- 18 Oct 2011
- Working Paper Summaries
Historical Trajectories and Corporate Competences in Wind Energy
Analyzing developments in the wind turbine business over more than a century, Geoffrey Jones and Loubna Bouamane argue that public policy has been a key variable in the spread of wind energy since the 1980s, but that public policy was more of a problem than a facilitator in the earlier history of the industry. Geography has mattered to some extent, also: Both in the United States and Denmark, the existence of rural areas not supplied by electricity provided the initial stimulus to entrepreneurs and innovators. Building firm-level capabilities has been essential in an industry which has been both technically difficult and vulnerable to policy shifts. Key concepts include: Firms from Denmark have been unusually prominent throughout the history of the wind energy business. The basis of the competitive Danish industry was laid without support or even encouragement from its government. US-based firms have also been regularly found among the leading wind energy companies. But their relative importance varied considerably over time, has rarely reflected the overall importance of the U.S. market, and has involved a changing cast of actual firms. German and Spanish, and more recently Indian and Chinese firms, have emerged to become amongst the largest turbine manufacturers in the industry. The most striking change over the last decade has been in the competitive landscape. Engineering powerhouses, such as GE and Siemens, and wholly or partly state-owned Chinese firms with low-cost bases, are now prominent actors in this industry. Closed for comment; 0 Comments.
- 07 Oct 2011
- Research & Ideas
The Steve Jobs Legacy
Harvard Business School faculty offer their perspectives on the legendary career of Steve Jobs, who remade several industries even as he changed how we use technology. Closed for comment; 0 Comments.
- 22 Sep 2011
- Working Paper Summaries
Measuring Teamwork in Health Care Settings: A Review of Survey Instruments
It is critical to accurately assess teamwork in health-care organizations. About 60 percent of primary-care practices in the United States use team-based models to coordinate work across the broad spectrum of health professionals needed to deliver quality care; in many other countries the percentage is almost 100 percent. While the benefits of effective teamwork are substantial, effective teamwork is often lacking in these settings, with negative consequences for patients. To date, little has been known about the survey instruments available to measure teamwork. In this paper Valentine, Nembhard, and Edmondson report the results of their systematic review of survey instruments that have been used to measure teamwork in various contexts. Their research helps to identify existing teamwork scales that may be most useful in testing theoretical models. Key concepts include: Researchers often develop a new scale for their project rather than adapt existing scales. It would be better to utilize existing, psychometrically valid scales when possible so that cumulative knowledge of teamwork can be built. Many scales have been developed to assess teamwork. However, only eight scales satisfy the standard psychometric criteria the authors identified, and only three of those have been significantly associated with non-self-reported outcomes. Future research needs to clarify the concept of teamwork. Currently, the variation in ways of conceptualizing teamwork even within the scales that do show relationships to outcomes of interest makes it difficult to know what dimensions are core versus peripheral to the concept. The criteria set forth in this article should be considered standard research practice, and as such the scales that the authors identified are worthy of attention. Closed for comment; 0 Comments.
- 19 Sep 2011
- Research & Ideas
Doomsday Coming for Catastrophic Risk Insurers?
Insurance "reinsurers" underwrite much of the catastrophic risk insurance taken out to protect against huge disasters natural and man-made. Problem is, says Professor Kenneth A. Froot, reinsurers themselves are in danger of failing from a major catastrophic event. Key concepts include: Reinsurers are not distributing risk adequately enough to be able to cover gargantuan losses. Catastrophic reinsurance is more expensive than it needs to be, meaning fewer firms can afford to buy it. Reinsurers should act more like risk-taking investors and less like risk-averse corporations. Open for comment; 0 Comments.
