Information Systems

Methodological triangulation using neural networks for business research

Steven Walczak
Advances in Artificial Neural Systems, January 2012, # 1

Artificial neural network (ANN) modeling methods are becoming more widely used as both a research and application paradigm across a much wider variety of business, medical, engineering, and social science disciplines. The combination or triangulation of ANN methods with more traditional methods can facilitate the development of high-quality research models and also improve output performance for real world applications. Prior methodological triangulation that utilizes ANNs is reviewed and a new triangulation of ANNs with structural equation modeling and cluster analysis for predicting an individual’s computer self-efficacy (CSE) is shown to empirically analyze the effect of methodological triangulation, at least for this specific information systems research case. A new construct, engagement, is identified as a necessary component of CSE models and the subsequent triangulated ANN models are able to achieve an 84% CSE group prediction accuracy.

Entrepreneurship

The University of Colorado certificate program in bioinnovation and entrepreneurship: an interdisciplinary, cross-campus model

Madhavan Parthasarathy, David Forlani, Arlen Meyers
Journal of Commercial Biotechnology, Vol. 18 Issue 1, January 2012, pp. 70-78.

In keeping with an emerging literature on the role of business education in the
development of entrepreneurially-intentioned biotechnologists, this paper describes the actions and experiences of an entrepreneurship program that began in the late 1990’s. Along the way it illustrates how a business-centric approach can shift the budding entrepreneur’s perspective from a product to a market orientation when considering an innovation’s commercialization. While the developmental timeline and specific stages of …

Business Analytics

A computational study on the quadratic knapsack problem with multiple constraints

Haibo Wang, Gary Kochenberger and Fred Glover
Computers & Operations Research, Vol. 39, Issue 1, Pages 3–11

The quadratic knapsack problem (QKP) has been the subject of considerable research in recent years. Despite notable advances in special purpose solution methodologies for QKP, this problem class remains very difficult to solve. With the exception of special cases, the state-of-the-art is limited to addressing problems of a few hundred variables and a single knapsack constraint.

In this paper we provide a comparison of quadratic and linear representations of QKP based on test problems with multiple knapsack constraints and up to eight hundred variables. For the linear representations, three standard linearizations are investigated. Both the quadratic and linear models are solved by standard branch-and-cut optimizers available via CPLEX. Our results show that the linear models perform well on small problem instances but for larger problems the quadratic model outperforms the linear models tested both in terms of solution quality and solution time by a wide margin. Moreover, our results demonstrate that QKP instances larger than those previously addressed in the literature as well as instances with multiple constraints can be successfully and efficiently solved by branch and cut methodologies.

Marketing

The Eyes Have It: How a Car’s Face Influences Consumer Categorization and Evaluation of Product Line Extensions

Susan M. Keaveney, Andreas Herrmann,
Rene Befurt, and Jan R. Landwehr
Psychology and Marketing Vol. 29, Issue 1, pages 36–51

This research focuses on a previously unexamined risk associated with the widely used new product development strategy of line extensions. Specifically, it explores consumer reactions when line extensions become too visually similar and examines both short-term and longer term strategies for solving the problem. Examined in the context of consumer durables, specifically, automobiles, the results show that consumers who make categorization mistakes when trying to distinguish between two visually similar product lines have more negative attitudes not only toward the product but also toward the parent brand. The results of Study 1 confirm that providing a design vocabulary that articulates the car’s design features is effective in reducing consumer’s categorization mistakes. In addition, results of Study 2 indicate that changes to the car’s “eyes” (headlights) are more effective than changes to the car’s “mouth” (grille) in helping consumers to differentiate among cars in the line.

Accounting

Lessons learned: advantages and disadvantages of mixed method research

Mary A. Malina, Hanne S.O. Nørreklit, and Frank H. Selto
Qualitative Research in Accounting & Management, Vol. 8 Iss: 1, pp.59 – 71

Purpose – The purpose of this paper is first, to discuss the theoretical assumptions, qualities, problems and myopia of the dominating quantitative and qualitative approaches; second, to describe the methodological lessons that the authors learned while conducting a series of longitudinal studies on the use and usefulness of a specialized balanced scorecard; and third, to encourage researchers to actually use multiple methods and sources of data to address the very many accounting phenomena that are not fully understood.

Design/methodology/approach – This paper is an opinion piece based on the authors’ experience conducting a series of longitudinal mixed method studies.

