External affairs and trusted family businesses: A research agenda

In the past two decades, the Journal of Public Affairs has solidified corporate public affairs as a legitimate leadership skillset vital to driving future business growth. Yet, more work at a persistently overlooked gap in the Journal, the intersection of public affairs and family businesses, might shed new light on thriving, trusted, and sustainable business practices. This paper examines the unique contributions of family businesses as trusted influencers. As one of the most prominent forms of business, worldwide, family businesses persistently enjoy unusually high levels of public trust while collectively employing millions of wage earners yet their contributions to corporate external affairs research ostensibly have been largely overlooked. These “silent” community and social influencers offer a potentially new perspective on effective public outreach given their persistent and unique trust advantage. Family business' trust-based capabilities can potentially bring new insights to understanding effective stakeholder engagement, credible communications, and issues management—the sweet spot of corporate public affairs functions. Future research opportunities based on relational- and locational- advantages of trusted family businesses are identified.     

The five capabilities of socially responsible companies

This paper develops and tests a model that integrates processes of public affairs management with stakeholder engagement and dialogue, business ethics and social reporting to explain social responsibility capabilities in organisations. The model, called Corporate Social Responsibility Management Capacity, describes social responsiveness as arising from a firm's social responsibility orientation and its public relations orientation. The paper shows how the model can be used by managers to measure, manage and improve their company's ability to be socially responsible. Copyright © 2004 Henry Stewart Publications     

Demand for credit,international financial legitimacy,and vulnerability to crises: Regulatory change and the social origins of Iceland's collapse

By analyzing how credit in Iceland expanded to culminate in the country's 2008 financial collapse, this article advances theories about financial crises, regulatory change, and the role of credit. It also complicates popular accounts of Iceland's collapse that focus on the actions of unrestrained bankers by examining the larger context that facilitated these banking practices. After financial liberalization, Icelandic businesses and households had strong demand for credit as a result of: (i) the institutional meaning of credit, (ii) an emergent growth strategy of aggressive international expansion, and (iii) increasing consumption. Incorporating business demand for credit extends demand‐side theory of crises and shows how dominant strategy and shared government and business orientation toward opportunity shaped credit expansion. Credit‐based consumption also stabilized social relations despite increasing inequality. Notwithstanding warnings of risk, regulation did not restrain risky leverage. International market reactions reinforced beliefs about Icelandic success to limit regulatory reach, as Iceland's international financial legitimacy produced market‐based measures that leaders interpreted as signals of economic success.     

Does Corruption Hinder Private Businesses? Leadership Stability and Predictable Corruption in China

We study whether corruption hinders businesses by investigating China's private enterprises, which have developed rapidly despite high corruption levels. We argue that a key factor determining the effects of corruption is corruption predictability, which is significantly influenced by government leadership stability. When the same leaders remain in major offices for long tenures, corruption is relatively predictable, reducing hindrance to businesses. When leaders change frequently, entrepreneurs need to constantly cultivate new connections with officials and face more uncertainty; therefore, corruption becomes a major obstacle. We conduct field interviews to explore channels through which leadership stability encourages predictable corruption. We also use the 2012 World Bank Enterprise Survey of Chinese private firms and develop a novel measure of leadership stability of the local Chinese government based on a self‐collected data set of municipal party committees to test our hypotheses. Results of various models are consistent with our hypotheses.     

Leadership and Meaningful Work in the Public Sector

There have been many important studies on leadership in the public administration discipline; however, scholarly inquiry still lags behind related disciplines such as psychology and business administration. This article helps fill that gap by analyzing the role that public leaders play in making work more meaningful for their employees, which, in turn, has a positive influence on employee job outcomes. Specifically, the authors analyze the mediating role of work meaningfulness in the relationships between leader‐member exchange and organizational commitment, work effort, and work‐to‐family enrichment. Samples from education, health care, and local government are used. Results show that leadership strongly influences work meaningfulness, which, in turn, influences job outcomes. In addition, the impact and extent of leadership and work meaningfulness are higher in health care and education than in local government. The results emphasize the importance of leadership and meaningful work in the public sector.     

Squaring the Virtuous Circle: Exploring the Potential of the ‘Five Cs’

During his May 2014 visit to Australia Pascal Lamy, former Director General of the World Trade Organization, urged ‘public institutions, civil society, and global businesses’ to forge ‘creative coalitions’ for the purpose of engaging constructively and positively with the complex problems standing in the way of achieving social and economic sustainability. Lamy's visit was but the first of several occasions during 2014 in which intense public discussion erupted about the need for government, business, and civil society to pool their capacities in boundary‐spanning efforts to address complex policy problems. This article investigates whether the public discussion portends a heightened policy focus on the ‘five Cs’: co‐production, co‐design, corporate social responsibility, collective impact, and Lamy's creative coalitions.     

