First Look

Abstract—In less than a decade, the Internet went from being a series of loosely connected networks used by universities and the military to the powerful commercial engine it is today. This book describes how many of the key innovations that made this possible came from entrepreneurs and iconoclasts who were outside the mainstream—and how the commercialization of the Internet was by no means a foregone conclusion at its outset. Shane Greenstein traces the evolution of the Internet from government ownership to privatization to the commercial Internet we know today. This is a story of innovation from the edges. Greenstein shows how mainstream service providers that had traditionally been leaders in the old-market economy became threatened by innovations from industry outsiders who saw economic opportunities where others didn’t—and how these mainstream firms had no choice but to innovate themselves. New models were tried: some succeeded, some failed. Commercial markets turned innovations into valuable products and services as the Internet evolved in those markets. New business processes had to be created from scratch as a network originally intended for research and military defense had to deal with network interconnectivity, the needs of commercial users, and a host of challenges with implementing innovative new services.

Publisher's link: http://www.hbs.edu/faculty/Pages/item.aspx?num=49708

Abstract—ient-centered outcomes measurement provides healthcare organizations with crucial information for increasing value for patients; however, organizations have struggled to obtain outcomes data from electronic health record (EHR) systems. This study describes how Texas Children’s Hospital customized a commercial EHR system and assembled a cross-functional team to capture outcomes data using existing functionality. Prior to its installation and customization, no surgical subspecialties besides the congenital heart and transplant surgery groups conducted prospective, patient outcomes measurement, but by 2015, the outcomes of over 1,300 unique patients with supracondylar fractures, cleft lip and/or palate, or voiding dysfunction had been tracked. Key factors for integrating outcomes measurement into the clinical workflow include ongoing communication between cross-functional teams composed of clinicians and technical professionals, an iterative design process, organizational commitment, and prioritizing measurement as early as possible during EHR optimization.

Publisher's link: http://www.hbs.edu/faculty/Pages/item.aspx?num=49754

Abstract—The purpose of this study is to understand the identity of the Nobel Prize as a corporate heritage brand and its management challenges. Design/methodology/approach—An in-depth case study analysed within a heritage brand model and a corporate brand identity framework. Findings—The Nobel Prize is a corporate heritage brand—one whose value proposition is based on heritage—in this case “achievements for the benefit of mankind” (derived directly from Alfred Nobel’s will). It is also defined as a “networked brand,” one where four independent collaborating organisations around the (Nobel) hub create and sustain the Nobel Prize’s identity and reputation, acting as a “federated republic.” Research limitations/implications—The new and combined application of the Heritage Quotient framework and the Corporate Brand Identity Matrix in the Heritage Brand Identity Process (HBIP) offers a structured approach to integrate the identity of a corporate heritage brand. In a networked situation, understanding the role of stewardship in collaborating organisations is essential: the network entities maintain their own identities and goals but share common values of the network hub. Practical implications—The integrated frameworks (HBIP) provides a platform for managing a corporate heritage brand. Originality/value—This is the first field-based study of the Nobel Prize from a strategic brand management perspective.

Publisher's link: http://www.hbs.edu/faculty/Pages/item.aspx?num=49747

Abstract—In recent decades, technological progress in information and communication technology and falling trade barriers have led firms to retain within their boundaries and in their domestic economies only a subset of their production stages. A key decision facing firms worldwide is the extent of control to exert over the different segments of their production processes. Building on Antràs and Chor (2013), we describe a property-rights model of firm boundary choices along the value chain. To assess the evidence, we construct firm-level measures of the upstreamness of integrated and non-integrated inputs by combining information on the production activities of firms operating in more than 100 countries with Input-Output tables. In line with the model's predictions, we find that whether a firm integrates upstream or downstream suppliers depends crucially on the elasticity of demand for its final product. Moreover, a firm's propensity to integrate a given stage of the value chain is shaped by the relative contractibility of the stages located upstream versus downstream from that stage. Our results suggest that contractual frictions play an important role in shaping the integration choices of firms around the world.

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Abstract—It may be possible to offer people a new understanding of their best-self concepts, leading to positive personal and social change. We developed theory about how best-self activation can lead to both immediate and long-term outcomes through recursion, interaction, and subjective construal between the self concept and the social system. In two lab experiments and a field experiment in a global consulting firm, we tested the hypotheses by offering people reflections on times they were at their best. Results confirmed that best-self activation inspired improvements in people’s emotions, resistance to disease, resilience to stress and burnout, creative problem solving, performance under pressure, and relationships with their employer. Results also revealed that best-self activations are more effective in creating improvements when they feature information from one’s social network rather than personal reflections.

