Business Commons^™

Because You’Re Worth The Risks: Acts Of Oppositional Courage As Symbolic Messages Of Relational Value To Transgender Employees, Christian Thoroughgood, Katina Sawyer, Jennica R. Webster

Management Faculty Research and Publications

Achieving greater social equity in organizations often depends on majority members taking risks to challenge the status quo on behalf of their colleagues with stigmatized identities. But, how do employees enact courageous behavior in this regard, and what are the social implications of these courageous acts on stigmatized group members who witness them at work? To begin examining these questions, we conducted 4 studies using qualitative and quantitative data collected from 428 transgender employees. Drawing on the core principles of sociometer theory, we argue that these acts of oppositional courage serve an important symbolic function in the eyes of transgender …

Leadership As An Art: An Enduring Concept Framed Within Contemporary Leadership, Jay L. Caulfield, Felissa K. Lee, Bret A. Richards

Management Faculty Research and Publications

Purpose

The aim of this viewpoint paper is to refine the meaning of “leadership as an art” in the context of wicked (complex) social problems and in the realm of contemporary leadership research and practice.

Design/methodology/approach

In this paper we explore the meaning of “leadership as an art,” a concept often alluded to but rarely defined concretely. The authors examine the concept by comparing artistic and scientific knowledge paradigms, identifying descriptors of the “leadership as art” concept appearing in the literature and illustrating key attributes of the “leadership as art” concept with real-world examples.

Findings

Leadership as an art is …

Signaling Green: Investigating Signals Of Expertise And Prosocial Orientation To Enhance Consumer Trust, Stacie F. Waites, Jennifer L. Stevens, Tyler Hancock

Marketing Faculty Research and Publications

Prior research has established the positive effect of green marketing on purchase intentions. Less well known is why. Two empirical studies were conducted to investigate trust as an important mediator explaining the relationship between green marketing and purchase intentions. In study one, we successfully replicate prior research, again finding higher purchase intentions for companies that engage in green marketing. Additionally, trust in the company was found to mediate this relationship. Study two then examines the underlying mechanisms of expertise and prosocial orientation on the relationship between green marketing and trust, and then serially to purchase intentions. Demographic boundary conditions of …

The Role Of Top Management Teams In Firm Responses To Performance Shortfalls, Kalin Kolev, Gerry Mcnamara

Management Faculty Research and Publications

Past research rooted in the Behavioral Theory of the Firm has extensively examined the impact of performance feedback on organizational change and risk taking, finding robust effects that performance shortfalls enhance the risk taking of firms. We argue that the strength of this effect is likely to be contingent on the attributes of the firm’s top management team. To enhance our understanding of which firms are more likely to be sensitive to performance cues, we draw on the Upper Echelon Theory to theorize that key structural attributes of the top management team—tenure and gender diversity, size, and pay disparity—affect how …

Determinants And Consequences Of Internal Audit Functions Within Colleges And Universities, Steven Desimone, Kevin Rich

Accounting Faculty Research and Publications

Purpose

The purpose of this paper is to identify factors associated with the presence and use of internal audit functions (IAFs) at US colleges and universities, as well as their relationship with financial reporting quality and federal grant outcomes.

Design/methodology/approach

Using a combination of publicly available and manually collected data, this paper uses a two-stage model to examine both the factors associated with the use of IAFs within US institutions of higher education and the consequences therein.

Findings

Results indicate that institutions with larger enrollments and endowments, those that receive public funding and those that have an audit committee are …

Fight Or Flee: Outside Director Departures Prior To Contested Management Buyout Offers, Matteo Arena, Michaël Dewally, Sarah Peck

Finance Faculty Research and Publications

Research Question/Issue: We investigate outside director departures prior to management buyout offers (MBOs). In these transactions, managers have both an information advantage and incentives to make a lowball offer to shareholders. Outside directors can safeguard against managerial self‐dealing by negotiating for the best terms for public shareholders from either management or another bidder. Research Findings/Insights: It is typical that outside directors stay on the board through an MBO offer as MBOs are less likely to have changes in directors—either joining or leaving—relative to a control sample. After controlling for endogeneity as well as firm and director characteristics, we find that …

Reflections About Professor Robert F. Lusch: Friend, Co-Author And Marketing Visionary, Gene Laczniak

Marketing Faculty Research and Publications

This personal commentary offers some brief reflections about the late Professor Robert F. Lusch. These insights are offered by someone who knew him for many decades as a friend, colleague and co-author.

