Voice, or the expression of work-related suggestions or opinions, can help teams access and utilize members’ privately held knowledge and skills and improve collective outcomes. However, recent research has suggested that sometimes, rather than encourage positive outcomes for teams, voice from members can have detrimental consequences.
We contribute to the emerging literature on strategic corporate social responsibility (CSR) and its antecedents by undertaking a systematic analysis of the effect of rivalry on firm and industry CSR. We deal with the codetermination of competition and CSR by using instrumental variables in the firm-level analysis and by modeling it directly in the industry-level analysis.
People differ greatly in their financial risk taking behaviour. This heterogeneity has been associated with differences in brain activity, but only in laboratory settings using constrained behaviours. However, it is important to understand how these measures transfer to real life conditions, because the willingness to invest in riskier assets has a direct and considerable effect on long-term wealth accumulation.
Using a nested multiple-case study of participating ventures, directors, and mentors of eight of the original U.S. accelerators, we explore how accelerators’ program designs influence new ventures’ ability to access, interpret, and process the external information needed to survive and grow. Through our inductive process, we illuminate the bounded-rationality challenges that may plague all ventures and entrepreneurs—not just those in accelerators—and identify the particular organizational designs that accelerators use to help address these challenges, which left unabated can result in suboptimal performance or even venture failure.
We analyze how frivolous patent-infringement claims made by non-practicing entities (NPEs, or "patent trolls") affect startups' ability to grow and create jobs, innovate, and raise capital. Our identification strategy exploits the staggered adoption of anti-troll laws in 32 U.S. states.
This paper provides basic facts on worker flows between former Public Company Accounting Oversight Board (PCAOB) employees and large audit firms. Using a large sample of publicly available curricula vitae, we document that an increasing number of former PCAOB employees join U.S. audit firms in senior-level positions during recent years. We also find that the number of PCAOB employees hired by these firms is positively related to the number of deficiencies reported in their prior PCAOB inspection report, and that the number of deficiencies reported in firms’ future inspection reports is negatively associated with the number of former PCAOB employees hired.
We investigate the effect of cross-border regulatory cooperation on global mutual fund portfolio allocations, focusing on the Multilateral Memorandum of Understanding (MMoU), a non-binding information sharing arrangement between global securities regulators. Connections between the US Securities and Exchange Commission (SEC) and other foreign regulators increase the SEC’s ability to pursue US cross-listed firms. We find that foreign investment in US-cross- listed firms domiciled in the signatory country increases significantly relative to non-cross-listed firms from that country.
Times are tough for universities. Leaders on campus are facing more pressure than ever – strategic, operational, and financial. How do we manage our administrative functions efficiently to free up resources for our core dual mission of teaching and research?
Investing in economic capabilities that enhance firms' ability to innovate and compete on the world stage has become an important national and local policy focus. This type of investment occurs in specific communities and jurisdictions, often providing the foundation for regional economic development.
Strategy formation is central to why some firms succeed in entrepreneurial settings while others do not. Prior research suggests that executives effectively form strategies through actions to learn about novel opportunities, and thinking to develop a holistic understanding of the complex set of activities that must fit together.
Although private credit funds have rapidly grown into a standalone asset class over the last decade, little is known about the aggregate performance of these funds. To provide a first look at absolute and relative performance, we utilize the Burgiss database of 476 private credit funds with nearly $480 billion in committed capital, including a subset of 155 direct lending funds.
Multinational corporations (MNCs) are adopting increasingly diverse and complex marketing channels to sell their products worldwide. They strive to manage channels that confront diverse demands from headquarters, foreign subsidiaries, and local partners as well as complex market environments.
