{"title":"Prosocial Incentives Change Willingness to Compete in Work Tasks: The Role of Gender and Performance","authors":"Benji King","doi":"10.2139/ssrn.3950538","DOIUrl":"https://doi.org/10.2139/ssrn.3950538","url":null,"abstract":"This study examines the effects of prosocial incentives, where charities benefit from an individual’s efforts, on workers’ willingness to compete in a work task in an experimental setting. Counter to expectations and prior literature, prosocial incentives reduce a worker’s willingness to compete. Women across all levels of performance are largely driving this result, though lower performing men also appear to opt out of competition more often to take guaranteed wages for charity. With so many low performers opting out of competitions that they would lose to take guaranteed payment, I observe that performance-based earnings increased under the prosocial incentives scheme. Qualitative evidence suggest an underlying mechanism, the fear of getting zero for charity, is the main reason for the change and that women were more likely to report this fear. A second experiment finds that eliminating the possibility of getting zero —with lower payout variance and increased expected returns to competition, results in top performing women become as likely as men to enter competition in work tasks with prosocial incentives. I discuss how these insights could inform the design of incentives in the field.","PeriodicalId":223617,"journal":{"name":"Strategy Models for Firm Performance Enhancement eJournal","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-10-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114315719","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":"The Growth Tesseract: A Scientific View of Firms’ Growth Opportunities","authors":"Staffan Canback","doi":"10.2139/SSRN.3051501","DOIUrl":"https://doi.org/10.2139/SSRN.3051501","url":null,"abstract":"This lightweight, yet scientific, paper explores the four ways a firm can grow: by increasing reach, breadth, depth, and value. It builds on the traditions of Penrose, Williamson, Teece, and Grossman and Hart, and others who explored vertical and lateral integration. The scientific underpinning is found in Canback (2002): Bureaucratic Limits of Firm Size.","PeriodicalId":223617,"journal":{"name":"Strategy Models for Firm Performance Enhancement eJournal","volume":"51 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-10-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131315311","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":"Optimal Team Formation Under Asymmetric Information","authors":"Ashwin Kambhampati, C. Segura-Rodríguez","doi":"10.2139/ssrn.3606281","DOIUrl":"https://doi.org/10.2139/ssrn.3606281","url":null,"abstract":"How does a profit-maximizing manager form teams and compensate workers in the presence of both adverse selection and moral hazard? Under complete information, it is well known that any complementarity in characteristics implies that positive assortative matching is productively efficient. But, under asymmetric information, we uncover the problem of disassortative incentives: incentive costs may increase in assortativity. Profit maximization thus prescribes either random or negative assortative matching, both productively inefficient, when complementarities are weak and e ort costs are high enough. When this is the case, the manager may instead prefer to dele-gate matching, allowing workers to sort themselves into teams. Our results shed light on recent empirical work documenting patterns of non-assortative matching inside of firms.","PeriodicalId":223617,"journal":{"name":"Strategy Models for Firm Performance Enhancement eJournal","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132443123","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":"Do Firms Respond to Auditors’ Red Flags? Evidence from the Expanded Audit Report","authors":"I. Andreicovici, Anne Jeny, Daphne Lui","doi":"10.2139/ssrn.3634479","DOIUrl":"https://doi.org/10.2139/ssrn.3634479","url":null,"abstract":"We investigate the impact of the expanded audit report on firm disclosure, focusing on auditors’ mentions of goodwill impairment as a risk of material misstatement. Using a sample of U.K. Premium listed companies with goodwill on their balance sheets, we identify instances where goodwill impairment is (versus is not) flagged as a risk and contrast firms’ disclosure level on goodwill impairment. We find that managers increase goodwill impairment disclosure when auditors initiate the mention of this risk but do not react to the elimination of the mention. The increase in disclosure is stronger when firms are perceived to be riskier, and firms make more timely goodwill impairment decisions when auditors mention goodwill impairment as a risk. Overall, this paper establishes the role of the expanded audit report as a credible channel for revealing corporate financial reporting risks to financial statement users, as well as a trigger of enhanced corporate disclosure.","PeriodicalId":223617,"journal":{"name":"Strategy Models for Firm Performance Enhancement eJournal","volume":"35 