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All About E-Books: Uses, Issues, & Potential
No full textThis Faculty Development Lunch and Learn explores the definition and attributes of E-Books, their history and current trends, looks at E-Books in academic libraries, and examines future possibilities and potential
The New-Age Workforce: Achieving Productive Retention of Retirement Eligible Employees (REE) in an Aging Workforce
No full textThe baby boomer generational cohort is driving an aging population and an aging workforce. This demographic phenomenon is predicted to cause a labor shortage over the next several decades. Also of concern is braindrain,
or the loss of valuable knowledge as a large swath of experienced workers leave the workforce. Therefore, organizations need to identify what factors play a role in motivating REEs to remain in the workforce and delay
retirement while maintaining labor productivity.The New-Age Workforce: Achieving Productive Retention of Retirement Eligible Employees (REE) in an Aging Workforce
The Problem for Practitioners
Findings #1
The baby boomer generational cohort is
driving an aging population and an aging
workforce. This demographic phenomenon is
predicted to cause a labor shortage over the
next several decades. Also of concern is brain-drain,
or the loss of valuable knowledge as a
large swath of experienced workers leave the
workforce. Therefore, organizations need to
identify what factors play a role in motivating
REEs to remain in the workforce and delay
retirement while maintaining labor productivity.
Data Analysis using NVivo10
JoAnne Koravos Dissertation Advisors: Dr. Thomas Mierzwa and Dr. Denise Breckon
Conceptual Model Prior to Systematic Review of the Literature
Evidence-based research using a systematic
review methodology and realist synthesis in
order to capture the mechanisms underpinning
the behavior of the REE triggered by various
contexts.
Research Question
What factors are associated with the
productive retention of retirement eligible
employees (REEs)?
Method & Results Implications for Management Practice
Practitioners who want to retain their REEs in
anticipation of a labor shortage, or the need to
avoid the loss of intellectual property, experience,
and skills, should create an environment of
organizational support and commitment; unless
special contexts are present (see Findings #3).
Some interventions, or programs, that should be
implemented to improve REE self-efficacy and
motivation to work longer and maintain
productivity are:
ü Job flexibility
ü Comprehensive benefits packages
ü Professional growth and development
ü Workplace accommodations
ü Training opportunities
ü Access to employment policies w/out
stigmatizing repercussions
Definition of REE
An employee of any age that due to his/her
individual circumstances is legally and financially
eligible for retirement and therefore is
contemplating retirement or beginning the
retirement process.
Guided by Research Question
Keyword search phrase derived from conceptual model
Results from electronic
database searches
after duplicates
(n = 419)
Results from
reference list
searching
(n = 2)
Additional articles
from
SME Feedback
(n = 1)
Iterative searches
during
synthesis phase
(n = 4)
Results from
Google Scholar
Alerts
(n = 1)
Studies generated from all searches (n = 427)
Results after inclusion/exclusion criteria (n = 53)
Results after abstract and full text screening (n = 45 )
Final results after Quality appraisala (n = 29)
29 studies moved into the realist synthesis phase
a Modified from three previously validated quality appraisal tools (Stoltz, Uden, & William, 2004; Parris and Peachey, 2012;
Wong et al., 2013, p. 9).
+
_
Ageabs)
Decision5
to5Retire
[Leave]
Decision5to5
Delay5
Retirement
[Stay]
Individual)Factors:!
• Moon!
• Job!Saon!
• Job!Performance!
• Organizarement!Policies,!
Laws!&!Regularement!
Eligible!
Age!
Family!
Health!
Financial!
Emorement!
Eligible!
Self7Efficacy!
Organiza
ECONOMIC!IMPACT!
_
+
(C1 )
(+O1 )
Retention
(M1 )
(I)
Sense of self-efficacy, well being, and value
to the org; socio-emotional needs are met
Organizational Support: Culture of
inclusion and organizational
commitment (C2 )
(+O2 )
Productivity
(M2 )
(I)
Perceived organizational support,
level of work centrality
! Job flexibility
! Comprehensive benefits packages
! Professional growth and development
! Workplace accommodations
! Access to employment policies
! Training opportunities
! Access to professional growth and
development opportunities
! Inclusion and diversity programs
Organizational Support
Findings #2 Findings #3
Thesis Statement: (CMO) Logic
It is hypothesized that – organizational programs and policies
that create an environment of organizational commitment and
support (C1) will motivate a retirement eligible employee to
remain in the workforce longer (O1) due to a positive sense of
self-efficacy (M1). The same sense of self-efficacy (M2) will have a
positive effect on the REEs job satisfaction, job performance and
level of productivity (O2). However, these relationships will be
negatively influenced by age-related attitudes, beliefs and
stereotypes within the workforce environment (C3)(M3), which
will result in the decision to retire from the workforce and/or
REE productivity will suffer (O3). In high stress job careers, such
as child social welfare caseworker (C4), increased organizational
commitment will cause the REE to experience low self-efficacy
as their sense of autonomy and experienced tenure in the job
are threatened (M4), resulting in work and job withdrawal, poor
retention and low productivity levels (O4).
Basic components of realist causal explanation: C = Context, M = Mechanism, O = Outcome (Pawson, 2006, p. 22 ); I = Intervention (Denyer, Tranfield, & Ernst van Aken, 2008, p. 397)
(C3 )
(-O3 )
Low productivity;
poor retention
(M3 )
(I)
Low sense of self-efficacy; perceived
organizational support is challenged
Unauthentic organizational support, and/or Age-Related,
attitudes, beliefs, and stereotypes (AR-abs)
! Lack of training and development
opportunities
! Workers are excluded due to older age
! Decline due to age is not accommodated
! Limited access to employment policies and
benefits
(C4 )
(-O4 )
Low productivity
& poor retention
via work and job
withdrawal
(M4 )
(I)
Low self-efficacy; employee’s sense of
autonomy and tenure are challenged.
Organizational support within a high stress career job
(i.e. child social welfare)
! Increased organizational commitment via
training and development programs and
supervisor support, etc.
! Self-Selection – the older worker you have is
the one you want
The influence of national culture on the value creating ability of organizations combined from an international merger and acquisition
No full textInternational mergers and acquisitions (IMAs) have become an essential element of a global organization’s growth strategy, yet contemporary research found that somewhere between 70 and 90 % of all IMA’s failed to create the value that the acquirers expected to achieve. IMA planners and developers typically engaged in a rigorous due diligence assessment prior to entering into the IMA transaction, yet consideration of the effect that differences in national culture may have had on the value creating ability of the IMA were often overlooked. This dissertation systematically reviewed research examining over 5,100 IMAs and found the preponderance of the evidence suggested that these differences in national culture did contribute to value destruction. Differences in national culture were found to have a negative effect on a wide-range of business practices: the ability to innovate; the achievement of the value generating synergies often relied on by the acquirer to make the IMA transaction attractive; as well as the equity market capitalization of the acquirer. Examining this complicated problem through the lenses of Acculturation Theory, Resource Dependency Theory and the Resourced Based Theory of Alliances, this dissertation suggested an alternate model that may be useful in examining the role that national culture plays in IMA value creation.Running Head: NATIONAL CULTURE AND IMA VALUE CREATION
The influence of national culture on the value creating ability of organizations combined from an international merger and acquisition.
Joseph Allen Evans
A Dissertation
Submitted to the
Graduate Faculty
of University of Maryland University College
in Partial Fulfillment of
The Requirements for the Degree
of
Doctor of Management
2015
Dissertation Committee:
Kathleen F. Edwards, Ph.D.
James P. Gelatt, Ph.D.
NATIONAL CULTURE AND IMA VALUE CREATION
2
NATIONAL CULTURE AND IMA VALUE CREATION
3
ABSTRACT
International mergers and acquisitions (IMAs) have become an essential element of a global organization’s growth strategy, yet contemporary research found that somewhere between 70 and 90 % of all IMA’s failed to create the value that the acquirers expected to achieve. IMA planners and developers typically engaged in a rigorous due diligence assessment prior to entering into the IMA transaction, yet consideration of the effect that differences in national culture may have had on the value creating ability of the IMA were often overlooked. This dissertation systematically reviewed research examining over 5100 IMAs and found the preponderance of the evidence suggested that these differences in national culture did contribute to value destruction. Differences in national culture were found to have a negative effect on a wide-range of business practices: the ability to innovate; the achievement of the value generating synergies often relied on by the acquirer to make the IMA transaction attractive; as well as the equity market capitalization of the acquirer. Examining this complicated problem through the lenses of Acculturation Theory, Resource Dependency Theory and the Resourced Based Theory of Alliances, this dissertation suggested an alternate model that may be useful in examining the role that national culture plays in IMA value creation.
Keywords: National culture, international mergers and acquisitions, due diligence, synergy, value creation, innovation, international strategy.
NATIONAL CULTURE AND IMA VALUE CREATION
4
DEDICATION
This dissertation is dedicated to my parents, Christine and Charles, who I hold entirely responsible for developing my thirst for education and knowledge; and to my family for supporting me during this journey. Thank you Mom, Dad, Joy, Helen, Emma and Owen for all the understanding and accommodation you have extended to me.
NATIONAL CULTURE AND IMA VALUE CREATION
5
ACKNOWLEDGEMENTS
Many have contributed to my doctoral studies and dissertation and I would like to communicate to them my deep appreciation for their commitment to me. Not everyone that has had a positive contribution to my effort can be acknowledged within this short text, but I assure you that I have enjoyed our time together and received more from you that I could have possibly given. I’d like to begin by acknowledging the encouragement I have received from my professional colleagues and friends at Saab Technologies, with a special note of appreciation to Lars Bjerde, Dan-Åke Enstedt, Jonas Hjelm, and Michael Andersson. Your leadership and encouragement has been unwavering; I thank you very much.
Creating the learning environment that is absolutely essential for doctoral level studies and research requires the collection of an exceptional set of learned and experienced faculty dedicated to the transformation of their students. From this collection of outstanding faculty, I would like to specifically thank Dr. Dennis Winters, Dr. John Sherlock, Dr. Pearl Steinbuch and Dr. Tom Mierzwa for the challenge they have put me through. To my faculty committee, Dr. Kathleen Edwards and Dr. Jim Gelatt….Thank you. While Dr. Edwards was my primary faculty committee member, I know and deeply appreciate the commitment you have made to me, Jim, to work with me and provide me with sage advice to get my dissertation to be the best it could possibly be – Thank you. Dr. Edwards, Kathleen, from the first time we spoke I knew that the challenge of researching and writing a dissertation was achievable with you by my side. There have been challenges, sometimes I felt as if I was headed for the cliff, you knew how to push just enough to extract the very best that I had to offer, and then a little more, always with respect and giving me the confidence that I could do it. It is entirely insufficient to only utter these two NATIONAL CULTURE AND IMA VALUE CREATION
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words after all of the work we have completed together, all of your effort for my benefit. Thank you, Dr. Edwards.
To my original Cohort group that has made it to the finish line or nearing completion, thank you for being a wonderful group of friends and colleagues. Two from this group have become especially close to me, Mohamed Ezz, MD, DM and Ms. Wendy Washington, dearest friends for life we will always be.
My last acknowledgement is for my family. Working full-time and pursuing a doctoral degree left little time for my family, time I can never make up and will always regret missing. Thank you for allowing me to pursue this dream; I sincerely hope that somewhere deep down I have transferred to you my thirst for education, knowledge and life-long learning.