Finding Calm In The Storm: A Daily Investigation Of How Trait Mindfulness Buffers Against Paranoid Cognition And Emotional Exhaustion Following Perceived Discrimination At Work, Christian Thoroughgood, Katina Sawyer, Jennica R. Webster

Management Faculty Research and Publications

Although much is known about the harmful effects of perceived discrimination on employees’ psychological wellbeing, surprisingly few studies have examined why some individuals with stigmatized identities are able to rise above and overcome the effects of prejudicial work events. To address this gap in the literature, we integrate existing theory and research on workplace discrimination, mindfulness, and paranoid cognition to develop and test a dynamic, within-person moderated mediation model that explains why some employees are able to interrupt the process through which perceptions of discrimination lead to emotional exhaustion the next workday. Specifically, an experience sampling study conducted over two …

How Do Firms That Are Changing The World Engage Politically?, Kathleen Rehbein, Ronei Leonel, Frank Den Hond, Frank De Bakker

Management Faculty Research and Publications

The objective of this study is to contribute conceptually and empirically to the discussion about when firms attempt to align their political efforts with their social goals and how this alignment affects their financial performance, an area currently still under-explored. The empirical context for our analysis focuses on companies that have been singled out due to their efforts to emphasize “shared value” defined as integrating competitive and social policies. The specific research questions that we shed light on in this study include: What have been the types of political efforts that these firms singled out in the pursuit of their …

When Time Is Sales: The Impact Of Sales Manager Time Allocation Decisions On Sales Team Performance, Adam Rapp, J. Andrew Petersen, Douglas E. Hughes, Jessica Ogilvie

Marketing Faculty Research and Publications

Sales managers often take on the dual responsibilities of managing a sales team and selling to customers. This practice raises questions about how sales managers' time allocation to managing and selling activities affects sales team performance. Building on qualitative findings, this research first highlights and categorizes activities that are regularly competing for the limited time resources of today's sales managers. Our qualitative results reveal a prevalence of sales managers taking a "hybrid" approach to managing their sales teams by regularly allocating time toward both managing and selling activities. Through a resource allocation lens, we investigate how the time allocation decisions …

Shareholder Coordination And Corporate Innovation, Ani Manakyan Mathers, Bin Wang, Xiaohong Wang

Finance Faculty Research and Publications

We show that greater shareholder coordination, as proxied by the geographic proximity between institutional investors, is positively related to corporate innovation outcomes. This relationship is driven by coordination among dedicated and independent institutions who have strong monitoring incentives and is more pronounced among firms with lower blockholder ownership and greater information asymmetry where there is greater benefit to monitoring. We propose that shareholder coordination promotes corporate innovation through a reduction in managerial agency problems. Overall, our results are consistent with the notion that greater shareholder coordination enables diffuse shareholders to monitor managers more effectively and enhances corporate innovation.

Board Demography And Divestitures: The Impact Of Gender And Racial Diversity On Divestiture Rate And Divestiture Returns, Kalin Kolev, Gerry Mcnamara

Management Faculty Research and Publications

Drawing on resource dependence theory and group diversity research, this paper examines how board gender and racial diversity impact corporate divestitures. We argue that due to the diverse experiences, knowledge, and perspectives that female and racial minority directors bring to the boardroom, it is more difficult and time-consuming for the board to reach a consensus and pursue a common course of action. Consistent with this argument, our results indicate that board gender and racial diversity lead to longer divestiture completion times and a lower divestiture rate. Additionally, we argue that due to their cognitive heterogeneity, diverse boards likely exchange a …

Resolving Complex Community Problems: Applying Collective Leadership And Kotter's Change Model To Wicked Problems Within Social System Networks, Jay L. Caulfield, Elizabeth F. Brenner

