Showing papers by "IE University published in 2011"
TL;DR: In this paper, the authors examine how family firms differ from non-family firms along five broad categories of managerial decisions, including management processes, firm strategies, corporate governance, stakeholder relations and business venturing.
Abstract: A growing body of research shows that family firms are different from other organizations in significant ways. In this paper we review this literature by examining how family firms differ from nonfamily firms along five broad categories of managerial decisions. These categories encompass a set of key organizational choices concerning management processes, firm strategies, corporate governance, stakeholder relations and business venturing. We argue that socioemotional wealth or affective endowment of family owners explain many of these choices. We also examine some contingency factors (namely family stage, firm size, firm hazard, and the presence of nonfamily shareholders) that moderate the influence of socioemotional wealth preservation as a point of reference when making managerial decisions in family firms. Lastly, we explore the firm performance consequences of family ownership.
1,381 citations
TL;DR: In this article, the authors evaluate how social capital in its cognitive, relational, and structural forms contributes to or impedes value creation within collaborative buyer-supplier relationships (BSRs).
764 citations
TL;DR: In this article, the authors present a full ex-post empirical analysis, by looking at use of technologies and hourly electricity prices for 2005-2009 in Spain, to study the effects that the introduction of renewable electricity and cogeneration has had on wholesale electricity prices.
263 citations
TL;DR: It is found that the queries formulated by defaults can produce differences in constructed preferences and further that manipulating queries can also mitigate default effects.
Abstract: Default options exert an influence in areas as varied as retirement program design, organ donation policy, and consumer choice. Past research has offered potential reasons why no-action defaults matter: (a) effort, (b) implied endorsement, and (c) reference dependence. The first two of these explanations have been experimentally demonstrated, but the latter has received far less attention. In three experiments we produce default effects and demonstrate that reference dependence can play a major role in their effectiveness. We find that the queries formulated by defaults can produce differences in constructed preferences and further that manipulating queries can also mitigate default effects. The experimental context involves two environmentally consequential alternatives: cheap, inefficient incandescent light bulbs, and expensive, efficient compact fluorescent bulbs. Within this context we also measure the impact of each potential rationale for a default effect. (PsycINFO Database Record (c) 2011 APA, all rights reserved). Language: en
258 citations
TL;DR: This is one of the first studies to offer a processual, microlevel analysis of HIT implementation in a clinical setting and proposes a dynamic process model of adaptive routinization of HIT that delineates the major channels through which HIT and routines interact, identifies the different stages in the dynamic co-evolution process, and isolates the pivotal role of two forms of agency.
Abstract: Despite the significant potential for performance gains from health IT (HIT), there has been limited study of the mechanisms underlying successful HIT implementations. We conducted an extensive longitudinal field study to gain an understanding of the interplay between technology and patterns of clinical work embodied in routines. We use the analytical device of narrative networks to identify where and how HIT influences patterns of work. We further draw upon adaptive structuration theory to conceptualize HIT as an intervention that alters the flow of events in a narrative network. Our findings suggest that the key to successful implementation is to manage the co-evolution process between routines and HIT and to actively orchestrate a virtuous cycle through agentic action. We propose a dynamic process model of adaptive routinization of HIT that delineates the major channels through which HIT and routines interact, identifies the different stages in the dynamic co-evolution process, and isolates the pivotal role of two forms of agency in enabling the virtuous cycle of co-evolution. This is one of the first studies to offer a processual, microlevel analysis of HIT implementation in a clinical setting.
253 citations
TL;DR: The authors reviewed the origins and dispersal of rice in Asia based on a data base of 443 archaeobotanical reports and considered evidence in terms of quality, and especially whether there are data indicatin...
Abstract: We review the origins and dispersal of rice in Asia based on a data base of 443 archaeobotanical reports. Evidence is considered in terms of quality, and especially whether there are data indicatin...
202 citations
TL;DR: In this paper, the relative impact of Corporate Social Responsibility on consumer resistance to negative information when confronted with negative information about a firm is investigated. But, the results demonstrate that CSR may offer less of blanket insurance than other important marketing measures, such as customer orientation and service quality orientation.
