Edinburgh Business School

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An examination of how organisations implementing strategy identify and align activities to achieve strategic objectives
(Heriot-Watt University, 2009-03) MacLennan, Andrew Fyfe; Henderson, Doctor Iain; Roberts, Professor Alex; Scott, Professor Alex
The Sarbanes-Oxley Act and German non-profit organizations : empirical research of organizational compliance
(Heriot-Watt University, 2009-08) Hasenpflug, Thomas Wilhelm; Wallace, Dr William
Since passage of the Sarbanes-Oxley Act (SOA) in 2002 there has been significant debate in the US relating to the voluntary or mandatory adherence of non-profit organizations (NPO) to its main provisions. Considering the importance of US corporate governance regulation for the developments in other countries the question about potential compliance of German NPO with such provisions arises. The subject of this research is the identification of an association of organizational characteristics of German non-profit organizations with the existence of Sarbanes-Oxley type corporate governance practices in the organizations. The study included 232 German non-profit organizations. A mixed method research methodology was applied consisting of a mail questionnaire, structured interviews and a document review. NPO decision makers gain from the practical application of the research findings mainly through their application as a benchmarking tool. Organization leaders can compare the readiness of their organization to that of similar entities and assess a necessity for improvement. The research results can also be used when working to further develop NPO corporate governance systems. Use of the research findings for regulators and lawmakers is in assessing the impact of increased corporate governance regulation on certain groups of NPO relating to their already existing readiness. Significant utility of the research results for NPO donors and sponsors was found to apply mainly in specific cases like professional sponsorship relationships. Practical application of the research results was also identified for accountants and consultants providing services to non-profit organizations as well as for sector umbrella organizations.
Implementation of operational environmental practices in the Ontario (Canada) wine industry : perceptions, constructs, intent.
(Heriot-Watt University, 2010-05) Dima, Carmen; Jankowicz, Dr Devi
Environmental sustainability is a topic of great interest in the Ontario (Canada) wine industry. Following the lead of several wine industries around the world, the Wine Council of Ontario launched a proactive plan for environmental sustainability that culminated with the release of the Environmental Charter for Winemaking Industry in 2007. The Charter outlines environmental best practices and establishes benchmarks for the grape and wine producers in Ontario. With some wineries pioneering the implementation of the recommended environmental practices and others taking a backseat and delaying it, this study’s purpose is to understand the intent to implement environmental practices as part of operational processes within the Ontario (Canada) wine industry by using the Theory of Planned Behaviour (TPB) as the framework of analysis. A constructivist approach using multiple case study design is used to explore the determinants of intention. Twenty wineries are interviewed and repertory grid employed as the chosen technique of data collection. Cluster, content and principal component analysis are conducted with the results indicating that TPB is an appropriate frame of analysis for implementation intent. Using a multidisciplinary approach, this study proposes an updated model for intention applicable to environmental practices. As a practical contribution, recommendations and a list of motivators of implementation intent is developed. Further research to test the proposed model is suggested to alleviate case studies limitations.
How do extrinsic performance incentives affect the alignment between frontline police performance and police strategy?
(Heriot-Watt University, 2010-08) Mitchelmore, Graham; Wallace, Doctor William
This research explored how extrinsic performance incentives (EPIs) affect the alignment of frontline police performance and police strategy using the Hong Kong Police Force as a case study. A formal research model was developed and used to explore the correlations between EPIs and organisational alignment, between EPIs and constructs of individual performance and between individual performance and organisational alignment. A combined methodology was adopted using questionnaires and semi-structured interviews to test the formal research theory. The findings indicate that there is a significant relationship between EPIs, when measured in terms or effort reward imbalance (ERI), and organisational alignment, but not generally between the realisation or expectation of an EPI and organisational alignment. There are no consistent patterns or relationships between EPIs and the constructs of individual performance. The effect of EPIs on the alignment of frontline police performance and police strategy is influenced by the officer’s career stage. The results and findings support the notion that stewardship theory fits the case organisation more closely than agency theory. This research contributes to the body of knowledge relating to the effects of EPIs on frontline performance and organisational alignment. Further research should apply the research model to other case settings.
