The comparative effectiveness of dialectical inquiry and Devil's advocacy: The impact of task biases on previous research findings

Considerable debate has recently emerged concerning the comparative effectiveness of two methods of inquiry recommended for use in strategic decision making: dialectical inquiry (DI) and devil's advocacy (DA). Much of the comparative research surrounding this debate has made use of the Multiple Cue Probability Learning Paradigm (MCPLP). The equivocal nature of previous research findings using this paradigm and others, along with results from the present research indicating potential order of presentation effects, raises serious questions concerning previous operationalizations of these two methods.     

The Effect of State Workers’ Compensation Program Changes on the Use of Federal Social Security Disability Insurance

In addition to traditional forms of private and public medical insurance, two other large public programs help pay for costs associated with ill health. In 2008, Workers’ Compensation (WC) insurance provided $57.6 billion in medical care and cash benefits to employees who are injured at work or contract a work‐related illness, and Social Security Disability Insurance (DI) provided $106 billion to individuals who suffer from permanent disabilities and are unable to engage in substantial gainful activity. During the 1990s, real DI outlays increased nearly 70 percent, whereas real WC cash benefit spending fell by 12 percent. There has been concern that part of this relationship between two of the nation’s largest social insurance programs may be due to individuals substituting toward DI as state WC policies tightened. We first show that this negative correlation between the national series does not hold over time within states, the level at which a causal relationship should operate. We then test for a causal effect of changes in WC enrollment on DI applications and new DI cases within states over time, using state policy (the maximum WC benefit) as an instrument for WC enrollment. Despite a strong first stage fit, we find no statistically significant evidence that WC tightening caused DI rolls to increase, although the standard errors are large enough that we cannot reject effects of substantial magnitude. We conclude it is unlikely that state WC changes were a meaningful factor in explaining the rise in DI during our study period of 1986–2001, although further study using individual level data is warranted.     

Information sharing and group efficacy influences on communication and decision quality

Group efficacy has generally been found to have a positive effect on group performance. This study reveals a less favorable consequence of high group efficacy, its tendency to promote inferior group decisions under certain circumstances. Previous studies have found that members in a group generally exhibit bias towards utilizing shared information to make decisions. This study examines the effect of group efficacy on both the process (in terms of communication) and outcomes (in terms of decision quality and deviation from initial individual preference) of group decision-making. When information was not completely shared by group members prior to group discussion, members of low-efficacy groups communicated more and more readily changed their initial decision preferences. In the end, they were able to make objectively better decisions. These effects of group efficacy were even more pronounced when individual group members had conflicting information in the beginning about the issues prior to group discussion.     

A multilevel framework of firm boundaries: firm characteristics,dyadic differences,and network attributes

Extending prior firm boundary research that tends to focus on economic explanations and rely on atomistic assumptions, we propose a multilevel framework by bridging the resource‐based view and the social network perspective, with their respective emphases on the importance of firms' internal resource endowments and external resource opportunities. Specifically, we argue that firms' boundary choices can be better understood by considering the tension between the need for external resources and the need for risk controls, affected by internal and external resource factors at three important levels: firm characteristics, dyadic differences, and network attributes. We also explore firms' boundary choices under two conditions: whether to initiate external relationships (non‐partnering vs. partnering) and whether to pursue either alliances or acquisitions if external relationships are needed. Our analyses of the United States computer industry over a nine‐year span largely support our theoretical framework and demonstrate the importance of unique factors at and across individual, dyadic, and network levels in understanding firms' boundary choices. Copyright © 2009 John Wiley & Sons, Ltd.     

The power of dimensional analysis in production systems design

Dimensional Analysis (DA) is a well-known methodology in physics, chemistry and other traditional engineering areas. In its simplest form, DA is used to check the meaningfulness of a set of equations (dimensional homogeneity). In the last century, the dimensional theory has been profoundly investigated: its highest achievement is the Buckingham theorem (or pi-theorem), which states that any equation modelling a physical problem can be rearranged in terms of dimensionless ratios, thus saving variables to be handled, and especially enriching the inner physical knowledge of the studied phenomenon.In this paper we investigate how DA can be applied to Operations Management (OM) topics and which benefits it can bring to researchers in this area. A literature review is performed to clarify the main operative issues regarding DA application (assumptions and limitations); then existing applications of DA to OM are explored, pointing out that few researchers have tried to apply this methodology in the OM research field.Stemming from this analysis, we applied the pi-theorem to the design of a Flexible Manufacturing System. A complex problem, requiring 13 dimensional quantities to be expressed, is first studied via simulation; then DA is applied, reducing the number of variables to 9 dimensionless ratios. The reduced problem has a suitable size to be analytically explored and a regression model is formulated which, compared with the simulation study, offers the same precision in analysing the FMS behaviour, being more compact and powerful. This application shows the potential of DA in OM research, and will hopefully draw the attention of researches to this powerful, but unfamiliar and therefore neglected, methodology.     

