Learning and Governance in Inter-Firm Relations

This paper connects theory of learning with theory of governance, in the context of inter-firm relations. It recognizes fundamental criticism of transaction cost economics (TCE), but preserves elements from that theory. The theory of governance used incorporates learning and trust. The paper identifies two kinds of relational risk: hold-up and spillover. For the governance of relations, i.e. the control of relational risk, it develops a box of instruments which includes trust, next to instruments derived and adapted from TCE. These instruments are geared to problems that are specific to learning in interaction between firms. They also include additional roles for go-betweens.transaction cost economics;trust;inter-organizational learning

Running up the Bid: Modeling Seller Opportunism in Internet Auctions

Although the Internet is great for transferring information, transactions in Internet auctions have a greater information asymmetry than corresponding transactions in traditional environments because current auction market mechanisms allow the seller to remain anonymous and to easily change identities. Buyers must rely on the seller\u27s description of a product and ability to deliver the product as promised. Internet auction environments make opportunistic behavior more attractive to sellers because the chance of detection and punishment is decreased. In this research, we examine auction data to see the effect of opportunism in the online auction environment

Multi-agent opportunism

The real world is a complex place, rife with uncertainty; and prone to rapid change. Agents operating in a real-world domain need to be capable of dealing with the unexpected events that will occur as they carry out their tasks. While unexpected events are often related to failures in an agent\u27s plan, or inaccurate knowledge in an agent\u27s memory, they can also be opportunities for the agent. For example, an unexpected event may present the opportunity to achieve a goal that was previously unattainable. Similarly, real-world multi-agent systems (MASs) can benefit from the ability to exploit opportunities. These benefits include the ability for the MAS itself to better adapt to its changing environment, the ability to ensure agents obtain critical information in a timely fashion, and improvements in the overall performance of the system. In this dissertation we present a framework for multi-agent opportunism that is applicable to open systems of heterogeneous planning agents. The contributions of our research are both theoretical and practical. On the theoretical side, we provide an analysis of the critical issues that must be addressed in order to successfully exploit opportunities in a multi-agent system. This analysis can provide MAS designers and developers important guidance to incorporate multi-agent opportunism into their own systems. It also provides the fundamental underpinnings of our own specific approach to multi-agent opportunism. On the practical side, we have developed, implemented, and evaluated a specific approach to multi-agent opportunism for a particular class of multi-agent system. Our evaluation demonstrates that multi-agent opportunism can indeed be effective in systems of heterogeneous agents even when the amount of knowledge the agents share is severely limited. Our evaluation also demonstrates that agents that are capable of exploiting opportunities for their own goals are also able, using the same mechanisms, to recognize and respond to potential opportunities for the goals of other agents. Further and perhaps more interesting, we show that under some circumstances, multi-agent opportunism can be effective even when the agents are not themselves capable of single-agent opportunism

Assessing the Relevancy of National Culture in Predicting the Efficacy of Constraints in the Information Systems Consulting Domain

Opportunism is present in professional services and, as a result, organizations adopt mechanisms to constrain it. Despite the work on constraining opportunistic consultants, researchers have generally ignored the potential impact of national culture on the efficacy of constraint mechanisms. Using the theory of relationship constraints (TRC), this study examines the effectiveness of different constraint mechanisms for information systems (IS) consultants in the United States and China based on different levels of information asymmetry, tacit and explicit knowledge. While we found support in both cultures for the salience of these dimensions, we also found important distinctions for the effectiveness of different constraints between the cultures. Legal constraints are more effective in China while social constraints are more effective in the United States. While TRC is relevant in both cultures, national culture moderates the effectiveness of various constraint mechanisms and highlights the need for additional study

Learning and Governance in Inter-Firm Relations

This paper connects theory of learning with theory of governance, in the context of inter-firm relations. It recognizes fundamental criticism of transaction cost economics (TCE), but preserves elements from that theory. The theory of governance used incorporates learning and trust. The paper identifies two kinds of relational risk: hold-up and spillover. For the governance of relations, i.e. the control of relational risk, it develops a box of instruments which includes trust, next to instruments derived and adapted from TCE. These instruments are geared to problems that are specific to learning in interaction between firms. They also include additional roles for go-betweens

Exploring ‘People’ as the key element in enterprise architecture implementation: A Critical Realist Perspective

