Business Commons^™

Executive Compensation And The Maturity Structure Of Corporate Debt, Paul Brockman, Xiumin Martin, Emre Unlu

Department of Finance: Faculty Publications

Executive compensation influences managerial risk preferences through executives’ portfolio sensitivities to changes in stock prices (delta) and stock return volatility (vega). Large deltas discourage managerial risk-taking, while large vegas encourage risk-taking. Theory suggests that short-maturity debt mitigates agency costs of debt by constraining managerial risk preferences. We posit and find evidence of a negative (positive) relation between CEO portfolio deltas (vegas) and short-maturity debt. We also find that shortmaturity debt mitigates the influence of vega- and delta-related incentives on bond yields. Overall, our empirical evidence shows that short-term debt mitigates agency costs of debt arising from compensation risk.

Dynamic Creation: Extending The Radical Austrian Approach To Entrepreneurship, Todd H. Chiles, Chris S. Tuggle, Jeffery S. Mcmullen, Leonard Bierman, Daniel W. Greening

Department of Management: Faculty Publications

We develop a new perspective on entrepreneurship as a dynamic, complex, subjective process of creative organizing. Our approach, which we call ‘dynamic creation’, synthesizes core ideas from Austrian ‘radical subjectivism’ with complementary ideas from psychology (empathy), strategy and organization theory (modularity), and complexity theory (self-organization). We articulate conjectures at multiple levels about how such dynamic creative processes as empathizing, modularizing, and self-organizing help organize subjectively imagined novel ideas in entrepreneurs’ minds, heterogeneous resources in their firms, and disequilibrium markets in their environments. In our most provocative claim, we argue that entrepreneurs, by imagining divergent futures and (re)combining heterogeneous resources to …

The Philosophical Foundations Of A Radical Austrian Approach To Entrepreneurship, Todd H. Chiles, Denise M. Vultee, Vishal K. Gupta, Daniel W. Greening, Chris S. Tuggle

Department of Management: Faculty Publications

The equilibrium-based approaches that dominate entrepreneurship research offer useful insights into some aspects of entrepreneurship, but they ignore or downplay many fundamental entrepreneurial phenomena such as individuals’ creative imaginations, firms’ resource (re)combinations, and markets’ disequilibrating tendencies—and the genuine uncertainty and widespread heterogeneity these imply. To overcome these limitations, scholars have recently introduced a nonequilibrium approach to entrepreneurship based on Ludwig Lachmann’s “radical subjectivist” brand of Austrian economics. Here, this radical Austrian approach is extended beyond Lachmann to include the work of radical subjectivism’s other noted theorist: George Shackle. More important, the article extends entrepreneurship research by systematically comparing and contrasting …

Relationship Between Positive Psychological Capital And Creative Performance, David S. Sweetman, Fred Luthans, James B. Avey, Brett C. Luthans

Department of Management: Faculty Publications

Despite considerable attention to the creative process and its relationship with personal characteristics, there is no published study focused directly on the relationship between the recently recognized core construct of psychological capital (PsyCap) and creative performance. Drawing from a large (N = 899) and heterogeneous sample of working adults, this study investigates PsyCap and its components (i.e., efficacy, hope, optimism, and resilience) as predictors of creative performance. Overall PsyCap predicted creative performance over and above each of the four PsyCap components. Theoretical and practical implications of these findings are considered.

Malgré la grande attention accordée à la démarche créatrice et …

What Makes Strategy Making Across The Sales-Marketing Interface More Successful?, Avinash Malshe, Ravipreet S. Sohi

Department of Marketing: Faculty Publications

Extant research on marketing strategy making (MSM) lacks process-based theoretical frameworks that elucidate how marketing strategies are made when sales and marketing functions are involved in the process. Using a grounded theory approach and data collected from (a) 58 depth interviews with sales and marketing professionals and (b) a focus group with 11 marketing professionals, we propose that MSM within the sales-marketing interface is a three-stage, multifaceted process that consists of Groundwork, Transfer and Follow-up stages. Our process-based model explicates the specific activities at each stage that are needed to develop and execute marketing strategies successfully, the sequence in which …

A Qualitative Study Of High-Reputation Plant Managers: Political Skill And Successful Outcomes, Anne D. Smith, Donde Ashmos Plowman, Dennis Duchon, Amber M. Quinn

