Showing papers in "Social Science Research Network in 2013"

The Satisfaction with Life Scale

Abstract: This article reports the development and validation of a scale to measure global life satisfaction, the Satisfaction With Life Scale (SWLS). Among the various components of subjective well-being, the SWLS is narrowly focused to assess global life satisfaction and does not tap related constructs such as positive affect or loneliness. The SWLS is shown to have favorable psychometric properties, including high internal consistency and high temporal reliability. Scores on the SWLS correlate moderately to highly with other measures of subjective well-being, and correlate predictably with specific personality characteristics. It is noted that the SWLS is suited for use with different age groups, and other potential uses of the scale are discussed.

Subjective Well-Being: Three Decades of Progress

Abstract: W. Wilson's (1967) review of the area of subjective well-being (SWB) advanced several conclusions regarding those who report high levels of "happiness". A number of his conclusions have been overturned: youth and modest aspirations no longer are seen as prerequisites of SWB. E. Diener's (1984) review placed greater emphasis on theories that stressed psychological factors. In the current article, the authors review current evidence for Wilson's conclusions and discuss modern theories of SWB that stress dispositional influences, adaptation, goals, and coping strategies. The next steps in the evolution of the field are to comprehend the interaction of psychological factors with life circumstances in producing SWB, to understand the causal pathways leading to happiness, understand the processes underlying adaptation to events, and develop theories that explain why certain variables differentially influence the different components of SWV (life satisfaction, pleasant affect, and unpleasant affect).

Review of the Satisfaction with Life Scale

Abstract: The Satisfaction With Life Scale (SWLS) was developed to assess satisfaction with the respondent’s life as a whole. The scale does not assess satisfaction with life domains such as health or finances but allows subjects to integrate and weight these domains in whatever way they choose. Normative data are presented for the scale, which shows good convergent validity with other scales and with other types of assessments of subjective well-being. Life satisfaction as assessed by the SWLS shows a degree of temporal stability (e.g., 0.54 for 4 years), yet the SWLS has shown sufficient sensitivity to be potentially valuable to detect change in life satisfaction during the course of clinical intervention. Further, the scale shows discriminant validity from emotional well-being measures. The SWLS is recommended as a complement to scales that focus on psychopathology or emotional well-being because it assesses an individuals’ conscious evaluative judgment of his or her life by using the person’s own criteria.

Systems of innovation : technologies, institutions and organizations

Abstract: The systems of innovation approach is considered by many to be a useful analytical approach for better understanding innovation processes as well as the production and distribution of knowledge in the economy. It is an appropriate framework for the empirical study of innovations in their contexts and is relevant for policy makers. This text is the result of the work within an international inter-disciplinary network or "working seminar" with the task of building a more solid and sophisticated conceptual and theoretical foundation for the continued study of innovations in a systemic context. The book has three parts. The first presents an overview and tries to work out some conceptual problems. In the second, the systems of innovation approach is related to innovation theory. Part three is devoted to increasing understanding of the functioning and dynamics of systems of innovation. There is also an introduction where the genesis and anatomy of different systems of innovation approaches are discussed and where the systems of innovation approach is characterized in nine dimensions.

The Dynamics of Crowdfunding: Determinants of Success and Failure

Abstract: Crowdfunding allows founders of for-profit, artistic, and cultural ventures to fund their efforts by drawing on relatively small contributions from a relatively large number of individuals using the internet, without standard financial intermediaries. Drawing on a dataset of over 48,500 projects with combined funding over $237M, this paper offers a description of the underlying dynamics of success and failure among crowdfunded ventures. It suggests that personal networks and underlying project quality are associated with the success of crowdfunding efforts, and that geography is related to both the type of projects proposed and successful fundraising. Finally, I find that the vast majority of founders seem to fulfill their obligations to funders, but that over 75% deliver products later than expected, with the degree of delay predicted by the level and amount of funding a project receives. These results offer insight into the emerging phenomenon of crowdfunding, and also shed light more generally on the ways that the actions of founders may affect their ability to receive entrepreneurial financing.