Abstract: Despite increased research on the various effects of Corporate Social Responsibility (CSR), the question of whether CSR is worthwhile for firms still remains to be addressed. Prior work suggests that CSR offers firms insurance-like protection against negative publicity due to greater levels of goodwill with various stakeholders. Yet, we still miss an answer to the following question: How effective, if at all, is CSR in insulating firms from scrutiny compared to other important marketing measures, such as customer orientation and service quality orientation? This study develops and empirically tests a theoretical framework that demonstrates the relative impact of CSR on consumer resistance to negative information when confronted with negative information about a firm. The results demonstrate that CSR shields firms from negative information about CSR practices but not information related to firms’ core service offerings. Managerially, the findings demonstrate that CSR may offer less of blanket insurance tha...
193 citations
TL;DR: This article examined the effects of the World of Words instructional program, a supplemental intervention for children in preschool designed to teach word knowledge and conceptual development through taxonomic categorization and embedded multimedia and found that children receiving the WOW treatment consistently outperformed their control counterparts; further, treatment children were able to use categories to identify the meaning of novel words.
Abstract: A B S T R A C T The purpose of this study was to examine the hypothesis that helping preschoolers learn words through categorization may enhance their ability to retain words and their conceptual properties, acting as a bootstrap for self-learning. We examined this hypothesis by investigating the effects of the World of Words instructional program, a supplemental intervention for children in preschool designed to teach word knowledge and conceptual development through taxonomic categorization and embedded multimedia. Participants in the study included 3- and 4-year-old children from 28 Head Start classrooms in 12 schools, randomly assigned to treatment and control groups. Children were assessed on word knowledge, expressive language, conceptual knowledge, and categories and properties of concepts in a yearlong intervention. Results indicated that children receiving the WOW treatment consistently outperformed their control counterparts; further, treatment children were able to use categories to identify the meaning of novel words. Gains in word and categorical knowledge were sustained six months later for those children who remained in Head Start. These results suggest that a program targeted to learning words within taxonomic categories may act as a bootstrap for self-learning and inference generation.
190 citations
TL;DR: Li et al. as mentioned in this paper test two models of executive pay that have not received much attention in research on Chinese listed companies: managerial power theory and tournament theory, and find that structural power and prestige power are significantly positively related to executive remuneration.
176 citations
TL;DR: This paper found that the amount of unplanned buying increases monotonically with the abstractness of the overall shopping trip goal that is established before the shopper enters the store, and that store-linked goals also affect unplanned purchases.
Abstract: Many retailers believe that a majority of purchases are unplanned, so they spend heavily on in-store marketing to stimulate these types of purchases. At the same time, the effects of “preshopping” factors—the shoppers' overall trip goals, store-specific shopping objectives, and prior marketing exposures—are largely unexplored. The authors focus on these out-of-store drivers and, unlike prior research, use panel data to “hold the shopper constant” while estimating unbiased trip-level effects. Thus, they uncover opportunities for retailers to generate more unplanned buying from existing shoppers. The authors find that the amount of unplanned buying increases monotonically with the abstractness of the overall shopping trip goal that is established before the shopper enters the store. Store-linked goals also affect unplanned buying; unplanned buying is higher on trips in which the shopper chooses the store for favorable pricing and lower on trips in which the shopper chooses the store as part of a mu...
166 citations
TL;DR: In this article, the authors compute and compare risk-adjusted CEO pay in the United States and United Kingdom, where the risk adjustment is based on estimated risk premiums stemming from the equity incentives borne by CEOs.
Abstract: We compute and compare risk-adjusted CEO pay in the United States and United Kingdom, where the risk adjustment is based on estimated risk premiums stemming from the equity incentives borne by CEOs. Controlling for firm and industry characteristics, we find that U.S. CEOs have higher pay, but also bear much higher stock and option incentives than U.K. CEOs. Using reasonable estimates of risk premiums, we find that risk-adjusted U.S. CEO pay does not appear to be large compared to that of U.K. CEOs. We also examine differences in pay and equity incentives between a sample of non-U.K. European CEOs and a matched sample of U.S. CEOs, and find that risk-adjusting pay may explain about half of the apparent higher pay for U.S. CEOs
TL;DR: The authors used two large samples of firms to assess the effects of business environment constraints, competition, export orientation, and ownership on firm performance and found that few business constraints affect performance, while country fixed effects, reflecting time-invariant differences in the business environment as well as other factors such as health care and education, matter more for firm performance than differences in business environment across firms within countries.
