All posts by Business School

Diversification methods for zero-one optimization

Fred Glover, Gary Kochenberger, Weihong Xie, Jianbin Luo
Journal of Heuristics,Vol. 25, Issue 4-5, Pages: 643-671.
We introduce new diversification methods for zero-one optimization that significantly extend strategies previously introduced in the setting of metaheuristic search. Our methods incorporate easily implemented strategies for partitioning assignments of values to variables, accompanied by processes called augmentation and shifting which create greater flexibility and generality. We then show how the resulting collection of diversified solutions can be further diversified by means of permutation mappings, which equally can be used to generate diversified collections of permutations for applications such as scheduling and routing. These methods can be applied to non-binary vectors using binarization procedures and by diversification-based learning procedures that provide connections to applications in clustering and machine learning. Detailed pseudocode and numerical illustrations are provided to show the

Can Busy Organizations Learn to Get Better? Distinguishing Between the Competing Effects of Constrained Capacity on the Organizational Learning Process

Vinit M Desai
Organization Science,
Organizations are getting busier, but can they still learn to get better? This question has urgent practical importance, since competitive pressures in a wide variety of industries have resulted in organizations that increasingly strain their operating limits. This question is deeply connected with organizational learning theory, since organizations operating with constrained capacity may gain experience but lose the ability to digest itchallenging the overall organization’s ability to learn and improve. Some research, though, suggests a seemingly contradictory perspective, with constrained capacity perhaps motivating organizations to adopt more flexible approaches and learn out of necessity. This study integrates the perspectives to examine how constrained capacity impacts organizational learning. To explore this question, the study develops separate theory regarding the amount and timing of capacity crises

The Transformative Professor: Adapting and Fostering Positive Change

Sarah Kovoor-Misra
Journal of Management Inquiry,Pages: 1056492619870865.
Business school faculty can play a critical role in fostering resilience and change in their institutions. This article describes what it means to be a transformative professor and a catalyst for positive change. It suggests that this involves playing both leader and follower roles, such as builders, problem-solvers, and constructive disruptors; having a transformative mind-set; and utilizing multiple forms of intelligence.

The impetus for resilience and change in business education and management research

Sarah Kovoor-Misra
Journal of Management Inquiry,Pages: 1056492619870871.
In the past hundred years, business schools in the United States have had to be resilient and undergo change in order to address various challenges. They have faced issues pertaining to their legitimacy, rigor, and relevance. This article suggests that business schools are once again in a period of change that requires resilience and that these age old issues have to be reconsidered in this new environment, and it describes some of the economic, reputational, technological, and psychosocial threats and opportunities that are currently creating an impetus for change. The other articles that comprise this dialog series on Resilience and Change in Business Education and Management Research are also introduced.

Birth order and portfolio choice

Yosef Bonaparte, Frank J Fabozzi, David Koslowsky
Applied Economics,Pages: 1-16.
This paper examines the impact of birth order on financial decision-making. In lieu of explanations such as dissimilar parental style across children with different birth orders (due to learning and experience) or the existence of sibling externalities commonly offered in the literature to explain the impact of birth order on financial decision-making, our key conjecture is that birth order influences a host of personality traits, including risk-taking behaviour, and thus financial decisions. Indeed, we find that only born males tolerate greater financial risks and exhibit higher propensity to participate in the stock market. Irrespective of their birth order, only born individuals are 4.7-13.7% more likely to participate in the stock market. Furthermore, we also find that only born males demonstrate more activity in the financial market (higher tendencies to trade assets). Collectively, our stylized results suggest that birth order can be used

Loan portfolio diversification, market structure and bank stability

Jeungbo Shim
Journal of Banking & Finance,Vol. 104, Pages: 103-115.
This paper examines whether the choice of bank loan diversification and market concentration are associated with a bank’s financial stability. This study also investigates how the effect of loan diversification on bank stability varies depending on the level of the concentration or the competitiveness of the banking market. We find that increased loan diversification has a positive impact on the bank’s financial strength. We show that market concentration is negatively associated with bank insolvency risk, consistent with the “concentration-stability” view. The results using interaction terms between loan portfolio diversification and market concentration indicate that diversifying banks operating in highly concentrated markets are more financially stable compared to those in less concentrated markets.

