- 10 Jan 2008
- Sharpening Your Skills
- 09 Jan 2008
- Working Paper Summaries
A Resource Belief-Curse: Oil and Individualism
Capitalism is not as widespread as economists would hope. Data from surveys of public opinion, as well as on the distribution of political parties, confirm the idea that capitalism doesn't flow to poor countries. In some countries, anti-market sentiment has increased in recent years, a period where the price of oil and other primary commodities have soared. This combination of anti-market sentiment and high oil prices has led to renegotiations of oil contracts and even nationalizations in some countries such as Bolivia and Venezuela. It is tempting for economists trained in the theory of political capture to argue that this is just another instance where special interests exploit the circumstances to make an extra dollar. Given that these nationalizations are often popular with the majority of voters, however, the researchers resist this temptation and ask if there are explanations where a positive correlation emerges between voter anti-market sentiment and dependence on oil. Key concepts include: Antipathy toward markets has become particularly acute in Latin America. In Bolivia, Venezuela, Ecuador, and Argentina, policymakers have focused their anti-market energies and attention on natural resource companies, in several cases even renegotiating their contracts. A connection between dependence on oil and receptivity to populist rhetoric is both natural in economic models and has some support in the data. Closed for comment; 0 Comments.
- 08 Jan 2008
- First Look
- 07 Jan 2008
- Research & Ideas
Pursuing a Deadly Opportunity
Cadavers are a necessity for medical students and researchers, but the business of supplying this market is a touchy moral and ethical issue. Harvard Business School professor Michel Anteby and research associate Mikell Hyman explore strategies used by both academic and entrepreneurial organizations that deal in the dead. Key concepts include: The study raises general questions around what constitutes organizational legitimacy and the kind of moral order we want to create as a society. The same issues could help us come to grips with the murky legal and ethical areas surrounding the digital age. Understanding how and why these market dynamics develop will shed light on how the supply of cadavers could be increased and improved. Closed for comment; 0 Comments.
- 03 Jan 2008
- What Do You Think?
Does Judgment Trump Experience?
It's a question as relevant for business as for the U.S. presidential campaign, says HBS professor Jim Heskett. If "judgment capability" is a function of experience, what kind of experience is important? Does plenty of experience really improve judgment? Online forum now CLOSED. Closed for comment; 0 Comments.
- 02 Jan 2008
- Research & Ideas
Most Popular Stories 2007
Stories and research about career advancement, negotiation, and leadership are perennially popular at HBS Working Knowledge, and 2007 was no exception. But this past year our readers also showed growing interest in the topics of team performance, the networked economy, and innovation. Closed for comment; 0 Comments.
- 18 Dec 2007
- First Look
- 17 Dec 2007
- Research & Ideas
The Rise of Medical Tourism
Medical tourism—traveling far and wide for health care that is often better and certainly cheaper than at home—appeals to patients with complaints ranging from heart ailments to knee pain. Why is India leading in the globalization of medical services? Q&A with Harvard Business School's Tarun Khanna. Key concepts include: Medical tourism is a new term but not a new idea. Patients have long traveled in search of better care. Today, constraints and long waiting lists at home, as well as the ease of global travel, make medical tourism more appealing. Superior medical schools, a low cost of living, family preferences, and the barriers to foreign accreditation mean that Indian doctors may prefer to work in India rather than elsewhere. The medical services industry is evolving quickly. Khanna expects to see dynamics in China similar to those in India and in other parts of Southeast Asia. Closed for comment; 0 Comments.
- 14 Dec 2007
- Op-Ed
When Your Product Becomes a Commodity
Like death and taxes, commoditization of your products is a given. Marketing professor John Quelch offers tips for delaying the inevitable and dealing with it once it arrives. Key concepts include: The speed from product launch to maturity is faster than ever before. Innovate, bundle, and segment are 3 things marketers can do to delay commoditization. Managers already in a commoditized market must rethink salesforce compensation and pricing, trim costs, acquire competitors, and fire unprofitable customers. Closed for comment; 0 Comments.
- 13 Dec 2007
- Working Paper Summaries
Acting Globally but Thinking Locally? The Influence of Local Communities on Organizations
It is a paradox that in a globalizing and "boundaryless" economy, factors associated with local communities—such as interpersonal networks, laws, and tax rates, among others—remain important for understanding organizational behavior. As Marquis and Battilana argue, communities influence organizational behavior not only as local markets and resource environments, but also through a number of institutional pressures. Focusing on communities as institutional environments provides fresh theoretical insights into organizational behavior, in addition to offering a more unified perspective to the diverse set of research that is emerging on local communities. Key concepts include: Despite globalization, local factors remain important, and in many ways local particularities have become more visible and salient as globalization has proceeded. In today's environment, organizations are embedded both locally and globally. Researchers need to account for these different levels in order to understand organizational behavior and also perhaps advance theory. Closed for comment; 0 Comments.