Management Faculty Research and Publications

How does collective leadership within social networks resolve chronic and complex problems common to communities? Unfortunately, sometimes it does not, but when it does, the outcome may be truly extraordinary. We use a case study approach to explain how one Midwest community within the USA applied collective leadership within a community network to reduce teen births. It took ten years of what many identified as provocative media campaigns and comprehensive sex education programs to reduce teen births by 65%, significantly exceeding the stated goal. Using Kotter's change model as a backdrop, powerful strategies and provocative creativity reveal courageous leadership within …

When Sales Becomes Service: The Evolution Of The Professional Selling Role And An Organic Model Of Frontline Ambidexterity, Douglas E. Hughes, Jessica Ogilvie

Marketing Faculty Research and Publications

Building on new theoretical foundations in the professional selling domain, growing bodies of research on frontline ambidexterity, and an increasingly demanding and dynamic frontline role, this article advances frontline ambidexterity through three focal goals. We first provide an in-depth discussion of the evolution of the professional selling role. This foundation allows us to identify and explore the implications of a market-driven model of ambidexterity that can manifest organically within certain professional selling contexts. In so doing, we espouse a new model of individual-level ambidexterity—organic frontline ambidexterity. Next, we discern existing models of frontline ambidexterity (characterized as inorganic) and compare these …

Early Termination Of Small Loans In The Multifamily Mortgage Market, Anthony Pennington-Cross, Brent C. Smith

Finance Faculty Research and Publications

This article uses micro‐level data on small (as defined by Fannie Mae) multifamily loans in the Fannie Mae loan portfolio to examine prepayment and default performance. The results document the importance of equity, as measured by the loan‐to‐value ratio, and contemporaneous property operating income relative to debt service obligations, as measured by the debt‐to‐income ratio. Our results indicate that the expiration of prepayment penalties and yield maintenance provisions lead to large spikes in prepayment and default. The results also illustrate that multifamily loans, as they are not fully amortized, also have a substantial risk of both extension and default at …

The Differential Role Of Job Demands In Relation To Nonwork Domain Outcomes Based On The Challenge-Hindrance Framework, Jennica R. Webster, Gary A. Adams

Management Faculty Research and Publications

The purpose of this study was to meta-analytically test a novel theoretical model examining a dual stressor and dual process model relating demands in the work domain to outcomes in the nonwork domain. The foundation for this model rested upon the challenge-hindrance framework and the role depletion and role enhancement perspectives derived from role theory as applied to the work-nonwork interface. The results show mixed support for the proposed model. In line with the challenge-hindrance framework the effects of challenge stressors were less detrimental than hindrance stressors. However, contrary to what has been reported for work domain outcomes, the net …

The Ethicality Of Point-Of-Sale Marketing Campaigns: Normative Ethics Applied To Cause-Related Checkout Charities, Jay L. Caulfield, Catharyn Baird, Felissa K. Lee

Management Faculty Research and Publications

“Would you like to contribute to XYZ charity by adding a dollar to your bill today?” Point-of-sale campaigns for fundraising are common to grocery stores, pharmacies, restaurants and warehouse clubs. Commonly referred to as ‘checkout charity,’ these fundraisers have generated over $4.1 billion in contributions for nonprofits over the past three decades. Yet little research has focused on the ethicality of this type of campaign. To address this need, we analyze the issue using behavioral ethics (moral identity and emotional triggers of behavior) and normative theory (consequentialism, deontology, and virtue ethics). We consider three stakeholder perspectives, including the nonprofit initiating …

Treat Me Well And I May Leave You Kindly: A Configurational Approach To A Buyer's Relationship Exit Strategy, Farooq Habib, Marko Bastl, Antonios Karatzas, Carlos Mena

Management Faculty Research and Publications

Research shows that the choice of relationship exit strategy by the instigator of exit can have significant negative consequences for the party that is being dropped. In this study we focus on what we coin as kind exit, where the risk of harm to the supplier as a result of the buyer's relationship termination is low. In line with current research, which is suggesting that the characteristics of a buyer-supplier relationship play a critical role in the instigator's choice of exit strategy, we examine the link between the buyer's perception of its relationship with the supplier and the manner in …

How To Develop Successful And Ethical Investment Analysts: Marquette University's Applied Investment Management Program, Matteo Arena, David K. Krause

Finance Faculty Research and Publications

Purpose

The purpose of this paper is to suggest best practices for managing a successful student-managed investment program (SMIP) based on the experience of Marquette University's Applied Investment Management (AIM) program.