- 14 Sep 2011
- Working Paper Summaries
Ethnic Innovation and US Multinational Firm Activity
What effects do immigrant scientists and engineers have on the global activities of the firms that employ them? To what extent do these high-skilled immigrants help US multinationals capitalize on foreign opportunities? Professors Foley and Kerr analyze key data concerning US patents, direct investment abroad, research and development, and the ownership structure of firms. They show that immigration enhances the competitiveness of US multinationals. Taken together, the results have implications for immigration policies. Many debates about immigration focus on the potentially deleterious impact of low wage immigrants on the domestic workforce. However, Foley and Kerr point out that immigrants who are skilled enough to engage in innovative activity generate benefits for firms that are seeking to do business abroad. Key concepts include: Immigrant scientists and engineers enhance the competitiveness of U.S. multinational firms in their home countries. The input of ethnic innovators makes the input of local partners less valuable and lowers entry barriers to foreign countries. U.S. multinationals are more likely to enter foreign countries with wholly-owned subsidiaries, as opposed to partially-owned ones, with the domestic support of immigrant scientists and engineers. Firms with more innovative activity performed by inventors of a certain ethnicity are more likely to conduct R&D and patenting in countries associated with that ethnicity. There is a particularly sharp rise in collaborative R&D that utilizes inventor teams spanning the United States and foreign countries. Closed for comment; 0 Comments.
- 31 Aug 2011
- Research & Ideas
Improving Fairness in Flight Delays
Airlines and the FAA don't like flight delays any more than passengers, but what's to be done? Assistant Professor Douglas Fearing and colleagues propose a "fairness" system that could save travelers time and service providers millions of dollars annually. Key concepts include: The model could reduce flight delays by 4 percent or more on some of the worst travel days, resulting in a systemwide savings of $25 to $50 million annually. Closed for comment; 0 Comments.
- 29 Aug 2011
- Research & Ideas
Decoding Insider Information and Other Secrets of Old School Chums
Associate Professors Lauren H. Cohen and Christopher J. Malloy study how social connections affect important decisions and, ultimately, how those connections help shape the economy. Their research shows that it's possible to make better stock picks simply by knowing whether two industry players went to the same college or university. What's more, knowing whether two congressional members share an alma mater can help predict the outcome of pending legislation on the Senate floor. Open for comment; 0 Comments.
- 18 Aug 2011
- Lessons from the Classroom
Business Plan Contest: 15 Years of Building Better Entrepreneurs
Since 1997, Hundreds of student-entrepreneurs have tested their ideas at Harvard Business School's annual Business Plan Contest. Here is what they have learned about success, failure, and themselves. From the HBS Alumni Bulletin. Open for comment; 0 Comments.
- 17 Aug 2011
- Research & Ideas
Protecting against the Pirates of Bollywood
Hollywood's earnings in India have largely been disappointing. Professor Lakshmi Iyer believes the problem has more to do with intellectual pirates than the cinematic kind. Open for comment; 0 Comments.
- 10 Aug 2011
- Research & Ideas
HBS Faculty Views on Debt Crisis
In the midst of the US debt crisis, Harvard Business School faculty offer their views on what went wrong and what needs to be done to right the US ship of state. Open for comment; 0 Comments.
- 02 Aug 2011
- Working Paper Summaries
To Groupon or Not to Groupon: The Profitability of Deep Discounts
For consumers, online discount vouchers (like those offered by Groupon.com) have obvious appeal: discounts as large as 90 percent. But for retailers offering the deals through the site, does the publicity compensate for the deep hit to profit margins? This paper sets out to help small businesses decide whether it makes sense to offer discount vouchers. Research was conducted by Harvard Business School professor Ben Edelman, Business Economics PhD candidate Scott Duke Kominers, and by Sonia Jaffe of the Harvard University Department of Economics. Key concepts include: For retailers, discount vouchers provide price discrimination, letting merchants reach customers who know about the business, but wouldn't ordinarily go there without a discount. These vouchers also benefit merchants through advertising, simply by informing consumers of a merchant's existence via e-mail. For some merchants, the benefits of offering discount vouchers are sharply reduced if individual customers buy multiple vouchers. As a marketing tool, discount vouchers are likely to be more effective for businesses that are relatively unknown and have low marginal costs. Closed for comment; 0 Comments.
- 04 Jul 2011
- Research & Ideas
Making the Case for Consumer-Driven Health Care
Even as so-called Obamacare becomes a central issue in the 2012 presidential election, policymakers and academics continue the debate on how best to deliver affordable and efficient health care services to millions of Americans. In this video interview, professor Regina Herzlinger makes the case that consumers should have more say over their own care. Closed for comment; 0 Comments.
