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Moving beyond member loyalty: An exploration of activism in professional associations
No full textNon-Profit Professional Associations (NPPAs) are working under an outdated membership model that does not adequately serve either the organization or its members in today's increasingly complex and globally diverse environment. A continued focus on maintaining member satisfaction and member loyalty is no longer sufficient as a variety of economic and competitive forces are coming together to challenge the value that members derive from the NPPA’s paid membership model. This dissertation proposes that NPPAs must address these challenges by increasing the value proposition for its loyal members and converting them into activists who hold an unwavering commitment to the ideals, values, and mission of the NPPA. Through an examination of the principles and theories of group membership and the inherent needs that people have to assimilate, distinguish, and socially define themselves through their participation in groups, this study will propose a model that creates sustainable value for both the NPPA and its members.Running Head: MOVING BEYOND MEMBER LOYALTY 1
Moving Beyond Member Loyalty: An Exploration of Activism in Professional Associations
Victor R. Carter-Bey
A ThesisA ThesisA Thesis A Thesis
Submitted to the Submitted to the Submitted to the Submitted to the Submitted to the Submitted to the Submitted to the
Graduate Faculty Graduate Faculty Graduate Faculty Graduate Faculty
of
University of Maryland College University of Maryland College University of Maryland College University of Maryland College University of Maryland College University of Maryland College University of Maryland College
in Partial Fulfillment of in Partial Fulfillment of in Partial Fulfillment of in Partial Fulfillment ofin Partial Fulfillment of in Partial Fulfillment of
The Requirements for the Degr The Requirements for the Degr The Requirements for the Degr ee
of
Doctor of Management Doctor of Management Doctor of Management
Faculty: Faculty: Faculty:
Dr. Sharon Dr. Sharon Hadary
Dr. Dennis Winters Dr. Dennis Winters Dr. Dennis WintersDr. Dennis Winters Dr. Dennis Winters Dr. Dennis Winters MOVING BEYOND MEMBER LOYALTY 2
Dedication
I primarily dedicate this project to my wife, Melissa Carter-Bey, whose unrelenting love and support allowed me to manage through this project over the last three years. I will forever be grateful to you for allowing me to invest the time, energy, and money to pursue this lifelong dream. I also dedicate this project to my three beautiful children, who are my reason for being — Sydney Carter-Bey, Julian Carter-Bey and Sean Carter-Bey. Thank you all for being such great sources of inspiration and relief as I worked through this project.
I also dedicate this project to my mother, Claressa Bey, who at an early age provided me life changing opportunities through education that not only shaped my character, but ultimately afforded me equally life changing gifts and memories which I will always cherish. I also dedicate this to my sister Vicki Morgan and my brother Vincent Carter-Bey for allowing me to set an example and be what I hope is a positive role model in their lives. I also want to dedicate this to the maternal rock of our family — my grandmother, Lottie Robinson — a woman of great courage and amazing strength. Finally, I also dedicate this to my extended family of in-laws who have inspired me with their love, support, and well wishes throughout this project.
MOVING BEYOND MEMBER LOYALTY 3
Acknowledgement
As most of this project was completed during my tenure with the Project Management Institute (PMI), I must thank PMI for its flexibility and patience as I worked to complete this project. A company that knows the value of professional and employee development, PMI is a world-class organization.
I must also thank Dr. Sharon Hadary and Dr. Dennis Winters for their passion, energy, frankness, savvy, intelligence, and support. Dr. Hadary and Dr. Winters are two of the most incredible and passionate educators that I have had the opportunity to work with and this project would not have been possible without their help, support, and guidance.
Finally, to my UMUC cohort which was so great to work with throughout this doctoral pursuit. You all were a great source of inspiration and I could not have asked for a better group with which to embark upon and complete this journey.
MOVING BEYOND MEMBER LOYALTY 4
Table of Contents
Dedication ...................................................................................................................................... 2
Acknowledgement .......................................................................................................................... 3
Table of Contents ............................................................................................................................ 4
List of Figures ................................................................................................................................ 7
Abstract .......................................................................................................................................... 8
Chapter 1: Introduction ................................................................................................................... 9
Problem Statement: The NPPA Member Loyalty and Public Goods Issue ................................ 9
The member loyalty issue ...................................................................................................... 10
The public goods issue. ......................................................................................................... 13
Scope of the Research ............................................................................................................... 18
Purpose of the Dissertation ....................................................................................................... 23
Key Assumptions ...................................................................................................................... 24
Research Question .................................................................................................................... 24
Propositions.............................................................................................................................. 25
Key Definitions ......................................................................................................................... 25
Organization of Dissertation Chapters ...................................................................................... 26
Chapter 1 Summary & Conclusion ........................................................................................... 27
Chapter 2: Literature Review ........................................................................................................ 28
Membership /Group Theories ................................................................................................... 28
Identification Theories .............................................................................................................. 31
Social-identification and interrelated theories. ...................................................................... 31
Organizational identification. ................................................................................................ 41
Consumer-company identification. ....................................................................................... 43
Branding and brand identity...................................................................................................... 48
Customer Loyalty...................................................................................................................... 52
Activism ................................................................................................................................... 57
Attitudinal Traits and Out-Group Grievances. ...................................................................... 59
Structural Availability and Network Ties (Prior History of Activism). ................................ 61 MOVING BEYOND MEMBER LOYALTY 5
Cost versus Benefit Analysis/Incentive Analysis. ................................................................. 64
Barriers to Participation. ........................................................................................................ 66
Chapter 2 Summary & Conclusion ........................................................................................... 67
Chapter 3: Conceptual Framework ............................................................................................... 68
The Model ................................................................................................................................ 68
Maslow’s Theory of Human Needs .......................................................................................... 70
Optimal Distinctiveness Theory ............................................................................................... 70
Theories on Why People Join Groups ...................................................................................... 71
Conflict between Self-Goals and Group Goals ......................................................................... 73
Resolving Self vs. Group Conflict: Social Identification ......................................................... 75
Social Identification Leads to Loyalty ...................................................................................... 76
Group Loyalty Leads to the Creation of In-group versus Out-group Bias ............................... 78
Organizational Identification .................................................................................................... 79
Creating NPPA Organizational Identifications through Branding ........................................... 80
Joining a NPPA Cause: Theories Behind the Decision to Serve as an Activist ....................... 83
Call to Activism is Propelled by In-group versus Out-group Conflict ..................................... 84
Factors that Move NPPA Members to Activism ...................................................................... 87
Benefits of Serving as a NPPA Activist ................................................................................... 88
Chapter 3 Summary and Conclusion ........................................................................................ 88
Chapter 4: Research Methods ....................................................................................................... 91
Introduction ............................................................................................................................... 91
Description and Overview of Evidence Based Research Process ............................................ 91
Conducting the Systematic Review .......................................................................................... 95
Plan the Review ........................................................................................................................ 96
Locate the Studies ..................................................................................................................... 97
Appraise the Contributions ..................................................................................................... 102
Analyze and Synthesize the Information ................................................................................ 103
Report the Best Evidence ........................................................................................................ 107 MOVING BEYOND MEMBER LOYALTY 6
Expert Panel Review ............................................................................................................... 108
Chapter 4 Summary and Conclusion ...................................................................................... 109
Chapter 5: Findings ..................................................................................................................... 110
Introduction ............................................................................................................................. 110
Findings...................................................................................................................................... 111
Linkages between Social Identification and Activism ............................................................ 113
Linkages between Organizational Identification and Branding .............................................. 115
Increasing the NPPA Member’s Organizational Identification .............................................. 117
Linkages between Organizational & Social Identification and Activism ............................... 118
Going Beyond Member Loyalty ............................................................................................. 122
Using Branding to Go Beyond Member Loyalty .................................................................... 124
The Role of Volunteerism and Co-Production in Moving Members Beyond Loyalty ........... 125
The Personal Benefits of Activism ......................................................................................... 125
Limitations .............................................................................................................................. 128
Role conflict. ....................................................................................................................... 128
Organizational claims. ......................................................................................................... 129
Unfair biases against out-groups. ........................................................................................ 129
Ability to overcome the public goods perception of NPPA membership. .......................... 130
Conclusion .............................................................................................................................. 131
Chapter 6: Implications ............................................................................................................... 133
Implications for Management Theory .................................................................................... 133
Implications for Management Practice ................................................................................... 137
Discussion and Conclusion ..................................................................................................... 144
Appendix .................................................................................................................................... 150
References .................................................................................................................................. 161
MOVING BEYOND MEMBER LOYALTY 7
List of Figures
Figure 1. The top five issues CEOs are more concerned about now than they were last year. .....12
Figure 2. Areas of Engagement. ....................................................................................................19
Figure 3. Brewer’s Abscissa Model. .............................................................................................39
Figure 4. Aaker’s Branding Model. ...............................................................................................49
Figure 5. NPPA Social Identification and Activism Model . ......................................................69
Figure 6. Theories Behind the Decision to Join a NPPA. .............................................................72
Figure 7. Conflict between Self-Goals and Social Goals. .............................................................75
Figure 8. Social Identification Leading to Loyalty. ......................................................................78
Figure 9. The Constituents and Communicators of Identity. ........................................................81
Figure 10. Propelling Members to Activism . ..............................................................................87
Figure 11. Quality Ratings of the Chapter 2 Literature Using the Reay et al. (2009) Rubric . ..107
Figure 12. Concentric Social Identification Circles . .................................................................113
Figure 13. NPPAs as Stewards of Innovation . .........................................................................141
Figure A1. Reasons for Not Renewing . .....................................................................................150
Figure A2. Motives for Activism . ..............................................................................................151
Figure A3. List of UMUC OneSource Databases . .....................................................................152
Figure A3. List of All Sources from Literature Review . ..........................................................153 MOVING BEYOND MEMBER LOYALTY 8
Abstract
Non-Profit Professional Associations (NPPAs) are working under an outdated membership model that does not adequately serve either the organization or its members in today's increasingly complex and globally diverse environment. A continued focus on maintaining member satisfaction and member loyalty is no longer sufficient as a variety of economic and competitive forces are coming together to challenge the value that members derive from the NPPA’s paid membership model. This dissertation proposes that NPPAs must address these challenges by increasing the value proposition for its loyal members and converting them into activists who hold an unwavering commitment to the ideals, values, and mission of the NPPA. Through an examination of the principles and theories of group membership and the inherent needs that people have to assimilate, distinguish, and socially define themselves through their participation in groups, this study will propose a model that creates sustainable value for both the NPPA and its members.
Keywords: professional associations, membership, social identification, loyalty, activism MOVING BEYOND MEMBER LOYALTY 9
Chapter 1: Introduction
Problem Statement: The NPPA Member Loyalty and Public Goods Issue
Non-Profit Professional Associations (NPPAs) are mission-based organizations that advocate on behalf of the world’s professions. Through the promulgation of best practices and the development of product offerings, in the form of professional standards, research-based journals, certifications, professional education, and training, NPPAs set the standard of quality and the rules of practice within a given profession (Rusaw, 1995). While the development of such products and services is one of the NPPA’s primary objectives, another is to deploy these products into a culturally competitive marketplace with a membership-gaining efficacy that ultimately generates a sufficient level of income for the NPPA to thrive and focus on its mission. While on the one hand these products are being either sold or given to the NPPA’s dues paying members as a member benefit, on the other hand they are being either sold or given to the non-dues paying public as a means of advancing the NPPA’s underlying profession — thereby creating a conflict that is germane to this dissertation.
The dues that the NPPA’s members pay are a considerable component of the NPPA income stream and NPPAs depend upon the income generated from membership dues to fund the organization’s operations (O’Neil & Willis, 2005). As an example, research from the American Society of Association Executives reports that the median proportion of total revenues that comes from NPPA membership is approximately 45% (“A Strong Showing,” 2012). While 55% of the NPPA’s income comes from a diverse product and services line and includes some of the offerings as earlier indicated such as training and research journals, the income from membership dues is one of the single largest income streams for NPPAs. While the depth and diversity of the NPPA’s product and service offerings mitigates some of the NPPA’s financial risks, the fact that MOVING BEYOND MEMBER LOYALTY 10
45% of the income typically comes from one category is a business risk. If one were to use the analogy of “putting all of their eggs into one basket”, the risk of having such a large percentage of the NPPA’s income in one singular category is that should membership acquisition or retention rates drop in a significant manner, one of the single largest income streams of the NPPA would consequently suffer. While product diversification would allow for the financial risk to be spread across a number of categories, the NPPA’s financial and business risks would persist given the disproportionately large size of the membership income stream relative to that of the NPPA’s other product offerings. This dissertation will look beyond diversification strategies, however, and make the argument that NPPAs must strengthen the membership offering and increase their overall member value proposition so that their members go beyond being loyal to the NPPA and commit themselves as activists who espouse to the values, principles, and mission of the NPPA. Taking this course of action will mitigate the NPPA’s overall financial risk by strengthening the value proposition of NPPA membership and encouraging all NPPA members, particularly those who are loyal, to continue serving as dues paying members.
The member loyalty issue. Before discussing any strategies that compel the NPPA’s members to go beyond being loyal, it is critical to first understand the role that loyalty plays in the NPPA business model. Loyalty is defined by Oliver (1999) as “a deeply held commitment to re-buy or re-patronize a preferred product/ser
Middle management research in strategic management textbooks: A clouded perspective
No full textThere is evidence that middle management involvement in the formation of strategy leads to improved strategic decision-making, commitment to strategy, strategy implementation, and ultimately, organizational performance. The realization of these benefits depends, in part, on the effective dissemination of this research to current and future management practitioners. Whether textbooks, long-employed in higher education as a knowledge transfer mechanism, successfully integrate research offering a new paradigm or perspective, has recently been questioned. This study investigates the extent to which widely-adopted strategic management texts integrate the potentially valuable research on middle management involvement in strategy formation, given the longstanding top management perspective in strategic management research. A systematic review of the middle management strategy literature, and a content analysis of current strategic management textbooks, reveals that while the texts broadly suggest the involvement of managers beyond those in top management in the formation of strategy, there are few references to or inclusion of the research specific to middle manager involvement. These findings raise questions about the effectiveness of textbooks in preparing students to engage as middle managers in the strategic management of the firm, and the subsequent implications for organizational performance.MIDDLE MANAGEMENT RESEARCH IN STRATEGY 1
Middle Management Research in Strategic Management Textbooks: A Clouded Perspective
Laura Frost
A Thesis
Submitted to the
Graduate Faculty
of
University of Maryland University College
in Partial Fulfillment of
The Requirements for the Degree
of
Doctor of Management
Dennis Winters, Ph.D.
Sharon Hadary, Ph.D.