This paper proposes a new test for a large set of zero restrictions in regression models based on a seemingly overlooked, but simple, dimension reduction technique. The procedure involves multiple parsimonious regression models where key regressors are split across simple regressions. Each parsimonious regression model has one key regressor and other regressors not associated with the null hypothesis. The test is based on the maximum of the squared parameters of the key regressors. Parsimony ensures sharper estimates and therefore improves power in small sample. We present the general theory of our test and focus on mixed frequency Granger causality as a prominent application involving many zero restrictions.
We study how the government of a developing country optimizes its local content requirement (LCR) policy to maximize social welfare in a setting where foreign original equipment manufacturers (OEMs) produce and sell multicomponent products in the developing country. The foreign OEMs’ local sourcing of components is more costly than global sourcing because of technology gaps between local and global suppliers.
State and local economic development is often conceptualized as a series of successive waves, with each wave representing distinct policy priorities. In this study, we rework the standard wave metaphor to recognize the gains for regional economies when practitioners reach across established boundaries to work together to create a strategy mix.
While recent literature has depicted status as an intangible asset that is firm‐specific and mobile, we have a limited understanding of whether status confers advantage in a way similar to other intangible assets. This study examines the macro‐structural contingencies that influence the marginal value of firm status as firms expand to new markets. Building on the literatures on status and social approval assets, as well as globalization and international management, we hypothesize that two conditions influence how valuable home‐country status will be in a given host country: the interconnectedness of the home and host countries, and their relative position in the global network. We test our hypotheses in a study of 187 venture capital (VC)‐backed biotechnology ventures in 19 countries between 1990 and 2006.
In this paper, we develop a multilevel model of knowledge retrieval in teams to explore how individuals on the periphery of knowledge networks—because of their inexperience, location, lack of social capital, gender, or role—access knowledge from such a knowledge repository.
This article describes an American community survey and a survey of business owners of which the data are merged to assess the experiences of minority- versus white-owned small businesses between 2007 and 2012. This is highlighted due to it being a period encompassing the worst economic downturn since The Great Depression. White firms declined while minority firms grew rapidly. Despite recent efforts to create inclusive entrepreneurial and business ecosystems, however, minority business owners made little progress toward achieving equity or parity with white business owners. Policy prescriptions and implications for future research are discussed.
To investigate when a firm’s reputation affects its exchange partners’ responses to adverse events, we distinguish between two types of reputation identified in prior work, capability reputation and character reputation, and present arguments for differences in their effects on exchange with potential and current exchange partners. Building on theory regarding uncertainty in exchange, we propose that potential exchange partners pay more attention to a firm's capability reputation than its character reputation in the wake of adverse events. Furthermore, we propose that the buffering effects of capability reputation and character reputation will be significantly reduced when the adverse events are caused by factors within the firm’s control. We find support for our arguments in an analysis of interstate gas transmission pipeline accidents in the United States from 2004 to 2013.
In Never Stop Learning, behavioral scientist and operations expert Bradley R. Staats describes the principles and practices that comprise dynamic learning and outlines a framework to help you become more effective as a lifelong learner. Replete with the most recent research about how we learn as well as engaging stories that show how real learning happens, Never Stop Learning will become the operating manual for leaders, managers, and anyone who wants to keep thriving in the new world of work.
This study explores the role of knowledge interdependencies on the termination of patented inventions. Termination refers to the abandonment of inventive efforts that are no longer deemed promising. We argue that high interdependencies between an inventive effort and the other inventions in the same research program will increase the cognitive burden on managers and decrease the likelihood of termination.
Traditional instruments of market analysis are no longer enough for the big markets of the 21st century. Data Science creates new opportunities to understand competitors as well.
We examine the link between endowment investment performance and the expertise of university board members. Harnessing detailed information on 11,019 members for 579 universities, we find that expertise in alternatives and larger professional networks are associated with higher allocations to alternatives and better investment results.
Flight to safety (FTS) affects the markets for risky assets such as stocks, corporate bonds, and commodities. Yet, little is known about the effects on commercial real estate. Our findings benefit investors by providing estimates of the short-term return and liquidity response of REITs to FTS episodes, and by documenting long-term effects on REIT revenues and real asset values.