NATIONAL CULTURE AND IMA VALUE CREATION
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TABLE of CONTENTS
Abstract ...........................................................................................................................................3
Dedication .......................................................................................................................................4
Acknowledgement ...........................................................................................................................5
Table of Contents .............................................................................................................................7
List of Tables ................................................................................................................................12
List of Figures ...............................................................................................................................13
List of Appendices .........................................................................................................................14
CHAPTER 1: INTRODUCTION and OVERVIEW .....................................................................15
Statement and Significance of the Problem .............................................................................16
Culture .....................................................................................................................................17
Typologies of National Culture ................................................................................................19
Hofstede ...................................................................................................................................21
Hofstede and Bond ...................................................................................................................26
Trompenaars ..............................................................................................................................28
Project GLOBE ........................................................................................................................31
Cultural Distance .......................................................................................................................36
Cultural Intelligence ..................................................................................................................40
Value Creation and Synergy .....................................................................................................42
Value Creation ...........................................................................................................................42
Synergy development ................................................................................................................43
Quantitative Synergies ..............................................................................................................43
Qualitative Synergies ................................................................................................................45
Descriptors and Determinants of Synergy .................................................................................45
Synergistic Value ......................................................................................................................46
International Mergers and Acquisitions (IMA) Due Diligence .................................................48
National Cultural Due Diligence ...............................................................................................50
Theory ......................................................................................................................................51
Importance to Management ......................................................................................................53
Purpose of Dissertation .............................................................................................................53 NATIONAL CULTURE AND IMA VALUE CREATION
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Research Question .....................................................................................................................53
Propositions ...............................................................................................................................54
Key Definitions .........................................................................................................................54
Organization of the Dissertation ...............................................................................................55
CHAPTER 2: SYSTEMATIC REVIEW OF THE LITERATURE ............................................57
Introduction ...............................................................................................................................57
Organization of the Chapter .....................................................................................................58
Research Question .....................................................................................................................58
Systematic Review of the Literature ........................................................................................59
National Cultural Differences and IMA Performance Measures .............................................59
National Cultural Differences, Cultural Distance and Wealth Creation ..................................60
National Cultural Differences, Cultural Distance and IMA Longevity ...................................64
National Cultural Differences, Acculturation Stress, IMA Performance .................................66
National Cultural Differences, Cultural Distance and IMA Longevity ...................................70
National Cultural Differences and IMA Integration ................................................................72
National Cultural Differences, IMA Performance, Variation in Cultural
Distance and Long-Run versus Short-Run ................................................................................74
National Cultural Differences, Cultural Distance and IMA Performance,
Profitability, Market Share, Sales Volume and New Product
Development ...................................................................................................................77
National Cultural Differences and Innovation, Market Share, Manufacturing, Product
Development and Sales ..................................................................................................82
National Cultural Differences, Cultural Distance and Rate of Sales Growth ..........................83
National Cultural Differences and IMA Integration, Resource Sharing and
the Achievement of Synergies ........................................................................................87
National Cultural Differences and Product Development and
Manufacturing Management ..........................................................................................91
National Cultural Differences and Social Conflict and Knowledge Transfer ..........................96
National Cultural Differences and Managers' Creativity Promoting Values ...........................98
National Cultural Differences and Innovation .......................................................................102
National Cultural Differences, Cultural Distance and Innovation .........................................104 NATIONAL CULTURE AND IMA VALUE CREATION
9
National Cultural Differences and Synergy Creation .............................................................107
National Cultural Differences and Administrative Heritage ...................................................108
National Cultural Differences and Process Driven Synergy Model Integrating Organizational Theory, Human Resources, Strategy, Finance, Economics, Production and
Marketing ................................................................................................................113
National Cultural Differences and Total Quality Management (TQM) .................................117
National Cultural Differences and Gross Domestic Product (GDP), and the
Density of Project Management Skills ........................................................................121
National Cultural Differences, IMA Integration and Acculturation ......................................123
National Cultural Differences and Project Planning ..............................................................126
National Cultural Differences and Employee Retention ........................................................129
Differences and IMA Financial Outcomes, Ability to Generate Synergy .............................133
Theoretical Lenses ..................................................................................................................138
Acculturation Theory (AT) ...........................................................................................138
Resource Dependency Theory (RDT) ..........................................................................139
Resource Based Theory of Alliances (RBT) ................................................................140
Summary of Research Question and Propositions .................................................................141
Research Question .......................................................................................................141
Propositions ..................................................................................................................141
Summary of Chapter Two .......................................................................................................143
CHAPTER 3: CONCEPTUAL FRAMEWORK .......................................................................144
Introduction ............................................................................................................................144
Conceptual Framework and Graphical Analysis ....................................................................145
Integration of the Scholarship into the Framework ................................................................147
Graphical Analysis and Synthesis ..........................................................................................147
Resource Combination Strategy .............................................................................................148
Resource Dependency Theory ................................................................................................149
Due Diligence .........................................................................................................................150
National Culture Due Diligence .............................................................................................151
Acculturation Theory .............................................................................................................153
Resource Combination Outcome ............................................................................................154 NATIONAL CULTURE AND IMA VALUE CREATION
10
Resource Based Theory of Alliances .....................................................................................154
Synergy Realization and Value Creation ...............................................................................156
Summary of Chapter Three ....................................................................................................157
CHAPTER 4: RESEARCH METHODOLOGY AND APPROACH ........................................158
Introduction ............................................................................................................................158
Organization of the Chapter ...................................................................................................158
Discussion of the Theory and Practice of Evidence Based Research ....................................159
Evidence Based Research (EBR) .................................................................................159
Evidence Based Management (EBM) ..........................................................................160
Systematic Review of Extant Research Evidence ..................................................................162
Examination and Selection of the Research ...........................................................................163
Weight of Evidence.......................................................................................................163
Research Design .....................................................................................................................164
Development of an Acceptable Research Question and Propositions ...................................164
Research Question .......................................................................................................165
Propositions ..................................................................................................................165
Develop Search Strategy, Inclusion and Exclusion Criteria, and Quality Appraisal .............166
Identify Relevant Research Evidence for Evaluation ..............................................................167
Search strategy .......................................................................................................................167
Inclusion and Exclusion Strategy and Criteria .......................................................................168
Results of Search Strategy ......................................................................................................169
Quality Appraisal ....................................................................................................................170
Appraisal Tool Criteria ............................................................................................................172
Rating Scale ............................................................................................................................174
Analysis and Synthesis of the Selected Research ...................................................................175
Thematic Analysis and Synthesis ............................................................................................176
Discussion of the use of the Expert Panel as Evidence or Support ........................................177
Subject Matter Experts ............................................................................................................177
Summary of Chapter Four ......................................................................................................178
CHAPTER 5: ANALYSIS AND DISCUSSION ......................................................................179
Introduction to Chapter Five ..................................................................................................179 NATIONAL CULTURE AND IMA VALUE CREATION
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Organization of the Chapter ...................................................................................................179
Thematic Synthesis, Themes and Findings ............................................................................180
Thematic Synthe
Enterprise risk management at higher education institutions: How management concepts support its implementation
No full textHigher education institutions are under increased pressure from government agencies, the public, and members of the campus community to manage risks. Traditionally, risk management responsibility has been delegated to individual operating units. This approach lacks an overarching strategy for managing risks and is being supplanted by an approach gaining favor in higher education for strategically managing risks now termed enterprise risk management. As a senior leadership lead initiative, enterprise risk management provides a comprehensive strategy for managing risks. However, since existing models originate from the business sector they lack guidance for implementing the approach in a higher education environment. The focus of this study examines why higher education institutions would adopt an enterprise risk management strategy and how critical success factors influence its implementation.
The central thesis of this study is that management concepts drawn from theory can enhance the implementation of enterprise risk management in higher education. To test this thesis, a conceptual framework for enterprise risk management implementation was derived from a review of the theoretical literature on change management, decision making, and organizational learning. A systematic review methodology was employed to test the conceptual framework against findings from 55 research studies. Implications for practice include approaches for adopting enterprise risk management to improve organizational performance, clarifying its purpose, reflecting the culture of the institution in its design, assigning a program champion and cross-functional implementation team, assigning risk assessment methodologies based on the type of risk, and using an enterprise risk management approach to build organizational learning and resiliency. Theoretical implications include exploring how theories on change management, decisions making, and organizational learning can further extend research on this topic.ENTERPRISE RISK MANAGEMENT AT HIGHER EDUCATION INSTITUTIONS:
HOW MANAGEMENT CONCEPTS SUPPORT ITS IMPLEMENTATION
By
Steven Christopher Deck
Dissertation submitted to the Faculty of the Graduate School of the
University of Maryland University College, in partial fulfillment
of the requirements for the degree of
Doctor of Management
2015
Advisory Committee:
Dr. Thomas J. Mierzwa
Dr. Denise A. Breckon ii
© Copyright by
Steven Christopher Deck
2015
iii
iv
ABSTRACT
Title of Dissertation:
ENTERPRISE RISK MANAGEMENT AT HIGHER EDUCATION INSTITUTIONS:
HOW MANAGEMENT CONCEPTS SUPPORT ITS IMPLEMENTATION
Steven Christopher Deck, Doctor of Management, 2015
Dissertation Directed By:
Dr. Thomas J. Mierzwa and Dr. Denise A. Breckon, Doctor of Management
Higher education institutions are under increased pressure from government agencies, the public, and members of the campus community to manage risks. Traditionally, risk management responsibility has been delegated to individual operating units. This approach lacks an overarching strategy for managing risks and is being supplanted by an approach gaining favor in higher education for strategically managing risks now termed enterprise risk management. As a senior leadership lead initiative, enterprise risk management provides a comprehensive strategy for managing risks. However, since existing models originate from the business sector they lack guidance for implementing the approach in a higher education environment. The focus of this study examines why higher education institutions would adopt an enterprise risk management strategy and how critical success factors influence its implementation.
The central thesis of this study is that management concepts drawn from theory can enhance the implementation of enterprise risk management in higher education. To test this thesis, a conceptual framework for enterprise risk management implementation was derived from v
a review of the theoretical literature on change management, decision making, and organizational learning. A systematic review methodology was employed to test the conceptual framework against findings from 55 research studies. Implications for practice include approaches for adopting enterprise risk management to improve organizational performance, clarifying its purpose, reflecting the culture of the institution in its design, assigning a program champion and cross-functional implementation team, assigning risk assessment methodologies based on the type of risk, and using an enterprise risk management approach to build organizational learning and resiliency. Theoretical implications include exploring how theories on change management, decisions making, and organizational learning can further extend research on this topic.
Keywords: Change management, decision making, enterprise risk management, organizational learning, sensemaking, systematic review, resiliency, risk, risk management
vi
Acknowledgements
First, I would like to thank my advisory committee, Dr. Thomas Mierzwa and Dr. Denise Breckon, for their guidance during the dissertation journey. Their hard work and commitment to my growth as a scholar enabled me to complete my dissertation and grow intellectually. I would also like to thank the staff at the UMUC doctorate of management program, specifically Marina Caminis, Monica Graham, and Cindy Thomas, for their help on my research and ensuring that my doctoral experience was enjoyable. Last, to my cohort members, thanks for all your insight, support, and encouragement throughout this long and challenging process!
I would also like to acknowledge Dr. Roger Ward, Chief Accountability Officer, Vice President for Operations and Planning, and Vice Dean, Graduate School at the University of Maryland Baltimore for encouraging me to pursue my doctoral degree and his continued support throughout the process to achieve my doctorate degree.
I would like to thank my two puppies, Jenny and Trixie, who gladly took walks with me as pondered how to proceed with this dissertation. Last, and most importantly, I would like to thank my wife, Bonnie, for her patience and support as I fulfilled the demanding requirements of the doctor of management program. Her tolerance for deferring home improvements until after completing the program is appreciated!
vii
Table of Contents
ABSTRACT .................................................................................................................................. iv
Acknowledgements ........................................................................................................................ vi
List of Tables ............................................................................................................................... xii
List of Figures .............................................................................................................................. xiii
Chapter 1: Introduction and Management Problem ...................................................................... 14
Problem Statement ........................................................................................................................ 16
Higher Education Institutions ................................................................................................... 17
Traditional Risk Management................................................................................................... 19
Enterprise Risk Management .................................................................................................... 21
Research Question .................................................................................................................... 25
Study Purpose and Significance ................................................................................................... 26
Scope and Limitations .................................................................................................................. 28
Organization of Dissertation Chapters .......................................................................................... 28
Chapter 2: Literature Review ........................................................................................................ 30
Program Implementation Process ................................................................................................. 30
Enterprise Risk Management ........................................................................................................ 32
Organizational Change.............................................................................................................. 32
Decision Making ....................................................................................................................... 35
Organizational Learning ........................................................................................................... 37
Theoretical Perspectives on ERM Implementation ...................................................................... 38 viii
Theories on Organizational Change.......................................................................................... 38
Theories on Decision Making ................................................................................................... 41
Theories on Organizational Learning ....................................................................................... 42
Organizational Risk ...................................................................................................................... 43
Risk Defined ............................................................................................................................. 43
Dimensions of Risk ................................................................................................................... 45
Risk and Opportunity ................................................................................................................ 49
Organizational Change ................................................................................................................. 50
Institutional and Legitimacy Theory ......................................................................................... 51
Organizational Culture .............................................................................................................. 53
Change Management ................................................................................................................ 56
Organizational control. ......................................................................................................... 58
Change management models. ............................................................................................... 59
Organizational Resiliency ......................................................................................................... 62
Decision Making ........................................................................................................................... 64
Decision-Making as an Ongoing, Retrospective, and Social Process ...................................... 67
Decision-Making Bias .............................................................................................................. 69
Decision-Making Framing ........................................................................................................ 71
Organizational Learning ............................................................................................................... 73
Sensemaking-Based Learning ................................................................................................... 75
Team-Based Learning ............................................................................................................... 79
Theses on Enterprise Risk Management Implementation ............................................................ 80 ix
Conceptual Framework ................................................................................................................. 83
Summary .................................................................................................................................. 85
Chapter 3: Methodology ............................................................................................................... 88
Research Design ........................................................................................................................... 88
Selection of the Research Methodology ................................................................................... 89
Search Strategy and Eligibility ................................................................................................. 90
Inclusion and exclusion criteria. ........................................................................................... 90
Inclusion of grey literature. ................................................................................................... 91
Quality and Relevance Appraisal.............................................................................................. 92
Data Collection ......................................................................................................................... 94
Synthesis Method ...................................................................................................................... 95
Using the Research ................................................................................................................... 97
Summation of the Research Design .......................................................................................... 98
Considerations from Expert Panel Review ................................................................................... 99
Summary of Results .................................................................................................................... 103
Synthesis of the Results .............................................................................................................. 106
Grey Literature ........................................................................................................................ 106
Factors that Influence the Decision to Adopt ERM ................................................................ 110
Evidence on the financial value of adopting ERM. ............................................................ 111
Evidence on nonfinancial factors influencing ERM adoption. ........................................... 114
Factors Influencing ERM Implementation ............................................................................. 123
Influence of management practices. ................................................................................... 124 x
Influence of organizational culture. .................................................................................... 127
Influence of change agent. .................................................................................................. 127
Influence of program design. .............................................................................................. 129
Influence of barriers to implementation. ............................................................................. 130
Influence of decision-making processes. ............................................................................ 133
Influence of organizational learning. .................................................................................. 137
Chapter 4: Analysis of Findings ................................................................................................. 140
Findings on ERM Adoption ........................................................................................................ 140
Findings on ERM Implementation ............................................................................................. 142
Process for Enterprise Risk Management Implementation at Higher Education Institutions .... 145
Factors Influencing Enterprise Risk Management Adoption.................................................. 146
Factors Influencing Enterprise Risk Management Program Setup ......................................... 148
Program champion and implementation team. ................................................................... 149
Program design factors. ...................................................................................................... 150
Risk assessment factors....................................................................................................... 151
Factors Influencing ERM Implementation and Ramp-up ....................................................... 156
Organizational learning factors. .......................................................................................... 158
Factors Influencing ERM Integration ..................................................................................... 160
Summary of Findings .................................................................................................................. 161
Limitations of Interpretations ..................................................................................................... 163
Chapter 5: Conclusions and Implications for Practice and Theory ............................................ 165 xi
Study Conclusion ........................................................................................................................ 166
Implications for Management Practice ....................................................................................... 167
Principle 1: Adopt ERM to Improve Performance ................................................................. 168
Principle 2: Clarify the Purpose and Goals of the ERM Program .......................................... 168
Principle 3: Design ERM to Reflect the HEI's Culture and Organizational Routines ............ 169
Principle 4: Select a Program Champion and Implementation Team with the Proper Skills . 170
Principle 5: Use Decision-Making Methodologies Appropriate for the Risk ......................... 171
Principle 6: Stimulate Organizational Learning on Risk ........................................................ 172
Principle 7: Build Organizational Resiliency Capabilities through ERM .............................. 172
Summary Comments on Implications for Management ......................................................... 173
Implications for Management Theory ........................................................................................ 174
Implications for Future Research ................................................................................................ 179
Concluding Thoughts .................................................................................................................. 180
References .................................................................................................................................. 182
Appendix A: Quality Assessment Tool ...................................................................................... 204
Appendix B: Databases Included in UMUC OneSearch ............................................................ 208
Appendix C: Summary of Studies Included in Dataset .............................................................. 209
Appendix D: Summary of Studies Excluded for Failing the Quality Assessment ..................... 238
Appendix E: Literature Search Results by Year ......................................................................... 239
Appendix F: Journal Search Results ........................................................................................... 240
xii
List of Tables
Table 1. Summary of Propositions and Theses Statements ...........................................................87
Table 2. Search String and Database .............................................................................................90
Table 3. Rationale for Including Articles in the Systematic Review .............................................92
Table 4. Quality Appraisal Rating Categories ...............................................................................94
Table 5. Panel of Subject Matter Experts and Panel Feedback ...................................................101
Table 6. Enterprise Risk Management and Financial Value ........................................................115
Table 7. Compliance Outcomes Organizations Desire from Adopting an ERM Strategy ..........122
Table 8. Performance Outcomes Organizations Desire from Adopting an ERM Strategy .........123
Table 9. Mechanisms that Facilitate or are Barriers to ERM Implementation ............................134
Table 10. Decision Making Facilitators and Barriers ..................................................................138
Table 11. Organizational Learning Facilitators and Barriers .......................................................139
Table 12. Characteristics of Ambiguous Situations .....................................................................158
Table 13. Principles for ERM Adoption and Implementation at HEIs ........................................167
xiii
List of Figures
Figure 1. Risk management techniques .........................................................................................20
Figure 2. Components of the COSO ERM framework ..................................................................24
Figure 3. Program implementation process ...................................................................................31
Figure 4. Management theories.............................................................................