Abstract: We use two large samples of firms to assess the effects of business environment constraints, competition, export orientation, and ownership on firm performance. We deal with omitted variables, errors in variables, and endogeneity, and find that few business constraints affect performance. Replicating the analysis with Doing Business and Heritage Foundation indicators of the business environment yields similar results. In fact, country fixed effects, reflecting time-invariant differences in the business environment as well as other factors such as health care and education, matter more for firm performance than differences in the business environment across firms within countries.
TL;DR: In this article, the influence of environmental factors on entrepreneurship at the Spanish regional level, using institutional economics as the theoretical framework for the research, was analyzed using a fixed effects model with panel corrected standard errors.
Abstract: Purpose – The main objective of this paper is to analyse the influence of environmental factors on entrepreneurship at the Spanish regional level, using institutional economics as the theoretical framework for the research. Additionally, this work aims to emphasize how environmental conditions have different effects according to the gender of entrepreneurs.Design/methodology/approach – Regional panel data (19 Spanish regions and the 2006‐2009 period) from the Global Entrepreneurship Monitor (GEM), specifically from the Spanish National Expert Survey (NES) for environmental conditions and the GEM Adult Population Survey (APS) for entrepreneurial activity were analysed within a fixed effects model with panel corrected standard errors.Findings – The main findings of the study indicate that both informal (cultural and social norms, perception of opportunities to start‐up and entrepreneur social image) and formal factors (intellectual property rights) influence entrepreneurship, but the informal are more deter...
TL;DR: In this paper, the authors apply a simple framework of analysis to describe the Latin American business environment and detect research opportunities, focusing on four aspects of the region: institutional context, macroeconomic environment, consumer profile, and natural resource endowments.
Abstract: Executive Overview Latin America is a paradoxical region. It has unique conditions that make it one of the most attractive contexts worldwide for doing business, but it also faces serious challenges that severely underscore these opportunities. We apply a simple framework of analysis to describe the Latin American business environment and detect research opportunities. For that, we focus on four aspects of the region: (1) the institutional context, (2) the macroeconomic environment, (3) the consumer profile, and (4) the natural resource endowments. We summarize firms' strategic choices that result from this context and analyze their consequences for new business creation, incumbents' survival and growth, and sources of competitive advantages. We conclude by outlining a management research agenda.
TL;DR: In this article, the authors present a model and empirical test that supplier-to-buyer identification fosters superior operational performance by enhancing trust, supplier relation-specific investments, and information exchange.
TL;DR: In this paper, the influential role of the positive psychological capacities of hope, efficacy, optimism, resilience, as well as positive emotions on individual stress, anxiety, and well-being was investigated.
Abstract: Two studies were conducted including one involving a longitudinal research design to understand better the influential role of the positive psychological capacities of hope, efficacy, optimism, resilience, as well as positive emotions on individual stress, anxiety, and well-being. Study 1 (N = 1,316) was conducted to validate a hypothesized relationship between the positive capacities and well-being. Next, in Study 2 (N = 172), data were collected from participants at 12 points in time over 4 months and random coefficient modeling was used to test hypotheses between variables in a cognitive mediational theoretical framework. Results suggest positive psychological capacities can be a source of positive emotions. In addition, positive emotions and stress mediate the relationship between positive psychological capacities and well-being. A discussion of implications and future research conclude the article.
TL;DR: In this paper, the authors examined the implications of switching to PT work for women's subsequent earnings trajectories, distinguishing by their type of contract: permanent or fixed-term, and found that the PT/FT hourly wage differential is larger and more persistent among fixedterm contract workers, strengthening the existent evidence that these workers can be classified as secondary.
TL;DR: This paper examined the relationship between the number of assignments, the length of international assignment experience, the type of employer commissioning the international assignment, the individual's career stage at the first assignment, and career advancement.
