Harvard Business School

Displaying 1-40 of 249 results

  • White Papers // Jul 2011

    Issuer Quality And The Credit Cycle

    The authors show that the credit quality of corporate debt issuers deteriorates during credit booms, and that this deterioration forecasts low excess returns to corporate bondholders. The key insight is that changes in the pricing of credit risk disproportionately affect the financing costs faced by low quality firms, so the...

    Provided By Harvard Business School

  • White Papers // Feb 2011

    Top Executive Background And Financial Reporting Choice: The Case Of Goodwill Impairment

    The authors study the role of executive functional background in explaining goodwill impairment choices. They focus on top executives (CEOs and CFOs) whose employment history includes experience in investment banking, auditing, or private equity/venture capital. On average, they find that former auditors are significantly more likely to impair goodwill. However,...

    Provided By Harvard Business School

  • White Papers // Feb 2011

    When Power Makes Others Speechless: The Negative Impact Of Leader Power On Team Performance

    The authors examine the impact of subjective power on leadership behavior and demonstrate that the psychological effect of power on leaders spills over to impact team effectiveness. Specifically, drawing from the approach/inhibition theory of power, power-devaluation theory, and organizational research on the antecedents of employee voice, they argue that a...

    Provided By Harvard Business School

  • White Papers // Feb 2011

    Risky Trust: How Multi-Entity Teams Develop Trust In A High Risk Endeavor

    This paper explicates the challenge of risky trust, which the authors define as trust that exists between parties vulnerable to high economic, legal or reputational risks at individual or organizational levels. Drawing from analyses of data collected in a grounded case study of a multi-million dollar construction project, they identify...

    Provided By Harvard Business School

  • White Papers // Feb 2011

    Rational Preference For Smaller Menus: Variability In Menu-Setting Ability And 401(k) Plans

    The economic literature on choice focuses on individuals' decisions when faced with a given menu. However, the menu itself is often the result of pre-selection by a menu setter. The authors develop a model to study the relation between the ability of the menu setter and the size and quality...

    Provided By Harvard Business School

  • White Papers // Feb 2011

    Innovating At The World's Crossroads: How Multicultural Networks Promote Creativity

    This paper examines the effects of multicultural social networks on individuals' creative performance. Combining network analysis with experimental methods, two studies using different samples found that networks' degree of cultural heterogeneity positively predicts creativity on tasks that draw on varied cultural-knowledge resources but not on other tasks. The results also...

    Provided By Harvard Business School

  • White Papers // Feb 2011

    How Do Incumbents Fare In The Face Of Increased Service Competition?

    The authors explore the conditions under which service competition leads to customer defection from an incumbent and which customers are most vulnerable to its effects. They find that customers defect at a higher rate from the incumbent following increased service competition only when the incumbent offers high quality service relative...

    Provided By Harvard Business School

  • White Papers // Feb 2011

    Delay As Agenda Setting

    In this paper the authors examine a class of dynamic decision-making processes that involve endogenous commitment. The analysis is relevant to group decision making settings as well as to hierarchical decision making settings in which, for example, subordinates attempt to influence their superiors. An inability to commit leads to the...

    Provided By Harvard Business School

  • White Papers // Feb 2011

    Platform Competition Under Asymmetric Information

    In the context of platform competition in a two-sided market, the authors study how uncertainty and asymmetric information concerning the success of a new technology affects the strategies of the platforms and the market outcome. They find that the incumbent dominates the market by setting the welfare-maximizing quantity when the...

    Provided By Harvard Business School

  • White Papers // Feb 2011

    Driven By Social Comparisons: How Feedback About Coworkers? Effort Influences Individual Productivity

    Drawing on theoretical insights from research on social comparison processes, this paper explores how managers can use performance feedback to sustain employees' motivation and performance in organizations. Using a field experiment at a Japanese bank, the authors investigate the effects of valence (positive versus negative), type (direct versus indirect), and...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    How Firm Strategies Influence The Architecture Of Transaction Networks

    In the paper of business ecosystems, hierarchy is an architectural property that refers to the degree to which transactions proceed in a single direction, from "Upstream" to "Downstream." It is often assumed that a unidirectional flow of goods in a value chain implies a corresponding hierarchy in the transaction networks...

