Dialogue: Can Business Scholars Make a Difference in the World?

By Stephan Manning.

How relevant is academic research for practice? How much real-world impact can or should scholars generate? What is the value of abstract theory especially in a highly practical field such as business and management? For years, scholars and journalists have debated these questions. Examples include articles by Nick Kristof in the New York Times on the need for more #engagedacademics, and by Joshua Rothman in The New Yorker on the ‘academic nature’ of academic writing. We also debated the under-utilized potential of academia in driving social change in a previous post on the OSC blog. In fact, there is a whole sub-discipline within management research entirely dedicated to better understanding the interaction between academia and practice. But what has been the outcome of this? Is research today more relevant than in the past? Can business scholars make a difference in the world?

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Beyond the Status Quo: How Corporate Sustainability Can Become a Reality

By Nardia Haigh.

Many would agree that corporate sustainability has become a buzzword, without actually changing corporate practices all that much. Recent news supports that: BP was found grossly negligent in the Deepwater Horizon disaster; the U.S. tobacco industry continues to rely on pre-teens working in the fields; and Pacific Gas & Electric is under legal scrutiny for allegedly causing a gas explosion due to suspected safety violations. So why aren’t all those sustainability strategies and programs, including new ‘sustainable’ products, the appointment of Chief Sustainability Officers, and the submission of regular sustainability reports, enabling corporations to become more sustainable? And what does it take to change that?

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Slumdog Millionaires: Can Impact Sourcing Alleviate Poverty?

By Chacko Kannothra and Stephan Manning.

Call centers, tech support, payroll processing – more and more service jobs are performed abroad. Global outsourcing is one of the most controversial trends of our time. To some, it is mainly a cost-cutting exercise which has led to job losses in Western economies and has started a ‘global race to the bottom’. The recent shift of clients and providers to second and third-tier outsourcing locations to keep labor costs low is an indicator of that. To others, outsourcing has also generated new income and entrepreneurial opportunities especially in developing countries. Clearly, in particular for the young and educated in urban areas, such as Bangalore in India, the outsourcing sector has been a career stepping stone. But how about the vast majority who still live in poverty? Will the global service industry widen the gap between the new urban elite and the rest? Maybe not if we believe in the new trend of ‘impact sourcing’ – the creation of outsourcing jobs and training opportunities for the poor and disadvantaged, in particular from slums and rural areas. Impact sourcing was celebrated a few weeks ago at the 17th World Outsourcing Summit as a promising way of combining business and social benefit. The Rockefeller Foundation even calls it a means towards reducing poverty. But are these claims realistic?

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Transforming Academia: From Silo to Vehicle for Social Change

By Stephan Manning.

There has been a lot of talk about the alienating nature of academic work. Nick Kristof argues in his recent New York Times article that academic research is increasingly irrelevant for public debates and that public intellectuals have become a dying species. Academics are increasingly driven by the pressure to publish rather than by curiosity and the need to better understand the world we live in, as Suhaib Riaz points out in his recent blog. In a nutshell, academia has become a silo in which peer recognition counts the most, whereas making a broader impact is seen as a distraction. Given the enormity of unsolved social and environmental problems facing our planet, we need to re-embed academia into society and turn it into a vehicle for social change. But how?

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The Offshoring Paradox: Are Firms Unable or Unwilling to Retain Their Employees?

By Stephan Manning.

It is almost ironic. Some years ago many U.S. and European firms started offshoring IT, finance and accounting, software testing, engineering work and other services to India, China and other developing countries mainly to cut labor costs. Now, most of these firms struggle with retaining qualified workers abroad, after having cut thousands of jobs at home. According to various reports by the Offshoring Research Network, employee turnover remains one of the most persisting problems facing firms with offshore operations. Why is that? Well, many firms complain about ‘wage inflation’ in offshoring hotspots (see Plunkett 2014 report). But is that the whole story? Compared to Silicon Valley software engineers, most counterparts in Bangalore, India, still earn only 10-20% of salaries in the Bay area (see Payscale, article by Tam). So are firms unable or unwilling to retain workers offshore?

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Good Cop Bad Cop: Corporate Political Strategy in the Porn Industry

By David Levy and Gail Dines.

California, the hub of the global porn industry, is considering regulations that would mandate not only the use of condoms during production shoots but also protective eyewear. Back in November 2012, voters approved Measure B in Los Angeles County, a ballot measure requiring condom use, despite strong industry lobbying against it. As part of this campaign, the industry promoted a satirical video suggesting that safety goggles and protective headgear would be next if the measure passed. But the health and safety issues affecting workers in the industry are not funny at all, given the nature of porn practices and the widespread presence of bodily fluids and fecal matter on production sets. The high prevalence of STDs and a recent outbreak of AIDS among porn performers highlights the seriousness of the situation, and after years of neglecting the health issues in this sector, OSHA is finally becoming more active.