Managerial decision-making influencers of the United States in for-profit multinational organizations: A national culture perspective
No full textThe purpose of this dissertation was to examine U.S. cultural characteristics that influenced the decision-making of expatriate U.S. managers.Managerial Decision-Making Influencers of the United States in For-Profit Multinational Organizations: A National Culture Perspective
Purpose
Managers awareness of cultural differences between their home and host country would enhance their decision-making process.
US expatriate managers need to moderate their individualistic and low power distance characteristics to make effective decisions in host countries.
Conceptual Framework
The purpose of this dissertation was to examine U.S. cultural characteristics that influenced the decision-making of expatriate U.S. managers.
Implications for Management Practice
Vikram Paramasivan Dissertation Committee: James P. Gelatt, Ph.D and Kathleen F. Edwards, Ph.D
The Graduate School
University of Maryland University College, Adelphi, MD
Thematic Syntheses
Research Question
What are the cultural characteristics that influence decision-making by expatriate U.S. managers in for-profit MNOs in host countries?
Preliminary Findings
Evidence suggested that US managers are individualistic rather than collectivist in their decision-making process.
Low power distance was another cultural characteristic influence among US managers that was identified across ethical, general and strategic decision-making.
High tolerance towards uncertainty and ambiguity had significant influence among US managers in general and strategic decision-making.
The type of decisions faced by a manager in a multinational organization is important to distinguish, as each type of decision could be influenced by one or more national cultural characteristics.
Significant Literature
Method and Inclusion/Exclusion Criteria
Records identified through database searching (n =395 )
Screening
Included
Eligibility
Identification
Additional records identified through other sources (n = 25)
Records after duplicates removed (n = 371)
Records after abstract review (n = 76)
Records excluded (n = 295) R
Full-text articles assessed for eligibility (n = 39)
Full-text articles excluded, with reasons (n = 37)
Studies included without Hofstede cut-off criteria (n = 39)
Studies included (n = 25)
Hofstede articles excluded, with reasons (n = 14)
Significance of the Problem
As an increasing number of U.S. based, for-profit MNOs appoint U.S. managers in host nations, the challenges associated with the cultures of those host nations need to be addressed as part of pre-expatriate training. This dissertation provided insight about the national cultural characteristics that influenced U.S. managers’ decision-making process.
Decision-Making Themes
General Decisions
Strategic Decisions
Ethical Decisions
Fall 2015
Study Name
Model
Theme
Cultural Dimensions
French et al. (2001)
Trompennars
Ethical Decisions
Individualism
Universalism
Store and Cross (2004)
GLOBE and Hofstede
General Decisions
Individualism
Power distance
Uncertainty avoidance
Waldman et al. (2006)
GLOBE
General Decisions
Collectivism
Power distance
Dimitratos et al. (2010)
Hofstede
Strategic Decisions
Individualism
Power distance
Uncertainty avoidance
Individualistic cultural dimension (Hofstede & Trompenaars)
Ethical Decisions
Justice
Utilitarianism
Relativism
General Decisions
Decision Support Systems
IT / Business decisions
Values / Conflict resolution
Strategic Decisions
Strategic Decision process
Strategic Support process
Uncertainty Avoidance cultural dimension (Hofstede & GLOBE)
Power Distance
cultural dimension
(Hofstede & GLOBE
Sustainability-oriented leadership for nonprofit social enterprises: A systematic review
No full textSustainability-oriented leadership has emerged as a topic of strategic interest among governing boards of directors, management practitioners, and stakeholders of some nonprofit social enterprises (NSEs). There is interest in determining the particular leadership styles that are best suited to manage NSEs toward organizational sustainability. The purpose of this study is to investigate evidence that demonstrates a relationship between organizational leadership styles and sustainability for NSEs. The study's methodology is a Systematic Review (SR) that provides a practitioner-oriented, evidence-based research approach. Results of the study indicate the existence of a complex relationship where organizational leadership style influences how risk-management skills are employed, innovation opportunities are exploited, and resilient behaviors are reinforced to facilitate sustainability among NSEs.SUSTAINABILITY-ORIENTED LEADERSHIP FOR NONPROFIT SOCIAL ENTERPRISES:
A SYSTEMATIC REVIEW
Eddie G. Montgomery
Dissertation
Submitted to the
Graduate Faculty
of
University of Maryland University College
in Partial Fulfillment of
The Requirements for the Degree
of
Doctor of Management
Dissertation Chairpersons
Leslie D. Dinauer, Ph.D.
Laura D. Witz, Ph.D.
2015
SUSTAINABILITY-ORIENTED LEADERSHIP FOR NONPROFIT SOCIAL ENTERPRISES:
A SYSTEMATIC REVIEW 2
Table of Contents
Abstract ...............................................................................................................................4
Acknowledgements ..............................................................................................................5
List of Tables .......................................................................................................................6
List of Figures ......................................................................................................................7
List of Appendices ...............................................................................................................8
Chapter One: Introduction and Overview of Existing Literature ................................9
Chapter introduction .......................................................................................................9
Statement and significance of the Problem ...................................................................13
Importance to Management ..........................................................................................14
Theoretical Framework .................................................................................................18
Research Questions, Assumptions, and Propositions ...................................................21
Organization of the dissertation……. ...........................................................................23
Overview of Existing Literature ...................................................................................24
Conceptual relationship ................................................................................................45
Chapter summary ..........................................................................................................45
Chapter Two: Methodology ............................................................................................46
Chapter introduction .....................................................................................................46
Theory and practice of Evidence-Based Research in Management ..............................47
Research epistemology and objective ...........................................................................49
Research philosophy .....................................................................................................50
Systematic Review Methodology .................................................................................51
Stages of the Systematic Review ..................................................................................52
Search strategy ..............................................................................................................55
Inclusion and Exclusion Criteria ...................................................................................57
Thematic analysis..........................................................................................................73
Synthesis methodology .................................................................................................79
Chapter summary ..........................................................................................................81
SUSTAINABILITY-ORIENTED LEADERSHIP FOR NONPROFIT SOCIAL ENTERPRISES:
A SYSTEMATIC REVIEW 3
Chapter Three: Results & Findings ...............................................................................82
Chapter introduction .....................................................................................................82
Results of thematic analysis and synthesis ...................................................................82
Modified conceptual framework ...................................................................................90
Research question and answer ......................................................................................92
Chapter summary ..........................................................................................................94
Chapter Four: Discussion ...............................................................................................95
Chapter introduction .....................................................................................................95
Discussion .....................................................................................................................95
Chapter summary ..........................................................................................................97
Chapter Five: Implications for Practice ........................................................................98
Implications for management practice ..........................................................................98
Implications for future research study ........................................................................101
Limitations of the study ..............................................................................................103
Conclusions of the study .............................................................................................103
References .......................................................................................................................106
Appendices ......................................................................................................................132
SUSTAINABILITY-ORIENTED LEADERSHIP FOR NONPROFIT SOCIAL ENTERPRISES:
A SYSTEMATIC REVIEW 4
ABSTRACT
Sustainability-oriented leadership has emerged as a topic of strategic interest among governing
boards of directors, management practitioners, and stakeholders of some nonprofit social
enterprises (NSEs). There is interest in determining the particular leadership styles that are best
suited to manage NSEs toward organizational sustainability. The purpose of this study is to
investigate evidence that demonstrates a relationship between organizational leadership styles
and sustainability for NSEs. The study’s methodology is a Systematic Review (SR) that provides
a practitioner-oriented, evidence-based research approach. Results of the study indicate the
existence of a complex relationship where organizational leadership style influences how risk-management
skills are employed, innovation opportunities are exploited, and resilient behaviors
are reinforced to facilitate sustainability among NSEs.
Keywords: Entrepreneurial, Leadership, Nonprofit, Social Enterprise, Sustainability
SUSTAINABILITY-ORIENTED LEADERSHIP FOR NONPROFIT SOCIAL ENTERPRISES:
A SYSTEMATIC REVIEW 5
ACKNOWLEDGEMENTS
People will forget what you said, people will forget what you did, but people will
never forget how you made them feel… (Maya Angelou, 1993, Wouldn't Take
Nothing for My Journey Now, p. 12).
I acknowledge, with sincere gratitude, my wife, Josephine, son, Eddie Jr., daughter-in-law,
Latiffany Rena, and my grandchildren, Monique Jena, Eddie Jaron, Eric Lamar, and
Michael Jamar for your patience as I pursued this milestone in my academic career. I appreciate
the support received from my biological and spiritual sisters and brothers. A special thank you is
extended to my dissertation chairpersons, Dr. Leslie Dinauer and Dr. Laura Witz. Each of you
provided your unique style of teaching, leading, and guiding during my doctoral journey.
A bouquet of thanks is extended to each person who shared this journey with me. To
those who forged ahead of me, you left good tracks for me to follow. To those who are still
marching behind me, the sounds of your footsteps are not too distant, keep charging. To my
cohort, it was your care, concern, and yes, love, that encouraged me to keep going. The humor
we shared during the difficult days made life so much more bearable. I shall always remember
each of you. My favorite class quote was, “They say there is light at the end of the tunnel, but I
don’t even see the tunnel.”
Finally, but most importantly, I thank God for giving me the courage and strength to
complete the doctoral program. I did not complete it just for personal reasons, but I did so to
help, in some small way, others who may question whether they too can earn their doctoral
degree in spite of great adversity. My answer is, you will never know unless you try.