24 April 2014
MIDDLE MANAGEMENT RESEARCH IN STRATEGY 2
Table of Contents
Abstract .......................................................................................................................................... 7
1: Introduction ................................................................................................................................ 8
Problem Statement .................................................................................................................... 11
Study Scope and Significance ................................................................................................... 12
The significance of the university and textbooks. ................................................................ 13
The significance of middle management .............................................................................. 14
The significance of strategy formation ................................................................................. 15
Propositions and Research Question ......................................................................................... 17
Purpose ..................................................................................................................................... 19
Contribution .............................................................................................................................. 19
Overview of Chapters ............................................................................................................... 20
2: Literature Review .................................................................................................................... 23
Chapter Overview ..................................................................................................................... 23
Overview of the Theoretical Domain of Business Policy and Strategy.................................... 23
Strategy content. ................................................................................................................... 24
Strategy process. ................................................................................................................... 27
Review Process ......................................................................................................................... 31
Planning. ............................................................................................................................... 31
Execution. ............................................................................................................................. 33 MIDDLE MANAGEMENT RESEARCH IN STRATEGY 3
Middle Management in Strategy Formation ............................................................................. 36
Multiple and separate roles. .................................................................................................. 36
As initiators of strategy, in detail. ......................................................................................... 41
As role-ambidextrous. ........................................................................................................... 43
As participants in deliberate strategy process. ...................................................................... 46
Influence on top management decisions. .............................................................................. 49
As developers of strategic context. ....................................................................................... 51
Cooperating with top management in various roles. ............................................................ 54
As strategic resource and capability managers. .................................................................... 58
Influence of and on context................................................................................................... 62
As drivers of strategic renewal. ............................................................................................ 66
Role switching and adaptation. ............................................................................................. 70
As interpreters and translators. ............................................................................................. 71
As participants in deliberate process, twenty years later. ..................................................... 73
Role expectations. ................................................................................................................. 76
As indirect influences via information and attention management. ..................................... 79
In relationship to top managers. ............................................................................................ 82
Performance effects of middle management. ........................................................................ 84
As biased. .............................................................................................................................. 88
Synthesis and Discussion .......................................................................................................... 90 MIDDLE MANAGEMENT RESEARCH IN STRATEGY 4
Roles. ................................................................................................................................... 90
Conclusion ............................................................................................................................... 91
3: Conceptual Framework ............................................................................................................ 92
Experiential Knowledge............................................................................................................ 92
Prior Theory and Knowledge: Production and Dissemination of Knowledge ......................... 94
Origins and state of the field. ................................................................................................ 94
Models of knowledge production, dissemination, and utilization. ....................................... 96
The body of knowledge. ....................................................................................................... 98
Production of knowledge: University business schools........................................................ 99
Consumers of knowledge: Current and future management practitioners.......................... 100
Dissemination of knowledge: Formal education. ............................................................... 101
Dissemination mechanism: Textbook. ................................................................................ 102
Pilot and Exploratory Studies ................................................................................................. 103
Conclusion .............................................................................................................................. 104
Chapter 4: Research Approach ................................................................................................... 105
Research Objectives ................................................................................................................ 105
Data Source and Unit of Analysis ........................................................................................... 106
Research Method .................................................................................................................... 106
Rationale for Research Approach ........................................................................................... 107
Research Process ..................................................................................................................... 108 MIDDLE MANAGEMENT RESEARCH IN STRATEGY 5
1: Develop and apply sample strategy. ............................................................................... 109
2: Develop keywords and categories. ................................................................................. 111
3: Search textbooks. ............................................................................................................ 113
4: Review sections for relevance. ....................................................................................... 115
5: Assess sections quantitatively ......................................................................................... 115
6: Assess sections qualitatively ........................................................................................... 115
7: Aggregate findings. ......................................................................................................... 116
Reliability and Validity Considerations .................................................................................. 116
Chapter 5: Analysis of Findings ................................................................................................. 118
Findings.................................................................................................................................. 118
Literature source references. ............................................................................................... 118
Keyword references. ........................................................................................................... 121
Synthesis and Interpretation of Findings ................................................................................ 127
Synthesis. ............................................................................................................................ 127
Interpretation. ...................................................................................................................... 128
Evidence Base ......................................................................................................................... 128
Chapter 6: Conclusions, Implications, Future Research ............................................................. 129
Conclusions ............................................................................................................................. 130
Implications for Theory .......................................................................................................... 131
Implications for Practice ......................................................................................................... 131 MIDDLE MANAGEMENT RESEARCH IN STRATEGY 6
Academic practice. .............................................................................................................. 131
Industry practice.................................................................................................................. 132
Implications for others. ....................................................................................................... 133
Limitations and Areas for Future Research ............................................................................ 133
References .................................................................................................................................. 134
Appendix .................................................................................................................................... 180
MIDDLE MANAGEMENT RESEARCH IN STRATEGY 7
Abstract
There is evidence that middle management involvement in the formation of strategy leads to improved strategic decision-making, commitment to strategy, strategy implementation, and ultimately, organizational performance. The realization of these benefits depends, in part, on the effective dissemination of this research to current and future management practitioners. Whether textbooks, long-employed in higher education as a knowledge transfer mechanism, successfully integrate research offering a new paradigm or perspective, has recently been questioned. This study investigates the extent to which widely-adopted strategic management texts integrate the potentially valuable research on middle management involvement in strategy formation, given the longstanding top management perspective in strategic management research. A systematic review of the middle management strategy literature, and a content analysis of current strategic management textbooks, reveals that while the texts broadly suggest the involvement of managers beyond those in top management in the formation of strategy, there are few references to or inclusion of the research specific to middle manager involvement. These findings raise questions about the effectiveness of textbooks in preparing students to engage as middle managers in the strategic management of the firm, and the subsequent implications for organizational performance.
MIDDLE MANAGEMENT RESEARCH IN STRATEGY 8
Middle Management Research in Strategic Management Textbooks: A Clouded Perspective
1: Introduction
Managers’ effectiveness is significantly influenced by their insight into their own work. H. Mintzberg, 1975
In his widely-read and respected book on effective college teaching, McKeachie (2010) urges the professor in the process of designing a course to consider the relevance of the subject matter for the student. What makes a course relevant for a student may vary, but for many students of business, and in particular, for the student of business strategy, an applied discipline (Greiner, Bhambri, & Cummings, 2003; Jarzabkowski & Wilson, 2006, p. 348), the course must be relevant to its practical application in organizations (Augier & March, 2007; Davis, 2013). The professor of strategy might ask, then: How should these students be prepared to contribute to the organizations they will serve? What roles will they assume in these organizations? And, as organization roles require particular sets of knowledge and skills (Garvin, 2007; Katz, 1974; Mintzberg, 1975/1990), the professor of strategy might further ask: What knowledge do these students require to fulfill the roles they will assume in organizations? What skills must they develop to enact these roles?
Questions like these were likely asked in 1912 by the Harvard professor preparing the first course in business strategy. Some of the answers were apparent: the students were already serving business organizations, and held top management positions in them (Bower, 2008; Greiner et al., 2003; Khurana, 2007). These executives required knowledge and skills to solve the actual strategy problems they confronted in their work (Khurana, 2007). As the first strategy textbook, authored by Learned, Christensen, Andrews, and Guth, would not be available until 1965, the professor offered the students general management knowledge, drawing from the MIDDLE MANAGEMENT RESEARCH IN STRATEGY 9
works of Barnard, Selznick, and Chandler (Bower, 2008). The students developed skills in strategic decision making using a “live” case study approach, by analyzing actual situations presented by guest executives, and arguing through prospective strategic alternatives (Greiner et al., 2003). In early strategy courses, the relevance question was addressed largely through the practice of strategic decision making.
Instructors of strategy still ask McKeachie’s (2010) relevance question, though over a century later, the answers are somewhat different, given that organizations and their environments have changed, what we know about strategy has expanded, the students of strategy have changed, and the means of disseminating knowledge have evolved as well. During this period, organizations in the U. S. have shifted away from mass production (Kotha, 1995), organizational structures have become flatter (Meyer, 1995), and the numbers of persons engaged in knowledge work have increased (Davenport, 2005; Stewart, 1999). Organizations cope with larger and more complex environments (Bettis & Hitt, 1995; Thomas, 1996), created by expanding organizational boundaries (Ashkenas, Ulrich, Jick, & Kerr, 2002), by the need to satisfy increasing numbers of stakeholders (e.g., NGOs) (Bundy, Shropshire, & Buchholtz, 2013; David, Bloom, & Hillman, 2007), and by consumer demands for continuous improvement and innovation in products and services (Ahlstrom, 2010; Bettis & Hitt, 1995).
Over the same period, a significant body of knowledge on business strategy has been produced. Strategy is now an academic discipline of its own, with dedicated researchers (Unterman & Hegarty, 1979). These scholars develop strategy theory as patterns in the complex situations portrayed in case studies and in actual organizations emerge (e.g., Bower, 1970; Burgelman, 1983b). There is now empirical evidence linking strategy to organizational performance and other organizational outcomes (Floyd & Wooldridge, 2000). Numerous tools MIDDLE MANAGEMENT RESEARCH IN STRATEGY 10
are available to support strategic decision making (Bowman, Singh, & Thomas, 2002). This body of knowledge has much to offer to students and practitioners of strategy.
The students studying strategy in the university are also different: they are more diverse in their academic and professional backgrounds than were the first strategy students. Top managers still study strategy, but often in separate, executive MBA programs (De Déa Roglio & Light, 2009; Garvin, 2007; GMAC, 2011). The students of mainstream MBA programs have a variety of academic backgrounds (GMAC, 2011). Both MBA and undergraduate business programs serve students with a broad range of management experience, including many with no management experience at all (Dreher & Ryan, 2004; GMAC, 2011). Some of these aspire to management positions in organizations (GMAC, 2011), and others to advanced degrees in a business discipline (Schendel, 1975). Though how they apply the knowledge may vary, the common denominator among these students is their need to acquire strategy knowledge.
Finally, how strategy knowledge is disseminated to students and others has evolved. Strategy scholars share knowledge though special interest groups in scholarly societies, e.g., the Business Policy and Strategy Division of the Academy of Management (Academy of Management, 2010), and via societies and publications dedicated to strategy scholarship, such as the Strategic Management Society and the Strategic Management Journal (Strategic Management Society, 2014). Consultants and consulting organizations also disseminate strategy knowledge among business practitioners (Ghemawat, 2002; Mazza, 1997), as does the popular press (Mazza, 1997; Mazza & Alvarez, 2000). The business schools in universities continue to disseminate knowledge to current and future practitioners and others (Abrahamson & Eisenman, 2001), but now with technology-based simulations and comprehensive casebooks to assist in the development of strategy skills, and with a substantial amount of strategy-specific knowledge, MIDDLE MANAGEMENT RESEARCH IN STRATEGY 11
embodied in scholarly journals and strategic management textbooks, to assist in the development of student knowledge (Bower, 2008; Easterby-Smith & Davies, 1983).
That strategy is an applied discipline and that students of strategy expect the strategy course to be relevant to practice remains unchanged. Students require the knowledge and the skills to fulfill their current and prospective roles in organizations (GMAC, 2011), and the businesses and broader society they serve expect that the university will provide them with it (Whittington, Jarzabkowski, Mayer, Mounoud, Nahapiet, & Rouleau, 2003). In contemporary strategy courses, the relevance question is answered both through student practice of strategic decision-making and through student acquisition of the accumulated strategy knowledge.
Problem Statement
The focus here will be on the challenge of maintaining the relevance of the strategy course to students through the dissemination of an ever-growing body of scholarly research on strategy, and specifically, of the dissemination of knowledge pertaining to students’ preparation for the roles they have or will have in organizations. C
The price of prestige: Does prestige seeking affect management decisions to increase tuition in private nonprofit higher education?
No full textTuition at American colleges and universities has been rising faster than inflation for
more than 40 years. Public opinion research shows that the majority of Americans
increasingly believes that college is becoming unaffordable. Scholars have viewed the
problem of rapidly rising and increasingly unaffordable tuition as an economic problem,
a cost problem, and as a political problem (because of changes in state financial support
of public higher education). The issue has not been looked at as a management problem.
Yet as press releases evidence, decisions about changes to tuition are so important they
often require approval by boards of trustees, thus, placing responsibility for the problem
firmly on the shoulders of higher education managers and administrators.
This study takes as its starting point that tuition setting is not a routine, but a strategic,
decision. Senior leaders employ managerial cognition to evaluate strategic decisions
against a mental map of their environment and competition. For private nonprofit higher
education organizations, increasing prestige, the organizational objective, and the
associated prestige-seeking strategies are central to those mental maps. The isomorphic
forces of institutional theory reinforce the selection and implementation of similar
strategies. The research question, therefore, is whether there is evidence that prestige
seeking is present in the mental maps of decision makers when setting tuition increases.
The researcher conducted a qualitative directed content analysis of documents published
on the websites of private nonprofit universities in the U.S. News and World Report list
of the top 200 national universities. The content analysis found evidence at some
universities of an association between tuition increases and prestige seeking strategies.
Changing managerial cognition is not easy. Although awareness of the issue of
affordability seems to be recognized in speeches by leaders of universities, the annual
decision to increase tuition remains in the range of two percentage points higher than the
rate of consumer price inflation. More steps must occur before changes in manager
mental maps take place. Tuition increases must be taken out of the realm of routine
decisions and looked at through a different lens. This study shows that administrators,
faculty, and trustees have not revised their mental models and have not changed their
interpretation of the environment for their universities. When mental models change, we
might expect a different, and lower, level of annual tuition increase.The Price of Prestige:
Does Prestige Seeking Affect Management Decisions to Increase Tuition in Private
Nonprofit Higher Education?
By
Jane Sadd Smalec
A Thesis
Submitted to the
Graduate Faculty
of
University of Maryland University College,
in Partial Fulfillment of
The Requirements for the Degree
of
Doctor of Management
Advisory Committee:
Dr. Leslie Dinauer
Dr. Sharon Hadary
Dr. Dennis Winters
June 2014
ii
Abstract
Tuition at American colleges and universities has been rising faster than inflation for
more than 40 years. Public opinion research shows that the majority of Americans
increasingly believes that college is becoming unaffordable. Scholars have viewed the
problem of rapidly rising and increasingly unaffordable tuition as an economic problem,
a cost problem, and as a political problem (because of changes in state financial support
of public higher education). The issue has not been looked at as a management problem.
Yet as press releases evidence, decisions about changes to tuition are so important they
often require approval by boards of trustees, thus, placing responsibility for the problem
firmly on the shoulders of higher education managers and administrators.
This study takes as its starting point that tuition setting is not a routine, but a strategic,
decision. Senior leaders employ managerial cognition to evaluate strategic decisions
against a mental map of their environment and competition. For private nonprofit higher
education organizations, increasing prestige, the organizational objective, and the
associated prestige-seeking strategies are central to those mental maps. The isomorphic
forces of institutional theory reinforce the selection and implementation of similar
strategies. The research question, therefore, is whether there is evidence that prestige
seeking is present in the mental maps of decision makers when setting tuition increases.
The researcher conducted a qualitative directed content analysis of documents published
on the websites of private nonprofit universities in the U.S. News and World Report list
of the top 200 national universities. The content analysis found evidence at some
universities of an association between tuition increases and prestige seeking strategies.
Changing managerial cognition is not easy. Although awareness of the issue of
affordability seems to be recognized in speeches by leaders of universities, the annual
decision to increase tuition remains in the range of two percentage points higher than the
rate of consumer price inflation. More steps must occur before changes in manager
mental maps take place. Tuition increases must be taken out of the realm of routine
decisions and looked at through a different lens. This study shows that administrators,
faculty, and trustees have not revised their mental models and have not changed their
interpretation of the environment for their universities. When mental models change, we
might expect a different, and lower, level of annual tuition increase.
Keywords: Tuition, prestige seeking, strategic cognition, cognitive strategic groups,
higher education, content analysis, institutional theory, isomorphic forces.
iii
Acknowledgements
This journey began nearly 40 years ago as I was leaving England to enroll in a
second master’s degree in America. My sister, Prue, asked why I was enrolling another
master’s degree, and not a terminal degree. She wanted to address me as “Doctor.” Well I
held onto that thought until the fall of 2010 when the opportunity finally arose to enroll in
the program of my dreams and aspirations. So my first thank you goes to Prue for sowing
that seed.
