The harvest strategy: how to implement a disaster for the environment and the stockholders

This paper examines the harvest strategy – an often recommended approach for dealing with a weak business unit. It is shown to be a strategy that intertwines the distinct levels of strategy making with the ultimate goal of increasing corporate value. However, in order to be successful it must be carried out inconspicuously. Inconspicuousness is a euphemism for deception in the case of the harvest strategy. Such behavior, when an industrial accident occurs, exposes shareholders to the risk of substantial losses if the accident happens in high-risk technology industries. The authors illustrate their contention by analysing the financial consequences of the Union Carbide tragedy at Bhopal and the Exxon disaster at Valdez. © 1998 John Wiley & Sons, Ltd and ERP Environment.     

An exploratory study of Principal Investigator roles in UK university Proof‐of‐Concept processes: an Absorptive Capacity perspective

The increasing emphasis on academic entrepreneurship, technology transfer and research commercialisation within UK universities is predicated on basic research being developed by academics into commercial entities such as university spin‐off companies or licensing arrangements. However, this process is fraught with challenges and risks, given the degree of uncertainty regarding future returns. In an attempt to minimise such risks, the Proof‐of‐Concept (PoC) process has been developed within University Science Park Incubators (USIs) to test the technological, business and market potential of embryonic technology. The key or the pivotal stakeholder within the PoC is the Principal Investigator (PI), who is usually the lead academic responsible for the embryonic technology. Within the current literature, there appears to be a lack of research pertaining to the role of the PI in the PoC process. Moreover, Absorptive Capacity (ACAP) has emerged within the literature as a theoretical framework or lens for exploring the development and application of new knowledge and technology, where the USI is the organisation considered in the current study. Therefore, the aim of this paper is to explore the role and influence of the PI in the PoC process within a USI setting using an ACAP perspective. The research involved a multiple case analysis of PoC applications within a UK university USI. The results demonstrate the role of the PI in developing practices and routines within the PoC process. These practices and processes were initially tacit and informal in nature but became more explicit and formal over time so that knowledge was retained within the USI after the PIs had completed the PoC process.     

Natural growth goals and short- term training: a boomerang effect

The purpose of this research project was to determine the effect of a training session about achieving natural growth goals on perceptions of a university classroom as a learning organisation. The results indicated that a short training session on how to achieve natural growth goals in an organisation appeared to have a boomerang effect on perceptions of a university classroom as a learning organisation. This study should alert us to the inevitable consequence of having our best training efforts backfire when they conflict with powerful, though latent, beliefs or cultural values.     

Income disclosure and consumer judgment in a multilevel marketing experiment

Consumer protection concerns have been raised related to income misrepresentation in multilevel marketing (MLM) recruitment. Though not required by law, some MLM firms choose to voluntarily disclose income information about previous participants. Through replication and extension of the experiment created in Bosley, Greenman, and Snyder (2020), we investigate the impact of these disclosures on consumer interest and earnings expectations. We test the external validity of their findings with subjects from Mechanical Turk and explore issues regarding treatment heterogeneity and better-than-average bias. Supporting prior findings, we present evidence that income disclosures, on average, do not significantly affect subjects' interest in the MLM opportunity, but they do decrease earnings estimates for most while increasing earnings estimates for a few. These effects depend on a subject's numeracy skills and whether they see their earnings potential as better-than-average. We also find that asking about earnings estimates first tends to decrease interest.     

Institutional investors and corporate environmental and financial performance

We propose a conceptual framework to illustrate that when three conditions hold, institutional investors moderate a positive relation between corporate financial performance and corporate environmental performance. We explore heterogeneities across institution types to demonstrate the importance of each condition. The moderating effect works through the channels of expert consulting and effective monitoring. Our results have important policy and practical implications given the global trend of ownership concentration in institutional investors and the projection that by 2025, one out of three dollars under professional management will be invested in corporate social responsibility assets.