This paper investigates the effect of state-society relations on the industrially-related growth paths of developed countries.
Abstract
Purpose
This paper investigates the effect of state-society relations on the industrially-related growth paths of developed countries.
Design/methodology/approach
It introduces a novel theoretical framework, the state-business-labor relations (SBLR) framework, where four main actors are identified: the state, big businesspersons or tycoons, owners and managers of small and medium enterprises (SMEs) or Entrepreneurs and labor. Different SBLR categories or modes are introduced depending on levels of coordination and power relations between the studied actors. The paper then investigates how these SBLR modes, through adopting various policies targeting the industrial sector, lead to different growth paths. Rather than focusing only on economic growth, this research regards a growth path as a matrix of the performance in long-run growth and equality of distribution.
Findings
Using regression analysis and statistical data, the results suggest that the Co-Balanced mode, having higher levels of coordination and lower favoritism, leads to the best growth path among the four introduced modes, especially with its emphasis on high levels of venture capital availability and easiness of starting business. while the Lib-Capture mode, characterized by lower coordination and higher favoritism, seems to have the worst growth path and the best implemented policy for this mode is suggested to be high profit taxes that seem to counter the negative impact of the existing high levels of favoritism.
Research limitations/implications
Despite the important findings that this research has reached, this paper is mainly meant to open a further investigation into this topic and open this dimension that the research on VoC and political economy have under-researched. A deeper investigation of SBLR typologies that could only be possible by having richer datasets with more data on coordination for the whole world, rather than only the advanced economies, would further our understanding of the dynamics that shape the growth paths of different countries of the world.
Practical implications
To realize the best industrial growth path, fighting favoritism should be an important objective. The negative impact of favoritism on innovation could not be disregarded in the eve of the fourth industrial revolution, where innovation is increasingly pivotal to future industrial development. Actively engaging societal groups in the policymaking process is important in addressing their concerns and balancing them at the same time. This should lead to the double benefit of formulating better policies that should foster growth as well as provide better distribution of this growth. High levels of coordination should help in realizing this objective. Yet, this could only be possible if societal groups are free to associate and aggregate their power and when there are means of preventing one actor from gaining more favorite treatment and exclusive influence over policymakers. The presence of both powerful and broadly represented business associations and labor unions and the existence of a government interested in coordinating their efforts-rather than letting itself be controlled by one group at the expense of the others-should help in the realization of the best growth path. Thus, institutional reform that empowers societal groups and enables them to defend their interests as well as fights all forms of corruption should lead to the realization of a more prosperous and equitable industrial development, with the “re-industrialization” of the developed world being no exception. The technological and social challenges of intensive automation and digitalization accompanying the fourth industrial revolution make the envisaged institutional reform more urgent.
Originality/value
This paper is introducing a novel theoretical framework for studying the effect of state-society relations, particularly SBLR, on the industrial growth paths of developed countries. It integrates three important bodies of literature in order to build a more comprehensive understanding of the dynamics of state-society relations and their economic consequences. These are the Varieties of Capitalism (VoC), State-Business Relations (SBR) and Industrial Relations. The SBLR framework differentiates between tycoons and entrepreneurs, an important distinction that often goes unnoticed. Different SBLR categories or modes are introduced, depending on levels of coordination and power relations between the actors. It is proposed in this research that the effect on growth paths goes beyond the simple dichotomy between CMEs and LMEs usually present in the literature of VoC and that power relations provide an essential complementary dimension in explaining this causality.
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Saroj Kumar Pani and Madhusmita Tripathy
This paper explains why some firms manage to capture disproportionate value from their network of relationships, leading to superior performance. The paper examines how a firm's…
Abstract
Purpose
This paper explains why some firms manage to capture disproportionate value from their network of relationships, leading to superior performance. The paper examines how a firm's dependencies affect its value appropriation potential (VAP) in economic networks.
Design/methodology/approach
The paper follows the axiomatic method and the embeddedness perspective of firms to develop an index called nodal power, which captures the power that accrues to a firm in exchange-based economic networks. Thereafter, using the formal method and simulation, it shows nodal power reflects a firm's VAP in economic networks.
