Open Access. Powered by Scholars. Published by Universities.®

Business Commons

Open Access. Powered by Scholars. Published by Universities.®

2016

Series

Research Collection Lee Kong Chian School Of Business

Discipline
Keyword

Articles 31 - 60 of 131

Full-Text Articles in Business

Political Turnovers, Ownership, And Corporate Investment In China, Jerry X. Cao, Julio Brandon, Tiecheng Leng, Sili Zhou Oct 2016

Political Turnovers, Ownership, And Corporate Investment In China, Jerry X. Cao, Julio Brandon, Tiecheng Leng, Sili Zhou

Research Collection Lee Kong Chian School Of Business

We examine the impact of political influence and ownership on corporate investment by exploiting the unique way provincial leaders are promoted in China. The tournament-style promotion system creates incentives for new governors to exert influence over investment in the early years of their term. We find a divergence in investment rates between state owned enterprises (SOEs) and private firms following political turnover. SOEs increase investment by 6.0% following the turnover while investment rates for private firms decline, suggesting that the political influence exerted over SOEs may crowd out private investment.


Did The Sarbanes-Oxley Act Impede Corporate Innovation? An Analysis Of The Unintended Consequences Of Regulation, Cao, Jerry X., Aurobindo Ghosh, Choo Yong, Jeremy Goh, Feichin Ted Tschang (Or F. Ted Tschang) Oct 2016

Did The Sarbanes-Oxley Act Impede Corporate Innovation? An Analysis Of The Unintended Consequences Of Regulation, Cao, Jerry X., Aurobindo Ghosh, Choo Yong, Jeremy Goh, Feichin Ted Tschang (Or F. Ted Tschang)

Research Collection Lee Kong Chian School Of Business

We investigate whether innovation by publicly listed U.S. companies deteriorated significantly after the adoption of the Sarbanes-Oxley Act of 2002. Using data on patent filings as proxies for firms‟ innovative activities, we find firms‟ innovation as measured by patents and innovation efficiency dampened significantly after the enactment of the Act. The degree of impact is related to firm-specific characteristics such as the firm‟s value (Tobin‟s Q) and its measure of corporate governance (G-Index), as well as the firm‟s operating conditions (i.e., the firm being in an high-tech industry, and being delisted or not). We find evidence that the SOX‟s impact …


How To Revive Beauty Subscription Boxes In Asia, Shilpa Madan Oct 2016

How To Revive Beauty Subscription Boxes In Asia, Shilpa Madan

Research Collection Lee Kong Chian School Of Business

After being acquired by consumer goods behemoth Unilever for a whopping $1 billion, Dollar Shave Club became the indisputable poster child of the subscription economy era. So will the next Dollar Shave Club come from Asia?


Big Data And Data Science Methods For Management Research: From The Editors, Gerard George, Ernst C. Osinga, Dovev Lavie, Brent A. Scott Oct 2016

Big Data And Data Science Methods For Management Research: From The Editors, Gerard George, Ernst C. Osinga, Dovev Lavie, Brent A. Scott

Research Collection Lee Kong Chian School Of Business

The recent advent of remote sensing, mobile technologies, novel transaction systems, and high performance computing offers opportunities to understand trends, behaviors, and actions in a manner that has not been previously possible. Researchers can thus leverage 'big data' that are generated from a plurality of sources including mobile transactions, wearable technologies, social media, ambient networks, and business transactions. An earlier AMJ editorial explored the potential implications for data science in management research and highlighted questions for management scholarship, and the attendant challenges of data sharing and privacy (George, Haas & Pentland, 2014). This nascent field is evolving rapidly and at …


Word Power: The Impact Of Negative Media Coverage On Disciplining Corporate Pollution, Ming Jia, Li Tong,, P. V. Viswanath, Zhe Zhang Oct 2016

Word Power: The Impact Of Negative Media Coverage On Disciplining Corporate Pollution, Ming Jia, Li Tong,, P. V. Viswanath, Zhe Zhang

Research Collection Lee Kong Chian School Of Business

Sequences of individual words make up media reports. And sequences of media reports constitute the power of the news media to influence corporate practices. In this paper, we focus on the micro-foundations of news reports to elaborate how an atmosphere of negative news reports following an initial exposure of corporate pollution activity can help stop such activity through their impact on corporate managers. We extend our understanding of the corporate governance effect of news media by considering two new aspects of reports—one, the proportion of words in negative reports relative to the total number of words in all reports; and …


