Argumentation Rationality in the German and Korean Automotive Industry

To be successful and to gain support by their reference groups, managers back their decisions by arguments. These managerial argumentations mirror the thoroughness of the decision preparation. In short, they reveal the decisions argumentation rationality. Obviously, the argumentation rationality or the thoroughness of the decision preparation, respectively, can vary. Among other things, cultural and institutional factors will impact the level of argumentation rationality in management decisions. Studying Germany and Korea, this paper identifies differences between the two countries with regard to certain aspects of national culture and corporate governance which can be related to decision preparation behavior. Based on this research, hypotheses on the argumentation rationality differences between German and Korean management decisions are developed and tested using data drawn from publicly available accounts. Altogether 356 accounts were selected which report on three types of change actions in the German and Korean automotive industry and were published between 1990 and 1997. Intra- and inter-country analyses were carried out for revealing typical patterns and country-specific differences of argumentation rationality. Inter alia, it turns out that differences between the decision preparation of German and Korean managers cannot be captured in a simple black-white manner. Rather results of comparing argumentation rationality in the two countries vary with the aspects of decision preparation considered and indicate the usefulness of a differentiated perspective on the studied phenomen

Configurations of capacity for change in entrepreneurial threshold firms: imprinting and strategic choice perspectives

Imprinting theory suggests that founding conditions are 'stamped' on organizations, and these imprinted routines often resist change. In contrast, strategic choice theory suggests that the firm can overcome organizational inertia and deliberately choose its future. Both theories offer dramatically different explanations behind an organization's capacity for change. IPO firms provide a unique context for exploring how imprinting forces interact with strategic choice factors to address organizational capacity for change as a firm moves from private to public firm status. Juxtaposing imprinting and strategic choice perspectives, we employ fuzzy set to examine the multi-level determinants of organizational capacity for change. Our cross-national data reveals three effective configurations of organizational capacity for change within IPOs, and two ineffective configurations. Our results suggest that the antecedents of organizational capacity for change in entrepreneurial threshold firms are nonlinear, interdependent, and equifinal

Does board independence influence financial performance in IPO firms? The moderating role of the national business system

Prior evidence suggests that board independence may enhance financial performance, but this relationship has been tested almost exclusively for Anglo-American countries. To explore the boundary conditions of this prominent governance mechanism, we examine the impact of the formal and information institutions of 18 national business systems on the board independence-financial performance relationship. Our results show that while the direct effect of independence is weak, national-level institutions significantly moderate the independence-performance relationship. Our findings suggest that the efficacy of board structures is likely to be contingent on the specific national context, but the type of legal system is insignificant

Entstehung und Befolgung von sozialen Normen: eine theorieorientierte Uebersicht

Summary in EnglishAvailable from Bibliothek des Instituts fuer Weltwirtschaft, ZBW, D-21400 Kiel W 66 (1997.12) / FIZ - Fachinformationszzentrum Karlsruhe / TIB - Technische InformationsbibliothekSIGLEDEGerman

Board involvement in the strategic decision making process: a comprehensive review

The separation between ownership and control creates many challenges for the modern-day firm, and the board's role in the strategy formation process is arguably the seminal governance challenge confronting boards today. Board Involvement in the Strategic Decision Making Process: A Comprehensive Review examines this seminal challenge

Grundlagen der Organisation

Eine betriebswirtschaftliche Theorie der Organisationsgestaltung hat Strukturmodelle zu entwickeln, die als Grundlage für Organisationsentscheidungen des Managements geeignet sind. Es geht dabei um die Bewältigung der elementaren Anforderungen, die bei interpersoneller Arbeitsteilung zwangsläufig durch die Trennung zusammenhängender Aufgabenkomplexe und die Einbeziehung einer Mehrzahl von Personen mit jeweils individuellen Zielen entstehen. Bei der Verfolgung dieses Anliegens orientiert sich auch die Neuauflage der "Grundlagen der Organisation" unverändert am bewährten entscheidungstheoretischen Konzept der Organisationsgestaltung, das einen fundierten anwendungsbezogen Zugang zum Verständnis und zur Lösung komplexer Organisationsprobleme eröffnet

The German Corporate Governance Code: general acceptance and neuralgic norms – a second look

Based on a survey of all the companies listed at the Frankfurt Stock Exchange, this paper analyses the extent of compliance with the German Corporate Governance Code. The investigation includes the recommendations as well as the suggestions of the Code. Overall, findings indicate a high level of Code conformity. Furthermore, the Code continues to contribute to the changes of the governance modalities of German firms. Nonetheless, Code standards remain which gain comparably less acceptance. We identify those norms, which are still rejected by the majority of the surveyed corporations and discuss why these compliance rates are currently low and whether they can be expected to increase in the future.compliance; corporate governance; German Corporate Governance Code; statement of conformity; public policy; Germany.