Editorial - Partial Least Squares Structural Equation Modeling: Rigorous Applications, Better Results and Higher Acceptance

Abstract: This second Long Range Planning special issue on PLS-SEMin strategic management research and practice seeks to further progress towards this goal. The journal received 41 articles for its special issue on PLS-SEM, twelve of which completed a thorough review process successfully. Based on the number of high quality manuscripts, a decision was made to split the special issue. In the first Long Range Planning special issue on PLS-SEM in strategic management (Hair et al., 2012a; Robins, 2012), the focus was on methodological developments and their application (Becker et al., 2012; Furrer et al., 2012; Gudergan et al., 2012; Hair et al., 2012a,b,c; Money et al., 2012; Rigdon, 2012). This second special issue provides a forum for topical issues that demonstrate the usefulness of PLS-SEM by piloting applications of this method in the field of strategic management with strong implications for strategic research and practice. As such, the special issue targets two audiences: academics involved in the fields of strategy and management, and practitioners such as consultants. The six articles in this issue are summarized in the following paragraphs.

The Economic Importance of Financial Literacy: Theory and Evidence

Abstract: This paper undertakes an assessment of a rapidly growing body of economic research on financial literacy. We start with an overview of theoretical research which casts financial knowledge as a form of investment in human capital. Endogenizing financial knowledge has important implications for welfare as well as policies intended to enhance levels of financial knowledge in the larger population. Next, we draw on recent surveys to establish how much (or how little) people know and identify the least financially savvy population subgroups. This is followed by an examination of the impact of financial literacy on economic decision-making in the United States and elsewhere. While the literature is still young, conclusions may be drawn about the effects and consequences of financial illiteracy and what works to remedy these gaps. A final section offers thoughts on what remains to be learned if researchers are to better inform theoretical and empirical models as well as public policy.

The Corporate Social Performance and Corporate Financial Performance Debate: Twenty-Five Years of Incomparable Research

Abstract: This article extend earlier research concerning the relationship between corporate social performance and corporate financial performance, with particular emphasis on methodological inconsistencies. Research in this area is extended in three critical areas. First, it focuses on a particular industry, the chemical industry. Second, it use multiple sources of data -- two that are perceptually based (KLD Index and Fortune reputation survey), and two that are performance based (TRI database and corporate philanthropy) in order to triangulate toward assessing corporate social performance. Third, it use the five most commonly applied accounting measures in the corporate social performance and corporate financial performance (CSP/CFP) to assess corporate financial performance. The results indicate that the a priori use of measures may actually predetermine the CSP/CFP relationship outcome. Surprisingly, Fortune and KLD Indices very closely track one another, whereas TRI and corporate philanthropy differentiate between high and low social performers and do not correlate to the firm's financial performance.

Crowdfunding: Tapping the Right Crowd

Abstract: With crowdfunding, an entrepreneur raises external financing from a large audience (the "crowd"), in which each individual provides a very small amount, instead of soliciting a small group of sophisticated investors. This article compares two forms of crowdfunding: entrepreneurs solicit individuals either to pre-order the product or to advance a fixed amount of money in exchange for a share of future profits (or equity). In either case, we assume that "crowdfunders" enjoy "community benefits" that increase their utility. Using a unified model, we show that the entrepreneur prefers pre-ordering if the initial capital requirement is relatively small compared with market size and prefers profit sharing otherwise. Our conclusions have implications for managerial decisions in the early development stage of firms, when the entrepreneur needs to build a community of individuals with whom he or she must interact. We also offer extensions on the impact of quality uncertainty and information asymmetry.

