- 13 Jan 2009
- First Look
- 12 Jan 2009
- Research & Ideas
The Value of a ‘Portable’ Career
Can you predict whether star performers will replicate their success in a new environment? HBS professor Boris Groysberg and colleagues ask this question of professional football teams, and the results offer valuable lessons for star performers and hiring executives of business firms, too. Closed for comment; 0 Comments.
- 07 Jan 2009
- What Do You Think?
Is the World Really Flat?
A provocative new book, The Venturesome Economy, argues that the world isn't flat at all, says HBS professor Jim Heskett. But in supporting innovation, does flatness even matter? Readers around the world weighed in with a constellation of viewpoints. (Online forum now closed; next forum begins February 5.) Closed for comment; 0 Comments.
- 05 Jan 2009
- Research & Ideas
Most Popular Articles and Working Papers 2008
Why do female business stars succeed in new jobs better than men? What are the keys to writing a successful business plan? What's the best way to manage a price increase? These topics and more were among the most popular stories and working papers on HBS Working Knowledge in 2008. Closed for comment; 0 Comments.
- 23 Dec 2008
- First Look
- 22 Dec 2008
- Research & Ideas
10 Reasons to Design a Better Corporate Culture
Organizations with strong, adaptive cultures enjoy labor cost advantages, great employee and customer loyalty, and a smoother on-ramp in leadership succession. A book excerpt from The Ownership Quotient: Putting the Service Profit Chain to Work for Unbeatable Competitive Advantage by HBS professors Jim Heskett and W. Earl Sasser and coauthor Joe Wheeler. Closed for comment; 0 Comments.
- 18 Dec 2008
- Working Paper Summaries
Concentration Levels in the U.S. Advertising and Marketing Services Industry: Myth vs. Reality
How concentrated is the U.S. advertising and marketing services industry? Over the past several decades, the effects of deregulation, globalization, and technological innovation have reshaped the advertising and marketing services industry as they worked their way through the economy. Estimates from the existing literature are typically based on data from trade sources and present a picture that emphasizes rising concentration over time and domination by a handful of holding companies. These estimates are suspect as they suffer from a number of conceptual and measurement limitations. This paper analyzes changes in concentration levels in the U.S. advertising and marketing services industry, using data that have been largely ignored in past discussions of the economic organization of the industry. Key concepts include: Concentration levels vary across the advertising and marketing service industry's nine sectors, but all are within the range generally considered indicative of a competitive industry. From 1977 to 1992, census data show that the number of firms and establishments and the level of agency receipts in real terms increased. After 1992, however, the number of firms and establishments decreased while real agency receipts have continued to grow, and concentration levels have tended to increase. Between 2002 and 2006, the four largest holding companies captured a fifth to a fourth of the total U.S. revenue flowing to suppliers of advertising and marketing services each year. After several waves of mergers and acquisitions, the collective position of the major holding companies in the United States is considerably less than dominant. Closed for comment; 0 Comments.
- 17 Dec 2008
- Lessons from the Classroom
‘Ted Levitt Changed My Life’
Many students say legendary Harvard Business School marketing professor Ted Levitt changed their lives inside his classroom and out. "Ted Levitt was the most influential and imaginative professor in marketing history," HBS professor and senior associate dean John Quelch eulogized on the occasion of Levitt's death in 2006. Colleagues and students remember a life and times. From HBS Alumni Bulletin. Closed for comment; 0 Comments.
- 16 Dec 2008
- First Look
- 15 Dec 2008
- Research & Ideas
The Surprisingly Successful Marriages of Multinationals and Social Brands
What happens when small iconic brands associated with social values—think Ben & Jerry's—are acquired by large concerns—think Unilever? Can the marriage of a virtuous mouse and a wealthy elephant work to the benefit of both? Professors James E. Austin and Herman B. "Dutch" Leonard discuss their research. Closed for comment; 0 Comments.
- 11 Dec 2008
- Working Paper Summaries
Quality Management and Job Quality: How the ISO 9001 Standard for Quality Management Systems Affects Employees and Employers
Nearly 900,000 organizations in 170 countries have adopted the ISO 9001 Quality Management System standard. This is a remarkable figure given the lack of rigorous evidence regarding how the standard actually affects organizational practices and performance. Proponents claim that quality programs such as ISO 9001 improve both management practices and production processes, and that these improvements, in turn, will increase both sales and employment. Documenting and training proper work practices can also reduce potentially dangerous "work arounds," and thus could reduce the risk of workplace accidents and injuries. Some critics, on the other hand, point to the potential for quality programs such as ISO 9001 to be detrimental to employees by documenting work practices, resulting in routinization that may reduce skill requirements and increase repetitive motion injuries. This paper reports the first large-scale evaluation of how ISO 9001 affects workers, focusing in particular on employment, total payroll, average annual earnings, and workplace health and safety. Key concepts include: Companies that adopt ISO 9001 subsequently grow faster in sales, employment, payroll, and average annual earnings than a matched control group. ISO 9001 adopters are also more likely to remain in business. ISO 9000 adopters subsequently become more likely to report zero injuries eligible for workers' compensation. However, there is no evidence that a firm's total or average injury costs improved or worsened subsequent to adoption. Closed for comment; 0 Comments.