Findings
The study analysis and findings prove that a firm's dyadic level exchange relations and the embedded network structure determine its VAP by affecting the nodal power. A firm with lesser nodal power is likely to appropriate less value from its relations even if it equally contributes to the value creation. This finding explains how the structural and relational characteristics of a firm's network enable disproportionate value appropriation.
Practical implications
Nodal power furthers the scope of analyzing firms' economic relationships and changing power equations in dynamic networks. It can help firms build optimal strategic networks and manage the portfolio of relationships by predicting the impact of changing relations on firms' VAP.
Originality/value
The paper's original contribution is to explain, through formal analysis, why and how the structure and nature of relations of firms affect their VAP. The paper also formalizes the power-dependence principle through a dependency-based index called nodal power and uses it to show how interfirm dependencies are key to value appropriation.
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Rebecca Jean Emigh and Dylan Riley
In this chapter, we review the historical development of elite theory, and then we propose a way forward beyond it. Elite theory emerged as a critique of democracy in the late…
Abstract
In this chapter, we review the historical development of elite theory, and then we propose a way forward beyond it. Elite theory emerged as a critique of democracy in the late 19th century. Although it used historical materials illustratively, it tended to be ahistorical theoretically because its primary aim was to demonstrate the perdurance of elites even in conditions of mass suffrage. Lachmann was the first scholar to develop elite theory as a truly historical and explanatory framework by combining it with elements of Marxism. Even Lachmann's theory, however, remained inadequate because it did not rest on a fully articulated theory of power. In this introduction, we suggest a “relational power theory” as a remedy to this situation, and we use it to formulate a general heuristic for the study of elites, nonelites, and their interrelationships. To illustrate its utility, we show how it can illuminate the chapters in this volume (though they were not necessarily written for these purposes).
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Lars Mjøset, Roel Meijer, Nils Butenschøn and Kristian Berg Harpviken
This study employs Stein Rokkan's methodological approach to analyse state formation in the Greater Middle East. It develops a conceptual framework distinguishing colonial…
Abstract
This study employs Stein Rokkan's methodological approach to analyse state formation in the Greater Middle East. It develops a conceptual framework distinguishing colonial, populist and democratic pacts, suitable for analysis of state formation and nation-building through to the present period. The framework relies on historical institutionalism. The methodology, however, is Rokkan's. The initial conceptual analysis also specifies differences between European and the Middle Eastern state formation processes. It is followed by a brief and selective discussion of historical preconditions. Next, the method of plotting singular cases into conceptual-typological maps is applied to 20 cases in the Greater Middle East (including Afghanistan, Iran and Turkey). For reasons of space, the empirical analysis is limited to the colonial period (1870s to the end of World War 1). Three typologies are combined into one conceptual-typological map of this period. The vertical left-hand axis provides a composite typology that clarifies cultural-territorial preconditions. The horizontal axis specifies transformations of the region's agrarian class structures since the mid-19th century reforms. The right-hand vertical axis provides a four-layered typology of processes of external intervention. A final section presents selected comparative case reconstructions. To the authors' knowledge, this is the first time such a Rokkan-style conceptual-typological map has been constructed for a non-European region.
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The paper covers the topic of power strategies between actors and the interplay between the service ecosystem and the actor(s), and vice versa. The paper addresses the lack of…
Abstract
Purpose
The paper covers the topic of power strategies between actors and the interplay between the service ecosystem and the actor(s), and vice versa. The paper addresses the lack of conceptual development concerning power considerations beyond dyadic, rigid and role-based models found in general marketing literature. Further, the paper opens the area of power relationships, using the service ecosystem as conceptual framework.
Design/methodology/approach
The paper has a systemic and sociological view on service-ecosystems using mainly Giddens' structuration theory. Service-dominant logic literature from 2004 to 2021 is systematically reviewed for power issues and qualitatively analyzed. Mayring's step model of, firstly, inductive and, secondly, deductive category development is applied. Subcategories were identified, subsumed and finally grouped into five categories to increase the level of abstraction.
Findings
The article investigates power considerations and enables marketers to create power through (1) imbalance, to find strategies and counterstrategies for (2) actor's behavior, to understand the (3) actor's embeddedness within a service ecosystem and its dynamic nature, to learn about (4) institutions and actor's institutional work. A set of seven propositions is presented for the conceptualization of power strategies in a service ecosystem.