Risk management models in two Norwegian institutions
(Heriot-Watt University, 2010-10) Tommerberg, Petter; Hare, Professor Paul
The research field of this research programme was integrated risk management. The research methodology was inspired by action research. The candidate collaborated with two Norwegian institutions in their initiative to design, implement and use an integrated causal risk management model (ICRMM) to improve risk management decision making. The research question adopted for the analysis section of the research programme was: • How can an integrated causal risk management model be designed, implemented and used to predict the likely effect of proposed actions on the risk profile? The research was conducted in three research cycles. As part of the first research cycle, a qualitative ICRMM was designed and used by using causal maps to represent the risk profile. As part of the second research cycle, a semi-quantitative ICRMM was designed and used by running Monte Carlo simulations to represent the risk profile. The research results of these two research cycles indicated that both the qualitative and the semiquantitative ICRMM can be used by organisations for predicting the likely effect of proposed actions on the risk profile. The third research cycle looked at the early phases of an initiative to implement an integrated risk management framework, where the ICRMM was one of the core components in the framework. The candidate assisted in organising the project and looked at how the most important stakeholders influenced the design and implementation of the ICRMM. The findings in the third research cycle indicated that using a project management methodology is effective in organising, authorising and managing an integrated risk management initiative in an organisation. By using project management methodologies, it is ensured that the various stakeholders in the organisation cooperate on the design and implementation of the framework, including the ICRMM. The use of project management methodologies thereby secures stakeholder ownership, which again increases the likelihood of future use of the ICRMM after the project is closed.
Evaluation of key value drivers as a decision support tool for strategy implementation in BHP Billiton Manganese
(Heriot-Watt University, 2010-11) Ralephata, Mpoti Abisaai; Kay, Professor Neil
This study evaluated the use of Key Value Drivers as a decision support tool for strategy implementation in BHP Billiton Manganese. The evaluation methods used in this study were subjective and were based on perception data collected from BHP Billiton Manganese Management. Three data collection methods were used, namely, survey questionnaire, archival search and interviews. The results obtained indicated that BHP Billiton Manganese managers perceive Key Value Drivers to be an effective decision support tool for strategy implementation, however the current Microsoft Excel model that has evolved over the past decade is perceived to be difficult to maintain with respect to data management and the support that is offered to users in the form of training material and on-line help is limited. The study indicated that Key Value Drivers as currently used in BHP Billiton Manganese, are an important integrator for a number of business processes such as Planning, Performance Management, Business Improvement and Management Information Systems. At a practical level, the study provided a method for identification and ranking of Key Value Drivers and a subjective evaluation process that can be used to get user input in design and implementation of management information systems. At a theoretical level, the study has shown that the relevance of Decision Support Systems and Value Based Management approaches still persists in contemporary managerial decision-making and that there is potential to use modern technologies such as Business Intelligence platforms to support these legacy systems. The empirical findings of this study were in general supportive of what could be expected based on the literature review covering Decision Support Systems, Key Value Drivers, Business Intelligence and Information Systems’ Evaluation Approaches. The Business Intelligence implementation project that is currently underway will benefit from the feedback generated by this study, particularly by ensuring that the two key shortcomings of the current KVD model are addressed. The study was a cross-sectional study limited to BHP Billiton Manganese. The study can be replicated in other Customer Sector Groups or repeated in BHP Billiton Manganese to create a longitudinal profile
The relationship between environmental uncertainty and business-level strategy in the telecommunications sector in Ghana
(Heriot-Watt University, 2011-01) Ani, Isaac Yaw; Wallace, Doctor William
The study of the relationship between environmental uncertainty and business-level strategy has received less attention in developing economies, especially in sub-Saharan Africa. The aim of this thesis is to examine perceived uncertainty in a developing country to find out how organisations strategically respond to this phenomenon. Using a purposive sample method, one of the six licensed telecommunications organisations in Ghana was selected for an in-depth case study. The qualitative research method was used for data collection and analysis. The results showed that the high level of perceived uncertainty in the telecommunications business environment in Ghana influenced the organisation to adopt informal planning, focused on short-term objectives in order to respond quickly to the turbulent and unpredictable environment. The study concluded that customer behaviour, economic instability and regulatory environment were the most influential external environmental factors that affected strategic decisions in the telecommunications sector in sub-Saharan Africa. In exploring the relationship between environmental uncertainty and business-level strategy the study found a link between environmental uncertainty and the selection of business-level strategy in an organisation in sub-Saharan Africa. The result of the study contributed to the debate in the literature that the strategic response to the perception of the environment by managers in sub-Saharan Africa operating in a different cultural backgrounds was not different from managers in the developed world.
