London Business School

About: London Business School is a education organization based out in London, England, United Kingdom. It is known for research contribution in the topics: Portfolio & Equity (finance). The organization has 1138 authors who have published 5118 publications receiving 437980 citations. The organization is also known as: LBS.

The critical role of conflict resolution in teams: a close look at the links between conflict type, conflict management strategies, and team outcomes.

Abstract: This article explores the linkages between strategies for managing different types of conflict and group performance and satisfaction. Results from a qualitative study of 57 autonomous teams suggest that groups that improve or maintain top performance over time share 3 conflict resolution tendencies: (a) focusing on the content of interpersonal interactions rather than delivery style, (b) explicitly discussing reasons behind any decisions reached in accepting and distributing work assignments, and (c) assigning work to members who have the relevant task expertise rather than assigning by other common means such as volunteering, default, or convenience. The authors’ results also suggest that teams that are successful over time are likely to be both proactive in anticipating the need for conflict resolution and pluralistic in developing conflict resolution strategies that apply to all group members.

Loan Sales and Relationship Banking

Abstract: Firms raise money from banks and the bond market. Banks sell loans in a secondary market to recycle their funds or to trade on private information. Liquidity in the loan market depends on the relative likelihood of each motive for trade and affects firms’ optimal financial structure. The endogenous degree of liquidity is not always socially optimal: There is excessive trade in highly rated names, and insufficient liquidity in riskier bonds. We provide testable implications for prices and quantities in primary and secondary loan markets, and bond markets. Further, we posit that risk-based capital requirements may be socially desirable. THE TERM “COLLATERALIZED LOAN OBLIGATIONS” (CLOs) was coined in 1989, when corporate loans were first used as collateral in Collateralized Debt Obligations (CDOs). 1 Since then, the growth in loan sales has been enormous. According to Lucas et al. (2006), $1.1 trillion of CDOs were outstanding as of 2005, and 50% of their collateral was comprised of loans. In addition to pooled securities, banks also trade first loss positions on single names through direct sales of individual loans. In the United States, loan sales have grown from $8 billion in 1991 to $154.8 billion by 2004. 2 If a bank securitizes or sells a loan that it originated, it is buying insurance on credit events over which it has either more control or more information than the buyer. In the face of this informational friction, why did the secondary market for corporate loans develop in the 1990s? What effect has this had on relationship banking? In this paper, we characterize when a liquid secondary market for loans arises, when a liquid secondary loan market is socially desirable, and we provide testable predictions on the effect of the emergence of this market on prices and quantities in bond and primary loan markets. Our predictions are based on both changes in the parameters that lead to higher loan liquidity and changes in the contracts that are written between banks and firms given this higher liquidity.

Knowledge-based Innovation: Emergence and Embedding of New Practice Areas in Management Consulting Firms

Abstract: How do innovative knowledge-based structures emerge and become embedded in organizations? We drew on theories of knowledge-intensive firms, communities of practice, and professional service firms to analyze multiple cases of new practice area creation in management consulting firms. Our qualitative analysis identified four critical generative elements: socialized agency, differentiated expertise, defensible turf, and organizational support. We demonstrate that these elements must be combined in specific pathways for knowledge-based innovative structures to emerge and embed. These pathways emerge from practitioner networks, markets for knowledge-based services, and professional firms' hierarchies. Our findings have important implications for studying innovation in the knowledge-based economy.