{"title":"Can Informal Communication Networks Disrupt Coordination in New Product Development Projects?","authors":"Manuel E. Sosa, Martin Gargiulo, C. Rowles","doi":"10.2139/ssrn.1728658","DOIUrl":"https://doi.org/10.2139/ssrn.1728658","url":null,"abstract":"This paper investigates how the structure of the informal communication network that results from efforts to coordinate task interdependence between design teams in complex product development projects moderates the effect of task interdependence on interteam communication. Drawing on theoretical mechanisms from the social network and knowledge transfer literature, as well as on recent empirical advances in exponential random graphs models of social networks, we examine how the presence of a common third party in the communication network affects the likelihood of technical communication between interdependent teams designing the components of a large commercial aircraft engine. Although task interdependence has a strong and significant effect on the likelihood of communication between teams, this effect is moderated by the presence of common third parties. The nature of this moderation depends on the position of the common third party within the triadic communication structure. When the common third party seats in the middle of a communication chain between the potential source and the potential recipient of technical communication, its presence increases the likelihood of communication between these two teams. However, when the communication between the source and recipient can trigger cyclic exchanges between the three teams, the presence of the third party reduces the likelihood of communication between the two interdependent teams, increasing the risk of coordination disruptions. We discuss the implications of our findings on the literature of intraorganizational networks in new product development.","PeriodicalId":122208,"journal":{"name":"INSEAD Working Paper Series","volume":"2020 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-02-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133951187","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"M&A Portfolios and Market Returns","authors":"T. Evgeniou","doi":"10.2139/ssrn.2546255","DOIUrl":"https://doi.org/10.2139/ssrn.2546255","url":null,"abstract":"M&A activity and the returns of targets and acquirers may provide information about both the companies involved and the overall market conditions. This paper shows evidence that a number of M&A related measurements, such as the number of live deals or the beta of a portfolio of cash targets, may provide predictive information about future returns of the S&P index. It also describes portfolios of M&A targets or acquirers constructed while taking into account risk management constraints, including concentration risk, amount invested, or leverage, as well as deal characteristics and potential competing bids or term improvements, and explores how the performance of these portfolios changes as these constraints are modified.","PeriodicalId":122208,"journal":{"name":"INSEAD Working Paper Series","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-01-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122780790","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Search before Trade-Offs are Known","authors":"Otso Massala, Ilia Tsetlin","doi":"10.2139/ssrn.2289785","DOIUrl":"https://doi.org/10.2139/ssrn.2289785","url":null,"abstract":"Search, broadly defined, is a critical managerial activity. Our contribution is a model of search for multiattribute alternatives, and our focus is on parallel search, where the decision is about the number of alternatives to explore. Most of the search literature considers univariate alternatives, and it can be applied to a multiattribute setting provided that the trade-offs to be used at the final selection stage were known at the search stage. However, uncertainty about trade-offs is likely to occur, especially in settings that involve parallel search e.g., vendor selection, new product development, innovation tournaments. We show that incorporating uncertainty about trade-offs into a model changes its search strategy recommendations. Failing to account for such uncertainty, which is likely in practice, leads to suboptimal search and potentially large losses. For parallel search and a multivariate elliptical e.g., normal distribution of the alternatives, the solution is equivalent to univariate search with appropriately adjusted standard deviation. We prove that, in this setting, the optimal number of alternatives to explore increases if uncertainty about trade-offs increases, and we discuss the value of information about uncertain trade-offs.","PeriodicalId":122208,"journal":{"name":"INSEAD Working Paper Series","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-04-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133492394","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Executive Departures Without Client Losses: The Role of Multiplex Ties in Exchange Partner Retention","authors":"Michelle Rogan","doi":"10.2139/ssrn.2384458","DOIUrl":"https://doi.org/10.2139/ssrn.2384458","url":null,"abstract":"To reduce vulnerability to exchange relationship loss when executives leave, firms often form multiple ties to the same exchange partners. Despite the assumed importance of interorganizational multiplexity for relationship retention, theory and evidence of its effect are lacking. Analysis of a longitudinal sample of client ties of advertising firms confirms that, in general, multiplexity improves retention. However, only relationships that span intraorganizational units with convergent interests reduce the positive effect of advertising agency executive departures on client tie loss. The findings highlight the need to consider the implications of intraorganizational structure for theories of interorganizational relationship retention, and suggest an additional rationale for the persistence of the holding company structure in professional services firms despite limited returns to scale.","PeriodicalId":122208,"journal":{"name":"INSEAD Working Paper Series","volume":"5 1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127451964","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Rights Offerings, Trading, and Regulation: A Global Perspective","authors":"M. Massa, Theo Vermaelen, Moqi Groen-Xu","doi":"10.2139/ssrn.2340504","DOIUrl":"https://doi.org/10.2139/ssrn.2340504","url":null,"abstract":"We study rights offerings using a sample of 8,238 rights offers announced during 1995-2008 in 69 countries. Although shareholders prefer having the option to trade rights, issuers deliberately restrict tradability in 38% of the offerings. We argue that firms restrict rights trading to avoid the execution risk associated with strict prospectus requirements, a prolonged and uncertain transaction process, and the potentially negative information