Department of Management: Faculty Publications

There has been little systematic study of what plant managers actually do on a day-to-day basis that accounts for their success in achieving organizational outcomes. In our field interviews and observations of high-reputation plant managers from 11 manufacturing plants, we found that effective political skill enabled them to influence subordinates in ways that contributed positively to organizational outcomes. Political skill is an interpersonal style that combines social astuteness with the ability to relate well, and otherwise demonstrate situationally appropriate behavior in an engaging way that inspires confidence, trust, and genuiness [Ferris, G.R., Perrewé, P.L., Anthony, W.P., Gilmore, D.C., 2000. Political …

Two Empirical Essays On Mutual Thrift Conversions, Chris Swift

College of Business: Dissertations, Theses, and Student Research

In our first essay, we study initial returns and long-run performance of a unique sample of recently converted mutual-to-stock thrifts. Since the average converted thrift in underpriced, we are able to characterize investor behavior in a way that is not possible with the typical IPO. In particular, we find that after removing large returns cumulative excess returns are positive for the first 12 months after the IPO. Beginning in the second year, the average firm undergoes a significant price correction that lasts for approximately 18 months which produces negative cumulative abnormal returns for up to five years post-issue. Differences in …

Making Biomass Pay: Obstacles And Opportunities, Gail Wells

Joint Fire Science Program Digests

Removing hazardous fuels to reduce the risk of wildfire has become a priority for land managers across the United States. Utilizing biomass taken from forests to cover the cost of fuel reduction is an attractive ideal. Effective utilization could also address important national challenges such as improving forest health, increasing domestic energy supplies, reducing carbon emissions, and revitalizing rural economies. However, getting woody biomass from the forest to the consumer is economically and logistically difficult, and efforts to make biomass utilization profitable have been disappointing so far. JFSP-funded researchers have found that, while there is no recipe for building a …

Measuring Workplace Spirituality In An Asian Context, Pawinee Petchsawanga, Dennis Duchon

Department of Management: Faculty Publications

This paper presents the development of a measure for workplace spirituality. Workplace spirituality is initially proposed to consists of five components, but confirmatory factor analysis (CFA) applied to data collected from employees from a large Thai company suggests a four-factor model: compassion, meaningful work, mindfulness and transcendence.

Experiencing Rare And Unusual Events Richly: The Role Of Middle Managers In Animating And Guiding Organizational Interpretation, Tammy E. Beck, Donde Ashmos Plowman

Department of Management: Faculty Publications

Organizations have difficulty learning from rare and unusual events because of their inability to interpret these events. Because organizations develop habitual ways of interpreting events—often top down—they can easily miss the novelty of rare and unusual events, which prevents them from experiencing events “richly.” We propose a multilevel, multistaged model of organizational interpretation that highlights the important, but generally unacknowledged, role middle managers can play in helping organizations experience rare and unusual events richly. Our model accounts for the effect of cognitive biases and hierarchical context on organizational interpretation. Because of their proximity to the interpretations of both strategic and …

The Use Of Personality Test Norms In Work Settings: Effects Of Sample Size And Relevance, Robert P. Tett, Jenna R. (Fitzke) Pieper, Patrick L. Wadlington, Scott A. Davies, Michael G. Anderson, Jeff Foster

Department of Management: Faculty Publications

The value of personality test norms for use in work settings depends on norm sample size (N) and relevance, yet research on these criteria is scant and corresponding standards are vague. Using basic statistical principles and Hogan Personality Inventory (HPI) data from 5 sales and 4 trucking samples (N range = 394–6,200), we show that (a) N >100 has little practical impact on the reliability of norm-based standard scores (max=±10 percentile points in 99% of samples) and (b) personality profiles vary more from using different norm samples, between as well as within job families. Averaging across scales, T-scores based on …

Consequences Of Customer Powerlessness: Secondary Control, Matthew Bunker, A. Dwayne Ball

