. However, specific types of survey items convey more information that others, which also suggests that business sentiments surveys can be further revised to maximize the amount of content gained from respondents.

Alliance portfolio R&D intensity and new product introduction

literatinetwork@emeraldinsight.com (Turanay Caner, Beverly B. Tyler) — Fri, 12 Apr 2013 00:00:00 +0100

Abstract

Purpose – The purpose of this paper is to examine whether alliance portfolio R&D intensity contributes to biopharmaceutical firms' number of new product approvals and whether alliance portfolio R&D intensity is more positively related to the number of new product approvals for pharmaceutical firms than for biotechnology firms. Design/methodology/approach – The paper employs a random effects Poisson regression model using panel data of 821 firm year observations for 146 biopharmaceutical firms operating in the USA. The robustness of results is also checked with additional analysis, provided in an appendix. Findings – The results of this study show that the R&D intensity of firms' alliance portfolios is positively related to their new product introductions. It is also found that alliance portfolio R&D intensity has a more positive impact on the pharmaceutical segment of the industry's new product introductions than those of the biotechnology segment. Originality/value – The authors develop and test theory about how the combined effects of two dimensions of alliance portfolio configuration (size and relationship strength) positively impact new product development. The authors propose a two dimensional alliance portfolio configuration measure, alliance portfolio R&D intensity. They combine the number of R&D alliances relative to the total number of alliances in the portfolio with the differential strength of ties associated with resource commitments required to source information from upstream and downstream alliances.

Revisiting the role of communication quality in ERP project success

Fri, 12 Apr 2013 00:00:00 +0100

Abstract

Purpose – Communication quality is repeatedly listed among the top success factors to consider when implementing an ERP system. Analysis shows its role is more complex. It helps some aspect of success but has no influence on others. The aim of this paper is to conduct a case study to determine the role of communication quality in the success of an ERP project implementation. Design/methodology/approach – A case study was conducted to determine the role of communication quality in the success of an ERP project implementation. Findings – Results suggest that different aspects of communication quality impact different dimensions of project success. Some dimensions of project success did not seem influenced by communication quality. Results also show that, for the dimensions of project success that are influenced by communication quality, the form might be as important as the content of communication. Research limitations/implications – The literature may be repeating an “accepted truth” without actually testing it. The evaluation of the regularity of the patterns observed will require additional observations. Also, the reasons behind the association between the communication quality attributes and the different components of success will need to be further investigated. Practical implications – For managers, the findings highlight that communication is not a silver bullet when conducting ERP projects. Managers should also be aware that the form of the communication efforts will likely have as much impact as the content of the communication process. The results specially emphasized the importance of openness in communication. Originality/value – The study considers nine dimensions of communication quality. By examining the separate effects of the communication content and form on the components of ERP project success, the paper provides a deeper understanding of the role of communication in the implementation of ERP systems.

Human resource management practices in mid-sized enterprises

literatinetwork@emeraldinsight.com (Glenn M. McEvoy, Paul F. Buller) — Fri, 12 Apr 2013 00:00:00 +0100

Abstract

Purpose – The purpose of this paper is to examine the similarities and differences in human resource (HR) practices between large and mid-sized organizations. Design/methodology/approach – With organization life cycle as the theoretical base, this study collects data on HR practices from a sample of mid-sized firms in one western state and compares the results to a previously published study of HR practices in much larger firms. Mid-sized firms are defined as having between 300 and 3,000 employees (mean=1,205); the average number of employees in the large firm sample was 30,700. Findings – While there are some similarities in HR practices, it appears that HR organizations in large firms are more targeted at strategic business issues and have achieved a greater degree of outsourcing and/or information technology application for the routine, file maintenance aspects of HR work. On the other hand, HR informants in mid-sized firms are more operationally focused, appear to be more satisfied with the skills and knowledge of their significantly smaller HR staffs, and give their HR organizations higher ratings on performance along multiple dimensions. Research limitations/implications – Limitations to the present study include the use of a single informant and a limited sample of mid-sized firms (n=32). However, the study suggests numerous possibilities for future research, including expansion of the sample both in size and geographic scope, the collection of measures of performance for comparison with those of HR satisfaction, and fuller development of a set of expectations for HR focus dependent on the size and rate of growth of the organization. Originality/value – The HR practices of large and small (less than 500 employees) firms have been studied in the past. This paper fills a gap in organization life cycle theory by examining HR practices in mid-sized firms, suggesting in particular that the drive to refocus HR on strategic issues in large firms may be inappropriate in enterprises with 300 to 3,000 employees.

Revolutionize your business

literatinetwork@emeraldinsight.com (Michael E. Earley) — Fri, 12 Apr 2013 00:00:00 +0100

Completing the transition at the AJB

literatinetwork@emeraldinsight.com (Richard Reed, Susan F. Storrud-Barnes) — Fri, 12 Apr 2013 00:00:00 +0100