Using a novel data set from 75 stores of a department store retail chain that changed its incentive plan for store managers to spur greater cooperation among them and with the corporate office, we examine how incentives impact operational decisions and, consequently, store outcomes.
European economies are now dominated by services, and virtually all companies view service as critical to retaining their customers today and in the future. This European edition provides students with a complete introduction to the unique marketing challenges that services present. Guiding students to recognize and understand these special characteristics, the text also explores frameworks for developing and implementing service strategies for competitive advantage across a wide array of industries.
This article develops a case of economic development policy as an adaptive and improvisational process: effective policy is endogenous and the result of negotiations and power relationships.
Although the non-financial corporate sector accounts for the lion’s share of the post-Global Financial Crisis surge in emerging-market leverage, there is little systematic research on factors that impact corporate distress risk in emerging markets. Existing bankruptcy risk models developed using US data have low predictive power when applied to emerging market firms. We suggest that these models do not account for emerging market vulnerabilities to global shocks such as advanced economy monetary policy changes, US dollar movements, or shifts in global liquidity and risk-aversion.
We develop a stylized model that captures two critical benefits of PF strategy: product personalization and postponement of product positioning. Our paper is the first to study these benefits and associated trade-offs and it sheds light on how a firm can benefit from adopting PF strategy.
We prove that in equilibrium, imposing or increasing a market-based undersupply penalty rate in a period can result in a strictly larger renewable energy commitment at all prices in the associated day-ahead market, and can lead to lower equilibrium reliability in all periods with probability 1. We also show in an extension that firms with diversified technologies result in lower equilibrium reliability than single-technology firms in all periods with probability 1.
We use the GARCH-MIDAS model to extract the long- and short-term volatility components of cryptocurrencies. As potential drivers of Bitcoin volatility, we consider measures of volatility and risk in the US stock market as well as a measure of global economic activity. We find that S&P 500 realized volatility has a negative and highly significant effect on long-term Bitcoin volatility.
Previous research has used an ego depletion perspective to establish a self-regulatory model linking sleep deprivation to unethical behavior via depletion (Barnes, Schaubroeck, Huth, & Ghumman, 2011; Christian & Ellis, 2011; Welsh, Ellis, Christian, & Mai, 2014). We extend this research by moving beyond depletion to examine a more nuanced, process-based view of self-control.
We analyze and assess longitudinal data on startups from two data sources – the National Establishment Time-Series (NETS) database and the Secretary of State (SOS) business registry data. Our primary purposes in this paper are to assess the usefulness and reliability of these databases in measuring startup activity along several quality indicators and to explore the possibility of integrating these large databases using both automated and manual processes.
Ballooning levels of societal inequality have led to a resurgence of interest in the economic causes and consequences of wealth disparity. What has drawn less attention in the scientific literature is how different levels of resource inequality influence what types of individuals emerge as leaders. In the current paper we take a distal approach to understanding the psychological consequences of inequality and the associated implications for leadership.
Cardiovascular disease has become a leading cause of death for patients with paraplegia. Acute myocardial infarction in patients with paraplegia has not been described in the literature. This study investigates clinical features, management strategies, and outcomes of these patients.
The use of celebrity endorsements varies across countries; does their effectiveness similarly vary across cultures? The authors propose that power distance beliefs (PDB), a cultural orientation related to the extent to which people expect and accept differences in power, moderate the effects of celebrity endorsements.
Private labels (PLs) represent a major opportunity for retailers, and a severe threat to brand manufacturers. However, considerable heterogeneity can be observed in PL growth rates across markets, creating ambiguity about their future growth potential. This poses a formidable challenge to both brands and retailers on how to allocate resources across different markets to prepare for the future.