SUSTAINABILITY-ORIENTED LEADERSHIP FOR NONPROFIT SOCIAL ENTERPRISES:
A SYSTEMATIC REVIEW 6
LIST OF TABLES
1 Research Assumptions ................................................................................................22
2 Research Propositions .................................................................................................23
3 Inclusion/Exclusion Criteria .......................................................................................57
4 Electronic databases used in the review ......................................................................58
5 Excerpt of Keyword search criteria by database .........................................................59
6 TAPUPAS and Weight of Evidence Validity and Relevance Rating Scale ...............66
7 Weight of Evidence ....................................................................................................67
8 Contextual appraisal of the literature and Rating Scale ..............................................69
9 Excerpt of Publication bundling of literature sources.................................................70
10 Publication bundling listing of literature sources .......................................................72
11 Excerpt of thematic coding Stage One code list .........................................................75
12 Descriptive themes emerging from the systematic review .........................................78
13 Stage-3 Analytical Themes .........................................................................................79
SUSTAINABILITY-ORIENTED LEADERSHIP FOR NONPROFIT SOCIAL ENTERPRISES:
A SYSTEMATIC REVIEW 7
LIST OF FIGURES
1 Conceptual framework for NSE sustainability-oriented leadership ...........................45
2 Common Stages of a Systematic Review Plan ...........................................................52
3 PRISMA search strategy process ................................................................................62
4 Stage-1 Thematic coding of article text ......................................................................74
5 Descriptive theme schematic of risk propensity for NSEs .........................................77
6 Modified conceptual framework .................................................................................91
SUSTAINABILITY-ORIENTED LEADERSHIP FOR NONPROFIT SOCIAL ENTERPRISES:
A SYSTEMATIC REVIEW 8
LIST OF APPENDICES
Appendix A. Expert stakeholder feedback questionnaire .............................................132
Appendix B. Expert stakeholder panelist’s comments and feedback ...........................137
Appendix C. Inclusion/Exclusion criteria and rationale ...............................................140
Appendix D. Keywords search criteria by database .....................................................142
Appendix E. Weight of evidence coded literature ........................................................149
Appendix F. Contextual appraisal of the literature and Rating Scale ..........................167
Appendix G. Publication bundling of literature sources ...............................................188
Appendix H. Thematic code list for Stage-1 thematic analysis ....................................199
SUSTAINABILITY-ORIENTED LEADERSHIP FOR NONPROFIT SOCIAL ENTERPRISES:
A SYSTEMATIC REVIEW 9
CHAPTER ONE: INTRODUCTION
Chapter Introduction
Historical background. In 1902, Reverend Edgar J. Helms, a Methodist minister in
Boston, MA, went from house to house in Boston’s affluent neighborhoods collecting donated
clothing and used household goods. Rev. Helms took the donated items and hired poor,
unemployed, and disabled citizens to mend the clothing and repair the used goods. The items
were then resold to the public or given to the people who repaired them. Rev. Helms established
thrift stores using this system of refurbishment and retail (Goodwill Industries, 2014; Le Zotte,
2013). What started as a small nonprofit organization has today become a 4 billion dollar
sustainable nonprofit social enterprise called Goodwill Industries. Within the field of
entrepreneurship, Reverend Helms is referred to as a social entrepreneur, and Goodwill
Industries is known as a sustainability-oriented nonprofit social enterprise.
Social entrepreneurship is a term that Ashoka Founder and CEO Bill Drayton first used in
the early 1980s. As stated in an article by Light (2009):
[Social entrepreneurship] continues to inspire images of audacious social change, the
kind that sweeps away the old approaches to solving intractable social problems such as
disease, hunger, and poverty. Like business entrepreneurship, social entrepreneurship
involves a wave of creative destruction that remakes society. Although we will always
need traditional social services, even more during times of high economic turmoil, social
entrepreneurship focuses on changing the underlying dynamics that create the demand for
services in the first place. Instead of treating society's distress, social enterprise holds
hope for eliminating the distress altogether. (p. 21)
SUSTAINABILITY-ORIENTED LEADERSHIP FOR NONPROFIT SOCIAL ENTERPRISES:
A SYSTEMATIC REVIEW 10
Social enterprise literature defines social enterprises as those organizations that fall along a
continuum of business structures—from for-profit oriented enterprise engaged in socially
beneficial activities to the nonprofit enterprise that mediates profit goals with social objectives
(Kerlin, 2006).
A nonprofit social enterprise (NSE) is a tax-exempt organization that operates a market-oriented,
profit-generating business to fulfill a social mission that creates social value (Austin,
Stevenson & Wei-Skillern, 2006). The study by Austin et al. (2006) provides a comprehensive
definition of social entrepreneurship that goes from broad to narrow. The broad definition states
that social entrepreneurship refers to innovative activity with a social objective within the for-profit
and nonprofit business sectors. Several authors subscribe to the broad definition of social
entrepreneurship (Austin & Reficco, 2009; Dees, 1998; Dees & Anderson, 2003; Emerson &
Twersky, 1996). The narrow definition of social entrepreneurship refers to the phenomenon of
applying business expertise and market-based skills in the nonprofit sector, such as when
nonprofit organizations develop innovative approaches to earn income (Reis, 1999; Thompson,
2002). A common factor across all definitions of social entrepreneurship is the underlying drive
to create social value rather than personal or shareholder wealth.
Definitions
To establish a knowledge frame for this study, the following words are defined and
utilized throughout the document: sustainability, leadership, and entrepreneurial leadership style.
Sustainability. In social science research, sustainability is defined as the endurance of
systems and processes. The concept of sustainability uses the organizing principle of sustainable
development, which includes systems and processes that meet the needs of the present without
SUSTAINABILITY-ORIENTED LEADERSHIP FOR NONPROFIT SOCIAL ENTERPRISES:
A SYSTEMATIC REVIEW 11
compromising the ability of future generations to meet their needs (World Commission on
Environment and Development, 1987). Sustainability-oriented leadership is a process involving
behavioral changes in leadership that are attributable to a change in knowledge and values within
the social environment. The unresolved phenomenon of NSE failure is the reason sustainability
is serving as the conceptual framework for this study (Siebenhüner & Arnold, 2007).
Sustainability is the end-goal of a variety of organizational means.
Leadership. There are many definitions of leadership, either as a process or as a
behavior. Within the context of the organization, this study conceptualizes leadership as “one
individual influencing a group of others to accomplish common goals" (Northouse, 2012, p. 6).
Using this conceptualization, leadership can be viewed as the actions of individuals, within
organizations, that determine what needs to be done to accomplish its goals efficiently. Many
practitioners assume that particular leadership styles facilitate organizational sustainability.
There is interest among practitioners in determining the particular leadership styles that are best
suited to manage a nonprofit social enterprise (NSE) towards organizational sustainability. This
study investigated the dominant leadership styles of NSEs using evidence found through research
of a variety of studies and published literature.
Entrepreneurial leadership style. Entrepreneurial leadership style is defined by the
risk-taking, innovativeness, and resilient behaviors exhibited by an organization and its
leadership team. Entrepreneurial leadership style is used to influence followers and stakeholders
towards accomplishing the organization’s goals while managing resources strategically.
Entrepreneurial leadership style exhibits opportunity seeking and advantage seeking behaviors
(McCarthy, Puffer, & Darda, 2010). Entrepreneurial leadership style also involves the process of
SUSTAINABILITY-ORIENTED LEADERSHIP FOR NONPROFIT SOCIAL ENTERPRISES:
A SYSTEMATIC REVIEW 12
exploring, exploiting, and diffusing innovation opportunities, and demonstrating an above-average
degree of risk-taking to leverage scarce resources (Peredo & McLean, 2006). Badelt
(2003) defines entrepreneurial leadership style by referring to Schumpeter’s basic characteristics
of an entrepreneur, which are described in his theory of economic development. Schumpeter
posits the entrepreneur as an individual with a particular attitude towards change. This definition,
when applied to the collective behaviors of organizational actors, represents a style of
organizational leadership and entrepreneurship (Goss, 2005).
This study investigates entrepreneurial leadership under the assumption that leadership
styles can be empirically studied. Entrepreneurial leadership style is conceptualized as behavioral
characteristics that influence how tasks, objectives, and goals are accomplished. This study uses
the behavioral concept of leadership style to explore how risk-taking, innovativeness, and
resilient behaviors may or may not affect organizational sustainability (Yukl, 2012).
Organizations selecting an entrepreneurial leadership style develop management teams
that exhibit entrepreneurial leadership behaviors. An entrepreneurial leadership style is not
limited to securing resources or influencing people. Entrepreneurial leadership style includes
providing vision to craft ethically-based missions (Warrell, 2008). Entrepreneurial leadership
style also includes providing a market-based approach to accomplish an organization’s mission
(Morris, Coombes, Schindehutte, & Allen, 2007; von der Weppen, 2012). As suggested by
Ruvio, Rosenblatt, and Hertz-Lazarowitz (2010), entrepreneurial organizations must understand
the differences in the types of missions that can and cannot be managed entrepreneurially.
Gaining an understanding of different mission types involves defining the core competencies of
SUSTAINABILITY-ORIENTED LEADERSHIP FOR NONPROFIT SOCIAL ENTERPRISES:
A SYSTEMATIC REVIEW 13
the organization and using its entrepreneurial leadership style to deliver the social value desired
by stakeholders.
Statement and Significance of the Problem
The purpose of this study is to investigate evidence that demonstrates a relationship
between organizational leadership style and sustainability for NSEs. The research objective is to
determine if there is evidence to support the assumption that leadership styles can facilitate
sustainability to decrease the failure rate of NSEs. At the time of this study, there are over 1.6
million nonprofit organizations operating within the United States of America (USA). These
groups represent a sizable contribution (7 percent) to the nation's gross domestic product (GDP),
which is divided into three business sectors—for-profit, government, and nonprofit. Of the 1.6
million nonprofit organizations in the USA, 36 percent (576,000) are social enterprises.
Annually, over 16.8 perce
Interim leadership as a response to disruptive succession events
No full textInterim leadership roles are found in virtually every functional discipline and across virtually every type of organization. Although ubiquitous, research into this management discipline has been sparse. The concept of interim leadership draws on previous research in organizational planning, particularly succession planning. Building on this foundation, more recent research into interim leadership since the 1990s delineates and informs this management role and differentiates it from other similar roles such as executive consultant and external interim leadership. In order to integrate the available research into a cohesive set of results and findings, this study employs a systematic review with a realist synthesis and its associated C-M-O (Context, generative Mechanism, and Outcome) logic. Drawing from 42 unique studies, this research identifies a set of 17 specific factors that describe and influence outcomes of this unique management role, interim leadership. The results inform both researchers and practitioners through a thorough understanding of interim leadership and its implications on organizational policy and planning ultimately manifest through organizational performance implications. These research findings also aid practitioners in understanding and assessing various options and influential factors affecting an interim leadership role when drawing from internal personnel to fill a leadership position vacated through a disruptive event. An assessment tool and associated guidelines can support practitioners with these challenges. Scholars can draw upon the study’s findings to further their understanding and research agendas associated with interim leadership. The study’s findings also provide a clear differentiation between ranges of similar term-limited leadership roles helping to clarify the problem space.i
INTERIM LEADERSHIP AS A RESPONSE TO DISRUPTIVE SUCCESSION EVENTS
by
Robert S. Sterneck
Dissertation submitted to the Faculty of the Graduate School of the
University of Maryland University College, in partial fulfillment
of the requirements for the degree of
Doctor of Management
2015
Advisory Committee:
Dr. Thomas J. Mierzwa
Dr. Denise A. Breckon
ii
iii
ABSTRACT
Title of Dissertation: INTERIM LEADERSHIP AS A RESPONSE
TO DISRUPTIVE SUCCESSION EVENTS
Robert Sterneck, Doctor of Management,
2015
Dissertation Directed By: Dr. Thomas J. Mierzwa and Dr. Denise A.
Breckon
Interim leadership roles are found in virtually every functional discipline and across virtually
every type of organization. Although ubiquitous, research into this management discipline has
been sparse. The concept of interim leadership draws on previous research in organizational
planning, particularly succession planning. Building on this foundation, more recent research
into interim leadership since the 1990s delineates and informs this management role and
differentiates it from other similar roles such as executive consultant and external interim
leadership. In order to integrate the available research into a cohesive set of results and findings,
this study employs a systematic review with a realist synthesis and its associated C-M-O
(Context, generative Mechanism, and Outcome) logic. Drawing from 42 unique studies, this
research identifies a set of 17 specific factors that describe and influence outcomes of this unique
management role, interim leadership. The results inform both researchers and practitioners
iv
through a thorough understanding of interim leadership and its implications on organizational
policy and planning ultimately manifest through organizational performance implications. These
research findings also aid practitioners in understanding and assessing various options and
influential factors affecting an interim leadership role when drawing from internal personnel to
fill a leadership position vacated through a disruptive event. An assessment tool and associated
guidelines can support practitioners with these challenges. Scholars can draw upon the study’s
findings to further their understanding and research agendas associated with interim leadership.
The study’s findings also provide a clear differentiation between ranges of similar term-limited
leadership roles helping to clarify the problem space.