Findings – The authors suggest that in many studies, using a mixed method approach provides the best opportunity for addressing research questions.

Originality/value – This paper provides encouragement to those who may wish to bridge the authors’ ideological gaps and to those who are actively trying to do so.

Management

When is ignorance bliss? The effects of inaccurate self-assessments of knowledge on learning and attrition

Traci Sitzmann and Stefanie K. Johnson
Organizational Behavior and Human Decision Processes, Vol. 117, Issue 1, Pages 192–207

Two studies were conducted to examine the implications of inaccurate self-appraisals in online training. Self-assessment of knowledge moderated the effects of trainees’ performance on subsequent performance and attrition. Performance was highest after uniformly positive ratings (i.e., high self-assessment and high performance), followed by underestimation, overestimation, and uniformly negative ratings, respectively. Attrition was lowest after uniformly positive ratings, followed by underestimation, uniformly negative ratings, and overestimation, respectively. Effort had a more positive effect on performance following low than high self-assessments and this interaction fully mediated the self-assessment/performance interaction on subsequent performance. Commitment had a more negative effect on subsequent attrition following low than high self-assessments and this interaction fully mediated the self-assessment/performance interaction on subsequent attrition. Finally, trainee conscientiousness affected their behavior when their performance and self-assessments were inconsistent—overestimating and underestimating performance increased attrition more for trainees low in conscientiousness and impaired performance more for trainees high in conscientiousness.

Information Systems

Audience gatekeeping in the Twitter service: An investigation of tweets about the 2009 Gaza conflict

K Hazel Kwon, Onook Oh, Manish Agrawal, H Raghav Rao
AIS Transactions on Human-Computer Interaction,Vol. 4, Issue 4, Pages: 212-229.

Twitter is a social news service in which information is selected and distributed by individual members of the tweet audience. While communication literature has studied traditional news media and the propagation of information, to our knowledge there have been no studies of the new social media and their impacts on the propagation of news during extreme event situations. This exploration attempts to build an understanding of how preexisting hyperlink structures on the Web and different types of information channels …
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Business Analytics

Polynomial unconstrained binary optimisation ? Part 2

Fred Glover, Jin-Kao Hao, and Gary Kochenberger
International Journal of Metaheuristics Vol. 1, Num. 4, Pages: 317-354

The class of problems known as quadratic zero-one (binary) unconstrained optimisation has provided access to a vast array of combinatorial optimisation problems, allowing them to be expressed within the setting of a single unifying model. A gap exists, however, in addressing polynomial problems of degree greater than 2. To bridge this gap, we provide methods for efficiently executing core search processes for the general polynomial unconstrained binary (PUB) optimisation problem. A variety of search algorithms for quadratic optimisation can take advantage of our methods to be transformed directly into algorithms for problems where the objective functions involve arbitrary polynomials. Part 1 of this paper (Glover et al., 2011) provided fundamental results for carrying out the transformations and described coding and decoding procedures relevant for efficiently handling sparse problems, where many coefficients are 0, as typically arise in practical applications. In the present part 2 paper, we provide special algorithms and data structures for taking advantage of the basic results of part 1. We also disclose how our designs can be used to enhance existing quadratic optimisation algorithms.

Finance

Reaching for the stars: the appointment of celebrities to corporate boards

Stephen P. Ferris, Kenneth A. Kim, Takeshi Nishikawa and Emre Unlu
International Review of Economics Vol. 58, Issue 4, Pages: 337-358

For a sample of over 700 celebrity appointments to corporate boards of directors over the period 1985–2006, we find positive excess market returns at the time of their announcement. The 1-, 2-, and 3-year long-run performance of the appointing firms provide corroborating evidence of the value of these appointments. We conclude that the appointment of celebrities as directors increase a firm’s visibility in a fashion consistent with Merton’s (J Finance 42:483–510, 1987) investor recognition hypothesis.

