Moshe Justman and Abraham Mehrez
Analyses the economic efficiency of innovation under different market conditions within the context of a formal model that represents competitive innovation as the closed loop…
Abstract
Analyses the economic efficiency of innovation under different market conditions within the context of a formal model that represents competitive innovation as the closed loop solution of a dynamic stochastic game in the spirit of Reinganum’s analysis. Goes beyond Reingnaum’s model in its explicit treatment of the product market (following Spence), which permits a consistent analysis of competitive innovation in the absence of patent protection. Measures efficiency by the expected net present value of total surplus, and studies the effect on it of competitive structure, elasticity of demand, fixed costs, spillovers and subsidies.
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Kun Zhang, Jeffrey J. Reuer and Francisco Morales
Strategy and entrepreneurship scholars have identified many benefits of signaling for new ventures to access resources in financial and other factor markets. However, scholars…
Abstract
Strategy and entrepreneurship scholars have identified many benefits of signaling for new ventures to access resources in financial and other factor markets. However, scholars have not studied the extent to which new ventures can employ signals to hire new talent. This chapter investigates inventor mobility across biopharmaceutical new ventures and examines the effects of two signals, venture capitalist (VC) prominence and alliance network prominence. We suggest that VC prominence and alliance network prominence can provide assurances to prospective employees about a venture's resources and prospects, thereby facilitating inventor mobility owing to enhanced labor market efficiency. Empirical evidence from biopharmaceutical startups shows that new ventures can benefit from signals emanating from their ties to VCs and alliance partners and attract inventors to join them. We also find that these signaling effects attenuate as information asymmetry diminishes.
Gerald R. Ferris, John N. Harris, Zachary A. Russell, B. Parker Ellen, Arthur D. Martinez and F. Randy Blass
Scholarship on reputation in and of organizations has been going on for decades, and it always has separated along level of analysis issues, whereby the separate literatures on…
Abstract
Scholarship on reputation in and of organizations has been going on for decades, and it always has separated along level of analysis issues, whereby the separate literatures on individual, group/team/unit, and organization reputation fail to acknowledge each other. This sends the implicit message that reputation is a fundamentally different phenomenon at the three different levels of analysis. We tested the validity of this implicit assumption by conducting a multilevel review of the reputation literature, and drawing conclusions about the “level-specific” or “level-generic” nature of the reputation construct. The review results permitted the conclusion that reputation phenomena are essentially the same at all levels of analysis. Based on this, we frame a future agenda for theory and research on reputation.
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Shane Connelly and Brett S. Torrence
Organizational behavior scholars have long recognized the importance of a variety of emotion-related phenomena in everyday work life. Indeed, after three decades, the span of…
Abstract
Organizational behavior scholars have long recognized the importance of a variety of emotion-related phenomena in everyday work life. Indeed, after three decades, the span of research on emotions in the workplace encompasses a wide variety of affective variables such as emotional climate, emotional labor, emotion regulation, positive and negative affect, empathy, and more recently, specific emotions. Emotions operate in complex ways across multiple levels of analysis (i.e., within-person, between-person, interpersonal, group, and organizational) to exert influence on work behavior and outcomes, but their linkages to human resource management (HRM) policies and practices have not always been explicit or well understood. This chapter offers a review and integration of the bourgeoning research on discrete positive and negative emotions, offering insights about why these emotions are relevant to HRM policies and practices. We review some of the dominant theories that have emerged out of functionalist perspectives on emotions, connecting these to a strategic HRM framework. We then define and describe four discrete positive and negative emotions (fear, pride, guilt, and interest) highlighting how they relate to five HRM practices: (1) selection, (2) training/learning, (3) performance management, (4) incentives/rewards, and (5) employee voice. Following this, we discuss the emotion perception and regulation implications of these and other discrete emotions for leaders and HRM managers. We conclude with some challenges associated with understanding discrete emotions in organizations as well as some opportunities and future directions for improving our appreciation and understanding of the role of discrete emotional experiences in HRM.
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Cheng-Wei Wu, Jeffrey J. Reuer and Roberto Ragozzino
This paper examines the use of signaling theory in the M&A context. We review some of the most important developments in applications and extensions of this theory to the realm of…
Abstract
This paper examines the use of signaling theory in the M&A context. We review some of the most important developments in applications and extensions of this theory to the realm of M&A, indicating how this theory has been used to explain many M&A decisions and outcomes and has offered fresh perspectives in the mature literature on acquisitions. For example, we show how signaling theory provides a new view of the determinants of acquisition premiums, and it can contribute to an improved understanding of firms’ search for acquisition opportunities as well as target selection. We also provide a critique of existing research to identify gaps in understanding on the roles played by signals. For instance, we discuss how signals can create contracting problems during M&A negotiations, how the value of signals might vary across deals, and how bidder heterogeneity and bidders’ own signals matter for certain transactions. Finally, in addition to taking stock of this stream of research, we identify some of the most important areas that deserve research attention. Signaling theory can contribute to an improved understanding of acquisition performance outcomes, and signals need to be investigated along with other solutions to enhance M&A deal making and execution. We identify new research methods that would help to advance signaling theory in the acquisitions literature.