- 11 Dec 2007
- First Look
- 10 Dec 2007
- HBS Case
One Laptop per Child
The One Laptop per Child initiative wants to develop and distribute $100 laptops to poor children around the world. Despite eager observers and exciting breakthroughs technologically, it has found the path to customers more rocky than anticipated. Marketing has some answers, as a new case study details. Q&A with HBS professor John Quelch. Key concepts include: The XO laptop is a rugged little computer designed to help kids learn and play collaboratively. Some of its features raise the bar in the computer industry as a whole. Competitors are moving into the same market space to make low-cost laptops. However, the One Laptop per Child initiative is nonprofit. Despite some success, one of the biggest hurdles has been signing up governments to purchase the computer for their country's children. Closed for comment; 0 Comments.
- 05 Dec 2007
- Sharpening Your Skills
- 04 Dec 2007
- First Look
- 04 Dec 2007
- Working Paper Summaries
Dynamics of Platform Competition: Exploring the Role of Installed Base, Platform Quality and Consumer Expectations
What factors drive platform success, long-run market structure, and market efficiency? Conventional wisdom suggests that for a new platform to be successful, either it must make its technology compatible with the incumbent, or its technical advantage must offer so much value to consumers that it exceeds the combination of functionality, installed base, and complementary goods value offered by the incumbent. Zhu and Iansiti develop a dynamic model to examine the evolution of platform-based markets. They find that a huge quality advantage may not be necessary for an entrant to be successful. Using data from the video game industry, they find support for their theoretical predications. Key concepts include: A huge quality advantage may not be necessary for success. When market dynamics are driven by quality, a platform with a small quality advantage can also be successful. Xbox has a small quality advantage over Playstation 2 and the market dynamics are quality driven. These results help explain the successful entry of the Xbox console into this market and provide support for Zhu and Iansiti's theoretical model. Installed-base advantages do not necessarily provide a safety shield for the incumbent. To defend its leadership position, the incumbent needs to constantly enhance its quality. Closed for comment; 0 Comments.
- 03 Dec 2007
- Research & Ideas
Authenticity over Exaggeration: The New Rule in Advertising
Advertisers thought technology was their friend in identifying and creating new customers. Funny thing happened along the way, though: Now consumers are using the Internet to blunt traditional commercial messages. Time for companies to rethink their strategy, says HBS professor John A. Deighton. Key concepts include: In today's media-rich world, traditional advertising models are breaking down. Now, the consumer runs the show. Successful advertising campaigns today are self-parodying and spark discussions rather than blatantly sell products. As digital interactivity increases the contexts in which people use new media, it becomes less and less productive to think of people as consumers alone. Closed for comment; 0 Comments.
- 30 Nov 2007
- What Do You Think?
What Is Management’s Role in Innovation?
Online forum closed. It's an open question whether management, as it is currently practiced, contributes much to creativity and innovation, says HBS professor Jim Heskett. What changes will allow managers, particularly in larger organizations, to add value to the creative process? What do you think? Closed for comment; 0 Comments.
- 28 Nov 2007
- Research & Ideas
B2B Branding: Does it Work?
Does it make sense for B2B companies to take a cue from consumer companies and invest in brand awareness? Many B2B CEOs say no, but HBS marketing professor John Quelch disagrees in his latest blog entry. Key concepts include: Most B2B marketers cannot economically address thousands of small businesses using the traditional direct sales force. If left unattended, individual managers will each do their own ad hoc marketing. B2B marketers are realizing that developing brand awareness among their customers' customers can capture a larger share of channel margins and build loyalty that can protect them against lower-priced competitors. Closed for comment; 0 Comments.
- 26 Nov 2007
- Research & Ideas
Best Practices of Global Innovators
Corporate R&D labs used to be the key for companies to create competitive advantage. But in the 21st century, innovation is moving out of the lab and across the globe. That's why Harvard Business School professor Alan MacCormack and his research collaborators believe that a real source of competitive advantage is skill in managing innovation partnerships. Key concepts include: Innovation is increasingly driven through collaborative teams due to product complexity, availability of a low-cost but highly skilled labor pool, and advances in development tools. Collaboration adds to the top and bottom lines by shortening development lead times, increasing capacity, and facilitating access to skills, capabilities, and intellectual property that a firm does not possess internally. Many efforts at innovation collaboration fail because they begin with the goal of lowering costs. Successful collaboration programs develop a collaboration strategy that is aligned to their business needs. They also organize for effective collaboration and invest in building collaborative capabilities. Closed for comment; 0 Comments.
See No Evil: When We Overlook Other People’s Unethical Behavior
Even good people sometimes act unethically without their own awareness. This paper explores psychological processes as they affect the ethical perception of others' behavior, and concludes with implications for organizations. First, there is a tendency for people to overlook unethical behavior in others when recognizing such behavior would harm them. Second, people might readily ignore unethical behavior when others have an agent do their dirty work for them. Third, gradual moral decay leads people to grow comfortable with behavior to which they would otherwise object. Fourth, the tendency to value outcomes over processes can lead us to accept unethical processes for far too long. Key concepts include: Most people value ethical decisions and behavior, and strive to be good. Yet psychological processes sometimes lead them to engage in questionable behaviors that are inconsistent with their own values and beliefs. It is common to fail to notice or act on information when dealing with ethically relevant decisions. Organizational leaders must understand these processes and make the structural changes necessary to reduce the harmful effects of human psychological and ethical limitations. Closed for comment; 0 Comments.