The so-called Flyvbjerg database is the largest source of data on the performance of major investment projects. It has generated influential analyses of the magnitude of and reasons for cost overruns and demand shortfalls in major projects. Those analyses have demonstrated, among other things, the systematic presence of large forecast errors in both construction costs and in user demand in the first year of operation. They have also linked those results to the social welfare consequences of the underlying projects, suggesting that the large and systematic forecast errors are indicative of welfare destruction. Given how influential those analyses have been, this paper examines the link between the database, empirical analyses thereof, and social benefit–cost analysis (BCA). To that end, both the measurement of variables in the database and the estimation of forecast errors are contrasted against BCA. The conditions for the estimated forecast errors to approximate those obtained from a BCA are spelled out, and the scope for drawing welfare conclusions based on those estimates is discussed. Furthermore, numerical simulations are presented to explore whether the estimated forecast errors do indeed imply likely welfare destruction. The simulations suggest that as large as the forecast errors are, welfare destruction is no foregone conclusion.

This study investigates the influence of perceived organizational support (POS) on employees’ intentions to recommend their employer or leave the organization. Based on social exchange theory, it explores how POS affects employee well-being and shapes behaviors such as loyalty and advocacy. An online survey gathered data from 604 French employees across various sectors, analyzing variables like POS, positive and negative well-being, and intentions to leave or recommend the employer. Structural equation modeling was used to examine the relationships among these variables and to test the mediating role of well-being. Results show that POS positively influences employee well-being. High POS is associated with improved positive well-being, which decreases the intention to leave and increases the intention to recommend. Similarly, reduced negative well-being linked to high POS lowers the desire to leave and lessens negative effects on recommendation intentions. The study confirms the mediating role of well-being between POS and employee intentions. The study provides new insights into the impact of POS on employee intentions by highlighting the pathways of positive and negative well-being. For human resource practices, strengthening POS is essential to boost employee retention and encourage positive behaviors, thereby enhancing the organization’s reputation and attractiveness.

This study explores what kinds of moral potency profiles can be identified among three different samples: Top sports, Leaders, and Followers. Based on the social norm theory, we examine whether and how the experienced strength of ethical organizational culture is associated with the probability to be identified into different moral potency profiles. Based on ratings of 188 top sport representatives, 237 leaders and their 202 followers, a person-centered approach was used to identify three moral potency profiles: morally hesitant, moderate moral potency, and morally confident. A fourth profile was identified based on the followers’ evaluations of their leaders: morally void. Low evaluations of ethical culture increased the likelihood of being classified into the morally hesitant profile. As the followers were somewhat more critical in evaluating their leaders’ moral potency than the leaders themselves, our findings highlight the value of including other-rated indicators when examining moral actions within organizations.

Leader–member exchange (LMX), a well-researched leadership theory that focuses on the dyadic relationships between leaders and subordinates, is associated with positive subordinates’ outcomes. However, the contexts outside the LMX dyadic relationship might influence those favorable outcomes. In this study, we investigate the cross-level moderating effect of leader’s feelings of violation, as a contextual boundary, on LMX outcomes. Based on social exchange theory, crossover model, and the psychological contract literature, we discuss how the relationship between a subordinate’s perceived LMX and favorable subordinate attitudes and behaviors, such as performance, task-focused citizenship behaviors, and organizational commitment, is reduced when the leader experiences feelings of violation toward the organization. Using a three-wave time-lagged multilevel design with a sample of 226 subordinates and 39 leaders, we find that leader’s feelings of violation mitigate the positive association of perceived LMX on citizenship behavior and commitment but have no effect on performance. Research and practical implications are discussed.

In 2023, the U.S. Office of Management and Budget (OMB) issued guidance documents that specified new procedures for assessing prospective government regulations (Circular A-4) and economic policies more generally (Circular A-94). These revisions to long-standing guidance were not minor updates but shifted policy analyses from an efficiency-oriented perspective to a redistributive approach. OMB broadened the guidelines for reporting distributional consequences of policies and also specified how policy impacts on different income groups should be weighted. The weights assume that the social welfare function is governed by the sum of identical individual utility functions, each of which exhibits a substantial rate of diminishing marginal utility of income. The resulting weights provide a premium for households below the median-income level and a considerable penalty for those at higher-income levels. Application of the weights to property losses creates potentially substantial inefficiencies. If based on current empirical evidence on the income elasticity of the value of a statistical life rather than assuming that there is a complete offset of the weights, application of the weights to mortality risk valuation would generate inequities in protection.