Benefits of IT-Enabled Flexibilities for Foreign versus Local Firms in Emerging Economies

Jiban Khuntia, Abhishek Kathuria, Terence JV Saldanha, Benn R Konsynski
Journal of Management Information Systems,Vol. 36, Issue 3, Pages: 855-892.
Emerging economies present attractive opportunities to foreign firms. However, internationalization risk faced by foreign firms can have significant implications for their performance relative to local firms. Information Technology (IT) and IT-enabled capabilities help firms overcome internationalization risk and compete globally. Marketing Capability and Relational Capability also mitigate this risk through access to information related to markets and the business environment. We examine how foreign firms and local firms compare in leveraging synergies between such IT and firm capabilities. We focus on two kinds of IT-enabled capabilities: IT-enabled Flexibility in Customer Services, and IT-enabled Flexibility in Partner Services, and develop hypotheses for their complementary effects with Marketing Capability and Relational Capability respectively, to positively influence firm performance. We then draw on the firm

Understanding the satisfaction and continuance intention of knowledge contribution by health professionals in online health communities

Jehad Imlawi, Dawn Gregg
Informatics for Health and Social Care,Pages: 1-17.
Participation of health-care professionals in online health communities is essential for these communities to achieve their goals of improving health outcomes. However, little research has been conducted to understand what motivates health-care providers to participate in such communities. This study utilizes the expectancy/value theory to identify the factors that might affect health professionals’ intentions to continue contributing health knowledge in online health communities (OHCs). Specific motivators driving health professionals’ continuance intentions in OHCs include intrinsic motivators (helping motivator, self-efficacy, and moral obligation), and extrinsic motivators (reputation). This study also investigates how health professionals’ satisfaction in the OHC mediates the relationship between the study motivators and the continuance intentions. The study also suggests that health professional characteristics have

Revolutionizing training and education? Three questions regarding massive open online courses (MOOCs)

Justin M Weinhardt, Traci Sitzmann
Human Resource Management Review,Vol. 29, Issue 2, Pages: 218-225.
MOOC stands for Massive Open Online Course and represents an instructional approach that permits hundreds of thousands of students to access online courses anywhere around the world and typically free of charge. There have been a number of stories in the popular press suggesting that MOOCs may revolutionize training and education, but evidence regarding the instructional effectiveness of MOOCs is primarily anecdotal and overarching statistics reveal that the vast majority of students drop out before completing these courses. We pose three questions that need to be answered about the use and effectiveness of MOOCs before MOOCs can be considered a credible and useful instructional approach: 1) Who enrolls in MOOCs and why do they enroll? 2) Are students self-aware and able to self-regulate their learning in MOOCs? 3) Are MOOCs effective and how can we maximize their effectiveness?

Advancing training for the 21st century

Traci Sitzmann, Justin M Weinhardt
Human Resource Management Review,Vol. 29, Issue 2, Pages: 137-139.
A PsycINFO search using the terms learning, training, or development returns over 1.6 million resultsan astronomical knowledge base for guiding decisions on the design, delivery, evaluation, and optimization of training effectiveness. Despite this research, the thirst for knowledge about this essential human resource management function remains insatiable. This Human Resource Management Review Special Issue on Training and Developing in the 21st Century aims to advance the literature a step further. We brought together experts renowned for their knowledge of the learning process to review what is already known and tell us where the field needs to go in the upcoming decades.The goal of this overview to the special issue is to provide historical information about the current state of training and how the manuscripts covered in this issue advance this knowledge base. The manuscripts cluster around four

CEO Inside Debt and Risk Taking: Evidence From Property-Liability Insurance Firms