Does It Pay To Be Different? Relative Csr And Its Impact On Firm Value, David K. Ding, Christo Ferreira, Udomsak Wongchoti Oct 2016

Does It Pay To Be Different? Relative Csr And Its Impact On Firm Value, David K. Ding, Christo Ferreira, Udomsak Wongchoti

Research Collection Lee Kong Chian School Of Business

Conventional aggregation of Corporate Social Responsibility (CSR) raw scores and its interpreted impact on firm value have provided mixed evidence in the literature. We show that the value impact of CSR activities relies heavily on the industry-specific relative position of the firm. Only firms that distinguish themselves over their peers are associated with increased firm value. This finding is robust and holds for both responsible and irresponsible behaviors. Information concerns and portfolio construction can allude to a possible CSR clientele, suggesting the existence of an optimal CSR level. Our peer-effect results are robust to unobserved heterogeneity along the lines of …


Customer Acquisition And Retention Spending: An Analytical Model And Empirical Investigation In Wireless Telecommunications Markets, Sungwook Min, Xubing Zhang, Namwoon Kim, Rajendra K. Srivastava Oct 2016

Customer Acquisition And Retention Spending: An Analytical Model And Empirical Investigation In Wireless Telecommunications Markets, Sungwook Min, Xubing Zhang, Namwoon Kim, Rajendra K. Srivastava

Research Collection Lee Kong Chian School Of Business

Strategic resource allocation in growth markets is always a challenging task. This is especially true when it comes to determining the level of investments and expenditures for customer acquisition and retention in competitive and dynamic market environments. This study develops an analytical model to examine firms' investments in customer acquisition and retention for a new service; it develops hypotheses drawing on analytical findings and tests them with firm-level operating data of wireless telecommunications markets from 41 countries during 1999-2007. The empirical investigation shows that a firm's acquisition cost per customer is more sensitive to market position and competition than retention …


The Impact Of Power On Reliance On Feelings Versus Reasons In Decision Making, Yunhui Huang, Hannah H. Chang, Jiewen Hong Oct 2016

The Impact Of Power On Reliance On Feelings Versus Reasons In Decision Making, Yunhui Huang, Hannah H. Chang, Jiewen Hong

Research Collection Lee Kong Chian School Of Business

We examine the impact of power on consumer decision making. Results from four experiments provide converging evidence thatpeople in high- (low-) power states are more likely to rely on affective feelings (cognitive reasoning) in making judgments anddecisions.


Is Cash-Return Relation Risk Induced?, Chenxi Liu Oct 2016

Is Cash-Return Relation Risk Induced?, Chenxi Liu

Research Collection Lee Kong Chian School Of Business

Corporate cash holding is found to be able to predict stock return. Some scholars attribute this to the association of cash with systematic risk with respect to growth options. Others find that the relation is a mispricing effect. In this paper, I try to test whether the relation between cash and return is driven by systematic risk that captured by cash. The empirical results do not support the risk explanation of cash-return relation. First, the risk loading on CASH factor cannot predict returns, which is not consistent with rational frictionless asset pricing models. Second, CASH factor cannot reflect future GDP …


Data From A Pre-Publication Independent Replication Initiative Examining Ten Moral Judgement Effects, Warren Thierny, Martin Schweinsberg, Jennifer Jordan, Michael Schaerer Oct 2016

Data From A Pre-Publication Independent Replication Initiative Examining Ten Moral Judgement Effects, Warren Thierny, Martin Schweinsberg, Jennifer Jordan, Michael Schaerer

Research Collection Lee Kong Chian School Of Business

We present the data from a crowdsourced project seeking to replicate findings in independent laboratories before (rather than after) they are published. In this Pre-Publication Independent Replication (PPIR) initiative, 25 research groups attempted to replicate 10 moral judgment effects from a single laboratory’s research pipeline of unpublished findings. The 10 effects were investigated using online/lab surveys containing psychological manipulations (vignettes) followed by questionnaires. Results revealed a mix of reliable, unreliable, and culturally moderated findings. Unlike any previous replication project, this dataset includes the data from not only the replications but also from the original studies, creating a unique corpus that …


The Mediating Effect Of Absorptive Capacity And Relational Capital In Alliance Learning Of Smes, So-Jin Yoo, Olukemi Sawyerr, Wee Liang Tan Oct 2016