Abstract: We look at the relationship between the number of assignments, the length of international assignment experience, the type of employer commissioning the international assignment, the individual's career stage at the first assignment, and career advancement: the time that the executives took to be appointed to the CEO position from the start of their career. Our sample of 1001 chief executives, based in 23 countries and affiliated with the 500 largest corporations in Europe and the 500 largest in the United States, allows us to examine important individual- and organization-level contingencies that affect the relationship between international assignment experience and career advancement. We find that international experience slows the executives' ascent to the top, longer assignments and a larger number of assignments being detrimental to their speed of ascent to top corporate positions. Further, international assignments at corporations other than the CEOs' current employer and assignments taken at later...
TL;DR: In this article, the authors analyzed whether extreme deliberators report that their views were polarized and whether self-reported polarization is greater following deliberations perceived as contentious, and tested the correspondence between pre-to-posttest and selfreported polarization measures.
Abstract: This study draws on quasi-experimental data from participants in heterogeneous face-to-face deliberations on sexual minority rights in Poland. It examines whether disagreement perceived during deliberation decreases—as deliberative theorists hope—or rather exacerbates—as psychological research predicts—extreme views. The study also analyzes whether extreme deliberators report that their views were polarized and whether self-reported polarization is greater following deliberations perceived as contentious. Third, the study tests the correspondence between pre- to posttest and self-reported polarization measures. As predicted, extreme deliberators who perceived disagreement polarized on the discussed policies and on issues more generally related to sexual minorities and also reported greater opinion polarization. Validating the self-reported measure with the binary index suggests that deliberators relatively accurately reported polarization.
TL;DR: In this article, the authors studied the international expansion of small and medium-sized enterprises (SMEs) in an emerging economy, using the linkage-leverage-learning (LLL) model.
Abstract: This paper aims to study the international expansion of small and medium-sized enterprises (SMEs) in an emerging economy. Mathews’ (2006: 5–27) linkage–leverage–learning (LLL) model is the framework applied to analyse the process of international expansion of SMEs. To operationalise the study of the barriers, the LLL model was linked to the work of Leonidou (2004: 279–302). The data was collected from 125 SMEs operating in Ningxia, China, and then analysed using multivariate regressions; the models used the firms’ export intensity at the regional, national and international level as dependent variables. Four models were run: two analysing the internal and external barriers hindering firms’ international expansion, and the other two models studying the characteristics of Chinese international companies (state funding and ownership) as independent variables. The results show that 12 of the barriers defined by Leonidou (2004) are hindering the expansion of Ningxia’s SMEs, that the ownership from the state does not play an important role in this expansion, and that the support from the state in the form of funds is helpful in the first stages of the expansion (regional level) and the funds from private sources are key to cross the country’s boundaries.
TL;DR: The contingency theory of organizations is employed to explain the gap between the practice and the academic models of production planning and elaborate how classic concepts in organization theory can bring practically relevant insights to operations management research.
TL;DR: In this paper, the authors identify critical knowledge sharing components that enhance the extent of strategic fit that in turn improves the success of product development efforts and show that strategic fit is associated with greater knowledge sharing and enhance product development outcomes in both small and large firms as well as diverse regions (i.e., USA, Canada and Spain).
TL;DR: In this paper, the authors argue that a crowdsourcing approach to seed innovation would not only be scalable, but also inclusive through the strengthening of crop diversity as an open informational resource.
Abstract: In sub‐Saharan Africa, modern varieties released by the formal seed sector cover only a small part of the total crop acreage. Participatory approaches to crop improvement and seed production have been developed to overcome some of the barriers to modern variety development and seed distribution, but have not been widely scaled up. Crowdsourcing, such as seen in online citizen science projects, might inspire new approaches to upscale farmer‐participatory seed innovation, specifically aiming at household food production. Using mobile technology, African farmers may be engaged in massively evaluating and distributing seeds. It is argued that a crowdsourcing approach to seed innovation would not only be scalable, but also inclusive through the strengthening of crop diversity as an open informational resource.
TL;DR: In this paper, the authors integrate resource-based and institutional theory perspectives to examine relationships between the relatedness of chemicals used within the home and target industries of a potential industrial application.
Abstract: This study integrates resource-based and institutional theory perspectives to examine relationships between the relatedness of chemicals used within the home and target industries of a potential di...
