Business Commons^™

The Social Media Industry: Where Is It Heading?, Yanli Zhang, Huy Will Nguyen, Young Hoon Jung, Isabelle Yi Ren

Department of Management Faculty Scholarship and Creative Works

The social media industry has entered a new stage with intensifying competition and heightened uncertainty about future directions. The purpose of this paper is to provide analyses of the current challenges and to identify industry-wide trends that may offer a roadmap for the future. This study identified five major trends in the current social media industry: 1) content is king, and that content is moving to visual; 2) artificial intelligence is key to competitive advantage; 3) network effects still matter, but business model innovation can overcome that barrier; 4) the need to broaden revenue sources; and 5) the strive for …

Global Leadership Is Shared Leadership: How Smart Global Leaders Build Cultures Of Collaboration To Drive Results And Get Things Done, Amber A. Johnson, Tina Huesing, James D. Ludema, Brett Hinds

Department of Management Faculty Scholarship and Creative Works

Globalization has changed the way we work. The nature of leadership must adapt as our organizations grow to encompass more geographies, cultures, languages, and ways of working. Shared leadership emerges in these complex environments as a means of managing the interdependency of boundary-spanning work; but enacting shared leadership means shifting the bases of power on which leaders historically relied. It may also require shifting organizational structure to accommodate more voices. Scholars and executives alike must adapt quickly to keep pace with the changes of our ever more global world.

How The Leading Chinese Real Estate Brokerage Transformed Into A Digital Platform Business, Yanli Zhang, Lixia Yao

Department of Management Faculty Scholarship and Creative Works

Purpose

In this article, we study how a Chinese real estate broker - Lianjia successfully transformed itself into Beike - China’s leading digital platform for housing transactions and services. We explain the motivation behind this platform transformation, how it turned out, and what are the lessons learned for other companies contemplating a platform transformation. Beike’s lessons are significant as they not only can help the companies achieve growth via platform transformation but also create social value by contributing to higher service quality in traditional service industries.

Design/methodology/approach

We draw upon comprehensive archival research into Beike, and our many years of …

B Corps’ Social Media Communications During The Covid-19 Pandemic: Through The Lens Of The Triple Bottom Line, Manveer Mann, Sang-Eun Byun, Whitney Ginder

Department of Marketing Faculty Scholarship and Creative Works

The COVID-19 pandemic and rising demand for transparency has heightened the importance of sustainability communications on social media to generate deeper stakeholder engagement. Although B Corporations (B Corps), businesses committed to the triple bottom line (TBL), could serve as a catalyst for sustainable development, little is known about how they communicate on social media during a crisis. Therefore, we examined social media communications of B Corps to (1) identify salient topics and themes, (2) analyze how these themes align with the TBL, and (3) evaluate social media performance against industry benchmarks. We focused on the apparel, footwear, and accessories (AFA) …

Turning Disruption Into Growth Opportunity: The Red Team Strategy, Sunny Li Sun, Yanli Zhang, Zhu Zhu

Department of Management Faculty Scholarship and Creative Works

The purpose of this paper is to propose a broadened and integrated red team strategy with concrete steps to help companies better deal with the disruptive forces prevalent in our world today and turn disruptions into growth. We suggest four key steps to help companies implement the red team strategy: 1) create a red team culture and encourage diverse perspectives, 2) establish an independent red team to overcome organizational inertia, 3) use the red team to embrace disruption and growth opportunities, and 4) take a milestone approach to red team execution and resource allocation. Our red team strategy provides concrete …

Aspirations Of Chinese Families-In-Business: Development Of A Reliable Measurement Instrument, Feifei Lu, Zhu Zhu, Xiaogang He

Department of Management Faculty Scholarship and Creative Works

Although previous studies have recognized the contingent nature of family firms’ aspirations, they have largely neglected cross-cultural heterogeneity. Drawing on the behavioral theory and socio-emotional wealth perspective (SEW), we reexamine the construct of family aspirations in a Chinese context. We argue that Chinese family firms have culturally specific aspirations that can influence their strategic behaviors. Based on a three-phase study employing both qualitative and quantitative methods, we develop and validate a measure of aspirations of Chinese families-in-business. Six dimensions of Chinese family aspirations are explored: family harmony, financial wealth, health and longevity, continuity of family line, family honor and guanxi, …

