HEC Montréal

About: HEC Montréal is a education organization based out in Montreal, Quebec, Canada. It is known for research contribution in the topics: Context (language use) & Vehicle routing problem. The organization has 1221 authors who have published 5708 publications receiving 196862 citations. The organization is also known as: Ecole des Hautes Etudes Commerciales de Montreal & HEC Montreal.

Market Deregulation and Optimal Monetary Policy in a Monetary Union

Abstract: The wave of crises that began in 2008 reheated the debate on market deregulation as a tool to improve economic performance This paper addresses the consequences of increased flexibility in goods and labor markets for the conduct of monetary policy in a monetary union We model a two-country monetary union with endogenous product creation, labor market frictions, and price and wage rigidities Regulation affects producer entry costs, employment protection, and unemployment benefits We first characterize optimal monetary policy when regulation is high in both countries and show that the Ramsey allocation requires significant departures from price stability both in the long run and over the business cycle Welfare gains from the Ramsey-optimal policy are sizable Second, we show that the adjustment to market reform requires expansionary policy to reduce transition costs Third, deregulation reduces static and dynamic inefficiencies, making price stability more desirable International synchronization of reforms can eliminate policy tradeoffs generated by asymmetric deregulation

Cross-National Governance Research: A Systematic Review and Assessment

Abstract: Manuscript Type Review Research Question/Issue Using a systematic literature review approach, we survey 192 cross-national comparative studies published in 23 scholarly journals in the fields of accounting, economics, finance, and management for the period 2003 to 2014. The purpose is to synthesize and appraise the extant empirical research on the interplay between country- and firm-level governance mechanisms and the effects on firm outcomes. Particular focus is placed on studies that examine firm economic performance. Research Findings/Results We identify and distinguish between two groups of cross-national governance studies. The first type compares macro, country-level outcomes and the second compares three different firm-level outcomes: economic performance, governance mechanisms, and strategic decisions. We compare the theoretical frameworks used and further analyze the country-level factors and firm-level governance attributes that have been combined to investigate their interplay and the effects on firm outcomes. We find substantial variation in the use and measurement of country-level factors as well as a variety of causal forms used to explain the combined effects of country- and firm-level governance mechanisms. This wide variability precludes comparison, and consequently prevents identifying consistent patterns of influence between country-level governance factors and firm-level governance mechanisms and/or performance. We identify research gaps and provide fruitful directions for future research on this topic. Theoretical Implications The cross-national governance research has been guided mainly by an economic perspective focusing on international differences in the effectiveness of specific governance mechanisms. Few comparative studies have integrated an institutional perspective or examined the external forces that drive the diffusion and use of specific governance mechanisms. Such integrative framework would improve the understanding of cross-national differences in the salient dimensions of country-level governance factors and how they mediate the effectiveness of firm-level governance mechanisms. Practitioner Implications Our results reveal that firm- and country-level governance mechanisms have been interacted and combined, either to address various agency problems or to compensate for a weak national environment. This calls for regulators and investors to consider national governance factors when assessing firm-level governance practices.

Strategic Alignment and Misalignment of Knowledge Management Systems: A Social Representation Perspective

Abstract: To derive more business value from existing organizational knowledge, many organizations seek to rely on strategically aligned knowledge management systems (KMS). However, as documented in prior studies, they often underestimate the challenges about social interactions and users' perceptions in response to new information systems. Based on an interpretive case study, this paper examines the implementation of a KMS to show how social representations of four groups of users resulted in the misalignment of the KMS with the organizational strategy. The social representation lens allows us to interpret strategic alignment in terms of dynamic processes of anchoring and objectification that aid individuals and groups to make sense of KMS initiatives. The groups studied developed different cognitive views of the KMS that ultimately led to a strategic misalignment. The key implication is that social interactions within and among groups shape KMS alignment with organizational strategy, thus elucidating the nature o...