TL;DR: In this article, the authors focus on two of accounting's key functions within organizations and markets, financial reporting and governance, and find that accounting exhibited shortcomings in its structural foundation and in its application.
Abstract: The period 2007–2010 marked one of the most severe economic and financial crises in living memory. In this paper, we focus on two of accounting's key functions within organisations and markets, financial reporting and governance. In this respect, we find that accounting exhibited shortcomings in its structural foundation and in its application. Salient is its failure to account for uncertainty and to adequately capture, measure and disclose the impact of risk-taking on the financial statements, thus undermining their reliability and, potentially, their relevance as indicators of economic performance. Consequently, boards were provided with misleading numbers, and compensation was based on paper profits that did not materialise. As such, accounting carried undesirable elements that interacted with other malicious market characteristics such as excessive risk-taking by bankers, and failure in regulatory and market oversight, thus potentially contributing to deteriorating economic conditions. The paper concl...
TL;DR: In this article, the interaction between income diversion and firm performance was examined and the main reason for the observed effect was managerial diversion rather than tax evasion per se, and it was shown that stricter tax enforcement can improve firm performance.
Abstract: This paper examines the interaction between income diversion and firm performance. Using unique Russian banking transaction data, I identify 42,483 spacemen, fly-by-night firms created specifically for income diversion. Next, I build a direct measure of income diversion for 45,429 companies and show that it is negatively related to firm performance. Then, I identify the main reason for the observed effect as managerial diversion rather than tax evasion per se. Finally, I show that stricter tax enforcement can improve firm performance. A one standard deviation increase in tax enforcement corresponds to an increase in the annual revenue growth rate by 2.6%.
TL;DR: In this paper, the authors investigate the contingency role that knowledge strategy plays in explaining the relationship between team vision and product development performance and find that effective team vision varies depending on the knowledge strategy.
TL;DR: In this article, the authors study the relationship between information, expression, and extremity in Colombia and find that traditional media use is mostly unrelated to the tested forms of extremity: party-, ideology-, or issue-based.
Abstract: We extend the study of political extremity to an evolving media landscape. We differentiate between political and non-political uses of both “traditional” and “new” media, and situate political extremity within a new conceptualization of public– egocentric publics –a meso-level phenomenon enabled by new communication technologies that overcomes the traditional dichotomy of small groups and mass publics. Testing the relationship between information, expression, and extremity in Colombia, a sociopolitical context with high levels of polarization and distrust, we find that traditional media use is mostly unrelated to the tested forms of extremity: party-, ideology-, or issue-based. In turn, expressive Internet use is related to extremity and—contrary to what some commentators have feared—this relationship is negative. Lower extremity associated with online expression is consistent with the notion of egocentric publics advanced in this article. The results underscore the importance of differentiating between ...
TL;DR: The authors examined the role of certain fair value accounting (FVA) outcomes in compensation of US bank CEOs and found evidence consistent with a positive link between CEO cash bonus and fair value (FV) valuation of trading assets, managed for short-term profit.
Abstract: This paper examines the role of certain fair value accounting (FVA) outcomes in compensation of US bank CEOs The use of FVA in compensation invites an agency cost – the clawback problem - if cash compensation is based on unrealized profits that may reverse in the future At the same time FVA may be a good measure of current managerial effort and so be cash compensated We find evidence consistent with a positive link between CEO cash bonus and fair value (FV) valuation of trading assets, managed for short-term profit, as well as (amongst banks with limited trading exposure) a positive link between CEO pay and FV valuations of available for sale (AFS) assets We find no evidence that trading income is incrementally compensation relevant, indicating that compensation committees avoided the clawback problem for unrealized trading gains The paper also provides evidence on the link between FVA outcomes and equity-based pay
TL;DR: In this article, the authors studied the different mechanisms used in organizations to enact voluntary organizational forgetting based on a literature review, previous and original research, four main mechanisms are identified: assets and technologies, routines and procedures, structure and understandings.
Abstract: This paper studies the different mechanism used in organizations to enact voluntary organizational forgetting. Based on a literature review, previous and original research, four main mechanisms are identified: assets and technologies, routines and procedures, structure and understandings. Each mechanism is discussed and implications are drawn for future research.