TOGAF (2009) describes the purpose of Enterprise Architecture (EA) is to optimise enterprisewide systems - the often-fragmented legacy of data processes (both manual and automated) - into an integrated environment that is responsive to change and supports the delivery of the business strategy (The Open Group Architecture Framework [TOGAF], 2009). However, for a number of reasons organisations still have difficulties establishing an effective EA (Raadt & Vliet, 2008; Gartner, 2009; and Janssen & Klievink, 2012, among others) and various reports suggest up to two thirds of implementations do not fulfil expectations (Roeleven, 2010). Being organisation wide with a strong governance element EA has significant social implications and social dependence, yet many implementations wrongly treat EA as solely a technical program. This thesis argues that the lack of focus on the ‘people’ element of EA could be the reason why many organisations still struggle with EA implementation. Recognising the importance of people in EA implementation requires acceptance of implementation as a social program, heavily influenced by the structural and cultural systems surrounding the architecture. In order to address the need for greater recognition of the role of people and the social aspects of EA implementation, this thesis adopts critical realism (CR) and its most recognised methodology, the morphogenetic approach (MA). Realism emphasises ontology and strongly argues that ontology, methodology and epistemology are closely linked – as Fleetwood (2005, p. 197) suggests, ontology matters: “The way we think the world is (ontology) influences: what we think can be known about it (epistemology); how we think it can be investigated (methodology and research techniques); the kinds of theories we think can be constructed about it; and the political and policy stances we are prepared to take”. In order to examine the social implications of technology implementation it makes sense to adopt a wellrecognized social theory like critical realism. This social realist approach proposes an analytical separation between structure, culture and agency (people) in order to examine their interactions over time. The MA suggests three important cycles – structural conditioning, social interaction and structural elaboration that provide a platform for examining possible change. Archer also importantly suggests that the emergent properties of collectivities and individuals differ. Such a model has clear value for examining the “people” acceptance of the new impositions and opportunities provided by the EA implementation. It acknowledges the sociocultural consequences of interactions between the structure and the culture to provide particular situational logics that direct, but do not determine the actions of people. The MA emphasises strongly the role of time in situation examination suggesting that structure and culture predate subsequent actions by involved agents. The thesis describes particular situational logics or mechanisms emanating from the interaction between structural and cultural systems that encourage particular behaviours in response to the EA program. These actions are then further examined in the sequence of MA cycles. Since mechanisms are only effective if people adopt them or not, another important element in this study is the part played by “reflexivity”. Reflexivity highlights the linkage between people concerns, projects and practices as people act in order to promote their concerns, and form projects to advance or to protect what they care about most. Reflexivity is an important mechanism for explaining how people’s ultimate concerns impact on their approach to the impositions of EA. An Australian university implementing EA (termed UX for anonymity) has been used as a case study in this research – this fortuitous timing allowed a careful and detailed examination of implementation over a 3-year period from initial rollout to ultimate acceptance. The study describes the challenging environment of university implementation where “academic freedom” is paramount and individual and group autonomies are threatened by EA – the study presents the important mechanisms and situational logics that direct people’s actions within the complex social context of a university. Semi-structured in-depth interviews were used as the primary method of data collection across UX stakeholders. A range of interviews were held throughout the study period with the university IT Governance Committee, the University Architecture Board, the CIO, and the Enterprise Business Group, as well as individual end-users such as teaching staff, researchers, students, and administrative staff of the faculties, schools and service centres. The MA provided a basic structure for unravelling the social complexity and helped guide the interview questions to identify the generative mechanisms hidden in the real domain, and to highlight the conditions that encourage individual and collective acceptance of EA practices. The reflexivity indicator developed by Archer –ICONI– is used throughout to explain how personal projects are formed and how they mediate the exercise of structural/cultural constraints and enablement within EA implementation. Passive participation in regular EA implementation meetings at UX was also important and useful to unearth possible perceived causal possibilities emanating from within the program itself and evident within the social context of implementation. Underpinned by a critical realist perspective, the thesis demonstrates that the MA is a powerful analytical tool to uncover the hidden mechanisms (the situational logics of structures and cultures) and social responses that enable success of EA implementation. The research examines the particular situational logics evident within the University under study and how these provide opportunities and constraints to the acceptance of EA over time. Equally important was reflexivity theory in attaining knowledge and understanding about what it is about people’s internal relations that makes EA implementation succeed. This thesis offers organisations a means to focus on the deeper issues of EA implementation programs by understanding the social complexity surrounding the architecture. The recognition of people as a key element in EA implementation provides a useful explanation of how the key stakeholders (and their power, influence and interests) may constrain and enable EA implementation. By including reflexivity as an important mechanism, organisations will be in a better position to understand the role of people and their interactions with preexisting structures and cultures operating over different time periods – reflexivity suggesting that “people” always have the possibility to do otherwise than expected, largely dependent on their personal history and their current personal projects and ultimate concerns

