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Market-Based Solutions to Vital Economic Issues


Kenan Institute 2023 Grand Challenge: Workforce Disrupted
Market-Based Solutions to Vital Economic Issues

strategy and entrepreneurship


How do an organization's task requirements affect the ways in which it reacts to competitors’ strategic investments? This study uses a novel measure of task requirements (Case Mix Index), to test the competitive and spillover effects of prior adoption on a focal organization's timing of adoption, while accounting for the underlying demand-side drivers of adoption.

Acquisitions are notoriously difficult to execute successfully. Poor implementation of the post-acquisition integration process is a major source of acquisition value destruction. To surface new solutions for this vexing problem, we leverage the emerging triadic view of M&A activities, which emphasizes the interconnectedness between sellers, acquirers, and the units that are transferred between them.

Responsive to calls from lawmakers, the USPTO has recently announced a broad set of measures to increase the quality of drug patents ex ante, before they are granted, as a way of in the US. However, there is currently no way to tell which patent applications cover inventions that will lead to FDA-approved drugs, potentially compromising the efficiency and effectiveness of the agency’s efforts. We address these informational deficits predictively and descriptively through an analysis of patents issued in 2005-2015 that cover drugs as identified through their listing in the FDA’s “Orange Book.”

Zach Clayton of Three Ships and Bill George of Harvard Business School, co-authors of the book “True North: Emerging Leader Edition,” talk about the challenges and benefits of stakeholder capitalism for companies and their leaders.

This paper examines how US immigration-induced labor mobility frictions affect entrepreneurship and firm monopsony. I exploit a natural experiment in the US immigration system that unexpectedly increased Green Card (GC) related job-switching frictions for Indian and Chinese immigrants in October 2005. Using matched employee-employer data from LinkedIn, I confirm that this shock reduced inter-firm employee mobility for Indian and Chinese employees.

Employee spinouts, defined as startups founded by prior employees of an industry firm, play a critical role in firm creation and knowledge transfer. Their superior performance often arises from resources and knowledge accrued during employment in parent firms. An understudied question is whether prior employment in parent firms impacts an employee

Financial intermediaries often provide guarantees resembling out-of-the-money put options, exposing them to undiversifiable tail risk. We present a model in the context of the U.S. life insurance industry in which the regulatory framework incentivizes value-maximizing insurers to hedge variable annuity (VA) guarantees, though imperfectly, and shift risks into high-risk and illiquid bonds. We calibrate the model to insurer-level data and identify the VA-induced changes in insurers' risk exposures.

Faced with demand uncertainty and heterogeneity in a nascent industry, entrants often consider how many customer segments to serve by tailoring the usage breadth of their product portfolios. Portfolio usage breadth is the extent to which products in a portfolio collectively span distinct customer segments. We suggest that when entrants have use experience in contexts that are potential users of the new product, their portfolios exhibit low usage breadth, due to demand-oriented cognition and knowledge.

How leaders can recast innovation's toughest trade-offs—efficiency vs. flexibility, consistency vs. change, product vs purpose—as productive tensions.

Mar 1, 2022

Managing Hybrid Work

As we return to a new normal post-pandemic, organizational and individual work arrangements will have to be designed to take into account that employees will range from not wanting to give up their autonomy of working from home to those who will want to come rushing back to the physical office. However, a large swath of the workforce will be somewhere in the middle. They would like to mix and match the benefits of working remotely and the advantages of coming to physical offices.

As of 2019, salary history bans were enacted by 17 states and Puerto Rico with the stated purpose of reducing the gender pay gap. We argue that salary history bans may negatively affect wages as employers lose an informative signal of worker productivity. We empirically evaluate these laws using a large panel dataset of disaggregated wages covering all public-sector employees in 36 states and find, on average, that salary history bans lead to a 3% decrease in new-hire wages.

Using 391 high-skilled firm entries in the U.S. from 1990–2010, we estimate the effects of the firm entry on incumbent residents’ consumption, finances, and mobility. We compare outcomes for residents living close to the entry location with those living far away while controlling for their proximity to potential high-skilled firm entry sites.