signaled via the price of traded rights. In line with this argument, we find that issuers restricting tradability are those with more to lose from reduced participation or that are more likely to face execution risk.","PeriodicalId":122208,"journal":{"name":"INSEAD Working Paper Series","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-12-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131767353","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Resource Dependence Dynamics: Partner Reactions to Mergers","authors":"Michelle Rogan, H. Greve","doi":"10.1287/orsc.2014.0897","DOIUrl":"https://doi.org/10.1287/orsc.2014.0897","url":null,"abstract":"Research on resource dependence typically takes a static view in which actions and outcomes are determined structurally, but not as responses to the actions of the counterparty in an exchange relation. By contrast, this study addresses a question of power dynamics by examining whether mergers of organizations trigger responses from their common exchange partners. We predict that common exchange partners respond by withdrawing from the relationship and that their responses vary with the availability of alternatives, the value of the relationship, and the relationship history. Using data on advertising agencies, we show that mergers of agencies do trigger reactions from their common clients, and the reactions differ with agency and client characteristics. Extending existing theory and evidence, our results suggest that firms respond to the dynamics of exchange relationships and not only to their structure.","PeriodicalId":122208,"journal":{"name":"INSEAD Working Paper Series","volume":"11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126413219","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Brazil: In Search of a Role on the Global Stage","authors":"Lourdes Casanova, Julian Kassum","doi":"10.2139/SSRN.2712676","DOIUrl":"https://doi.org/10.2139/SSRN.2712676","url":null,"abstract":"This is one of three working papers (with Casanova, Kassum 2013a, and Casanova, Kassum 2013b) to examine the role of Brazil as an emerging global power. Is Brazil’s rise on the global stage barely beginning, or has it already hit a plateau, held back by domestic challenges and the external constraints of the global governance system? In this third paper, we trace the country’s impressive diplomatic take-off and examine the tension between its global ambitions and its inward-looking inclinations.","PeriodicalId":122208,"journal":{"name":"INSEAD Working Paper Series","volume":"62 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-07-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124575007","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Information Elicitation and Influenza Vaccine Production","authors":"S. Chick, Sameer Hasija, Javad Nasiry","doi":"10.2139/ssrn.1990277","DOIUrl":"https://doi.org/10.2139/ssrn.1990277","url":null,"abstract":"We explore the procurement of influenza vaccines by a government whose objective is to minimize the expected social costs (including vaccine, vaccine administration, and influenza treatment costs) when a for-profit vaccine supplier has production yield uncertainty, private information about its productivity (adverse selection) and potentially unverifiable production effort (moral hazard). Timeliness is important – costs for both the supplier and the government procurer may increase if part of the vaccine order is delivered after a scheduled delivery date. We theoretically derive the optimal menu of output-based contracts to minimize information rent, and numerically identify key drivers of that information rent. We also present a novel way to eliminate that information rent if the manufacturer’s effort is also verifiable, a counter intuitive result because the manufacturer has private productivity information. This provides an upper bound on how much a government should spend to monitor the manufacturer’s effort.","PeriodicalId":122208,"journal":{"name":"INSEAD Working Paper Series","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134309367","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Anne Bowers, H. Greve, H. Mitsuhashi, Joel A. C. Baum
{"title":"Competitive Parity, Status Disparity, and Mutual Forbearance: Securities Analysts' Competition for Investor Attention","authors":"Anne Bowers, H. Greve, H. Mitsuhashi, Joel A. C. Baum","doi":"10.2139/ssrn.2241497","DOIUrl":"https://doi.org/10.2139/ssrn.2241497","url":null,"abstract":"Most studies of responses to change in competitive environments focus on competitor-specific adaptations. However, rivals are often acutely aware of one another, and this awareness should influence their competitive behavior. In this study, we focus on three market structures that affect competitive behavior: competitive parity, status disparity, and multipoint contact. In particular, we examine how securities analysts responded to a regulatory discontinuity, Regulation Fair Disclosure (Reg-FD), which promoted competitive parity by eliminating privileged access to proprietary firm information as a critical source of competitive advantage. We predict and find that Reg-FD activated mutual forbearance among analysts linked through multipoint contact. We also predict and find that high-status analysts forbear more strongly. Analysts’ responses to heterogeneity in competitive advantage thus depend importantly on their competitive overlap and status, with notable implications for their behavior and the information they provide to investors.","PeriodicalId":122208,"journal":{"name":"INSEAD Working Paper Series","volume":"3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133067003","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Identifying Styles in Product Design","authors":"T. Chan, Jürgen Mihm, Manuel E. Sosa","doi":"10.2139/ssrn.2206797","DOIUrl":"https://doi.org/10.2139/ssrn.2206797","url":null,"abstract":"This paper introduces an approach to identify styles in product designs. We first built a theoretical foundation on what a style is and how designs are configured into styles. On this basis we executed a graph-clustering algorithm to identify styles in a population of design patents filed in the USA between the years 1976 to 2010. The design patent is uniquely suitable for this task because it is purely focused on how designs look. We validated the outcome obtained from the algorithm using experiments, which suggests that the algorithm outcome is no different from how humans would configure designs into styles. By establishing styles in designs, we open up a new avenue towards design research, upon which the dynamics of styles can now be studied.","PeriodicalId":122208,"journal":{"name":"INSEAD Working Paper Series","volume":"2013 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-01-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127426728","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}