Strategic planning in Irish quantity surveying practices
(Heriot-Watt University, 2011-01) Murphy, Roisin; Henderson, Doctor Iain
The role and usefulness of strategic planning has been well documented over several decades of strategic management research. Despite the significant body of existing knowledge in the field of strategic planning, there remains a paucity of investigation into the construction sector, specifically in Professional Service Firms (PSF‟s) operating within it. The aim of this research was to ascertain the type, scope and extent of strategic planning within Irish Quantity Surveying (QS) practices and to ascertain the extent to which such processes correspond to strategic planning literature. This research was an exploratory study, undertaken in two phases in line with mixed methods employed for undertaking the study. The first, qualitative, phase involved in-depth semi-structured interviews with the principals of eleven QS practices of varying size. The second, quantitative phase, involved a widespread survey of every QS practice registered with the Society of Chartered Surveyors (SCS) in Ireland, for which a response rate of over 40% was achieved. The findings discover that the type, scope and extent of strategic planning within Irish QS practices vary with practice size and ownership structure. Distinct groups of practices are evident based on a number of strategic planning process characteristics, including formality, approach, participation, flow and planning horizon. Despite the absence of a systematic or formal process within smaller QS practices, it is clear that principals are thinking and acting strategically. These practices broadly follow strategic planning processes advocated in the literature, are mostly unaware that this is the case; however confirm that a more systematic strategic planning process is beginning to emerge, particularly in light of the severity of the current economic and construction industry downturn in Ireland. The findings of the research provide an important contribution towards addressing the significant gap in existing knowledge in this regard. The conclusions drawn are specific to the QS profession, the research has been designed such that it has potential to be applied to other PSF‟s within and outside the construction industry.
The role of social, cultural and symbolic capital in generating national competitive position in Sierra Leone
(Heriot-Watt University, 2012-05) Jones, Omodele Robert Nicholas
National competitiveness is forged by the dominant network of Hofstede(an) values and Leung’s social expectations that configure “the set of institutions, policies and factors that determine the level of productivity of a country” (Porter & Schwab, 2008). The development of social infrastructure and political institutions (SIPI) enjoys the clearest link – in the literature - to the relative wealth and poverty of countries. Porter’s seminal 1990 work did not fully account for the contribution of a country’s history and culture to its national competitiveness. His competitiveness Diamond was separated from SIPI in the World Economic Forum’s 2008 Global Competitiveness Report (GCR). However, the GCR does not include a theory of the economic sociol-ogy of national competitiveness. Bourdieu’s sociology of competition is proposed as the foundation of an extended framework. The alternative Coleman/Granovetter/Putnam sociology of integration, popular in business schools and international development including the World Bank, is weaker; albeit with positive contributions that are best harnessed within a Bourdieurien framework. It omits many aspects of economic action, including a link to the macro-economic level, culture, and politics – all of which are integrated within Bourdieu’s economy of practices. Bourdieu’s competition is more consistent with the relevant economics than is Putnam: including, inter alia, the opportunism of William-son’s Contracting Man; Akerlof’s dishonest lemons; the multi-person prisoners’ di-lemmas of Dixit’s economic governance; Fehr & Tyran’s strategic complementarity of a few and Hardin’s Tragedy of the Commons. Bourdieu and the economists indi-cate the imperative to proactively manage the conflicts inherent in human choices re-garding scarce resources. Bourdieu’s Neo-Marxian politics should not prejudice the dispassionate use of the neutral contributions of his economic sociology. External national competitiveness demands internal national cooperation. This re-quires risk mitigation of the inevitable structural forces of Bourdieurien conflict, through the systemic development and inter-generational sustenance of requisite lev-els of Polanyi’s social interest and Putnam’s social trust. 3 - Preliminaries 1-combined-D36674-06-05_Jones_v19.docx Theoretical and applied frameworks are developed that utilise economic and game theory constructs as bridges for the Bourdieurien transport of social, cultural and symbolic capital into the arena of the economy. A rich, mixed methods, exploratory research on Sierra Leone is primarily driven by ethnographic action research to build productivity-enhancing structures of cooperation within the professional sector re-sponsible for a basic requirement of the GCR i.e. the strength of auditing and financial reporting. Taken with the action research, supplementary cross-sectional and contextual analysis suggests that Sierra Leone has the Societal Cynicism dimension, linked to weaker co-operation, lower performance and lower productivity, in Leung’s 2002 studies of so-cial axioms. Results of the action research included the private design and promotion of a new na-tional institution, recognised by the International Accounting Standards Board and the Sierra Leone Government, that seeks to deliver Hardin’s “mutual coercion, mutually agreed upon” within the auditing and accounting sector of Sierra Leone i.e. to build the foundations for a sectoral contribution to a resurgence of national competitiveness.