- 27 May 2011
- Working Paper Summaries
An Empirical Decomposition of Risk and Liquidity in Nominal and Inflation-Indexed Government Bonds
The yields on US Treasury Inflation Protected Securities (TIPS) have declined dramatically since they were first issued in 1997. This paper asks to what extent the returns on nominal and inflation-indexed bonds in both the US and the UK can be attributed to differential liquidity and market segmentation or to real interest rate risk and inflation risk. Key concepts include: Over the 10 year period starting in 1999 the average annualized excess log return on 10 year TIPS equaled a substantial 4.16 percent, almost a full percentage point higher than that on comparable nominal US government bonds. These differential returns are notable, because both nominal and inflation-indexed bonds are fully backed by the US government. Moreover, the real cash flows on nominal bonds are exposed to surprise inflation while TIPS couponsand principal are inflation-indexed. The authors find strong empirical evidence for two different potential sources of excess return predictability in inflation-indexed bonds: real interest rate risk and liquidity risk. Empirical evidence is also provided showing that nominal bond return predictability is related not only to time variation in the real interest rate risk premium, but also to time variation in the inflation risk premium. Closed for comment; 0 Comments.
- 25 May 2011
- HBS Case
QuikTrip’s Investment in Retail Employees Pays Off
Instead of treating low-paid staffers as commodities, a new breed of retailers such as QuikTrip assigns them more responsibility and invests in their development, says professor Zeynep Ton. The result? Happy customers and even happier employees. Key concepts include: Unusual for a retailer, QuikTrip offers its operational employees above-average wages, job security, and significant benefits. By using operational efficiencies and standardization, QuikTrip reduces complexity to create higher employee productivity and fewer errors. By investing in employees and giving them more responsibility, QuikTrip enjoys a competitive advantage in service and benefits from continuous process improvement. Closed for comment; 0 Comments.
- 28 Apr 2011
- Op-Ed
While Waiting for Japan’s Recovery, Let’s Enhance Supplier Competitiveness at Home
The Obama administration and US companies do not have to wait for Japanese suppliers to recover from earthquake damage, argues Harvard Business School professor Rosabeth Moss Kanter. Action can be taken now to ensure that America invests in growing our domestic stock of world-class suppliers. Key concepts include: A national campaign to enhance supply-chain partnerships could ensure that America invests in growing our domestic stock of world-class suppliers—an action that could also accelerate job creation. Big companies should target high-potential small companies as suppliers, providing them training, access to domestic and international business opportunities, and lower supplier costs through pooled purchasing or insurance. Because the concept does not require every company to do the same thing, and in fact simply asks companies to increase their efforts to do things already in their portfolio, it does not involve complicated coordination. Closed for comment; 0 Comments.
- 11 Apr 2011
- Lessons from the Classroom
Teaching a ‘Lean Startup’ Strategy
Most startups fail because they waste too much time and money building the wrong product before realizing what the right product should have been, says HBS entrepreneurial management professor Thomas R. Eisenmann. Closed for comment; 0 Comments.
- 04 Apr 2011
- Research & Ideas
Attention Medical Shoppers: What Health Care Can Learn from Walmart and Amazon
At a Harvard Business School panel discussion on health care management, experts looked to the retail industry as a possible model for delivering medical services more effectively. Open for comment; 0 Comments.
- 04 Apr 2011
- HBS Case
Reinventing the National Geographic Society
How do you transform a 123-year-old cultural icon and prepare it for the digital world? Slowly, as a new case on the "National Geographic Society" by David Garvin demonstrates. Open for comment; 0 Comments.
- 28 Mar 2011
- Research & Ideas
Why Manufacturing Matters
After decades of outsourcing, America's ability to innovate and create high-tech products essential for future prosperity is on the decline, argue professors Gary Pisano and Willy Shih. Is it too late to get it back? From HBS Alumni Bulletin. Closed for comment; 0 Comments.
The Yelp Factor: Are Consumer Reviews Good for Business?
Michael Luca shows just how much restaurant reviews on Yelp affect companies' bottom lines. The more difficult question: Are these ratings reliable as a measure of product quality? Closed for comment; 0 Comments.