Throughout my career, I have had some wonderful mentors who have encouraged
me to challenge brashly the conventional way of thinking and to look at problems from
multiple different angles. The first mentor I would like to thank specifically is Andy
Rosen, president of Kaplan Inc. and Kaplan University, who lit the fire of a passion to
learn about business models in higher education in the United States. The second is Dr.
Joe Cronin, who, in so many ways, has been years ahead of the curve in recognizing the
issues that stem from prestige seeking by higher education organizations and who always
has a twinkle in his eye and a story to tell about his experiences as a senior academic
leader.
As the 4 years at UMUC have flown by, I have grown years younger and
hundreds of years wiser. Of greatest pleasure has been sharing the journey with a cohort
of accomplished management practitioners who have now become fully fledged scholar
practitioners. The thought of graduating together has sustained my efforts over the last
few more lonely months. Thank you all for the rich diversity of experience and
perspectives you brought to our online and in-the-classroom interactions, for the advice
and support you offered on the days or weeks when the going was tougher, and for the
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pleasure of celebrating success together as we left one semester behind only to rise to the
challenge of the next one.
To UMUC faculty members who have been both encouraging and demanding of
the best, thank you. The greatest thanks go to my dissertation committee, Dr. Dinauer,
Dr. Hadary and Dr. Winters. First, to Dr. Winters, thank you for steering me with great
reading suggestions from a positivist to more interpretivist perspective and for suggesting
Mapping Strategic Thought (Huff, 1990) as the foundational theoretical construct for the
problem this dissertation addresses. Second, thank you to Dr. Hadary for your incredible
patience and incorrigibly upbeat attitude even on the most down of all down days, and for
identifying that disease we laughingly called intellectual attention deficit disorder, which
you kindly rechristened the desire to go to the deepest and broadest level of
understanding even in the face of disastrous time crunches. Third, thank you to Dr.
Dinauer for your forthright, extensive, and detailed feedback and for insisting on only the
highest standards of quality. Thank you for being the toughest critic and the most
constructive supporter, but thank you most of all for seeing and sharing that moment of
intellectual excitement when you suggested I evaluate content analysis for the study
methodology and all the pieces suddenly fell into place.
Lastly, thank you to my family, my sons, Tom and James, for sharing the journey,
for your uncritical encouragement (How few days did I need to write those 100 pages?),
and the joy of your company. I hope you too will eventually love learning as much as I
do.
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Table of Contents
Chapter 1: Introduction ........................................................................................................1
Problem Statement ...................................................................................................4
Research Questions..................................................................................................8
Significance and Purpose of Study ..........................................................................8
Scope and Limitations............................................................................................11
Dissertation Organization ......................................................................................13
Chapter 2: Literature Review.............................................................................................16
The Economics of Pricing......................................................................................17
Neoclassical Economic Theory..................................................................17
Price as an Indicator of Quality .................................................................18
Price, Quality, and Status...........................................................................20
The Economics of Nonprofit Organizations ..........................................................21
The Nondistribution Constraint .................................................................22
Nonprofit Organization Objectives............................................................23
Other Arguments About the Unique Economics of Higher Education......25
Prestige, Status, Reputation, Legitimacy, and Quality ..........................................27
Theoretical Lenses .................................................................................................33
Institutional Theory and Isomorphism.......................................................33
Management Cognition..............................................................................43
Application of Propositions in Higher Education..................................................55
Prestige Seeking by Universities ...............................................................58
Imitation of Prestige-Seeking Strategies....................................................64
Decision makers’ Mental Maps in Connection With Tuition Increase......68
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Summary of Literature about Prestige Seeking and Prestige Seeking
Strategies by Universities ......................................................................................71
Chapter 3: Methodology ....................................................................................................76
Management Research Methodologies ..................................................................77
Content Analysis ....................................................................................................78
Content Analysis in Management Research ..............................................80
Types of Content Analysis.........................................................................84
Reliability and Validity of Content Analysis.............................................86
Process of Content Analysis ..................................................................................87
Generic Content Analysis Procedure: Definition of Steps ........................88
Modified Procedure for Deductive Content Analysis Such as Directed
Content Analysis ........................................................................................91
Content Analysis Process in This Research...............................................92
Reliability and Validity in This Study .....................................................100
Expert Stakeholders .............................................................................................101
Expert Stakeholders Role.........................................................................101
Expert Stakeholders .................................................................................102
Chapter 4: Findings..........................................................................................................103
Content Analysis Findings ...................................................................................104
Decision makers.......................................................................................116
Evidence of Prestige-Seeking ..................................................................119
Framing the Tuition Increase Decision With Cognitive Strategic
Groups......................................................................................................121
Imitation of Prestige Seeking Strategies ..................................................122
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Experts’ Feedback................................................................................................127
Discussion of Findings from Content Analysis ...................................................129
Quality of Conclusions ............................................................................135
Alternative Interpretations .......................................................................136
Chapter 5: Implications, Limitations, And Summary.....................................................138
Implications for Management ..............................................................................139
Implications of Emerging Trends ........................................................................146
Limitations ...........................................................................................................152
Areas for Future Research ...................................................................................153
Summary..............................................................................................................156
References.......................................................................................................................158
Appendix A: Biographies of Members of the Expert Stakeholders ................................180
Appendix B: Private Nonprofit Colleges and Universities in the 2014 USNWR Top
200...................................................................................................................................182
Appendix C: Colleges and Universities for Which no Data Could be Located About
Identity or Role of Participants in the Tuition Increase Decision....................................186
Appendix D: Content Analysis – Identity of Decision Makers .......................................189
Appendix E: Tuition Increases and Prestige Seeking ......................................................194
Appendix F: Tuition Increases and Strategic Cognitive Groups .....................................209
Appendix G: Tuition Increases and Student Quality/Admission Selectivity...................219
Appendix H: Tuition Increases and Faculty Quality or Research ...................................228
Appendix J: Tuition Increases and Prestige Seeking Through Buildings........................241
Appendix K: Tuition Increases and New Programs ........................................................250
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List of Figures
1 Traditional Demand Curve and Upward Sloping Demand Curve ............................19
2 Relationship of Content Analysis to Toulmin’s Theory of Argumentation .............80
3 Elicited Cognitive Taxonomy of a Managing Director of a Scottish Knitwear
Firm...........................................................................................................................83
4 Results of Search on Website of Southern Methodist University.............................94
5 Cognitive Model of Strategic Change Process. ......................................................142
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List of Tables
1 Summary of Reported Scholarly Research About Prestige Seeking Strategies
by Universities ..........................................................................................................71
2 Prestige Seeking Strategies and Behaviors of Universities Abstracted From
Scholarly Literature ..................................................................................................75
3 Comparison of Process for Inductive and Deductive Content Analysis ...................91
4 Criteria for Excluding Documents From Content Analysis......................................95
5 Types of Documents Included in Content Analysis ..............................................106
6 Types and Dates of Meeting for Which Meeting Records were Retrieved ............111
7 Count of Documents With “Tuition Increase” and Prestige Seeking Content or
a Prestige Seeking Strategy.....................................................................................133
The Price of Prestige
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CHAPTER 1: INTRODUCTION
According to the College Board’s 2011 edition of Trends in College Pricing
(Baum & Ma, 2011), “Over the decade from 2001–02 to 2011–12, published tuition and
fees at private nonprofit four-year institutions increased at an average rate of 2.6% per
year beyond inflation” (p. 3). At public 4-year colleges, the comparable statistic was
5.6% in excess of the general rate of inflation. Fifteen percent of undergraduates in
private nonprofit universities attended institutions that raised their tuition by more than
6% between 2010–2011 and 2011–2012 and 25% attended institutions that raised their
tuition by more than $1,600 between these two academic years. These data confirm and
continue a trend that dates back to 1958. The issue of high rates of increase in tuition is
not confined to undergraduate education. According to data published in the Digest of
Education Statistics (Snyder & Dillow, 2012), graduate program tuition at private
colleges rose by 48% in constant dollars (adjusted for inflation) between 1989–1990 and
2010–2011 compared to 52% for undergraduate tuition at such colleges. The cost of
higher education in the United States has risen at a rate faster even than the cost of
healthcare over the last 10 years (Christensen, Horn, Caldera, & Soares, 2011).
Observing that the rate of increase of tuition in excess of inflation is not
sustainable, the Economist magazine asked, how can colleges do more with less
(Wooldridge, 2011) and how can degrees be re-engineered to cost less. A Pew Research
Center poll of 2,142 adults conducted in March 2011 found that 75% of respondents
disagreed with the statement “College costs are such that most Americans can afford to
pay for a college education” (Taylor, Parker, Fry, & Cohn, 2011, p. 126) and 57% said
that colleges fail to provide students with good value for money spent.
The Price of Prestige
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What makes the sustained increases in tuition surprising is that the rise has
continued to take place in spite of attempts by policy makers every decade to address it.
In 1995, public concern about college affordability led to the creation of the National
Commission on the Cost of Higher Education (1998), which reported that it was
convinced that
The simple truth is that no single factor can be identified to explain how and why
college costs rise. The Commission suspects that part of the underlying dynamic
is the search for academic prestige and the academic reward systems governing
higher education. (p. 24)
The commission’s first recommendation was that the major onus for strengthening cost
control be placed on higher education institutions. Its second recommendation was for
improved market information and public accountability. However, these actions did not
stop tuition from continuing to increase at a rate well ahead of the rate of consumer price
inflation.
A decade later, in 2005, another commission was appointed to address the future
of higher education. Known as the Spellings Commission, after the Secretary of
Education who created it, the mandate of this commission was broader—how best to
improve the United States system of higher education and to ensure that its graduates are
well prepared for the workforce of the future. The commission addressed access,
accountability, cost, and affordability. This commission reported in 2006 that American
higher education had become increasingly risk adverse, at times self-satisfied and unduly
expensive. It found that “in addition, colleges and universities have few incentives to
contain costs because prestige is often measured by resources, and managers who hold
down spending risk losing their academic reputations” (U.S. Department of Education,
2006, p. 20). This commission also recommended improved accountability about costs
The Price of P
Using industrial economics to examine complex strategic behavior: Collaborative leadership in wine clusters
No full textThis dissertation explores the complex interactions between organizations that have a geographic and economic connection. Actors in these informal relationships are motivated to express a form of collaborative leadership that produces advantages which they can reap from their environment. In particular, this exploratory research uses the industry-structure-conduct paradigm to explore the expression of collaborative leadership in clusters of organizations that revolve around the wine industry.
Two research questions are explored in this dissertation. First, this dissertation examines whether concentrations of independent organizations that operate in the same industry and share overlapping interests can create a competitive advantage. Secondly, this dissertation investigates the leadership behavior that is expressed in these relationships and identifies some characteristics of this behavior and why/when/how it impacts performance.
The research questions are investigated through a thematic review of existing scholarship. This review produces a conceptual framework that is then examined with further analysis. This analysis reveals that the structure of a cluster facilitates access to existing resource and inspires expression of collaboration and collaborative leadership. Through effective collaborative leadership, organizations can benefit from their access to resources that are available in their cluster and by establishing unique relationships that produce new resources. Organizations acquire a competitive advantage by gaining access to these unique resources and innovative relationships.
This study examines the interactions between structure, conduct, and performance in wine clusters. However, scholars and practitioners can extend these findings to other industries. This study contributes to the evidence-based movement by providing useful insight to private and public sector managers. Managers can apply this knowledge as they develop strategies to improve access to valuable resources, to inspire the creation of innovative relationships, and to maintain the competitiveness of their home cluster. Scholars are encouraged to continue advancing this research.Running Head: COLLABORATIVE LEADERSHIP IN WINE CLUSTERS
Using Industrial Economics to Examine Complex Strategic Behavior:
Collaborative Leadership in Wine Clusters
Jack Wayne Hawkins IIICOLLABORATIVE LEADERSHIP IN WINE CLUSTERS
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Abstract
This dissertation explores the complex interactions between organizations that have a geographic and economic connection. Actors in these informal relationships are motivated to express a form of collaborative leadership that produces advantages which they can reap from their environment. In particular, this exploratory research uses the industry-structure-conduct paradigm to explore the expression of collaborative leadership in clusters of organizations that revolve around the wine industry.
Two research questions are explored in this dissertation. First, this dissertation examines whether concentrations of independent organizations that operate in the same industry and share overlapping interests can create a competitive advantage. Secondly, this dissertation investigates the leadership behavior that is expressed in these relationships and identifies some characteristics of this behavior and why/when/how it impacts performance.
The research questions are investigated through a thematic review of existing scholarship. This review produces a conceptual framework that is then examined with further analysis. This analysis reveals that the structure of a cluster facilitates access to existing resource and inspires expression of collaboration and collaborative leadership. Through effective collaborative leadership, organizations can benefit from their access to resources that are available in their cluster and by establishing unique relationships that produce new resources. Organizations acquire a competitive advantage by gaining access to these unique resources and innovative relationships.