The Mediating Effect Of Absorptive Capacity And Relational Capital In Alliance Learning Of Smes, So-Jin Yoo, Olukemi Sawyerr, Wee Liang Tan

Research Collection Lee Kong Chian School Of Business

No business can create all the resources needed to prosper and grow. Collaboration among businesses that possess complementary resources is often necessary for survival and growth. Despite their importance and implications for alliance learning, no empirical study has to date attempted to investigate how the determinants of learning interact with each other, and are linked to the outcomes of alliance learning. This study contributes to the role of learning intent, absorptive capacity, and relational capital in enhancing learning activities and outcomes by empirically examining the relationships among these learning determinants and how they affect innovative SMEs’ technological and nontechnological learning …


Actions Speak Louder Than Words: Outsiders' Perceptions Of Diversity Mixed Messages, Leon Windscheid, Lynn Bowes-Sperry, Deborah L. Kidder, Ho Kwan Cheung, Michele Morner, Filip Lievens Sep 2016

Actions Speak Louder Than Words: Outsiders' Perceptions Of Diversity Mixed Messages, Leon Windscheid, Lynn Bowes-Sperry, Deborah L. Kidder, Ho Kwan Cheung, Michele Morner, Filip Lievens

Research Collection Lee Kong Chian School Of Business

To attract a gender diverse workforce, many employers use diversity statements to publicly signal that they value gender diversity. However, this often represents a misalignment between words and actions (i.e., a diversity mixed message) because most organizations are male dominated, especially in board positions. We conducted 3 studies to investigate the potentially indirect effect of such diversity mixed messages through perceived behavioral integrity on employer attractiveness. In Study 1, following a 2 x 2 design, participants (N = 225) were either shown a pro gender diversity statement or a neutral statement, in combination with a gender diverse board (4 men …


What 100,000 Tweets About The Volkswagen Scandal Tell Us About Angry Customers, Vanitha Swaminathan, Suyun Mah Sep 2016

What 100,000 Tweets About The Volkswagen Scandal Tell Us About Angry Customers, Vanitha Swaminathan, Suyun Mah

Research Collection Lee Kong Chian School Of Business

In September 2015 the Environmental Protection Agency found that many Volkswagen cars sold in the United States were equipped with software that could falsely improve the performance of diesel engines on emissions tests. This cheating was subsequently acknowledged by the car maker.Among the many issues at stake for the company was one of public perception. Anecdotal evidence at the time of the incident suggested irreparable harm to the Volkswagen brand. So could Volkswagen recover in the short term in this regard? And, the broader question, how can you measure brand perception in times of scandal, particularly in an era where …


Did Bp Atone For Its Transgressions? Expanding Theory Of “Ethical Apology In Crisis Communication, Audra Diers-Lawson, Augustine Pang Sep 2016

Did Bp Atone For Its Transgressions? Expanding Theory Of “Ethical Apology In Crisis Communication, Audra Diers-Lawson, Augustine Pang

Research Collection Lee Kong Chian School Of Business

Ethical communication during crisis response is often assessed by external perceptions of the organization's intentions, rather than an assessment of the organization's communicative behaviors. This can easily lead researchers to draw editorial conclusions about an organization's ethics in crisis response rather than accurately describing its communicative behaviors. The case of BP's 2010 oil spill in the Gulf of Mexico provides a prime example for the importance of accurately assessing the ethical content of an organization's crisis response because the ethics of BP's response have been discussed in news and academic sources; yet little direct examination of the ethical content in …


Textual Analysis And Machine Leaning: Crack Unstructured Data In Finance And Accounting, Li Guo, Feng Shi, Jun Tu Sep 2016

Textual Analysis And Machine Leaning: Crack Unstructured Data In Finance And Accounting, Li Guo, Feng Shi, Jun Tu

Research Collection Lee Kong Chian School Of Business

In finance and accounting, relative to quantitative methods traditionally used, textual analysis becomes popular recently despite of its substantially less precise manner. In an overview of the literature, we describe various methods used in textual analysis, especially machine learning. By comparing their classification performance, we find that neural network outperforms many other machine learning techniques in classifying news category. Moreover, we highlight that there are many challenges left for future development of textual analysis, such as identifying multiple objects within one single document.


