Publications
- September 2014
- Social Entrepreneurship and Research Methods
Building an Infrastructure for Empirical Research on Social Enterprise: Challenges and Opportunities
Abstract—Purpose: Despite the increase in empirical studies of social enterprise in management and organization research, the lack of a cohesive knowledge base in this area is concerning. In this chapter, we propose that the underdevelopment of the attendant research infrastructure is an important, but oft-overlooked, barrier to the development of this body of empirical research. Design/methodology: We explore this proposition through a review of 55 empirical studies of social enterprises published in the last 15 years, in which we examine the mix and trajectory of research methods used and the research infrastructure on which these studies depend. Findings: We find that empirical research has used social enterprise largely as a context for theory development, rather than deductively testing, and thus building upon, existing theories. The latter pattern is due largely to the absence of two key dimensions of infrastructure: well-defined samples and consistent, operational measures of social enterprise success. Finally, we identify present trends along both dimensions that contribute to changing the research infrastructure for empirical social enterprise research. Originality/value: Our analysis highlights the critical need for research infrastructure to advance empirical research on social enterprise. From this perspective, research infrastructure-building provides an important opportunity for researchers interested in social enterprise and others interested in enabling high-quality empirical research in this setting.
- September 2014
- Regulation & Governance
Codes in Context: How States, Markets, and Civil Society Shape Adherence to Global Labor Standards
Abstract—Transnational business regulation is increasingly implemented through private voluntary programs-like certification regimes and codes of conduct-that diffuse global standards. But little is known about the conditions under which companies adhere to these standards. We conduct one of the first large-scale comparative studies to determine which international, domestic, civil society, and market institutions promote supply chain factories' adherence to the global labor standards embodied in codes of conduct imposed by multinational buyers. We find that suppliers are more likely to adhere when they are embedded in states that participate actively in the ILO treaty regime and that have stringent domestic labor law and high levels of press freedom. We further demonstrate that suppliers perform better when they serve buyers located in countries where consumers are wealthy and socially conscious. Taken together, these findings suggest the importance of overlapping state, civil society, and market governance regimes to meaningful transnational regulation.
Publisher's link: http://ssrn.com/abstract=2178540
Working Papers
The Real Effects of Capital Controls: Financial Constraints, Exporters, and Firm Investment
Abstract—In aftermath of the global financial crisis of 2008-2009, emerging-market governments have increasingly restricted foreign capital inflows. The data show a statistically significant drop in cumulative abnormal returns for Brazilian firms following capital control announcements. Large firms and the largest exporting firms appear less negatively affected compared to external-finance-dependent firms, and capital controls on equity have a more negative announcement effect than those on debt. Real investment falls following the controls. Overall, the results suggest that capital controls segment international financial markets, increase the cost of capital, reduce the availability of external finance, and lower firm-level investment.
Download working paper: http://www.hbs.edu/faculty/Publication%20Files/15-016_dffd8931-f668-4e0c-80d1-0560cea51e19.pdf
How Does Risk Management Influence Production Decisions? Evidence from a Field Experiment
Abstract—Weather is a key source of income risk, particularly in emerging market economies. This paper uses a randomized controlled trial involving a sample of Indian farmers to study how an innovative rainfall insurance product affects production decisions. We find that insurance provision induces farmers to shift production towards higher-return but higher-risk cash crops, particularly among educated farmers. Our results support the view that financial innovation can mitigate the real effects of uninsured production risk. Addressing the puzzle of low adoption, we show that payouts improve trust in the product and that farmers shield payouts from claims by relatives.
Download working paper: http://www.hbs.edu/faculty/Publication%20Files/13-080_138f3c30-b5c2-4a97-bf56-9821f89fcbd3.pdf
Lifting the Veil: The Benefits of Cost Transparency
Abstract—A firm's costs are typically tightly guarded secrets. However, across six laboratory experiments and a field study we identify when and why firms benefit from revealing cost information to consumers. Disclosing the variable costs associated with a product's production heightens consumers' attraction to the firm, which in turn increases purchase interest (Experiments 1-3). In fact, cost transparency has a stronger impact on purchase interest than emphasizing the firm's personal relationship with the consumer-a much more involved marketing tactic (Experiment 4). Further experiments explore boundary conditions and suggest that the benefit of cost transparency weakens as firms increase price relative to costs and when markups are made salient (Experiments 5-6). Consistent with our lab findings, a natural experiment with an online retailer demonstrates that cost transparency improves sales. In particular, cost transparency led to a 44% increase in daily unit sales. This research implies that by revealing costs-typically tightly guarded secrets-marketers can potentially improve both brand attraction and sales.