A study of the influential levers used by the Salvation Army in the United Kingdom to secure local centre outcomes in conurbations consistent with its mission and objectives
(Heriot-Watt University, 2012-05) Mitchinson, Norman John; Henderson, Doctor Iain
Churches face management challenges comparable with those in secular organizations, but with additional dimensions that include the primacy of religious purpose and an inherent concern that excessive managerial focus may inhibit this purpose. This research examined the influential levers – essentially, factors fully or partially within the control of leaders or managers at each level – used in the Salvation Army’s United Kingdom operations to help achieve local outcomes in accordance with its overall mission and objectives. Adopting a primarily phenomenological approach, the research used questionnaire surveys, semi-structured interviews and secondary statistical data to examine views and results at local, divisional and territorial levels, and to assess their implications. Primary data sources consisted of 23 local leaders and managers, 13 local volunteers or employees, 13 divisional or territorial officials, and 4 divisional commanders. The research confirmed the validity and relevance of the concept and (with minor qualifications) its posited components. Leadership was of particular importance, as was an internal spiritual climate. The research is expected to be of direct value to the Salvation Army in the United Kingdom, and potentially to the Salvation Army elsewhere. The concept of influential levers may also have indicative value to churches and other charities – particularly those with locally devolved activities – and to organizations generally.
Examining leadership competencies in internationalised Iranian car and vehicle companies
(Heriot-Watt University, 2012-06) Haghighi, Davood Mesgarian
Internal reference price formation in support of UK and US grocery retail price decision-making
(Heriot-Watt University, 2013-03) Watson, Iain; Fernie, Professor John
UK and US grocery retailers operate with narrow profit margins; the shelf price of each product sold has a direct affect on these profits. Despite the importance of pricing, grocers adopt sub-optimal risk mitigation tactics rather than profit maximization. Part of a grocer’s perceived pricing risk is their lack of any understanding of customer product price expectation. The academic concept of Internal Reference Price (IRP) represents that price expectation but, despite a large body of research, IRP does not appear to be used in UK or US grocery pricing. This is due in part to academics’ lack of understanding of pricing practitioners’ actual needs and the context they work within, and has led to commercially inappropriate IRP model formulations. This exploratory study corrects this lack of understanding and provides both an integrated theory of pricing behaviour and its context, along with an applied IRP model that has the potential to improve UK and US grocer price decision-making. The models were developed using Classical Grounded Theory based on information from in-depth semi-structured interviews held with 20 UK and US grocery pricing practitioners. The research represents a significant contribution to both the academic and commercial body of knowledge. It does so, firstly, through the provision of an explanatory and predictive grounded theory of grocery pricing behaviour, and secondly through the development of an applied conceptual grounded model of IRP, both of which have been unseen to date.