Reassessing Board Member Allegiance: Ceo Replacement Following Financial Misconduct, David M. Gomulya, Warren Boeker Sep 2016

Reassessing Board Member Allegiance: Ceo Replacement Following Financial Misconduct, David M. Gomulya, Warren Boeker

Research Collection Lee Kong Chian School Of Business

Research summary: We examine how board members' reactions following financial misconduct differ from those following other adverse organizational events, such as poor performance. We hypothesize that inside directors and directors appointed by the CEO may be particularly concerned about their reputation following deceptive financial practices. We demonstrate that directors more closely affiliated with the CEO are more likely to reduce their support for the CEO following financial misconduct, increasing the likelihood of CEO replacement. Enactment of the Sarbanes-Oxley Act similarly alters governance dynamics by creating a greater expectation for sound corporate governance. We demonstrate our findings in U.S. public firms …


The Pipeline Project: Pre-Publication Independent Replications Of A Single Laboratory's Research Pipeline, Martin Schweinsberg, Nikhil Madan, Michelangelo Vianello, S.Amy Sommer, Jennifer Jordan, Et Al, Michael Schaerer Sep 2016

The Pipeline Project: Pre-Publication Independent Replications Of A Single Laboratory's Research Pipeline, Martin Schweinsberg, Nikhil Madan, Michelangelo Vianello, S.Amy Sommer, Jennifer Jordan, Et Al, Michael Schaerer

Research Collection Lee Kong Chian School Of Business

This crowdsourced project introduces a collaborative approach to improving the reproducibility of scientific research, in which findings are replicated in qualified independent laboratories before (rather than after) they are published. Our goal is to establish a non-adversarial replication process with highly informative final results. To illustrate the Pre-Publication Independent Replication (PPIR) approach, 25 research groups conducted replications of all ten moral judgment effects which the last author and his collaborators had “in the pipeline” as of August 2014. Six findings replicated according to all replication criteria, one finding replicated but with a significantly smaller effect size than the original, one …


Can Information Be Locked Up? Informed Trading Ahead Of Macro-News Announcements, Gennaro Bernile, Jianfeng Hu, Yuehua Tang Sep 2016

Can Information Be Locked Up? Informed Trading Ahead Of Macro-News Announcements, Gennaro Bernile, Jianfeng Hu, Yuehua Tang

Research Collection Lee Kong Chian School Of Business

Government agencies routinely allow pre-release access to information to accredited news agencies under embargo agreements. Using high-frequency data, we find evidence consistent with informed trading during embargoes of Federal Open Market Committee (FOMC) scheduled announcements. The E-mini Standard & Poor’s 500 futures’ abnormal order imbalances are in the direction of subsequent policy surprises and contain information that predicts the market reaction to the policy announcements. The estimated informed trades’ profits are arguably large. Notably, we find no evidence of informed trading prior to the start of FOMC news embargoes or during lockups ahead of nonfarm payroll, US Producer Price Index, …


Myopic Reactions To Performance Feedback: Different Decision Makers, Different Decisions, Henrich R. Greve, Cyndi Man Zhang Sep 2016

Myopic Reactions To Performance Feedback: Different Decision Makers, Different Decisions, Henrich R. Greve, Cyndi Man Zhang

Research Collection Lee Kong Chian School Of Business

The behavioral theory of the firm predicts that problemistic search and organizational change occurs after comparing performance with the aspiration level, and this prediction has been strongly supported. The bounded rationality assumption in the behavioral theory of the firm suggests that such search is often myopic. However, we still lack theory explaining the source of myopia and how myopia influences decision makers choosing search directions when performance feedback indicates a problem. In this study, we address the relationship between myopia and search direction. We develop theory on how decision maker cognitions and knowledge formed by their past experiences underlie coalitions …


Managing Emergency Department Crowding Through Improved Triaging And Resource Allocation, Kum Khiong Yang, Sean Shao Wei Lam, Joyce M. W. Low, Marcus Eng Hock Ong Sep 2016

Managing Emergency Department Crowding Through Improved Triaging And Resource Allocation, Kum Khiong Yang, Sean Shao Wei Lam, Joyce M. W. Low, Marcus Eng Hock Ong

Research Collection Lee Kong Chian School Of Business

Long waiting times in emergency departments (EDs) not only reduce patients’ perceived quality of care, but also increase crowding which can adversely affect patients’ outcomes. Waiting time has been found to affect patients’ outcomes and is closely associated with delays in the provision of ancillary services to ED patients by the diagnostic/treatment laboratories. The focus of this study is to improve the flow of ED patients by testing alternative triage processes and capacity of physicians, triage nurses and laboratories. Three alternative triage processes are examined for managing the flow of ED patients through shared and dedicated laboratories across different utilization …