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  • White Papers // Jan 2011

    Exploring The Duality Between Product And Organizational Architectures: A Test Of The "Mirroring" Hypothesis

    A variety of academic studies argue that a relationship exists between the structure of an organization and the design of the products that this organization produces. The authors explore this relationship in the software industry. The research takes advantage of a natural experiment, in that they observe products that fulfill...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    Error's Lessons: The Importance Of Work Context In Organizational Learning From Error

    This paper examines the implications of work context for learning from errors in organizations. Prior research has shown that attitudes and behaviors related to error vary between groups within organizations, but has not investigated or theorized the ways in which differences in task and context influence how organizational groups best...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    Leviathan As A Minority Shareholder: A Study Of Equity Purchases By The Brazilian National Development Bank (BNDES), 1995-2003

    There is a growing literature comparing the performance of private vs. state-owned companies. Yet, there is little work examining the effects of having the government as a minority shareholder of private companies. The authors conduct such a study using data for 296 publicly-traded corporations in Brazil, looking at the effects...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    What Makes The Bonding Stick? A Natural Experiment Involving The Supreme Court And Cross-Listed Firms

    Using a natural experiment to overcome the empirical challenges facing the debate over the bonding hypothesis, the authors analyze markets' reaction to a sudden radical change in the world of U.S.-listed foreign firms. They find no evidence that markets' reaction to this event related to the corporate governance and legal...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    The Role Of Organizational Scope And Governance In Strengthening Private Monitoring

    Governments and other organizations often outsource activities to achieve cost savings from market competition. Yet such benefits are often accompanied by poor quality resulting from moral hazard, which can be particularly onerous when outsourcing the monitoring and enforcement of government regulation. In this paper, they argue that the considerable moral...

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  • White Papers // Jan 2011

    How Foundations Think: The Ford Foundation As A Dominating Institution In The Field Of American Business Schools

    In this paper there are two primary factors that can cause institutions to change. First, institutional entrepreneurs, including individual actors or small group of actors, are able to think and act outside the confines of their institutional context, and therefore, mobilize change in directions that favor new sets of interests....

    Provided By Harvard Business School

  • White Papers // Jan 2011

    Measuring And Envisioning Risks: Boundary-Work In Risk Management

    This paper asks whether the expansion of measurement-based risk management in banking is as inevitable and as dangerous as Power and others speculate. Based on two detailed case studies and 53 additional interviews with risk management staff at five other major banks over 2001-2010, this paper shows that while the...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    Naivete And Cynicism In Negotiations And Other Competitive Contexts

    A wealth of literature documents how the common failure to think about the decisions of others contributes to suboptimal outcomes. Yet sometimes, an excess of cynicism appears to lead us to over-think the actions of others and make negative attributions about their motivations without sufficient cause. In the process, we...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    When Does A Platform Create Value By Limiting Choice?

    The author presents a theory for why it might be rational for a platform to limit the number of applications available on it. The model is based on the observation that even if users prefer application variety, applications often also exhibit direct network effects. The paper shows that the platform...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    The Dark Side Of Creativity: Original Thinkers Can Be More Dishonest

    Creativity is a common aspiration for individuals, organizations, and societies. Here, however, they test whether creativity increases dishonesty. The author proposes that a creative personality and creativity primes promote individuals' motivation to think outside the box and that this increased motivation leads to unethical behavior. Finally, a field study constructively...

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  • White Papers // Jan 2011

    Multinational Firms, Labor Market Discrimination, And The Capture Of Competitive Advantage By Exploiting The Social Divide

    The organizational theory of the multinational firm holds that foreignness is a liability, and specifically that lack of embeddedness in host-country social networks is a source of competitive disadvantage; meanwhile the literature on labor market discrimination suggests that exploiting the bigotry of others can be a source of competitive advantage....

    Provided By Harvard Business School

  • White Papers // Jan 2011

    Sustainable Cities: Oxymoron Or The Shape Of The Future?

