Thursday, August 28, 2014

Is Sustainable Luxury Fashion Possible?

GODART Frederic, SEONG Sorah
Is Sustainable Luxury Fashion Possible? in Sustainable Luxury: Managing Social and Environmental Performance in Iconic Brands, Miguel Angel Gardetti, Ana Laura Torres (Eds.), Greenleaf Publishing (forthcoming)

Tuesday, August 26, 2014

This Number Just Feels Right: The Impact of Roundedness of Price Numbers on Product Evaluations

WADHWA Monica, ZHANG Kuangjie
This Number Just Feels Right: The Impact of Roundedness of Price Numbers on Product Evaluations Journal of Consumer Research (forthcoming)

This research proposes that since rounded numbers are more fluently processed, rounded prices (e.g., $200.00) encourage reliance on feelings. In contrast, since non-rounded numbers are disfluently processed, non-rounded prices (e.g., $198.76) encourage reliance on cognition. Thus, rounded (non-rounded) prices lead to a subjective experience of “feeling right” when the purchase decision is driven by feelings (cognition). Further, this sense of feeling right resulting from the fit between the roundedness of the price number and the nature of decision context can make positive reactions toward the target product more positive and negative reactions more negative, a phenomenon referred to as the rounded price effect in the current research. Results from five studies provide converging evidence for the rounded price effect. Findings from the current research further shows that merely priming participants with rounded (non-rounded) numbers in an unrelated context could also lead to the rounded price effect. Finally, this research provides process support by showing that the rounded price effect is mediated by a sense of feeling right. This is the first research examining the differential impact of roundedness of prices on product purchase decisions, based on whether the purchase decision is driven by feelings versus cognition.

Monday, August 25, 2014

The New Lyrics of the Old Folks: The Role of Family Ownership in Corporate Innovation

HSU Po-Hsuan, HUANG Sterling, MASSA Massimo, ZHANG Hong
Read the working paper
INSEAD Working Paper 2014/51/FIN

According to conventional wisdom, family ownership, which signals a lack of social capital and trust in an economy, may impede innovation. This argument, however, fails to recognize that modern family firms can benefit from capitalist institutions that promote innovation. Using a comprehensive sample of U.S. family-owned public firms and patents for the period from 2000 to 2010, we show that family ownership promotes innovation and that this positive effect can be attributed to reduced financial constraints, a greater commitment to long-term value, and improved corporate governance. Causality is confirmed by an instrumental variable analysis using the state-level divorce rate and a difference-in-difference analysis based on changes in estate taxes (the Economic Growth and Tax Relief Reconciliation Act of 2001).

Alliance Portfolios and Resource Competition: How a Firm’s Partners’ Partners Influence the Benefits of Collaboration

AGGARWAL Vikas A.
Read the working paper
INSEAD Working paper 2014/49/EFE

This study examines the performance implications of competition for access to the resources of a firm’s alliance partners. Partner time and attention may be non-scale free resources, with their use in particular contexts constrained when applied across multiple relationships. Consequently, the other relationships in which a firm’s alliance partners are engaged can influence the firm’s returns to its alliance collaborations. Using a panel dataset of biotechnology start-ups I find that greater overlap in the R&D function between a start-up’s alliances and its partners’ other relationships can reduce start-up innovation output. I theorize that this stems from a reduction in knowledge spillovers from the partners, and I investigate the contingencies moderating this effect, as well as the conditions under which such effects may be less salient.

Friday, August 22, 2014

Performance Measurement and Management Control Behavioral Implications and Human Actions

DAVILA Antonio, EPSTEIN Marc, MANZONI Jean-Fran├žois (Eds.)
Performance Measurement and Management Control Behavioral Implications and Human Actions Emerald Group Publishing Ltd. (2014) 384 p.

This new volume contains selected papers that were presented at the 2013 conference on performance measurement and management control focusing on behavioral implications and human actions associated with the use of performance measurement and management control systems. These systems do not work in a vacuum, rather they guide and motivate how people in organizations and markets behave. The intersection between management tools and human action is a central aspect in these research fields. Yet, multiple variables impact the result of certain designs on the behavior of people. The volume presents issues such as national culture, organizational culture, strategy, technology, partnerships and joint ventures, and the presence of other management systems. The editors hope this book will continue the search for additional understanding and development in performance measurement and management control, and provide guidance for both academic researchers and managers as they work toward improving organizations.