Publications
- Forthcoming
- National Bureau of Economic Research
Innovation Policy and the Economy, Volume 16
Abstract—No abstract available.
Publisher's link: http://papers.nber.org/books/lern15-1
- 2015
- International Encyclopedia of the Social & Behavioral Sciences
Modularity and Organizations
Abstract—Modularity describes the degree to which a complex system can be broken apart into subunits (modules) that can be recombined in various ways. Modularity is important for organizations and the economy because the boundaries of organizational units and corporations are likely to match the boundaries of underlying technological modules. (This correspondence is called "mirroring.") In this article, I explain the concept of modularity and describe how systems can be modularized. I then explain why mirroring is likely to be a commonly observed organizational pattern, review the empirical evidence, and conclude with open research questions.
Publisher's link: http://www.hbs.edu/faculty/Pages/item.aspx?num=49262
- Forthcoming
- Journal of Economic Geography
Return Migration and Geography of Innovation in MNEs: A Natural Experiment of On-the-job Learning of Knowledge Production by Local Workers Reporting to Return Migrants
Abstract—I study whether return migrants facilitate knowledge production by local employees working for them at geographically distant R&D locations. Using unique personnel and patenting data for 1,315 employees at the Indian R&D center of a Fortune 500 technology firm, I exploit a natural experiment where the assignment of managers for newly hired college graduates is mandated by rigid HR rules and is uncorrelated to observable characteristics of the graduates. Given this assignment protocol, I find that local employees with returnee managers file disproportionately more U.S. patents. I also find some evidence that return migrants act as a "bridge" to transfer knowledge from the MNE headquarters to the local employees working for them.
Publisher's link: http://www.hbs.edu/faculty/Pages/item.aspx?num=49266
- Forthcoming
- Organizational Behavior and Human Decision Processes
The Highest Form of Intelligence: Sarcasm Increases Creativity Through Abstract Thinking for Both Expressers and Recipients
Abstract—Sarcasm is ubiquitous in organizations. Despite its prevalence, we know surprisingly little about the cognitive experiences of sarcastic expressers and recipients or their behavioral implications. The current research proposes and tests a novel theoretical model in which both the construction and interpretation of sarcasm lead to greater creativity because they activate abstract thinking. Studies 1 and 2 found that both sarcasm expressers and recipients reported more conflict but also demonstrated enhanced creativity following a simulated sarcastic conversation or after recalling a sarcastic exchange. Study 3 demonstrated that sarcasm's effect on creativity for both parties was mediated by abstract thinking and generalizes across different forms of sarcasm. Finally, Study 4 found when participants expressed sarcasm toward or received sarcasm from a trusted other, creativity increased but conflict did not. We discuss sarcasm as a double-edged sword: despite its role in instigating conflict, it can also be a catalyst for creativity.
Publisher's link: http://www.hbs.edu/faculty/Pages/item.aspx?num=49283
- Forthcoming
- Innovation Policy and the Economy
Financing Entrepreneurial Experimentation
Abstract—The fundamental uncertainty of new technologies at their earliest stages implies that it is virtually impossible to know the true potential of a venture without learning about its viability through a sequence of investments over time. We show how this process of experimentation can be particularly valuable in the context of entrepreneurship because most new ventures fail completely, and only a few become extremely successful. We also shed light on important costs to this process of experimentation and demonstrate how these can fundamentally alter both the rate and direction of startup innovation across industries, regions, and periods of time.
Publisher's link: http://www.hbs.edu/faculty/Pages/item.aspx?num=49256
- Spring 2015
- Journal of Applied Corporate Finance
Integrated Reporting and Investor Clientele
Abstract—In this paper, I examine the relation between Integrated Reporting (IR) and the composition of a firm's investor base. I hypothesize and find that firms that practice IR have a more long-term oriented investor base with more dedicated and fewer transient investors. This result is more pronounced for firms with high growth opportunities, not controlled by a family, operating in "sin" industries, and exhibiting commitment to IR. I find that the results are robust to the inclusion of firm fixed effects, control for the quantity of sustainability disclosure, and alternative ways of measuring IR. Moreover, I show that investor activism on environmental or social issues or a large number of concerns about a firm's environmental or social impact leads a firm to practice more IR and that this investor or crisis-induced IR affects the composition of a firm's investor base. Finally, firms that report more information about the different forms of capital or follow more closely the guiding principles as described in the IR Framework of the IIRC exhibit a more long-term oriented investor base.