    Two trends are likely to define the 21st century: threats to the sustainability of the natural environment and dramatic increases in urbanization. This paper reviews the goals, business models, and partnerships involved in eight early "Ecocity" projects to begin to identify success factors in this emerging industry. Ecocities, for the...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    Turning Waste Into By-Product

    This paper studies how a firm can create and capture value by converting a waste stream into a useful and saleable by-product. The authors show that BPS creates an operational synergy between two products that are jointly produced. In essence, BPS is a process innovation that reduces the marginal cost...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    A Darker Side To Decentralized Banks: Market Power And Credit Rationing In SME Lending

    The authors use loan-level data to study how the organizational structure of banks impacts small business lending. They find that decentralized banks - where branch managers have greater autonomy over lending decisions - give larger loans to small firms and those with "Soft information". However, decentralized banks are also more...

    Provided By Harvard Business School

  • White Papers // Jan 2011

    Do US Market Interactions Affect CEO Pay? Evidence From UK Companies

    This paper examines the extent that interactions with US markets impact the compensation practices of non-US firms. Using a sample of large UK companies, the authors find that the total compensation of UK CEOs is positively related to the extent of the firm's interactions with US markets, as captured by...

    Provided By Harvard Business School

  • White Papers // Dec 2010

    Using What We Know: Turning Organizational Knowledge Into Team Performance

    This paper examines how teams draw on knowledge resources in the firm in the production of novel output. The author theorize positive effects of team use of an organizational knowledge repository on two measures of team performance (quality and efficiency), and argue that these effects will be greater when teams...

    Provided By Harvard Business School

  • White Papers // Dec 2010

    To Groupon Or Not To Groupon: The Profitability Of Deep Discounts

    The author examines the profitability and implications of online discount vouchers, a new marketing tool that offers consumers large discounts when they prepay for participating merchants' goods and services. Within a model of repeat experience good purchase, they examine two mechanisms by which a discount voucher service can benefit affiliated...

    Provided By Harvard Business School

  • White Papers // Dec 2010

    A Brief Postwar History Of US Consumer Finance

    This paper describes the consumer finance sector in the US since World War II. The authors define the sector in terms of the functions delivered by firms. They provide time series evidence on major trends in consumption, savings, and borrowing. Examining consumer decisions, changes in regulation, and business practices, they...

    Provided By Harvard Business School

  • White Papers // Dec 2010

    Dividends As Reference Points: A Behavioral Signaling Model

    The authors propose a model in which investors are loss averse relative to a reference point set with prior dividends. Managers with strong earnings separate themselves by increasing dividends and yet still retaining enough slack to clear a higher reference point in the next period, with high probability. The model...

    Provided By Harvard Business School

  • White Papers // Nov 2010

    Does Diversification Create Value In The Presence Of External Financing Constraints? Evidence From The 2007?2009 Financial Crisis

    The author shows that the value of corporate diversification increased during the 2007 - 2009 financial crises. Diversification gave firms both financing and investment advantages. First, conglomerates became significantly more leveraged relative to comparable focused firms. Second, conglomerates' access to internal capital markets became more valuable not just because external...

    Provided By Harvard Business School

  • White Papers // Nov 2010

    Sponsored Links Or "Advertisements"?: Measuring Labeling Alternatives In Internet Search Engines

    Search engines combine two kinds of links: So-called "Algorithmic" links present the results a search engine deems most relevant for a given search phrase, selected based on page contents, keywords, links, and other factors. So-called "Sponsored" links give the results a search engine is paid to show, selected based on...

    Provided By Harvard Business School

  • White Papers // Nov 2010

    Beyond The Deal: Wage A "Negotiation Campaign"

    In contrast to the sweeping spectrum of this story, the "Unit of analysis" that negotiation scholars primarily examine is the individual deal. With this focus, they analyze the process by which parties interact, their deeper interests, their communication patterns, possible agreements, and other factors that may influence the outcome of...

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  • White Papers // Nov 2010

    Modularity For Value Appropriation - How To Draw The Boundaries Of Intellectual Property

    The existing theory of modularity explains how modular designs create value. The author extends the theory to address value appropriation. A product or process design that is modular with respect to intellectual property (IP) allows firms to better capture value in situations where knowledge and value creation are distributed across...

    Provided By Harvard Business School

  • White Papers // Nov 2010

    The Learning Effects Of Monitoring

    This paper investigates the relationship between monitoring, decision-making, and learning among lower level employees. The author exploits a field-research setting in which business units vary in the "Tightness" with which they monitor employee decisions. They find that tighter monitoring gives rise to implicit incentives in the form of sharp increases...