Management

An examination of the relationship between training comprehensiveness and organizational commitment: Further exploration of training perceptions and employee attitudes

Kyle Ehrhardt, Janice S. Miller, Sarah J. Freeman, and Peter W. Hom
Human Resource Development Quarterly,Vol. 22, Issue 4, Pages 459-489

For organizations, the value of employing highly committed individuals is well documented. Accordingly, scholars have endeavored to identify factors that may influence employees’ organizational commitment. One factor that has received growing attention in this regard is individuals’ perceptions of training offered by an organization. However, despite increased scrutiny over the past decade, the precise nature of the relationship between employee training perceptions and organizational commitment remains unclear. Consequently, in this study we use social exchange theory as a foundation to examine the relationship between perceptions of training comprehensiveness and organizational commitment among individuals serving on cross-functional product development teams within numerous large manufacturing firms. Results of a multilevel regression analysis support a direct relationship between perceived training comprehensiveness and organizational commitment. Additionally, whether individuals specifically chose to participate on a product development team moderated this relationship, but not in the expected direction. We discuss implications of study findings for both research and practice.
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Finance

U.S. Monetary Policy Surprises and International Securitized Real Estate Markets

Pisun Xu and Jian Yang
The Journal of Real Estate Finance and Economics, Vol. 43, Issue 4
This paper examines the impact of U.S. monetary policy surprises on securitized real estate markets in 18 countries. The policy surprises are measured by both the surprise changes to the target federal funds rate (the target factor) and surprises in the future direction of the Federal Reserve monetary policy (the path factor). The results show that most international securitized real estate markets have significantly positive responses to surprise decrease in current or future expected federal funds rates, though such responses vary greatly across countries. Also, while the U.S. securitized real estate market reacts mainly to the target factor, foreign securitized real estate markets react to the path factor. Furthermore, we find that the cross-country variation in the response to the target factor is correlated with the country’s exchange rate regime and its degree of real economic and particularly financial integration, while the cross-country variation in the response to the path factor is mainly related to the country’s degree of financial integration.

Sustainability

A Simple Path to Sustainability: Green Business Strategies for Small and Medium-sized Businesses

Andreas, Frederick, Elizabeth S. Cooperman, Blair Gifford, and Graham Russell, eds.
ABC-CLIO, 2011.

Simple Path to Sustainability: Green Business Strategies for Small and Medium-Sized Businesses is designed specifically to help smaller enterprises share in the benefits that flow from sustainability. Built around case histories showcasing 12 small to medium-size enterprises (SMEs) that have outstanding records of sustainability, this unique, hands-on guide will help readers choose and develop sustainability strategies and undertake the marketing and management initiatives necessary for success.

The studies collected here detail each company’s journey from initial idea through building a new culture, engaging stakeholders, gaining competitive advantage, and planning for the future. Each study also covers the challenges encountered, successes and failures, and lessons learned. Cases are centered around distinct themes, including a marketing/public relations perspective, a risk management perspective, an organizational culture perspective, and a new product development perspective. Taken as a whole, these stories do more than inform. They will inspire managers to become green entrepreneurs, undertaking sustainable strategies that can reap surprising benefits.

Management

The Detrimental Effects of Power on Confidence, Advice Taking, and Accuracy

Kelly E. See, Elizabeth W. Morrison, Naomi B. Rothman, and Jack B. Soll
Organizational Behavior and Human Decision Processes,  November 2011

Incorporating input from others can enhance decision quality, yet often people do not effectively utilize advice. We propose that greater power increases the propensity to discount advice, and that a key mechanism explaining this effect is elevated confidence in one’s judgment. We investigate the relationships across four studies: a field survey where working professionals rated their own power and confidence and were rated by coworkers on their level of advice taking; an advice taking task where power and confidence were self-reported; and two advice taking experiments where power was manipulated. Results consistently showed a negative relationship between power and advice taking, and evidence of mediation through confidence. The fourth study also revealed that higher power participants were less accurate in their final judgments. Power can thus exacerbate the tendency for people to overweight their own initial judgment, such that the most powerful decision makers can also be the least accurate.

Finance

Household Search Choice: Theory and Evidence

Yosef Bonaparte and Frank J. Fabozzi
Applied Economics Volume 43, Issue 26, pp. 3835-3847

Since the work by Stigler (1961) on the economics of information in the early 1960s, economists have paid closer attention to the role of search for information. However, search methods are not considered in the theory of portfolio choice. We present a model of investor search behaviour in order to provide a framework by which to evaluate our empirical evidence on the role of search in portfolio selection and performance. We study two types of search methods: informal and professional. We show that the income, wealth and risk preference of households influence their search choice.