Keywords: interim, interim leadership, interim management, leadership attributes, management
planning, management policy, succession planning
v
© Copyright by
Robert Sterneck
2015
vi
Dedication
This dissertation is dedicated to my wife Hiroko and daughter Elyssa without whose
support I could not have pursued the DM program and completed this goal I have had for many
years. Hiroko’s understanding and support allowed me to spend endless hours working and
studying over the four years of the DM program. I drew inspiration studying together with Elyssa
and from her encouragement as we did our homework together. I will cherish those hours
together. Thank you for helping me achieve one of my life goals. I love you both.
vii
Acknowledgements
My appreciation goes out to many who have supported and mentored me through the
entire dissertation process. First, special thanks to Dr. Tom Mierzwa and Dr. Denise Breckon for
their support and guidance as my dissertation advisors from the initial topic reviews through
completion of the final version. A special thanks to Dr. Claudine SchWeber who was
instrumental in helping me identify and select my initial topic and to Dr. Wanda Wagner who
provided an extra set of eyes and whose detailed review and input was invaluable as I completed
the work. This dissertation would not have been possible without the thoughtful and constructive
feedback from the subject matter experts that reviewed and helped shape the research. I would
also like to thank all of the professors at University of Maryland University College that helped
me as I developed as a doctoral student through years. Finally, I was fortunate to be part of the
most supportive and welcoming cohort anyone could ask for as we journeyed through the
challenges and rewards of the UMUC DM program. Thank you and congratulations to Steve
Deck, Cami Fawzy, Jessica Fernandes, Katherine Freeley, Joseph Glowitz, JoAnne Karovos,
Terri Madden, Jamie Padmore, and Brenda Shore.
viii
Table of Contents
Dissertation Approval Form ii
Abstract iii
Dedication vi
Acknowledgements vii
List of Tables xi
List of Figures xii
Chapter 1: Introduction and Problem Statement 1
Recent Headlines and Interim Management Ubiquity 1
Study Purpose and Problem Statement 4
Significance of Study 9
Research Question 11
Scope and Limitations 14
Summary 15
Chapter 2: Literature Review and Conceptual Framework 17
Framing Interim Management Themes 17
Leadership Succession 17
Four Categories of Term-limited Leadership 20
Tenure 28
Transition Phases 29
Exit and Transition Out of the Position 32
Indicators of Interim Leadership Success 34
Support Mechanisms for Interim Leadership 37
Stakeholder Dynamics 39
ix
Proposition Integration 40
Literature Review Summary 42
Conceptual Framework Development 43
The Event Period 43
Induction Phase 51
Inflection and Improvement Phase 57
Preparation and Transition 58
Variable Summary 60
Thesis Statement Summary 61
Term-limited Leadership Integrated View 62
Chapter 3: Research Method 66
Research Method Overview 66
Review Framework 68
Evidence Based Research and Systematic Review Methodology 70
Search Results 80
Validity 83
Limitations 84
Conclusion 85
Chapter 4: Findings 87
Results Summary 87
Role Structure 91
Initiation Phase 96
Interim Leadership Phase 97
Exit Phase 111
Sensitivity 113
x
Summary and Discussion 114
Limitations of Interpretations of this Study 119
Conclusion 120
Chapter 5: Conclusions and Implications for Management Practice 122
Study Summary and Introduction to Implications 122
Implications for Management Practice 123
Organizational Assessment Instrument for Interim Management
Situations
125
Theoretical Contributions 130
Future Research 132
Conclusion 133
References 135
Appendix A: Review Synthesis Data Elements 152
Appendix B: Electronic Databases 155
Appendix C: Quality Review Protocol 157
Appendix D: Weight of Evidence Worksheet Format 158
Appendix E: Weight of Evidence Worksheets 159
Appendix F: Subject Matter Expert Feedback Summary 202
Appendix G: Data Set Descriptive Elements 204
Appendix H: Study Alignment to Categories with Composite Quality
Ratings
213
Appendix I: Evidence Extracts 218
xi
List of Tables
Table 1: External Temporary Management Applications 25
Table 2: Interim Leadership Situational Alignment 27
Table 3: Proposition Summary 41
Table 4: Variable Summary 60
Table 5: Thesis Statement Summary 62
Table 6: Search Protocol 74
Table 7: Weight Evidence Outline 76
Table 8: Attributes and Capabilities 100
Table 9: Interim management applicability assessment valuation
guidelines
127
Table G1: Final Data Set 205
Table H1: Study Alignment to Categories with Composite Quality
Ratings
214
Table I1: Atlas.tiTM reference number with corresponding literature
reference
218
xii
List of Figures
Figure 1: Term-limited Leadership Problem Space Representation 13
Figure 2: Influencing Variable Effect on Organizational Performance
Conceptual Model
44
Figure 3: Temporary Nature of the Position Variable 46
Figure 4: Influence of Predecessor Tenure Variable 47
Figure 5: Influence of the Selectin and Placement Process Variable 49
Figure 6: Previous Organizational Performance Variable 50
Figure 7: Event Period Influencing Variable Summary 51
Figure 8: Leader Acceptance Variable Influence 53
Figure 9: Ambiguity of Purpose Influence on Organizational
Performance
54
Figure 10: Length of Assignment Variable Influence on Organizational
Performance
55
Figure 11: Induction Phase Influencing Variable Effects on
Organizational Performance
56
Figure 12: Stabilization and Improvement Phase Influencing Variable
Effects on Organizational Performance
58
Figure 13: Preparation for Transition Phase Influencing Variable Effects
on Organizational Performance
59
Figure 14: Term-limited Leadership Effect on Organizational
Performance
63
Figure 15: Data Set Development PRISMA Diagram 82
Figure 16: Number of studies informing each individual study category 90
Figure 17: Number of studies informing each individual category
separated by composite quality score
91
Figure 18: Interim management applicability assessment diagram 129
Figure 19: Example of populated interim management applicability
assessment diagram
130
xiii
Figure G1: Number of studies included in the final data set for each year 210
Figure G2: Number of studies included in the final data set for each
subject organization
210
Figure G3: Number of studies included in the final data set by
management level
211
Figure G4: Number of studies included in the final data identified by
study type
211
Figure G5: Number of studies included in the final data identified by
research discipline
212
Figure G6: Number of studies included in the final data by composite
quality rating
212
Figure I1: Evidence extract table format 218
1
Chapter 1
Introduction and Problem Statement
Recent Headlines
United Airlines CEO steps down after Port Authority probe (Wattles, Perez, & Prokupecz, 2015)
Volkswagen CEO steps down amid emissions scandal (Borney, 2015)
Minnesota's Jerry Kill resigns for health reasons (Goodbread, 2015)
These types of headlines can be found virtually every day across industries and
geographic locations. While high profile situations make the headlines, leadership vacancies can
be found at any level of the organization. In order to mitigate a leadership vacuum prompted by
an emergent departure, interim leaders are often selected while a permanent leader is sought.
Although often identified as “seat warmers” (Mooney, Semadeni, & Kesner, 2013, p. 625), the
tenure of an interim leader comes at a critical time for many organizations and may have
profound implications for the organization.
Interim Management Ubiquity
Term-limited leadership, as a general concept, is realized in many forms throughout both
public and private organizations. Titles including acting, interim (Farquhar, 1995, p. 54), and
temporary indicate positions with the intent to ultimately place an individual in a permanent role.
Other similar forms of term-limited leadership positions include temporary contracted
management positions, rotational assignments, elected positions with term-limits, and term-limited
appointed positions. While each of these examples may be initiated through different
2
organizational needs, the individual’s role shares the common characteristic of a temporary
leader.
The use of term-limited leadership is prevalent across industries and organizations, and is
not bound by geographic barriers. A brief search on any given day will provide a myriad of
examples. A recent GoogleTM search for “interim CEO” provided several examples of CEO and
other senior executive replacements over a one week period. The search results included
instances in healthcare (“Wester returns”, July 2014; Wilson, 2014), non-profit agencies
(Freeman, 2014), government (Buckhalter, 2014), and private industry (“Eltec”, 2014).
Interim leadership positions extend into organizations beyond private business into the
government and political realm as well as across geopolitical boundaries. Interim Egyptian
President Adly Mansour began serving in July, 2013 as a result of a popular revolt and the
ousting of elected President Mohammed Morsi (Abdellatif, 2013). In the United States, Jeffrey
Zients was identified for a temporary assignment as part of the effort to address healthcare.gov
start-up issues. Mr. Zients’ service was anticipated to extend from late October, 2013 through the
end of the year when he was slated to begin a position as director of the National Economic
Council (Nelson, 2013). In reality, this time frame was less ambiguous that many others as the
transition of Mr. Zients over to the National Economic Council was completed in March, 2014
(Goldman, 2014). Each of these situations was initiated by a different set of circumstances, but
resulted in an interim leader being identified and installed to fill a critical leadership need.
While there are many high-profile instances of term-limited leadership, the call to service
as an interim is also found through less public situations. Other common uses of term-limited
leadership are found in elected office and interim appointments in both the public and private
sectors. From the highest levels including Presidents, Senators, and Representatives through the
3
local level of public office including council members and judges; elected office and associated
term limits are part of the basic structure of democratic government ensuring periodic power
transitions.
The use of term-limited leadership positions in academia is also common through the use
of acting and interim roles. An internet search for “interim dean” immediately identified
examples (Acosta, 2014; Matas, 2014) in higher education. A further example includes Javier
Miyares. Until his appointment as University of Maryland University College President on
October 1, 2012, Mr. Miyares served in an acting capacity for the prior eight months (University
of Maryland University College, 2013). Temporary positions are not limited to the highest levels
of academic organizations. Draper and McMichael (2002) identified that at any one time
approximately ten percent of Scottish schools are being managed by temporary leaders (p. 295).
The private sector is seeing an increased need to utilize interim positions driven by
several factors including cost constraints, availability of candidates, and increased governance
requirements. For example, increased reporting and responsibility requirements as a result of
legislation such as Sarbanes-Oxley and Dodd Frank have placed firm senior leadership in a
position where strategic decisions such as corporate leadership not only carry with them business
responsibilities, but personal liability as well (Mooney, Semadeni, & Kesner, 2013, p. 624).
Sarbanes-Oxley is noted as one factor that is making companies become more vigilant with a
heightened awareness of corporate responsibility (Weber, 2004, p. 35).
Further, Allgood, Farrell, and Kamal (2012) note that increases in CEO turnover since
2002 is likely influenced by Sarbanes-Oxley (p. 1052). The increasing demand and ubiquity
across public and private enterprises makes temporary and interim leadership a critical area to
understand as part of overall firm planning and as an element of organizational performance.
4
Study Purpose and Problem Statement
The purpose of this study is to contribute to an overall management understanding of
term-limited leadership. The role of a term-limited leader is realized at every level of the
organization. Examples of roles include project management, supervisory roles, middle
management, and executive management with individuals coming from a variety of positions
ranging from “individual contributor to institutional leader” (Freedman, 2011, p. 145). Each level
brings with it a unique set of skills where the leader must reinvent himself or herself in some
manner (Freedman, 2011, p 147). Although the specific skill set varies depending upon level, the
term-limited leader must be able to effectively and rapidly adapt and grow into the new,
temporary position. It is essential that not only the individual, but also the organization prepare
effectively for the unique challenges of term-limited leadership needs.
The nature of term-limited leadership positions brings with it the challenges of permanent
management and leadership along with several unique characteristics related to the temporary
nature of the role. These challenges fall into six main categories consisting of acceptance,
capability, selection process, job role, group dynamics, and individual implications. Acceptance
is necessary on multiple levels ranging from the group and subordinates to superiors to internal
and external stakeholders. Unlike the concept of “swift trust” (Meyerson, Weick & Kramer, 1996,
p. 167) where the members of a group bring with them titles, experience, and knowledge that are
readily accepted by others in the group, a term-limited leader often needs to build trust and
respect through other means, but over a relatively short period of time. Capability encompasses
not only the skills that the individual brings with them to the position, but also the ability to
“explore, discover, and learn” (Freedman, 2011, p. 145). Identification of an appropriate
candidate incorporates the selection process, along with its acceptance by stakeholders. Job role
5
can vary depending upon the needs of the organization. Without clarity around expectations and
ongoing guidance, the organization runs the risk of the term-limited leader being unable to
perform to leadership expectations. The leader could also fall into the trap of pursuing extreme
“zealous action” or inaction (Chapman, Chapman, & Lostetter, 1988, p. 83).
Group dynamics and relationships can also be an area of concern as the term-limited
leader transitions into a new role. With a short time to transition, the break from the old role to
the new can be dramatic for the individual as well as the affected group. The title also provides a
different expectation from that of a permanent leader. The interim leader is challenged to gain
the support from others in a situation where they will likely experience another near-term change
in leadership. This situation may lead to others taking it slow and waiting for the next leader or
manager to cycle into the position.
Finally, individual implications must also be considered. The effect on career and
personal life is an element that needs to be balanced against organizational needs. An interim
leader placed into a position often brings with them many aspects of their previous duties in
addition to their new leadership role. Interim leaders are at times performing their interim role
while continuing to support their previous role, creating additional personal burden (Mundt, 2004,
p. 499; Soltys, 2011, p. 123). Aggarwal, Rochford, and Vaidyanathan (2009) find three of the top
five sources of department chair stress are related to time management and the ability to maintain
both department chair duties and academic research (p. 46). Hall (1995) finds from his personal
experience that the duties have a profound effect on “the self and work/life issues” (p. 89). Even
when previous job duties are not carried over, Reed (2012) provides examples of extreme
personal stress resulting in spousal arguments and personal doubt (pp. 188-190).
6
A temporary manager brought in from the outside has the additional challenge of quickly
becoming accepted by the group and overcoming the stigma of being an outsider. Gilmore and
McCann (1983) identify the “entry phase” as a critical period where “in-group/out-group
membership becomes salient” (p. 256). In their study of executive succession, Friedman and
Saul (1991) find that outsiders were associated with high levels of disruption to the group (p.
633). Allgood et al. (2012) identify through succession that internal candidates are more likely to
be a good match in the long-run (p. 1062). Similarly, Zhang and Rajagopalan (2004) identify the
best firm performance correlated with relay succession (p. 496). However, when firm
performance is poor, an organization is less likely to utilize relay succession. This is important
for the role of interim CEO in the case when an emergent need is identified due to firm
performance as opposed to other factors causing the position to be vacated.