This study examines the interactions between structure, conduct, and performance in wine clusters. However, scholars and practitioners can extend these findings to other industries. This study contributes to the evidence-based movement by providing useful insight to private COLLABORATIVE LEADERSHIP IN WINE CLUSTERS
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and public sector managers. Managers can apply this knowledge as they develop strategies to improve access to valuable resources, to inspire the creation of innovative relationships, and to maintain the competitiveness of their home cluster. Scholars are encouraged to continue advancing this research.COLLABORATIVE LEADERSHIP IN WINE CLUSTERS
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Table of Contents Abstract ............................................................................................................................... i Table of Contents............................................................................................................... iii Chapter One – Introduction ................................................................................................ 1 Statement of the Problem .......................................................................................................................... 4 Purpose ...................................................................................................................................................... 4 Research Questions ................................................................................................................................... 4 Significance of Study .................................................................................................................................. 5 Nature of the Study ................................................................................................................................... 6 Outline of this Dissertation ......................................................................................................................... 7 Transition ................................................................................................................................................. 19 Chapter Two – Literature Review..................................................................................... 21 Overview and Evaluation of Scholarly Contributions ................................................................................ 21 Structure: Clusters ................................................................................................................................... 25 Conduct: Collaborative Leadership ........................................................................................................... 43 Performance: Achieving a Competitive Advantage .................................................................................. 69 Recap of Literature Review ....................................................................................................................... 73 Chapter Three – Conceptual Framework.......................................................................... 75 Conclusion ................................................................................................................................................ 82 Chapter Four – Methodology............................................................................................ 83 Role of Research ...................................................................................................................................... 83 Evidence-Based Practice ........................................................................................................................... 85 COLLABORATIVE LEADERSHIP IN WINE CLUSTERS
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The Collection of Evidence ........................................................................................................................ 88 Presentation and Discussion of the Expert Panel...................................................................................... 90 Chapter Summary .................................................................................................................................. 101 Chapter Five – Analysis and Discussion ........................................................................ 103 Revisiting the Purpose of This Study ....................................................................................................... 103 Revisiting the Research Questions in Light of the Literature Review ...................................................... 103 Assessment of Supporting Evidence ....................................................................................................... 105 Analysis and Discussion of the Research Questions ................................................................................ 108 Systematic Review of Empirical Wine Cluster Studies ............................................................................ 110 Synthesis of Research Findings ............................................................................................................... 114 Conclusions ............................................................................................................................................ 116 Summary ................................................................................................................................................ 118 Chapter Six - Conclusion................................................................................................ 122 Implications of This Research ................................................................................................................. 122 Extending This Research Beyond the Wine Industry ............................................................................... 128 Limitations and Areas for Future Research ............................................................................................. 136 Summary ................................................................................................................................................ 136 References...................................................................................................................... 138 Appendix A..................................................................................................................... 161 Abstract Review: T.K. Das ....................................................................................................................... 161 Abstract Review: Andrew H. Van de Ven ................................................................................................ 161 Evaluation Form: Elisa Giuliani ............................................................................................................... 162 COLLABORATIVE LEADERSHIP IN WINE CLUSTERS
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Evaluation Form: Kristin Olsen ................................................................................................................ 166 Evaluation Form: L.A.G. Oerlemans ........................................................................................................ 168 COLLABORATIVE LEADERSHIP IN WINE CLUSTERS
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List of Figures
1. Anatomy of the California Wine Cluster……………………………………………………...3
2. Clean tech clusters will accelerate clean tech innovation……………………………………..6
3. The structure-conduct-performance paradigm………………………………………………...9
4. Relationship between the research questions and the structure-conduct-performance paradigm……………………………………………………………………………………..13
5. Outline of the structure section of the literature review……………………………………..14
6. Outline of the conduct section of the literature review………………………………………16
7. Outline of the performance section of the literature review…………………………………19
8. A framework for understanding cross-sector collaborations………………………………...24
9. The (de)composition of the dimensions of proximity………………………………………..27
10. Relationship between research variables…………………………………………………….76
11. Post literature review conceptual framework………………………………………….….…77
12. Relationship between clusters, collaborative leadership and achieving a competitive advantage……………………………………………………………….………………..…104
13. Conceptual model produced from systematic review of wine cluster research………….....118
List of Tables
1. Distinguishing characteristics of forms of transactions…………...…………………………35
2. List of examined articles from literature review……………………………………………105
3. List of usable wine cluster articles………………………………………………………….111
4. Article research method and unit of observation…………………………………….……..112
5. Identification of research variables……………………………………………..…………..113COLLABORATIVE LEADERSHIP IN WINE CLUSTERS
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Chapter One – Introduction
History of an Archetypal Cluster
There is a complex configuration of organizations in California that are interconnected through a network of relationships with each other, which revolves around the state’s huge wine industry. This industry is concentrated in a region that has natural environment advantages, such as climate, soils, rootstock, and available water that are especially suited to growing grapes. The industry developed when the California gold rush brought a large number of immigrants and with them a local demand for wine. Meanwhile, high transportation costs protected their development from foreign competition. Furthermore, many of the immigrants that were attracted to the state came from wine growing regions of Europe and brought with them knowledge of viticulture and oenology (Mueller & Sumner, 2006).
The passage of prohibition in 1919 devastated the wine production in America and it took half a century for wine production to fully recover after prohibition’s repeal (Morrissey, 1977). The California wine region now contains 87 percent of the country’s grape bearing land and produces 92 percent of the country’s total grape harvest. It is home to 1,400 of the country’s 3,725 wineries and produces two of every three bottles of wine that Americans consume. About 65 cents of every American dollar spent on wine is spent on a Californian wine (Mueller & Sumner, 2006).
The relationship between California’s grape growers and wine makers created a network of enduring relationships. Mueller and Sumner (2006) explained that these types of relationship between grape growers and wine makers “reduce risks, enhance access to finance, and avoid some of the bargaining costs associated with selling grapes shortly before they are ready for harvest” (p. 14). Organizations in this web of relationships share interdependence and cooperate COLLABORATIVE LEADERSHIP IN WINE CLUSTERS
2
with each other in a system of material interchanges. Scholars refer to systems of interdependencies and cooperation as an “industrial ecosystem” and ecosystems that have an industry specialization manage to create an environmental advantage by being near to each other. This type of ecosystem is referred to as a “cluster” (Bell, 2005; Deutz & Gibbs, 2008; Martin & Sunley, 2003).
The diagram displayed in Figure 1 provides an illustration of the web of relationships in the California wine cluster. As displayed, there are several types of organizations in this cluster. Prominent organizations in this web of relationships include the Wine Institute and the Napa Valley and Sonoma Valley vintners’ associations. There are also highly specialized organizations, such as the Napa Wine Technical Group, a network of winemakers that are involved with the application of science in improving of the quality of wine. Tourism also plays a significant role in this region’s economy. There are more than 15 million visitors to the California wine region each year and they contribute more than $1.3 billion in revenue to the economy (Mueller & Sumner, 2006).
Despite the informality of these relationships, the development of California’s wine cluster has been influenced by some particular industry leaders, such as Robert Mondavi and Philippe de Rothschild. Robert Mondavi improved the standards of California wine, introducing French oak aging barrels and cold fermentation to the region. He also introduced stainless-steel tanks in the fermentation process, an idea that he borrowed from the dairy industry. His influential leadership changed the pre-1980s reputation of California wine, which was described by critics as "the stuff of skid-row jokes" (Laube, 2008; Sullivan, 2008).COLLABORATIVE LEADERSHIP IN WINE CLUSTERS
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Figure 1. Anatomy of the California Wine Cluster (Porter, 1998, p. 79).
Today, the export volume of California is only surpassed by the European wine producing countries of France, Italy, and Spain. However, production in these European countries is declining, while the volume of domestic exports is growing. American exports grew by more than 16 fold between 1986 and 2004. Meanwhile, export prices increased 40 percent. However, the average bottle of wine imported into the United States is nearly double the price of the bottles that Americans export (Mueller & Sumner, 2006).
Needless to say, the California wine cluster has evolved into a complex array of interconnected organizations which brings unique advantages to this region. Organizations in this COLLABORATIVE LEADERSHIP IN WINE CLUSTERS
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interdependent economic environment will either benefit from the shared advancements of their region or suffer as their region degrades.
Statement of the Problem
Organizations are impacted by the socioeconomic conditions of the environment in which they belong. However, many of these socioeconomic factors are outside the direct control of any single organization. Therefore, the benefits of these factors are influenced by the actions of multiple organizations. For example, the California wine cluster consists of a complex array of organizations that are directly and indirectly associated with the wine industry. These organizations may suffer, lose business, if the reputation of this wine region deteriorates. Conversely, these organizations may benefit, increase business, if the reputation of this wine region improves. Meanwhile, there are competing wine producing clusters, such as the one developing in New York. Organizations in the New York wine cluster will benefit if their region captures some of the reputation of California’s wine (Centonze, 2010). Therefore, organizations in each of these regions have an interest in maintaining the competitiveness of their home cluster, but lack a direct managerial role in these informal relationships.
Purpose
The purpose of this study is to reveal how a concentration of independent organizations that operate in the same industry and share overlapping interests can achieve a competitive advantage and to identify the leadership behaviors that can be used to guide these relationships. This insight can inspire economic development and stimulate efficiencies in interorganizational relationships.
Research Questions
The following research questions address this study:COLLABORATIVE LEADERSHIP IN WINE CLUSTERS
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Can a concentration of independent organizations that operate in the same industry and share overlapping interests create a competitive advantage?
What does the leadership behavior that is performed in these relationships look like and why/when/how does it impact performance?
Significance of Study
California wine cluster is only one example of this interorganizational phenomenon, as illustrated in Figure 2. Scholars and practitioners are starting to identify clusters and recognize their potential. This study extends the understanding of these informal interorganizational relationships. By creating clarity, this study can stimulate efficiencies in these interorganizational relationships and make these increasingly attractive relationships more valuable for their participants. This information can also provide insight useful in the fields of strategic management, the administration of governments, politics, and economics. For example, this study may help private and public sector managers encourage developments in economically challenged regions. It may also help identify the actions that can reignite competitive vigor in dying regions.COLLABORATIVE LEADERSHIP IN WINE CLUSTERS
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Figure 2. Marcus, A. (2011). [Map of clusters]. Clean tech clusters will accelerate clean tech innovation. Retrieved from http://tli.umn.edu/blog/
Nature of the Study
This study will examine the interorganizational relationships present in regions that have specific industry expertise. Examples from the California wine region are used to help answer the research questions. It will begin with a review of the scholarly literature that addresses aspects of interorganizational relationships which influence leadership, such as leadership media, structure, processes, and participation. The theories that are presented in this literature are compared and reinforced with research specifically addressing the wine industry.
This study will also provide a basis for identifying the factors that have made these collaborative efforts successful and/or unsuccessful. For example, what factors allowed Robert COLLABORATIVE LEADERSHIP IN WINE CLUSTERS
7
Mondavi to manage power and control the agenda in the development of the California wine cluster, how were organizations represented during his period of leadership and how did organizations mobilize for their shared needs, and how did he motivate and empower actions that brought about change in the California wine cluster?
Outline of this Dissertation
The outline of this dissertation will be presented in the forthcoming section. The intent of this presentation is to establish some clarity that will facilitate a more comprehensive discussion of the schol
‘Doing Well by Doing Good:’ Examining the Relationship between Environmental Performance and Profitability for Managers in Shareholder-oriented Organizations
No full textThis dissertation examined recent research dating from the year 2000 onward to determine if there was a relationship between environmental performance and profitability that supported managers’ decisions for implementing environmental performance initiatives in shareholder-oriented organizations. Environmental performance was examined using the two mechanisms of third party institutional ratings and organizational self-reporting, as well as by assessing the factors influencing managers’ decisions to implement environmental performance. Third party institutional ratings included ratings from investment firms, socially-responsible indices, and government agencies. Self-reporting transparency was a mechanism wherein organizations published reports discussing environmental strategies and expenditures. Profitability was represented by market and accounting measures. Stakeholder theory, resource-based theory, and efficient market theory were applied to understand theoretical underpinnings of examined studies to ensure cohesion of conceptual frameworks and research approaches. These theories were brought together under agency theory, as this theory served as the basis for the social responsibility debate, identifying managers as those responsible for achieving cohesion among shareholders and stakeholders interests. Upon drawing conclusions, the focus shifted to explain if environmental performance was a managerial practice in conflict with agency-fiduciary goals. Accordingly, this dissertation argued that managers’ decisions to implement environmental performance initiatives were not in conflict with agency-fiduciary responsibilities. The overall results showed that ceteris paribus, firms with superior environmental performance experienced improved economic performance. Management implications were provided to guide managers in devising environmental performance initiatives that balanced the needs of shareholders and stakeholders.Running head: DOING WELL BY DOING GOOD
‘Doing Well by Doing Good:’ Examining the Relationship between Environmental Performance and Profitability for Managers in Shareholder-oriented Organizations
By
Darrel Earhart
A Thesis
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 Committee
Deborah M. Wharff, D.M.
Kathleen F. Edwards, Ph.D.
December 26, 2014
DOING WELL BY DOING GOOD 2
Table of Contents
Abstract .......................................................................................................................................... 7
Chapter 1: Introduction ................................................................................................................... 9
Significance of Problem and Purpose of Study ........................................................................... 9
Background ............................................................................................................................... 14
Importance to Management ....................................................................................................... 21
Theoretical Framework .............................................................................................................. 23
Methodology .............................................................................................................................. 27
Primary Concepts and Variables ............................................................................................... 28
Primary concepts. ................................................................................................................... 28
Variables of examination. ...................................................................................................... 34
Research Question ..................................................................................................................... 39
Propositions ............................................................................................................................... 39
Proposition 1. ......................................................................................................................... 40
Proposition 2. ......................................................................................................................... 40
Proposition 3. ......................................................................................................................... 41
Summary of Chapter 1 ............................................................................................................... 42
Chapter 2: Systematic Literature Review ..................................................................................... 45
Introduction ............................................................................................................................... 45
Organization of Systematic Literature Review ......................................................................... 45
Presentation of Empirical Evidence .......................................................................................... 46
Study data for Proposition 1. .................................................................................................. 46
Theoretical frameworks.......................................................................................................... 65
Summary of empirical findings for Proposition 1 study data. ............................................... 67
Study data for Proposition 2. .................................................................................................. 71
Theoretical frameworks.......................................................................................................... 88
Summary of empirical findings for Proposition 2 study data. ............................................... 92
Study data for Proposition 3. .................................................................................................. 94
Theoretical frameworks........................................................................................................ 119
Summary of empirical findings for Proposition 3 study data. ............................................. 121
Summary of Chapter 2 ............................................................................................................. 123
Chapter 3: Theoretical and Conceptual Framework ................................................................... 125
Introduction ............................................................................................................................. 125
Research Question, Argument, and Propositions .................................................................... 126
Conceptual Framework ............................................................................................................ 128
Summary of Chapter 3 ............................................................................................................. 139
Chapter 4: Methodology ............................................................................................................. 143
Introduction ............................................................................................................................. 143 DOING WELL BY DOING GOOD 3
Evidence-based Research and the Systematic Review ............................................................ 143
Research Philosophy Supporting this SLR .............................................................................. 145
Synthesis by Aggregation, Data Connecting, and Narrative Synthesis ................................... 146
Evidence Evaluation Framework............................................................................................. 148
Systematic review of the literature. ...................................................................................... 148
Devising a research question and propositions. ................................................................... 149
Devising the search strategy. ................................................................................................ 150
Inclusion and exclusion. ....................................................................................................... 152
Quality assessment. .............................................................................................................. 154
Narrative analysis. ................................................................................................................ 154
Weight of evidence............................................................................................................... 155
Analysis and Synthesis ............................................................................................................ 156
Study types. .......................................................................................................................... 156
Classifying results. ............................................................................................................... 157
Methods application. ............................................................................................................ 159
Result map data set. .............................................................................................................. 174