Publisher's link: http://www.hbs.edu/faculty/Pages/item.aspx?num=49250
Working Papers
Bottlenecks, Modules and Dynamic Architectural Capabilities
Abstract—How do firms create and capture value in large technical systems? In this paper, I argue that the points of both value creation and value capture are the system's bottlenecks. Bottlenecks arise first as important technical problems to be solved. Once the problem is solved, the solution in combination with organizational boundaries and property rights can be used to capture a stream of rents. The tools a firm can use to manage bottlenecks are, first, an understanding of the technical architecture of the system, and, second, an understanding of the industry architecture in which the technical system is embedded. Although these tools involve disparate bodies of knowledge, they must be used in tandem to achieve maximum effect. Dynamic architectural capabilities provide managers with the ability to see a complex technical system in an abstract way and change the system's structure to manage bottlenecks and modules in conjunction with the firm's organizational boundaries and property rights.
Download working paper: http://www.hbs.edu/faculty/Pages/item.aspx?num=48180
How Do Customers Respond to Increased Service Quality Competition?
Abstract—When does increased service quality competition lead to customer defection, and which customers are most likely to defect? Our empirical analysis of 82,235 customers exploits the varying competitive dynamics in 644 geographically isolated markets in which a nationwide retail bank conducted business over a five-year period. We find that customers defect at a higher rate from the incumbent following increased service quality (price) competition only when the incumbent offers high (low) quality service relative to existing competitors in a local market. We provide evidence that these results are due to a sorting effect, whereby firms trade off service quality and price, and in turn, the incumbent attracts service (price) sensitive customers in markets where it has supplied relatively high (low) levels of service quality in the past. Furthermore, we show that it is the high quality incumbent's most profitable customers that are the most attracted by superior quality alternatives. Our results appear to have long-run implications whereby sustaining a high level of service quality is associated with the incumbent attracting and retaining more profitable customers over time.
Download working paper: http://www.hbs.edu/faculty/Pages/item.aspx?num=39914
Build It, Buy It Or Both? Rethinking the Sourcing of Advertising Services
Abstract—This paper provides an update on the current state of in-house agencies. Whereas traditional consideration of internalizing advertising services was framed as a binary choice of build or buy, today's advertisers frequently pursue hybrid policies of build and buy to procure the customized bundle required to develop, produce, and implement relevant, resonant promotional campaigns. Increasing numbers of advertisers are discovering that the demand for advertising and marketing services is best served through the coordination and integration of resources from both inside and outside the company, rather than assuming that these options are mutually exclusive. A review of advertising industry history reveals why internal agencies have long operated in the shadows of their external counterparts and how the former organization form has evolved over time. The core competencies underlying the contemporary in-house agency model are analyzed, and the competitive position that in-house agencies presently occupy in relation to external providers is assessed. Two case examples of successful internal/external agency collaboration are presented. Finally, recommendations are offered for advertisers seeking to bring their internal and external agency resources together and arrive at a more collaborative operating model for advertising services.
Download working paper: http://www.hbs.edu/faculty/Pages/item.aspx?num=49259
Cases & Course Materials
- Harvard Business School Case 215-051
Thomas Cook Group on the Brink (B): Transformation Year 1 Results
Analyzes the results of the Thomas Cook turnaround plan after the first year under Harriet Green's leadership (November 2013).
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- Harvard Business School Case 215-052
Thomas Cook Group on the Brink (C): Transformation Year 2 Results
Analyzes the results of the Thomas Cook turnaround plan after the second year under Harriet Green's leadership (November 2014).