Download working paper: http://ssrn.com/abstract=2498174
Who Runs the International System? Power and the Staffing of the United Nations Secretariat
Abstract—National governments frequently pull strings to get their citizens appointed to senior positions in international institutions. We examine, over a 60-year period, the nationalities of the most senior positions in the United Nations Secretariat, ostensibly the world's most representative international institution. The results indicate which nations are successful in this zero-sum game and what national characteristics correlate with power in international institutions. The most overrepresented countries are small, rich democracies like the Nordic countries. Statistically, democracy, investment in diplomacy, and economic/military power are predictors of senior positions―even after controlling for the U.N. staffing mandate of competence and integrity. National control over the United Nations is remarkably sticky; however, the influence of the United States has diminished as U.S. ideology has shifted away from its early allies. In spite of the decline in U.S. influence, the Secretariat remains pro-American relative to the world at large.
Download working paper: http://ssrn.com/abstract=2498737
Cases & Course Materials
- Harvard Business School Case 814-123
Making Progress at IDEO
This case focuses on different types of client relationships at IDEO, the value of these relationships for IDEO and clients, and the implications for IDEO designers' everyday experience of work. As new types of client work have shifted away from the more classic design projects, there may be accompanying shifts in designers' engagement and motivation. The case illustrates the importance of progress and meaning to IDEO designers, and it poses the following questions: which types of client work keep designers most motivated and engaged at work, and what are the implications for the client relationships IDEO should pursue?
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http://hbr.org/product/Making-Progress-at-IDEO/an/814123-PDF-ENG
- Harvard Business School Case 515-702
Marquee: Reinventing the Business of Nightlife
In January 2013, nightlife impresarios Jason Strauss and Noah Tepperberg are celebrating the re-opening of their famed New York City-based nightclub Marquee. While most clubs are over within their first one and a half years, Strauss and Tepperberg managed to keep Marquee one of NYC's hottest clubs for almost nine years. Meanwhile, they significantly expanded their portfolio of clubs in New York City, Las Vegas, and abroad. Now, after a costly renovation of Marquee New York City, would their investment pay off? Was it a wise idea to model the revamped club after its namesake in Las Vegas that had become North America's highest-grossing club by focusing on electronic dance music and featuring a high-profile DJ every night? Could Strauss and Tepperberg make the seemingly risky economics-which involved placing large bets on superstar DJs-work in a very different market?
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http://cb.hbsp.harvard.edu/cb/web/search_results.seam?Ntt=515702
- Harvard Business School Case 215-008
Thomas Cook Group on the Brink
Harriett Green, the newly appointed CEO of Thomas Cook Group, faces a daunting set of business and financial challenges at the 171-year old UK travel services company. The company has lost almost £600 million in the last three quarters, has seen its stock price fall from 230 pence to a low of 8.8 pence in the past two years, and had seen its bonds trade down to as little as 40% of face value. In just a few weeks the company's license to operate is to be reviewed by the United Kingdom's Civil Aviation Authority, competitors are publicly questioning the company's viability, and seasonal working capital needs are about to peak. With the company's very survival at stake, Green must devise a turnaround plan that will return the company to financial health. Any plan must address the company's high cost structure, raise substantial new capital, fix the balance sheet, create a profitable growth strategy, and build a more effective organization and culture. But achieving all of these objectives within the short time available will be a major challenge.
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http://hbr.org/product/Thomas-Cook-Group-on-the-/an/215008-PDF-ENG
- Harvard Business School Case 807-025
eClinicalWorks: The Paths to Growth
In January 2006, eClinicalWorks (eCW) had an acquisition opportunity that could fundamentally change the way they had done business since the inception of the company in 1999. eClinicalWorks was a privately run business in the healthcare information technology field that took in $25 million in revenue in 2005. Revenues for 2006 were projected to reach $40 million. This successful electronic medical record (EMR) company had grown thanks to its reliable software and responsive customer service. The company had achieved this growth without the help of any outside financing. The five co-founders of eCW, who treated each other like an extended family, invested years of sweat equity and hard work to shape eCW as they wanted. They were also proud of their company culture, which de-emphasized traditional company hierarchies and encouraged independent thinking and cooperative working arrangements across departments. Keeping the company private, in their view, had helped them to maintain this culture. The opportunity to acquire another EMR company offered eCW the chance to grow quickly in an industry that is estimated to take in more than $40 billion in overall revenues in 2007. But this acquisition would require outside financing of some sort. Was this the moment to accelerate the rate of growth to which eCW had become accustomed-catching up with, rather than anticipating, how their customer base would expand? Or should they maintain the same approach that had worked so well since 1999?
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http://hbr.org/product/eClinicalWorks--The-Paths/an/807025-PDF-ENG
- Harvard Business School Case 214-103
Focus Financial Partners and the U.S. RIA Industry in 2014
No abstract available.
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http://cb.hbsp.harvard.edu/cb/web/search_results.seam?Ntt=214103