Subject Matter Expert Feedback .............................................................................................. 174
Summary of Chapter 4 ............................................................................................................. 179
Chapter 5: Analysis and Discussion ........................................................................................... 181
Introduction ............................................................................................................................. 181
Revisiting the Research Question, Argument, and Warrant .................................................... 182
Findings ................................................................................................................................. 182
Proposition 1. ....................................................................................................................... 183
Proposition 2. ....................................................................................................................... 196
Proposition 3. ....................................................................................................................... 207
Moderator Variables Impacting Environmental Performance and Profitability ..................... 219
Alternative Viewpoints ............................................................................................................ 223
Discussion and Summary of Chapter 5 ................................................................................... 223
Chapter 6: Management Implications, Trends, and Conclusions ............................................... 226
Introduction ............................................................................................................................. 226
A Review of the Research Question, Propositions, and Findings ........................................... 226
Implications for Management .................................................................................................. 232
Limitations ............................................................................................................................... 236
Future Trends and Conclusion ................................................................................................. 238
References .................................................................................................................................. 243
Appendix A ................................................................................................................................ 263
Appendix B ................................................................................................................................ 286
Appendix C ................................................................................................................................ 298 DOING WELL BY DOING GOOD 4
Appendix D ................................................................................................................................ 302
Appendix E ................................................................................................................................ 304
Appendix G ................................................................................................................................ 310
Appendix H ................................................................................................................................ 312
DOING WELL BY DOING GOOD 5
Tables
Table 1. Inclusion and Exclusion Criteria ................................................................................... 153
Table 2. Ranking of Inclusion and Exclusion Criteria ................................................................ 154
Table 3. Narrative Analysis Quality Assessment ....................................................................... 155
Table 4. Weight of Evidence Criteria ......................................................................................... 156
Table 5. Study Method Type by Proposition Category .............................................................. 157
Table 6. Subject Matter Expert Biographies ............................................................................... 176
Table 7. Subject Matter Expert Feedback and Revisions to Dissertation ................................... 177
Table 8. Raw Study Data ............................................................................................................ 263
Table 9. Study Results by Result Category ................................................................................ 286
Table 10. Theoretical Concepts .................................................................................................. 298
Table 11. Database Search Criteria ............................................................................................. 302
DOING WELL BY DOING GOOD 6
Figures
Figure 1. Managers, Third Party Institutional Ratings, and Self-reporting Transparency. ........ 129
Figure 2. Resources and Environmental Performance. ............................................................... 132
Figure 3. Managers and Priority Negotiation. ............................................................................ 135
Figure 4. Major Concepts and Interrelationships. ....................................................................... 138
Figure 5. General Review of Literature. ..................................................................................... 149
Figure 6. PRISMA Flow Diagram. ............................................................................................. 152
Figure 7. Sample Study Results Depicting Authors and Evidence Types. ................................. 159
Figure 8. Result Map Template with Environmental Performance Concepts. ........................... 162
Figure 9. Quantitative Result Map Template Depicting Statistical Significance Columns. ....... 164
Figure 10. Qualitative/Conclusion Result Map Template Depicting Topic Categories. ............ 166
Figure 11. Result Maps Depicting Plotted Study Results. .......................................................... 168
Figure 12. Sample Result Map for Quantitative Results. ........................................................... 170
Figure 13. Data Connection Demonstration. .............................................................................. 172
Figure 14. Sustainability Leadership Result Group. ................................................................... 186
Figure 15. EPA TRI Result Group. ............................................................................................. 190
Figure 16. Management Findings on Qualitative Result Map. ................................................... 193
Figure 17. Positive Disclosure Results on Quantitative Result Map. ......................................... 199
Figure 18. Negative Disclosure Results on Quantitative Result Map. ....................................... 201
Figure 19. Supportive Disclosure Results on Qualitative Result Map. ...................................... 205
Figure 20. Beyond Compliance Results on Qualitative Result Map. ......................................... 210
Figure 21. Social Stakeholder Results on Qualitative Result Map. ............................................ 216
Figure 22. Conclusion Result Map for 3rd Party Institutional Ratings. ..................................... 306
Figure 23. Conclusion Result Map for Self-reporting Transparency. ........................................ 307
Figure 24. Qualitative Result Map for Manager Decision-making. ........................................... 308
Figure 25. Quantitative Result Map for Statistical Study Results. ............................................. 309
DOING WELL BY DOING GOOD 7
Abstract
This dissertation examined recent research dating from the year 2000 onward to determine if there was a relationship between environmental performance and profitability that supported managers’ decisions for implementing environmental performance initiatives in shareholder-oriented organizations. Environmental performance was examined using the two mechanisms of third party institutional ratings and organizational self-reporting, as well as by assessing the factors influencing managers’ decisions to implement environmental performance. Third party institutional ratings included ratings from investment firms, socially-responsible indices, and government agencies. Self-reporting transparency was a mechanism wherein organizations published reports discussing environmental strategies and expenditures. Profitability was represented by market and accounting measures. Stakeholder theory, resource-based theory, and efficient market theory were applied to understand theoretical underpinnings of examined studies to ensure cohesion of conceptual frameworks and research approaches. These theories were brought together under agency theory, as this theory served as the basis for the social responsibility debate, identifying managers as those responsible for achieving cohesion among shareholders and stakeholders interests. Upon drawing conclusions, the focus shifted to explain if environmental performance was a managerial practice in conflict with agency-fiduciary goals. Accordingly, this dissertation argued that managers’ decisions to implement environmental performance initiatives were not in conflict with agency-fiduciary responsibilities. The overall results showed that ceteris paribus, firms with superior environmental performance experienced improved economic performance. Management implications were provided to guide managers in devising environmental performance initiatives that balanced the needs of shareholders and stakeholders. DOING WELL BY DOING GOOD 8
Keywords: Environmental performance, sustainability, profitability, corporate social responsibility, management decision-making
DOING WELL BY DOING GOOD 9
Chapter 1: Introduction
Significance of Problem and Purpose of Study
Today’s organizations are facing increasingly difficult challenges to remain profitable while reducing negative environmental impacts. Managers struggle with deciding whether to implement environmental performance initiatives to meet minimal regulatory compliance or pursue strategic environmental initiatives that achieve compliance and create other benefits such as reduced costs and improved competitive advantage. Balancing shareholder and stakeholder needs in increasingly strict regulatory environments also continues to present challenges to managers. This can be further exacerbated by the shareholder-oriented or stakeholder-oriented environment in which firms exist (Chih, Chih, & Chen, 2010, p. 116; Dhaliwal, Radhakrishnan, Tsang, & Yang, 2012; p. 724). Researchers have posited benefits related to implementing environmentally-focused initiatives, such as reduced wasteful spending (Porter & Kramer, 2006, p. 82) and reduced risk exposure (Mackey, A., Mackey T., & Barney, 2007, p. 818). At the same time, overinvesting in costly environmental performance initiatives following pro-environmental rhetoric can negatively impact firms’ economic performance (Dong-shang & Li-chin, 2008, p. 367; Walley & Whitehead, 1994, p. 48) while increasing the need for principal-agent monitoring (Ross, 1973, p. 138). Understanding the benefits of implementing environmental performance initiatives, as well as the consequences of ineffective initiatives, is important for management practice as it has implications across a wide spectrum of stakeholders.
Implementing environmental performance initiatives can have positive financial consequences for firms. Dow’s Waste Reduction Always Pays (WRAP) program, implemented in 1987, resulted in waste reductions of 60% and savings of 200 million in annual fuel savings through energy efficiency programs, DOING WELL BY DOING GOOD 10
while Tesco implemented climate reduction targets that resulted in savings of $239 million annually (Ryder, 2011). These examples highlight some of the potential cost savings benefits that can come from implementing environmental performance initiatives.
Implementing environmental performance initiatives can
Mitigating the effects of transfer shock among community college transfer students: Creating an advising model framework
No full textData have shown that there is a baccalaureate degree gap between community college transfer students and those who begin their studies at four-year institutions. Transfer shock is examined as a possible variable that negatively affects community college transfer students and may contribute toward the baccalaureate degree attainment gap. Three main factors may contribute to the presence of transfer shock: administrative barriers, a student’s inability to achieve specific educational milestones successfully, and adjustment difficulties upon transfer to the four-year institution. In addition, data have identified associate degree attainment and high GPA earned at the community college as the two most significant performance indicators of baccalaureate persistence and completion.
In this study, organizational change theories are discussed as a significant factor to help eliminate transfer barriers. These theories support institutional leaders in adopting an organizational culture that supports transfer student success. As a result, a new comprehensive transfer advising model is proposed that focuses on removing transfer barriers, improving student educational milestone achievement, and facilitating student adjustments within the academic environment. This model is based on the completion of crucial educational milestones that demonstrate student success, such as high GPA earned at the community college and associate degree attainment. The effects of transfer shock may also be minimized, which may in turn lead to a decrease in the baccalaureate degree gap.MITIGATING THE EFFECTS OF TRANSFER SHOCK AMONG COMMUNITY COLLEGE TRANSFER STUDENTS: CREATING AN ADVISING MODEL FRAMEWORK
Lisa Romano
A thesis
Submitted to the
Graduate Faculty
of
University of Maryland University College
in Partial Fulfillment of
The Requirements for the Degree
of
Doctor of Management
James D. Tschechtelin, Ed.D. and Charlene Nunley, Ph.D.
December 16, 2013MITIGATING THE EFFECTS OF TRANSFER SHOCK ii
Abstract
Data have shown that there is a baccalaureate degree gap between community college transfer students and those who begin their studies at four-year institutions. Transfer shock is examined as a possible variable that negatively affects community college transfer students and may contribute toward the baccalaureate degree attainment gap. Three main factors may contribute to the presence of transfer shock: administrative barriers, a student’s inability to achieve specific educational milestones successfully, and adjustment difficulties upon transfer to the four-year institution. In addition, data have identified associate degree attainment and high GPA earned at the community college as the two most significant performance indicators of baccalaureate persistence and completion.
In this study, organizational change theories are discussed as a significant factor to help eliminate transfer barriers. These theories support institutional leaders in adopting an organizational culture that supports transfer student success. As a result, a new comprehensive transfer advising model is proposed that focuses on removing transfer barriers, improving student educational milestone achievement, and facilitating student adjustments within the academic environment. This model is based on the completion of crucial educational milestones that demonstrate student success, such as high GPA earned at the community college and associate degree attainment. The effects of transfer shock may also be minimized, which may in turn lead to a decrease in the baccalaureate degree gap.
Keywords: transfer shock, community college, transfer, completion, GPA, advising, organizational change, baccalaureate performanceMITIGATING THE EFFECTS OF TRANSFER SHOCK iii
© COPYRIGHT BY
Lisa Romano
2013MITIGATING THE EFFECTS OF TRANSFER SHOCK iv
Dedication
This study is dedicated to my daughter, Isabella. I hope you will always follow your dreams, overcome obstacles while learning from them, and see that life’s challenges can provide you with a great deal of opportunities. Learn to enjoy the taste of lemonade because life loves to provide you with lemons. This study is my attempt to provide ‘lemonade’ to community college transfer students. I also dedicate this study to my family and friends who have supported me through this journey and who always had faith in me. I could not have completed this work without your unending love and friendship. Thank you.MITIGATING THE EFFECTS OF TRANSFER SHOCK v
Acknowledgments
This study could not have been completed without the consistent encouragement and expertise provided by Dr. James Tschechtelin and Dr. Charlene Nunley, as well as the talented faculty in this program. It has been a tremendous experience learning from you, and I appreciate your mentoring and support during this journey. I must also acknowledge the administrators at UMUC who have encouraged my participation in the doctoral program and supported my scholarship in enhancing transfer pathways for community college transfer students. MITIGATING THE EFFECTS OF TRANSFER SHOCK vi
Table of Contents
Chapter
1 INTRODUCTION AND RESEARCH PROBLEM.................................................. 1
Problem Statement ..................................................................................................... 2
Background of the Problem.............................................................................. 3
Administrative barriers ............................................................................ 3
Lack of milestone achievement ............................................................... 5
Adjustment and assimilation difficulties ................................................. 6
Transfer shock.......................................................................................... 7
Key Terms.................................................................................................................. 8
Research Questions.................................................................................................... 9
Significance................................................................................................................ 12
Organization of the Dissertation ................................................................................ 14
2 LITERATURE REVIEW.......................................................................................... 16
Transfer Shock........................................................................................................... 17
Persistence Differences and Baccalaureate Attainment Gap ............................ 18
Educational Milestone Attainment as Predictor of Baccalaureate Performance ....... 20
Associate’s Degree Attainment (or Equivalent Credits)................................... 21
GPA Earned at the Community College........................................................... 22
Adjustment and Assimilation Difficulties ................................................................. 24
Student Involvement and Departure ................................................................. 24
Social and Academic Adjustment and Assimilation......................................... 28
Significance of the Sophomore Year ................................................................ 32
Administrative Barriers.............................................................................................. 36
Academic Advising........................................................................................... 36
Momentum Point and Milestone Achievement ................................................ 39
Organizational Change and Institutional Leadership........................................ 42
Kotter’s (1996) 8-Step Change Model....................................................................... 45
Step One: Create Urgency ................................................................................ 45
Step Two: Form a Powerful Coalition.............................................................. 45
Step Three and Step Four: Create a Vision for Change and Communicate/ the Vision................................................................................................. 46
Step Five: Remove Obstacles ........................................................................... 47
Step Six: Create Short-Term Wins ................................................................... 47
Step Seven: Build on Change ........................................................................... 47
Step Eight: Anchor the Changes in Corporate Culture..................................... 48MITIGATING THE EFFECTS OF TRANSFER SHOCK vii
Chapter
3 CONCEPTUAL MODEL.......................................................................................... 50
Assumptions............................................................................................................... 51
Transfer Shock........................................................................................................... 53
Organizational Change............................................................................................... 54
Transfer Advising Model........................................................................................... 56
Momentum Point and Milestone Achievement ......................................................... 60
Milestone: High GPA Earned at the Community College................................ 67
Milestone: Associate’s Degree or Equivalent Credit Earned Within 2-4 Years.................................................................................................. 68
Milestone: Transfer and Matriculation to a Baccalaureate Institution.............. 71
Milestone: Baccalaureate GPA Greater Than or Equal to Ending Community College GPA........................................................................ 76
Milestone: Baccalaureate Degree Earned Within 2-4 Years ............................ 77
4 RESEARCH METHODOLOGY............................................................................... 80
Evidence Collection, Examination, and Analysis...................................................... 81
Evidence Collection.......................................................................................... 81
Examination and Analysis ................................................................................ 84
Expert Opinion Evidence.................................................................................. 85
Literature Reviews on Best Practices ............................................................... 85
Quantitative and Mixed Methods Research Designs........................................ 89
Subject Matter Experts............................................................................................... 92
Summary………….................................................................................................... 94
5 FINDINGS AND ANALYSIS .................................................................................. 97
Subject Matter Expert Reviews ................................................................................. 99
Summary of the Subject Matter Experts’ Comments ...................................... 100
Analysis of Subject Matter Expert Reviews .....................................................102
Opinion Articles or Books .........................................................................................104
Literature Reviews of Best Practices .........................................................................106
Quantitative and Mixed Methods Research Studies (Non-experimental) .................106
Key Findings..............................................................................................................109
Summary....................................................................................................................114MITIGATING THE EFFECTS OF TRANSFER SHOCK viii
Chapter
6 IMPLICATIONS AND NEED FOR FUTURE RESEARCH...................................116
Implementation Model...............................................................................................116
Implications for Management Practice in Higher Education.....................................122
Limitations of the Implementation Model .................................................................123
Future Research Needs and Implications...................................................................124
Conclusion .................................................................................................................127
REFERENCES ..........................................................................................................129
APPENDIX
A Expert Review Evaluation Form................................................................................140MITIGATING THE EFFECTS OF TRANSFER SHOCK ix
List of Tables
Table
1 Research Identifying the Presence of Transfer Shock (Expanded Definition) .......... 19
2 Research Related to Educational Milestone Attainment as Predictors of Baccalaureate Performance........................................................................................ 23
3 Theories and Research Related to Adjustment and Assimilation Difficulties........... 35
4 Change Strategies Identified by Chin and Benne (1985)........................................... 56
5 Transfer Advising Model: Momentum Points and Milestones for Community
College Transfer Students.......................................................................................... 62
6 Momentum Points and Milestones for Community College Transfer Students ........ 78
7 Examples of Keyword Search Terms Using Multiple Databases.............................. 83
8 Evaluation of Literature: Expert Opinion Documents ............................................... 86
9 Evaluation of Literature: Literature Reviews on Best Practices................................ 88
10 Evaluation of Literature: Quantitative and Mixed Methods Research Designs ........ 90
11 Subject Matter Expert Reviewer Evaluation Metrics and Ratings .......................... 100MITIGATING THE EFFECTS OF TRANSFER SHOCK x
List of Figures
Figure
1 Conceptual model: Momentum point and milestone advising model ....................... 50
2 Implementation model: Momentum point and milestone advising model ................117MITIGATING THE EFFECTS OF TRANSFER SHOCK 1
Chapter 1
INTRODUCTION AND RESEARCH PROBLEM
Purpose
Community college transfer students experience a greater risk for departure from college than their native four-year counterparts due to the impact of “transfer shock” (Hills, 1965). This phenomenon continues to plague community college transfer students today (Best & Gehring, 1993; Keeley & House, 1993; Laanan, 2007), as evidenced by lower baccalaureate completion rates among community college transfer students as compared with students who began their college education at four-year institutions (Berkner, He, & Cataldi, 2002; Best & Gehring, 1993; McCormick & Carroll, 1997; Radford, Berkner, Wheeless, Shepherd, & Hunt-White, 2010). The purpose of this study was to identify community college transfer student behaviors and management practices that mitigate the effects of transfer shock, increase first-year persistence rates at four-year institutions, and increase bachelor degree attainment rates.