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https://cb.hbsp.harvard.edu/cbmp/product/215052-PDF-ENG
- Harvard Business School Case 415-038
Clifford Chance: Women at Work
It was October 2013, and global law firm Clifford Chance was coming under fire for the second time in less than a year for reputedly failing to provide a supportive work environment for its female associates. A memo entitled "Speaking Effectively" was just issued to the U.S. offices of the firm and immediately sparked controversy, as some female associates claimed that the gender-specific advice in the memo was condescending and sexist. This controversy came close on the heels of a memo released in November 2012, in which a third-year associate gave her resignation and explained why she was leaving the firm by detailing her unsustainable schedule as both a corporate lawyer and a mother to young children. Both memos were leaked on the Internet, prompting bloggers, media outlets, and the public to chime in with their own opinions as to whether the firm was sexist. How should Clifford Chance have responded to these allegations? Was the firm sexist, or were things being taken out of context and blown out of proportion? If the firm determined that it needed to take heed and create a more inclusive culture that better met the needs of its female associates, where should it begin? Finally, how were the lessons learned in this case applicable to corporate America in 2014, where only 5.2% of Fortune 500 CEOs and 16.9% of board members in the United States were women?
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- Harvard Business School Case 315-105
Tough Choices at the Gómez Lobster Cooperative
This case is designed to be used with HBS Case, 315-074: "Industry Self-Regulation: Sustaining the Commons in the 21st Century."
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https://cb.hbsp.harvard.edu/cbmp/product/315105-PDF-ENG
- Harvard Business School Case 315-106
Advanced Leadership Field Perspectives: Detroit
No abstract available.
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- Harvard Business School Case 415-044
The Board of Directors at Market Basket
The firing of Market Basket CEO Arthur T. Demoulas by his cousin, Arthur S. Demoulas, and directors affiliated with him set off employee protests throughout the grocery store chain. Industry specialists estimated that Market Basket was losing close to $10 million each day in lost business and inventory due to the protests. A long history of legal battles had destroyed the relationship between the families of the two cousins. This case describes the complexities of corporate governance for a family owned organization.
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https://cb.hbsp.harvard.edu/cbmp/product/415044-PDF-ENG
- Harvard Business School Case 415-010
Dutch Bros. Coffee: A Compelling Future
Travis Boersma, cofounder and president of the Dutch Bros. coffee chain, faces three operational decisions that will shape the company's growth trajectory and distinctive culture. First, should they offer a specialty coffee at a subset of their stores in one region where customers are clamoring for it, contrary to the company's commitment to a consistent experience across all stores? Second, as the company continues to expand, should they roll out an electronic point-of-sale system, which has interfered with customer service in prior pilot tests? Third, how can Dutch Bros. provide opportunities for their best employees, who aspire to own and operate their own franchise stores but often lack the expertise and funding to do so?
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- Harvard Business School Case 315-059
Clothing Chris and Chrissie
No abstract available.
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- Harvard Business School Case 715-456
Apple Inc. in 2015
At the end of 2014, Apple Inc. recorded the most profitable quarter of any firm in history, and its market capitalization soon topped $700 billion. "Apple Inc. in 2015" explores the history of Apple, its successes under Steve Jobs, its continued growth under Tim Cook, and the challenges facing the company in 2015. With iPod sales continuing their freefall, tablet sales in decline, and the Macintosh's market share remaining small, Apple was increasingly dependent on the iPhone to drive its growth. Could Cook continue Apple's dominance in the smartphone market in the face of growing competition? Could he revitalize the iPad business, become a leader in payments with Apple Pay, and replicate Apple's success in other device categories, such as the Apple Watch, the first new product the company had released since 2010?
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- Harvard Business School Case 715-452
Coffee Wars in India: Starbucks 2012
Starbucks entered India in late 2012. This case explores Starbucks' globalization strategy, its success in China, and its vision for India. The case asks whether Starbucks can replicate its success in China in India.
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https://cb.hbsp.harvard.edu/cbmp/product/715452-PDF-ENG