Andreas Milidonis, Takeshi Nishikawa, Jeungbo Shim
Journal of Risk and Insurance,Vol. 86, Issue 2, Pages: 451-477.
We examine the incentive effects of CEO inside debt holdings (pensions and deferred compensation) on risk taking using the sample of U.S. publicly traded property-liability insurers. To represent managerial risk taking, we employ value at risk (VaR) and expected shortfall (ES), which capture extreme movements in the lower tail of insurer stock return distribution. We also estimate firm default risk, equity volatilities, and insurancerelated risk as alternative measures of risk taking. We document that inside debt represents a significant component of CEOs’ compensation in the insurance industry. We find that there is a significant and negative relationship between CEO inside debt holdings and risktaking behavior. The results suggest that the structure of executive debtlike compensation could be a potential method of reducing managers’ risktaking incentives.

Does the NCAA’s Collegiate Model Promote Competitive Balance? Power-5 Conference Football Versus the NFL

E Woodrow Eckard
Journal of Sports Economics,Vol. 20, Issue 5, Pages: 654-670.
The disparity between athlete compensation and major sports revenues has produced criticisms of The National Collegiate Athletic Association (NCAA)’s Collegiate Model of athletic competition. In defense, the NCAA argues that it promotes competitive balance. One implication is that moving toward a professional model would reduce balance. The present article tests this hypothesis by comparing competitive balance in Power-5 conference football to that for the professional National Football League (NFL) using a variety of balance metrics. The results provide no support for the NCAA’s implicit hypothesis of less balance in the NFL, undermining competitive balance as a legitimate defense of the NCAA’s Collegiate Model.

Approaching evaluation from a multilevel perspective: A comprehensive analysis of the indicators of training effectiveness

Traci Sitzmann, Justin M Weinhardt
Human Resource Management Review, Vol. 29, Issue 2, Pages 253-269

We propose a multilevel framework that addresses the criteria that can be used to assess training effectiveness at the within-person, between-person, and macro levels of analysis. Specifically, we propose four evaluation taxatraining utilization, affect, performance, and financial impactas well as the specific evaluation metrics that can be captured to examine the facets of each taxon. Our multilevel framework also clarifies the appropriate level of analysis for assessing each criterion variable and articulates when it …
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The new generation of millennial entrepreneurs: A review and call for research

Jingting Liu, Ying Zhu, Manuel G. Serapio, and S. Tamer Cavusgil
International Business Review, Volume 28 Issue 5

Entering the third decade of the new millennium, the millennial generation is stepping into their most productive stage of life. We have witnessed a number of exemplary millennial entrepreneurs, such as Mark Zuckerberg, founder and CEO of Facebook. The world’s economy is evolving fast and presenting distinct entrepreneurial opportunities to millennials across the globe. It is critical that scholars of international entrepreneurship explore the new breed of millennial entrepreneurs and contrast them across generations and countries. Regrettably, the extant literature comes up short in fully addressing the new generation of entrepreneurs. We call for immediate scholarly attention on millennial entrepreneurs as they are in substantive ways unlike all earlier generations. We urge researchers to explore the unique characteristics of millennial entrepreneurs, their influence on entrepreneurial motivation, orientation …

Rationalizing Trading Frequency and Returns: Maybe Trading is Good for You

Yosef Bonaparte, Russell Cooper, Mengli Sha
National Bureau of Economic Research,Issue w25838,
Barber and Odean study the relationship between trading activity and returns. They find that households who trade more have a lower net return than other households. They argue that these results cannot emerge from a model with rational traders and instead attribute these findings to overconfidence. In contrast, we find that household financial choices generated from a dynamic optimization problem with rational agents and portfolio adjustment costs can produce trading and return patterns that closely mimic these facts. Adding various forms of irrationality, modelled as beliefs about income and return processes that are not data based, do not improve the ability of the model to explain the patterns of turnover and net returns. Irrationality can improve the ability of the model to match a larger set of moments, including these turnover and net return moments coupled with those that capture the wealth to income ratio and portfolio composition.

A process model linking occupational strength to attitudes and behaviors: The explanatory role of occupational personality heterogeneity.