Administrative transfer barriers, the inability of students to complete key educational milestones successfully, and student adjustment difficulties are factors explored in this study that may contribute to the presence of transfer shock. A proposed transfer advising model, consisting of comprehensive interlocking programs and services targeting student engagement and the completion of educational momentum points and milestones, may minimize the presence of transfer shock. This model may lead to increased persistence and completion at the baccalaureate institution, thereby closing the baccalaureate attainment gap between community college transfer students and native four-year students.MITIGATING THE EFFECTS OF TRANSFER SHOCK 2
Although the advising model provides the framework for community colleges and four-year institutions to collaborate more fully on the success of their respective institutions and students, leaders at both institutions must examine and promote organizational change theories to cultivate an environment supportive of 2+2 transfer. The role of institutional leaders and organizational change theories were explored as mechanisms to reduce factors that support the presence of transfer shock. Roles and responsibilities among leadership at both institutions were also reviewed, and recommendations for implementing the advising model were offered.
Problem Statement
In The Quiet Crisis (2004), Smith discussed the overall failures of the American higher education system. According to Smith (2004), higher education is not amenable to the changing educational climate and to the needs of today’s students. He identified several key areas of how institutions are failing their students, causing degree attainment rates to decline: they are not prepared to educate a growing diverse student population in a global economy; they are entrenched by tradition, creating exclusivity and becoming increasingly aristocratic; they are outdated in how they serve students and are focused on teaching versus learning; and they need visionary leadership to meet the challenges of a diverse, global economy. Smith identified these challenges as barriers toward degree completion. One student population that tends to encounter even more difficulty is students transferring from a community college to a baccalaureate institution. The problem is that the process of transfer from two- to four-year colleges is not working effectively to facilitate achievement of baccalaureate degrees by community college students. This problem is documented in a wide range of research (College Board, 2011; King, 1993; Laanan, 2007).MITIGATING THE EFFECTS OF TRANSFER SHOCK 3
Background of the Problem
Although first-time enrolled community college students (from public institutions) who transfer to a baccalaureate institution maintain similar persistence rates (re-enrollment in successive semesters) after transferring as native four-year students (McCormick & Carroll, 1997), only 36% of community college transfer students complete a bachelor’s degree within six years after initial enrollment (Berkner, He, & Cataldi, 2002). Compared with their counterparts who started at four-year institutions, 63% of native four-year students earn bachelor’s degrees within the same timeframe (Berkner, He, & Cataldi, 2002). More recent data identified a more drastic difference in baccalaureate attainment rates between community college transfer students (12%) and native four-year students (58%) (Radford et al., 2010). It appears that community college transfer students require a longer time to baccalaureate completion, compared with students who began their studies at four-year institutions, thereby causing a baccalaureate attainment gap (Dougherty, 1992). They also encounter more barriers to degree attainment, compared with their four-year counterparts. Barriers to successful 2+2 transfer can be grouped into three categories: administrative, lack of educational milestone achievement, and adjustment and assimilation difficulties. These barriers may also support the presence of transfer shock.
Administrative barriers. Administrative barriers encompass a variety of institutional policies and procedures that tend to inhibit a seamless transfer pathway for community college transfer students to baccalaureate institutions. Current transfer policies and practices among post-secondary institutions in the United States are often complicated and laborious, and no longer meet the needs of students or institutions (Cardenas & Warren, 1991; College Board, 2008, p. 18). Transfer processes are often outdated and inefficient; transfer evaluation processes are typically manual, causing a delay in a student’s receipt of an evaluation of transfer credits; and MITIGATING THE EFFECTS OF TRANSFER SHOCK 4
baccalaureate institutions rarely offer specialized transitional transfer advising services to community college transfer students (Laanan, 1996; Smith, 2004; Ullman, 2011).
More specifically, most states do not have a universal course numbering system (all public colleges have the same course numbers and titles for the same content) or a standard general education curriculum (i.e., a state-wide identification of core classes, such as English, mathematics, science, etc. that transfer and are accepted as a block of credit) (Ignash & Townsend, 2001). These features make reviewing student transcripts arduous and labor-intensive because transcripts are evaluated on a course-by-course basis (College Board, 2008). In many cases, a student may not receive a review of his or her transfer credits until several semesters after transferring (College Board, 2011). This may cause a student to duplicate previously taken courses which results in wasted time and money.
The lack of transferability of credits is the number-one barrier reported among transfer students (Glass & Bunn, 1998; King, 1993). Some students may be required to retake an English or math course because the baccalaureate institution may not accept those courses in transfer from a community college. Another common practice that results in the loss of transfer credit is that credit from the community college may not transfer into the degree program at the baccalaureate institution (Ullman, 2011). This situation not only frustrates transfer students but may also delay bachelor degree attainment
UMUC - European Division - Mason G Daly - Dr. John A. Hunt - July 20 1966
No full textEurope;Hoffmann, RosemaryDr. John A. Hunt
July 20, 1966
The senior area director, fearing the middle ages of the Maryland program in Europe, has turned rat. We have seasoned and aged him. We have goaded and cajoled him to get a degree. We have given him a base to work on that degree and a job to keep him from working on it. We have carried him with that lovely euphemism in the catalog for five years - you know, John Austin Hunt, PhD Candidate ¬showing him we were both hopeful and desperate. And now that he has it finally, now that he can look as genuinely Elizabethan as his scholarship and general bearing and those Birmingham robes make him look, he leaves the ship, he rats to Massachusetts.
We prepped for Massachusetts before, you know. Ernest Hofer, also long-time PhD candidate in our midst, also anglo-oriented, joined that outfit two years ago and may be guilty of some not so innocent proselytizing of this rat.
This man Hunt had an identification with all of us here in Heidelberg that few UK directors have achieved. Although his visits were always short, he established himself as hard-core material of the first order. He had to make his visits short because of this tendency to be hard-core; otherwise he would have destroyed himself and the rest of the hard-core because of his enormous appetite for good food and good drink and his enormous, almost consuming, gregarious intellect and conversational prowess.
This man Hunt can be criticized in only one significant regard: his dealings with Big Daddy Ehrensberger. Although he was carefully briefed in this matter, and constantly scolded and reminded to do better, he just could not measure up. Incredibly and persistently John Hunt insisted on the illusion that his mission in the UK had something more to do with classes and teachers and students than it had to do with custom-made shoes, sundry goodies from Fortnum and Mason, and Royal Doulton figurines from Harrods. Even with a worried back-up from Lila Morris, he was incapable of getting a pair of shoes to the right side of the channel, incapable of getting customs tags phonied-up in proper Ehrensberger style, or of having figurines packed in half enough excelsior. Although, like the rest of us, he has a feeling of loss at John's departure, Big Daddy can't avoid an expression of genuine relief, that Hunt-is now a Massachusetts hazard to good administration.
A hazard you may have been, but a good administrator you were, John Hunt. Even when you were bluffing you did it with such finesse and maturity and absolutely controlled histrionics that your words sounded like wisdom. We have a whole file of your letters which t ear strips off recalcitrant faculty with the language and sentence structure that has been a lost art since Elizabethan times. We have another file, loaded with some of the richest words in the English language, kept in asbestos in the comptroller's office, which reflects nothing more than the running fight you have carried on for five years getting early releases on Otto Pick's pay checks. Although you strained the patience and equilibrium of Jan Hartman, the man you have called that "middle-European bureaucrat," you had his frustrated devotion, and we do not really believe he left us because of you. We have never known an area director who maintained respect and rapport with his faculty to the extent that you have. This respect and understanding was shown last Friday evening when that faculty gathered in London and showed no strain or, for that matter, surprise that they had to wait for you to arrive at your own farewell
party, a wait that lasted from 5 pm to 8 :45 pm.
We have a drop-out kit for you here. And because of your long and glorious tenure with us, we have here a curious map which we will have appropriately framed and sent to Massachusetts for appropriate hanging. It will remind you of your area of responsibility; it will remind you of your association with this German headquarters because it is a glorious mixture of English and German, the mixture dating back to 1795. That town Birmingham, from whose university you finally got that degree, was only a market place at "a country crossroads, and Middlesex was by no means a suburb of Greater London. You will note that Ireland seems to loom large out there beyond S. Georgs Kanal and Das Irische Meer. That effect can no doubt be explained by the man who put this, map together, a man who must surely have been some kind of Irische/Deutsche bastard for his name is Franz Johann Joseph von Reilly.
As we watch you desert us, Dr. John Austin Hunt, we give you our certain prediction that Massachusetts will never have had such an administrator/teacher/actor and we dare to say scholar in all its history
The effects of external factors on corporate social responsibility behaviors in healthcare organizations: Responses and outcomes
No full textTo understand corporate social responsibility behaviors and their management in healthcare organizations, the evidence-based research approach was utilized to identify the external factors that influence such behaviors to determine which behaviors are needed to respond most effectively to those factors and to analyze the outcomes of those behaviors. Review and analysis of the literature showed that external factors influencing healthcare organizations’ corporate social responsibility behaviors include government and industry regulation, community expectations, economic crisis, and media awareness. Research also showed that necessary responses by healthcare organizations to these influences include regulatory compliance, responsiveness to stakeholders, ethical practices, and effective communications. Finally, the findings showed that corporate social responsibility behaviors lead to success by healthcare organizations in establishing and maintaining needed partnerships, access to capital, positive recognition, and improved community relations. These benefits indicate that, for stakeholders in healthcare organizations, corporate social responsibility is both the “right thing” as well as the “smart thing” to do. Individual healthcare organizations can use the proposed research model, “Influence = Behaviors = Benefits”, to understand and manage their corporate social responsibility activities, build appropriate supporting programs, and achieve similarly successful outcomes.Running head: SOCIAL RESPONSIBILITY IN HEALTHCARE 1
The Effects of External Factors on Corporate Social Responsibility Behaviors in Healthcare Organizations: Responses and Outcomes By: Faustina Dalaba-Roohi Dissertation submitted to the Faculty of the Graduate School of Management of the University of Maryland University College in partial fulfillment of the requirements for the degree of Doctor of Management Submitted to: Dr. G. David Andersen, Ed.D. and Dr. Eric Dent, Ph.D April 11, 2013SOCIAL RESPONSIBILITY IN HEALTHCARE 2
Abstract
To understand corporate social responsibility behaviors and their management in healthcare organizations, the evidence-based research approach was utilized to identify the external factors that influence such behaviors to determine which behaviors are needed to respond most effectively to those factors and to analyze the outcomes of those behaviors. Review and analysis of the literature showed that external factors influencing healthcare organizations’ corporate social responsibility behaviors include government and industry regulation, community expectations, economic crisis, and media awareness. Research also showed that necessary responses by healthcare organizations to these influences include regulatory compliance, responsiveness to stakeholders, ethical practices, and effective communications. Finally, the findings showed that corporate social responsibility behaviors lead to success by healthcare organizations in establishing and maintaining needed partnerships, access to capital, positive recognition, and improved community relations. These benefits indicate that, for stakeholders in healthcare organizations, corporate social responsibility is both the “right thing” as well as the “smart thing” to do. Individual healthcare organizations can use the proposed research model, “Influence = Behaviors = Benefits”, to understand and manage their corporate social responsibility activities, build appropriate supporting programs, and achieve similarly successful outcomes. Keywords: corporate social responsibility, healthcare organizations, stakeholdersSOCIAL RESPONSIBILITY IN HEALTHCARE 3
Dedication
This dissertation is dedicated to my husband and best friend, Behzad Roohi for his unconditional love and support. SOCIAL RESPONSIBILITY IN HEALTHCARE 4
Acknowledgements
Special thanks to Dr. G. David Andersen, EdD and Dr. Eric Dent, PhD for their knowledge, commitment, and patience. Dr. G. David Andersen was the primary advisor to this researcher. He was a perfect fit for this role because he is the embodiment of the type of scholar that the University of Maryland University College (UMUC) Doctor of Management (DM) program is striving to develop— expert practitioner-scholars who are credible consumers and producers of management research. Dr. Andersen is an outstanding practitioner-scholar who has a wealth of experience in teaching and consulting at UMUC and at the learning center of the Government Accountability Office. Dr. Andersen’s guidance, prompt and constructive feedback has been priceless to this researcher. Special thanks to Dr. Robert Bromber; Dr. Subash Bijlani, Dr Leonard Vernick, Dr. Anthony Sterns, Dr. James Brown and Dr. John Sherlock for their patience, guidance, and for helping me develop my doctoral competences in preparation for this laudable achievement. I also want to thank Dr. Antonio Vives, Dr. Mark Addleson, and Dr. David Zoogah, who agreed to serve as Subject Matter Experts for my dissertation. Their insight and comments on the first two chapters helped to further direct the focus of the dissertation. Dr. Vives, Dr. Addleson , and Dr. Zoogah's contribution to the overall quality of the dissertation is invaluable. To members of my cohort: Mark De Jong, Jack Wayne Hawkins, Jeffrey Lewis Hillard, Edward Jenkins, Dayo Oyeleye, and William Rebarick, I say thank you for your support. We have accomplished something incredible and I am grateful to have had you with me through this journey.SOCIAL RESPONSIBILITY IN HEALTHCARE 5
To my in-laws, Homa Roohi, Behnam Roohi, Becky Roohi, Behyar Roohi and Sita Roohi thank you for believing in me with your sincere kindness and generosity. I am most grateful. The final thanks go to Dr. Dominic Ayine for his kindness and being supportive of my studies. SOCIAL RESPONSIBILITY IN HEALTHCARE 6
Table of Contents
Abstract .......................................................................................................................................... 2
Dedication...................................................................................................................................... 3
Acknowledgements........................................................................................................................ 4
Table of Contents........................................................................................................................... 6
LIST OF FIGURES ...................................................................................................................... 11
LIST OF TABLES........................................................................................................................ 11
CHAPTER 1 ................................................................................................................................ 12
INTRODUCTION .................................................................................................................... 12
Purpose of the Study ................................................................................................................. 17
Statement and Significance of Problem.................................................................................... 18
Importance of the Study to Management and Academics .................................................... 22
Research Questions................................................................................................................... 23
Definition of Terms................................................................................................................... 23
Organization of the dissertation................................................................................................ 25
CHAPTER 2 ................................................................................................................................ 26
LITERATURE REVIEW............................................................................................................. 26
Introduction.............................................................................................................................. 26
Historical Development of Corporate Social Responsibility.................................................... 26
The Pre-1950s ....................................................................................................................... 26
The 1960s to the 1980s ......................................................................................................... 29
The 1990s to Present............................................................................................................. 31
Defining Corporate Social Responsibility ................................................................................ 32
Theoretical Foundations............................................................................................................ 33 SOCIAL RESPONSIBILITY IN HEALTHCARE 7
Social Theory........................................................................................................................ 33
Stakeholder Theory............................................................................................................... 34
Ethical Theory....................................................................................................................... 34
Stewardship Theory .............................................................................................................. 35
Corporate Social Responsibility in Healthcare Organizations.................................................. 36
External Factors Influencing Corporate Social Responsibility Behaviors in Healthcare Organizations ............................................................................................................................ 38
Government and Industry Regulation................................................................................... 38
Economic Crisis .................................................................................................................... 42
Community Expectations...................................................................................................... 42
Media Awareness.................................................................................................................. 43
Responsive Corporate Social Responsibility Behaviors by Healthcare Organizations............ 44
Regulatory Compliance ........................................................................................................ 44
Ethical Practices.................................................................................................................... 46
Responsiveness to Stakeholders ........................................................................................... 47
Effective Communication ..................................................................................................... 49
Outcomes of Healthcare Organizations’ Responsive Corporate Social Responsibility Behaviors ................................................................................................................................. 51
Needed Partnerships.............................................................................................................. 51
Increased Access to Capital .................................................................................................. 53
Positive Recognition ............................................................................................................. 54
Improved Community Relations........................................................................................... 55
SUMMARY............................................................................................................................. 57
CHAPTER 3 ................................................................................................................................ 58
CONCEPTUAL FRAMEWORK................................................................................................. 58 SOCIAL RESPONSIBILITY IN HEALTHCARE 8
Introduction to Conceptual Framework .................................................................................... 58
The Message in the Literature Review ..................................................................................... 58
The Conceptual Framework...................................................................................................... 61
External Factors Influencing CSR Behaviors in Healthcare..................................................... 61
Government and industry regulations................................................................................... 62
Economic crisis..................................................................................................................... 63
Community expectations. ..................................................................................................... 63
Media awareness................................................................................................................... 64
Needed and Effective CSR Behaviors ...................................................................................... 64
Compliance to regulations. ................................................................................................... 65
Responsiveness to stakeholders. ........................................................................................... 66
Effective communication. ..................................................................................................... 66
Ethical behavior. ................................................................................................................... 67
Outcomes of CSR Behavior in Healthcare ............................................................................... 68
Needed partnerships.............................................................................................................. 68
Increased access to capital. ................................................................................................... 69