Optimal Selection Of Distributed Energy Resources Under Uncertainty And Risk Aversion, Lajos Maurovich-Horvat, Bert De Reyck, Paula Rocha Aug 2016

Optimal Selection Of Distributed Energy Resources Under Uncertainty And Risk Aversion, Lajos Maurovich-Horvat, Bert De Reyck, Paula Rocha

Research Collection Lee Kong Chian School Of Business

The adoption of small-scale electricity generation has been hindered by uncertain electricity and gas prices. In order to overcome this barrier to investment, we develop a mean-risk optimization model for the long-term risk management problem of an energy consumer using stochastic programming. The consumer can invest in a number of generation technologies, and also has access to electricity and gas futures to reduce its risk. We examine the role of on-site generation in the consumer's risk management strategy, as well as interactions between on-site generation and financial hedges. Our study shows that by swapping electricity (with high price volatility) for …


The Impact Of The Potential Entry Of Copycats: Entry Conditions, Consumer Welfare, And Social Welfare, Sarah Y. Gao, Wei Shi Lim, Christopher Tang Aug 2016

The Impact Of The Potential Entry Of Copycats: Entry Conditions, Consumer Welfare, And Social Welfare, Sarah Y. Gao, Wei Shi Lim, Christopher Tang

Research Collection Lee Kong Chian School Of Business

This article examines the implications of the potential entry of a copycat who produces and sells a copycat (i.e., imitation) product that competes with the incumbent product. By analyzing a two-period dynamic noncooperative game between these two firms, we identify conditions under which the copycat can gain successful market entry. More importantly, we find that the potential entry of a copycat creates (implicit) pressure for the incumbent to lower its selling price; hence, it improves consumer welfare. Finally, we identify conditions under which the potential entry of a copycat can increase social welfare (i.e., consumer welfare and the profit of …


Pedagogical Advances In Business Models At Business Schools: In The Age Of Networks, Peter Lorange, Howard Thomas Aug 2016

Pedagogical Advances In Business Models At Business Schools: In The Age Of Networks, Peter Lorange, Howard Thomas

Research Collection Lee Kong Chian School Of Business

Purpose – The purpose of this paper is to focus on potential advances in pedagogy and on the process of learning in business schools. It examines innovations in teaching and learning methods particularly in the context of networked organizations. Design/methodology/approach – It approaches, and examine the impact of, three key developments in business schools, namely, recent advances in IT, changes in the architecture of classrooms and learning spaces and advances in the way teaching is undertaken. Findings – The paper suggests that a blend between self-learning via distance approaches and face-to-face learning will increasingly become the norm. Face-to-face sessions might …


Right Person In The Right Place: How The Host Country Ipr Influences The Distribution Of Inventors In Offshore R&D Projects Of Multinational Enterprises, Anand Nandkumar, Kannan Srikanth Aug 2016

Right Person In The Right Place: How The Host Country Ipr Influences The Distribution Of Inventors In Offshore R&D Projects Of Multinational Enterprises, Anand Nandkumar, Kannan Srikanth

Research Collection Lee Kong Chian School Of Business

Prior work has shown that the strength of the intellectual property regime (IPR) in a host country influences offshore R&D to that country. Building on this work we propose that the strength of the IPR in a host country differentially influences the threat of knowledge leakage on projects that are produced for the location where the multinational firm is headquartered (home) versus the offshore location to which the R&D project is sent (host). We argue and show that when the host location has a weak IPR, fewer host inventors are involved in host R&D projects when compared to home R&D …


Socially Responsible Firms, Allen Ferrell, Hao Liang, Luc Renneboog Aug 2016

Socially Responsible Firms, Allen Ferrell, Hao Liang, Luc Renneboog

Research Collection Lee Kong Chian School Of Business

In the corporate finance tradition starting with Berle & Means (1923), corporations should generally be run so as to maximize shareholder value. The agency view of corporate social responsibility (CSR) considers CSR as an agency problem and a waste of corporate resources. Given our identification strategy by means of an IV approach, we find that well-governed firms who suffer less from agency concerns (less cash abundance, positive pay-for-performance, small control wedge, strong minority protection) engage more in CSR. We also find a positive relation between CSR and value and that CSR attenuates the negative relation between managerial entrenchment and value.