How Canadian homes builders construe their decision to participate in a voluntary environmental program
(Heriot-Watt University, 2013-03) Quirk, Dustin; Jankowicz, Professor Devi
This research is a study of sensemaking using Personal Construct Theory to examine the constructs that Canadian home builders use when they think about their decision to participate in a voluntary environmental program (Built Green Canada). The primary data collection method is the Repertory Grid Technique. Findings from 32 interviews revealed a number of themes that decision makers used to construe and make sense of their decision to participate in the program. The most prevalent views related to seeing the decision as a function of being a leader or innovator in the industry and using the program as a marketing and sales tool. Furthermore, themes that were seen as important related to legitimacy/authenticity/integrity and environmental impact. This study also assessed which drivers/pressures were important to decision makers in making the decision to join the program. Important drivers/pressures included handling competition, appealing to customers, acquiring technical knowledge, obtaining publicity, building corporate culture/identity, and obtaining third party certifications. Of particular significance was an emergent finding related to the level of involvement or participation in the program. This emergent finding of active and passive program participants was also analyzed and discussed leading to a model of the decision to participate in a voluntary environmental program. This applied research is significant as it assists in refining the emergent field of environmental decision making and planning. The results are also useful for industry, voluntary environmental program organizations, and government policy makers to provide them with a better understanding of participant motivations leading to program improvements and better marketing of these programs.
Investigating relationships between corporate social responsibility orientation and employer attractiveness in Hong Kong's graduate labour market
(Heriot-Watt University, 2013-03) Kan, Hing Ki; Beech, Professor Nic
Achieving a good organization-person fit is vital to organizational survival and can also create a win-win phenomenon for both employers and job applicants. One of the factors of this ‘fit’ can hinge on how job applicants perceive whether their prospective employers have corporate social responsibilities (‘CSR’) that match their own corporate social responsibility orientation (‘CSRO’) and CSRO can be one of the employer-attractiveness influencing factors. However, the construct and definition of CSR and CSRO have been elusive, subject to different social-cultural environments, time frame and value orientations of people. This study qualitatively investigates the relationships, if any, between the Corporate Social Responsibility Orientation of undergraduate students in their senior years (full-time and part-time students) and Employer Attractiveness (‘EA’) in Hong Kong’s graduate labour market. It tries to find out whether students’ CSRO would influence their employment decisions towards organizations which have exhibited various extents and types of socially responsible behaviors. There were 97 participants spread among 15 focus-groups later classified into 6 categories in various study majors and study modes. They were all undergraduate students in their senior year of study. Findings from the study provide evidence that students generally aspired to work for a good CSR organization, and this was a telling factor in their employment-decision. However, students had a ‘CSR’ connotation differing from those established in previous research. Most of the students in this research thought that for an organization to be considered socially responsible and attractive in terms of their employment-decisions, the organization is normally expected to take up some responsibilities associated with a responsible-employer (‘RER’). However, it was found that their actual employment decisions were at variance from their espoused ethical position prior to seeking employment. Alternative interpretations, based on sensemaking, of the qualitative data will be explored and insights for students, educators and companies will be derived. The outcomes of the research could be informative for both human resources management theory and practice in organisations where there is a debate over whether, and how, they should pursue a CSR agenda. Furthermore, this research adds to literature which seeks to link CSR, CSRO, employment recruitment and employer attractiveness.
Can alliance networks work? : examining the evolution & impacts of alliance portfolios in healthcare
(Heriot-Watt University, 2013-04) Niblett, Bradley Donald; MacIntosh, Doctor Robert
As the global competitive environment becomes increasingly complex and volatile, organisations look to networks to complement skills, resources, agility and capabilities. This research program aims to achieve a better understanding in the role of alliance portfolios in the development of dynamic capabilities of innovation and commercialisation. Through a case study approach examining the network of The Michener Institute for Applied Health Sciences, this research program uses a grounded-theory methodology to construct a conceptual framework, which is generalised to other healthcare firms’, alliance portfolios and potentially to other industries. The central assertion of this research program is that within complex and high-velocity environments, the character of a firms’ alliance portfolio facilitates the extent to which dynamic capabilities are created that result in new market opportunities, ultimately leading to competitive advantage. The results suggest that alliance portfolios develop dynamic capabilities (specifically, innovation and commercialisation) when comprised of individual alliance relationships that establish variables of trust; strategic fit of resources and vision; secure partners that operate within the same industrial sphere and/or core business as the hub-firm; and a personal commitment to the alliance. Further, those individual alliance relationships that experience variables including lofty expectations; fuzzy decision making processes; lack/loss of strategic focus; differences in corporate cultures; and poor transference/application of dynamic capabilities across different industries were unsuccessful in the development of dynamic capabilities. Initial results also suggest that the cumulative experience of the dedicated alliance function (Kale, Dyer, and Singh; 2002), and the resulting dynamic capabilities established therein, have the ability to transition (Arndt, 2008) to the alliance portfolio (Wassmer, 2010). The alliance portfolio not only acts as an egocentric catchment of an organisation’s respective alliances (Baum, 2000), but can also acts as a cumulative set of dynamic capabilities, resources, and opportunities.