Project team aging and performance: The roles of project and functional managers

The authors have explored further the effect of the tenure of an R&D group (that is, the length of time in which it has existed) on its performance. Several studies have shown that groups tend to reach a peak of productivity after a few years and decline thereafter. However, it seems that not all teams so decline and the aim of the authors' study reported in this paper was to see what could be learned from those groups that continued to be successful.
They therefore studied a sample of 181 teams comprising 2000 subjects drawn from a wide variety of R&D organizations. Their objectives were first to pick out those teams that remained effective and second, to discover the secret of their success. Group performances were assessed subjectively by senior members of each organization. Group tenures were measured by calculating the average time each individual member had spent in the group. Further information was obtained from questionnaires completed by participants.
Analysis of the results led to the surprising conclusion that there was no evidence whatever for the previously reported curvilinear relationship between performance and tenure. Nevertheless, some long-tenured teams per-formed much better than others and better than newly-formed teams, for which the authors have sought an explanation.
From information deduced from the questionnaires they conclude that the crucial factor is the extent to which the functional manager (department head) as distinct from the project manager nurtures individual researchers, especially in ensuring that they keep abreast of progress in relevant areas of expertise. The role of the project manager on the other hand is to maintain connection between the team and institutional objectives.     

What kind of assumptions need to be realistic and how to test them: A response to Tsang (2006)

Tsang (2006) contends that certain core assumptions of a theory, which are typically about people's behaviors or thoughts, need be realistic, because they determine the viability of the mechanism that generates a hypothesized relationship. While Tsang's (2006) article rightly emphasizes the importance of realistic assumptions, it neglects the issue that certain kinds of assumptions are necessarily unrealistic for the roles that they play in theory development and testing. Therefore, researchers should not be criticized for making unrealistic assumptions of the latter kinds. Furthermore, by deliberating on the assumptions underpinning a theory, researchers can construct theories with better explanatory power and further develop existing theories. Tsang (2006) also suggests two approaches for testing assumptions, namely, a structural model and direct inquiry approaches. Although these approaches have certain merits, they also have limitations that may render the evidence gathered unreliable under certain situations. Two alternative approaches, namely, the experimental‐causal‐chain and the moderator‐of‐process designs, address these limitations. The researcher could consider adopting these designs as well in order to improve the rigor of assumption testing. Copyright © 2010 John Wiley & Sons, Ltd.     

Corporate Performance: Does Ownership Matter? A Comparison of Foreign- and Domestic-Owned Firms in Greece and Portugal

The paper investigates whether multinational corporations (MNCs) operating in Portugal and Greece perform differently than domestic firms. Departures from normality of firms’ profitability motivated the use of quantile regression. The results suggest that ownership ties do not make a significant difference with respect to performance of firms in Portugal. Results are similar for firms in Greece. Only when firms in the upper quantiles of gross profits are compared, MNCs are found to significantly perform better than domestic firms. MNCs have to compensate for their liability of foreigness that in spite of their technological advantages they cannot persistently outperform domestic rivals.JEL Classifications: F23, L10, L60, C21     

Using Conjoint Analysis to Help Design Product Platforms

This article illustrates how one can combine different conjoint analysis studies, each containing a core of common attributes, to help design product platforms that serve as the foundation for multiple derivative products. The illustration is based on actual, but disguised, data from a small company that makes electronic test equipment.
This article demonstrates that decisions that consider products individually are likely to be suboptimal and can be significantly different than those based on product platforms. Suboptimality can occur either when preferences for product features differ across markets or when a technology is more important to the overall company than it is to an individual product. Additionally, we show the importance of considering both fixed and variable costs when performing this type of analysis as sales, contribution, and profit-maximizing products are quite different. Finally, sensitivity analyses show that these results are robust with respect to assumptions about price sensitivity, fixed costs, and timing of entry. © 1999 Elsevier Science Inc.     