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Abstract—We develop a model of monetary policy with two key features: (i) the central bank has private information about its long-run target for the policy rate and (ii) the central bank is averse to bond-market volatility. In this setting, discretionary monetary policy is gradualist, or inertial, in the sense that the central bank only adjusts the policy rate slowly in response to changes in its privately observed target. Such gradualism reflects an attempt to not spook the bond market. However, this effort ends up being thwarted in equilibrium, as long-term rates rationally react more to a given move in short rates when the central bank moves more gradually. The same desire to mitigate bond-market volatility can lead the central bank to lower short rates sharply when publicly observed term premiums rise. In both cases, there is a time-consistency problem, and society would be better off appointing a central banker who cares less about the bond market. We also discuss the implications of our model for forward guidance once the economy is away from the zero lower bound.

Download working paper: http://www.hbs.edu/faculty/Pages/item.aspx?num=49240

Abstract—This paper theorizes a relationship between legitimacy building and learning for new firms in nascent industries. We conducted a longitudinal study of a new firm in the nascent smart cities industry and discovered that the firm’s legitimacy-building activities provided benefits (leading diverse stakeholders to value the new firm and the new industry) but also created risks. Specifically, legitimacy building relied on and reinforced individual-level behaviors (an external focus and an advocacy orientation) that inhibited the firm’s ability to learn. We propose that legitimacy building can comprise an advocacy trap that blocks meaningful learning vital to the success of a new firm. By suggesting a downside to legitimacy building and identifying a new barrier to learning, rooted in cognition and especially salient in new firms and nascent industries, our discovery opens new avenues for research on entrepreneurship and organizational learning.

Download working paper: http://www.hbs.edu/faculty/Pages/item.aspx?num=40160

In 2015, Riot Games, the maker of the top PC game League of Legends, considers its growth strategy as it moves into a new campus in Los Angeles.

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No abstract available.

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Late in 2013, KidZania’s management team is meeting at the company’s Mexico City headquarters to discuss the possible roll-out to other locations of new experiential learning concepts tested at its Cuicuilco (Mexico) kids’ edutainment park. As part of an effort to build a global network of such ventures, proposals for new franchises in Doha and London as well as the format for the first KidZania to be located in the U.S. were under consideration. Of greater importance was a discussion of just what a business definition of “experiential learning for kids” meant for the future development of the company.

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The World Health Organization defines health as "a state of complete physical, mental, and social well-being and not merely the absence of disease and infirmity." For many Americans, the World Health Organization's definition of true health seems unattainable, given the multitude of complex problems plaguing the U.S. health system. The United States over the last 50 years has focused most of its health resources on providing medical care for individuals after they fall ill. It has placed far less emphasis on the non-medical determinants of health and the prevention of disease for the lives of its citizens. The result—an infamously expensive "sick care system" that does not perform as well as other wealthy countries across key measures. Americans of all socioeconomic stripes experience poorer health outcomes than their rich country peers. Such trends undermine U.S. international competitiveness. This background note digs deeper into these trends and their origins, the barriers hindering change, and past and current reforms, including the 2010 Affordable Care Act. If fully implemented, the controversial act will help the United States push beyond its myopic sick care focus towards the WHO's true health vision by creating a health system that integrates medical care with public health and prevention for all Americans.

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No abstract available.

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On April 24, 2013, the Rana Plaza factory building collapsed in Dhaka, the capital of Bangladesh. Over 1,100 people were killed in the worst industrial accident since the Union Carbide plant gas leak in Bhopal, India. Most of the victims worked for garment factories, whose primary clients were European, U.S., and Canadian firms. Export contracts to such firms had helped Bangladesh become the world's second largest clothing exporter. Rana Plaza was not the first tragedy to occur in Bangladesh's garment industry, and without intervention, more might follow. International brand owners, domestic and foreign governments, labor unions and non-governmental organizations (NGOs), stepped up to discuss their responsibilities for improving conditions for Bangladeshi garment workers.

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In 2015, Apple CEO Tim Cook knew that Apple, despite its phenomenal success, needed to continue to innovate in new product areas in order to continue its momentum into the future. This case explores three new (actual or potential) product offerings from Apple: the Apple Watch, Apple TV, and the Apple Car. All three categories represented significant opportunities and challenges. The smartwatch category was new and poised for growth when Apple released its watch in April 2015, but the use case remained uncertain, and Apple would face a strong challenge from Android-based competitors. The television industry, facing growing dissatisfaction with traditional cable packages and the rise of online streaming, was ripe for disruption, but would Apple be able to build a competitive offering? The automotive industry, with the rise of electric cars and autonomous driving technology, was also on the cusp of significant changes, but the engineering and economic challenges of the industry made any move into that space a risky bet.

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In May 2014, Shunfeng Express (SF), China's leading express delivery firm, opened the first 500 of several thousand Heike stores, which allowed consumers to buy and try out SF's own e-commerce offerings, in addition to other services. As an example of China's "online-to-offline" trend in e-commerce, Heike stores allowed SF to leverage its logistics and IT expertise to differentiate itself from its rivals in express delivery. As yet unclear was whether Heike stores offered consumers an irresistible value proposition.

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