HEC Paris

About: HEC Paris is a education organization based out in Jouy-en-Josas, France. It is known for research contribution in the topics: Investment (macroeconomics) & Market liquidity. The organization has 584 authors who have published 2756 publications receiving 104467 citations. The organization is also known as: Ecole des Hautes Etudes Commerciales & HEC School of Management Paris.

Power and Choice Their Dynamic Interplay in Quenching the Thirst for Personal Control

Abstract: Power and choice represent two fundamental forces that govern human behavior. Scholars have largely treated power as an interpersonal construct involving control over other individuals, whereas choice has largely been treated as an intrapersonal construct that concerns the ability to select a preferred course of action. Although these constructs have historically been studied separately, we propose that they share a common foundation—that both are rooted in an individual’s sense of personal control. Because of this common underlying basis, we hypothesized that power and choice are substitutable; that is, we predicted that the absence of one would increase the desire for the other, which, when acquired, would serve to satisfy the broader need for control. We also predicted that choice and power would exhibit a threshold effect, such that once one source of control had been provided (e.g., power), the addition of the other (e.g., choice) would yield diminishing returns. Six experiments provide evidence supporting these predictions.

Management Control in New Product Development: The Dynamics of Managing Flexibility and Efficiency

Abstract: Several studies in management control have drawn upon the concepts of coercive and enabling forms of bureaucracy (Adler and Borys 1996) to discuss how the features of a control system may affect employees' attitudes toward control. This question is relevant because enabling forms of control allow organizations to better manage tensions between efficiency and flexibility, which is arguably a key issue in many organizations today. Our paper contributes to this stream of research by detailing how enabling control functions in the particular setting of new product development. To this end, we draw upon empirical material collected through an in‐depth field study carried out in a manufacturing organization. We use data from interviews, participant observation, and internal documentation in this firm to demonstrate how the combination of different control mechanisms helps the organization balance efficiency and flexibility. In addition, our paper sets out to explore how strategic change can influence ...

Causation, counterfactuals and competitive advantage

Abstract: Causation is still poorly understood in strategy research, and confusion prevails around key concepts such as competitive advantage. In this paper, we define epistemological conditions that help dispel some of this confusion and provide a basis for more developed approaches. In particular, we argue that a counterfactual approach—one that builds on a systematic analysis of ‘what-if’ questions—can advance our understanding of key causal mechanisms in strategy research. We offer two concrete methodologies—counterfactual history and causal modeling—as useful solutions. We also show that these methodologies open up new avenues in research on competitive advantage. Counterfactual history can add to our understanding of the context-specific construction of resource-based competitive advantage and path dependence, and causal modeling can help to reconceptualize the relationships between resources and performance. In particular, resource properties can be regarded as mediating mechanisms in these causal relationships.

Stars and Misfits: Self-Employment and Labor Market Frictions

Abstract: Recent evidence has shown that entrants into self-employment are disproportionately drawn from the tails of the earnings and ability distributions. This observation is explained by a multitask model of occupational choice in which frictions in the labor market induce mismatches between firms and workers, and misassignment of workers to tasks. The model also yields distinctive predictions relating prior work histories to earnings and to the probability of entry into self-employment. These predictions are tested with the Korean Labor and Income Panel Study, from which we find considerable support for the model. This paper was accepted by Lee Fleming, entrepreneurship and innovation.