US consumers' perceptions of the importance of following the US dietary guidelines

This study examines the factors affecting perceptions by US consumers about the importance of following each type of healthy diet recommendation based on the Dietary Guidelines for Americans. Results generally suggest that individuals from the Northeast and non-metropolitan areas, males, less educated, not on a special diet, and those who have a lower perception of the overall importance of nutrition when food shopping are generally less likely than their counterparts to perceive individual diet recommendations as important. Income, age, and body mass index also are significant factors for some individual healthy diet recommendations. Understanding consumers' perceptions about the importance of choosing healthy diets is an important preliminary step in changing dietary behavior and nutrition policies. Given worldwide trends toward Westernized diets and resulting increases in related health problems, the findings of this study may have relevance not only in the US but also globally.     

Who’s Displaced First? The Role of Race in Layoff Decisions

We test empirically the proposition that race significantly affects an employee's layoff chances. Using data from a financial firm (N = 8918), we find that whites are less likely to be laid off than nonwhites and that, among nonwhites, Asians are less likely to be laid off than blacks or Hispanics. These findings are statistically significant after controlling for structural factors (business unit, occupation, and job level) and individual characteristics (tenure and performance rating). A similar pattern of racial differences exists in other employment practices more actively monitored by the firm, including promotions, pay raises, and performance ratings. Yet these differences are smaller than those in layoffs and are significant for blacks only, not for Hispanics. Our findings suggest that monitoring personnel decisions can reduce racial inequality. Furthermore, our findings highlight that racial differences in employment outcomes vary among minority groups.     

Uses of recommended intakes: The purpose of dietary recommendations

The definition of recommended intakes/allowances (RDI/RDA) in official reports implies that the RDI represents the minimum amount of a nutrient which should be consumed by each individual. The author argues that this definition makes it impossible to apply the recommendations to groups, either for planning diets or for assessing the adequacy of intakes. He proposes an alternative and more useful definition of the RDI as the average intake per head recommended for a group.     

Individual actors and embeddedness in business-to-business interactions

Individual actors are hardly ever considered in business-to-business marketing literature. This paper uses Service-dominant Logic and Neo-institutional Theory as the bases for twelve case studies. These case studies provide a better understanding of how individuals who represent firms make sense of the social rules, norms, procedures, values, and beliefs of the network (i.e. institutional logics) where they are embedded and how the business interaction is shaped by those influences, through the individual behaviour.This paper makes two main contributions. First, we develop an empirical model of how individuals consider the institutional logics of the network in interactions with suppliers. Second, we present three patterns of individual behavior in interactions, different from what is often assumed by business-to-business researchers. Managerial contributions are also pointed out.     

Consumer Innovativeness and the Use of New versus Extended Brand Names for New Products*

Despite the importance of branding to new product success, little research has been conducted on how individual adoption orientation might affect brand name preferences. This paper draws on the diffusion literature to investigate how consumer innovativeness affects consumer response to alternative branding strategies (i.e., new vs. extended brands, for new products). The results of an empirical study found that consumer innovativeness has a greater effect on new product evaluations for new brand names relative to extended brand names. Also, results indicate that highly innovative consumers evaluate new products with new brand names more favorably than brand extensions. Furthermore, consumer confidence in the new product was found to mediate the effects of consumer innovativeness and its interaction with brand name type on new product evaluation. Implications include not only giving greater managerial consideration to using new brands but also supporting the chosen branding strategy with appropriate promotional efforts for respective adopter groups.     

Which buying decisions are made by individuals and not by groups?

Much of the recent research pertaining to industrial purchasing has focused on the buying group rather than the individual purchasing agent as primarily responsible for vendor and product selection decisions. The present research was undertaken on the premise that in certain types of industrial purchase decisions (vendor selection in modified rebuy situations), the presence of certain mediating variables may indicate that the individual purchasing agent rather than a buying group may make the vendor selection decision. Based on data gathered from industrial buyers randomly selected from a national list and using the hypothetical scenario data-gathering technique, the major findings are that individual decisions seem to predominate in modified rebuy vendor selection decisions, that loyalty to existing suppliers seems to have an effect on the extent of individual decision making, and that the extent of joint and individual decision making appears to be related to the size of the firm.     