Human Development Report 2013. The Rise of the South: Human Progress in a Diverse World

Abstract: The 2013 Human Development Report – "The Rise of the South: Human Progress in a Diverse World" – examines the profound shift in global dynamics driven by the fast-rising new powers of the developing world and its long-term implications for human developmentChina has already overtaken Japan as the world's second biggest economy while lifting hundreds of millions of its people out of poverty India is reshaping its future with new entrepreneurial creativity and social policy innovation Brazil is lifting its living standards through expanding international relationships and antipoverty programs that are emulated worldwideBut the "Rise of the South" analyzed in the Report is a much larger phenomenon: Turkey, Mexico, Thailand, South Africa, Indonesia and many other developing nations are also becoming leading actors on the world stage

Leveraging External Sources of Innovation: A Review of Research on Open Innovation

Abstract: This article reviews research on open innovation that considers how and why firms commercialize external sources of innovations. It examines both the “outside-in” and “coupled” modes of Enkel et al. (2009). From an analysis of prior research on how firms leverage external sources of innovation, it suggests a four-phase model in which a linear process — (1) obtaining, (2) integrating and (3) commercializing external innovations — is combined with (4) interaction between the firm and its collaborators. This model is used to classify papers taken from the top 25 innovation journals identified by Linton and Thongpapan (2004), complemented by highly cited work beyond those journals. A review of 291 open innovation-related publications from these sources shows that the majority of these articles indeed address elements of this inbound open innovation process model. Specifically, it finds that researchers have front-loaded their examination of the leveraging process, with an emphasis on obtaining innovations from external sources. However, there is a relative dearth of research related to integrating and commercializing these innovations.Research on obtaining innovations includes searching, enabling, filtering, and acquiring — each category with its own specific set of mechanisms and conditions. Integrating innovations has been mostly studied from an absorptive capacity perspective, with less attention given to the impact of competencies and culture (including not-invented-here). Commercializing innovations puts the most emphasis on how external innovations create value rather than how firms capture value from those innovations. Finally, the interaction phase considers both feedback for the linear process and reciprocal innovation processes such as co-creation, network collaboration and community innovation.This review and synthesis suggests several gaps in prior research. One is a tendency to ignore the importance of business models, despite their central role in distinguishing open innovation from earlier research on inter-organizational collaboration in innovation. Another gap is a tendency in open innovation to use “innovation” in a way inconsistent with earlier definitions in innovation management. The article concludes with recommendations for future research that include examining the end-to-end innovation commercialization process, and studying the moderators and limits of leveraging external sources of innovation.

Equality of Opportunity

Abstract: This forthcoming chapter in the Handbook of Income Distribution (eds., A. Atkinson and F. Bourguignon) summarizes the literature on equality of opportunity. We begin by reviewing the philosophical debate concerning equality since Rawls (sections 1 and 2), present economic algorithms for computing policies which equalize opportunities, or, more generally, ways of ordering social policies with respect to their efficacy in opportunity equalization (sections 3, 4 and 5), apply the approach to the conceptualization of economic development (section 6), discuss dynamic issues (section 7), give a preamble to a discussion of empirical work (section 8), provide evidence of population views from surveys and experiments concerning conceptions of equality (section 9), and a discuss measurement issues, summarizing the empirical literature on inequality of opportunity to date (section 10). We conclude with mention of some critiques of the equal-opportunity approach, and some predictions (section 11).

Agendas and Instability in American Politics

Abstract: Draft chapter for inclusion in The Oxford Handbook of the Classics of Public Policy and Administration, edited by Steven Balla, Martin Lodge and Edward Page, under contract with Oxford University Press. The twenty or so years since its first publication of Agendas and Instability in American Politics by Frank Baumgartner and Bryan Jones presents a timely opportunity to review the classic status of the book at it moves from being an innovative approach in public policy to one that is introduced as part of the canon. To achieve this aim in this chapter, I elaborate the factors that made the book so important at the time it originally came out in print, in particular the way Baumgartner and Jones responded and reacted to the contemporary intellectual agenda, and also the readiness of scholars for a book that pushed forward the study of agenda setting. After presenting a summary of the book’s arguments and empirical work, I assess the value of the book for students and scholars of public policy reading it in any period.

