Innovation and efficiency: It is possible to have it all

A firm that simultaneously engages in a high degree of both innovation and efficiency follows an approach that is often referred to as an ambidextrous strategy. Surprisingly, relatively few firms are able to balance these two emphases. Internal battles for resources often tip the scales in favor of efficiency over innovation, or vice versa. Management gurus frequently warn that simultaneously pursuing both can set the firm up for mediocre performance, yet the turbulent nature of today’s markets and cut-throat competition create a renewed need for firms to reconsider this dual approach for longer-term success. Unfortunately, practical insights from empirical studies regarding performance benefits and implementation issues are still scant. Perhaps this is one reason why few firms are successful in both efficiency and innovation. In this article, we provide evidence—using a cross-industry survey of senior marketing managers in publicly-traded U.S. firms—that firms which successfully employ an ambidextrous strategy outperform those which overemphasize either efficiency or innovation. Furthermore, we highlight marketing’s role as an example of the often overlooked need for successful functional implementation. Finally, we provide useful methods for managers to answer three key questions: (1) Is my firm ambidextrous?; (2) Should my firm be ambidextrous?; and, if so (3) How can my firm become ambidextrous?     

THE IMPACT OF POINT‐OF‐SALE DATA INACCURACY AND INVENTORY RECORD DATA ERRORS

The presence or absence of error in point‐of‐sale (POS) data and inventory system records directly affects retailer performance. This study identifies various error sources in retail supply chains and studies the influence of inventory and POS (demand) errors in a simulated retail outlet according to fill rate and average inventory. Other things being equal, we find that inventory record error reduces fill rate more than demand error. This study adds further evidence to other studies that suggest the costs caused by errors in POS systems may be overstated.     

Connectivity and work dominance: Panacea or pariah?

Does technologically-supported work connectivity help young managers and professionals under the age of 45 deal with the pressing demands of their work, or does the presence of work-connecting technologies exacerbate the tendencies of this talent force to engage in more work and longer working hours? Utilizing both surveys and follow-up focus group interactions, this study found that while work-connecting technologies permitted a greater range of options regarding when and where work was done, this same connectivity provided constant availability to work and often drove expectations that more must be done, thereby increasing the likelihood of longer work hours and—surprisingly—leading to a diminished sense of flexibility. Study participants offer insights regarding the thought processes behind these outcomes. Perspectives on how emerging leaders and their organizations can effectively manage and achieve the potential of enhanced connectivity are provided. A four-phased approach is recommended. First, we discuss key cultural dynamics. Second, the role of organizational expectations and practices is emphasized. Third, we consider a set of responsibilities for organizational leaders, whose actions and cues provide the most vivid clarity for young managers attempting to decide where to draw the work/life balance line. Finally, the challenge and responsibility of personal accountability is presented. Consideration of a work paradigm that reorients our thinking about traditional “face time,” and strives to bridge the gap between the potential and pervasive impact of work-connecting technologies, is also included.     

Understanding the Solar Home price premium: Electricity generation and “Green” social status

This study uses a large sample of homes in the San Diego area and Sacramento, California area to provide some of the first capitalization estimates of the sales value of homes with solar panels relative to comparable homes without solar panels. Although the residential solar home market continues to grow, there is little direct evidence on the market capitalization effect. Using both hedonics and a repeat sales index approach we find that solar panels are capitalized at roughly a 3.5% premium. This premium is larger in communities with a greater share of college graduates and of registered Prius hybrid vehicles.     

The price of Cherokee removal

In this paper, we estimate the social costs and income transfers of Cherokee removal, i.e., “The Trail of Tears.” Our cost estimates provide several new insights into this extensively studied topic. First, our estimate of the number of removal-related fatalities is considerably lower than the commonly accepted figure of 4000. Second, the uncompensated value of ceded Cherokee land in the southeast was the largest cost borne by the Cherokees, followed in magnitude by the value of lost agricultural output due to removal. Third, American taxpayers paid for roughly 44% of the total social costs of removal. Also, the cost burden of Cherokee removal, as a share of 1 year's GDP, was greater for the Cherokees than the cost burden of any major war for the American population.     

Older age underwriting: frisky vs frail

The speed of the aging process is variable. Some individuals remain exceptionally fit beyond age 90, while others become frail and fragile early. Survival is better predicted by biological age (state of health, status of reserves) rather than chronological age (age in years since date of birth). The frail group shows a higher mortality compared to the robust group. When assessing the elderly in underwriting, it is important to note the usual chronic diseases such as cardiovascular disease, COPD, cancer risk, and so on. But because of its strong impact on prognosis, it is also important to assess frailty. Key features of frailty are social isolation, dependency in managing life activities and self-care, cognitive decline, shrinking of bone and muscle mass, and slow weight loss.     

State competition in higher education: A race to the top,or a race to the bottom?

How does competition affect higher education? This paper explores this question for public and private universities. Theory indicates that competition can push higher education policy in one of two different directions. On the one hand, competition may increase spending. For states, this would occur if states treat higher education as developmental; for private universities this would occur if they view spending as a means to attract students and prestige. On the other hand, competition may decrease spending if states treat higher education spending as redistributive, and competition may decrease spending by private schools if lower spending enhances their ability to attract students with low tuition. To determine which of these perspectives is most valid, we examine higher education policy choices in the 1980s and 1990s. We find that states appear to act as if higher education funding is redistributive while private schools appear to compete more on the basis of tuition than spending. These results demonstrate the important effects competition and governance structure have on higher education.Received: August 2001, Accepted: May 2002, JEL Classification: I2, I22, H72, I3