Role clarity is another element identified as a contributor to success or failure during an
interim period. One aspect related to role clarity is that of positional authority. While perm
The academic library in the 21st Century: Competencies library directors and senior managers must possess to successfully lead their organizations into the future
No full textAcademic libraries in the 21st century are in the midst of constant and tumultuous change caused by advances in technology, shifting demands of faculty and students, declining budgets, and transformations in publishing and in other methods of acquiring scholarly research. Librarians working in this environment must cope with continuous change while still providing research support to their primary clientele — faculty and students. The objective of this dissertation was to determine which competencies library directors and senior managers should possess to guide their organizations through the current turbulent climate of constant change, and to lead their organizations into the future. An evidence-based systematic review of the literature revealed that competencies associated with transformational leadership were highly valued by academic librarians in an environment of rapid change. Similarly competencies associated with emotional intelligence were highly valued attributes in library directors and senior managers. The research found that leadership and management competencies had universal application regardless of profession. Only knowledge-based competencies associated with a profession were not of value in other fields. Strategies for dealing with radical change such as organizational development, systems thinking, appreciative inquiry, creating a learning organization, re-organization of staff, and the frequency and use of library services assessment were found to be tools used by library directors and senior managers to lead academic librarians through a change initiative. Finally, organizational climate and changing the climate were often the focus of library directors as they sought to diminish resistance to change among academic librarians.Running Head: Future Leadership Competencies in Academic Libraries i
The Academic Library in the 21st Century:
Competencies Library Directors and Senior Managers Must Possess to Successfully Lead Their Organizations into the Future
By John K. Lewis
Dissertation
A Thesis Submitted to the
Graduate Faculty of the
University of Maryland, University College
In Partial Fulfillment of
The Requirements for the Degree of
Doctor of Management
Dissertation Committee:
G. David Andersen, Ed.D.
Eric B. Dent, Ph.D.
Deborah M. Wharff, D.M.
Future Leadership Competencies in Academic Libraries ii | P a g e
Abstract
Academic libraries in the 21st century are in the midst of constant and tumultuous change caused by advances in technology, shifting demands of faculty and students, declining budgets, and transformations in publishing and in other methods of acquiring scholarly research. Librarians working in this environment must cope with continuous change while still providing research support to their primary clientele - faculty and students. The objective of this dissertation was to determine which competencies library directors and senior managers should possess to guide their organizations through the current turbulent climate of constant change, and to lead their organizations into the future. An evidence-based systematic review of the literature revealed that competencies associated with transformational leadership were highly valued by academic librarians in an environment of rapid change. Similarly competencies associated with emotional intelligence were highly valued attributes in library directors and senior managers. The research found that leadership and management competencies had universal application regardless of profession. Only knowledge-based competencies associated with a profession were not of value in other fields. Strategies for dealing with radical change such as organizational development, systems thinking, appreciative inquiry, creating a learning organization, re-organization of staff, and the frequency and use of library services assessment were found to be tools used by library directors and senior managers to lead academic librarians through a change initiative. Finally, organizational climate and changing the climate were often the focus of library directors as they sought to diminish resistance to change among academic librarians.
Keywords: leadership, competencies, leadership competencies, academic libraries, library directors, change management, transformational leadership, emotional intelligence Future Leadership Competencies in Academic Libraries iii | P a g e
Acknowledgements
I would like to thank my committee members, Dr. G. David Andersen, Dr. Eric B. Dent, and Dr. Deborah M. Wharff for their assistance with this dissertation. Dr. Dent, your research on resistance to change helped me to focus my approach to this dissertation. Special thanks to Dr. Andersen who was my primary adviser through the entire dissertation process. He was always positive - encouraging me through the roadblocks, assisting with his incredible skill in APA formatting, and goading me on to my best writing efforts. His herculean labors in reading, commenting on, and rereading all the various versions of this dissertation will always be appreciated. I would also like to thank Dr. John Sherlock for his invaluable research methods course. Before taking your class I really had no idea about how to do a systematic review or what was involved in evidence-based research. What I learned in your course helped me immeasurably as I proceeded with the last four chapters of my dissertation. Also thanks to Dr. Diana Watts and Dr. Thomas Mierzwa for their guidance in writing two journal quality articles in my final two content courses.
I am especially indebted to my expert panel members, the subject matter and practitioner experts, who served as panelists to provide feedback on my dissertation: Dr. Ronald Riggio, the Henry R. Kravis Professor of Leadership and Organizational Psychology at Claremont McKenna College, for his expertise on leadership competencies and his suggestions on creating a library leadership competency model; Dr. Lynn Baird, the Dean of Library Services at the University of Idaho, for her suggestion to add a new section on current and future library challenges to the Introduction of this dissertation; and Dr. Anne Marie Casey, the Director of the Hunt Library at Embry-Riddle Aeronautical University, for pointing out several areas which needed revision and also suggesting a dissertation that was relevant to the topic. Finally, Dr. Jon Cawthorne, the Dean Future Leadership Competencies in Academic Libraries iv | P a g e
of Libraries at West Virginia University, for his encouragement and for suggesting the importance of discovery systems to the library of the future, and his suggestions as to revising the research propositions.
Last but certainly not least, I would like to thank the members of my cohort, my classmates and now friends, who went through this journey every step of the way with me. There is no way I could have gotten through this process without their support and encouragement. I looked forward to every residency so we could gather for dinner and late night conviviality where we would discuss our trials, tribulations, and successes. I would especially like to thank Holly Cicconi-Eggleston, Steve Fritts, Wanda Wagner, and Cheryl De Vose for their collegiality and support. Although there will be no more residencies I hope we will remain friends well into the future. I especially look forward to seeing you all at graduation!
Future Leadership Competencies in Academic Libraries v | P a g e
Dedication
I dedicate this dissertation to my parents John and Elizabeth Lewis. Although my father did not live to see this dissertation completed it is thanks to his financial support over many years of schooling that I was able to complete this work. I am also grateful to my father for the many years of life lessons he provided. His work ethic, perseverance, and fortitude are the model I have tried to live my life by. I would especially like to thank my mother as the person who instilled a life-long love of learning in me. Although she was unable to attend college she was intelligent, curious, and a lover of libraries. From the time I was two years old and she taught me to read using flash cards with words and pictures she hand drew she has always espoused the value of education and learning. Without her support and constant encouragement I would never have been able to complete this dissertation.
I would also like to express my profound gratitude to my life partner, Arlene, for her unqualified support of my doctoral studies and her invaluable assistance with proofreading, Table of Contents construction, and APA formatting. Mostly I would like to thank her for putting up with my short-temperedness, frustration, inattention, distraction, and overall crankiness for the past three and a half years as I tried to complete my classwork and dissertation. I hope these traits will disappear now that I am less busy, but I will probably still be, at least occasionally, cranky. Lastly, I would like to thank, Chloe the Wonder dog, for all her companionship during the long evenings I spent studying, researching, and writing. Without fail she would squeeze up next to me in the recliner long into the night, keeping me company, snoozing, or occasionally poking me with her nose, or putting her paw on my keyboard to let me know it was time to go for a walk. Chloe, there will be plenty of time for walks and ball playing now!
Future Leadership Competencies in Academic Libraries vi | P a g e
Table of Contents
Abstract .......................................................................................................................................... ii
Acknowledgements ........................................................................................................................ iii
Dedication ...................................................................................................................................... v
CHAPTER 1 .................................................................................................................................. 1
INTRODUCTION AND OVERVIEW OF THE RELATED LITERATURE ............................... 1
Introduction and Background ......................................................................................................... 1
The Disruptive Innovation Era.................................................................................................... 2
The OPAC. .............................................................................................................................. 2
Effect of the OPAC on technical services departments. ......................................................... 3
CD-ROMs and online databases. ............................................................................................ 5
Effect of online databases on public services departments. .................................................... 5
Current and future issues for academic libraries..................................................................... 7
Statement of the Problem .............................................................................................................. 10
Significance of the Problem .......................................................................................................... 10
Purpose of the Study ..................................................................................................................... 12
Importance to Management .......................................................................................................... 12
Research Question ........................................................................................................................ 14
Definition of Terms....................................................................................................................... 14
Summary ...................................................................................................................................... 16
Organization of the Dissertation ................................................................................................... 17
CHAPTER 2 ................................................................................................................................ 18
METHODOLOGY ....................................................................................................................... 18
Introduction .................................................................................................................................. 18
Discussion of Evidence-Based Research and Methodology ......................................................... 18
Evidence-Based Research ......................................................................................................... 18
Evidence-Based Management ................................................................................................... 19
Evidence-Based Librarianship .................................................................................................. 19
Systematic Review .................................................................................................................... 20
Need for Systematic Reviews ................................................................................................... 21
Systematic Review - Linkage to Research Question ................................................................ 22 Future Leadership Competencies in Academic Libraries vii | P a g e
Discussion of the Scholarly Research Evidence Tools ................................................................. 23
Research Process ....................................................................................................................... 23
Search Strategy ......................................................................................................................... 24
Data Location ............................................................................................................................ 24
Inclusion/Exclusion Criteria ..................................................................................................... 26
Relevance/Rigor Appraisal ....................................................................................................... 27
Administrative Systems ............................................................................................................ 29
Data Synthesis Approach .......................................................................................................... 30
Meta-ethnography ..................................................................................................................... 31
Discussion of the Use of an Expert Panel ..................................................................................... 33
The Expert Panel Rationale and Process .................................................................................. 33
The Panel Members .................................................................................................................. 34
Panel Members’ Comments ...................................................................................................... 36
Impact on the Dissertation ........................................................................................................ 37
Summary ...................................................................................................................................... 37
CHAPTER 3 ................................................................................................................................ 39
SYSTEMATIC REVIEW OF THE LITERATURE .................................................................... 39
Introduction .................................................................................................................................. 39
Purpose of the Study ................................................................................................................. 40
Research Question .................................................................................................................... 41
Structure of the Systematic Review .......................................................................................... 41
Identification and Discussion of the Theoretical Lenses .......................................................... 41
Theoretical Lens 1: Leader Competencies ................................................................................ 42
Theoretical Lens 2: Change Management ................................................................................ 43
Critical Review and Evaluation of the Literature ......................................................................... 43
Introduction ............................................................................................................................... 43
Leader Competencies in Academic Libraries inside the United States .................................... 45
Overall competencies ............................................................................................................ 45
Emotional intelligence .......................................................................................................... 53
Other competencies ............................................................................................................... 60
Leader Competencies in Academic Libraries outside the United States .................................. 67 Future Leadership Competencies in Academic Libraries viii | P a g e
Leader Competencies in Public and Other Libraries ................................................................ 70
Leader Competencies in Other Fields Undergoing Rapid Change ........................................... 75
Management studies.............................................................................................................. 75
Military and paramilitary studies .......................................................................................... 79
Health care studies ................................................................................................................ 84
Nursing studies...................................................................................................................... 88
Studies of project manager competencies ............................................................................. 94
Cross-Cultural Studies ............................................................................................................ 100
Change Management .............................................................................................................. 104
Organizational development ............................................................................................... 105
Systems thinking ................................................................................................................. 109
Appreciative inquiry ........................................................................................................... 110
Organizational culture ......................................................................................................... 112
Assessment .......................................................................................................................... 113
Strategic planning ............................................................................................................... 114
Learning organizations........................................................................................................ 115
Review of the Research Propositions ......................................................................................... 117
Summary of the Systematic Review ........................................................................................... 117
CHAPTER 4 ............................................................................................................................... 119
ANALYSIS AND DISCUSSION............................................................................................... 119
Introduction ................................................................................................................................ 119
Purpose of the Study ................................................................................................................... 119
Presentation, Summary, and Analysis of the Findings ............................................................... 120
Introduction ............................................................................................................................. 120
Proposition 1: Transformational Leadership .......................................................................... 121
Individualized consideration ............................................................................................... 122
Intellectual stimulation........................................................................................................ 124
Inspirational motivation ...................................................................................................... 126
Idealized influence .............................................................................................................. 128
Transactional leadership ..................................................................................................... 130
Proposition 2: Emotional Intelligence ................................................................................... 131 Future Leadership Competencies in Academic Libraries ix | P a g e
Self-awareness ........
Institution building for sustainability: A multi-case analysis of entrepreneurial networks in distressed rural regions
No full textDistressed rural regions exist throughout the United States and the world. Various economic and social interventions have been made by governments, non-profit agencies, and other institutions to provide relief, often with limited results that were not sustainable. The support of entrepreneurs who start businesses that are locally owned and do not engage in business practices that create environmental and social hazards are seen as a central component in the revitalization distressed regions. However, local businesses often lack the resources that are available to large corporations. This study examined three rural organizations and their social networks in distressed regions of Central Appalachia. A series of interviews was conducted to identify the extent that these organizations provide social capital, marketing assistance, and other essential skills and resources otherwise unavailable to small, local businesses started by entrepreneurs. The results of this study show that networks do increase the number of sustainable enterprises and improve the triple bottom line in distressed regions as well as increase the availability of capital in those regions. Future study is recommended to examine alternative financial strategies for non-profit networks, methods to deepen network relationships, and innovative strategies to develop infrastructure that reduces dependency on outside capital and absentee ownership.ABSTRACT
Title of Dissertation: Institution Building for Sustainability: A Multi-Case Analysis
of Entrepreneurial Networks in Distressed Rural Regions
G. Aubrey Lee, Doctor of Management
Dissertation Directed by: Dr. Thomas Mierzwa
University of Maryland University College
Distressed rural regions exist throughout the United States and the world. Various
economic and social interventions have been made by governments, non-profit agencies, and
other institutions to provide relief, often with limited results that were not sustainable. The
support of entrepreneurs who start businesses that are locally owned and do not engage in
business practices that create environmental and social hazards are seen as a central component
in the revitalization distressed regions. However, local businesses often lack the resources that
are available to large corporations. This study examined three rural organizations and their
social networks in distressed regions of Central Appalachia. A series of interviews was
conducted to identify the extent that these organizations provide social capital, marketing
assistance, and other essential skills and resources otherwise unavailable to small, local
businesses started by entrepreneurs. The results of this study show that networks do increase the
number of sustainable enterprises and improve the triple bottom line in distressed regions as well
as increase the availability of capital in those regions. Future study is recommended to examine
alternative financial strategy for non-profit networks, methods to deepen network relationships,
and innovative strategies to develop infrastructure that reduces dependency on outside capital
and absentee ownership.
