Opportunism

About: Opportunism is a research topic. Over the lifetime, 2030 publications have been published within this topic receiving 97170 citations. The topic is also known as: opportunist.

Innovation and Corporate Governance: The Impact of Sarbanes-Oxley

Abstract: This Article shows that innovation is a process that has specific characteristics, that these characteristics give rise to an important corporate governance tradeoff, and that complying with the Sarbanes-Oxley Act (SOX) likely impacts this tradeoff to the detriment of innovation.Innovation is a process that results in new goods, services, methods of production, and forms of business organization. Innovation can vastly improve the welfare of consumers, investors, firms, and the economy. Decentralization and an emphasis on strategic internal control are governance structures that facilitate innovation. The ultimate purpose of these structures is to induce managers to overcome myopia and undertake the types of long-term, risky, dynamic, and knowledge-intensive activities that result in innovation.Innovation-facilitating structures and activities may, however, also increase the ability of managers to benefit themselves at the expense of investors. Value-maximizing companies must therefore negotiate the tradeoffs between reducing myopia and preventing managerial opportunism. SOX requires all public companies to increase objective monitoring of managers by outsiders to reduce opportunism. However, a substantial portion of innovative companies likely maximize value by placing a greater emphasis on proximate monitoring by insiders than SOX permits. The law thus upsets the optimal governance balance in such companies and likely undermines their ability to provide the most value to investors and consumers.

Managing Relational Exchanges

Abstract: The authors propose an analytic model that deals with both behavioral considerations between exchange partners and the determination of relational marketing efforts over time. On the basis of the behavioral marketing literature, they consider three main factors that drive the levels of relational commitments between two exchange partners: the trust/distrust component, the opportunism component, and the relational marketing effort of the seller. Incorporating these factors in a well-known model used in appliedmathematics for “love dynamics,” the authors claim that the issue of managing relational exchanges is an optimal control problem. Their analysis shows that the seller’s optimal policy for determining relational marketing effort over time is either time-invariant or time-variant, depending on whether or not the exchange partners are conservative and the structural and contextual environment of the relationship remains unchanged over time.

Forging a New Democratic Party: The Politics of the Third Way From Clinton to Obama

Abstract: This dissertation analyzes the evolution of the American Democratic Party’s ideological orientation from 1985 to 2014. The central problem is to develop an understanding of how shifts in political-economic context and factional agency combine to produce alterations in the predominant ideology of a U.S. political party. The primary question posed is how the centrist perspective known as the ‘third way’ replaced the left-liberalism of the New Deal and Great Society eras as the guiding public philosophy of the Democratic Party. Whereas many scholars propose that the modern third way revisionism of center-left parties is explained primarily as electoral opportunism or as an adoption of the political logic of the New Right, this study focuses on how changes in political economy (particularly the transition from Keynesianism to neoliberalism) prompted the elaboration of an alternative ideological framework that sought to adapt to new times. In the U.S. case, the primary agent of this process of ideological reorientation was the New Democrat faction, most well-known for its connection to President Bill Clinton. Combining qualitative document analysis and focused interviews with personnel from the think-tanks and policy institutes of the New Democrat faction and its competitors, the dissertation finds that the initiation and maintenance of reorientation is dependent on a faction’s success in elaborating and continually ‘decontesting’ an alternative framework that de-legitimatizes a party’s pre-existing ideological commitments. Adapting Michael Freeden’s approach to the study of ideologies, a conceptual morphology, or map, of third way politics is presented that centers on the particular meanings of opportunity, responsibility, and community elaborated by the New Democrats. These ‘decontested’ concepts signified a commitment to equality of opportunity over egalitarian outcomes, a vision of the welfare state centered on obligation rather than entitlement, and a devotion to communitarian rather than class or identity politics. By analyzing the process of continuous decontestation engaged in by this faction, the dissertation argues that the third way not only constitutes a distinct ideological system, but that it has been the predominant policymaking outlook of the Democratic Party for nearly a quarter century – stretching from Clinton to Obama and possibly beyond.

Contracts as Organizations

Abstract: Empirical studies of contracts have become more common over the past decade, but the range of questions addressed by these studies is narrow, inspired primarily by economic theories that focus on the role of contracts in mitigating ex post opportunism. We contend that these economic theories do not adequately explain many commonly observed features of contracts, and we offer four organizational theories to supplement-and in some instances, perhaps, challenge-the dominant economic accounts. The purpose of this Article is threefold: first, to describe how theoretical perspectives on contracting have motivated empirical work on contracts; second, to highlight the dominant role of economic theories in framing empirical work on contracts; and third, to enrich the empirical study of contracts through application of four organizational theories: resource theory, learning theory, identity theory, and institutional theory. Outside economics literature, empirical studies of contracts are rare. Even management scholars and sociologists who generate organizational theories largely ignore contracts. Nevertheless, we assert that these organizational theories provide new lenses through which to view contracts and help us understand their multiple purposes.

Opportunism and Diversification: Entrepreneurship and Livelihood Strategies in Uncertain Times

Abstract: As economic crisis deepens across Europe people are forced to find innovative strategies to accommodate circumstances of chronic uncertainty. Even with a second multi-billion euro bailout package secured for Greece, the prospects of a sustainable recovery in the near future look bleak. However, crisis has also created dynamic spaces for entrepreneurial opportunism and diversification resulting in social mobility, relocation, shifts in livelihood strategy and a burgeoning informal economy. Although economic systems are currently undergoing radical reassessment, social demands such as competitive consumption remain. Opportunities for investment in renewable energy programmes, especially photovoltaics, are also pervasive. By considering cases of business opportunism and livelihood diversification in relation to Max Weber's concept of wertrational and notions of uncertainty, this article brings new perspectives to strategies of negotiating the worst economic crisis in living memory.