Measuring Economic Policy Uncertainty

Abstract: Many commentators argue that uncertainty about tax, spending, monetary and regulatory policy slowed the recovery from the 2007-2009 recession. To investigate this we develop a new index of economic policy uncertainty (EPU), built on three components: the frequency of newspaper references to economic policy uncertainty, the number of federal tax code provisions set to expire, and the extent of forecaster disagreement over future inflation and government purchases. This EPU index spikes near consequential presidential elections and major events such as the Gulf wars and the 9/11 attack. It also rises steeply from 2008 onward. We then evaluate our EPU index, first on a sample of 3,500 human audited news articles, and second against other measures of policy uncertainty, with these suggesting our EPU index is a good proxy for actual economic policy uncertainty. Drilling down into our index we find that the post-2008 increase was driven mainly by tax, spending and healthcare policy uncertainty. Finally, VAR estimates show that an innovation in policy uncertainty equal to the increase from 2006 to 2011 foreshadows declines of up to 2.3% in GDP and 2.3 million in employment.

Data Science, Predictive Analytics, and Big Data: A Revolution that Will Transform Supply Chain Design and Management

Abstract: We illuminate the myriad of opportunities for research where supply chain management intersects with data science, predictive analytics, and big data, collectively referred to as DPB. We show that these terms are not only becoming popular but are also relevant to supply chain research and education. Data science requires both domain knowledge and a broad set of quantitative skills, but there is a dearth of literature on the topic and many questions. We call for research on skills that are needed by SCM data scientists and discuss how such skills and domain knowledge affect the effectiveness of a SCM data scientist. Such knowledge is crucial to developing future supply chain leaders. We propose definitions of data science and predictive analytics as applied to supply chain management. We examine possible applications of DPB in practice and provide examples of research questions from these applications, as well as examples of research questions employing DPB that stem from management theories. Finally, we propose specific steps interested researchers can take to respond to our call for research on the intersection of supply chain management and DPB.

Determinants of Sustainability Reporting: A Review of Results, Trends, Theory, and Opportunities in an Expanding Field of Research

Abstract: Since the end of the 1990s, sustainability reporting has become an increasingly relevant topic in business and academia. However, literature is still limited in quantity and no major reviews of the latest developments have thus far been presented. This paper provides a review of 178 articles dating from 1999 to 2011 from journals related to business, management, and accounting. Our aim is to identify what determinants of sustainability reporting are examined in the literature and to identify (in)consistencies, gaps, and opportunities for future research. We specifically illuminate factors influencing the adoption, the extent, and the quality of reporting. Based on our findings we provide an otherwise often missing link to theory (especially legitimacy, stakeholder, signaling, and institutional theory). Finally, possible future research themes are discussed by illuminating gaps and underexposed themes in the area of regulation and governance as well as reporting quality and stakeholder perception.

Political Uncertainty and Risk Premia

Abstract: We develop a general equilibrium model of government policy choice in which stock prices respond to political news. The model implies that political uncertainty commands a risk premium whose magnitude is larger in weaker economic conditions. Political uncertainty reduces the value of the implicit put protection that the government provides to the market. It also makes stocks more volatile and more correlated, especially when the economy is weak. We find empirical evidence consistent with these predictions.

The Real-Time City? Big Data and Smart Urbanism

Abstract: ‘Smart cities’ is a term that has gained traction in academia, business and government to describe cities that, on the one hand, are increasingly composed of and monitored by pervasive and ubiquitous computing and, on the other, whose economy and governance is being driven by innovation, creativity and entrepreneurship, enacted by smart people. This paper focuses on the former and how cities are being instrumented with digital devices and infrastructure that produce ‘big data’ which enable real-time analysis of city life, new modes of technocratic urban governance, and a re-imagining of cities. The paper details a number of projects that seek to produce a real-time analysis of the city and provides a critical reflection on the implications of big data and smart urbanism.