Design/methodology/approach

The authors provide a detailed description of the program curriculum, instructional design, fund structure, program history, fund performance and student outcomes.

Findings

Through its experiential learning innovations, focus on ethics and close relationships with a dedicated alumni group, the AIM program prepares students for a successful career in investment analysis. Students who graduate from the AIM program experience a significantly higher successful placement rate and higher compensation at …

Children And Online Privacy Protection: Empowerment From Cognitive Defense Strategies, J. Craig Andrews, Kristen L. Walker, Jeremy Kees

Marketing Faculty Research and Publications

At present, very little is known about what might encourage children and teens to limit access to their private information online and to restrict what they share on social media and video sites. Federal and state agencies face challenges encouraging companies to help children, teens, and parents protect their information online. The authors extend previous cognitive defense research by examining (1) effects beyond advertising as applied to information privacy online; (2) not only children’s/teens’ beliefs and knowledge, but also their online privacy decisions; (3) multiple age categories; (4) multiple cognitive defense strategies (educational video, quiz with feedback, or absence of …

Leadership As An Art Within The Context Of Wicked Social Problems And Collective Leadership Streams, Jay Caulfield, Bret A. Richards

Management Faculty Research and Publications

No abstract provided.

Institutional Investors And Corporate Environmental, Social, And Governance Policies: Evidence From Toxics Release Data, Incheol Kim, Hong Wan, Bin Wang, Tina Yang

Finance Faculty Research and Publications

This paper studies the role of institutional investors in influencing corporate environmental, social, and governance (ESG) policies by analyzing the relation between institutional ownership and toxic release from facilities to which institutions are geographically proximate. We develop a local preference hypothesis based on the delegated philanthropy and transaction-costs theories. Consistent with the hypothesis, local institutional ownership is negatively related to facility toxic release. The negative relation is stronger for local socially responsible investing (SRI) funds, local public pension funds, and local dedicated institutions. We also find that the relation is more negative in communities that prefer more stringent environmental policies …

The Goldilocks Effect Of Strategic Human Resource Management? Optimizing The Benefits Of A High-Performance Work System Through The Dual Alignment Of Vertical And Horizontal Fit, Joo Hun Han, Saehee Kang, Rebecca R. Kehoe, David P. Lepak

Management Faculty Research and Publications

Although vertical and horizontal fit in strategic human resource management are foundational to the links between a high-performance work system (HPWS) and organizational performance, little is known about how these two fits interact to affect organizational performance. We address this shortcoming while also advancing knowledge on each type of fit. We offer a more nuanced examination of vertical fit (which has typically been assessed with respect to organizations' broad strategic types) by focusing on the alignment of an HPWS with an organization's market entry timing mode—a key element of strategy. We propose that among organizations pursuing new product development, the …

The Effects Of Tariff Increases On Supply Base Complexity: A Conceptual Framework, Sangho Chae, Carlos Mena, Mikaella Polyviou, Zachary S. Rogers, Robert Wiedmer

Management Faculty Research and Publications

Recent protectionist trends around the world have raised interest in newly enforced or increased tariffs and their effects on global supply chains. For firms sourcing globally, tariff introductions or increases significantly affect importing costs, which ultimately affect product costs. Such tariff changes may incentivize firms to adjust their supply base to mitigate these cost increases, thus altering the structure and complexity of firms' supply bases. In this paper, we first characterize the U.S. tariff landscape from 1997 to 2017. We then develop a conceptual model to explain how the severity and timing uncertainty of expected tariff increases influence a firm's …

Board Committees In Corporate Governance: A Cross-Disciplinary Review And Agenda For The Future, Kalin Kolev, David B. Wangrow, Vincent L. Barker Iii, Donald J. Schepker