Department of Marketing: Faculty Publications

This research investigated the consequences of powerlessness when consumers experience service failure with a company that has high-exit barriers. The specific consequences investigated were three types of secondary control, which are grudge-holding, avoidance (predictive avoidance), and retaliation desire. These secondary control coping strategies highlight consumers’ ability to control their personal behaviors and thoughts, even when they cannot completely control the outcomes of a situation. A qualitative study, followed by a scenario-based survey and structural equation model, suggest that the primary direct consequences of powerlessness in commercial relationships are grudge-holding and predictive avoidance, and that both predictive avoidance and a desire …

The Leadership Of Emergence: A Complex Systems Leadership Theory Of Emergence At Successive Organizational Levels, Benyamin B. Lichtenstein, Donde Ashmos Plowman

Department of Management: Faculty Publications

Complexity science reframes leadership by focusing on the dynamic interactions between all individuals, explaining how those interactions can, under certain conditions, produce emergent outcomes. We develop a Leadership of Emergence using this approach, through an analysis of three empirical studies which document emergence in distinct contexts. Each of these studies identifies the same four “conditions” for emergence: the presence of a Dis-equilibrium state, Amplifying actions, Recombination/“Self-organization”, and Stabilizing feedback. From these studies we also show how these conditions can be generated through nine specific behaviors which leaders can enact, including: Disrupt existing patterns through embracing uncertainty and creating controversy, Encourage …

The Impact Of Mentoring On Retention Through Knowledge Transfer, Affective Commitment, And Trust, Michelle M. Fleig-Palmer

College of Business: Dissertations, Theses, and Student Research

Organizations today face a dilemma regarding the retention of key knowledge workers. Knowledge transfer amongst employees is crucial for organizational productivity. Yet, this same knowledge transfer assists employees in improving their skill sets which increases their marketability and the potential for them to pursue career opportunities elsewhere. This study proposed that mentoring relationships can assist organizations in addressing this dilemma. Results of research conducted in a healthcare facility indicated that protégés reported higher levels of knowledge transfer and affective commitment. On average, protégés who reported higher levels of knowledge transfer were more likely to report higher turnover intentions. Supplemental analyses …

Entrepreneurial Leadership And Teamwork: The Key To Innovation In The 21st Century, Connie I. Reimers-Hild, Susan N. Williams

Kimmel Education and Research Center: Presentations and White Papers

Entrepreneurial leadership and continuous innovation are vital components of 21st century communities and organizations. Entrepreneurial leaders must realize the importance of environmental, social and global issues while creating an atmosphere of innovation designed to help followers become more entrepreneurial themselves.

Entrepreneurial individuals and teams have the ability to recognize and capitalize on opportunities, innovate, take risks, adapt to rapid change and marshal resources to achieve their goals. When individuals come together as an effective team, they can produce a synergy to meet the demands of a rapidly changing and competitive work environment. Therefore, entrepreneurial leaders must develop entrepreneurial individuals and …

Overreaction In The Thrift Ipo Aftermarket, Geoffrey C. Friesen, Christopher Swift

Department of Finance: Faculty Publications

We study the initial returns and long-run performance of a unique sample of thrifts that have recently converted from mutual to stock form. In addition to a full claim on all IPO proceeds, new investors in a converted thrift also receive a claim on all pre-conversion market value at no cost. Thus, the average firm in our sample has a degree of underpricing automatically built into its offer price. We find that after removing the large initial returns, cumulative excess returns for the firms in our sample are positive for 12 months after the IPO. Beginning in the second year …

Healers And Helpers, Unifying The People: A Qualitative Study Of Lakota Leadership, Kem M. Gambrell

Department of Agricultural Leadership, Education, and Communication: Dissertations, Theses, and Student Research

The purpose of this critical grounded theory qualitative study was to explore Lakota Leadership from a Native perspective. Interviews were conducted with enrolled members of a Lakota tribe in an urban setting as well as on the Rosebud reservation to gain better awareness of leadership through a non-mainstream viewpoint. Previously, in order to understand leaders and followers, research limited its scope of discernment to dominant society, implying that non-mainstream individuals will acquiesce, or that differences found are inconsequential. Leadership scholars also have implied that leadership theory is “universal enough”, and can be applied globally regardless of influences such as race, …