    Provided By Harvard Business School

  • White Papers // Nov 2010

    Does Shareholder Proxy Access Improve Firm Value? Evidence From The Business Roundtable Challenge

    The author measures the value of shareholder proxy access by using a recent development in the ability of shareholders to nominate candidates for board seats. They use the SEC's October 4, 2010 announcement that it would significantly delay implementation of its August 2010 proxy access rule as a natural experiment....

    Provided By Harvard Business School

  • White Papers // Nov 2010

    Institutional Pressures And Organizational Characteristics: Implications For Environmental Strategy

    A broad literature has emerged over the past decades demonstrating that firms' environmental strategies and practices are influenced by stakeholders and institutional pressures. Such findings are consistent with institutional sociology, which emphasizes the importance of regulatory, normative and cognitive factors in shaping firms' decisions to adopt specific organizational practices, above...

    Provided By Harvard Business School

  • White Papers // Nov 2010

    Regulating For Legitimacy: Consumer Credit Access In France And America

    Theories of legitimate regulation have emphasized the role of governments either in fixing market failures to promote greater efficiency, or in restricting the efficient functioning of markets in order to pursue public welfare goals. In either case, features of markets serve to justify regulatory intervention. For certain areas of regulation,...

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  • White Papers // Nov 2010

    The Influence Of Prior Industry Affiliation On Framing In Nascent Industries: The Evolution Of Digital Cameras

    New industries sparked by technological change are characterized by high uncertainty. In this paper the author explores how a firm's conceptualization of products in this context, as reflected by product feature choices, is influenced by prior industry affiliation. They study digital cameras introduced from 1991-2006 by firms from three prior...

    Provided By Harvard Business School

  • White Papers // Oct 2010

    Reversing The Null: Regulation, Deregulation, And The Power Of Ideas

    It has been said that deregulation was an important source of the recent financial crisis. It may be more accurate, however, to say that a deregulatory mindset was an important source of the crisis - a mindset that, to a very significant extent, grew out of profound changes in academic...

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  • White Papers // Nov 2009

    Platform Competition, Compatibility, And Social Efficiency

    The authors study systems compatibility in settings with one-sided plat-forms and direct network effects. They consider systems compatibility in settings with two-sided platforms and indirect network effects to develop an explanation why markets with two-sided platforms are often characterized by incompatibility with one dominant player who may subsidize access to...

    Provided By Harvard Business School

  • White Papers // Sep 2010

    How Did Increased Competition Affect Credit Ratings?

    The credit rating industry has historically been dominated by just two agencies, Moody's and S&P, leading to longstanding legislative and regulatory calls for increased competition. The material entry of a third rating agency (Fitch) to the competitive landscape offers a unique experiment to empirically examine how in fact increased competition...

    Provided By Harvard Business School

  • White Papers // Sep 2008

    Stable Many-To-Many Matchings With Contracts

    The authors consider several notions of set wise stability for many-to-many matching markets with contracts and provide an analysis of the relations between the resulting sets of stable allocations for general, substitutable, and strongly substitutable preferences. Apart from obtaining set inclusion results" on all three domains, they introduce weak set...

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  • White Papers // Aug 2008

    Spanning The Institutional Abyss: The Intergovernmental Network And The Governance Of Foreign Direct Investment

    Global economic transactions such as foreign direct investment must extend over an institutional abyss between the jurisdiction, and therefore protection, of the states involved. Intergovernmental organizations (IGOs), whose members are states, represent an important attempt to span this abyss. IGOs are mandated variously to smooth economic transactions, facilitate global cooperation,...

    Provided By Harvard Business School

  • White Papers // Sep 2008

    Concentration Levels In The U.S. Advertising And Marketing Services Industry: Myth Vs. Reality

    This paper analyzes changes in concentration levels in the U.S. Advertising and Marketing Services (A&MS) industry using publicly released data that have been largely ignored in past discussions of the industrial organization of this industry, namely those available from the U.S. Census Bureau's quinquennial Economic Census and the Service Annual...

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  • White Papers // Jun 2009

    Open To Negotiation: Phenomenological Assumptions And Knowledge Dissemination

    Phenomenological assumptions - assumptions about the fundamental qualities of the phenomenon being studied and how it relates to the environment in which it occurs - affect the dissemination of knowledge from subfields to the broader field of study. Micro-process research in organizational studies rests on implicit phenomenological assumptions that vary...