The Chief Project Officer: A New Executive Role For Turbulent Times, Te Wu, Zhu Zhu

Department of Management Faculty Scholarship and Creative Works

Purpose While it is common for most C-suite executives to have substantial project responsibilities, many do not have a strong understanding of project management leading to significant failures. As projects are the main mechanisms for implementing changes, project performance has disproportional impact on the competitiveness and viability of organizations. This paper aims to attempt to raise awareness of the Chief Project Officer (CPO) role and lay out important skills and capabilities that are needed for managers to ascend to this role as well as key topics of concern when preparing the mindset to be a successful CPO. Design/methodology/approach The authors …

Tree-Based Algorithm For Stable And Efficient Data Clustering, Hasan Aljabbouli, Abdullah Albizri, Antoine Harfouche

Department of Information Management and Business Analytics Faculty Scholarship and Creative Works

The K-means algorithm is a well-known and widely used clustering algorithm due to its simplicity and convergence properties. However, one of the drawbacks of the algorithm is its instability. This paper presents improvements to the K-means algorithm using a K-dimensional tree (Kd-tree) data structure. The proposed Kd-tree is utilized as a data structure to enhance the choice of initial centers of the clusters and to reduce the number of the nearest neighbor searches required by the algorithm. The developed framework also includes an efficient center insertion technique leading to an incremental operation that overcomes the instability problem of the K-means …

Family Ownership And Corporate Environmental Responsibility: The Contingent Effect Of Venture Capital And Institutional Environment, Zhu Zhu, Feifei Lu

Department of Management Faculty Scholarship and Creative Works

As scholars and policy makers pay more attention to the environmental impact of economic activities, more focus has been placed on the corporate environmental responsibility (CER) of family firms, which accounts for the majority of businesses in both developed and developing countries. Using a sample of 4714 private enterprises across 23 provinces in China, the current study examines the effect of family ownership on CER investment, as well as the moderating effects of venture capital investment and local institutional development. Results show that concentrated family ownership leads to lower CER spending, however, when venture capital investment comes from developed markets, …

Job Satisfaction And Firm Performance: Can Employees’ Job Satisfaction Change The Trajectory Of A Firm’S Performance?, Stacey R. Kessler, Lorenzo Lucianetti, Shani Pindek, Zhu Zhu

Department of Management Faculty Scholarship and Creative Works

Contemporary trends in business have focused on enhancing the employee work experience. Proponents argue that doing so will improve employees’ productivity and ultimately the firm's performance. However, critics argue that job satisfaction has only a modest relationship with an employee's job performance, and therefore, such an investment will likely have little impact on the firm's financial performance. To investigate the relationship between employees’ job satisfaction and firm performance, we collected a sample of 404 employees working in 31 firms. We tested this relationship using latent growth modeling which allows us to latently examine how employees’ job satisfaction at one time …

Emotional Intelligence, Psychological Safety, And Team Decision Making, Wencang Zhou, Zhu Zhu, Donald Vredenburgh

Department of Management Faculty Scholarship and Creative Works

Purpose As teamwork becomes more prevalent in organizational decision-making, the influence of emotional intelligence (EI) on team decision-making process demands more research attention. This study aims to investigate the impact of EI on team psychological safety and decision-making performance. Design/methodology/approach Team decision-making performance and decision quality from a team decision task were obtained from 54 decision-making teams composed of 241 undergraduate business students from a Mid-Atlantic university. Regression analyses were used to test individual and team’s EI relationship with team decision performance and the mediation effect of psychological safety. Findings This study provides empirical evidence that individual EI is positively …

Family Ownership And Corporate Environmental Responsibility: The Contingent Effect Of Venture Capital And Institutional Environment, Zhu Zhu, Feifei Lu

Department of Management Faculty Scholarship and Creative Works

As scholars and policy makers pay more attention to the environmental impact of economic activities, more focus has been placed on the corporate environmental responsibility (CER) of family firms, which accounts for the majority of businesses in both developed and developing countries. Using a sample of 4714 private enterprises across 23 provinces in China, the current study examines the effect of family ownership on CER investment, as well as the moderating effects of venture capital investment and local institutional development. Results show that concentrated family ownership leads to lower CER spending, however, when venture capital investment comes from developed markets, …