Does Corporate Social Responsibility Lead to Superior Financial Performance? A Regression Discontinuity Approach

Abstract: This study examines the effect of corporate social responsibility (CSR) on financial performance. Specifically, I analyze the effect of CSR-related shareholder proposals that pass or fail by a small margin of votes. The passage of such "close-call" proposals is akin to a random assignment of CSR to companies and hence provides a clean causal estimate. Consistent with the view that CSR is a valuable resource, I find that the adoption of CSR proposals leads to positive announcement returns and superior accounting performance. When I examine the channels through which companies benefit from CSR, I find that the adoption of CSR proposals is associated with an increase in labor productivity and sales growth. This evidence suggests that CSR improves employee satisfaction and helps companies cater to customers that are responsive to sustainable practices.

Challenging 'Resistance to Change'

Abstract: This article examines the origins of one of the most widely accepted mental models that drives organizational behavior: The idea that there is resistance to change and that managers must overcome it. This mental model, held by employees at all levels, interferes with successful change implementation. The authors trace the emergence of the term resistance to change and show how it became received truth. Kurt Lewin introduced the term as a systems concept, as a force affecting managers and employees equally. Because the terminology, but not the context, was carried forward, later uses increasingly cast the problem as a psychological concept, personalizing the issue as employees versus managers. Acceptance of this model confuses an understanding of change dynamics. Letting go of the term — and the model it has come to embody — will make way for more useful models of change dynamics. The authors conclude with a discussion of alternatives to resistance to change.

A Vision of Responsible Research and Innovation

Abstract: This paper outlines a vision of responsible research and innovation and develops an implementation strategy for it.

Capital Flows and the Risk-Taking Channel of Monetary Policy

Abstract: This paper examines the relationship between low interests maintained by advanced economy central banks and credit booms in emerging economies. In a model with crossborder banking, low funding rates increase credit supply, but the initial shock is amplified through the risk-taking channel of monetary policy where greater risk-taking interacts with dampened measured risks that are driven by currency appreciation to create a feedback loop. In an empirical investigation using VAR analysis, we find that expectations of lower short-term rates dampen measured risks and stimulate cross-border banking sector capital flows.

Theory and Validity of Life Satisfaction Scales

Abstract: National accounts of subjective well-being are being considered and adopted by nations. In order to be useful for policy deliberations, the measures of life satisfaction must be psychometrically sound. The reliability, validity, and sensitivity to change of life satisfaction measures are reviewed. The scales are stable under unchanging conditions, but are sensitive to changes in circumstances in people’s lives. Several types of data indicate that the scales validly reflect the quality of respondents’ lives: 1. Differences between nations in life satisfaction associated with differences in objective conditions, 2. Differences between groups who live in different circumstances, 3. Correlations with nonself-report measures of life satisfaction, 4. Genetic and physiological associations with life satisfaction, 5. Systematic patterns of change in the scales before, during, and after significant life events, and 6. Prediction by life satisfaction scores of future behaviors such as suicide. The life satisfaction scales can be influenced by factors such as question order, current mood, and mode of presentation, but in most cases these can be controlled. Our model of life satisfaction judgments points to the importance of attention, values, standards, and top-down effects. Although the scales are useful in research on individual well-being, there are policy questions that need more analysis and research, such as which types of subjective well-being measures are most relevant to which types of policies, how standards influence scores, and how best to associate the scores with current policy deliberations.

Fluctuations in Uncertainty

Abstract: This review article tries to answer four questions: (i) what are the stylized facts about uncertainty over time; (ii) why does uncertainty vary; (iii) do fluctuations in uncertainty matter; and (iv) did higher uncertainty worsen the Great Recession of 2007-2009? On the first question both macro and micro uncertainty appears to rise sharply in recessions. On the second question the types of exogenous shocks like wars, financial panics and oil price jumps that cause recessions appear to directly increase uncertainty, and uncertainty also appears to endogenously rise further during recessions. On the third question, the evidence suggests uncertainty is damaging for short-run investment and hiring, but there is some evidence it may stimulate longer-run innovation. Finally, in terms of the Great Recession, the large jump in uncertainty in 2008 potentially accounted for about one third of the drop in GDP.