Research limitations/implications
The consideration of power on different levels supports both the zooming-in and zooming-out to observe and understand the power phenomena in a service ecosystem. Seven propositions about episodic as well as systemic power relations are presented. Power is conceptualized in service ecosystem as transformative capability of an actor to intervene on institutions and in some way alter them, recognizing that power relations are co-created, dynamic and context-dependent.
Practical implications
The article recognizes different levels (micro-meso-macro) of power considerations and helps practitioners and marketers to create power through (1) imbalance, find strategies and counterstrategies for (2) actor's behavior, understand the (3) actor's embeddedness within a service ecosystem and its dynamic nature, learn about (4) institutions and actor's institutional work. This enables managers to find an appropriate choice of action in their specific context to transform the service ecosystem(s) they are embedded in.
Social implications
As all social systems are power systems, a service ecosystem can only be fully understood by integrating the elementary concept of power. As such, power considerations within actor strategies and the service ecosystem are relevant to improve the understanding of transformation of the service ecosystem. Power, in the sense of the transformative capability of actors, changes the social and material world.
Originality/value
Power issues are important to understand the “hows” of resource integration in service ecosystems and its transformation or stability.
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Stewart Clegg, Torgeir Skyttermoen and Anne Live Vaagaasar
The paper discusses sustainability, in terms of creating purposive social value, which is increasingly an inherent characteristic of project leading and doing. Consequently…
Abstract
Purpose
The paper discusses sustainability, in terms of creating purposive social value, which is increasingly an inherent characteristic of project leading and doing. Consequently, project scholars are currently grappling with what purposive social value creation means to initiation and execution of projects.
Design/methodology/approach
In line with recent development we offer reflections on the empowering nature of leadership enabling social value, its underlying forms of power and the dilemmas involved. Our theorizing is based on recent developments in literature on the value of sustainability in the context of projects, combined with literature on project leadership and reflections on the processes of power.
Findings
Based on a process ontology, we suggest that leadership for purposive social value creation calls for a rethinking of leadership as an inclusive patterning of actions, making it relational, boundary spanning and socialized in nature and essentially entailing a politics of representation.
Research limitations/implications
The paper is conceptual, so it has all the limitations of any conceptual paper that innovates a new field of inquiry. It is a not a hypothetic-deductively structured paper but is abductive in nature, combining disparate literary studies in a conceptual framework for further inquiry.
Practical implications
The legitimacy of leadership for purposive social value does not reside in the singular formal position of a project leader but in its broader vesting and representation.
Social implications
The paper calls for a rethinking of the nature of project leadership power relations, processes oriented toward the achievement of purposive social value and representation of interests.
Originality/value
This paper fulfills an identified need to study how purposive social value can be enabled by socialized and distributed project leadership that represents a broad-based and coherent conception of interests.
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The purpose of the article is to outline the insights provided by Alan Fox in Man Mismanagement in relation to the rise of the New Right political economy and the spread of…
Abstract
Purpose
The purpose of the article is to outline the insights provided by Alan Fox in Man Mismanagement in relation to the rise of the New Right political economy and the spread of unitarist managerialism. The article assesses the contemporary work and employment relations implications of mismanagement arising from a “second wave” of the New Right ideology from 2010 in the UK.
Design/methodology/approach
Responding to the Special Issue on Alan Fox, the article focuses on Alan Fox's book Man Mismanagement, considering industrial relations developments arising between the 1st (1974b) and 2nd (1985) editions relating to the political rise of the New Right. It reviews various literature that illustrates the contemporary IR relevance of the book and Fox's insights.
Findings
The New Right’s ideology has further fragmented work, disjointed labour rights and undermined collective industrial relations institutions, and macho mismanagement praxis is even more commonplace, compared to when Fox wrote Man Mismanagement. The stripping away of the institutional architecture of IR renders the renewal of pluralist praxis, like collective bargaining and other forms of joint regulation of work, a formidable task.
Originality/value
The value of the article relates to the identification of dramatic historical industrial relations events and change in the UK in Alan Fox's book Man Mismanagement, most notably relating to the rise to power of the Thatcherite New Right in 1979. Originality is evidenced by the authors’ drawing on Fox's ideas and assessing the implications of the “second wave” of the New Right in the contemporary industrial relations (IR) context of the 2020s under the conceptual themes of fragmented work, disjointed labour rights and undermined collectivism.