Motivating Reflection Habits And Raising Employee Awareness Of Learning, Michele Rigolizzo, Zhu Zhu

Department of Management Faculty Scholarship and Creative Works

Purpose While research has shown reflection is a valuable part of individual learning, developing reflection habits has remained notoriously difficult, particularly for working adults. We explore whether an intervention of being able to review previous reflections will affect employee engagement in future reflection activities and raise their awareness of learning opportunities at work. Design/methodology/approach We conducted a large-scale field experiment, including 136 employees from an international bank in Europe, in which participants were asked to reflect twice a week for eight weeks. Participants were randomly assigned to either a group that was given access to their previous reflections, or a …

The Effects Of Family Firm Ceo Traditionality On Successor Choice: The Moderating Role Of Socioemotional Wealth, Feifei Lu, Ho Kwong Kwan, Zhu Zhu

Department of Management Faculty Scholarship and Creative Works

Drawing on upper echelons theory, this study examines how the traditionality of family chief executive officers (CEOs) influences the selection of their successors, and how this relationship is moderated by two dimensions of socioemotional wealth. Recognizing the central role of CEOs in determining successors, we show that a family CEO’s cultural values regarding traditionality have a significant positive effect on the probability that a family member is chosen as successor. We find that this relationship is strengthened by the family members’ identification with the firm and weakened by the family members’ sense of dynasty. Our contributions to theory and practice …

Ready And Willing To Learn: Exploring Personal Antecedents To Taking On Learning Challenges, Michele Rigolizzo

Department of Management Faculty Scholarship and Creative Works

Purpose: The purpose of this paper is to examine the personal antecedents to taking on the challenge of learning, particularly when there is competition for time at work. Taking on challenging tasks, particularly those that enhance learning, is a critical behavior in today’s dynamic business environments. This paper explores how individual differences motivate people to choose a challenging task over an easy one. Design/methodology/approach: A behavioral measure was used to determine if working adults higher in learning goal orientation, curiosity, and need for cognition were more likely to take on a challenging task, even when there was competition for their …

Is There Social Consensus Regarding Researcher Conflicts Of Interest?, Zeynep G. Aytug, Hannah R. Rothstein, Mary C. Kern, Zhu Zhu

Department of Management Faculty Scholarship and Creative Works

Consensus around what constitutes researcher conflicts of interest (COIs) and awareness of their influence on our research are two critical steps in ensuring the integrity of our science. In this research, data were collected from individual scholars via 2 surveys 5 years apart and from journals and associations to examine the level of social consensus and moral awareness among scholars, journals, and associations regarding researcher COIs. Although we observed increases in level of social consensus and moral awareness between 2012 and 2017, results still revealed limited agreement about what relationships constitute a COI and limited awareness about the presence of …

Do Local Protestant Values Affect Corporate Cash Holdings?, Huajing Hu, Yili Lian, Wencang Zhou

Department of Management Faculty Scholarship and Creative Works

This study examines how local Protestant belief, as one type of social norms, affects corporate cash policies. We find that firms located in areas with more Protestants hold less cash reserves. The influence of local Protestant belief on cash holdings is more profound for firms with weak corporate governance and firms with one geographic segment. In addition, we find that the difference in cash deployment is reflected in the difference in firms’ investment and payout policies. Overall, our study shows that local Protestant belief is an important factor in determining corporate cash policies and helps to mitigate the potential free …

Pattern Versus Level: A New Look At The Personality-Entrepreneurship Relationship, Wencang Zhou, Xi Yang, Yuanqing Li, Yanli Zhang

Department of Management Faculty Scholarship and Creative Works

Purpose: By using a nontraditional configuration approach, the purpose of this paper is to examine the effect of personality on entrepreneurial intention and success. Previous research has focused on why individuals become entrepreneurs and why some are more successful than others. However, most studies have investigated only single factors or primary personality traits. The current study investigates not only the strength of the personality-entrepreneurship link, but also clarifies the nature of the relationship. Design/methodology/approach: Using two independent samples and an innovative regression-based pattern recognition procedure, the study investigates whether the nature of the personality-entrepreneurship relationship is driven by individuals’ absolute …

Abuses And Penalties Of A Corporate Tax Inversion, James G.S. Yang, Leonard J. Lauricella Professor, Frank J. Aquilino