Previous literature generally acknowledged that leader inclusiveness has positive effects on employee voice. However, emerging research and practice commentary highlight the importance of considering the potential dark side of leader inclusiveness on employee voice. This study examines the dual-path mechanism by which leader inclusiveness influences employee voice through perceived autonomy and cognitive dependence and investigates the moderating role of performance-prove goal orientation within this dynamic. Based on data from 286 independent leader–subordinate dyads working in China, we find that leader inclusiveness can promote employee voice by increasing perceived autonomy, and hinder employee voice by increasing cognitive dependence. Furthermore, performance-prove goal orientation weakens the positive indirect effect of leader inclusiveness on voice via perceived autonomy and strengthens the negative indirect effect of leader inclusiveness on voice via cognitive dependence. These findings contribute to a better understanding of how leader inclusiveness affects employee voice behavior through dual pathways and its boundary conditions.

Recently, women’s presence on top boards of directors has significantly increased, challenging the long standing of male-led corporate elites. In light of the still-developing literature, this article provides a century-long examination of women’s entry into the Spanish corporate elite, offering several original contributions. In addition to its pioneering input into the country’s historiography, the work uses a holistic model to introduce a comparative European approach. Moreover, it empirically examines the significant yet previously unexplored impact of elite training institutions on the advancement of female directors as well as their arrival through a national holding company and their presence in leading publicly traded companies. Findings showed four distinct stages in their trajectory: discriminatory exclusion, during the first third of the twentieth century; exceptional inclusion, with early positions in their family-owned firms; gradual incorporation, with increased political representation and expanded academic access in the latter decades of the last century; and promotion, supported by twenty-first-century political strategies, while still revealing the handicap of women’s delayed entry into the corporate network.

Board of directors (BOD) bring valuable human and relational capital to firms but may act as self-interested agents by design. The purpose of this study is to investigate how the compensation of BOD members in high-technology sectors affects overall firm performance. We tested our specific hypotheses using panel regression methodology on data gathered from the CRSP, Compustat, BoardEx, and ExecuComp databases. Our final sample consisted of 9,127 firm years, and the companies in our sample were all high-tech publicly traded U.S. firms from 1992 to 2019. Our results showed that there is an association between BOD’s pay structure and firm performance (accounting-based return on assets and market-based Tobin’s Q). Our findings demonstrate originality and contribute to the literature since we empirically demonstrate that the level of variable BOD pay has a diminishing effect on return on assets and Tobin’s Q. This study advances our knowledge of executive compensation in the high technology sector.

Business actors play increasingly important roles in global governance and international regulation. This paper considers how regime complexity influences the roles of businesses and impacts opportunities for business influence on international regulatory regimes. We conducted a scoping literature review of 243 articles from the International Regime Complexity (IRC) theory literature to explore if and how complexity affects the roles of businesses and their influence on international regulation. We found that complexity presents opportunities for businesses to regime shift and exploit knowledge asymmetry in order to influence international regulation. Further, IRC theory illustrates how the roles of businesses interact and leverage one another in order to create better opportunities for influence in specific international regulatory regimes. This paper contributes to IRC theory by building on the existing non-state actor discussions and offering specific theorization of business behavior, thus starting to bridge the gap between the empirical and theoretical understanding. Second, it contributes to existing discussions in business and politics literature by developing existing knowledge on the roles of businesses in global governance to better reflect the added dimension of complexity.

Despite crowdfunding platforms’ growing involvement in financing welfare, related ethical issues have received little scholarly attention. To address this gap, we focus on GoFundMe, the leading welfare crowdfunding platform in the US, to examine whether it facilitates the establishment of a just society that democratizes access to funding. Informed by Rawls’s ethics, we conduct a comprehensive analysis, arguing that GoFundMe’s modus operandi merits criticism. We advance three interrelated arguments for why GoFundMe is morally problematic. First, it distributes information and primary goods unfairly, perpetuating inequalities that disadvantage the most vulnerable. Second, it uses narratives that may distract public attention from systemic flaws in welfare provision, potentially reducing social pressure for institutional reform. Third, its emphasis on individual choice and responsibility may contribute to momentum for neoliberal policymaking. We show why scholars, policymakers, and platforms should engage in debate about regulating welfare crowdfunding activities to improve their ethicality.

This study provides a holistic approach to the potential drivers of corporate environmental policy. Institutional and/or stakeholder theories are used to explain any influence on this type of policy in situations with different characteristics. Specifically, the analysis considers country-, industry-, and firm-level determinants of an international sample of listed companies. Exploratory factor analysis was first applied to the variables at the country level because their underlying interrelationships were unknown. Using ordered probit models clustered at the firm level, we found that some environmental characteristics of a country and some macro-level variables considered together affect corporate environmental policy, along with pressure from industry peers. Moreover, we observed that companies with better policies for stakeholders, greater board independence, and greater gender diversity tended to develop better environmental policies. This study offers insight into fostering environmental responsibility through policy incentives and effective corporate governance structures.