Finance

Linear and Nonlinear Predictablity of International Securitized Real Estate Returns: A Reality Check

Juan Cabrera, Tao Wang, and Jian Yang
Journal of Real Estate, Vol. 33, Num., Pages: 565-594
This paper examines the short-horizon return predictability of the ten largest international securitized real estate markets, paying special attention to possible nonlinearity-in-mean as well as nonlinearity-in-variance predictability. Although international securitized real estate returns are generally not predictable based on commonly-used statistical criteria, there is much evidence for the predictability based on economic criteria (i.e., direction of price changes and trading rule profitability), which is more often due to nonlinearity-in-mean. The forecast combinations for various models appear to improve the forecasting performance, while the allowance of data-snooping bias using White’s reality check substantially mitigates spurious out-of-sample forecasting performance and weakens otherwise overwhelmingly strong predictability. Overall, there is robust evidence for the predictability in many international securitized real estate markets.

Risk Management

Efficiency changes around mergers in the US property-liability insurance industry: a data envelopment analysis

Jeungbo Shim
The Journal of Business and Economic Studies,Vol. 17, Issue 2, Pages: 77.

This paper investigated the relationship between mergers & acquisitions (M & A) and efficiency change in the US property-liability insurance industry for the years 1990-2004. The cost, revenue, pure technical, scale, and allocative efficiency were estimated using data envelopment analysis (DEA). The empirical results revealed that acquirers’ overall cost and revenue efficiency declined following M & As. This finding implied that M & A has the potential to create inefficiencies, perhaps due to scale diseconomies and post- …
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Finance

A reassessment of the excess return phenomenon for initial public offerings of common stock

Glenn A Wolfe, Elizabeth S Cooperman
Journal of Applied Business Research (JABR),Vol. 6, Issue 1, Pages: 40-50.

This study examines the relationship between underpricing for new issues of common stock and issue size (offer price and number of shares) after controlling for an issues risk. Both risk and offer price are found to be significant factors in explaining underpricing. Offer price dominates as an explanatory variable in cold issue markets, while risk dominates in hot issue markets.
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Finance

BOND MARKET REACTION TO STOCK REPURCHASES: IS THERE A WEALTH TRANSFER EFFECT?

Takeshi Nishikawa, Andrew K. Prevost, and Ramesh P. Rao
Journal of Financial Research Vol. 34, Issue 3, pages 503–522

We reexamine the bondholder wealth impact of stock repurchases with a focus on the wealth transfer effect. We do not detect any transfer of wealth from bondholders to shareholders surrounding open market stock repurchases. For the overall sample (1994–2002), using daily data we document a significant decrease in bond yields surrounding repurchase announcements. Subsamples classified by attributes that capture wealth transfer propensity also do not reveal evidence consistent with a wealth transfer effect. Correlation analysis between bond and stockholder wealth effects similarly is not supportive of a wealth transfer effect. Contrary to the wealth transfer hypothesis, we document a greater proportion of bond rating upgrades than downgrades in the three months following a repurchase announcement. Our results are robust to alternate bond price data and event return methodology.

Management

Exploring entrepreneurial fulfillment for women in India: An empirical study

V. Kanti Prasad , G. M. Naidu , Kyle Ehrhardt , Doan E. Winkel and B. Kinnera Murthy
Journal of Enterprising Culture,Vol. 19, Issue 03, pp. 287-314

Drawing on social feminist theory, Indian cultural precepts, and previous research, we explore factors which may influence entrepreneurial fulfillment for women entrepreneurs in India. Results of a hierarchical regression analysis suggest that numerous network characteristics, as well as perceptions of family support, each contribute to a sense of entrepreneurial fulfillment for Indian women entrepreneurs. These factors furthermore each contributed to entrepreneurial fulfillment beyond the influence of the financial performance of the venture. Implications for understanding women entrepreneurs in emerging economies are discussed, as are practical implications for both women entrepreneurs and policy makers. We additionally present directions for future research.
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Business Analytics

Missteps in Multiple Regression Student Projects: Beyond Association-Not-Causation

Marlene A Smith
The American Statistician,Vol. 65, Issue 3, Pages: 190-197.

This article describes common yet subtle errors that students make in self-designed multiple regression projects, based on experiences in a graduate business statistics course. Examples of common errors include estimating algebraic identities, overlooking suppression, and misinterpreting regression coefficients. Advice is given to instructors about helping students anticipate and avoid these common errors; recommended tactics include extensive written guidelines supplemented with in-class active-learning exercises. …
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University of Colorado Denver Business School