Department of Accounting and Finance Faculty Scholarship and Creative Works

There is a serious problem in international taxation today. Many United States (U.S.) multinational corporations have moved abroad to take advantage of a lower tax rate in a foreign country. As a consequence, the tax base in the U.S. has been seriously eroded. This practice is known as “corporate tax inversion”. This paper discusses the abuses and penalties of this phenomenon. It is rooted in some deficiencies in the U.S. tax law. This paper points out that the U.S. has the highest corporate tax rate in the world. It imposes tax on worldwide income. It permits deferral of tax on …

Is Cyberloafing More Complex Than We Originally Thought? Cyberloafing As A Coping Response To Workplace Aggression Exposure, Stephanie A. Andel, Stacey Kessler, Shani Pindek, Gary Kleinman, Paul E. Spector

Department of Management Faculty Scholarship and Creative Works

Employees spend approximately 2 h per day engaging in cyberloafing (i.e., using the internet at work for nonwork purposes) behaviors, costing organizations almost $85 billion dollars per year. As a result, cyberloafing is often considered a counterproductive type of withdrawal behavior. However, recent research suggests that cyberloafing may have some unexpected positive workplace outcomes. Therefore, we argue that the role of workplace cyberloafing is more complex than previously assumed and posit that cyberloafing may provide employees with a way to cope with workplace stress such as exposure to workplace aggression. To examine this proposition, we used a heterogeneous sample of …

Information Security Climate And The Assessment Of Information Security Risk Among Healthcare Employees, Stacey Kessler, Shani Pindek, Gary Kleinman, Stephanie A. Andel, Paul E. Spector

Department of Management Faculty Scholarship and Creative Works

Since 2009, over 176 million patients in the United States have been adversely impacted by data breaches affecting Health Insurance Portability and Accountability Act–covered institutions. While the popular press often attributes data breaches to external hackers, most breaches are the result of employee carelessness and/or failure to comply with information security policies and procedures. To change employee behavior, we borrow from the organizational climate literature and introduce the Information Security Climate Index, developed and validated using two pilot samples. In this study, four categories of healthcare professionals (certified nursing assistants, dentists, pharmacists, and physician assistants) were surveyed. Likert-type items were …

Building Business Models Through Simple Rules, Sunny Li Sun, Jianqiang Xiao, Yanli Zhang, Xia Zhao

Department of Management Faculty Scholarship and Creative Works

Purpose: How do entrepreneurs use simple rules to build their business models? Based on an inductive study of three Chinese Internet and technology firms, the authors find that business models emerge from simple rules that entrepreneurs learn from their experience. Simple rules also guide entrepreneurs to actualize and exploit opportunities in the marketplace, and they can help business models evolve through market feedback, especially in internationalization. This paper aims to delve into the black box of entrepreneurial decision-making and offer a better depiction of the business model development process in uncertain and fast-changing environments and thus provide guidance for future …

Subjectivity Of Diamond Prices In Online Retail: Insights From A Data Mining Study, Stanislav Mamonov, Tamilla Triantoro

Department of Information Management and Business Analytics Faculty Scholarship and Creative Works

Diamonds belong to a unique product category whose perceived value is largely dependent on socially constructed beliefs. To explore the degree to which the physical properties of a diamond can be used to predict the diamond price, we perform data mining on a large dataset of loose diamonds scraped from an online diamond retailer. We find that diamond weight, color and clarity are the key characteristics that influence diamond prices. The data mining results also suggest a high degree of subjectivity in diamond pricing that may reflect price obfuscation strategies employed by diamond retailers.

The Emerging International Taxation Problems, James G. Yang, Victor N.A. Metallo

Department of Accounting and Finance Faculty Scholarship and Creative Works

The problems of tax evasion and tax avoidance are as old as taxes themselves. Between 2015 and 2016 alone, many U.S. multinational corporations were involved in tax disputes with the European Commission. From a historical perspective, these disputes are unprecedented as they have resulted in tremendous amount of tax penalties. The most notable case was Apple for €13 billion of unpaid tax. This article discusses what tax strategies these corporations used that caused such disputes. It specifically investigates seven corporations: Apple Inc., McDonald’s, Starbucks, Fiat, Amazon, Google, and Ikea, and elaborates on the following tax strategies: high royalties, intercompany transfer …

