Journal Articles

Tuck faculty members publish their research in the world's best peer-reviewed journals.

Articles authored by Tuck professors may be found via the Tuck faculty directory or on the personal faculty websites. To locate a professor's profile, visit the Faculty Directory.

Selected Recent Papers

Sanctioning in the Wild: Rational Calculus and Retributive Instincts in Gourmet Cuisine
Giada Di Stefano, Andrew A. King and Gianmario Verona, Academy of Management Journal, June 2015
Why do we sanction norm violations? Despite near universal agreement on the role of sanctions for maintaining norms of cooperation, scholars hotly dispute whether individuals sanction based on a rational calculus or because of strong retributive instincts. In this paper we report on a mixed-method field study examining sanctioning behavior. Our goal is to extend theories of sanctioning by evaluating the conditions under which individuals are more likely to administer a sanction in response to a norm violation. To guide the development of our hypotheses, we engage in a qualitative examination of sanctioning decisions in the context of gourmet cuisine. We then test our predictions in a field experiment involving more than 500 gourmet chefs in Italy. Our results suggest that individuals follow retributive instincts, but they also engage in cost–benefit calculations. Indeed, we find that the two logics of sanctioning jointly influence participation in social exchange. Recognizing their own tendency to sanction at a cost, individuals avoid circumstances that could trigger the need for costly sanctions. Read the paper.

Factoryless Goods Producing Firms
Andrew B. Bernard & Teresa C. Fort. American Economic Review, May 2015
This paper documents the existence and characteristics of US firms that do not manufacture themselves, but nonetheless are heavily involved in the production of goods. These factoryless goods producing firms (FGPFs) are formally in the wholesale sector but, unlike traditional wholesale firms, FGPFs design the goods they sell and coordinate production activities. FGPFs in the wholesale sector are larger and younger, pay higher wages, span more sectors and had more manufacturing employment in previous years compared to traditional wholesalers. FGPFs are more likely to import than typical wholesalers, though their imports constitute a smaller share of their total domestic activity. Read the paper.

Yesterday’s Heroes: Compensation and Risk at Financial Firms
Ing-Haw Cheng, Harrison Hong & Jose Scheinkman, Journal of Finance, April 2015
Many believe that compensation, misaligned from shareholders’ value due to man- agerial entrenchment, caused financial firms to take risks before the financial crisis of 2008. We argue that, even in a classical principal-agent setting without entrenchment and with exogenous firm risk, riskier firms may offer higher total pay as compensation for the extra risk in equity stakes borne by risk-averse managers. Using long lags of stock price risk to capture exogenous firm risk, we confirm our conjecture and show that riskier firms are also more productive and more likely to be held by institutional investors, who are most able to influence compensation. Read the paper.

Popularity, Similarity, and the Network Extraversion Bias
Daniel C. FeilerAdam M. Kleinbaum, Psychological Science. April 2015
Using the emergent friendship network of an incoming cohort of students in an M.B.A. program, we examined the role of extraversion in shaping social networks. Extraversion has two important implications for the emergence of network ties: a popularity effect, in which extraverts accumulate more friends than introverts do, and a homophily effect, in which the more similar are two people’s levels of extraversion, the more likely they are to become friends. These effects result in a systematic network extraversion bias, in which people’s social networks will tend to be overpopulated with extraverts and underpopulated with introverts. Moreover, the most extraverted people have the greatest network extraversion bias, and the most introverted people have the least network extraversion bias. Our finding that social networks were systematically misrepresentative of the broader social environment raises questions about whether there is a societal bias toward believing other people are more extraverted than they actually are and whether introverts are better socially calibrated than extraverts. Read the paper.

