Research Highlights

Winter 2016

"Technology and Production Fragmentation: Domestic versus Foreign Sourcing"
Review of Economic Studies, August 2016
Teresa Fort, assistant professor of business administration, analyzes the relation between technology and firms’ global sourcing strategies. Her findings suggest that technology lowers coordination costs, though its effect is disproportionately higher for domestic rather than foreign sourcing.

"Geographic Dispersion of Economic Shocks: Evidence from the Fracking Revolution"
American Economic Review, forthcoming
Erin Mansur, the Revers Professor of Business Administration, examines the effects of the horizontal drilling and hydrofracturing boom in oil and natural gas production in the U.S. and how the technological shift interacted with local economies to create exogenous shocks to income and employment. His work finds that new oil and gas extraction increased aggregate U.S. employment by as many as 640,000 jobs, implying a 0.43 percentage point decrease in the unemployment rate during the Great Recession assuming no general equilibrium effects.

"The Role of Big Data and Predictive Analytics in Retailing"
Journal of Retailing, forthcoming
Praveen Kopalle, associate dean for the MBA program and the Signal Companies’ Professor of Management, examines the opportunities in and possibilities arising from big data in retailing, particularly along five major data dimensions—data pertaining to customers, products, time, (geo-spatial) location, and channel. He discusses the relevance and uses of Bayesian analysis techniques, predictive analytics, and field experiments. In addition, he examines the ethical and privacy issues that may arise from the use of big data in the retail context.

"Extending Industry Specialization through Cross-Border Acquisitions"
Review of Financial Studies, forthcoming
Gordon Phillips investigates the role of industry specialization in horizontal cross-border mergers and acquisitions. He finds that acquirers from more specialized industries in a country are more likely to buy foreign targets in countries that are less specialized in these same industries. His results are consistent with an internalization motive for foreign acquisitions, through which acquirers can apply localized intangibles on foreign assets.

"Conglomerate Industry Choice and Product Language"
Management Science, forthcoming
Gordon Phillips analyzes the words that firms use to describe their products to examine the determinants of which industries conglomerate firms operate within. His findings show that most conglomerates are not truly diversified, since most firms that operate across multiple industries choose industries with high language overlap and potential synergies.

“When Bigger is Better (and When it is Not): Implicit Bias in Numeric Judgments”
Journal of Consumer Research, forthcoming
Ellie Kyung, associate professor of business administration, and co-authors analyze the notion of “bigger-is-better” and the culturally determined numerical association embedded in memory. Her research demonstrates that these strong associations between numeric direction and quality become entrenched in one’s automatic, implicit memory, and thereby spontaneously bias judgments about a product, person, or situation that has been rated using a rating system with an opposite rating polarity.

"The Necessity, Logic, and Forms of Replication"
Strategic Management Journal, November 2016
Constance Helfat, the J. Brian Quinn Professor in Technology and Strategy, discusses different types of replication studies, comparing replications with other approaches to cumulating knowledge and providing guidelines toward producing high-quality replication studies. Her work shows that replication studies can help to establish the range of applicability of prior studies and better support what implications can be drawn for managerial practice.

“How Well Does Consumer-Based Brand Equity Align with Sales-Based Brand Equity and Marketing Mix Response?”
Journal of Marketing, forthcoming
Kusum Ailawadi, the Charles Jordan 1911, Tu'12 Professor of Marketing, studies the extent to which consumer-based brand equity (CBBE) manifests itself in sales-based brand equity (SBBE) and marketing mix response using 10 years of data for 290 brands spanning 25 packaged good categories. Her work uncovers a fairly strong positive association of SBBE with three dimensions of CBBE—relevance, esteem, and knowledge—but a slight negative correspondence with the fourth dimension, energized differentiation.

 

“Managing Multi- and Omni-Channel Distribution: Metrics and Research Directions”
Journal of Retailing, forthcoming
Kusum Ailawadi presents a framework and the metrics—both old and new—that suppliers and retailers should monitor and that academic researchers should incorporate in their models. Her article lays out the important questions that multi- and omni-channel marketers are grappling with, refers the reader to what existing academic research has to say about them, and suggests how future research can build off this framework and metrics to supplement what is known and address what is not.