Leader's spiritual intelligence and religiousness: Skills,factors affecting,and their effects on performance (a qualitative study by grounded theory)

Spiritual intelligence has received increasing quantitative research interest, while there is still no attention regarding to investigate spiritual intelligence with applying qualitative methods, especially grounded theory design. This study aimed to detect the skills, affecting factors, and the effects of spiritual intelligence and religiousness on performance. The qualitative analysis of the data collected through the in‐depth interview of the participants after encoding and classification, and the continuous comparison of the data by encoding and data by axes, resulted in these data can be coded in three axes: leader's spiritual intelligence skills, factors that affect leader's spiritual intelligence, and the effects of leader's spiritual intelligence on performance. The results revealed that there are five skills of leader's spiritual intelligence: work‐life balance skill, consists of (5) sub‐skills, leadership transcendence skill includes (6) sub‐skills, leadership meaning and purpose production skill includes (4) sub‐skills, leadership mindfulness skill consists of (9) sub‐skills, and the fifth skill is leadership virtue behavior includes (8) sub‐skills. And also, the results indicated that there are many factors that impact the leader's spiritual intelligence, were classified into three objects: personal (three factors), social and family (two factors), and work factors (4 factors). All participants were agreed unanimously that the leader's spiritual intelligence and religiousness are determined and affect the performance of the leader and his subordinates, these were classified into two objects: The first object is a leader's work‐performance, consisting of (16) indicators, and the second object is a workers performance includes (12) indicators. In light of these results, the study recommended the necessity of developing leaders' awareness of the importance of passion of spiritual intelligence skill and their impacts on performance. Thus, these findings shed new light on the importance of developing leaders' spiritual intelligence skills to resolve leadership problems, and increasing productivity, creativity, and well‐being among leaders and workers in Arab World.     

On the equity effects of taxing imputed rent: Evidence from Australia

Abstract

Taxation of net imputed rent from owner‐occupied housing (and mortgage interest deductibility) has been advocated in Australia on grounds of both efficiency and equity. The current tax system (no taxation or deductibility) favors owner‐occupied housing over business investments, and in the owner‐occupied sector it favors high‐income, low‐debt households over others. Nevertheless, imputed rent taxation has been criticized on the empirical grounds that its direct burden would fall more heavily on low‐income households than high‐income households.

Using micro‐level data from the 1986 Income Distribution Survey, we show that the burden does not fall more heavily on low‐income households when net imputed rent is included in owners’ incomes and when life cycle effects are controlled for. Moreover, for married couples aged 25 to 54, the taxation of imputed rental income would be not only progressive, but more progressive than the taxation of other household income.     

Entrepreneurial orientation and generic competitive strategies for emerging SMEs: Financial and nonfinancial performance perspective

In the competitive markets, business ventures have not only emphasized financial performance but nonfinancial performance has also become the need of the day due to its significant role in increasing customers. However, minor attention is given to the relationship between entrepreneurial orientation, business strategy and nonfinancial performance of emerging small and medium enterprises (SMEs). This study scrutinizes the effect of each dimension of entrepreneurial orientation (i.e., innovativeness, risk‐taking, and proactiveness) and each of generic competitive strategies (i.e., differentiation and cost leadership) on the performance (financial and nonfinancial) of emerging SMEs. We surveyed 373 SMEs operating in Pakistan through a structured questionnaire. For the data analysis and hypotheses testing, we used AMOS.21. The findings display that innovativeness, proactiveness, and risk‐taking significantly improve financial performance while insignificantly impact nonfinancial performance. Differentiation and cost leadership strategies significantly spur financial as well as nonfinancial performance of SMEs. This study advises that top managers of SMEs in the emerging economies need to maintain a focus on entrepreneurial activities and formulate unique competitive strategies to attain higher performance. This research further recommends policymakers to initiate entrepreneurship programs for SMEs to configure entrepreneurial posture of the businessmen. Further recommendations have stated.     

