The Presidential Address to the Liverpool Engineering Society by Mr. Farthing (the salient points of which are reproduced in this issue) has particular bearing upon lubrication…
Abstract
The Presidential Address to the Liverpool Engineering Society by Mr. Farthing (the salient points of which are reproduced in this issue) has particular bearing upon lubrication and especially on young lubrication engineers. Mr. Farthing stressed the very wide field open to young engineers and the difficulties associated with training in order to cover as wide a field as may be necessary. It is usually so important to gain a wide knowledge before one can specialise and this is certainly the case with lubrication engineers. One cannot begin to fully appreciate the intricacies of a lubrication system with all its accessory components lubricating and guarding, for example, a large motive power plant or rolling mill, until one has more than a mere working knowledge of the plant itself, the duties it must perform, how it performs them and the snags that arise which might be overcome by correct lubrication. In view of the fact that lubrication systems are just as important in a textile mill as in a power station or a large brick works, the almost impossible‐to‐achieve‐range of knowledge that would simplify the work of a lubrication engineer is very obvious. Fortunately, lubricating principles apply to most cases and knowing how to apply one's knowledge from basic principles is the key to success in this difficult profession.
Torben Juul Andersen and Johanna Sax
Strategic adaptation in complex environments with frequent changes must balance the search for innovative opportunistic ventures and conscious pursuit to achieve established goals…
Abstract
Strategic adaptation in complex environments with frequent changes must balance the search for innovative opportunistic ventures and conscious pursuit to achieve established goals and outcomes. This creates a tension between attempted efficiency gains from tight strategic controls that avoid diversion of corporate resources and the facilitation of dispersed initiatives in search for business opportunities. To assess this conundrum, the authors present an interactive strategic control model that combines planning and participative strategy-making with interactive control processes. This combination of management practices arguably creates an adaptive system that drives the upside performance outcomes from a guided adaptation of opportunistic insights. Various hypotheses are developed and tested based on survey data from among the 500 largest firms in Denmark. The results suggest a direct relationship between interactive controls, strategic planning, and participative leadership on upside performance outcomes. Moreover, the positive effect from interactive controls on the upside potential is enhanced by participative decisions.
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Sang Hoon Han, Kaifeng Jiang and Jaideep Anand
This chapter discusses how the real options theory can be useful for understanding the adoption of human resources management (HRM) practices. The authors review how the real…
Abstract
This chapter discusses how the real options theory can be useful for understanding the adoption of human resources management (HRM) practices. The authors review how the real options theory has provided insights into the processes through which firms manage uncertainties involved in the adoption of HRM practices. The authors offer propositions for future HRM research from the real options perspective. The authors contend that analyzing HRM practice adoptions through the lens of real options theory can enhance our understanding of the mechanisms through which firms choose which HRM practices to adopt and how they adjust the timing, scale, and methods of investment in these practices. Specifically, the authors suggest that differences in information relevant to valuation of HRM options are the source of distinct choices of HRM options across firms. Finally, the authors propose advancing knowledge on HRM practice adoptions by using a portfolio of options approach, as well as considering factors like competitors, path dependence, and switching options.
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The following notes from Mr. Tong deal with points concerning the maintanance and lubrication of air compressors and are the result of many years practical experience in…
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The following notes from Mr. Tong deal with points concerning the maintanance and lubrication of air compressors and are the result of many years practical experience in maintaining these units in South Africa, and frequently under conditions not conducive to economical running. His plea is for British machine and engine manufacturers to more readily appreciate the difficulties of running their plant in Africa and such countries where they are usually in the charge of an uneducated native. He believes that much could be done to avoid errors if our designers gave these points attention when supplying machines for use in these remote districts.
Today, long-term success requires firms to sense changes in their environments early and react efficiently to them. Increasing middle managers’ participation in decision-making…
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Today, long-term success requires firms to sense changes in their environments early and react efficiently to them. Increasing middle managers’ participation in decision-making about market-related and product-related questions has been suggested as one way of enhancing this strategic responsiveness; abandoning formal planning, such as annual budgets, has been another. Yet, empirical evidence on the matter is scarce and conflicting. Drawing on data from Denmark’s 500 largest firms, we show that participation of middle managers in decision-making about new products and markets to serve, in-deed, increases firms’ strategic responsiveness as assessed by a reduction in firms’ downside risk. However, this effect is not a direct one. Nor does it interact positively or negatively with the emphasis put on formal planning as submitted in literature. Our evidence suggests that emphasis on planning mediates the relation between stronger participation of middle managers in decision-making and the increase in firms’ strategic responsiveness. This has implications for ongoing theory building and practice.