Until now the research has mainly examined visible abusive supervision, like aggression and violence, but it’s unclear how subtle forms, such as gaslighting, impact victims. Gaslighting, an emotionally and psychologically manipulative form of abuse, is an increasingly prevalent phenomenon in contemporary times. Based on the conservation of resources theory, we examined how supervisory gaslighting affects job embeddedness directly and indirectly through work motivation. We also explored how coworker support moderates the gaslighting-work motivation link. Structural equation modeling was used to assess the two-wave time-lagged data from 337 Chinese hotel employees. The results show the negative direct and indirect effects of gaslighting, and coworker support moderates the negative link between gaslighting and work motivation. Hotel organizations should exercise caution when hiring supervisors to prevent gaslighting, which can undermine employee motivation and job embeddedness. This study also recommends raising awareness among employees to speak out against supervisors’ gaslighting behavior.

Drawing on resource-based and agency theories, this study examines the effects of business concentration and ownership structure on business group performance. On the basis of panel data (2004–2018) from the top 100 Taiwanese business groups investing globally, this study finds an S-shaped relationship between business concentration and business group performance with the interaction of advantages and costs at different levels. Performance increases when there is little business concentration, decreases when there is a moderate amount and increases again when there is a high level of business concentration. In addition, this study hypothesizes that ownership structure has a different moderating effect on this relationship. The family business group has a positive moderating effect; however, outsider direct and manager ownership have no significant moderating role. These findings have important theoretical and managerial implications for business groups.

Fostering employees’ innovative work behavior (EIB) has become one of the most important tasks of leaders. Although numerous studies have investigated the relationship between leadership and EIB, it is still unclear which specific leader behaviors promote EIB. Previous research has focused on leadership in terms of broad, non-innovation-specific leadership styles. Behavioral sub-factors have been neglected, and prioritization according to the importance of individual behaviors is still lacking. To address these issues, we identify innovation-specific leader behaviors and analyze which behaviors are best suited to increase EIB. To explain the relationship between the respective leader behaviors and EIB, we rely on the Ability–Motivation–Opportunity (AMO) framework and distinguish between ability-enhancing, motivation-enhancing, and opportunity-enhancing leadership behaviors. Our empirical analyzes are based on data from 1214 German employees. Our findings reveal that motivation- and opportunity-enhancing leadership behaviors foster EIB, with certain innovation-specific behaviors being particularly important for EIB. Building on our results, we provide guidelines for innovation-specific leadership.

While divestments and decisions to exit commercial fossil fuel ventures are not new, the imperatives of the energy transition are catalysing such moves at a global industry-wide level, as oil companies position themselves for the future. The international normative framework for business and human rights provides clear guidance on how responsible divestment from fossil fuels should occur; however, in the absence of intergovernmental coordination and regulation, individual business divestment decisions create severe human rights risks. The case of Shell’s divestment from onshore Niger Delta oil production illustrates business and human rights issues relevant to the energy transition.

Policy specialization in the U.S. Congress benefits the institution collectively and members individually. Yet members of Congress (MCs) are insufficiently specialized to optimize lawmaking success (Volden and Wiseman 2020). In this paper, we demonstrate the increasing propensity of MCs to generalize legislatively is driven largely by an expansion of MC legislative agendas in business domains. We then offer and test an explanation for this trend whereby business’s increasing demand for congressional attention (Drutman 2015) has outpaced the supply of congressional capacity to serve business needs (Crossen, Furnas, LaPira, and Burgat 2020; McKay 2022). This unmet demand incentivizes MCs to expand their business portfolio, which results in increased campaign contributions from business political action committees (PACs). We provide evidence consistent with this theory, showing that under conditions of access scarcity, MCs benefit financially (in terms of increased business PAC contributions) by broadening the number of business domains they are active in legislatively.

The theory of quiet politics has two propositions; first, that business interests prefer to engage with governments in ‘quiet’ arenas shielded from the media and the day-to-day political fray, and second that business interests exert power over governments in quiet politics. We counter the second proposition, arguing that business generally exercises influence rather than power in quiet politics. One precondition for the successful exercise of influence is the acceptance by business of certain protocols of behavior in interactions with governments. In this paper we underline the importance of such protocols by exploring the dynamics of a conflict between the east coast gas industry and the federal government in Australia amidst steep rises in domestic gas prices and supply restrictions in 2022. The gas industry behaved badly in the economy and in politics and did not abide by the relevant protocols of engagement with the government. The government responded aggressively and quiet politics failed. The paper underlines the importance of the behavioral pre-conditions for business influence in quiet politics and what can go wrong if this fails.