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  • White Papers // Aug 2008

    Technology, Identity, And Inertia Through The Lens Of "The Digital Photography Company"

    Organizations often experience difficulty when pursuing new technology. Large bodies of research have examined the behavioral, social, and cognitive forces that underlie this phenomenon; however, the role of a firm's identity remains relatively unexplored. Identity comprises insider and outsider perceptions of what is core about an organization. An identity has...

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  • White Papers // Sep 2008

    Parallel Search, Incentives And Problem Type: Revisiting The Competition And Innovation Link

    This paper presents econometric evidence of two independent effects of adding more competitors on innovation: A competition effect whereby increasing rivalry shapes, and often decreases, incentives to expend effort and invest in innovation; and a parallel search effect whereby adding greater numbers of "Searchers" benefits innovation by broadening the search...

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  • White Papers // Jul 2009

    The Effect Of Labor On Profitability: The Role Of Quality

    Determining staffing levels is an important decision in retail operations. While the costs of increasing labor are obvious and easy to measure, the benefits are often indirect and not immediately felt. One benefit of increased labor is improved quality. The objective of this paper is to examine the effect of...

    Provided By Harvard Business School

  • White Papers // Jun 2009

    Securing Online Advertising: Rustlers And Sheriffs In The New Wild West

    Advertising is the bedrock of websites that are provided without charge to end users, so advertising is everywhere. But advertising security gaps are equally widespread: from "Malvertisement" banner ads pushing rogue anti-spyware software, to click fraud, to spyware and adware, the security lapses of online advertising are striking. Still, buying...

    Provided By Harvard Business School

  • White Papers // Sep 2008

    Variation In Experience And Team Familiarity: Addressing The Knowledge Acquisition-Application Problem

    Prior work in organizational learning has failed to find a consistent effect of variation in experience on performance. While some studies find a positive relationship between these two variables, others find no effect or even a negative relationship. In this paper, the authors suggest that the differences in prior findings...

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  • White Papers // Sep 2008

    The Architecture Of Platforms: A Unified View

    The central role of "Platform" products and services in mediating the activities of disaggregated "Clusters" or "Ecosystems" of firms has been widely recognized. But platforms and the systems in which they are embedded are very diverse. In particular, platforms may exist within firms as product lines, across firms as multi-product...

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  • White Papers // Aug 2008

    Consequences Of Voluntary And Mandatory Fair Value Accounting: Evidence Surrounding IFRS Adoption In The EU Real Estate Industry

    The authors examine the causes and consequences of European real estate firms' decisions to provide investment property fair values prior to the required disclosure of this information under International Financial Reporting Standards (IFRS). They find evidence that investor demand for fair value information - reflected in more dispersed ownership -...

    Provided By Harvard Business School

  • White Papers // Aug 2008

    Opening Platforms: How, When And Why?

    Platform-mediated networks encompass several distinct types of participants, including end users, complementary, platform providers who facilitate users' access to complements, and sponsors who develop platform technologies. Each of these roles can be opened - that is, structured to encourage participation - or closed. This paper reviews factors that motivate decisions...

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  • White Papers // Sep 2008

    Making The Gambler-s Fallacy Disappear: The Role Of Experience

    The authors examine the role of experience over time in the emergence in binary prediction tasks. Experiment 1 compares a condition where participants sequentially predict the colored outcomes of a roulette wheel with a condition where the wheel's past outcomes are presented all at once. Subjects are yoked so that...

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  • White Papers // Sep 2008

    The Litigation Of Financial Innovations

    This paper examines the litigation of patents relating to financial products and services. The author shows that these grants are being litigated at a rate 27 to 39 times greater than that of patents as a whole. The patents being litigated are disproportionately those issued to individuals and to smaller,...

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  • White Papers // Sep 2008

    The Contingent Nature Of Public Policy And Growth Strategies In The Early Twentieth-Century U.S. Banking Industry

    While effects of public policy are one of the foundations of organizational theory, less explored is how these effects may depend on other external environmental factors. The authors focus on how policy is a necessary, but not sufficient, condition to understand the growth of banking in the U.S. states, 1896-1978....

