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New research on relationships from Harvard Business School faculty on issues including business-community relationships, business-shareholder relationships, manager-employee relationships and personal networks.
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Shareholder Activism and Firms’ Voluntary Disclosure of Climate Change Risks

by Caroline Flammer, Michael W. Toffel, and Kala Viswanathan

Shareholder resolutions typically fail, and often by a wide margin. So why do active investors bother? It turns out that resolutions nonetheless can influence corporate transparency. Specifically, after being targeted with shareholder resolutions on environmental topics, this research shows that companies are more likely to publicly disclose their climate change risks—and that such disclosure increases these companies’ valuation.

Should Non-Compete Clauses Be Abolished?

by James Heskett

SUMMING UP: Non-compete clauses need to be rewritten, especially when they are applied to lower-income workers, respond James Heskett's readers. Open for comment; Comment(s) posted.

How a New Leader Broke Through a Culture of Accuse, Blame, and Criticize

Re: Amy C. Edmondson

Children’s Hospital & Clinics COO Julie Morath sets out to change the culture by instituting a policy of blameless reporting, which encourages employees to report anything that goes wrong or seems substandard, without fear of reprisal. Professor Amy Edmondson discusses getting an organization into the “High Performance Zone.” Open for comment; Comment(s) posted.

Big Infrastructure May Not Always Produce Big Benefits

by Martha Lagace

Government spending on bridges, roads, and other infrastructure pieces does not always ignite economic good times, say William Kerr and Ramana Nanda. The key question: Are financiers nearby? Open for comment; Comment(s) posted.

Rituals Strengthen Couples. Here’s Why They’re Good for Business, Too

by Dina Gerdeman

Couples with deliberate rituals feel more satisfied with their relationships, says research by Michael I. Norton and Ximena Garcia-Rada. Can businesses benefit? Open for comment; Comment(s) posted.

In the Platform Economy, Upwork Searches for Better Matches in the Cloud

Re: David B. Yoffie

Welcome to the Platform Economy, where business strategists must learn a new form of competition. David Yoffie and Michael Cusumano explain choices facing Upwork, which matches jobs with job hunters in the cloud. Open for comment; Comment(s) posted.

Political Influence and Merger Antitrust Reviews

by Mihir N. Mehta, Suraj Srinivasan, and Wanli Zhao

This paper uses a large sample of United States mergers between 1998 and 2010 to study how political connections help firms obtain favorable antitrust regulatory outcomes for mergers. Given that antitrust regulators are subject to congressional oversight, the authors predict and find evidence that outcomes systematically favor firms that are constituents of politicians serving on judiciary committees.

Labor Market Shocks and the Demand for Trade Protection: Evidence from Online Surveys

by Rafael Di Tella and Dani Rodrik

This paper provides evidence on the role played by different kinds of labor-market shocks in shaping individuals’ policy preferences. Specifically, it studies how people’s opinions about trade protectionism and compensatory financial transfers change when presented with six different types of shocks, all of which have the same effect on local labor markets.

Voting Trusts and Antitrust: Rethinking the Role of Shareholder Rights and Private Litigation in Public Regulation, 1880s to 1930s

by Naomi R. Lamoreaux and Laura Phillips Sawyer

Historically, judges were reluctant to intervene in corporations’ internal affairs and displayed a particular wariness of shareholders’ derivative suits. By the end of the 19th century, however, they had begun to revise their views and to see shareholders’ private actions as useful checks on economic concentration.

The Unexpected Way Whistleblowers Reduce Government Fraud

by Kristen Senz

Even unfounded allegations by whistleblowers can force government contractors to renegotiate their terms, say Jonas Heese and Gerardo Perez Cavazos. Open for comment; Comment(s) posted.

The Changing Landscape of Auditor Litigation and Its Implications for Audit Quality

by Colleen Honigsberg, Shivaram Rajgopal, and Suraj Srinivasan

Data from 1996 to 2016 shows that shareholder litigation against auditors has declined in recent years. Empirical evidence shows that Rule 10b-5, the Securities Act statute used for class action lawsuits, has lost its bite for use against auditors. This decline is driven, at least in part, by the US Supreme Court’s narrowing of liability standards. These findings suggest weakened shareholder protection with profound implications for investors.

Managed Ecosystems and Translucent Institutional Logics: Engaging Communities

by Elizabeth J. Altman, Frank Nagle, and Michael Tushman

Organizations increasingly rely on engagement with external communities of contributors. This paper explores transitions to a managed-ecosystem governance mode and its implications for strategy and innovation. To be successful, firms must develop the capabilities to shepherd communities, leverage without exploiting them, and share intellectual property rights.

Ignore This Advice at Your Own Peril

by Dina Gerdeman

Refusing to act on advice from a respected colleague or mentor can backfire and damage your working relationship, a new study says. Hayley Blunden explains the career implications of seeking counsel from others. Open for comment; Comment(s) posted.

How Gender Stereotypes Kill a Woman’s Self-Confidence

by Dina Gerdeman

Researchers believe gender stereotypes hold women back in the workplace. Katherine Coffman's research adds a new twist: They can even cause women to question their own abilities. Open for comment; Comment(s) posted.

Why Business Should Support Employees Who Are Caregivers

by Danielle Kost

Shifting demographics are causing an increasing number of people to act as caregivers for family and friends—but employers seem hardly to notice the trend. Joseph Fuller discusses why companies should support them. Open for comment; Comment(s) posted.

The UK Needs a Bold Strategy Around Competition to Survive Brexit

by Michael Blanding

There is little doubt that the United Kingdom’s separation from Europe will reduce its competitiveness for the foreseeable future, argues Michael E. Porter. Here's what can be done about it. Open for comment; Comment(s) posted.

Team Learning Capabilities: A Meso Model of Sustained Innovation and Superior Firm Performance

by Jean-François Harvey, Henrik Bresman, and Amy C. Edmondson

In strategic management research, the dynamic capabilities framework enables a “helicopter view” of how firms achieve sustainable competitive advantage. This paper focuses on the critical role of work teams, arguing that managers must leverage the knowledge generated by teams to support innovation and strategic change. It matches types of team learning to innovation activities.

Design Rules, Volume 2: How Technology Shapes Organizations: Chapter 5 Complementarity

by Carliss Y. Baldwin

Even as economics has theories about what assets and activities should be grouped together under common ownership and unified governance, in practice it sometimes makes sense to distribute complementary assets, skills, and activities across separate organizations. This paper investigates when and how this happens.

Rankings Matter Even When They Shouldn't: Bandwagon Effects in Two-Round Elections

by Vincent Pons and Clémence Tricaud

Results of the French parliamentary and local elections since 1958 show that candidates ranked higher in the first round are more likely to stay in the race for the second round and win it. Arriving first instead of second and second instead of third increases winning by 5.8 and 9.9 percentage points, respectively.

Sponsorship Programs Could Actually Widen the Gender Gap

by Carmen Nobel

Companies increasingly provide sponsors to help women get ahead. But certain aspects of sponsorship programs can hinder women instead, according to experimental research by Nancy R. Baldiga and Katherine B. Coffman. Open for comment; Comment(s) posted.