Traci Sitzmann, Robert E Ployhart, Youngsang Kim
Journal of Applied Psychology,Vol. 104, Issue 2, Pages: 247.
This study proposes a mediated process model that seeks to explain how occupational strength influences personality heterogeneity, ultimately affecting attitudes and behaviors. Specifically, it proposes that strong occupations restrict personality heterogeneity (defined as the extent to which there is variability in incumbents’ personalities), which mediates the effect of occupational strength on work-related outcomes. Using a sample of 178,087 individuals employed in 315 occupations, the results indicate that strong occupations (operationalized as having high task significance) had advantageous effects on occupational satisfaction, tenure, and turnover intentions, and these effects were partially mediated by personality heterogeneity. Task significance had a negative effect on personality heterogeneity, and personality heterogeneity led to less favorable attitudes and behaviors. The occupational autonomy

The Importance of Audit Partners’ Background

Jenna Burke, Rani Hoitash, Udi Hoitash
The CPA Journal,Vol. 89, Issue 2, Pages: 13-14.
The research, forthcoming in Auditing: A Journal of Practice and Theory, is enabled by a new rule from the PCAOB that requires CPA firms to disclose the name of the partner in charge of each public company audit. Gender, Education, and Social Connections Although an estimated 50% of CPA firm employees are female, reported data shows that women make up only 17% of public company audit partners (Exhibit 1). Whether Form AP will have a longterm impact on the performance of audits or the retention of auditors remains to be seen, but this first year of data provides a baseline for investors and others interested in understanding more about who leads the audits of public companies and whether this population will change over time. Jenna Burke, PhD, CPA, is an assistant professor at the University of Colorado Denver.

The heterogeneity of board-level sustainability committees and corporate social performance

Jenna J Burke, Rani Hoitash, Udi Hoitash
Journal of Business Ethics,Vol. 154, Issue 4, Pages: 1161-1186.
This paper explores an increasingly prevalent element of board-level commitment to sustainability. We propose a theoretical framework under which the existence and associated actions of board-level sustainability committees are motivated by shared value creation, where the interests of a diverse group of stakeholders are satisfied and sufficient profit is achieved. Using hand-collected data, we find that sustainability committees are heterogeneous in focus and vary in their effectiveness. Specifically, we disaggregate the sustainability committee construct based on stakeholder group focus (i.e., community, employee, environment, and consumer/supplier) and find that associations between sustainability committees and performance outcomes are stronger when committees focused on a specific stakeholder group are paired with relevant performance outcomes. We generally find that sustainability

Global talent management and performance in multinational enterprises: A multilevel perspective

David G Collings, Kamel Mellahi, Wayne F Cascio
Journal of Management,Vol. 45, Issue 2, Pages: 540-566.
The link between global talent management (GTM) and multinational enterprises’ (MNEs) performance has not been theorized or empirically tested. We develop a theoretical framework for how GTM links to performance at the headquarters (HQ), subsidiary, and individual employee levels. Using the resource-based view as a frame, we highlight the routines of pivotal positions, global talent pools, and a differentiated HR architecture as central to GTM. We show that at the HQ level, an MNE’s adoption of a global, multidomestic, or transnational strategy determines the objectives of the GTM system and significantly influences the performance of the enterprise. At the subsidiary level, the alignment between HQ intentions and subsidiary implementation of GTM routines is a key variable in our analysis. We consider the effects of these higher-level factors on individual performance through the lens of human-capital

Institutional quality and sovereign credit default swap spreads

Wei Huang, Shu Lin, Jian Yang
Journal of Futures Markets,
We examine how the quality of political, legal, and regulatory institutions impacts sovereign risk premia. An improvement in institutional quality significantly lowers a country’s sovereign credit default swap (CDS) spread, even after controlling for domestic and global macroeconomic factors. The incremental effect of institutional quality may also be economically important in explaining the variations in the level of sovereign CDS spreads. The basic results are robust to alternative model specifications, samples, control variables, measures of institutional quality, estimation methods, and controls for endogeneity. Overall, the evidence suggests that institutional quality may play a significant role in explaining sovereign CDS spreads.