This monograph introduces Management Accounting to Operations Management researchers and illustrates how unleashing this accounting information perspective into the world of Operations Management can improve our understanding of topics of interest to Operations Management researchers and practitioners.
The recent interest in learning from failure has led to repeated praise of failure as part of the innovation process. The challenges in detecting and terminating failing projects are, however, often underplayed. This study suggests that firms exhibit different propensities to terminate failing innovation projects, and this heterogeneity in part accounts for long-run performance differences between firms in industries with high rates of innovation. The study also investigates the organizational antecedents of a capability to terminate.
Universities are under tremendous pressure related to declining resources, flat enrollments, and increasing stakeholder demands. Strategic questions are surfacing related to resource allocation – how to connect investments to outcomes in an increasingly competitive and dynamic environment.
In this paper, we seek to better understand how executives can intelligently combine modular and integrated problem solving processes to form the best possible strategy in entrepreneurial environments. To do so, we compare the efficacy of strategies formed via different processes under various market conditions, exploring the sources of significant performance differences. We address this question using NK simulation methods.
Economic forecasting is a key ingredient of decision making both in the public and in the private sector. Because economic outcomes are the result of a vast, complex, dynamic and stochastic system, forecasting is very difficult and forecast errors are unavoidable. Because forecast precision and reliability can be enhanced by the use of proper econometric models and methods, this innovative book provides an overview of both theory and applications. Undergraduate and graduate students learning basic and advanced forecasting techniques will be able to build from strong foundations, and researchers in public and private institutions will have access to the most recent tools and insights
Research exploring investor reactions to sustainability has substantial empirical limitations, which we address with a large‐scale longitudinal financial event study of the first global sustainability index, DJSI World. The study highlights the importance of careful analysis and longitudinal global samples in making inferences about the financial effects of social performance.
Conquering these youth challenges will get us a little closer to realizing Dr. King’s dream.
We use data from a federally sponsored survey about teenagers' marijuana consumption in the United States. We find that, teenagers under predict future marijuana use and that this inaccuracy is moderated by the extent of use. We also find that misprediction is affected by both attitudes and the situation through main and interaction effects. We outline some policy implications of our findings.
Short selling is a risky business. Short sellers must identify mispriced securities, borrow shares in the equity lending market, postcollateral, and pay a loan fee each day until the position closes. In addition to the standard risks that many traders face, such as margin calls and regulatory changes, short sellers also face the risk of loan recalls and the risk of changing loan fees.
This study, sponsored by the Frank Hawkins Kenan Institute of Private Enterprise and the Kenan-Flagler Energy Center, analyzes the economic cost of renewable energy’s ‘last frontier’, providing reliable baseload power. The analysis utilizes five financial and energy models to examine the cost of replacing baseload power with various energy sources to achieve fully decarbonized utility scale electricity generation.
We document that seasonal temperatures have significant and systematic effects on the U.S. economy, both at the aggregate level and across a wide cross-section of economic sectors. This effect is particularly strong for the summer: a 1F increase in the average summer temperature is associated with a reduction in the annual growth rate of state-level output of 0.15 to 0.25 percentage points. We combine our estimates with projected increases in seasonal temperatures and find that rising temperatures could reduce U.S. economic growth by up to one-third over the next century.
Most retailers operate under the assumption that stabilizing employees’ schedules would hurt their financial performance because instability is an inevitable outcome of variable demand patterns in retail stores. We tested the validity of this commonly held belief. The goal of our experiment was to determine if it is possible to improve schedule stability without hurting financial performance.
Extant literature highlights the importance of specific choices such as pricing and particular strategieslike “get big fast” for strategy in two-sided markets. Yet it leaves open how executives form a viable strategy in entrepreneurial settings, particularly when buyers, sellers, and product may be uncertain. With an inductive case study of 8 two-sided marketplace ventures in multiple industries, we developa theoretical framework that describes how entrepreneurs address this challenge: by focusing on successive strategic domains, beginning with supply.