Key Words: Distressed Regions, Networks, Sustainability, Institutions, Entrepreneur
Institution Building for Sustainability:
A Multi-Case Analysis
of Entrepreneurial Networks in Distressed Rural Regions
University of Maryland University College
Prepared by
G. Aubrey Lee
December 3, 2011
i
Dedication
This dissertation is dedicated to all those committed to building economies in distressed rural regions
during a time when jobs are scarce and innovative strategies are needed.
ii
Acknowledgements
I would like to thank my wife, Sally, for her tireless support and encouragement throughout my
doctoral program. Without her, I wouldn’t have finished. I would also like to thank Dr. Tom
Mierzwa, my dissertation committee chair. Without his assistance, I would most certainly be
“ABD.”
iii
Table of Contents
Chapter 1-Introduction 1
Overview of the Problem……………………………………………………………………..…... 1
Purpose of Study…………………………………………………………………………………… 3
Research Question…………………………………………………………………………………. 3
Significance of The Study………………………………………………………………………….. 4
Scope of Inquiry ………………..…………………………………………………………...……... 5
Discussion of Key Terms and Concepts…………………………………………………………… 6
Chapter 2-Review of the Literature 8
Introduction and Themes from Literature………………………………………………………….. 8
Institution Building in Distressed Rural Regions…………………………………………………... 8
Social and Entrepreneurial Nature of Distressed Rural Regions…………………………………... 13
Place and Economic Development…………………………………………………………………. 13
Sustainable Management Practices………………………………………………………………… 16
Entrepreneurship and Network Formation…………………………………………………………. 18
Sustainable Entrepreneurship…………………………………………………………………… … 24
Entrepreneurship and Economic Development…………………………………………………… 25
Entrepreneurship and Distressed Regions………………………………………………………….. 26
Network Organization and the New Economy…………………………………………………….. 29
Network Organization and Influence………………………………………………………………. 30
Distressed Regions and Network Formation……………………………………………………….. 37
The Mississippi Delta and the Southeastern Cotton Belt…………………………………………... 40
Western Native American Reservations…………………………………………………………… 42
Rio Grande Border Area…………………………………………………………………………… 42
Central Appalachia: The History and Factors of Regional Distress…….………………………… 43
Literature Summary………………………………………………………………………………... 60
Chapter 3- Conceptual Framework and Research Hypotheses 62
Conceptual Framework…………………………………………………………………………….. 62
Research Hypotheses………………………………………………………………………………. 64
Chapter 4-Research Design, Method, and Approach 65
Research Design……………………………………………………………………………………. 65
Unit of Analysis……………………………………………………………………………………. 68
Case Methodology…………………………….…………………………………………………… 70
Case Selection Criteria……………………………………………………………………………... 72
Threats to Validity………………………………………………………………………………….. 72
Chapter 5- Findings and Analysis 78
Field Methodology and Data Processing……………………………………………………..…... 76
The Case of the Appalachian Center for Economic Networks (ACEnet)………….…………… 78
Interview with Leslie Schaller, ACEnet Program Director……………………..…..…... 79
Interview with Larry Fisher, ACEnet Finance Director………………………………… 91
Interview with Ronda Clark, Community Food Initiatives, Executive Director……….. 94
iv
Interview with Lula Tobin, Lula’s Alterations………………….. ……………………….. 96
Interview with Angie Maiden, President and CEO, ACEnet and ACEnet Ventures……… 97
Interview with Mandy Maughmer, Perform Best Fitness………………………….…….. 98
Casa Nueva Interviews and Observations…………………...……………………………. 98
Interview with Linda Markham and Teddy Fisher, Athens Upscale Attic………….……. 100
ACEnet Summary Data and Analysis…………..…………………………………………. 101
CAN 2010-Report, ACEnet Data……………………………………………………….. 107
The Case of Rural Resources (RR)………………...……………………………………….……… 111
Rural Resources Stakeholder Interviews and Observations…………..…………………... 112
Interview with Sally Causey, Executive Director, Rural Resources…………………..….. 114
Interview with Paul Scala, Accounts Manager, Rural Resources…………...……………. 123
Interview with Richard Spain, Graysburg Hills Farm……………………………………. 126
Interview with Debbie Fogel-Farm and Food Team Training Coordinator…………..…... 130
Interview with Mary Goldman-Primary Teen Trainer…………………………………….. 133
Interview with Robin Carson, Carson Creek Organics………….……………………….. 136
Interview with Rhonda Hensley-Mobile Farmer’s Market Manager………….………….. 140
Interview with Gina Briscoe, Participant and Former Board Member……….…………… 142
Interview with Gabe Hinkley and Charity Conkin, Good Fork Farm……...……………… 145
Interview with Nathan Hudson and Michelle Steiner, Cloud 9 Ranch…….……………… 147
Interview with Dale and Sherry Allen, Serenity Hill Farm…………………………..…... 150
Rural Resources Networking Meeting Documentation……..……………………………. 152
Observation of Networking Meeting and Farm Tour…………….……………………… 153
Interview with Bobby Holt, Senior Vice-President, Green Bank……………..…………. 154
Rural Resources Data Summary……………..…………………………………………… 168
The Case of the Center for Economic Options (CEO)…………….....................………………… 168
Interview with Pam Curry, Executive Director, CEO ……………………………………. 172
Interview with Michael J. Hicks, PhD, Ball State University……………………..………. 179
Interview with Ray Daffner, Appalachian Regional Commission………….…………….. 183
Interview with Anthony Flaccavento, SCALE, Inc……………..……………………….... 195
Interview with Adam Krason, Architect and Principal with ZMM Architects……….…… 199
CEO Summary Data and Analysis……………………………………………………….. 203
CAN Network Ford Foundation Data for CEO………………………………………....... 212
Interview with Thomas Watson, Rural Support Partners…………………………………………. 215
Summary of Thomas Watson’s Responses and Related Data……………………… ……… 227
Conclusions of Hypotheses and Discussion of Evidence……………………………...………. 236
Revised Conceptual Framework…………………………………………………………………… 239
Discussion of Emerging Themes…………………………………………………………………... 239
Chapter 6-Implications for Management 243
Implications for Management Theory……………………………………………………………… 243
Implications for Management Practice……………………………………………………………. 245
Recommendations for Future Research……………………………………………………………. 247
Generalization of Results to Other Distressed Regions……………………………………...…….. 248
References……………………………………………………………………………….....……..... 254
Appendix A-Study Protocol………………………………………………………………………. 279
Appendix B-Interview Name Abbreviations, Network and Category……...…………………….... 288
v
List
of
Tables
Table
1
Reliability
and
Validity
Tactics………………………………………………
73
Table
2
ACEnet
H1Responses………………………………………….……………….
101
Table
3
ACEnet
H2
Responses……………………………………….…………………
102
Table
4
ACEnet
Emerging
Theme
1…………………………………………………..
107
Table
5
ACEnet
Emerging
Theme
2…………………………………………………..
104
Table
6
ACEnet
Emerging
Theme
3…………………………………………………..
104
Table
7
ACEnet
Emerging
Theme
4…………………………………………………..
104
Table
8
ACEnet
Emerging
Theme
5…………………………………………………..
106
Table
9
ACEnet
Emerging
Theme
6……………………………………………………
107
Table
10
ACEnet
Intellectual
Capital……………………………………………………
108
Table
11
ACEnet
Social
Capital……………………………………………………………
109
Table
12
ACEnet
Individual
Capital……………………………………………..………
109
Table
13
ACEnet
Natural
Capital…………………………………………………………
109
Table
14
ACEnet
Built
Capital…………………………………………………………..…
110
Table
15
ACEnet
Financial
Capital…………………………………………….…………
110
Table
16
County
Farm
Statistics……………………………………………….…………
110
Table
17
RR
H1
Responses…………………………………………………………….……
156
Table
18
RR
H2
Responses………………………………………………………….………
159
Table
19
Greene
County
Farm
Summary
Highlights……………………………
161
Table
20
RR
Emerging
Theme
1
…………………………………………………………
163
Table
21
RR
Emerging
Theme
2…………………….……………………………………
165
Table
22
RR
Emerging
Theme
3……………………….…………………………………
166
Table
23
RR
Emerging
Theme
4……………………….…………………………………
166
Table
24
RR
Emerging
Theme
5………………………….………………………………
167
Table
25
RR
Emerging
Theme
6………………………….………………………………
168
Table
26
CEO
H1
Responses………………………………………….……………………
203
Table
27
CEO
H2
Responses…………………………………………………….…………
205
Table
28
CEO
Emerging
Theme
1…………………………………………………..……
206
Table
29
CEO
Emerging
Theme
2………………………………………………………..
207
Table
30
CEO
Emerging
Theme
3………………………………………………………..
208
Table
31
CEO
Emerging
Theme
4………………………………………………………..
209
Table
32
CEO
Emerging
Theme
5………………………………………………………..
210
Table
33
CEO
Emerging
Theme
6………………………………………………………..
201
Table
34
CEO
Intellectual
Capital…………………………..……………………………
213
Table
35
CEO
Social
Capital………………………………………………………………..
213
Table
36
CEO
Individual
Capital…………………………………….……………………
213
Table
37
CEO
Natural
Capital…………………………………………………..…………
214
Table
38
CEO
Built
Capital…………………………………………………………………..
214
Table
39
CEO
Financial
Capital…………………………………………………………...
214
Table
40
Watson
H1
Responses
…………………………………………………………
227
Table
41
Watson
H2
Responses………………………………………………………….
227
Table
42
Watson
Emerging
Theme
1………………………………………………….
227
vi
Table
43
Watson
Emerging
Theme
2………………………………………………….
227
Table
44
Watson
Emerging
Theme
3………………………….………………………
228
Table
45
Watson
Emerging
Theme
4………………………………………………….
228
Table
46
Watson
Emerging
Theme
5………………………………………………….
228
Table
47
Watson
Emerging
Theme
6……………….…………………………………
229
Table
48
CAN
Intellectual
Capital……………………………………………………….
230
Table
49
CAN
Social
Capital………………………………………………………………..
230
Table
50
CAN
Individual
Capital………………………………………………………….
231
Table
51
CAN
Natural
Capital……………………………………………………………..
231
Table
52
CAN
Built
Capital………………………………………………………………….
231
Table
53
CAN
Financial
Capital……………………………………………………………
232
List
of
Figures
Figure
1
Conceptual
Framework………………………………………………………….
63
Figure
2
Research
Process
Steps…………………………………………………….……
71
Figure
3
Threatened
Farmlands
in
Tennessee……………………………………..
115
Figure
4
Farm
Subsidies
Over
Time……………………………………………………..
116
Figure
5
Patient
Capital………………………………………………………………….……
233
Figure
6
Revised
Conceptual
Framework
and
Recommendations……….
239
vii
Chapter 1 – Introduction
Overview of the Problem
The need for enterprises of all types--private businesses, public agencies, and nonprofits--to
manage and operate in a sustainable manner is becoming increasingly important in today’s
business world. Daly and Cobb (1989) call for the redirection of the economy toward the
betterment of local communities, the environment and a future that is sustainable. They
distinguish between economic growth and sustainable development, noting that the former refers
to quantitative measures using only financial indices, and the latter that focuses on a holistic
view of improved living standards and protection and preservation of the natural environment.
This is particularly relevant for distressed rural regions that sometimes stagnate in the wake of
closed businesses, environmental degradation, and outmigration of their population to urban
areas. Such regions often suffer from a lack of effective institutions and limited forms of capital
available in more prosperous regions.
The literature reveals that the support of entrepreneurs who start businesses that are
locally owned and do not engage in business practices that create environmental and social
hazards may be a central factor in the revitalization distressed regions (Murdoch, 2000).
However, local businesses often lack the resources that are available to large corporations.
Networks in distressed regions that provide social capital, marketing assistance, and enhance
other essential skills are found to have enjoyed success in various settings throughout the world
and provide resources that would otherwise be unavailable to small, local businesses (Henderson,
2002; Perry, 1984; Glasmeier & Farrigan, 2003).
In order to fully understand how entrepreneurs in distressed regions are supported by
networks, it is essential to understand the nature of rural entrepreneurship and factors that cause
2
individuals to start new sustainable ventures in distressed regions. This will require examining
the region’s culture and the unique attributes of their place-based resources that support activities
such as farming and related businesses once embedded in the culture and an important source of
income for many residents (Bridger and Luloff, 1999). Natural resources, although often
exploited, can also be a key element in the region’s entrepreneurial activity
(Cornell & Kalt,
1992; Rosenfeld, 2001).
It is also important to examine the root causes of the present socio-economic and
environmental degradation in distressed rural regions. Rural regions sometimes lack the support
of institutions found in more populous urban areas. The vestiges of repressive, institutionalized,
socio-economic structures sometimes impact rural distressed regions even though these
structures been formally disbanded (Acemoglu & Robinson, 2006; Gilbert, 1988).
Understanding what constitutes sustainable businesses activity and how and why some
entrepreneurs undertake sustainable enterprises is critical. This is particularly true since some
past economic development efforts have had long-term detrimental effects to distressed regions.
Such efforts included strategies that focused on recruiting absentee-owned businesses, reliance
on extractive industries and industrial farming-all of which have often proven unsustainable
(PARC, 1964; Fox & Murray, 2004). This result has been demonstrated by the large number of
manufacturing jobs that have exited some distressed regions, precipitated in part by free trade
agreements that facilitated the relocation of many companies to other nations.