The Labs (Learning As Behaviors) Framework For Higher-Order Learning, Michele Rigolizzo

Department of Management Faculty Scholarship and Creative Works

Purpose: The purpose of this paper is to contribute to greater conceptual clarity on the topic of higher-order learning, and to enable its potential empirical measurement. It includes a framework to show how this ability is developed by engaging in specific learning behaviors, each of which constitutes its own level of learning. Design/methodology/approach: Three criteria are used to develop the framework. Each learning behavior should lead to a change in long-term memory, should have empirical support for leading to a defined learning outcome, and should be applicable to workplace learning. Findings: The Learning As Behaviors (LABS) framework presents three novel …

Institutional Fragility And Outward Foreign Direct Investment From China, Weilei Stone Shi, Sunny Li Sun, Daying Yan, Zhu Zhu

Department of Management Faculty Scholarship and Creative Works

We develop the concept of institutional fragility to investigate the outward foreign direct investment (OFDI) behavior of firms from emerging economies. When different dimensions of institutions are not progressing at the same pace, internal friction and conflict arise during institutional development. Such fragility could push a firm to escape its home country as a strategic response. Using a sample of 578,360 Chinese firm-year observations over a 10-year period, we find that institutional fragility at the provincial level is associated with increased OFDI decision. This relationship is weaker when firms have high productivity or have been controlled by state with high …

How Shared Leadership And Team Personality Composition Interact To Improve Entrepreneurial Team Performance: Evidence From China, Wencang Zhou, Yanli Zhang, Yali Shen

Department of Management Faculty Scholarship and Creative Works

Purpose: The purpose of this paper is twofold: first, to explore the contingency effects of personality composition on the shard leadership and entrepreneurial team performance relationship and second, to examine different contingency effects that team personality mean score and team personality diversity have on the shared leadership – entrepreneurial team performance relationship, using the person-team fit theory and the Big-5 framework. Design/methodology/approach: The sample consisted of 200 entrepreneurial teams in a technology incubator founded in 2009 in eastern China. Data were collected through an online survey. Findings: Team conscientiousness level and team openness to experience diversity were found to interact …

When Does Shared Leadership Matter In Entrepreneurial Teams: The Role Of Personality Composition, Wencang Zhou

Department of Management Faculty Scholarship and Creative Works

Although prior research has investigated a number of conditions under which shared leadership in teams may improve team performance, team composition variables have been left unexplored. Using a sample of 144 teams in a technology incubator in China, this study explored the moderating effects of personality diversity on the relationship between shared leadership and entrepreneurial team performance. Results indicate that shared leadership improves entrepreneurial team performance; the strength of the relationship, however, depends on the level of team personality diversity. More specifically, when relationship-oriented personality diversity is high, the shared leadership—team performance relationship is stronger. These findings advance research in …

The Treatment Of Six Sigma In Introductory Operations Management Textbooks: Clearing Up The Confusion, Handanhal Ravinder, Ram B. Misra

Department of Management Faculty Scholarship and Creative Works

This paper critically examines the treatment of the statistical basis for Six Sigma and process capability in popular operations management textbooks. It discusses areas of confusion and suggest ways of treating the topic that make sense to instructors as well as students. Even though Six Sigma was introduced almost 30 years ago, misconceptions persist. In the textbooks we have found no consistency of approach or understanding of the statistical underpinnings (3.4 defects per million opportunities) of Six Sigma. Sometimes statements are made that are factually incorrect and cause frustration for students and instructors. Similar difficulties are encountered in discussions of …

Does Organizational Learning Lead To Higher Firm Performance? An Investigation Of Chinese Listing Companies, Wencang Zhou, Huajing Hu, Xuli Shi

Department of Management Faculty Scholarship and Creative Works

Purpose – The purpose of this paper is to develop a framework for studying organizational learning, firm innovation and firm financial performance. Design/methodology/approach – This paper examines the effects of organizational learning on innovation and performance among 287 listed Chinese companies. Findings – The results indicate a positive association between organizational learning dimensions and firm performance (both objective financial performance and perceptual innovation measure). Research limitations/implications – The sample includes only firms for which secondary data are available. Different results might have been obtained if we include smaller, private firms into the sample. This paper only includes a limited number …