Heuristics play an important role in organizational decision-making. Although management and organizational scholars have contributed significantly to our understanding of heuristics in organizations over the past seven decades, the literature has become fragmented over time. Three parallel streams of research—(1) heuristics and biases, (2) fast-and-frugal heuristics, and (3) simple rule heuristics—have emerged with somewhat conflicting views on the origins, use, and implications of heuristics.
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.
During the 2000s, over a dozen U.S. states passed laws that prohibit healthcare employers from mandating overtime for nurses. Using a nationwide panel data set from 2004 to 2012, we find that these mandatory overtime laws reduced the service quality of nursing homes, as measured by an increase in deficiency citations. This outcome can be explained by two undesirable changes in the staffing hours of registered nurses: decreased hours of permanent nurses and increased hours of contract nurses per resident day. We observe that the increase in deficiency citations concentrates in the domains of administration and quality of care rather than quality of life, and the severity levels of the increased citations tend to be minor rather than major.
Standard private labels (PLs) have been the topic of multiple prior reviews. Having been leapfrogged by business practice, the marketing literature has only recently witnessed a surge in interest in multi-tier PL offerings. These typically include a budget and/or premium tier in addition to the omnipresent standard PL tier. This study offers a systematic review of recent empirical findings on budget and premium PLs.
We investigate the spatial dependence between commercial and residential mortgage defaults. A new class of observation-driven frailty factor models is introduced to do so. The idea of dynamic parameters embedded in the class of GAS models is utilized to estimate dynamic models of default risk with potentially multiple factors which are driven by stratified grouping of large panels of mortgage loan records. The score dynamics in the models is driven by so-called generalized residuals, and have therefore a fairly intuitive interpretation of ARMA-like dynamics. The proposed models are computationally easy to implement and therefore attractive in big data applications, something that gives them a considerable advantage in comparison to the typical latent factor frailty models proposed in the literature.
We study the relation between trade credit, asset prices, and production-network linkages. Empirically, firms extending more trade credit earn 7.6% p.a. lower risk premiums and maintain longer relationships with customers.
Recent health policy efforts have attempted to promote constructive conversations regarding cost-effectiveness by increasing transparency for both patients and physicians. Spurred by access and cost challenges resulting from increasing pharmaceutical prices, the Centers for Medicare & Medicaid Services (CMS) proposed a rule that would require direct-to-consumer prescription drug advertisements to include the list price for a typical 30-day course of therapy, according to their weighted average cost. This Viewpoint discusses implementing price transparency for health care products and services where physicians spend an increasing proportion of their time—in electronic health records (EHRs).
Why do firms offer non-wage compensation instead of the equivalent amount in financial compensation? We argue that firms use nonwage benefits, specifically female-friendly benefits, such as maternity leave, to increase gender diversity by efficiently attracting women.
Why do managers act unfairly even when they recognize the significant organizational benefits of treating employees fairly? Prior research has explained this puzzling phenomenon predominantly through an “actor-centric” perspective, proposing that managers’ just behavior is an outcome of their own individual differences.
We empirically study the spatiotemporal location problem motivated by an online retailer that uses the Buy-Online-Pick-Up-In-Store fulfillment method. Customers pick up their orders from trucks parked at specific locations on specific days, and the retailer’s problem is to determine where and when these pickups occur. Customer demand is influenced by the convenience of pickup locations and days.
We consider an online retailer facing heterogeneous customers with initially unknown product preferences. Customers are characterized by a diverse set of demographic and transactional attributes. The retailer can personalize the customers' assortment offerings based on available profile information to maximize cumulative revenue. To that end, the retailer must estimate customer preferences by observing transaction data.
A core idea in competitive strategy is that a firm’s ability to capture value depends on the creation of value: maximizing the gap between willingness to pay and cost. This value can depend on or be enhanced through complementarity, where the willingness to pay for an offering is increased in the presence of another offering. Substitutability is assumed to have the opposite effect.
This paper presents an easy-to-use measure of patent scope that is grounded both in patent law and in the practices of patent attorneys. We validate our measure by showing both that patent attorneys’ subjective assessments of scope agree with our estimates, and that the behavior of patenters is consistent with it.
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.
In this special issue, we review 14 articles published in Organization Science over the past 25 years examining large-scale collaborations (LSCs) tasked with knowledge dissemination and innovation. LSCs involve sizeable pools of participants carrying out a common mission such as developing open-source software, detector technologies, complex architecture, encyclopedias, medical cures, or responses to climate change.
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.
Brand naming challenges are more complex in logographic languages (e.g., Chinese), compared with phonographic languages (e.g., English) because the former languages feature looser correspondence between sound and meaning.
The pricing of prescription drugs comes under persistent public scrutiny, yet limited empirical evidence details the determinants of these price levels. This study provides a price function specification for newly launched drugs, with marginal cost and pricing power components.
In business-to-business (B2B) markets, the success of key account management (KAM) teams depends on how they are structured and how they handle customer relationships.
Using U.S. venture capital investment data from 1985 to 2008 and qualitative interviews, we examine how group dynamics influence the growth of interorganizational collaborations through the addition of new members.