Yearly Archives: 2004

Management

Measurement equivalence and multisource ratings for non-managerial positions: Recommendations for research and practice.

Diefendorff, James M., Silverman, Stanley B., & Greguras, Gary J.
Journal of Business and Psychology Vol. 19, p. 399-425.

The present investigation applies a comprehensive sequence of confirmatory factor analysis tests (Vandenberg & Lance, 2000) to the examination of the measurement equivalence of self, peer, and supervisor ratings of non-managerial targets across several performance dimensions. Results indicate a high degree of measurement equivalence across rater sources and performance dimensions. The paper illustrates how this procedure can identify very specific areas of nonequivalence and how the complexity of a multisource feedback system may be represented using such procedures. Implications of these results and recommendations for both research and practice are offered.

Management

CEO succession planning: An emerging challenge for boards of directors

Biggs, Errol L.
Academy of Management Executive Vol. 18 Issue 1, p. 105-107

The article discusses the importance of chief executive officer (CEO) succession planning for corporate success. In a recent survey of public-corporation CEOs conducted by the National Association of Corporate Directors, CEO succession had risen to the second most important issue facing boards of directors. As in the past, one way to avoid the hassle of searching for a new CEO is to have the successor often be an internal candidate already identified and groomed to take over when the current CEO steps aside. The board’s role in succession planning comprises several tasks. Although the CEO is the central player in the process, the board should understand this is a joint duty and not one delegated solely to the CEO. Many organizations have found it is beneficial to go outside the organization to look for a new CEO. To minimize the disruption created when a CEO departs unexpectedly, an internal individual can be designated as the acting CEO. No two succession scenarios are identical and therefore a variety of possible conditions may confront the board as it faces the challenge. A primary internal candidate may thus need to be passed over as CEO-designate as part of a bargaining position or in deference to perceived equity with the other entity.

Entrepreneurship, Information Systems

The Rise and Fall of a Dot-Com: Lessons Learned from LivingCo

Scott, Judy E.
Annals of Cases on Information Technology Vol. 6, p. 1-21

LivingCo was founded with a vision of revolutionizing the U.S. furniture industry by exploiting technological opportunities. It won accolades for its innovative website and generated considerable consumer interest, becoming at one stage one of the most highly trafficked sites on the Internet. Oracle named LivingCo a poster child because it was one of the first e-tailers to successfully deploy their software in both the front and back ends of the business. Furthermore, industry analysts considered many of its strategic plans promising. However, LivingCo ran into problems coping with overspending, high traffic on its website, integrating its technology with its subsidiary, suppliers who were wary of channel conflict and customers, who were, in general, slow to adopt the new way of shopping for furniture

Economics

THE "LAW OF ONE PRICE" IN 1901

Eckard, F. Woodrow
Economic Inquiry Vol. 42 Issue 1, p. 101-110

Price dispersion in 1901 is analyzed using a unique U.S. government survey yielding retail prices for four products at more than 1500 stores nationwide. Three of these products are still sold today, allowing comparisons based on modern survey data. Despite the introduction of significant search cost-reducing technology during the intervening century, dispersion appears to be lower in 1901.

Accounting

Debiasing Balanced Scorecard Evaluations

Roberts, Michael L., Albright, Thomas L. and Hibbets, Aleecia R.
Behavioral Research in Accounting, Vol. 16, Issue 1, p. 75-88

Lipe and Salterio (2000) found that superiors disregarded half of the information when using a Balanced Scorecard to evaluate the performance of two divisional managers. Only common measures affected the superiors’ holistic evaluations, defeating the purpose of the Balanced Scorecard. Our study examines whether disaggregating the Balanced Scorecard results in evaluations consistent with the intent of the Balanced Scorecard approach. Results indicate the disaggregated strategy allows superiors to utilize unique as well as common measures, thus overcoming the common-measures bias. In addition, we find Balanced Scorecard performance evaluations explain more than half the variation in subsequent compensation decisions.