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Lost in Publication: Why we are losing knowledge while gaining publications in organizational research

By Suhaib Riaz.

The scenario is familiar to most organizational scholars who regularly attend academic conferences, seminars, workshops etc. in our field. You walk in to a session with seemingly interesting topics and scholars, and settle in for an inspiring scientific conversation. Except that it doesn’t happen. Something stops everyone from that conversation: Publication. What should have been a conversation about knowledge-seeking quickly turns into a conversation on publication strategies.

The problem is so endemic that it is accepted as common practice; the stark contrast is only made apparent when one compares norms with other disciplines, such as the natural sciences. When I talk to scholars in natural sciences about the importance of discussions on ‘publication strategies’ in their field, I encounter genuine surprise and a polite request to explain what I mean. Apparently, in their sessions, the primary conversation is about how to get better research done. Not how to get it published. The latter remains a distant endnote. Importantly, this distinction in conversations exists despite the fact that the natural sciences are also grappling with various pressures related to productivity.

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From Ally McBeal to The Zookeeper: Can Massachusetts Become Hollywood East?

By Pacey Foster, Stephan Manning and David Terkla.

Hollywood and New York used to be the centers of movie-making in the U.S. This reality is changing as more and more states now attract ‘run-away’ productions from Hollywood. Massachusetts is one of them. After hosting well-known movies and TV shows in the 1990s, such as Good Will Hunting and Ally McBeal, Massachusetts experienced a drop in productions in the late 1990s and early 2000s. To counteract this trend, and to compete with other states that had begun to offer tax incentives to film and television productions, Massachusetts set up its own tax incentive program in 2006. This program has clearly contributed to an increase in the volume of productions and total employment in this sector. According to a study by HR & Associates, the tax credit in Massachusetts generated in 2011 2,220 full-time equivalent jobs and $375 million in state spending that year.* Movies shot in Boston and Massachusetts since 2006 include The Departed, Gone Baby Gone, The Zookeeper, The Town, and The Social Network. But can Massachusetts really grow into a new film production cluster? Can Massachusetts really become Hollywood East?

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Moving Deckchairs around the Titanic? Further Insights on the World’s Failing Climate Regime

By Elke Schüßler, Freie Universität Berlin.

David Levy’s bleak analysis of the carbon market is complemented by recent research by Charles-Clemens Rüling, Bettina Wittneben and myself regarding climate conferences as the sites of transnational climate policy making. While climate skepticism has long accompanied climate science and the debate about anthropogenic climate change, fresh skepticism about the structure and outcomes of climate policy processes is growing among those serious about saving our climate. The Kyoto Protocol, the much quoted “only game in town” in transnational climate policy, has failed to commit large industrialized countries and major carbon emitters such as the U.S. (in its first commitment period) and Canada (in its second) to binding targets for emissions reduction; the EU Emissions Trading Scheme, a cornerstone of supposedly ambitious European climate policy, has been written off by many civil society groups as well as by the European Parliament, voting against its reform in April; controversial energy production practices such as large-scale hydro-fracking are slowly but surely becoming more accepted even in countries such as Germany, a stronghold of the green movement. Meanwhile, the detrimental effects of climate change are being felt in both developed and developing countries, exemplified by the recent flood catastrophes in Europe and India. As climate policy is crumbling away, evidence grows to show that global warming and its threat to life on our planet is fact not fiction. Why have the decades of transnational policy efforts not produced better results?

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Tech support en français s’il vous plaît!? The challenges of becoming a new global outsourcing hub

By Stephan Manning.

Outsourcing of IT, tech support and other business services has become a global trend. Watching India’s success in the outsourcing space, many developing countries now try to grow their own business service economy. Even African countries, including South Africa, Egypt, Morocco, Ghana, and Mauritius, have built up outsourcing capabilities in recent years (see recent article by Abbott). In fact, 8 out of the Top 100 outsourcing destinations worldwide, according to the latest 2013 Tholons Ranking, are located in Africa. Not surprisingly, Kenya’s government for example also lists business process outsourcing (BPO) as a major economic building block in their Vision 2030. Boasting an improved IT infrastructure, political stability and English language capabilities, Kenya is hoping to become a major BPO hub. Other countries are following suit. But what does it really take to become a global outsourcing hub? Can any country with low-cost labor, a good IT infrastructure and favorable business climate join the club? Continue reading