- 18 Sep 2019
- Working Paper Summaries
Female Inventors and Inventions
Does the gender of inventors make a difference for who benefits from their inventions? Analysis of all U.S. biomedical patents issued between 1976 and 2010 shows that research teams with women were more likely to produce patents addressing women’s health conditions, especially when female researchers led the teams. This link suggests that the dearth of women inventors might also result in fewer female-focused inventions.
- 06 Sep 2019
- Working Paper Summaries
Experimentation and Startup Performance: Evidence from A/B Testing
Is experimentation the right strategy for startups? This analysis of the adoption of A/B testing technology by 35,000 global startups provides evidence that a strategy based on repeated experimentation will improve performance over time. However, the benefits of experimentation vary. Experimentation helps younger startups “fail faster,” while older firms may discover new, high-growth products.
- 05 Sep 2019
- Working Paper Summaries
The Value of Intermediation in the Stock Market
Despite the rise of alternative trading platforms, high-touch broker trading remains prominent in institutional equity markets. The authors analyze how fees, research, quality of execution, and information can help explain how execution decisions and preferences vary across investors.
- 02 Sep 2019
- Working Paper Summaries
Legislators' Response to Changes in the Electorate: The Great Migration and Civil Rights
The second Great Migration (1940–1970) brought to the US North and West more than four million African Americans. We show that this unique episode of internal migration contributed to the development and eventual success of civil rights legislation.
- 28 Aug 2019
- Working Paper Summaries
Who Drives Digital Innovation? Evidence from the US Medical Device Industry
Major industries are undergoing a digital transformation, in which key aspects of new product development are migrating to a software-driven context. In the medical device industry, experience matters, as does the geographic clustering of new product development, which gives advantages to both new entrants and incumbent firms.
- 21 Aug 2019
- Working Paper Summaries
Improving Customer Compatibility with Operational Transparency
Service firms seeking prospective customers usually highlight the advantages of their offerings and downplay the tradeoffs. This study suggests a different approach: Provide transparency into advantages as well as tradeoffs. The transparency helps customers make informed decisions and can lead to better outcomes for both firms and customers over the long run.
- 20 Aug 2019
- Working Paper Summaries
Spatial Agglomeration and Superstar Firms: Firm-level Patterns from Europe and US
Large, productive, or internationalized firms tend to co-locate geographically. This study of the United States and Eurozone shows greater agglomeration around high performance plants, particularly multinationals. For policymakers, then, policies aimed at improving industry performance should pay attention to firm productivity distribution and not only focus on average performance.
- 12 Aug 2019
- Working Paper Summaries
Case Histories of Significant Medical Advances
Nine working papers by Srikant M. Datar and colleagues explore technologies pioneered during the late 20th century that US internists say have greatly improved patient care.
- 10 Aug 2019
- Working Paper Summaries
Varieties of Outward Chinese Capital: Domestic Politics Status and Globalization of Chinese Firms
Most popular and scholarly writing about China’s global push overemphasizes the power of the state. This paper explains how three types of domestic Chinese capital—state capital, private capital, and crony capital—differ in political vulnerability and pursue globalization in different ways. All prefer capital openness, but they do so for different reasons.
- 06 Aug 2019
- Working Paper Summaries
Field-Level Paradox and the Co-Evolution of an Entrepreneurial Vision
Swiss watchmaking embodies the classic strategic paradox created by the introduction of new technology: the choice between resisting and defending, or embracing and prospecting. This paper offers a model for how fields and organizational leaders experiencing similar paradoxes can adapt to environmental change while still preserving valuable aspects of their past success.
- 30 Jul 2019
- Working Paper Summaries
‘Organizing’, ‘Innovating’, and ‘Managing’ in Complexity Space
This paper explores organizational complexity by proposing a two-dimensional framework to help us understand organizational coping mechanisms and failure modes. The framework makes it possible to ask new questions about organizational adaptations to complexity that investigate its underlying structure and dynamics.
- 21 Jul 2019
- Working Paper Summaries
Why Do User Communities Matter for Strategy?
Communities of users are shaping the industrial landscape and contributing to the innovations we use every day. The effects of user communities on firms, industries, and society will continue to grow. This article discusses the relationship between user communities and firms to shed light on avenues for future research in business strategy.
- 02 Jul 2019
- Working Paper Summaries
Risk-Mitigating Technologies: The Case of Radiation Diagnostic Devices
Changes in risk perception, driven by extensive media coverage of accidents, for example, can be an important driver of innovation and shape the direction of technological progress. Large firms may play an important role in the development and commercialization of risk-mitigating technologies, with important implications for the dynamics of competitive advantage and market structure.
- 30 Jun 2019
- Working Paper Summaries
The Comprehensive Effects of Sales Force Management: A Dynamic Structural Analysis of Selection, Compensation, and Training
When sales forces are well managed, firms can induce greater performance from them. For this study, the authors collaborated with a major multinational firm to develop and estimate a dynamic structural model of sales employee responses to various management instruments like compensation, training, and recruiting/termination policies.
- 29 Jun 2019
- Working Paper Summaries
Infrastructure and Finance: Evidence from India's GQ Highway Network
In India, the Golden Quadrilateral highway network connects four major cities. This study of the relationship between the infrastructure project and development of the local financial sector finds that, in districts along and near the GQ, initial levels of financial development shaped how, and where, infrastructure investment could jumpstart real economic activity.
- 27 Jun 2019
- Working Paper Summaries
The Effect of Payment Choices on Online Retail: Evidence from the 2016 Indian Demonetization
Online sellers in many emerging markets are in the early stages of a shift from cash-based payments to digital payments. Findings from this study of a leading Indian online retailer show that firms may enjoy gains from consumer demand on top of operational gains resulting from payment digitization.
- 19 Jun 2019
- Working Paper Summaries
Migrant Inventors and the Technological Advantage of Nations
This study provides robust econometric evidence for how immigrant inventors shape the innovation dynamics of their receiving countries. Countries receiving inventors from other nations that specialize in patenting particular technologies are more likely to have a significant increase in patent applications of the same technology.
- 17 Jun 2019
- Working Paper Summaries
The Comprehensive Effects of a Digital Paywall Sales Strategy
Many print media firms are switching to a business model requiring readers to pay for online content. This study of media paywall strategies in the US finds that adopting a digital paywall can lead to positive demand substitution from digital to print channels, particularly for large-sized firms and those with unique content.
- 11 Jun 2019
- Working Paper Summaries
Throwing the Baby Out with the Drinking Water: Unintended Consequences of Arsenic Mitigation Efforts in Bangladesh
In this study, households that were encouraged to switch water sources to avoid arsenic exposure experienced a significant rise in infant and child mortality, likely due to diarrheal disease from exposure to unsafe alternatives. Public health interventions should carefully consider access to alternatives when engaging in mass behavior change efforts.
Using Models to Persuade
“Model persuasion” happens when would-be persuaders offer receivers a streamlined way of understanding data they already know, especially when the data is open to interpretation. Using examples from finance, politics, and law, the authors find that truthtellers do not eliminate the impact of misleading persuasion because wrong models may better fit the past than correct models.