Sustainable development challenges in a war‐torn country: Perceived danger and psychological well‐being

The laborer's physical and mental health, well‐being, and happiness are among the major indicators for measuring each nation's sustainable development. A conflictive and hostile external environment (war zone) poses considerable difficulty and psychological distress to workers and nonworkers. Therefore, working in such a physically dangerous business environment may hurt worker's well‐being and happiness that in turn may reduce the workers' productivity at the workplace. A high level of laborers' productivity in public and private sectors is essential for achieving sustainable development in the long term. Therefore, this paper examines the effects of perceived danger on employees' psychological well‐being in war‐torn Afghanistan, an issue being addressed for the first time. We tested the moderating role of social support from coworkers on this effect in order to have a broader vision of which individuals are healthier and happier in a physically dangerous working environment. Two survey data sets were collected from 190 employees working in various small private and public businesses in Herat, Afghanistan. Our results reveal the negative impact of perceived danger on employees' psychological well‐being and that employees who receive little or no social support from their peers feel the negative effects of a physically dangerous working condition even more acutely.     

Equity or Efficiency? Explaining Public Officials' Values

This article analyzes the positions of top public officials on an equity‐efficiency trade‐off and the determinants of those positions. It uses data from a survey across 14 European countries. The results show that differences in public officials' positions on equity‐efficiency are related to the context in which they work and to their personal background. Officials at the top of the hierarchy and those with a business or economics education are more oriented toward efficiency. Additionally, results show important differences associated with country administrative culture, including a stronger equity orientation in Scandinavian countries, and a stronger efficiency orientation in Southern European countries. The positions of public officials reflect those held by citizens in their country, confirming the contextualized nature of administrative values. This article contributes to understanding the determinants of public officials' dominant values.     

The long‐term development of organised business and its implications for corporatism: A cross‐national comparison of membership,activities and governing capacities of business interest associations, 1980–2003

Internationalisation of markets and the demise of Keynesianism have made business more independent of associational action. Membership density and ‘corporatist’ involvement in wage bargaining and public policy have declined only modestly, while the capacity to govern members has dwindled significantly. This development is driven by the way in which large firms and the state relate to business associations. Large firms still have a vital interest not only in associational action, but also in integrating their smaller counterparts. Stated‐based support for multi‐employer bargaining, as established in most countries, buttresses business associations. By equipping the associations with an encompassing grip on the labour market, this support prompts governments to involve them in public policy. Since encompassing labour market regulation enables the associations to impose negative externalities on unaffiliated businesses, it provides them with a strong selective incentive for membership. The significant decline of the associations' governing capacity emanates from pressures of their large members to reduce costs of association. The implications of this development for interest intermediation are twofold. Given the strong decay of union power, the resilience of corporatism strongly hinges on the continued strength of organised business and on its state‐sponsored engagement in bargaining. At the same time, leeway for compromising has been restrained by the significant decline in the governing capacity of organised business. This decline echoes an ever‐growing predominance of large firms in business associations, while economic internationalisation exacerbates interest conflicts between larger and smaller firms. To the extent that this configuration of interest and power weakens the ability of business associations to integrate the mass of small firms, it develops into the new Achilles heel of corporatism.     

Regional Corporate Spawning and the Role of Homegrown Companies

This paper presents the results and policy implications of a study that examined the spawning of founders who had previously been employed at large corporations. We found that spawning of founders is positively associated with the parent companies' productivity, innovativeness, and headquarter location. Furthermore, we found that the spin‐off per employee rate is higher in smaller establishments. We also found that the local entrepreneurial culture is significant in explaining local spawning of founders. Finally, we present new empirical evidence on the crucial role of successful homegrown companies in regional cluster development. More specifically, we found that the existence of successful homegrown companies is significantly correlated with the level of the regional entrepreneurial activity. This finding is consistent with the finding of many cluster development case studies. Thus, we argue that successful homegrown companies have a unique role in cluster development. This role can seldom be replaced by nonhomegrown companies. This is related to the notion that prior to the development of an entrepreneurial cluster, some intangible precondition should be realized such as the appearance of local role models and a shift toward a more entrepreneurial culture. In a more general perspective, these results support the notion that knowledge‐based regional development is a complex process that requires a long‐term and continuously adjusting supporting policy rather than being based mainly on attracting established companies' R&D centers to the region.     

The four Ps of corporate political activity: a framework for environmental analysis and corporate action

• In this paper, I propose a new integrated framework which may be used to conduct a thorough analysis of a firm's political environment. The four steps of the methodology include the problem (how a political problem emerges and can be shaped by actors), the procedure (the public decision‐making procedure), the policies (relevant public policies currently implemented) and the players (including policy‐makers as well as participants in the political debate). Together, they form what I call the ‘Four Ps of corporate political activity’.
• This framework can serve not only for environmental analysis and monitoring, but also to improve the effectiveness of a firm's attempts in the field of political influence, through actions such as arena selection, issue framing, the use of procedural opportunities, proactive negotiation of a compromise or gate‐keeping the political arena.

