Organizations can create volume flexibility-the ability to increase capacity up or down to meet demand for a single service-through the use of flexible labor resources (e.g., part-time and temporary workers, as compared to full-time workers).
Because security analysts, who serve as brokers between public firms and investors, arrive at their forecasts by incorporating guidance from managers, there is immense pressure on the managers to meet or beat analyst earnings forecasts; moreover, investors reward (penalize) firms for exceeding (missing) analyst forecasts.
In business-to-business markets, suppliers often ask an existing customer to provide a referral for them (i.e., a supplier-selected referral), in which the supplier selects a referrer to influence a specific potential customer favorably. The selection of the referrer is important because the right referrer providing the right message can generate business for the supplier.
Outsourcing, which involves business-to-business arm’s-length exchanges with suppliers to supplement in-house activities, has grown internationally in scope with the advent of offshore outsourcing in which firms outsource business processes to be executed by suppliers in other countries.
Foreign subsidiaries of multinational corporations (MNCs) rely on external partners, such as channel partners, to achieve global objectives. We conceptualize the subsidiary’s channel partner as an extended link of the MNC’s internal network: thus, the subsidiary’s adaptation and execution of the MNC’s global strategies should influence the subsidiary’s channel relationship and performance.
In evaluating suppliers in complex purchasing decisions involving customized solutions, purchasing managers must judge the capabilities suppliers have to provide the solutions, a judgment that often includes considerable uncertainty.
The interaction between market orientation and facets of the environment is theoretically compelling and is hence the primary interaction studied in market orientation literature. Yet empirical literature offers mixed findings regarding these interaction effects.
Research, including our own studies, suggests that small tweaks can improve your commuting experience, leaving you happier and more productive.
As waste from used electronic products grows steadily, manufacturers face take‐back regulations mandating its collection and proper treatment through recycling, or remanufacturing. Environmentalists greet such regulation with enthusiasm, but its effect on remanufacturing activity and industry competition remains unclear. We research these questions, using a stylized model with an original equipment manufacturer (OEM) facing competition from an independent remanufacturer (IR).
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.
The collapse of the securitization market during the 2007-2008 Financial Crisis resulted from investors’ concern with the value of securitized assets and securities issued by special purpose entities (SPEs). Research has shown that prior to the Crisis, investors valued equity of sponsor-originator banks (S-Os) as if there were an implicit guarantee extended to SPE creditors that would be fully honored. We predict that the Crisis caused investors to value S-O equity as if such guarantees would not be honored.
Many people dream of starting their own business. But before they can make their dream a reality, one of the first and most important decisions they must make is whether to go it alone or partner with someone they may, or may not, already know. Which approach is better?
The paper evaluates the performance of several recently proposed tests for structural breaks in the conditional variance dynamics of asset returns. The tests apply to the class of ARCH and SV type processes as well as data‐driven volatility estimators using high‐frequency data.
We propose a class of two factor dynamic models for duration data and related risk analysis in finance and insurance. Empirical findings suggest that the conditional mean and (under) overdispersion of times elapsed between stock trades feature various patterns of temporal dependence.
This paper investigates the extent to which the expiration of a temporary tax law makes corporate earnings harder to predict and understand. Examining evidence from eight separate expirations of the R&D tax credit, I find that analysts’ forecast errors and abnormal volume increase surrounding quarterly earnings announcements for firms affected by the R&D tax credit.
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.
Arabs represent a major cultural group, yet one that is relatively neglected in cultural psychology. We hypothesized that Arab culture is characterized by a unique form of interdependence that is self-assertive. Arab cultural identity emerged historically in regions with harsh ecological and climatic environments, in which it was necessary to protect the survival of tribal groups.
Although the power held by the marketing department can determine key organizational outcomes, including firm performance, this power seemingly has been decreasing. To address this apparent disconnect, the authors propose that the board of directors is a critical but overlooked antecedent of marketing department power (MDP).
The mounting health and economic toll of the COVID-19 pandemic raises many questions about how this unprecedented event will affect the U.S. economy. In this Kenan Insight, we explore how people’s expectations about their own financial situation may hold some answers as to how the larger economy will perform.
After being generated, a new idea is rarely perfect but must be clarified, improved, and developed in more detail. Unfortunately, idea elaboration and creativity do not always come together: many new ideas become less creative when elaborated. This research examines who elaborates new ideas more creatively.