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  • White Papers // Mar 2009

    The Cost Of Property Rights: Establishing Institutions On The Philippine Frontier Under American Rule, 1898-1918

    The authors examine three reforms to property rights introduced by the United States in the Philippines in the early 20th century: the redistribution of large estates to their tenants, the creation of a system of secure land titles, and a homestead program to encourage cultivation of public lands. The first...

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  • White Papers // Aug 2008

    Over-Reaction To Demand Changes Due To Subjective And Quantitative Forecasting

    In this paper, the authors study managers' errors in decision making for inventory replenishment and how these errors affect their inventory system. In particular, primarily for its expected relationship with the bullwhip effect, they focus on the error of the over-reaction to demand changes and a common contributor of decision...

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  • White Papers // Jun 2009

    Technology Innovation And Diffusion As Sources Of Output And Asset Price Fluctuations

    The authors develop a model in which innovations in an economy's growth potential are an important driving force of the business cycle. The framework shares the emphasis of the recent "New shock" literature on revisions of beliefs about the future as a source of fluctuations, but differs by tieing these...

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  • White Papers // May 2009

    Firsthand Experience And The Subsequent Role Of Reflected Knowledge In Cultivating Trust In Global Collaboration

    While scholars contend that firsthand experience - time spent onsite observing the people, places, and norms of a distant locale - is crucial in globally distributed collaboration, how such experience actually affects interpersonal dynamics is poorly understood. Based on 47 semi structured interviews and 140 survey responses in a global...

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  • White Papers // May 2009

    Innovation Communication In Multicultural Networks: Deficits In Inter-cultural Capability And Affect-Based Trust As Barriers To New Idea Sharing In Inter- Cultural Relationships

    Innovative solutions to pressing global problems require effective inter-cultural communication. The authors propose that a barrier to the sharing of ideas pertinent to innovation in inter-cultural relationships is low affect-based trust, which arise from individuals' deficits in inter-cultural capability. Results from a study of sample of executives' professional networks indicate...

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  • White Papers // May 2009

    It Is Okay For Artists To Make Money. No, Really, It's Okay

    In this paper, the authors examine the apparent conflict between artistic and commercial objectives within creative companies, taking as the point of departure a particularly energetic debate during a symposium at the 2007 Academy of Management meetings. They surface the assumptions that underlie such debates, compare them with findings from...

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  • White Papers // May 2009

    Don't Just Survive-Thrive: Leading Innovation In Good Times And Bad

    At the beginning of the decade the authors saw two challenges ahead of them, one external and one internal. Externally, they faced a world economy that would be characterized by slower growth, with stronger global competitors going after a smaller piece of the pie. Internally, the challenge was even bigger....

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  • White Papers // Apr 2009

    Feeling The Heat: The Effects Of Performance Pressure On Teams- Knowledge Use And Performance

    This paper identifies performance pressure as a critical barrier to effective knowledge utilization. Performance pressure creates threat rigidity effects in teams, meaning that they default to using the expertise of high-status members while becoming less effective at using team members with deep client knowledge. This paper thus reveals a paradox...

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  • White Papers // Apr 2009

    On Good Scholarship, Goal Setting, And Scholars Gone Wild

    In this paper, the authors define good scholarship, highlight the points of disagreement with Locke and Latham (2009), and call for further academic research to examine the full range of goal setting's effects. They reiterate the original claim that goal setting, like a potent medication, can produce both beneficial effects...

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  • White Papers // Apr 2009

    Can A Continuously- Liquidating Tontine (Or Mutual Inheritance Fund) Succeed Where Immediate Annuities Have Floundered?

    A new instrument is proposed whose purpose is to help people carry their savings forward from the moment they retire into their old age. Like annuities, this instrument requires an up-front payment before people receive any benefits while also protecting people from the risk that they will live a long...

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  • White Papers // Apr 2009

    Asset Specificity And Vertical Integration: Williamson's Hypothesis Reconsidered

    A point repeatedly stressed by transaction cost economics is that the more specific the asset, the more likely is vertical integration to be optimal. In spite of the profusion of empirical papers supporting this prediction, recent surveys and casual observation suggest that higher levels of asset specificity need not always...