“Reorganization and Tie Decay Choices”
Management Science, forthcoming
Adam Kleinbaum, associate professor of business administration, examines the impact of tie decay choices in the evolution of networks. When opportunity structures get reorganized, social actors make choices about which ties to retain and which to allow to decay, informed by their past experience of those ties. Kleinbaum argues that conditional on changes in opportunity, people choose to retain ties to valuable contacts, reciprocated ties, and socially embedded ties.

"Rethinking Deindustrialization”
Economic Policy, forthcoming
Andrew Bernard, the Jack Byrne Professor of International Economics, looks at whether we are measuring deindustrialization properly and what the implications are for understanding the future path of an advanced economy. His findings emphasize that the focus on employment at manufacturing firms overstates the loss in manufacturing-related capabilities that are actually retained in many firms that switch industries.

 

“Global Firms”
Journal of Economic Literature, forthcoming
Andrew Bernard and coauthors develop a new theoretical framework for internationally traded firms to decide whether to export to foreign markets. Since trade is dominated by a few “global firms,” the new framework allows firms to have large market shares and to decide simultaneously on the set of production locations, export markets, input sources, products to export, and inputs to import. Using U.S. transactions data, the authors offer strong evidence in support of the framework's main predictions.

Fall 2016

"Occupational Survival Through Task Integration: Systems Men, Production Planners, and the Computer, 1940s-1990s"
Organization Science, October 2016
Steven Kahl, associate professor of business administration, examines how occupational groups survive the introduction of a new technology and associated jurisdictional changes. His comparative historical analysis shows that taking an integrative approach with other occupations at the field level can help occupations survive long term.

"Text-Based Network Industries and Endogenous Product Differentiation"
Journal of Political Economy, October 2016
Gordon Phillips, the C.V. Starr Foundation Professor, studies how firms differ from their competitors using new time-varying measures of product similarity based on text-based analysis of firm 10-K product descriptions.

"Technology Scalability and Endogenous Market Segmentation”
Strategy Science, September 2016
Ron Adner, professor of strategy and entrepreneurship, examines competitive strategy and where firms choose to position themselves within an industry by characterizing when generalists desegment markets, and when they are “stuck in the middle” because they are outcompeted by specialists.

"Financing and New Product Decisions of Private and Publicly Traded Firms"
The Review of Financial Studies, Forthcoming
Gordon Phillips, the C.V. Starr Foundation Professor, and co-author exploit Medicare national coverage reimbursement approvals as a quasi-natural experiment to investigate how the financing decisions of private and publicly traded firms respond to changes in investment opportunities. Phillips’ research finds that publicly traded companies increase their external financing, and their subsequent product introductions, by more than private companies in response to national coverage approvals.

"Inferring Quality from Wait Time"
Management Science, October 2016
Laurens Debo, associate professor of business administration, and co-author studied the impact of wait time on consumers’ purchasing behavior when product quality is unknown to some consumers (“uninformed consumers”) but known to others (“informed consumers”). Debo’s research found that uninformed consumers’ purchasing probability during short wait times decreases in the presence of informed consumers, and relatively few informed consumers suffice to create this effect.

Summer 2016

"Technology and Production Fragmentation: Domestic versus Foreign Sourcing"
Review of Economic Studies, August 2016
Teresa Fort, assistant professor of business administration, analyzes the relation between technology and firms’ global sourcing strategies. Her findings suggest that technology lowers coordination costs, though its effect is disproportionately higher for domestic rather than foreign sourcing.

"Strategic Communication in the C-Suite"
International Journal of Business Communication, Forthcoming
In a working paper for the International Journal of Business Communication, professor of corporate communication Paul Argenti explores the ways in which C-suite executives are using corporate communications to execute strategy. He discusses the shift from a tactical and superficial focus on speeches and media placements to a more strategic and elevated level. “Given that strategic approaches to communication are much more important in organizations than ever before, we as academics have an obligation to help the business leaders of tomorrow find ways to be more effective communicators and leaders,” says Argenti.

"The Companies That Narcissists Are Attracted To"
The Sydney Morning Herald, August 2016
A study co-authored by Alexander Jordan, adjunct assistant professor of business administration, finds that people with narcissistic tendencies are more likely to support hierarchies. The study was co-authored with Emily Zitek of the Cornell School of Industrial and Labor Relations.