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Nengzhi (Chris) Yao, Jiuchang Wei, Weiwei Zhu and Alexander Bondar
The conclusions on the importance of corporate response timing to a crisis have remained inconsistent. Some studies suggest that active response may reduce negative impacts…
Abstract
Purpose
The conclusions on the importance of corporate response timing to a crisis have remained inconsistent. Some studies suggest that active response may reduce negative impacts, whereas managers argue that issuing official response frustrates stakeholders and thus decreases the firm value. The purpose of this paper is to investigate the role of external media in the response timing strategy and the consequent stock market reaction.
Design/methodology/approach
Based on 130 corporate crises that befell publicly listed firms in China from 2007 to 2014, this paper uses the Baidu News Search Engine and Chinese Lexical Analysis System to construct the variables of the media characteristics. A structural equation model is established to test the hypotheses.
Findings
The results of this paper suggest that media coverage drives response timing after a crisis. Although an official response is a burden for firms, the timing strategy has multidimensional benefits including effectively alleviating negative effects (defined as buffering effects) and repairing the market (defined as restoring effects). Moreover, the buffering effects of response timing are stronger when completeness of response is low.
Originality/value
This study mainly contributes to crisis communication literature by introducing the role of media in prompting managers to make timing decisions. The findings of this study provide empirical support for the importance of timing response strategy.
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Marc Verschueren, Johan Kips and Martin Euwema
The purpose of the study was to explore in literature what different leadership styles and behaviors of head nurses have a positive influence on the outcomes of patient safety or…
Abstract
Purpose
The purpose of the study was to explore in literature what different leadership styles and behaviors of head nurses have a positive influence on the outcomes of patient safety or quality of care.
Design/methodology/approach
We reviewed the literature from January 2000 until September 2011. We searched Pubmed, Embase, Cinahl, Psychlit, and Econlit.
Findings
We found 10 studies addressing the relationship between head nurse leadership and safety and quality. A wide array of styles and practices were associated with different patient outcomes. Transformational leadership was the most used concept in the studies. A trend can be observed over these studies suggesting that a trustful relationship between the head nurse and subordinates is an important driving force for the achievement of positive patient outcomes. Furthermore, the effects of these trustful relationships seem to be amplified by supporting mechanisms, often objective conditions like clinical pathways and, especially, staffing level.
Value/originality
This study offers an up-to-date review of the limited number of studies on the relationship between nurse leadership and patient outcomes. Although mostly transformational leadership was found to be responsible for positive associations with outcomes, also contingent reward had positive influence on outcomes. We formulated some comments on the predominance of the transformational leadership concept and suggested the application of complexity theory and political leadership for the current context of care. We formulated some implications for practice and further research, mainly the need for more systematic empirical and cross cultural studies and the urgent need for the development of a validated set of nurse-sensitive patient outcome indicators.
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Stefano Grando, Fabio Bartolini, Isabelle Bonjean, Gianluca Brunori, Erik Mathijs, Paolo Prosperi and Daniele Vergamini
This chapter opens the second part of the Volume, focusing on the small farms' role and dynamics within the evolving food system. Assessing small farmers' actual and potential…
Abstract
This chapter opens the second part of the Volume, focusing on the small farms' role and dynamics within the evolving food system. Assessing small farmers' actual and potential contribution to the change towards a sustainable food and nutrition security requires a deep understanding of their strategic decision-making processes. These processes take place in a context highly conditioned by internal and external conditions, including the complex relations between farm and household, which are mapped and described. Building on an adaptation of Porter's model (Porter, 1990), the chapter investigates how farmers, given those conditions, define their strategies (in particular their innovation strategies) aimed at economic and financial sustainability through a multidisciplinary analysis of scientific literature. Internal conditions are identified in the light of the Agricultural Household Model (Singh & Subramanian, 1986) which emphasizes how family farming strategies aim at combining business-related objectives, and family welfare. Then, a comprehensive set of external conditions is identified and then grouped within eight categories: ‘Factors’, ‘Demand’, ‘Finance and Risk’, ‘Regulation and Policy’, ‘Technological’, ‘Ecological’, ‘Socio-institutional’ and ‘Socio-demographic’. Similarly, six types of strategies are identified: ‘Agro-industrial competitiveness’, ‘Blurring farm borders’, ‘Rural development’, ‘Risk management’, ‘Political support’ and ‘Coping with farming decline’.
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Kalyani Mulchandani, Ketan Mulchandani and Megha Jain
The study examines the influence of a firm's life cycle on the cash flow classification of Indian firms.
Abstract
Purpose
The study examines the influence of a firm's life cycle on the cash flow classification of Indian firms.
Design/methodology/approach
The study employs Dickinson's (2011) cash flow patterns to classify firm years under various life-cycle stages. Cash flow classification is employed to measure a firm's classification shifting (CS) practices. The study includes Indian firms listed on the Bombay Stock Exchange during 2012–2020, an ordinary least squares regression model, a fixed-effect model and a panel corrected with standard error regression method.
Findings
Firms face different opportunities and challenges at different stages of the firm's life cycle and therefore adopt cash flow CS. The results show that firms adopt cash flow CS during introduction, growth and decline stage of life cycle either to boost or to reduce operating cash flows.
Originality/value
This study is one of its kind to study the influence of a firm's life cycle on the cash flow classification of Indian firms.