Global Mindset Development During Cultural Transitions, Rachel Clapp-Smith

College of Business: Dissertations, Theses, and Student Research

This dissertation sought to explore two research questions: what is the process of global mindset development and how can it be accelerated? The components that were hypothesized to contribute to global mindset development were cultural self-awareness, cognitive complexity, cultural intelligence, positivity, and suspending judgment. Culturally appropriate behavior served as the outcome of the process. Overall, it was found that a path model with the three main variables of cultural self-awareness, cognitive complexity and cultural intelligence had a strong fit. However, an interaction with positivity and partial mediation of suspending judgment were not supported. The results testing how to accelerate the …

The Influence Of Leader Humor On Relationships Between Leader Behavior And Follower Outcomes, Robert P. Vecchio, Joseph E. Justin, Craig L. Pearce

Department of Management: Faculty Publications

Although it is widely suspected that a leader’s use of humor can have an enhancing effect on follower performance, relatively little empirical evidence has been gathered that clearly substantiates this belief (Duncan, Smeltzer, and Leap, 1990). Generally, scholarship devoted to the topic of humor in the workplace has been suggestive of how humor might impact group climate or organizational culture (Collinson, 1988; Holmes and Marra, 2002; Linstead, 1985; Lundberg, 1969; Robinson and Smith-Lovin, 2001) or build unit cohesion (Lennox-Terrion and Ashforth, 2002). In his early article, Malone (1980) argued that humor may contribute to enhancing both employee satisfaction and performance. …

Sales Buy-In Of Marketing Strategies: Exploration Of Its Nuances, Antecedents, And Contextual Conditions, Avinash Malshe, Ravipreet S. Sohi

Department of Marketing: Faculty Publications

This study uses a qualitative research design with the Grounded Theory method, to explore the multifaceted nature of sales buy-in, i.e. the sales function’s belief that marketers’ proposed strategy is appropriate and has merit. Based on 49 in-depth interviews with sales and marketing professionals, the findings indicate that obtaining sales buy-in consists of four key components: (a) objectivity and rational persuasion (b) sensitivity and responsiveness to reality (c) involvement in strategy creation, and (d) positioning for success. The findings also show that three organizational-level factors play an important role in determining sales buy-in: (1) eliminating interfunctional walls, (2) bridging the …

The Great "Reset", Eric Thompson, University Of Nebraska-Lincoln

Business in Nebraska

THE GREAT “RESET”

U.S. Macroeconomic Outlook

Recent consumer spending, home and retail sales, and industrial production reports suggest that the economy may be nearing a turning point, and that the recession will end later this year. But, even if this happens, the U.S. economy will still face major challenges. The economy has dug itself a deep hole, with very high levels of unemployment. Further, there are reasons to expect an anemic and perhaps even unsteady recovery, rather than rapid expansion that often occurs at the end of a recession. First, consumption is not likely to return to pre-recession levels in …

The Predictive Content Of Aggregate Analyst Recommendations, John S. Howe, Emre Unlu, Xuemin (Sterling) Yan

Department of Finance: Faculty Publications

Using more than 350,000 sell-side analyst recommendations from January 1994 to August 2006, this paper examines the predictive content of aggregate analyst recommendations. We find that changes in aggregate analyst recommendations forecast future market excess returns after controlling for macroeconomic variables that have been shown to influence market returns. Similarly, changes in industry-aggregated analyst recommendations predict future industry returns. Changes in aggregate analyst recommendations also predict one-quarter-ahead aggregate earnings growth. Overall, our results suggest that analyst recommendations contain market- and industry-level information about future returns and earnings.

Reinventing An Innovation Ecology With New Models For Research And Research Parks, Robert G. Wilhelm, Barry L. Burks

Department of Mechanical and Materials Engineering: Faculty Publications

A novel effort to reinvent the innovation ecology of the Charlotte region is described. The methods and approaches are particularly relevant for restarting both local and global economies. Addressing requirements for faster innovation and more diverse innovation cycles, the research enterprise of the University of North Carolina at Charlotte, the Charlotte Research Institute, the University Research Park, and a diverse collection of partners are working together to recast university research models and research park paradigms. Best practices are discussed for technology transfer based on interdisciplinary applied research. A novel collaboration model developed by the Charlotte Research Institute is described. Guiding …

Complexity Leadership In Bureaucratic Forms Of Organizing: A Meso Model, Mary Uhl-Bien, Russ Marion

