Structural ambidexterity,transition processes,and integration trade‐offs: a longitudinal study of failed exploration

In order to overcome the exploration–exploitation paradox, structural ambidexterity literature suggests establishing differentiated units for exploitation and exploration with a carefully managed exploration–exploitation interface supporting cross‐fertilization without cross‐contamination. Recent research demonstrates the crucial role of integration mechanisms (i.e. how knowledge exchange between exploratory and exploitative units can be organized) and related transition modes (i.e. how exploratory innovations can ultimately be transferred back into the exploitative structures of core business) to deal with this challenge. However, a systematic account of the diverse tensions, risks, and trade‐offs associated with integration which may ultimately cause exploration failure is missing, so far. This paper presents a longitudinal process study uncovering the anatomy of an unsuccessful exploration of (green) technologies by a medium‐sized entrepreneurial firm. We investigated their transition processes to understand how the managers dynamically configured and reconfigured the exploration–exploitation interface over time. Our theoretical contribution lies in providing a framework of six integration trade‐offs (Exploratory‐complementary linking vs. contamination; Seeking legitimacy early on vs. frustration at discontinuation of innovation; Boundary spanning through job rotation vs. carrying over of old culture; Early vs. premature transfer; Reorganization vs. capability mutation; and Improved access to core business resources vs. resource starvation) linked to three phases in the transition process (before, at, and after transfer). We also highlight mechanism, pulling‐forward, and streamlining‐related failures linked to integration trade‐offs in resource‐constrained contexts. Our implication for R&D and top management is that the use of integration mechanisms for structural ambidexterity bears the risk of cross‐contamination between the exploitative and exploratory structures and are therefore inevitably linked to trade‐offs. To minimize negative side effects and prevent exploration failure, organizations have to consciously select, schedule, operationalize, and manage (re)integration mechanisms along the transition process. Our framework of integration trade‐offs systematically supports managers in their organizational design choices for integration mechanisms in the transition processes.     

Supply of bank loans and business debts: A view from historical bankruptcy cases

As bank loans fell in the 2008 crisis, business bankruptcy increased. To study how bank loans affect business balance sheets and bankruptcy, we use new data on bankrupt businesses in Missouri between 1898 and 1942. We confirm that when banks curtail loans, courts see more bankruptcies among businesses with high exposure to bank debt. To reduce real volatility, policy‐makers can set tough bank liquidity requirements in the upswing of business cycle but allow weaker requirements in the downswing. We also find that between 1914 and 1933, businesses in St. Louis were more sensitive to changes in bank loans than businesses in Kansas City, probably due to the tight monetary policy conducted by the conservative St. Louis Fed. The Glass‐Steagall Act weakened the relationship between bank loans and business debt structure. The takeaway is that lender‐of‐last‐resort practices stabilize both the financial sector and the real economy.     

Oral semaglutide versus injectable glucagon-like peptide-1 receptor agonists: a cost of control analysis

Abstract

Aims: The efficacy and safety of oral semaglutide, the first glucagon-like peptide-1 (GLP-1) receptor agonist developed for oral administration for the treatment of type 2 diabetes, was evaluated in the PIONEER clinical trial program, and a recently published network meta-analysis allowed comparison with further injectable GLP-1 receptor agonists. The present study aimed to assess the short-term cost- effectiveness of oral semaglutide 14?mg versus subcutaneous once-weekly dulaglutide 1.5?mg, once-weekly exenatide 2?mg, twice-daily exenatide 10?µg, once-daily liraglutide 1.8?mg, once-daily lixisenatide 20?µg, and once-weekly semaglutide 1?mg, in terms of the cost per patient achieving glycated hemoglobin (HbA1c) targets (cost of control).

Materials and methods: Cost of control was calculated by dividing the annual treatment costs associated with an intervention by the proportion of patients achieving the treatment target with an intervention, with outcomes calculated for targets of HbA1c ≤6.5% and HbA1c <7.0% for all included GLP-1 receptor agonists. Annual treatment costs were accounted in 2019 United States dollars (USD), based on 2019 wholesale acquisition cost.

Results: For the treatment target of HbA1c ≤6.5%, once-weekly semaglutide 1?mg and oral semaglutide 14?mg were associated with the lowest costs of control, at USD 15,430 and USD 17,383 per patient achieving target, respectively. Similarly, the cost of control was lowest with once-weekly semaglutide 1?mg at USD 12,627 per patient achieving target, followed by oral semaglutide 14?mg at USD 13,493 per patient achieving target for the target of HbA1c <7.0%. All other interventions were associated with higher cost of control values for both targets.

Conclusions: Oral semaglutide 14?mg is likely to be cost-effective versus dulaglutide, exenatide (once weekly and twice daily), liraglutide, and lixisenatide in terms of bringing people with type 2 diabetes to glycemic control targets of HbA1c ≤6.5% and HbA1c <7.0% in the US.     