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-06-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128251850","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":"Product Traceability and Warranty Cost Sharing in Supply Chains","authors":"Fangruo Chen, Lijian Lu, Ruxian Wang, Hanqin Zhang","doi":"10.2139/ssrn.3600650","DOIUrl":"https://doi.org/10.2139/ssrn.3600650","url":null,"abstract":"We consider a supply chain where an OEM (manufacturer) sources a component from multiple suppliers. OEM uses the component to make a product that he then sells to end customers. When a component fails in the field, warranty costs are incurred. The focus of the paper is to examine various mechanisms for sharing the warranty expenses among supply chain members. OEM pays a fixed percentage of total warranty expenses with the rest to suppliers depending on traceability. Without traceability, they are equally shared by suppliers, as originating suppliers of faulty products could not be identified. With traceability, they are traced back to originating suppliers of defective components. Each supplier can exert a costly effort to improve the component's quality, and higher quality means lower warranty cost. Another benefit to a supplier who exerts a quality-improving effort is gaining a larger market share. Suppliers play a multi-person game by independently and simultaneously determining their quality-improving efforts. Using game-theoretic analysis, we characterize equilibrium outcomes of the quality competition game. Equilibrium results are then applied to understand operational impacts of traceability under three different scenarios: <br><br>1) the wholesale price and the OEM responsibility are both exogenously fixed, <br><br>2) OEM sets the wholesale price, but the OEM responsibility is fixed, and <br><br>3) OEM sets both the wholesale price and the OEM responsibility. <br><br>We also compare the decentralized supply chain with its centralized counterpart and provide conditions for supply chain coordination.","PeriodicalId":223617,"journal":{"name":"Strategy Models for Firm Performance Enhancement eJournal","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130478484","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":"Knowledge-Based Capital and Productivity Divergence","authors":"Marie Le Mouel, Alexander Schiersch","doi":"10.2139/ssrn.3603936","DOIUrl":"https://doi.org/10.2139/ssrn.3603936","url":null,"abstract":"Understanding the causes of the slowdown in aggregate productivity growth is key to maintaining the competitiveness of advanced economies and ensuring long-term economic prosperity. This paper is the first to provide evidence that investment in Knowledge-Based Capital (KBC), despite having a positive effect on productivity at the micro level, is a driver of the weak productivity performance at the aggregate level, by accentuating divergence between a group of “frontier” firms and the rest of the economy. Using detailed firm-level administrative data for Germany, we find evidence that the effect of KBC on productivity is heterogeneous across firms within industries: this effect is 3 times larger for firms in the top quintile of the KBC distribution compared to firms in the bottom quintile of the KBC distribution. We document the existence of divergence in productivity growth between top KBC users and the rest of firms at the industry level, and find that industries where this gap is larger are also those industries where the heterogeneity in the effect of KBC is highest and where average productivity growth was lower. The evidence hence supports the view that the use of KBC plays a role in explaining weak productivity growth, by accentuating differences between firms.","PeriodicalId":223617,"journal":{"name":"Strategy Models for Firm Performance Enhancement eJournal","volume":"105 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124732864","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":"Application of (AHP) Method in Ranking the Factors Affecting the Formation of Organizational Behavior of Employees","authors":"H. Eghbali, Masoud Ahmadvand","doi":"10.2139/ssrn.3572794","DOIUrl":"https://doi.org/10.2139/ssrn.3572794","url":null,"abstract":"Organizations are unable to develop the effectiveness of their collective wisdom without the voluntary willingness of individuals to cooperate. To this end, the ever-changing conditions, increasing competition, and the need for organizations to be more efficient have highlighted the need for a valuable generation of human capital, a generation known as organizational soldiers. These human resources are undoubtedly the distinguishing features of effective from ineffective organizations, because without any expectations, they act in addition to their official role and do not spare any effort. They are involved in the formation of organizational citizenship behavior. Therefore, first, according to the research background, the components are identified and then, using the hierarchical analysis process technique, the identified components are ranked and the degree of importance is determined. Finally, the result is that organizational commitment and motivation in Work is of the utmost importance.","PeriodicalId":223617,"journal":{"name":"Strategy Models for Firm Performance Enhancement