- 10 Dec 2008
- Working Paper Summaries
Market Reaction to the Adoption of IFRS in Europe
How do investors in European firms react to a change in financial reporting? Prior to 2005, most European firms applied domestic accounting standards. The adoption of International Financial Reporting Standards (IFRS) would result in the application of a common set of financial reporting standards within Europe, and between Europe and the many other countries that require or permit application of IFRS. However, modification of IFRS by European regulators would result in European standards differing from those used in other countries, thereby eliminating some potential convergence benefits. This study investigates the equity market reaction to 16 events associated with the adoption of IFRS in Europe. Overall, the researchers' findings are consistent with investors expecting the benefits associated with IFRS adoption in Europe to exceed the expected costs. Key concepts include: Overall, investors reacted positively to the increased likelihood of IFRS adoption. Investors expected net benefits associated with increases in information quality, decreases in information asymmetry, more rigorous enforcement of the standards, and convergence. The reaction for firms domiciled in code law countries is less positive, consistent with investors' concerns over enforcement of IFRS in those countries. Closed for comment; 0 Comments.
- 09 Dec 2008
- First Look
- 08 Dec 2008
- Research & Ideas
Thinking Twice About Supply-Chain Layoffs
Cutting the wrong employees can be counterproductive for retailers, according to research from Zeynep Ton. One suggestion: Pay special attention to staff who handle mundane tasks such as stocking and labeling. Your customers do. Closed for comment; 0 Comments.
- 04 Dec 2008
- Working Paper Summaries
Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain?
Some places, like Silicon Valley, seem almost magically entrepreneurial with a new start-up on every street corner. Other areas, like declining cities of the Rust Belt, appear equally starved of whatever local attributes make entrepreneurship more likely. Many academics, policymakers, and business leaders stress the importance of local conditions for explaining spatial differences in entrepreneurship and economic development. This paper uses data from the U.S. Census Bureau to characterize these entry relationships more precisely within the manufacturing sector. Key concepts include: Local costs and relevant natural advantages (e.g., coastal access, energy prices) are very important for new manufacturing start-ups. Manufacturing start-ups are particularly drawn to cities with suitable labor forces in terms of occupational distributions. This labor dependency holds across all sizes of start-ups. New start-ups are drawn to areas with smaller, more entrepreneurial suppliers. Local customers are less important for manufacturing startups. Measures of general entrepreneurial culture did not predict manufacturing entry well. Closed for comment; 0 Comments.
- 03 Dec 2008
- What Do You Think?
Can Housing and Credit be “Nudged” Back to Health?
Did human frailty cause this crisis? Several thinkers have come forward with a suggestion for improvements to fiscal policy that are based on fostering better decisions while preserving consumer choice, says HBS professor Jim Heskett. What should be done? What do you think? (Online forum now closed. Next forum begins January 7.) Closed for comment; 0 Comments.
- 03 Dec 2008
- Working Paper Summaries
Performance Persistence in Entrepreneurship
All else equal, a venture-capital-backed entrepreneur who starts a company that goes public has a 30 percent chance of succeeding in his or her next venture. First-time entrepreneurs, on the other hand, have only an 18 percent chance of succeeding, and entrepreneurs who previously failed have a 20 percent chance of succeeding. But why do these contrasts exist? Such performance persistence, as in the first example, is usually taken as evidence of skill. However, in the context of entrepreneurship, the belief that successful entrepreneurs are more skilled than unsuccessful ones can induce real performance persistence. In this way, success breeds success even if successful entrepreneurs were just lucky. Success breeds even more success if entrepreneurs have some skill. Key concepts include: There is evidence for the role of skill as well as the perception of skill in inducing performance persistence. Closed for comment; 0 Comments.
- 01 Dec 2008
- Lessons from the Classroom
How Many U.S. Jobs Are ‘Offshorable’?
Some 900 Harvard Business School students were asked to recreate a study assessing the potential "offshorability" of more than 800 occupations in the United States. Their findings: It might be a larger number than we thought. Key concepts include: Management students are likely tomorrow to face an unprecedented array of options concerning what they can do where. Increasingly, jobs are being viewed as groups of tasks that can be bundled, unbundled, and sent to different places. Offshoring could come to an end just as quickly as it began. Closed for comment; 0 Comments.
- 26 Nov 2008
- Working Paper Summaries
The Sciences of Design: Observations on an Emerging Field
This paper examines the sciences of design as an emerging field of study that cuts across disciplinary boundaries. The paper summarizes and synthesizes the positions, reflections, opportunities, and challenges expressed at the first doctoral consortium to explore the topic, held in 2008. It thus provides a useful agenda for clarifying and articulating important strands of this nascent field. Key concepts include: Design sciences is a movement that affects not only the information systems discipline but also several allied disciplines, which must also contribute to its definition and participation. When a common language exists across disciplines, it enables an ongoing, productive pursuit of scientific knowledge. But common languages only come about through intense, repeated conversations between individuals with disparate views and open minds. Closed for comment; 0 Comments.
Smart Money: The Effect of Education, Cognitive Ability, and Financial Literacy on Financial Market Participation
(Previously titled "If You Are So Smart, Why Aren't You Rich? The Effects of Education, Financial Literacy and Cognitive Ability on Financial Market Participation.") Individuals face an increasingly complex menu of financial product choices. The shift from defined benefit to defined contribution pension plans, and the growing importance of private retirement accounts, require individuals to choose the amount they save, as well as the mix of assets in which they invest. Yet, participation in financial markets is far from universal in the United States. Moreover, researchers have only a limited understanding of what factors cause participation. Cole and Shastry use a very large dataset new to the literature in order to study the important determinants of financial market participation. They find that higher levels of education and cognitive ability cause increased participation—however, financial literacy education does not. Key concepts include: The relationship between education and savings is difficult to measure, because both are affected by many factors (motivation, ability, etc.). This paper documents an important causal relationship between education and financial market participation. A set of financial literacy education programs, mandated by state governments, did not have an effect on individual savings decisions. It is imperative to conduct rigorous evaluations of financial literacy education programs to measure their efficacy. Closed for comment; 0 Comments.