Department of Management: Faculty Publications

We consider Complexity Leadership Theory in contexts of bureaucratic forms of organizing to describe how adaptive dynamics can work in combination with administrative functions to generate emergence and change in organizations. Complexity leadership approaches are consistent with the central assertion of the meso argument that leadership is multi-level, processual, contextual, and interactive. In this paper we focus on the adaptive function, an interactive process between adaptive leadership (an agentic behavior) and complexity dynamics (non-agentic social dynamics) that generates emergent outcomes (e.g., innovation, learning, adaptability) for the firm. Propositions regarding the actions of complexity leadership in bureaucratic forms of organizing are …

Price Trends And Patterns In Technical Analysis: A Theoretical And Empirical Examination, Geoffrey C. Friesen, Paul Weller, Lee Dunham

Department of Finance: Faculty Publications

While many technical trading rules are based upon patterns in asset prices, we lack convincing explanations of how and why these patterns arise, and why trading rules based on technical analysis are profitable. This paper provides a model that explains the success of certain trading rules that are based on patterns in past prices. We point to the importance of confirmation bias, which has been shown to play a key role in other types of decision making. Traders who acquire information and trade on the basis of that information tend to bias their interpretation of subsequent information in the direction …

Dividend Policy, Creditor Rights, And The Agency Costs Of Debt, Paul Brockman, Emre Unlu

Department of Finance: Faculty Publications

We show that country-level creditor rights influence dividend policies around the world by establishing the balance of power between debt and equity claimants. Creditors demand and managers consent to a more restrictive payout policy as a substitute for weak creditor rights in an effort to minimize the firm’s agency costs of debt. Using a sample of 120,507 firm-years from 52 countries, we find that both the probability and amount of dividend payouts are significantly lower in countries with poor creditor rights. A reduction in the creditor rights index from its highest value to its lowest value implies a 41% reduction …

Producer Services: An Engine For Job Growth, Steve Carlson, Hanna Hartman, Eric Thompson

Business in Nebraska

Introduction

Producer services providers are firms that sell services primarily to the business community rather than to individuals and households. Accounting firms, consultants, and computer design services are prominent examples of producer services businesses. Given their importance as suppliers to the broader business community, producer services are a critical segment of the economy. Many producer services industries also are a rapidly growing and pay high wages. The producer services sectors in fact are the principal source of high wage job growth in our evolving service economy.

For all of these reasons, this article highlights the performance of the producer services …

Learning 2.0: A Tool For Staff Training At The University Of Alaska Fairbanks Rasmuson Library, Ilana Kingsley, Karen Jensen

E-JASL: Electronic Journal of Academic and Special Librarianship (1999-2009, Volumes 1-10)

Abstract

This paper describes a Learning 2.0 library staff training project completed in September 2007 at the University of Alaska Fairbanks Rasmuson Library. The project planning process, curriculum creation, implementation, incentives, and outcomes are included, along with a summary of survey results from program participants. Recommendations for implementing this free and useful staff training tool by other academic libraries are included, as well as a link to the Library’s Learning 2.0 blog.

Marketing For Summer Session: What Do The Students Want?, Paul Savory

Department of Industrial and Management Systems Engineering: Faculty Publications

Dr. Savory will share four campaign ideas his office developed to better target Summer Sessions marketing to the new generation of students. Each is unique and generates different reactions. He will talk about which was chosen and the campus reaction of choosing an “edgy” theme. He will also highlight the challenges and impact of offering a “Bucks for Summer Books” sweepstakes targeting freshman and sophomore students to take summer courses.

Authentic Leadership And Positive Psychological Capital: The Mediating Role Of Trust At The Group Level Of Analysis, Rachel Clapp-Smith, Gretchen Vogelgesang, James Avey

Department of Management: Faculty Publications

This study investigates the relationship between authentic leadership, trust, positive psychological capital (PsyCap), and performance at the group level of analysis. Data were collected from a small Midwestern chain of retail clothing stores, a context in which the needs for both authentic leadership and a positive sales staff are integral to the firm’s performance. Constructs were aggregated to the store (group) level to test relationships between perceptions of authentic leadership, trust in management, positive psychological capital, and performance. Trust in management was found to mediate the relationship between PsyCap and performance and to partially mediate the relationship be¬tween authentic leadership …