Business Commons^™

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, Johnette (Jay) 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 …

How To Develop Successful And Ethical Investment Analysts: Marquette University's Applied Investment Management Program, Matteo P. 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 …

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 …

The Ethicality Of Point-Of-Sale Marketing Campaigns: Normative Ethics Applied To Cause-Related Checkout Charities, Johnette (Jay) 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 …

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 …

Foundations In Wisconsin: A Directory (39th Ed. 2020), Mary C. Frenn, John Brick, Kelly Coughlin, Madeline Murphy, Catherine Simmerer

Foundations in Wisconsin: A Directory

The 2020 publication of Foundations in Wisconsin is the 39^th edition of the print directory and the 20^th year of the online database. The directory is designed as a research tool for grantseekers interested in locating information on private, corporate, and community foundations registered in Wisconsin. Each entry in this new edition has been updated or reviewed to provide the most current information available. Most of the data was drawn from IRS 990-PF tax returns filed by the foundations. Additional information was obtained from surveys, foundation websites, and annual reports.

Wisconsin foundations showed continued growth in both the …

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, Johnette (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 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 …

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 …

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 …

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 …

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 …

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.

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 …

Ethical Foundations For Exchange In Service Ecosystems, Patrick E. Murphy, Gene R. Laczniak

Marketing Faculty Research and Publications

No abstract provided.

The Role Of Normative Marketing Ethics, Gene R. Laczniak, Patrick E. Murphy

Marketing Faculty Research and Publications

This essay highlights the importance of normative thinking in marketing ethics and proposes avenues for future research. It begins with contrasting positive and normative ethics. Then, a brief discussion of the literature in the field is included. Arguments offered by those who tend to avoid normative analysis are examined. Four types of normative ethical theories are presented: consequentialism, duty-based ethics, contract-based morality, and virtue ethics. The essay concludes with seven future research directions for normative marketing ethics and customer-brand relationships.

Foundations In Wisconsin: A Directory [38th Ed. 2019], Mary C. Frenn, Clare Casey, Madeline Murphy, Sareene Proodian, Catherine Simmerer

Foundations in Wisconsin: A Directory

The 2019 publication of Foundations in Wisconsin is the 38th edition of the print directory and the 19th year of the online database. The directory is designed as a research tool for grantseekers interested in locating information on private, corporate, and community foundations registered in Wisconsin. Each entry in this new edition has been updated or reviewed to provide the most current information available. Most of the data was drawn from IRS 990-PF tax returns filed by the foundations. Additional information was obtained from surveys, foundation websites, and annual reports. Wisconsin foundations once again grew in two significant areas: grants …

Applying Collective Change Leadership And Change To Resolve Complex Community Problems, Johnette (Jay) Caulfield

Management Faculty Research and Publications

No abstract provided.

The Ethicality Of Point Of Sale Marketing Campaigns: Normative Ethics Applied To Cause Related Checkout Charities, Catharyn Baird, Johnette (Jay) Caulfield

Management Faculty Research and Publications

No abstract provided.

Managerial Discretion, David B. Wangrow, Hilary Schloemer

Management Faculty Research and Publications

No abstract provided.

Not All Responses Are The Same: How Ceo Cognitions Impact Strategy When Performance Falls Below Aspirations, David B. Wangrow, Kalin Kolev, Margaret Hughes-Morgan

Management Faculty Research and Publications

This study integrates research on managerial discretion within the behavioral theory of the firm to examine how four CEO psychological traits serving as antecedents of managerial discretion—ambiguity tolerance, cognitive complexity, locus of control, and commitment to the status quo—moderate firm responses to poor performance. Using CEOs’ responses to questionnaires, CEO ambiguity tolerance is found to positively moderate the relationship between negative attainment discrepancy and strategic change when performance is slightly below aspirations, defined as average market return for the firm’s industry. Further, CEOs with greater cognitive complexity are found to engage in more strategic change when …

Data And Predictive Analytics Use For Logistics And Supply Chain Management, Anníbal C. Sodero, Yao Henry Jin, Mark Barratt

Management Faculty Research and Publications

Purpose

The purpose of this paper is to explore the social process of Big Data and predictive analytics (BDPA) use for logistics and supply chain management (LSCM), focusing on interactions among technology, human behavior and organizational context that occur at the technology’s post-adoption phases in retail supply chain (RSC) organizations.

Design/methodology/approach

The authors follow a grounded theory approach for theory building based on interviews with senior managers of 15 organizations positioned across multiple echelons in the RSC.

Findings

Findings reveal how user involvement shapes BDPA to fit organizational structures and how changes made to the technology retroactively affect its design …

Something Of Value: A Value Proposition Exercise For The Marketing Classroom, Rebecca Dingus, Alexander Milovic

Marketing Faculty Research and Publications

Gone are the days of transactional marketing, and here to stay are increased expectations for marketers to act as trusted advisors while providing value customized specifically to each customer. Accordingly, marketers must clearly identify the competitive advantage of their products or services, and they need to be sure this competitive advantage is valuable in the eyes of the customer. This paper focuses on teaching students to adopt such a perspective when developing customer-focused solutions, as well as to train them on creating an actual value proposition. An exercise is presented, with data demonstrating its effectiveness for teaching value propositions.

The Upside Of Showrooming: How Online Information Creates Positive Spill-Over For The Brick-And-Mortar Retailer, Brian I. Spaid, Bonnie O'Neill, Terence T. Ow

Marketing Faculty Research and Publications

The ubiquitous nature of mobile internet devices (i.e., smartphones and tablet computers) has led to an increase of their use within the retail environment as a shopping assistive technology. Consumers use them for a variety of shopping-related tasks, the most significant of which is researching product information. The use of these devices has clearly impacted how consumers shop, but what is not clear is how these devices affect shopper satisfaction, trust in the retailer and subsequent shopper intentions. The purpose of this paper is to better understand these relationships and extend existing research on the use of mobile internet devices …