eJournal","volume":"33 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123720678","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":"Caracterización de la inteligencia colectiva en un ecosistema empresarial (The Collective Intelligence in a Business Ecosystem)","authors":"Claudia Eugenia Toca Torres","doi":"10.2139/ssrn.3542446","DOIUrl":"https://doi.org/10.2139/ssrn.3542446","url":null,"abstract":"<b>Spanish Abstract:</b> Asumiendo la convergencia del Positivismo en las Ciencias Naturales y Sociales, esta investigación contribuye a una disciplina social como la Administración desde una perspectiva ecológica. Haciendo claridad sobre la inteligencia de especies sociales, se elaboran y aplican escalas, a dos poblaciones (empleados y empresarios) de una red de turismo del Valle del Cauca, Colombia. El propósito caracterizar y valorar los atributos de la inteligencia colectiva: autoorganización, robustez y flexibilidad. Se grafican, de igual modo, las relaciones entre los agentes que la conforman analizando conectividad, centralidad, centralización, intermediación y cercanía de la red. El tránsito de la red de turismo hacia una red inteligente, exige la atención de aspectos relacionados con libertad y diversidad y con interacciones principalmente.<br><br><b>English Abstract:</b> Assuming the convergence of Positivism in both Nature and Social Sciences, this research contributes to Management as social discipline from an ecological approach. From the swarm intelligence lights we conducted two surveys (employees and entrepreneurs) into a tourism network located in Valle del Cauca, Colombia. The main propose was to describe the swarm intelligence attributes: robustness, flexibility and self-organization. We mapped interactions among its agents analyzing five indicators: connectivity, centrality, centralization, betweenness and closeness of the network. The movement of the tourism network to an intelligent network demands focus on some aspects like liberty, diversity and interactions.","PeriodicalId":223617,"journal":{"name":"Strategy Models for Firm Performance Enhancement eJournal","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121776720","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":"Birds of a Feather . . . Enforce Social Norms? Interactions Among Culture, Norms, and Strategy","authors":"Hongyi Li, E. Van den Steen","doi":"10.2139/ssrn.3463405","DOIUrl":"https://doi.org/10.2139/ssrn.3463405","url":null,"abstract":"This paper analyzes how shared beliefs and preferences (or values) cause the emergence of social norms; why people may enforce norms that go against their own beliefs and preferences/values; and how this may cause a disconnect to develop between the organization's norms and its underlying beliefs and preferences. We further show, among other things, that such social norms are more likely in attractive organizations, for behaviors that have modest personal consequences, and in organizations where employees depend on others' choices to a moderate degree. We finally discuss how these mechanisms help our understanding of culture change and of the interaction between culture and strategy. We argue that culture is not only an input to strategy, but also a substitute and a potential competitor.","PeriodicalId":223617,"journal":{"name":"Strategy Models for Firm Performance Enhancement eJournal","volume":"74 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122143481","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":"The Success of Business Forecasting: Comparisons Across Industries","authors":"Tobias F. Rötheli","doi":"10.2139/ssrn.3456803","DOIUrl":"https://doi.org/10.2139/ssrn.3456803","url":null,"abstract":"Purpose: This study measures and assesses the accuracy of forecasts by industry branches. Such an investigation provides a view on the relative benefits of forecasting in different industries.<br><br>Design/methodology/approach: Accuracy is studied here by investigating survey data covering manufacturing firms in the U.S. and Germany. The two data sets are conceptually different and cover different time periods: the U.S. data mostly cover the 1980s while the German data have been continuously available since the 1990s.<br><br>Findings: As it turns out we can identify industries that are among the most (e.g., electric machinery) and least accurate forecasters (e.g., the food industry). These findings can be of help for management in different industries and countries regarding whether resources should be allocated to forecasting. Yet, the printing industry – at the top of the U.S. ranking and towards the bottom in Germany – reminds us of the structural changes affecting the production processes and the need for forecasting.<br><br>Practical implications: The findings can help management to make decisions regarding the allocation of resources to forecasting.<br><br>Originality/value: This study presents a widely applicable approach to measuring and comparing forecasting performance across industries.","PeriodicalId":223617,"journal":{"name":"Strategy Models for Firm Performance Enhancement eJournal","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115078488","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}