Management Faculty Research and Publications

The importance of board committees – specialized subgroups that exist to perform many of the board's most critical functions, such as setting executive compensation, identifying potential board members, and overseeing financial reporting – has grown over time due to increased legal requirements and greater complexity of the environment in which firms operate. This has resulted in a large body of work examining board committees across the accounting, finance, and management disciplines. However, this research has developed rather independently within each discipline, preventing scholars and practitioners from developing a comprehensive understanding of board committees. To address this issue, we conduct a …

Board Committees In Corporate Governance: A Cross‐Disciplinary Review And Agenda For The Future, Kalin Kolev, David B. Wangrow, Vincent L. Barker Iii, Donald J. Schepker

Management Faculty Research and Publications

The importance of board committees – specialized subgroups that exist to perform many of the board's most critical functions, such as setting executive compensation, identifying potential board members, and overseeing financial reporting – has grown over time due to increased legal requirements and greater complexity of the environment in which firms operate. This has resulted in a large body of work examining board committees across the accounting, finance, and management disciplines. However, this research has developed rather independently within each discipline, preventing scholars and practitioners from developing a comprehensive understanding of board committees. To address this issue, we conduct a …

Benefits Of Blockchain Initiatives For Value-Based Care: Proposed Framework, Rongen Zhang, Amrita George, Jongwoo Kim, Veneetia Johnson, Balasubramaniam Ramesh

Management Faculty Research and Publications

Background

The potential of blockchain technology to achieve strategic goals, such as value-based care, is increasingly being recognized by both researchers and practitioners. However, current research and practices lack comprehensive approaches for evaluating the benefits of blockchain applications.

Objective

The goal of this study was to develop a framework for holistically assessing the performance of blockchain initiatives in providing value-based care by extending the existing balanced scorecard (BSC) evaluation framework.

Methods

Based on a review of the literature on value-based health care, blockchain technology, and methods for evaluating initiatives in disruptive technologies, we propose an extended BSC method for holistically …

The Impact Of Post-Trade Transparency On Price Efficiency And Price Discovery: Evidence From The Taiwan Stock Exchange, Chiou-Fa Lin, Cheng-Huei Chaio, Bin Wang

Finance Faculty Research and Publications

Purpose

The purpose of this paper is to examine the impact of post-trade transparency on price efficiency and price discovery.

Design/methodology/approach

The authors use an exogeneous change in market transparency in the Taiwan Stock Exchange that mandates the disclosure of unexecuted orders of the five best bid and ask prices after each trade, and conduct an event study analysis.

Findings

After the change, price efficiency enhances for both large and small firms, although the impact on stock prices is greater when the firm is larger. The authors also find that post-change trading reveals more private information for large firms but …

Effects Of E-Cigarette Health Warnings And Modified Risk Ad Claims On Adolescent E-Cigarette Craving And Susceptibility, J. Craig Andrews, Darren Mays, Richard G. Netemeyer, Scot Burton, Jeremy Kees

Marketing Faculty Research and Publications

Introduction

A between-subjects experiment examines the effects of different warning types and modified risk e-cigarette ad claims on adolescent e-cigarette craving and future e-cigarette susceptibility for two different themes. One theme focuses on nicotine and addiction, and the other on the effects of potentially harmful constituents (eg, flavored chemicals and lung disease).

Methods

The effects of warning type (control, text-only, graphic health warning [GHW] and text) and modified risk e-cigarette ad claims (control, exposure reduction, risk reduction) are tested experimentally with two different arms (themes) for a sample of 1011 adolescents who had tried either e-cigarettes or cigarettes.

Results

For …

Organizational Speed As A Dynamic Capability: Toward A Holistic Perspective, Bernadine J. Dykes, Margaret Hughes-Morgan, Kalin Kolev, Walter J. Ferrier

Management Faculty Research and Publications

Current research on organizational speed has been disjointed, which has left organizational speed as an underdeveloped area of study. In this essay, we expand the view of organizational speed as a multidimensional gestalt-like construct that may influence firm performance and competitive advantage. We offer a capability-based definition of organizational speed and identify and review the building blocks of organizational speed. We propose new avenues and questions for future research based on our perspective.