Finding Missing Markets (and a Disturbing Epilogue): Evidence from an Export Crop Adoption and Marketing Intervention in Kenya

Farmers may grow crops for local consumption despite more profitable export options. DrumNet, a Kenyan NGO that helps small farmers adopt and market export crops, conducted a randomized trial to evaluate its impact. DrumNet services increased production of export crops and lowered marketing costs, leading to a 32% income gain for new adopters. The services collapsed one year later when the exporter stopped buying from DrumNet because farmers could not meet new EU production requirements. Farmers sold to other middlemen and defaulted on their loans from DrumNet. Such experiences may explain why farmers are less likely to adopt export crops.     

The fallacy of “only the strong survive”: The effects of extrinsic motivation on the persistence decisions for under-performing firms

Under-performing firms persist even though existing theoretical perspectives indicate that they should be selected out of the market. Building upon threshold theory [Gimeno, J., Folta, T., Cooper, A., Woo, C., 1997. Survival of the fittest? Entrepreneurial human capital and the persistence of underperforming firms. Administrative Science Quarterly 42, 750–783.] and using Staw's [Staw, B.M., 1981. The escalation of commitment to a course of action. Academy of Management Review 6 (4), 577–587.] theoretical model of commitment to a course of action, we explore and test the factors that lead entrepreneurs to persist with under-performing firms. We found environmental munificence, personal investment, personal options, previous organizational success, and perceived collective efficacy impact the decision to persist with an under-performing firm. In addition, extrinsic motivation moderates those relationships. This research adds to the growing literature on highly persistent, under-performing firms and complements and extends threshold theory.     

The death of an innovative project: How grief recovery enhances learning

Given the increase in corporate innovative activity, entrepreneurial projects that are created to pursue new and unique opportunities often fail—or “die”—due to the uncertain environment within which they develop. Although failure can be an important source of information for learning, this learning is not automatic or instantaneous. The emotions generated by failure (e.g., grief) can interfere with the learning process. This article highlights explanations of the grief process and how it can be managed by individuals and organizations to enhance learning. Specifically, by using a dual process model for recovering from grief, innovators can learn more from their project failures and remain committed to future innovative endeavors.     

Humor and ad liking: Evidence that sensation seeking moderates the effects of incongruity‐resolution humor

It is widely reported that humorous ads are better liked and therefore more effective than are non‐humorous ones. This study examines whether the liking advantage associated with ads containing incongruity‐resolution humor depends on sensation seeking. Higher sensation seekers are assumed to enjoy arousal induction because they are lower in base arousal level. From this it can be predicted that ads containing incongruity‐resolution humor will not be liked better by such people than will equivalently arousing non‐humorous ads. However, the higher base arousal assumed to characterize lower sensation seekers is claimed to be associated with a preference for reduction of induced arousal. Incongruity‐resolution humor provides a mechanism for reduction of the arousal occasioned by the incongruity. As a result, it is expected that lower sensation seekers will like ads containing such humor more than non‐humorous ads matched in arousal to the humorous ones. The results support those suggestions. The relevance of the findings for advertising is discussed, and requirements for further research are indicated. © 2009 Wiley Periodicals, Inc.     

Birds of a feather don't always flock together: Identity management in entrepreneurship

The act of entrepreneurship typically confers ‘distinctiveness’. However, in satisfying the psychological need to be distinct, entrepreneurs may at the same time foster a psychological deficit in feelings of belonging, leading to diminished psychological well-being. Investigating this potential trade-off through the lens of Optimal Distinctiveness Theory, we develop and model strategies appropriate for managing multiple identities, offering an explanation for why some entrepreneurs are able to balance distinctiveness and belonging, fostering psychological well-being, while others are unable to do so and experience entrepreneurship's ‘dark-side’.     

Is that an opportunity? An attention model of top managers' opportunity beliefs for strategic action

Research summary: Exploiting opportunities is critical to a firm's competitive advantage. Not surprisingly, there has been considerable interest in the processes by which top managers allocate attention to potential opportunities. Although such investigations have largely focused on top‐down processes for allocating attention to the environment, some studies have explored bottom‐up processes. In this article, we consider both top‐down and bottom‐up processing to develop a model by which top managers form opportunity beliefs for strategic action depending on the allocation of transient and sustained attention. Specifically, this attentional model provides insights into how a top manager's attention is allocated to identify potential opportunities from environmental change and explores how different modes of attentional engagement impact the likelihood of forming beliefs about radical and incremental opportunities requiring strategic action. Managerial summary: Managers are interested in noticing and exploiting opportunities because the exploitation of an opportunity represents an important strategic action. Noticing and exploiting opportunities depends on how and where top managers allocate their attention. Managers can focus attention based on their knowledge and experience or as a result of something in the environment capturing their attention. In this paper, we consider both knowledge‐driven and environment‐driven processes for allocating attention to form opportunity beliefs. This opportunity belief arises from a two stage process. The first stage explains how a top manager identifies environmental changes as potential opportunities. The second stage explains how the top manager forms a belief that these identified environmental changes represent a radical or incremental opportunity worthy of exploitation. Copyright © 2016 John Wiley & Sons, Ltd.     

Does distributed leadership have a place in destination management organisations? A policy-makers perspective

Within an increasingly networked environment and recent transitions in the landscape of funding for destination management organisations (DMOs) and destinations, pooling knowledge and resources may well be seen as a prerequisite to ensuring the long-term sustainability of reshaped, yet financially constrained DMOs facing severe challenges to deliver value to destinations, visitors and member organisations. Distributed Leadership (DL) is a recent paradigm gaining momentum in destination research as a promising response to these challenges. Building on the scarce literature on DL in a DMO context, this paper provides a policy-makers’ perspective into the place of DL in reshaped DMOs and DMOs undergoing transformation and explores current challenges and opportunities to the enactment and practice of DL. The underpinned investigation used in-depth, semi-structured interviews with policy-makers from VisitEngland following an interview agenda based on the DMO Leadership Cycle. Policy-makers within VisitEngland saw a multitude of opportunities for DMOs with regards to DL, but equally, they emphasised challenges acting as barriers to realising the potential benefits of introducing a DL model to DMOs as a response to uncertainty in the funding landscape.     

Are regression approach futures hedge ratios stationary?

In contrast to some recent research, this article finds that regression approach futures hedge ratios are stationary. It shows that a previous study's failure to reject the random walk null hypothesis was due to its small sample size and the overlapping hedge ratio calculation approach's bias toward accepting the random walk hypothesis. The impact of overlap on the Dickey-Fuller full model intercept and slope estimates is demonstrated analytically and numerically. Finally, the article shows that out-of-sample hedging performance is not significantly improved by updating the hedge ratios. © 1998 John Wiley & Sons, Inc. Jrl Fut Mark 18:851–866, 1998