Real Options Logic Revisited: The Performance Effects of Alternative Resource Allocation Regimes
Ronald Klingebiel and Ron Adner, Academy of Management Journal, March 2015
We delineate three dimensions of resource allocation behavior that allow us to distinguish between real options logic and alternative resource allocation regimes: sequencing, low initial commitment, and reallocation. We then measure these in a product innovation context to test for the performance effect of real options logic vis-à-vis its alternatives. Sequencing, which distinguishes dynamic allocation regimes more generally, is associated with higher new product sales. Low initial commitment and reallocation do not show individual direct effects on new product sales. However, when assessed as a match, we find that the fit between low initial commitment and reallocation (yes–yes; no–no) increases performance significantly. After controlling for such fit as well as sequencing, we find no significant performance difference between real options logic and other regimes. Our findings imply that insufficient identification of real options logic picks up confounding effects, which may provide an explanation for the inconclusive results in prior studies of real options and performance. In addition to bounding the concept more precisely, we contribute to theory by situating real options logic within the broader set of allocation regimes conducive to innovation performance in uncertain, competitive markets. Read the paper.

An Altercentric Perspective on the Origins of Brokerage in Social Networks: How Perceived Empathy Moderates the Self-Monitoring Effect
Adam M. Kleinbaum, Alexander H. Jordan, and Pino G. AudiaOrganization Science, March 2015
Social structure matters in organizational life, but our understanding of the origins of social network structure remains limited. In this paper, we observe that the literature on individual differences and social networks focuses almost exclusively on ego’s views of herself and of her network. Our approach complements this egocentric perspective with a more altercentric view, in which others’ perceptions of and reactions to ego’s personality and relational behavior shape the structure of ego’s network. Our altercentric perspective builds on earlier evidence that the construct of self-monitoring is associated with brokerage, but it suggests that the effect of self-monitoring on brokerage is amplified in those perceived as highly empathic and attenuated in those perceived as lower in empathy. A mechanism that underlies this effect is the greater propensity of others to reciprocate the social interactions of high-empathy, high self-monitors than those low in empathy. We find support for these predictions in a study of the dynamic emergence of a social network among a complete cohort of MBA students and conclude that alters are active agents in the formation of ego’s network. Read the paper.

An Interproduct Competition Model Incorporating Branding Hierarchy and Product Similarities Using Store-Level Data
Praveen K. Kopalle, Sudhir Voleti, and Pulak Ghosh, Management Science, February 2015
We develop and implement a Bayesian semiparametric model of demand under interproduct competition that enables us to assess the respective contributions of brand-SKU (stock keeping unit) hierarchy and interproduct similarity to explaining and predicting demand. To incorporate brand-SKU hierarchy effects, we use Bayesian hierarchical clustering inherent in a nested Dirichlet process to simultaneously partition brands, and SKUs conditional on brands, into groups of “similarity clusters.” We examine cluster memberships and postprocess the Markov chain Monte Carlo output to infer cluster properties by accounting for parameter uncertainty. Our proposed approach lends to a spatial competition interpretation in latent attribute space and helps uncover the extent to which competition across SKUs in the latent attribute space is local or global. In a related vein, we discuss the implications of well-defined groups of similar SKUs as subcategory or submarket boundaries in latent attribute space. We empirically test our model using aggregate beer category sales data from a midsize U.S. retail chain. We find that branding hierarchy effects dominate those from product similarity. We find that the model partitions the 15 brands in the data into 4 brand clusters and the 96 SKUs into 25 SKU clusters conditional on brand cluster membership. In estimating a set of models of spatial interproduct competition, we find that SKU competition is more local than global in that only subsets of products compete within groups of comparable products. Finally, we discuss the substantive implications of our results. Read the paper.

Investment Decisions of Nonprofit Firms: Evidence from Hospitals
Katharina Lewellen, Anant Sundaram, and Manuel Adelino, Journal of Finance, January 2015
This paper examines investment choices of nonprofit hospitals. It tests how shocks to cash flows caused by the performance of the hospitals’ financial assets affect hospital expenditures. Capital expenditures increase, on average, by 10–28 cents for every dollar received from financial assets. The sensitivity is similar to that found earlier for shareholder owned corporations. Executive compensation, other salaries, and perks do not respond significantly to cash flow shocks. Hospitals with an apparent tendency to overspend on medical procedures do not exhibit higher investment‐cash flow sensitivities. The sensitivities are higher for hospitals that appear financially constrained. Read the paper.

Finding Your Niche in a Complex Marketplace

A new analytic model by professor Ron Adner offers a more nuanced and powerful tool to examine strategic positioning.

Read the article »