In regions where farming is an integral part of the region’s socioeconomic fabric,
mechanized farming conducted by agribusiness firms has negatively impacted local farmers
(Morrisey, 1988). During prosperous economic times, dominance by one business sector or even
one company seldom poses problems. However, the security offered by a historically stable
industry or company can come to a sudden halt if, for example, farm subsidies end, natural
3
resources become depleted, or the manufacturing plant that is the area’s primary employer closes
its doors (Economic Policy Institute, 2001;Shuman, 1998). The immediate effect is loss of
income for those employed. However, the dependency that has developed over years of
dominance by one employment source can counter stimulation of entrepreneurship and leave a
population without the skills or inclination to start new enterprises (Dabson, 2001). Past
unsustainable business practices in industries such logging, mining, large-scale farming, and
absentee-owned manufacturing are factors that contributed to economic distress in some rural
regions of the United States. In some instances, distress has been enhanced by vestiges of
repressive institutional barriers that thwarted personal economic advancement for much of the
population. In addition to causing economic distress, unfavorable social and environmental
conditions have resulted, creating in what could be termed “triple-bottom line” distress.
Purpose of the Study
This dissertation will feature an examination of network participation in distressed rural
regions and how those networks assist in the development and support of sustainable local
enterprises. An overview of the causes of persistent socio-economic and environmental distress
will be reviewed to provide the reader with an historical background of these regions. It is
expected that further understanding of how network participation stimulates and supports
entrepreneurs will add to the effectiveness of networks operating in distressed rural regions.
Research Question
This dissertation will examine networks in distressed rural regions to document and
illuminate the actions these networks employ to assist institutions that support sustainable
entrepreneurs in the region. The central question of the dissertation is: Do high levels of
network participation in distressed rural regions assist entrepreneurs in the creation of firms
that engage in sustainable business practices? This question was derived from a review of the
4
literature that illuminates the factors that influence entrepreneurship, networks and sustainability.
Personal observation while employed in various organizations in Central Appalachia,
management consulting with small Central Appalachian businesses, many of which were started
by entrepreneurs, and the researcher’s experiences as a lifelong resident of the region were other
key factors that motivated this research.
Significance of the Study
Market systems based on social norms or networks are characterized as informal
institutions and exist for the promotion market transactions (Fehr & Gächter, 2000). Firms are
characterized as institutions created around specialization, interdependence, differentiation and
integration (Lawrence & Lorsch, 1967; Smith, 1776; Thompson, 1967). Institutions in general
consist of rules and organizations that coordinate human behavior and enable people to plan for
themselves, their families and the larger community. Properly organized, institutions enable
people to contribute to the well-being of others (World Bank, 1999). Institutions are social
assets in that they can govern behavior if strong, but can be liabilities if weak or founded on bad
intent. Many historians, social scientists, sociologists, political scientists, and economic
anthropologists explain the disparity in economic growth from one region to another on the
specific “embeddedness” of economic behaviors into broader networks of social interactions and
institutions. Distressed rural regions often lack many institutions, networks and structures that
are in place and functioning in some prosperous regions” (Dosi et al 1994).
Networks are a widely studied management topic that scholars believe have potential to
provide a means for economic development in distressed rural regions (Rosenfeld, 2001;
Murdoch, 2000.) Networks can be classified according to two general categories: Vertical-those
that seek to stimulate development through connection to the outside world through, for
example, food supply chains; and horizontal-those that support local entrepreneurs and other
5
established business by making available the various types of capital available to more urban or
developed areas (Murdoch, 2000). This dissertation examines the latter category and seeks to
determine whether high levels of network participation in distressed regions provide support to
entrepreneurs who engage in sustainable business practices. It will also examine factors that are
present in successful network-to-network participant relationships, including how, at the micro-level,
entrepreneurs participate in networks
to
exchange
information,
attract
various
types
of
capital
through
network
participation,
and
add
to
the
body
of
knowledge
about
networks
in
distress
Fiat and globalization effects
No full textThe phenomenon of globalization presents a unique conundrum in the sense that it operates in two paradigms which function in perpetual conflict with one another. Those paradigms are alienation and expansion. In other words, while globalization provides a collapse of time and broadening conceptualizations of the local through extended networks of communication and contact, it nonetheless creates a sense of isolation of both the individual and larger social communities from the processes through with it participates. As Charon (2013) has shown, “The nineteenth and twentieth centuries were times where the world was becoming increasingly mechanized, industrialized, urbanized, and bureaucratized. Society became dependent on science, faced rapid social change, and emphasized individuation” (p. 177). Fiat, a multinational company originally based in Turin, Italy, is a prime example of how this phenomenon takes place. While the modernist, industrial developments of the nineteenth and twentieth centuries expanded the estrangement of workers from modes of production, postmodernity and its correlative processes of globalization further complicate this odd business of simultaneous estrangement and involvement through shifts to an economy that appears to have no single foundation. One is left to wonder what happens to an Italian economy once Fiat departs its homeland. For some critics, the development of the brand as a model of Italian culture in proximity to U.S. markets can only benefit Italy. For others, such a move marks the beginning of the decline of Italian economic and cultural robustness. This paper explores the effects of Globalization on Italy’s most prominent automotive company, and how it faced and subsumed Globalization.FIAT AND GLOBALIZATION EFFECTS
By Madeline Morrell
Major: Communications
Minor : Sociology
Email: [email protected]
FIAT AND GLOBALIZATION EFFECTS 2
What Fiat‟s Brand Can Tell Us about Community and Globalization
Introduction
The phenomenon of globalization presents a unique conundrum in the sense that it operates in two paradigms which function in perpetual conflict with one another. Those paradigms are alienation and expansion. In other words, while globalization provides a collapse of time and broadening conceptualizations of the local through extended networks of communication and contact, it nonetheless creates a sense of isolation of both the individual and larger social communities from the processes through with it participates. As Charon (2013) has shown, “The nineteenth and twentieth centuries were times where the world was becoming increasingly mechanized, industrialized, urbanized, and bureaucratized. Society became dependent on science, faced rapid social change, and emphasized individuation” (p. 177). Fiat, a multinational company originally based in Turin, Italy, is a prime example of how this phenomenon takes place. While the modernist, industrial developments of the nineteenth and twentieth centuries expanded the estrangement of workers from modes of production, postmodernity and its correlative processes of globalization further complicate this odd business of simultaneous estrangement and involvement through shifts to an economy that appears to have no single foundation. One is left to wonder what happens to an Italian economy once Fiat departs its homeland. For some critics, the development of the brand as a model of Italian culture in proximity to U.S. markets can only benefit Italy. For others, such a move marks the beginning of the decline of Italian economic and cultural robustness. This paper explores the effects of Globalization on Italy‟s most prominent automotive company, and how it faced and subsumed Globalization.
FIAT AND GLOBALIZATION EFFECTS 3
Benefits to Globalization
Based in Italy for over 100 years, Fiat decided to close its Italian headquarters and move the base of its enterprise to the United Kingdom as of 2013. In conjunction with this move, the company acquired Chrysler in a strategy that intends to develop its association with U.S.-based markets, specifically the New York Stock Exchange. In October 2013, Fiat joined the NYSE as Fiat Chrysler Automotives NV. According to a report from the Daily Herald (2013), “By combining resources with the U.S. carmaker, the company formerly known as Fabbrica Italiana di Automobili Torino can better compete with heavyweights like General Motors Co,. Volkswagen AG and Toyota Motor Corp.” (p. 1). While Fiat already had pre-existing production bases and affiliate markets in Poland, Turkey, Argentina and Brazil, among others, the move out of Italy and a merger with Chrysler solidifies its presence in the global marketplace. From the perspective of Erik Gordon, a professor at the University of Michigan, “Marchionne (Fiat‟s CEO) doesn‟t want to abandon Italy; he wants FCA and himself to be global players, and the center of gravity of FCA has to be repositioned in order to do that” (Daily Herald, 2014, p. 1). Yet it bears mentioning that the Italian ego must be suffering at least a little bit with such a dramatic move.
Requiring the assistance of U.S. markets to survive does not exactly signal potency and reminds one of the Noel Hypothesis. As two entities with differentials in power and culture come together, it is quite likely that ethnocentrism will result. However, in a global climate characterized by postmodernist approaches to individual and corporate identity, it is precisely the competence of the brand itself that will determine the success of the newly constructed relationship. As stated by Smith and Doyle (2002), “The growth of multinationals and the globalization of their impact is wrapped up with the rise of the brand. One strategy is to try and establish particular brands as an integral part of the way people understand, or would like to see, FIAT AND GLOBALIZATION EFFECTS 4
themselves. Significantly, the focus on brand rather than the inherent qualities of the product as well as advantaging multinationals in terms of market development also has an Achilles heel. Damage to the brand can do disproportionate harm to sales and profitability. If a brand becomes associated with failure or disgrace, then it can face major problems in the marketplace” (p. 4). After near bankruptcy in the early 2000s, Fiat‟s departure from Italy is an attempt to keep the brand fresh in the eyes of the world while satisfying its stakeholders and maintaining the morale of the Italian people. In this way, globalizing Fiat‟s presence in the world marketplace will serve to keep the company alive, allowing it to flourish as a company that represents Italian café culture, youth, stylized functionality and fun in relation to other car companies such as Volkswagen. The commercial success of Fiat so far is apparent in its sales and popularity among urban car buyers. Its 2013 campaign depicting Fiat cars “immigrating” to the U.S. succeeded enough to keep the shareholders on board.
Drawbacks to Globalization
But what does it mean for the Italian economy, and specifically, the Italian employee of Fiat? Ironically, in relation to its numbers of internationally-based employees, only a small percentage of its employees are actually Italian. In the early 1990s, Fiat developed a globalization strategy called the “178 project.” Its aim was to expand its production affiliates east to Poland and Turkey and southwest, to Argentina and Brazil. This plan was in response to growing competition within the regional Italian car market. According to (Balcet and Enrietti, n.d.), “The project of a world car, specifically oriented to the needs of emerging countries, represents the transition from multi-domestic and multi-regional configurations towards what we can define as a „focused globalisation’ strategy. The innovative idea was to produce a world car especially oriented to the needs of emerging countries. At the time, Italy was the location of the FIAT AND GLOBALIZATION EFFECTS 5
platform of the 178 project, where the models of this family have been developed, and the source of component exports, while production involved several main integrated poles and a number of assembly units in emerging or developed countries” (p. 12). While some Italian workers have been displaced, most of them found new employment in other firms of the Fiat Group. Marchionne has vowed to keep the Italian factories open and rehire 30,000 of its workers, most of who are on layoff (Ebhardt, & Lepido, 2014). That strategy has brought Fiat to where it is today. After extending its reach to other regions, it created brand success and trust from both the public and its shareholders. But there are significant drawbacks to Fiat‟s plan. While it had to move because the regional Italian base was too provincial and not mighty enough to sustain its success, what is to say that its brand appeal will continue to satisfy the fickle desires of American consumers? In some ways, by joining with Chrysler and Americanizing its identity, Fiat is in many ways potentially falling prey to a kind of McDonaldization of the brand (Ritzer, 2013). Time has yet to determine how the company will fare in this newly renovated role.
Conclusion
The benefits and drawbacks to Fiat‟s globalization strategy are multifaceted. One of the most pressing concerns is its influence on local communities as well as the competition it faces due to its globalization. As Smith and Doyle (2002) remind us, “Multinationals can impact upon communities in very diverse places. First, they look to establish or contract operations (production, service and sales) in countries and regions where they can exploit cheaper labour and resources” (p. 5). Fiat must show that it has an ethical commitment to the regions in which it continues to set up shop. While its continued and expanding global presence may not directly relate to the Italian worker, a postmodern perspective shows that brand affiliation may actually be a good thing for the Italian economy by maintaining a sense of Italian culture and values and FIAT AND GLOBALIZATION EFFECTS 6
sharing its vision with the rest of the world. In many ways then, Fiat‟s expansion has the potential to expand how we understand globalization and its effects and it unfolds before our eyes. How Fiat will handle this newfound identity has yet to be demonstrated. Perhaps the brand itself will function as a mechanism that brings people closer together through the simple pleasure of driving a well-made car.” Much like VW‟s “people car,” Fiat gives us “world car.”
FIAT AND GLOBALIZATION EFFECTS 7
References
Balcet, G. & Enrietti, A. (n. d.) The impact of focused globalisation in the Italian automotive
industry. Retrieved online from http://www.econ.uniurb.it/zanfei/convegno/papers/balcet_enrietti.pdf
Charon, J. (2013). Ten questions: A sociological perspective. Belmont, CA: Wadsworth.
Daily Herald (Arlington Heights, IL). (2014). (n. d.). Fiat says ciao to Italy with vote. Retrieved
online from http://www.highbeam.com/doc/1G1-377303054.html
Ebhardt, T., & Lepido, D., (2014). Fiat says ciao to Italy as merger with Chrysler ends era. Bloomberg. Retrieved from http://www.bloomberg.com/news/2014-07-31/fiat-says-ciao-to-italy-as-merger-with-chrysler-ends-era-cars.html.
Ritzer, G. (2013). The McDonaldization of society. Thousand Oaks, Calif.: SAGE.
Smith, M. K. & Doyle, M. (2002). Globalization encyclopedia of informal education. Retrieved
from www.infed.org/biblio/globalization.htm
Volpato, G. (n. d.) Fiat Auto: Toward globalization. Ca‟ Foscari University, Venice, Italy.
Retrieved online from http://dspace.mit.edu/bitstream/handle/1721.1/743/volpato1.pdf