P-Curve: A Key to the File Drawer

Abstract: Because scientists tend to report only studies (publication bias) or analyses (p-hacking) that “work”, readers must ask, “Are these effects true, or do they merely reflect selective reporting?” We introduce p-curve as a way to answer this question. P-curve is the distribution of statistically significant p-values for a set of studies (ps

The Dark Side of Analyst Coverage: The Case of Innovation

Abstract: We examine the effects of financial analysts on the real economy in the case of innovation. Our baseline results show that firms covered by a larger number of analysts generate fewer patents and patents with lower impact. To establish causality, we use a difference-in-differences approach that relies on the variation generated by multiple exogenous shocks to analyst coverage, as well as an instrumental variable approach. Our identification strategies suggest a negative causal effect of analyst coverage on firm innovation. The evidence is consistent with the hypothesis that analysts exert too much pressure on managers to meet short-term goals, impeding firms’ investment in long-term innovative projects. We further discuss possible underlying mechanisms through which analysts impede innovation and show that there is a residual effect of analysts on innovation even after controlling for these mechanisms. Our paper offers novel evidence on a previously under-explored adverse consequence of analyst coverage — its hindrance to firm innovation.

The Sum of All FEARS: Investor Sentiment and Asset Prices

Abstract: We use the daily internet search volume from millions of households to reveal market-level sentiment. By aggregating the volume of queries related to household concerns (e.g. "recession", "unemployment" and "bankruptcy"), we construct a Financial and Economic Attitudes Revealed by Search (FEARS) index as a new measure of investor sentiment. Between 2004 and 2011, we find increases in FEARS lead to return reversals: although high FEARS are associated with low returns today, they predict high returns over the following two days. In the cross-section of stocks, the reversal effect is strongest among stocks which are attractive to noise traders and hard to arbitrage. FEARS also coincide with excess volatility and predict daily mutual fund flow. When FEARS increase, investors are more likely to pull money out of equity mutual funds and put it into bond funds. Taken together, the results are broadly consistent with theories of investor sentiment.

Enterprise Social Media: Definition, History, and Prospects for the Study of Social Technologies in Organizations

Abstract: Social media are increasingly implemented in work organizations as tools for communication among employees. As these technologies begin to proliferate across the enterprise, it is important that we develop an understanding of how they enable and constrain the communicative activities through which work is accomplished because it is these very dynamics that constitute and perpetuate organizations. We begin by offering a definition of enterprise social media and providing a rough historical account of the various avenues through which these technologies have entered and continue to enter the workplace. We also review areas of research covered by papers in this special issue and papers on enterprise social media published elsewhere to take stock of the current state of out knowledge and to propose directions for future research.

Financial Development and Innovation: Cross-Country Evidence

Abstract: We examine how financial market development affects technological innovation. Using a large data set that includes 32 developed and emerging countries and a fixed effects identification strategy, we identify economic mechanisms through which the development of equity markets and credit markets affects technological innovation. We show that industries that are more dependent on external finance and that are more high-tech intensive exhibit a disproportionally higher innovation level in countries with better developed equity markets. However, the development of credit markets appears to discourage innovation in industries with these characteristics. Our paper provides new insights into the real effects of financial market development on the economy.

Quantifying Trading Behavior in Financial Markets Using Google Trends

Abstract: Crises in financial markets affect humans worldwide. Detailed market data on trading decisions reflect some of the complex human behavior that has led to these crises. We suggest that massive new data sources resulting from human interaction with the Internet may offer a new perspective on the behavior of market participants in periods of large market movements. By analyzing changes in Google query volumes for search terms related to finance, we find patterns that may be interpreted as ‘‘early warning signs’’ of stock market moves. Our results illustrate the potential that combining extensive behavioral data sets offers for a better understanding of collective human behavior.