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Academic Journal
Business Law

“Antitrust and Socially Responsible Collaboration: A Chilling Combination?”

Businesses are increasingly using collaboration to address concerns about sustainability, transparency, human rights, and labor conditions in global markets. Such collaborations include the development of certifications and standards, the sharing of information about factories and suppliers, and agreements to share facilities, like less than full delivery trucks. Yet at the same time, federal antitrust policies broadly prohibit agreements that restrain trade or commerce, creating the potential for innovative collaborations to result in legal prosecution. This article applies antitrust law to socially responsible and sustainable business collaboration in an effort to determine whether antitrust law chills potentially beneficial agreements. The article concludes that careful structuring of agreements can avoid many antitrust violations, but also finds that certain types of agreements, including those that could have the most impact on scarce resources and vulnerable commodity producers, are forbidden. Accordingly, this article argues that per se rules forbidding certain practices, including price fixing and resource sharing, be reconsidered in light of current economic and environmental conditions. It also questions certain assumptions about the benefits of competition in light of current environmental, human rights, and sustainability challenges.
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Academic Journal
Business Law

“Applying Stakeholder Theory to Utility Regulation”

Many in the energy sector are calling for a transformation of the traditional utility model. However, proposals for “Utility 2.0” typically maintain the bilateral, adversarial relationship between the utility and its regulator. This article posits that one of the key flaws in the U.S. utility regulatory system is this myopic decision-making process, which limits the potential for consideration of stakeholder interests and more comprehensive systems thinking. While expanding the interests considered by utilities and regulators will not solve other problems embedded in traditional utility regulation, a broadening of the consideration of stakeholder interests will almost certainly allow for more comprehensive long-term planning, greater attention to environmental and other stakeholder concerns, and the potential for transformational policy choices. The article therefore offers a new governance structure that would bring stakeholder interests to the regulatory table and allow utilities and regulators to include these interests in key decision-making contexts.
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Academic Journal
Finance

“Are Family Firms More Efficient? Revisiting the U-Shaped Curve of Firm Scale and Efficiency”

This study applies a stochastic frontier model to examine the relationship between firm size and efficiency using a novel approach. The first novelty is that this study examines large and small firms separately to allow for heterogeneity between firm group sizes in terms of measuring the size-efficiency relationship. The second is that we use a modified frontier model which explicitly includes a family firm variable when measuring firm efficiency. Empirical results reveal that firms are in fact heterogeneous, with small-and-medium-sized enterprises (SMEs) exhibiting a U-shaped scale efficiency curve, while large enterprises (LE) exhibit an efficiency curve which is positive and linear. Robust results also confirm that family firms are relatively more efficient than non-family firms. In addition, while controlling for family firms does not appear to change the firm’s size-efficiency dynamics, failure to control for family firms leads to a bias in characterizing the nature of the firm’s production returns to scale.
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Academic Journal
Management

“Are managers from Mars and academicians from Venus? Toward an understanding of the relationship between academic quality and practical relevance”

In this paper, we propose a positive relationship between the academic quality and practical relevance of management research. The basis for this is the idea that academicians and practitioners both value research that is interesting and justified - meaning research that challenges and extends existing beliefs and research that offers compelling evidence for its conclusions. We acknowledge that there are likely to be many cases where academicians and practitioners disagree on what is interesting and justified. We argue, however, that there are also likely to be cases where the judgments of the two groups converge. Results from a stratified, random sample of 120 publications are consistent with this argument - showing a positive correlation between an objective measure of an article's academic quality and expert panel ratings of its practical relevance. The analysis also shows positive associations between panel members' global assessment of relevance and ratings of an article's interestingness and justification. These results lend support to the hypothesized overlap, but leave room for considerable difference in the way practitioners and academicians evaluate management research. Copyright © 2004 John Wiley & Sons, Ltd.
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