First Look

Abstract—This research demonstrates that, under certain circumstances, people wearing unconventional attire are perceived as having higher status and greater competence.

Abstract—In this article, we provide a synthesizing framework that we call the "dynamic trajectories" framework to study the evolution of multinational enterprises (MNEs) in host countries over time. We argue that a change in the policy environment in a host country presents an MNE with two sets of interrelated decisions. First, the MNE has to decide whether to enter, exit, or stay in the host country at the onset of each policy epoch; second, conditional on the first choice, it has to decide on its local responsiveness strategy at the onset of each policy epoch. India, which experienced two policy shocks-shutting down to MNEs in 1970 and then opening up again in 1991-offers an interesting laboratory to explore the "dynamic trajectories" perspective. We collect and analyze a unique dataset of all entry and exit events for Fortune 50 and FTSE 50 firms (as of 1991) in India in the period from 1858 to 2013 and, additionally, we document detailed case studies of four MNEs (that arguably represent outliers in our sample).

Abstract—We examine the profitability and implications of online discount vouchers, a relatively new marketing tool that offers consumers large discounts when they prepay for participating firms' goods and services. Within a model of repeat experience good purchase, we examine two mechanisms by which a discount voucher service can benefit affiliated firms: price discrimination and advertising. For vouchers to provide successful price discrimination, the valuations of consumers who have access to vouchers must generally be lower than those of consumers who do not have access to vouchers. Offering vouchers tends to be more profitable for firms that are patient or relatively unknown and for firms with low marginal costs. Extensions to our model accommodate the possibilities of multiple voucher purchases and firm price re-optimization. Despite the potential benefits of online discount vouchers to certain firms in certain circumstances, our analysis reveals the narrow conditions in which vouchers are likely to increase firm profits.

Publisher's link: http://www.benedelman.org/publications/groupon-2014-03-01.pdf

Abstract—This chapter draws on theories of entrepreneurship and history to explore the ways in which historical processes play an integral role in entrepreneurship. It builds off the plea by Joseph Schumpeter for an active exchange between historical approaches and theories of entrepreneurship and its role in the process of historical change. Sadly, the field of entrepreneurship as it has evolved in recent decades has become narrow and is often confined to little more than econometric testing of large datasets concerning high tech entrepreneurs in the United States. This chapter makes the case for the study of entrepreneurship to become bold again and transformational through re-engagement with history. Historical theories of time, context, and change are applied to entrepreneurship theory to demonstrate how they illuminate aspects of the entrepreneurial process that traditional social science reasoning about behavior and cognition miss. The chapter seeks to establish a theoretical foundation for a turn towards historicism in entrepreneurial studies, which is already partly underway. The authors stress that the path will not be easy, but that the prize will be a richer and deeper understanding of entrepreneurship and how it shapes and reshapes the modern world.

Abstract—Despite racking up impressive accomplishments, you feel frustrated with your career-convinced you should be achieving more. You may even wish you had chosen a different career altogether. These feelings often stem from a common error: buying into others' definitions of success. To reach your potential, Kaplan suggests taking a deeply personal look at how you define success.

Publisher's link: http://hbr.org/product/hbr-guide-to-getting-the-mentoring-you-need/an/11959E-KND-ENG

Abstract—Recent evidence suggests that Americans underestimate wealth inequality in the United States and favor a more equal wealth distribution (Norton & Ariely, 2011). Does this pattern reflect ideological dynamics unique to the United States, or is the phenomenon evident in other developed economies-such as Australia? We assessed Australians' perceived and ideal wealth distributions and compared them to the actual wealth distribution. Although the United States and Australia differ in the degree of actual wealth inequality and in cultural narratives around economic mobility, the Australian data closely replicated the United States findings. Misperceptions of wealth inequality as well as preferences for more equal distributions may be common across developed economies. In addition, beliefs about wealth distribution only weakly predicted support for raising the minimum wage, suggesting that attitudes toward inequality may not translate into preferences for redistributive policies.

Publisher's link: http://www.hbs.edu/faculty/Publication%20Files/norton%20neal%20govan%20ariely%20holland_d098df44-046c-40ea-b243-234922e2cdf2.pdf

Abstract—Flexible work accommodations provided by employers purport to help individuals struggling to manage work and family demands. The underlying model for change is accommodation-helping individuals accommodate their work demands with no changes in the structure of work or cultural expectations of ideal workers. The purpose of this article is to derive a Work Redesign Model and compare it with the Accommodation Model. This article centers around two change initiatives-Predictability, Teaming and Open Communication, and Results Only Work Environment-that alter the structure and culture of work in ways that enable better work and better lives.

Abstract—Reducing tax evasion is a key challenge for governments around the world, particularly in developing countries. This paper presents a methodology to generate information to optimize audit strategies. Randomly selected taxpayers receive a deterrence message. Comparing their subsequent tax payments to a control group allows estimating what types of taxpayers are more likely to respond to an increase in perceived audit probability. This information can be used to target audits toward taxpayers that respond particularly strongly and to construct risk indicators to predict taxpayers' responses. We show results from an application in Chile and describe lessons learned during the implementation.

Abstract—Context: Physicians can demonstrate mastery of the knowledge that supports continued clinical competence by passing a Maintenance of Certification exam. Exam performance depends on professional learning and development, which may be enhanced by informal routine interactions with colleagues. Some physicians, such as those in solo practice, may have less opportunity for peer interaction, negatively influencing their exam performance. Objective: To determine the relationship between level of peer interaction, group and solo practice, and maintenance of certification exam performance. Design, Setting, and Participants: Longitudinal cohort study of 568 physicians taking the 2008 maintenance of certification exam. Survey responses reporting level of physicians' peer interactions and practice type were related to maintenance of certification exam scores, controlling for initial Qualifying Exam scores, practice type, and personal characteristics. Main Outcome Measure: Maintenance of certification exam scores and exam pass-fail status. Results: Of the 568 physicians in the study sample, 557 (98%) passed the exam. Higher levels of peer interaction were associated with a higher score (β, 0.91, 95% CI 0.31-1.52) and higher likelihood of passing the exam (OR 2.58, 95% CI, 1.08-6.16). Physicians in solo practice (vs. group practice) had fewer peer interactions (β, -0.49, 95% CI, -0.64 to -0.33), received lower scores (β -1.82, 95% CI, -2.94- -0.82), and were less likely to pass the exam (OR 0.22, 95% CI, 0.06-0.77). Level of peer interaction moderated the relationship between solo practice and maintenance of certification exam score: solo practitioners with high levels of peer interaction achieved maintenance of certification exam performance on par with group practitioners. Conclusion: Physicians in solo practice had poorer maintenance of certification exam performance. However, solo practitioners who reported high levels of peer interaction performed as well as those in group practice. Peer interaction is important for professional learning and quality care.