Enterprise-wide risk management (EWRM) : identification, analysis and management of implementation barriers within an African telecommunications enterprise
(Heriot-Watt University, 2013-04) Uwizeye, Patrick Bugabo; Paton, Professor Robert
This research study investigated the implementation barriers associated with the introduction of EWRM within an African telecommunications enterprise. Six research questions were developed from the literature which provided a focus for data collection. Based on MTN Group, a single case study method was adopted. Three sub-cases of MTN companies formed the main data sources. In-depth interviews were conducted with senior and middle level management of each sub-case. The research design was based on the established procedures and quality controls associated with qualitative case study method within a critical realism paradigm. Analysis was based primarily on in-case and intra-case analyzes and pattern matching for the purpose of analytic generalization about the research questions. The study concluded that to overcome the implementation barriers people need a platform where they can share knowledge and be rewarded for knowledge transfer, additionally key performance indicators (KPI’s) linked to knowledge transfer and sharing must also be created and utilized. Ultimately, this study has contributed to EWRM implementation strategies for MTN and the creation of associated KPI metrics; both the researcher and MTN consider the research and its outcomes to have been advantageous. More generally the research has also contributed to the wider risk management debate, shedding light on barriers to implementation and suggesting holistic strategies that should embed EWRM more effectively and efficiently.
An exploratory study of leadership behaviour and strategic change in small, high-performing, U.S. technology firms
(Heriot-Watt University, 2013-04) Bussey, Tiffany Rogers; MacLean, Doctor Donald
This study is an explorative investigation of the role of leadership behaviour in process reconfiguration as a strategic change outcome. Motivated by 25 years of experience observing over 200 small firms implementing process innovation initiatives, the researcher noticed that some firms were more successful than others and speculated that leadership is a key factor in sustaining strategic process change. Strangely, the strategy and leadership literature do not inform each other. Although the role of management in strategy is now being addressed through the subset of the dynamic managerial capabilities literature, the role of leadership is still largely being ignored. While the dynamic managerial capabilities framework appears very promising, it only addresses two of the dynamic capabilities constructs (evolutionary and technical fitness) and ignores the third construct: entrepreneurial fitness, a concept Teece (2009) introduced but left unexplained. Interestingly, entrepreneurial fitness was vaguely linked to leadership but was left unexplained and has largely been ignored in the strategy literature. The leadership literature, particularly the transformational leadership stream, seems to indicate that leadership is an enabler, if not a source of, competitive advantage. This mutuality of the leadership and strategy literature appears to be different sides of the same coin that remain uninterested in each other. As a result, this study examined the interface of these two literatures and investigates the phenomenon of leadership and strategic change. An inductive multiple case study approach utilizing primarily semi-structure interviews and a leadership style questionnaire was conducted. This study discovers dynamic leadership capabilities of sensing, committing, communicating, and coordinating, which were linked to leadership styles. Transactional leaders express dynamic leadership capabilities sequentially, while transformational leaders express them all together as needed. The study found that, in the presence of these dynamic leadership capabilities, change coheres and builds, thus sustaining process reconfiguration. Likewise, in the absence of dynamic leadership capabilities, change is dissipative. The research findings suggest and offer for further development that entrepreneurial fitness is heavily dependent on transformational leadership style and patterned learning enabled by the dynamic leadership capabilities of sensing, committing, communicating and coordinating.