Deterrence and constrained enforcement: Alternative regimes to deal with bribery

This study embeds transaction cost analysis into a Law and Economics model to produce general recommendations on how to deter bribery. Governments may deter bribery either by high penalties and risks of detection, potentially supported by leniency given to those who report their infraction (deterrence regime). Another local optimum is achieved if the government amplifies the risk of opportunism, aggravating the difficulties of enforcing a bribe transaction. This involves a low probability of detection and allowing offenders to keep their ill-gotten gains. If bribes are paid upfront bribe taking will face only mild punishment (constrained enforcement regime). --Bribery,Corruption,Leniency,Enforcement,Deterrence,Opportunism,Reporting,Whistle-blowing,Nullity

Corporate governance, Islamic governance and earnings management in Oman: A new empirical insights from a behavioural theoretical framework

Purpose: This paper examines the impact of corporate (CG) and Islamic (IG) governance mechanisms on corporate earnings management (EM) behaviour in Oman. Design/Methodology/Approach: We employ one of the largest and extensive datasets to-date on CG, IG and EM in any developing country, consisting of a sample of 116 unique Omani listed corporations from 2001 to 2011 (i.e.,1,152 firm-year observations) and a broad CG index containing 72 CG provisions. We also employ a number of robust econometric models that sufficiently account for alternative CG/EM proxies and potential endogeneities. Findings: First, we find that, on average, better-governed corporations tend to engage significantly less in EM than their poorly-governed counterparts. Second, our evidence suggests that corporations that depict greater commitment towards incorporating Islamic religious beliefs and values into their operations through the establishment of an IG committee tend to engage significantly less in EM than their counterparts without such a committee. Finally and by contrast, we do not find any evidence that board size, audit firm size, the presence of a CG committee and board gender diversity have any significant relationship with the extent of EM. Originality: To the best of our knowledge, this is a first empirical attempt at examining the extent to which CG and IG structures may drive EM practices that explicitly seeks to draw new insights from a behavioural theoretical framework (i.e., behavioural theory of corporate boards and governance). Keywords: Corporate governance, Islamic governance, earnings management, behavioural theory, endogeneity, Oman. Paper type: Research pape

An Agent-Based Model for Secondary Use of Radio Spectrum

Wireless communications rely on access to radio spectrum. With a continuing proliferation of wireless applications and services, the spectrum resource becomes scarce. The measurement studies of spectrum usage, however, reveal that spectrum is being used sporadically in many geographical areas and times. In an attempt to promote efficiency of spectrum usage, the Federal Communications Commission has supported the use of market mechanism to allocate and assign radio spectrum. We focus on the secondary use of spectrum defined as a temporary access of existing licensed spectrum by a user who does not own a spectrum license. The secondary use of spectrum raises numerous technical, institutional, economic, and strategic issues that merit investigation. Central to the issues are the effects of transaction costs associated with the use of market mechanism and the uncertainties due to potential interference.The research objective is to identify the pre-conditions as to when and why the secondary use would emerge and in what form. We use transaction cost economics as the theoretical framework in this study. We propose a novel use of agent-based computational economics to model the development of the secondary use of spectrum. The agent-based model allows an integration of economic and technical considerations to the study of pre-conditions to the secondary use concept. The agent-based approach aims to observe the aggregate outcomes as a result of interactions among agents and understand the process that leads to the secondary use, which can then be used to create policy instruments in order to obtain the favorable outcomes of the spectrum management

Specific investments, cognitive resources, and specialized nature of research production in academic institutions: why shared governance matters for performance

New institutional economics (NIE) studies institutions and how they emerge, operate, and evolve. They also include organizational arrangements, intended as modes of governing economic transactions. Universities offer an exciting ground for testing the role of different institutional arrangements (governance forms) in coordinating (academic) transactions. In a context of contractual incompleteness where production is characterized by a highly specialized nature and requires the cooperation among co-essential figures, we argue that shared governancemodels (versus models withmore concentrated authority) foster idiosyncratic investments in human capital and promotes performance. From the evolutionary viewpoint, we explain why institutions based on shared governance have developed within universities. The normative question of how universities should be governed is a debated issue in the literature. Since the 1980s, the new publicmanagement paradigm provides a theoretical framework that suggests analyzing university like firms. It is based on the firm’s archetypical conception as top-down hierarchical organizations and as a descending sequence of principal–agent problems.We advance a different interpretation of the university–firm analogy leveraging on the NIE and its developments. To empirically analyze our hypothesis, we collected original data from Italian universities in 2015.We find that more shared decision-making processes are correlated with better research performance