Positive recognition. ............................................................................................................. 70
Improved community relations. ............................................................................................ 70
The Conceptual Framework...................................................................................................... 71
SUMMARY............................................................................................................................. 72
CHAPTER 4 ................................................................................................................................ 74
METHODOLOGY ....................................................................................................................... 74
Introduction to Methodology .................................................................................................... 74
Discussion of Evidence-Based Research and Methodology..................................................... 74 SOCIAL RESPONSIBILITY IN HEALTHCARE 9
Methodology Process................................................................................................................ 78
Personal Assessment Tool (PAT) ............................................................................................. 81
Subject Matter Experts Process and Selection.......................................................................... 84
Expert Panel Feedback.......................................................................................................... 85
Panel Members’ Contribution............................................................................................... 88
SUMMARY............................................................................................................................. 89
CHAPTER 5 ................................................................................................................................ 91
ANALYSIS AND DISCUSSION OF FINDINGS....................................................................... 91
Introduction.............................................................................................................................. 91
Purpose of the Study ................................................................................................................. 91
Presentation and Analysis of Findings...................................................................................... 92
Introduction: The Recap ....................................................................................................... 92
Research Question #1. Why does the HC industry embrace CSR in their community? .......... 93
Findings #1............................................................................................................................ 93
Findings # 2........................................................................................................................... 94
Findings # 3........................................................................................................................... 96
Findings # 4........................................................................................................................... 98
Research Question # 2. How do HC organizations successfully respond with CSR behaviors to serve the community? ............................................................................................................... 99
Findings # 1........................................................................................................................... 99
Findings # 2......................................................................................................................... 100
Finding # 3. ......................................................................................................................... 100
Findings # 4......................................................................................................................... 102
Research Question # 3. What are the outcomes of CSR behaviors in HC?............................ 103
Findings # 1......................................................................................................................... 103 SOCIAL RESPONSIBILITY IN HEALTHCARE 10
Findings # 2......................................................................................................................... 105
Findings # 3......................................................................................................................... 106
Findings # 4......................................................................................................................... 107
CONCLUSIONS.................................................................................................................... 108
ALTERNATIVE PERSPECTIVES........................................................................................ 112
SUMMARY........................................................................................................................... 114
CHAPTER 6 ............................................................................................................................... 115
CONCLUSIONS, IMPLICATIONS, AND RECOMMENDATIONS FOR FUTURE RESEARCH............................................................................................................................... 115
Introduction............................................................................................................................ 115
Overall Conclusions................................................................................................................ 116
CONCLUSION: Pressure from External Factors Compel the HC Industry to Embrace CSR117
CONCLUSION: The HC industry uses CSR to successfully respond to their communities. 119
CONCLUSION: There are several desired outcomes to engaging in CSR behaviors in HC. 120
Implications for Management ................................................................................................. 121
Implication of Trends.............................................................................................................. 123
Limitations of Study ............................................................................................................... 125
Areas for Future Research ...................................................................................................... 125
SUMMARY........................................................................................................................... 126
References.............................................................................................................................. 128
Appendices................................................................................................................................. 152
Appendix 1: Invitation to Participate on Expert Panel .......................................................... 152
Appendix 2: Email Template .................................................................................................. 154
Appendix 3: Detailed Feedback from Dr. Antonio Vives ...................................................... 155
Appendix 4: Detailed Feedback from Dr. Mark Addleson.................................................... 157 SOCIAL RESPONSIBILITY IN HEALTHCARE 11
Appendix 5: Detailed Feedback from Dr. David Zoogah.....................................................
The impact of leaders’ communication and employee identification on post-merger and acquisition (M&A) cultural integration
No full textMergers and acquisitions (M&As) have become an important business strategy to help improve organizational performance. M&As have been identified as one of the key strategies to help organizations compete in the global economy and have become attractive business strategies widely adopted and utilized among industries and global businesses. From the employee perspective, a merger or acquisition event can create uncertainty, changes and job losses. The literature suggests that some mergers and acquisitions fail not so much because of financial factors but more often because of the lack of integration of organizational cultures and other human factors. There is general agreement among some authors that studying human factors, rather than just M&A financial factors, provides a far better understanding of M&As’ successes and failures. Research on M&As suggests that managers should encourage employees to support an organizational (or collective) identity in order to maximize the positive outcome of M&As. Through an extensive systematic review of the literature and an evidence based research methodology, this dissertation critically analyzed and examined the following questions: 1) How does the process of cultural integration during the post-merger and acquisition (M&A) period impact the performance outcome of M&As, specifically, on employee commitment, employee turnover rates and employee job satisfaction? 2) What is the impact of employee identification with the organization in the M&A’s organizational cultural integration process? 3) What is the effect of leaders’ communication on employee identification with the organization during the post-M&A cultural integration period? Based on the findings from the systematic review of the
The impact of leader’s communication and employee identification on post-merger and acquisition (M&A) cultural integration
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literature, the research questions are addressed and recommendations for ensuring successful post-merger and acquisition (M&A) cultural integration are presented. Keywords: cultural integration, employee identification, leaders’ communication, organizational culture, organizational identification, M&A human factors, mergers and acquisitions, merger performance, post-merger integrationThe impact of leaders’ communication and employee identification on post-merger and acquisition (M&A) cultural integration
Poomchai Salyachivin
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 2013
Dissertation Committee:
Kathleen F. Edwards, Ph.D.
James P. Gelatt, Ph.D.
Leslie D. Dinauer, Ph.D.
December 5, 2013
The impact of leader’s communication and employee identification on post-merger and acquisition (M&A) cultural integration
2
Abstract of Dissertation
Mergers and acquisitions (M&As) have become an important business strategy to help improve organizational performance. M&As have been identified as one of the key strategies to help organizations compete in the global economy and have become attractive business strategies widely adopted and utilized among industries and global businesses. From the employee perspective, a merger or acquisition event can create uncertainty, changes and job losses. The literature suggests that some mergers and acquisitions fail not so much because of financial factors but more often because of the lack of integration of organizational cultures and other human factors. There is general agreement among some authors that studying human factors, rather than just M&A financial factors, provides a far better understanding of M&As’ successes and failures. Research on M&As suggests that managers should encourage employees to support an organizational (or collective) identity in order to maximize the positive outcome of M&As. Through an extensive systematic review of the literature and an evidence based research methodology, this dissertation critically analyzed and examined the following questions: 1) How does the process of cultural integration during the post-merger and acquisition (M&A) period impact the performance outcome of M&As, specifically, on employee commitment, employee turnover rates and employee job satisfaction? 2) What is the impact of employee identification with the organization in the M&A’s organizational cultural integration process? 3) What is the effect of leaders’ communication on employee identification with the organization during the post-M&A cultural integration period? Based on the findings from the systematic review of the The impact of leader’s communication and employee identification on post-merger and acquisition (M&A) cultural integration
3
literature, the research questions are addressed and recommendations for ensuring successful post-merger and acquisition (M&A) cultural integration are presented. Keywords: cultural integration, employee identification, leaders’ communication, organizational culture, organizational identification, M&A human factors, mergers and acquisitions, merger performance, post-merger integration
The impact of leader’s communication and employee identification on post-merger and acquisition (M&A) cultural integration
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Contents
Chapter One: Introduction and Overview of Relevant Literature ...................................... 7
Background ..................................................................................................................... 7
Statement and Significance of the Problem .................................................................. 11
Purpose of Dissertation ................................................................................................. 12
Importance to Management .......................................................................................... 12
Assumptions .................................................................................................................. 14
Research Questions ....................................................................................................... 17
Organization of the Dissertation ................................................................................... 17
Chapter Two: Systematic Review of the Literature .......................................................... 20
Introduction to the Chapter ........................................................................................... 20
Theoretical Lenses ........................................................................................................ 21
Acculturation Theory ........................................................................................................ 21
Social Identity Theory (SIT) ............................................................................................. 23
Organizational Citizenship Behavior ................................................................................ 24
Critical Review and Analysis........................................................................................ 26
Four Stages of the Merger and Acquisition Process ......................................................... 31
Impact of Mergers and Acquisitions on Employees ......................................................... 33
The role of people in M&As ............................................................................................. 38
Micro Level Issues and Mergers’ Success ........................................................................ 43
Summary of Micro Level Issues and Mergers’ Success ................................................... 46
Employees’ psychological reactions to M&As................................................................. 47
Attitude and Behavior and Organizational Identification ................................................. 52
Proposition Development.............................................................................................. 61
Organizational Identity ..................................................................................................... 62
Organizational Identity and Sense of Continuity .............................................................. 65
Identity Threat ................................................................................................................... 68
Organizational Identification ............................................................................................ 70
Identification and Job Satisfaction .................................................................................... 74
Organizational Identification and Organizational Commitment ....................................... 75
Identification and Decision Making.................................................................................. 77
Communication and M&A legitimacy.............................................................................. 80 The impact of leader’s communication and employee identification on post-merger and acquisition (M&A) cultural integration
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Macro Level Issues and Mergers’ Success ....................................................................... 87
Human Capital and Merger Performance ......................................................................... 90
Cultural Fit and Merger Performance ............................................................................. 100
Cultural Distance and Organizational Change ................................................................ 106
Cultural Compatibility and Cultural Integration ............................................................. 115
Perceived Cultural Similarity and Cultural differences .................................................. 118
Cultural Clashes and the Acculturation Process ............................................................. 119
Summary of Macro Level Issues and Mergers’ Success ................................................ 127
Summary of Research Propositions ............................................................................ 131
Summary of Chapter Two ........................................................................................... 132
Chapter Three: Conceptual Framework .......................................................................... 133
Introduction ................................................................................................................. 133
The Dissertation .......................................................................................................... 133
Graphical Analysis (Conceptual Framework Diagram) ............................................. 134
Integration of Scholarship into the Framework .......................................................... 135
Social Identity ................................................................................................................. 135
Cultural Integration ......................................................................................................... 136
Employees’ Organizational Identification ...................................................................... 137
Leaders’ Communication ................................................................................................ 138
Summary of Propositions ............................................................................................ 142
Chapter Four: Methodology ............................................................................................ 145
Introduction to the Chapter ......................................................................................... 145
Discussion of Evidence Based Research and Methodology ....................................... 146
Role of Systematic Review of the Literature in Evidence Based Management ......... 150
Scholarly Research Process and Approaches ............................................................. 153
Discussion of the Scholarly Research Evidence Processes ........................................ 162
Quality Appraisal of the Evidence .............................................................................. 169
Presentation and Discussion of the Expert Panel ........................................................ 175
Summary of Chapter Four .......................................................................................... 177
Chapter Five: Analysis and Discussion .......................................................................... 179
Introduction to the Chapter ......................................................................................... 179
Purpose of the Study ................................................................................................... 179
Summary and Analysis of the Findings ...................................................................... 179
Alternative Perspectives.............................................................................................. 199
Summary of Chapter Five ........................................................................................... 204
Chapter Six: Conclusion ................................................................................................. 206
Introduction to the Chapter ......................................................................................... 206
Conclusions ................................................................................................................. 206
Theoretical Implications of this Dissertation .............................................................. 208
Implications for Management ..................................................................................... 209
Implications of Trends ................................................................................................ 214
Limitations and Future Study...................................................................................... 219
Summary of the Chapter ............................................................................................. 220
Summary of the Dissertation ...................................................................................... 220
References ....................................................................................................................... 222
Appendices ...................................................................................................................... 250 The impact of leader’s communication and employee identification on post-merger and acquisition (M&A) cultural integration
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Appendix 1: Search Strings ........................................................................................ 250
Appendix 2: Literature Summary Table ..................................................................... 251
Appendix 3: Biographies of Expert Panel .................................................................. 263
The impact of leader’s communication and employee identification on post-merger and acquisition (M&A) cultural integration
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Chapter One: Introduction and Overview of Relevant Literature
Background
Mergers and acquisitions (M&As) have become an important business strategy to help improve organizational performance. In fact, mergers and acquisitions have been identified as one of the key strategies to help organizations compete in the global economy (Cooper & Gregory, 2003). Mergers and acquisitions have become attractive business strategies that are widely adopted and utilized among industries and global businesses (Daniel & Metcalf, 2001). To compete effectively in the global economy and maintain market share, organizations need to find ways of operate more efficiently, and stay profitable, adaptable and flexible (Daniel & Metcalf, 2001). It is suggested by the literature that these organizational goals could be achieved through mergers and acquisitions.
The terms “merger” and “acquisition” are often used interchangeably, although
they have different meanings. A merger happens when two organizations
willingly agree to collaborate by joining assets, liabilities, and cultural values on an equal basis across different industries and businesses. Indeed, “a merger is the joining and integration of two previously discrete entities” (Horwitz et al., 2002, p.1). Mergers can be viewed as the consolidation of two separate firms into a new entity (Schraeder & Self, 2003).
An acquisition happens when one organization buys and takes over the operations of another organization and establishes itself as the new owner. The acquired company ceases to exist and the acquirer resumes the business operations as well as continues The impact of leader’s communication and employee identification on post-merger and acquisition (M&A) cultural integration
8
to trade the acquiring company’s stock (Giddy, 2009). Horwitz et al. (2002) stated that an acquisition occurs when one firm acquires sufficient shares to increase the level of control over the second organization and gain ownership of it.
From the employee perspective, a merger or acquisition event can create uncertainty, changes and job losses. However, there are differences between mergers and acquisitions. In an acquisition, power is significantly assumed by the new parent company. Change is usually swift and often hostile as the acquirer imposes its own control systems and financial restraints (Cartwright, 2006). Acquiring and acquired companies in a merger tend to be evenly matched in terms of size, as well as in the power and cultural dynamics of the combination of both companies. In mergers, however, because of the extended period of time between the initial merger announcement and actual integration, uncertainty and anxiety continue for a longer time as the organization remains in a state of ambiguity.