"How Credit Constraints Impact Job Finding Rates, Sorting & Aggregate Output"
Equitable Growth, June 2016
In a working paper for the Washington Center for Equitable Growth, C.V. Starr Professor Gordon Phillips and two co-authors examine how credit access affects displaced workers. Their findings indicate that an increase in credit limits allows individuals to take .15 to 3 weeks longer to find a job. That extra time allows them to find more lucrative and more productive employment.

“Why the Dynamics of Competition Matter for Category Profitability"
Journal of Marketing, Forthcoming
Praveen Kopalle, associate dean for the MBA program and the Signal Companies’ Professor of Management, and co-authors discuss the widespread trade practice of category management, presenting a competition framework that reconciles cross-sectional breadth (large numbers of SKUs in any given period) with longitudinal depth (demand effects across time).

"How Costly Is Corporate Bankruptcy for the CEO?"
Journal of Financial Economics, March 2016
B. Espen Eckbo, the Tuck Centennial Professor of Finance, and co-authors Karin Thorburn, visiting professor of finance, and Wei Wang, associate professor at Smith School of Business, examine CEO career and compensation changes for firms filing for Chapter 11. Eckbo's research found that the likelihood of leaving decreases with profitability and CEO share ownership. Furthermore, creditor control rights during bankruptcy (through debtor-in-possession financing and large trade credits) are associated with CEO career change. The research also found that despite large equity losses, the median incumbent does not reduce his stock ownership as the firm approaches bankruptcy.

"Are There Environmental Benefits from Driving Electric Vehicles? The Importance of Local Factors"
American Economic Review, Forthcoming
Erin Mansur, the Revers Professor of Business Administration, and co-authors combine a theoretical discrete-choice model of vehicle purchases, an econometric analysis of electricity emissions, and the AP2 air pollution model to estimate the geographic variation in the environmental benefits from driving electric vehicles. Mansur's research found that geographically differentiated subsidies can reduce deadweight loss, but only modestly.

"The Impact of Consumer Credit Access on Employment, Earnings, and Entrepreneurship"
National Bureau of Economic Research, July 2016
On July 18, Gordon Phillips, the C.V. Starr Foundation Professor, presented his paper, “The Impact of Consumer Credit Access on Employment, Earnings, and Entrepreneurship,” at a conference in Cambridge, Massachusetts, organized by the National Bureau of Economic Research. Phillips’ research looks at the effect of increased credit access after bankruptcy events are removed from individuals’ credit reports. He has found that increased credit access leads to higher earnings, more borrowing, and greater rates of entrepreneurship.

"When Remembering Disrupts Knowing: Blocking Implicit Price Memory"
Journal of Marketing Research, Forthcoming
Research by Ellie Kyung, associate professor of business administration, finds that contrary to previous research findings and popular consumer belief, attempting to remember old prices for products in order to compare prices across time can actually backfire, making consumers less accurate in their comparative price decisions. Kyung’s paper looks at the mechanics of why this occurs and how to overcome this effect.

"Reflections on Customer-Based Brand Equity: Perspectives, Progress, and Priorities"
AMS Review, May 2016
In "Reflections on Customer-Based Brand Equity: Perspectives, Progress, and Priorities,” Kevin Lane Keller, the E. B. Osborn Professor of Marketing, reflects back on his 1993 paper, “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity,” explaining how the 1993 paper was developed and highlighting some of its main contributions—such as a comprehensive bridge between the theory and practice of branding.

"Saving the Masses: The Impact of Perceived Efficacy on Charitable Giving to Single vs. Multiple Beneficiaries"
Organizational Behavior and Human Decision Processes, June 2016
Much evidence suggests that it is not easy to increase giving to groups of people because giving is driven by emotional concern, which is muted for multiple beneficiaries. "Saving the Masses: The Impact of Perceived Efficacy on Charitable Giving to Single vs. Multiple Beneficiaries," by Eesha Sharma, assistant professor of business administration, shows that by enhancing perceived efficacy, organizations can increase both emotional concern and giving to multiple beneficiaries.