How do cross-country differences in institutional trust and trust in family explain the mixed performance effects of family management? A meta-analysis

Cross-country research finds mixed performance effects of family involvement in management (FIM) but consistently positive performance effects of family involvement in ownership (FIO). We argue that cross-country differences in institutional trust and trust in family can help explain this discrepancy. We reason that trust in family normalizes family managers’ use of firm resources to satisfy family needs. In contrast, institutional trust orientates family managers’ attention toward improving firm performance. A meta-analysis supports our theory: greater trust in family increases and greater institutional trust reduces the gap between FIM and FIO's performance effects across countries.     

Framing and Misperception in Public Good Experiments

Earlier studies have found that framing has a substantial impact on the degree of cooperation observed in public good experiments. We show that the way the public good game is framed affects misperceptions about the incentives of the game. Moreover, we show that such framing‐induced differences in misperceptions are linked to the framing effect on subjects' cooperation behavior. When we do not control for the different levels of misperceptions between frames, we observe a significant framing effect on subjects' cooperation preferences. However, this framing effect becomes insignificant once we remove subjects who misperceive.     

Nonlinearity and temporal dependence

Nonlinearities in the drift and diffusion coefficients influence temporal dependence in diffusion models. We study this link using three measures of temporal dependence: ρ-mixing$\rho \text{-}mixing$, β-mixing$\beta \text{-}mixing$ and α-mixing$\alpha \text{-}mixing$. Stationary diffusions that are ρ-mixing$\rho \text{-}mixing$ have mixing coefficients that decay exponentially to zero. When they fail to be ρ-mixing$\rho \text{-}mixing$, they are still β-mixing$\beta \text{-}mixing$ and α-mixing$\alpha \text{-}mixing$; but coefficient decay is slower than exponential. For such processes we find transformations of the Markov states that have finite variances but infinite spectral densities at frequency zero. The resulting spectral densities behave like those of stochastic processes with long memory. Finally we show how state dependent, Poisson sampling alters the temporal dependence.     

The two dimensions of policy impacts on economic cohesion: Concept and illustration for the CAP

Given the growing importance of cohesion policy within the European Union (EU) during the last two decades, public and scientific interest in the role of EU policies for regional disparities has risen continuously. Recent empirical studies on the impacts of the Common Agricultural Policy (CAP) on economic cohesion have been strikingly diverse in their principal findings. Whereas some studies suggest positive overall effects on economic cohesion, others stress exactly the opposite. One major reason for the ambiguous results is that a single agreed-upon measure of economic cohesion is lacking. We propose a concept that distinguishes between two dimensions of policy impacts on economic cohesion: (i) the redistributive impact at a defined period of time and (ii) the change of the redistributive impact over time. The first dimension addresses the question whether a policy makes the distribution of a target variable, e.g., income, more equal or unequal at one point of time. The second dimension covers the impact of the policy on the disparity of the same variable over time, i.e., the impact on convergence. An empirical illustration of the concept for 13 NUTS 1 regions in Germany over the period 1991–2009 reveals that the two policy impacts of the CAP are partly contradictory for the two dimensions. It is shown that the CAP fosters economic cohesion by reducing regional disparities in each individual year. With regard to redistributive impacts over time, we find that CAP transfers leave income convergence largely unaffected for society as a whole. Within the agricultural sector, it leads to a convergence of receipts per farm whereas it induces a divergence of farm receipts per hectare.     

A weighted logit freight mode-choice model

The paper describes the estimation of a weighted discrete choice model applicable for analysing choice of mode and crossing for freight in the Oresund region. The study finds that, by applying a weighted logit approach, it is possible to establish a suitable decoupling of agents and shipments. Moreover, by assessing preferences on the basis of a representative baseline OD matrix it is possible to better reflect the dependence between mode substitution effects and geography/infrastructure. The paper presents demand elasticities with respect to monetary cost and travel time as well as value-of-time estimates for five modes and thirteen commodity groups.     

The evolution of the US family income–schooling relationship and educational selectivity

We estimate a dynamic model of schooling on two cohorts of the National Longitudinal Survey of Youth and find that, contrary to conventional wisdom, the effects of real (as opposed to relative) family income on education have practically vanished between the early 1980s and the early 2000s. After conditioning on a cognitive ability measure (AFQT), family background variables and unobserved heterogeneity (allowed to be correlated with observed characteristics), income effects vary substantially with age and have lost between 30% and 80% of their importance on age-specific grade progression probabilities. After conditioning on observed and unobserved characteristics, a $300,000 differential in family income generated more than 2 years of education in the early 1980s, but only 1 year in the early 2000s. Put differently, a $70,000 differential raised college participation by 10 percentage points in the early 1980s. In the early 2000s, a $330,000 income differential had the same impact. The effects of AFQT scores have lost about 50% of their magnitude but did not vanish. Over the same period, the relative importance of unobserved heterogeneity has expanded significantly, thereby pointing toward the emergence of a new form of educational selectivity reserving an increasing role to noncognitive abilities and/or preferences and a lesser role to cognitive ability and family income.     

Bilateral foreign aid: how important is aid effectiveness to people for choosing countries to support?

We conduct a discrete choice experiment to determine how important aid effectiveness is to people relative to other criteria for choosing countries to support with bilateral foreign aid. We find that aid effectiveness is important, on a par with recipient-country need as proxied by the level of hunger and malnutrition. Both criteria are more important than others.