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Lisa Tam, Hyelim Lee and Jeong-Nam Kim
Although belief in conspiracy theories has been researched since the 1970s, specific research on conspiratorial thinking in the workplace is scarce. Conspiratorial thinking could…
Abstract
Purpose
Although belief in conspiracy theories has been researched since the 1970s, specific research on conspiratorial thinking in the workplace is scarce. Conspiratorial thinking could be fostered among employees in workplaces because of unequal power relations resulting from the organizational hierarchy. This study examines workplace conspiracy attribution (WCA) as employees’ attribution of problematic events in the workplace as being plotted by powerful actors within their organizations and tests its antecedents and consequences.
Design/methodology/approach
A survey dataset collected from employees in South Korea (N = 600) was used. This study tested three variables (i.e. two-way communication, employee–organization relationship quality, and perceived ethical orientation) as antecedent conditions of WCA and two outcome variables (i.e. turnover intention and whistleblowing potential) as consequences.
Findings
Perceived ethical orientation mediates the relationship between two-way communication and WCA. WCA was found to be positively associated with turnover intention and whistleblowing potential.
Originality/value
This study adopts a public relations lens to understand the significant roles of WCA in reducing turnover intention and whistleblowing potential. It expands existing knowledge of the significance of power and power disparities in organizations.
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Thanduxolo Elford Fana and Jane Goudge
In this paper, the authors examine the strategies used to reduce labour costs in three public hospitals in South Africa, which were effective and why. In the democratic era, after…
Abstract
Purpose
In this paper, the authors examine the strategies used to reduce labour costs in three public hospitals in South Africa, which were effective and why. In the democratic era, after the revelations of large-scale corruption, the authors ask whether their case studies provide lessons for how public service institutions might re-make themselves, under circumstances of austerity.
Design/methodology/approach
A comparative qualitative case study approach, collecting data using a combination of interviews with managers, focus group discussions and interviews with shop stewards and staff was used.
Findings
Management in two hospitals relied on their financial power, divisions between unions and employees' loyalty. They lacked the insight to manage different actors, and their efforts to outsource services and draw on the Extended Public Works Program failed. They failed to support staff when working beyond their scope of practice, reducing employees' willingness to take on extra responsibilities. In the remaining hospital, while previous management had been removed due to protests by the unions, the new CEO provided stability and union–management relations were collaborative. Her legitimate power enabled unions and management to agree on appropriate cost cutting strategies.
Originality/value
Finding an appropriate balance between the new reality of reduced financial resources and the needs of staff and patients, requires competent unions and management, transparency and trust to develop legitimate power; managing in an authoritarian manner, without legitimate power, reduces organisational capacity. Ensuring a fair and orderly process to replace ineffective management is key, while South Africa grows cohorts of competent managers and builds managerial experience.
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Peng Huang and Yue Lu
The purpose of the study is to examine the relation between board structure and firm performance variability in an international setting. The authors further explore the effect of…
Abstract
Purpose
The purpose of the study is to examine the relation between board structure and firm performance variability in an international setting. The authors further explore the effect of national culture in shaping such relations.
Design/methodology/approach
The authors’ international sample contains 4,911 firms across 49 countries over the 2002–2017 period. The authors use national culture values on individualism and power distance developed by Hofstede (1980, 2001, 2011). The authors focus on within-firm, over-time variability of firm performance and estimate multivariate linear regressions with fixed effects. The authors address the endogeneity concern using the instrumental variable approach, and the authors’ results are robust to alternative measures of variables and different subsamples.
Findings
The authors find that firms with larger board size, greater board independence and less powerful CEOs have less variable performance. Individualism has a magnifying effect while power distance has a mitigating effect in shaping such relations.
Originality/value
To the best of the authors’ knowledge, this study is among the first to answer the call of Adams, Hermalin and Weisbach (2010) for research on corporate boards in an international setting. It is also one of the few studies which examine the variability of firm performance, while the majority of existing literature focuses on the level of firm performance. Most importantly, to the best of the authors’ knowledge, this study is the first to explore the role of national culture in shaping boardroom interactions that affect the decision-making process of corporate boards, which, in turn, affects firm performance variability.