Investment risk preferences of decision makers acting on behalf of German charitable trusts
(Heriot-Watt University, 2013-05) Lendorf, Frank; Berry, Professor Anthony
This research programme investigates the subjective utility of monetary outcomes and applies the existing knowledge base regarding the quantification and description of risk preferences to German charitable trusts. Results are discussed on the basis of Expected Utility Theory (EUT) and Prospect Theory (PT) with a focus on the “Fourfold Pattern (4FP)” of PT. The description of risk preferences of trusts enables investors, advisors and portfolio managers to optimise their investment strategies for this specific target group disposing of an estimated asset base of about € 100bn. The subjects of this study, German charitable trusts, are restricted in their investment decisions by a given legal framework and therefore prone to deviate in their preferences from the subjects that have been examined in prior academic studies. The thesis aims at filling this research gap by applying the knowledge base of decision theory to German charitable trusts using an original set of representative data which was generated as part of this study. Firstly, regarding the general investment risk preferences of trusts, the study finds risk aversion predominating in the domain of gains and observes loss aversion, both analogous to prior research on private individuals. The PT pattern of risk-seeking behaviour for losses can only partly be asserted. In contrast to PT, no evidence is found for the subjective overweighting of small probabilities. Secondly, the study identifies and discusses characteristics of trusts which are associated with risk preferences: Equity investments, expected external growth of assets, age of the investment decision makers, type of donor and involvement of the donor in investment decisions.As a contribution to decision theory, the author proposes a utility function representing the preferences of trusts based on decision theoretical backgrounds. As a contribution to practical investment implications, the author proposes to redefine the question of “safe investments” and to focus on distributable yields generated by a higher equity portion in trust portfolios.
Exploring strategic planning of family firms in Saudi Arabia
(Heriot-Watt University, 2013-05) Alwafi, Abdulrazzak R.; Scott, Professor Alex; Henderson, Doctor Iain
Researchers have called for the studying of strategic planning of family firms, especially in countries such as Saudi Arabia to cater for cultural differences. So far, it is not known how family firms formulate or practice their strategic planning. This research aimed to investigate and evaluate the extent and nature of the strategic planning processes in a sample of family firms in Saudi Arabia. Data from six family firms was collected by semi-structured in-depth interviews using open ended questions. The study employed convenience sampling. A total of 16 interviews were made to collect the data and confirm understanding. Secondary data from company documentation and websites were also utilized. Collected data was analysed (qualitatively) to produce observations on family firms‘ strategic planning process. A pilot study was used to confirm suitability of the methodology and data analysis. The idea for this research came from an actual need of the researcher and many of his friends. The study has many practical implications on family firms both locally and internationally. Therefore, it is hoped that family firms can increase their chances of success and continuation to the following generations. The study found that the businesses tended not to have systematic processes and that analysis was typically unsophisticated and often ignored, while implementation in the sense of resource allocation, setting of sales targets, monitoring of performance, and providing incentives was often approached more systematically. Some interesting strategic patterns across firms were identified such as "Sales is king", "Let‘s do it" and "Just grow". Despite geographical and sample limitations, this study has opened many avenues for further research into the strategy process in family business, both in Saudi Arabia and in other countries and cultures. Therefore, this study contributed by illuminating an under researched part of the world and by addressing a practical problem and knowledge gap.
Use of progression planning tools in developing collaborative main contractor-subcontractor relationships in Norway
(Heriot-Watt University, 2013-08) Skinnarland, Sol; Wallace, Doctor William
The research programme was designed to investigate the relationship between uses of progression planning tools and main contractor subcontractor collaborative relationships. The research was carried out within two Norwegian construction companies where collaborative progression planning tools and methodologies based on the Last Planner system of production control was used. The scope of the research was to test whether such uses could positively affect the collaborative relationships between the contractors and project participants on the construction site. Collaborative relationships in this research referred to a working climate of joint efforts to bring construction projects forward. Literature claimed that adversarial relationships caused inferior productivity levels in the industry. Contractor relationships were assumed to influence how production processes were progressing. Thus developing collaborative relationships was assumed vital in order to improve productivity levels. The DBA research was based on case-studies (observation and interviews) and an quantitative survey in the two construction companies. Current research concluded that uses of progression planning tools may influence collaborative contractor relationships provided an equal attention is paid to structural and systematic approaches to collaborative planning, as to the social and relational dimensions, such as stimulating and motivating interaction and communication among project participants. The thesis provides detailed descriptions of the process elements. The study provides in depth insight into collaborative development processes in project based production settings. The results may be valuable for researchers who aim to further advance knowledge of the importance of participant relationships in the field of construction management. The results may also be of value to construction managers who wish to emphasise the collaborative aspects of conducting projects.