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Claus Højmark Jensen and Thomas Borup Kristensen
This paper aims to extend the understanding of how real options reasoning (ROR) is associated with downside risk and how a firm’s portfolio (explore and exploit) of investment…
Abstract
Purpose
This paper aims to extend the understanding of how real options reasoning (ROR) is associated with downside risk and how a firm’s portfolio (explore and exploit) of investment activities affects managers’ ability to effectively apply ROR in relation to downside risk.
Design/methodology/approach
The survey method is used. It is applied to a population of Danish firms, which in 2018 had more than 100 employees. The chief financial officer was the target respondent.
Findings
This study finds that a higher level of ROR is associated with lower levels of downside risk. ROR’s association with lower levels of the downside risk is also moderated by the level of relative exploration orientation in a negative direction.
Originality/value
The field of ROR research on downside risk and portfolio subadditivity has been dominated by research focused on multinationality. This paper extends extant literature on ROR by studying ROR as a multidimensional construct of firm action, which is associated with lower levels of downside risk, also when studied outside of a multinationality setting. This is the case when ROR is implemented as a complete system. This paper also applies a framework of exploitation and exploration to show that findings on subadditivity in options portfolios caused by asset correlations extend outside the scope of multinationality and into one of product/service innovation.
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The purpose of this paper is to explore how multinationality affects multinational companies’ (MNCs) downside risk and the moderate effects of ownership structure in the setting…
Abstract
Purpose
The purpose of this paper is to explore how multinationality affects multinational companies’ (MNCs) downside risk and the moderate effects of ownership structure in the setting of emerging markets based on Chinese publicly traded manufacturing MNCs.
Design/methodology/approach
The author derives hypotheses based on real options theory and agency theory, and tests hypotheses by using Tobit model and a unique data set of Chinese A-shared publicly traded manufacturing MNCs in the period of 2010–2016.
Findings
The empirical results suggest that multinationality is positively related to downside risk and this effect is subjected to ownership structure for firms in emerging markets. In particular, multinationality of MNCs with a high level of ownership concentration, managerial ownership and institutional ownership is more likely to reduce downside risk.
Practical implications
The main conclusion of this paper highlights the importance of ownership structure of MNCs in explaining the real options value of multinationality, and conveys to owners of MNCs in China and other emerging markets the need to strengthen firms’ governance if they want to maximize the benefits of multinational operations.
Originality/value
This study extends existing studies by taking ownership structure into consideration and highlighting the importance of agency problem in the examination of multinationality and downside risk, which provides a potential explanation for previous mixed evidence. This study also provides new evidence for the relationship between multinationality and downside risk by using a unique sample from China, an emerging market country.
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The South African Board Mill at Umgeni is situated about five miles from Durban, on the banks of the Umgeni river. It was formed by the Stafford Mayer group of companies in 1937…
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The South African Board Mill at Umgeni is situated about five miles from Durban, on the banks of the Umgeni river. It was formed by the Stafford Mayer group of companies in 1937, and manufacture of board from waste paper commenced in 1930. This was the first mill of its kind in South Africa, and as could be expected, various troubles were experienced at the beginning, until the arrival of skilled paper technicians from England. The board manufactured is cardboard ranging in thickness from .008” or .040” to .25” when laminated. The plant used is similar to that used for paper making.
DURING several years' work with engines in various parts of the world, it has been obvious to the writer that the causes of many troubles which come to the man in charge of the…
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DURING several years' work with engines in various parts of the world, it has been obvious to the writer that the causes of many troubles which come to the man in charge of the engine are so elementary that it is amazing that the makers ever produced such items. A few examples are given below, with suggested improvements, and while each of these may seem of small importance, together they can cause serious inconvenience and should not be treated lightly.
Readers will remember previous contributions by Mr. Tong in which he tells of some of the difficulties he encounters in his work with engines in remote overseas stations, and the…
Abstract
Readers will remember previous contributions by Mr. Tong in which he tells of some of the difficulties he encounters in his work with engines in remote overseas stations, and the practical ways in which he overcomes them.