Strategic Predisposition In Communication Management: Understanding Organizational Propensity Towards Bridging Strategy, Soojin Kim Aug 2016

Strategic Predisposition In Communication Management: Understanding Organizational Propensity Towards Bridging Strategy, Soojin Kim

Research Collection Lee Kong Chian School Of Business

Purpose – The purpose of this paper is to identify factors influencing an organization’s predisposition to bridging strategy, and tests relationships between those factors and bridging strategy. Design/methodology/approach – Online survey was conducted in South Korea. Hierarchical regression was used. Findings – Identified factors are environmental complexity, top management attitude toward stakeholders, analysis orientation, and authoritarian culture. Research limitations/implications – By adopting the concept and measures of bridging as an organization’s public-engagement strategy, this study was able to capture an organization’s strategic approach for problem-solving in communication management. Practical implications – Strong analysis orientation allows organizations to look into problems …


Governance And Post-Repurchase Performance, Gary Caton, Jeremy Goh, Yen Teik Lee, Scott Linn Aug 2016

Governance And Post-Repurchase Performance, Gary Caton, Jeremy Goh, Yen Teik Lee, Scott Linn

Research Collection Lee Kong Chian School Of Business

Payout policies based on share repurchase programs provide greater flexibility than do those based on cash dividends. We develop and test an empirical model in which strongly governed companies outperform weakly governed companies after announcing share repurchase programs. Our findings include positive associations between strong governance and both post-announcement adjusted operating performance and abnormal stock returns. The results are robust to sample selection bias, different sample criteria, governance measurement, and various control variables. In addition, governance strength is associated with larger post-announcement changes in CEO incentive compensation and merger and acquisition activity, both of which we argue are consistent with …


Contingent Value Of Director Identification: The Role Of Government Directors In Monitoring And Resource Provision In An Emerging Economy, Hongjin Zhu, Toru Yoshikawa Aug 2016

Contingent Value Of Director Identification: The Role Of Government Directors In Monitoring And Resource Provision In An Emerging Economy, Hongjin Zhu, Toru Yoshikawa

Research Collection Lee Kong Chian School Of Business

Although previous studies have explored the value of government directors, less attention has been directed at the antecedents of government directors' engagement in value-adding activities, such as managerial monitoring and resource provision. Drawing on social identity theory, we offer a novel model that specifies how a government director's dual identifications with the focal firm, and with the government individually and interactively affect his or her governance behavior. An investigation of government directors in China shows that their identification with the focal firm enhances monitoring and resource provision, while their identification with the government affects monitoring and resource provision differently. depending …


Validity And Reliability Of Situational Judgement Test Scores: A New Approach Based On Cognitive Diagnosis Models, Miguel A. Sorrel, Julio Olea, Francisco José Abad, Jimmy De La Torre, David Aguado, Filip Lievens Jul 2016

Validity And Reliability Of Situational Judgement Test Scores: A New Approach Based On Cognitive Diagnosis Models, Miguel A. Sorrel, Julio Olea, Francisco José Abad, Jimmy De La Torre, David Aguado, Filip Lievens

Research Collection Lee Kong Chian School Of Business

Conventional methods for assessing the validity and reliability of situational judgment test (SJT) scores have proven to be inadequate. For example, factor analysis techniques typically lead to nonsensical solutions, and assumptions underlying Cronbach's alpha coefficient are violated due to the multidimensional nature of SJTs. In the current article, we describe how cognitive diagnosis models (CDMs) provide a new approach that not only overcomes these limitations but that also offers extra advantages for scoring and better understanding SJTs. The analysis of the Q-matrix specification, model fit, and model parameter estimates provide a greater wealth of information than traditional procedures do. Our …


New Blood As An Elixir Of Youth: Effects Of Human Capital Tenure On The Explorative Capability Of Aging Firms, F. Ted Tschang, Gokhan Ertug Jul 2016

New Blood As An Elixir Of Youth: Effects Of Human Capital Tenure On The Explorative Capability Of Aging Firms, F. Ted Tschang, Gokhan Ertug

Research Collection Lee Kong Chian School Of Business

The relationship between firm age and innovation has been an enduring topic of interest. We contribute to this research by studying how the effect of firm age on the quality of explorative and exploitative innovations is affected by the firm-specific and industry tenure of the talent resources (employees) that the firm utilizes. We start with the baseline predictions that firm age is related to the development of better exploitative innovations and worse explorative innovations. However, the tenure of employees intervenes in these relationships, by way of bringing in new knowledge, mental models, and beliefs. We predict that longer firm-specific and …