M &As can be categorized as “friendly” or “hostile” and the criteria behind the two differ. In both cases, the role of the Board of Directors is a deciding factor. In a hostile M&A, after the tender offer is presented before the Board, the Board evaluates the offer and decides whether it is advantageous for the shareholders to accept or decline it. The decision is not only made with the interests of the shareholders in mind, but other areas are also examined, such as national and state economies, long-term and short-term effects of a transaction as well as the benefits of remaining independent. For example, if the Board feels that the tender is not agreeable, it turns down the offer. If the contract agreement is not agreed upon by the management team of the acquiring company, then The impact of leader’s communication and employee identification on post-merger and acquisition (M&A) cultural integration
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the M&A will be considered hostile and, therefore, a hostile takeover is said to have occurred (‘The Hostile Takeover,’ 2012).
In the case of a friendly M&A, the Board approves the offer presented by the acquiring firm. Both the acquired and the acquiring companies oversee each other’s interests and decide to merge. As such, the decision is made by the two companies’ management agreement, driven by synergy considerations, creating greater value for the shareholders as well as enhancing the cooperation from the acquired and the acquiring company (Morck, Shleifer, & Vishny, 1988).
Mergers and acquisitions are a current business phenomenon used by most multinational business systems as a means by which the companies attempt to strengthen their competitive advantage in the global economy (Cooper & Gregory, 2003). Empirical research has suggested that there is a significant correlation between the scale of the newly consolidated organization and its maintenance of a high performance standard (Hitt & Pisano, 2004). It is posited that the consolidated organization would be financially stronger than were they to remain separate (Davenport, 2002). Javidan, Pablo, Sing, Hitt, and Jemison (2004) have suggested that the combination of available capital, new technology, and knowledge that brings about innovation has been shown to successfully create a well-networked structure among different businesses and industries globally. Large, consolidated organizations have the power to utilize their networked structure to dominate the market and deliver superior performance compared to separate, small, singular entities (Hitt & Pisano, 2004). According to Stahl and Voigt (2008), while some mergers and acquisitions take place for financial reasons, the main reasons for businesses to go through M&As are “to improve the competitive position of one or The impact of leader’s communication and employee identification on post-merger and acquisition (M&A) cultural integration
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both of the firms by generating ‘synergies,’ whereby the two firms create more value than either could achieve alone” (p. 163).
The literature also suggests that not all mergers and acquisitions have been successful, and the reasons cited are not so much financial factors but more because of the lack of integration of organizational cultures and other similar human factors (Schmidt, 2002). Schmidt (2002) reports that the compatibility of organizational culture was ranked as high as 80 percent as a factor for failure in mergers and acquisitions. The question most often asked about mergers and acquisitions is why there is a high percentage of failed transactions. Some authors generally agree that studying the human factors rather than just the M&A financial factors promises a far better understanding of M&As’ successes and failures (Bijlsma-Frankema, 2001). Gilkey (1991) attributed the high percentage of M&A failure to the fact that M&As are designed with business and financial fit as a primary objective, leaving psychological and cultural issues as secondary concerns.
Transfer credit equivalency models: Improving the transfer process
No full textThe purpose of this study was to systematically review the literature on the functionality of student credit transfer processes in American higher education and to develop a model to optimize student transfer success. There is a lack of seamless transfer of college credit between publicly supported institutions of higher education that results in increased tuition costs, less efficient use of taxpayer dollars, and diminished degree attainment. This dissertation examines the characteristics and variables associated with successful approaches of the state systems of higher education that improve transfer and lead to degree completion. Several states’ systems include engagement with private colleges within their strategies and the present study reviews the impact this has on students’ progression to their degrees. Nationally, accountability expectations of government and public stakeholders are encouraging public institutions to improve efficiencies.
The methodological approach for this systematic review included a review of both qualitative and quantitative studies from peer reviewed journals. Because there was a dearth of recent studies exploring the effectiveness of impact on baccalaureate degree completion resulting from state transfer policy and model design, an expansion into research by non-profit organizations and governmental agencies was included. In addition, the present study includes an evaluation rubric designed to provide a framework for this literature review to assess the validity, reliability, and overall research quality.
The results of this study inform higher education stakeholders on all levels of the current state of the literature that investigates credit transfer and provides a model for transfer equivalency determination. While the literature is inconclusive regarding the effectiveness of state policy and practice designed to improve transfer resulting in advancing the transfer rate or baccalaureate degree attainment, promising practices remain of interest and may be shown to improve outcomes. A product model suggesting that state systems incorporates a general education transfer process and accompanying student services as a foundational element is provided. The product model incorporates additional features, including a common course numbering system, inclusion of the private sector institutions, faculty engagement, and a statewide records process and assessment plan.Equivalency Models 1
Transfer Credit Equivalency Models:
Improving the Transfer Process
Richard N. Woodfield, Jr.
A Thesis
Submitted to the Graduate Faculty
Of
University of Maryland University College
In Partial Fulfillment of
The Requirements for the Degree of
Doctor of Management
James D. Tschechtelin, Ed.D.
Mary Kay Shartle-Galotto, Ph.D. Equivalency Models 2
Abstract
The purpose of this study was to systematically review the literature on the functionality of student credit transfer processes in American higher education and to develop a model to optimize student transfer success. There is a lack of seamless transfer of college credit between publicly supported institutions of higher education that results in increased tuition costs, less efficient use of taxpayer dollars, and diminished degree attainment. This dissertation examines the characteristics and variables associated with successful approaches of the state systems of higher education that improve transfer and lead to degree completion. Several states’ systems include engagement with private colleges within their strategies and the present study reviews the impact this has on students’ progression to their degrees. Nationally, accountability expectations of government and public stakeholders are encouraging public institutions to improve efficiencies.
The methodological approach for this systematic review included a review of both qualitative and quantitative studies from peer reviewed journals. Because there was a dearth of recent studies exploring the effectiveness of impact on baccalaureate degree completion resulting from state transfer policy and model design, an expansion into research by non-profit organizations and governmental agencies was included. In addition, the present study includes an evaluation rubric designed to provide a framework for this literature review to assess the validity, reliability, and overall research quality.
The results of this study inform higher education stakeholders on all levels of the current state of the literature that investigates credit transfer and provides a model for transfer equivalency determination. While the literature is inconclusive regarding the effectiveness of state policy and practice designed to improve transfer resulting in advancing the transfer rate or baccalaureate degree attainment, promising practices remain of interest and may be shown to improve outcomes. A product model suggesting that state systems incorporates a general education transfer process and accompanying student services as a foundational element is provided. The product model incorporates additional features, including a common course numbering system, inclusion of the private sector institutions, faculty engagement, and a statewide records process and assessment plan.
Equivalency Models 3
© COPYRIGHT BY
Richard N. Woodfield, Jr
2013
Equivalency Models 4
Dedication
This dissertation is dedicated to the memory of those whose shoulders I stand on who believed in me and supported my education. To my immigrant grandfather, Arne Norberg, whose American dream was tied to his children and grandchildren becoming educated. To my grandmothers, Delores Norberg and Arlene Woodfield, whose hard work always inspired me. To my late mother, Marcia Jeanne Woodfield, especially, whose love and encouragement sustain me even today. I also dedicate this work to my incredibly loving and supportive wife, Dr. Cynthia Woodfield and my two sons, Travis and Miles Woodfield, who have always given my work purpose.
Equivalency Models 5
Acknowledgements
This body of work reflects a great deal of effort associated with my doctoral studies at the University of Maryland University College. There have been so many people who have given generously in support of this dissertation effort. I wish to recognize the panel of experts, whose keen expertise and wisdom helped shape the direction this work took and extend my thank you to each of them. I offer my sincere gratitude to Dr. James Tschechtelin for his support, encouragement, and critical attention given to this dissertation. I also would like to recognize Dr. Pat Keir and Dr. Martha Romero, whose formative presence made this degree valuable to me. I wish to thank my benefactors, James A. Rhodes State College and the anonymous UMUC donor, whose generous fiscal support helped make this all possible.
Equivalency Models 6
Table of Contents
Chapter One: Introduction ............................................................................................................. 9
Background and Context ............................................................................................................. 9
Statement of the Problem .......................................................................................................... 12
Background Related to the Problem.......................................................................................... 16
Statement of Significance.......................................................................................................... 21
Key Theories in Management ................................................................................................... 28
Definition of Terms ................................................................................................................... 28
Thesis ....................................................................................................................................... 31
Research Questions ................................................................................................................... 32
Chapter Two: Literature Review ................................................................................................. 36
Research Strategy ...................................................................................................................... 36
Historical Review of Transfer Credit ........................................................................................ 38
Student preparation for transfer. ............................................................................................ 41
Definitions of transfer. ........................................................................................................... 44
State Systems of Higher Education and General Treatment of Transfer Credit ....................... 46
Transfer Credit Impact on Time in Pursuit of Degree and Degree Attainment ........................ 54
Assessment. ........................................................................................................................... 60
Stakeholder Theory ................................................................................................................... 62
Transfer Models ........................................................................................................................ 64
Summary .................................................................................................................................. 71
Chapter Three: Conceptual Framework ........................................................................................ 74
Concept of Equivalency ............................................................................................................ 74
State Systems Approach ............................................................................................................ 77
Document model.................................................................................................................... 79
Academic model. ................................................................................................................... 80
Modular transfer. ................................................................................................................... 81
Individual course transfer. ..................................................................................................... 84
Conceptual Model ..................................................................................................................... 86
Propositions ............................................................................................................................... 90
Summary .................................................................................................................................. 93 Equivalency Models 7
Chapter Four: Methodology .......................................................................................................... 96
Evidence-Based Research ......................................................................................................... 96
Research Process ....................................................................................................................... 97
Initial Stage of the Literature Review ....................................................................................... 99
Approach and Data Collection Method ................................................................................... 100
Determining Scholarship ......................................................................................................... 102
Results of the Analysis of the Literature ................................................................................. 107
Expert Panel ............................................................................................................................ 116
Summary ................................................................................................................................ 119
Chapter Five: Findings and Analysis .......................................................................................... 122
Analysis of Subject-Matter Review ........................................................................................ 122
Relevance and contribution to the practice of management. ............................................... 123
Scholarly references. ........................................................................................................... 124
Scope of research. ................................................................................................................ 125
Conceptual framework. ....................................................................................................... 125
Writing quality. .................................................................................................................... 125
General comments and recommendations. .......................................................................... 126
Changes Made Based on Feedback ......................................................................................... 126
Analysis of Literature Review Findings ................................................................................. 127
Research question one. ........................................................................................................ 127
Research question two. ........................................................................................................ 135
Research question three. ...................................................................................................... 136
Critical Analysis of Research .................................................................................................. 137
Synthesis of Findings .............................................................................................................. 137
Chapter Six: Implications and Need for Future Research .......................................................... 140
Findings as They Relate to Practice ........................................................................................ 140
Faculty engagement. ............................................................................................................ 140
Assessment. ......................................................................................................................... 141
Common course numbering................................................................................................. 141
Inclusion of private institutions. .......................................................................................... 142
State level investment in transfer process. ........................................................................... 142 Equivalency Models 8
Equivalency models. ............................................................................................................ 143
Conditions that reduce transfer rates. .................................................................................. 143
Product Model ......................................................................................................................... 144
Limitations. .......................................................................................................................... 148
Management and Leadership Theory for Implementation ...................................................... 148
Future Steps Needed................................................................................................................ 149
1. Improved data management. ........................................................................................ 149
2. Improved quality of research........................................................................................ 150
Conclusion ............................................................................................................................... 150
Appendix A ................................................................................................................................ 152
References .................................................................................................................................. 154
Equivalency Models 9
Chapter One: Introduction
The purpose of this chapter is to familiarize the reader with the background of the role of the community college within the American system of higher education over the past 50 years. Specifically, it examines how the community college provides for transfer-credit pathways for students who enter four-year institutions. Because the present study investigates the functionality and efficiency of the transfer processes, a statement of the problem of the barriers students encounter in transferring is essential. Thus, the present study explains why this research is significant, defines the terms associated with transfer, and the research questions that will be included in this systematic review.
Background and Context
Contemporary objectives for American higher education include a shift in strategies to improve student persistence to graduation. According to the Spellings Commission Report (U.S. Department of Education, 2006), this is essential to help students navigate through clear pathways leading to degree attainment. Specifically, the Spellings Commission Report suggests the removal of the barriers to transfer through state and institutional revision of transfer standards and processes. This is no easy task and will require significant data collection and analysis, policy change, and strategic planning. Further, the recent economic crisis has shed light on the impact of global economic changes on degree attainment. For the United States of America to regain its previously held economic leadership role, American higher education will need to adapt to new approaches and policies (Lumina, 2010).
Historically, federal and state policies have encouraged transferable college credit between institutions as a means of accommodating students whose personal situations require them to relocate (Pusser & Turner, 2004). The federal government provided mobile college Equivalency Models 10
financial aid through the New Deal and GI Bill legislation by funding aid awards to individual students and not simply to state systems or institutions.
In an effort to increase student access to postsecondary education, the Higher Education Acts of 1965 and 1972 were ratified. The 1965 law contains the Title IV provision that established financial assistance for students; this was reauthorized in 1972 with the addition of the Title IX Civil Rights component protecting all people from discriminatory practices. Education policy at the state level has traditionally been focused on intra-state agreements that facilitated the transfer of earned credit between state-specific institutions (Pusser & Turner, 2004). Because the federal government has a primary focus on financial aid, little attention has been given to the role of the federal government in inter-state college credit transfer.
Characteristic traits of college students have changed over time. Today’s transfer students are different from those who enrolled in universities and community colleges in the 1960s and 1970s. Pusser and Turner (2004) suggest that changes in demographics and labor markets are having an impact on how students pursue higher education. The U.S. Department of Education (2008) describes the shift as increasingly part-time with about 50 percent part-time in the early 1970s and increasing to 62 percent by 2006. The same U.S. Department of Education publication reports community colleges have a higher percentage of older students who are more likely to be female and from lower income levels than the four-year institutions. In the 2003-2004 academic year, the female population in community colleges was 59 percent while the four-year schools had 54 percent females. As the student body became more female, the race/ethnicity ratio also shifted. Community colleges had 15 percent African-American and 14 percent Hispanic populations while the four-year institutions had 10 percent and nine percent respectfully (U.S. DOE, 2009). The National Student Clearinghouse Research Center (2012) Equivalency Models 11
reports that a third of all students who complete a degree have transfer credit. Of those students who entered higher education in the fall of 2006 and were followed for five years, the two-year college was the most likely type of institution that students transferred to, regardless of the type of institution a student had been enrolled in previously, with almost half of the students transferring from four-year institutions transferring to the two-year college. American higher education has been successful in increasing degree completion rates among underrepresented people; however, this improved completion rate has lagged behind improvement rates among majority students (NASH, 2009).
Today, a more broadly representative student body is evident in higher education, though students from lower socioeconomic levels often find enrolling more difficult because tuition increases have outpaced student financial aid. Low-income, first generation students’ characteristics reflect that they are more likely to be older, female, students with disabilities, students from minority backgrounds, non-English speaking, single parents with dependent children, often in possession of a General Equivalency Diploma, and financially independent from their parents (Engle & Tinto, 2008). While community colleges initially provided access to four-year institutio