Filling a dietary data gap? Validation of the adult male equivalent method of estimating individual nutrient intakes from household-level data in Ethiopia and Bangladesh

Many researchers use data from Household Consumption and Expenditure Surveys (HCES) to estimate individual food and nutrient intake when individual dietary data are not available. They assume that food is allocated within households according to members’ proportional energy requirements relative to an adult male (called an adult male equivalent, or AME). This study sought to validate AME-based estimates of individual consumption of calories, protein, iron, and animal source protein (ASP) across 10 age-sex categories, using data from Bangladesh and Ethiopia containing both household and individual-level consumption data. The study also assessed the accuracy of adjusting for meal partakers and physical activity levels (PAL), and compared energy-weighted AMEs to nutrient-specific AME predictions.Energy AME-based predictions of nutrient intake were generally accurate within ten percentage points of individually reported intakes, but were less accurate for infants 6–23 months and children in Bangladesh than for other demographic groups. AME predictions were more accurate: (1) in Ethiopia than in Bangladesh, (2) for predicting intake of the three nutrients rather than ASP, (3) for estimating nutrient intake rather than adequacy, (4) using energy-weighted AMEs rather than nutrient specific weights, and (5) using moderate PAL for youth and adults rather than high PAL. Adjusting for meal partakers did not consistently improve the AME-based predictions. Energy based AME estimates from household data can produce a useful proxy of average intake for certain population subgroups, however individually measured dietary assessment remains the best approach to identify groups at risk of nutrient inadequacy.     

How an integrative STEM curriculum can benefit students in engineering design practices

STEM-oriented engineering design practice has become recognized increasingly by technology education professionals in Taiwan. This study sought to examine the effectiveness of the application of an integrative STEM approach within engineering design practices in high school technology education in Taiwan. A quasi-experimental study was conducted to investigate the respective learning performance of students studying a STEM engineering module compared to students studying the technology education module. The student performances for conceptual knowledge, higher-order thinking skills and engineering design project were assessed. The data were analyzed using quantitative (t test, ANOVA, ANCOVA, correlation analysis) approaches. The findings showed that the participants in the STEM engineering module outperformed significantly the participants studying the technology education module in the areas of conceptual knowledge, higher-order thinking skills, and the design project activity. A further analysis showed that the key differences in the application of design practice between the two groups were (a) their respective problem prediction and (b) their analysis capabilities. The results supported the positive effect of the use of an integrative STEM approach in high school technology education in Taiwan.     

People and process,suits and innovators: the role of individuals in firm performance

Performance differences between firms are generally attributed to organizational factors rather than to differences among the individuals who make up firms. As a result, little is known about the part that individual firm members play in explaining the variance in performance among firms. This paper employs a multiple membership cross‐classified multilevel model to test the degree to which organizational or individual factors explain firm performance. The analysis also examines whether individual differences among middle managers or innovators best explain firm performance variation. The results indicate that variation among individuals matter far more in organizational performance than is generally assumed. Further, variation among middle managers has a particularly large impact on firm performance, much larger than that of those individuals who are assigned innovative roles. Copyright © 2012 John Wiley & Sons, Ltd.     

Managerial determinants of decision speed in new ventures

This study helps to explain why some new ventures make strategic decisions more quickly than others. Drawing on life course theory and human capital theory, I develop a model of how entrepreneurs' individual characteristics affect new venture decision speed. I test the model using survey data from 98 Internet startups and their founder/managers. Results show that firms made faster decisions when they were managed by older entrepreneurs and by those with prior entrepreneurial experience. In addition, exploratory analyses indicating that fast decision‐making firms were more likely to close may indicate that prevailing theory in this area is contextually limited. Copyright © 2005 John Wiley & Sons, Ltd.     

The Incentive Effects of Flat-Fee and Percentage Commissions for Real Estate Brokers

This paper analyzes the incentive affects of flat-fee and percentage commission systems from the perspective of the economic theory of agency. Under a plausible set of assumptions the systems provide equivalent incentives. However, the relative desirability of the two systems depends upon the pricing strategy employed and factors specific to the individual. In general, neither system perfectly aligns the interests of the agent with those of the property-owner. A surprising result of the analysis is that the optimal listing price when an agent is employed may be below the first-best price. The first-best price, or residual maximizing solution to the principal-agent problem from the perspective of the property-owner, is the solution that would occur if the agent's interests were perfectly aligned with those of the principal. This study suggests that the use of a percentage versus a flat-fee commission may be due to information costs rather than price discrimination on the part of brokers.