Copyright © 2009 John Wiley & Sons, Ltd.     

Liberal Market Economies,Business, and Political Finance: Britain under New Labour

The extent and nature of business financing of parties is an important feature of political finance. Britain's transparent and permissive regulatory system provides an excellent opportunity to study business financing of parties. Business donations have been very important to the Conservative party over the last decade, and of only marginal importance to Labour. Unlike other Conservative contributors, business donors are more likely to contribute when the party is popular. In contrast to the previous period of Conservative government, the biggest British businesses tended to abstain from political finance under New Labour. However, their bias towards the Conservatives is affected by the party's popularity and the closeness of an election. Britain shares the political importance of business financing of parties and its mixture of ideological and pragmatic motivations with other liberal market economies. However, in Britain the bias towards the right is much stronger and the role of big business more marginal.     

Management of Australian Water Utilities: The Significance of Transactional and Transformational Leadership

What organisational factor has the most significant impact on the management of water utilities? This article seeks the views of middle managers in several water utilities across four Australian states to address this question. It also examines their views of leadership in their organisation. It draws upon Bass's full‐range leadership theory to examine their views on three models of leadership: transactional leadership, transformational leadership, and a combination of both transactional and transformational leadership. The respondents identify leadership as the most critical enabling factor for the effective management of water utilities. They believe that effective leadership requires a mix of transactional and transformational leadership skills. They state that their supervisor's leadership skills are below their expectation of an effective leader. These leadership issues are discussed in the article.     

The impact of downsizing on the corporate reputation for social performance

This paper investigates the impact of downsizing on a firm's reputation for corporate social performance (RCSP). Drawing on the downsizing, corporate reputation and social responsibility literatures, a number of hypotheses concerning the impact of downsizing, and particularly the types of downsizing, on a firm's reputation for corporate social performance are developed and empirically tested. The main findings of this study are that, while downsizing seems to have a negative impact on the firm's RCSP, when one takes into account the kind of managerial action that led to downsizing (layoffs and/or divestitures), this impact differs between the two stakeholder groups, industry executives and financial analysts, which were investigated. This study also found that a high financial performance prior to downsizing led to a greater negative impact on the firm's RCSP. Copyright © 2004 Henry Stewart Publications     

State Tax and Expenditure Limitations,Business Climate,and Economic Performance

The influence of state‐level tax and expenditure limitations on economic performance within the framework of the state's business climate is examined using a family of parametric and nonparametric tests of subsample equivalency. An index of tax and expenditure limitation strength or restrictiveness developed by Poulson is used to test for patterns in 84 separate measures of economic performance, business vitality, and development capacity. In general, we find no evidence that tax and expenditure limitations are associated with higher levels of economic performance or business climate. There is limited evidence that tax and expenditure limitations are associated with a poorer business climate and lower economic performance in some cases.     

中小企业企业家导向的影响因素研究

企业家导向反映了企业对机会的识别和利用能力,是中小企业成长的重要影响因素.主要研究了我国中小企业企业家导向影响因素的识别及其作用机理.首先,通过对企业家导向的内涵和影响因素相关研究的回顾,提出了包含"机会-资源-企业异质性"三因素的中小企业企业家导向影响因素的分析框架.其中企业异质性是中小企业企业家导向形成的基础因素,企业家导向的强度受到机会丰富性和资源充足性的作用和影响.其次,通过对我国东北地区235家中小企业的问卷调研,应用方差分析及建立结构方程模型,对文中提出的中小企业企业家导向的影响因素进行识别,并对影响因素模型进行验证.最后,对企业家导向影响因素的作用机理进行说明.构建并验证了中小企业企业家导向影响因素的分析模型,指出企业家在权、责、利上的一致性和自主性会提升中小企业的企业家导向;丰富的企业家经验、充足的金融资源是中小企业企业家导向提升的重要推动力;稳定的经营环境也会强化我国中小企业的企业家导向.     

Where Have All the Ministers Gone?

The relationship between ministers and public servants has been a longstanding topic among students of Australian public administration. Recent debate has centred on issues of supposed politicisation and excessive responsiveness in the Australian Public Service (APS), caused, in part, by the weakened tenure of department heads (secretaries). The recent Moran report has little to say on this relationship. It endorses changes to the appointment processes for secretaries which are presumably designed to strengthen secretaries’ independence from their political masters. It adopts a view of citizen‐centred service and strategic leadership that appears to marginalise ministers. Its approach to public sector leadership is taken from international management theory that works well in a business context and in the United States (US) government system. It is less well‐suited to Westminster‐style systems.