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  • White Papers // Apr 2009

    Where Is The Pharmacy To The World? International Regulatory Variation And Pharmaceutical Industry Location

    A consumer-oriented model for drug development and use has attracted attention in recent years as an alternative to the much-maligned approach of mass-marketing blockbuster drugs. In a parallel development, patients and disease-based organizations have assumed greater roles in defining disease categories than in the past and now influence clinical trials...

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  • White Papers // Oct 2010

    Prices Or Knowledge? What Drives Demand For Financial Services In Emerging Markets?

    Financial development is critical for growth, but its micro-determinants are not well understood. The authors test leading theories of low demand for financial services in emerging markets, combining novel survey evidence from Indonesia and India with a field experiment. They find a strong correlation between financial literacy and behavior. However,...

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  • White Papers // Oct 2009

    Capitalizing On Innovation: The Case Of Japan

    Japan's industrial landscape is characterized by hierarchical forms of industry organization, which are increasingly inadequate in modern sectors, where innovation relies on platforms and horizontal ecosystems of firms producing complementary products. Using three case studies - software, animation and mobile telephony -, they illustrate two key sources of inefficiencies that...

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  • White Papers // Mar 2009

    The Investment Strategies Of Sovereign Wealth Funds

    This paper examines the direct private equity investment strategies across sovereign wealth funds and their relationship to the funds' organizational structures. SWFs seem to engage in a form of trend chasing, since they are more likely to invest at home when domestic equity prices are higher, and invest abroad when...

    Provided By Harvard Business School

  • White Papers // May 2010

    Taking A "Deep Div"?: What Only A Top Leader Can Do

    Unlike most historical accounts of strategic change inside large firms, empirical research on strategic management rarely uses the day-to-day behaviors of top executives as the unit of analysis. By examining the resource allocation process closely, they introduce the concept of a deep dive, an intervention when top management seizes hold...

    Provided By Harvard Business School

  • White Papers // Mar 2009

    Corporate Misgovernance At The World Bank

    The authors test for evidence of corporate misgovernance at the World Bank. Most major decisions at the World Bank are made by its Board of Executive Directors. However, in any given year the majority of the Bank's member countries do not get a chance to serve on this powerful body....

    Provided By Harvard Business School

  • White Papers // Oct 2008

    Earnings Quality And Ownership Structure: The Role Of Private Equity Sponsors

    This paper explores how firms' ownership structures affect their earnings quality and long-term performance. Focusing on a unique sample of private firms for which there is financial data available in the years before and after their initial public offering (IPO), the author differentiates between those that have private equity sponsorship...

    Provided By Harvard Business School

  • White Papers // Mar 2009

    Corporate Social Entrepreneurship

    Corporate Social Entrepreneurship (CSE) is a process aimed at enabling business to develop more advanced and powerful forms of Corporate Social Responsibility (CSR). CSE emerges from and builds on three other conceptual frameworks: entrepreneurship, corporate entrepreneurship, and social entrepreneurship. CSE's conceptual roots begin with Schumpeter's vision that nations' innovation and...

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  • White Papers // Feb 2010

    Characteristic Timing

    The authors use differences between the attributes of stock issuers and repurchases to forecast characteristic-related stock returns. For example, they show that large firms underperform following years when issuing firms are large relative to repurchasing firms. The approach is useful for forecasting returns to portfolios based on book-to-market (HML), size...

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  • White Papers // Oct 2009

    Gray Markets And Multinational Transfer Pricing

    Gray markets arise when a manufacturer's products are sold outside of its authorized channels, for instance when goods designated for a foreign market are resold domestically. One method multinationals use to combat gray markets is to increase internal transfer prices to foreign subsidiaries in order to increase the gray market's...

    Provided By Harvard Business School

  • White Papers // Feb 2009

    Demographics, Career Concerns Or Social Comparison: Who Games SSRN Download Counts?

    The authors use a unique database of every SSRN paper download over the course of seven years, along with detailed resume data on a random sample of SSRN authors, to examine the role of demographic factors, career concerns, and social comparisons on the commission of a particular type of gaming:...

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  • White Papers // Dec 2009

    Labor Regulations And European Private Equity

    European nations substitute between employment protection regulations and labor market expenditures for providing worker insurance. Employment regulations more directly tax firms making frequent labor adjustments than other labor insurance mechanisms. Venture capital and private equity investors are especially sensitive to these labor adjustment costs. Nations favoring labor expenditures as the...

    Provided By Harvard Business School