Work versus windfall: An exploration of saving on subsequent purchase

Previous research has examined the effects of discounts and promotions on the future performance of a brand or store. However, no attempts have been made to explore how a consumer psychologically accounts for the way a savings is obtained or how that accounting process affects subsequent purchase decisions. This research employs an experimental approach to test the hypothesis that buyers will spend more (save less) of a savings that they obtain from a windfall gain than an equivalent amount obtained from a worked-for savings. Results are generally supportive of the hypothesis, revealing that consumers do treat savings differently depending on how they are obtained. This finding appears to hold over a wide range of saving magnitudes.     

Innovation of entrepreneurial firms

An empirical test is provided of the effect of the degree of obsolescence on the effect of firm size and monopoly profits on a firm's ability to innovate. Recent theory suggests that innovation depends on firm size and monopoly profits only if the firm conducts product improvement as well as new product innovation. This is due to the allocation of limited entrepreneurial attention between improving current products and innovating new products. Current products are subject to obsolescence and innovation requires technological opportunities. The firm conducts product improvement as well as new product innovation only if the degree of obsolescence is sufficiently low relative to the level of technological opportunity. This theory provides an explanation for previously unexplained empirical observations. We find preliminary support for the hypothesis that product improvement reduces the positive effect of firm size on new product innovation and sufficient product improvement may reverse the negative effect of monopoly profits on new product innovations. In addition, product improvement reduces the positive effect of technological opportunity on new product innovation.     

An Empirical Investigation of the Growth Cycle Theory of Small Firm Financing

This paper empirically tests the financial growth cycle model for small and medium-sized enterprises (SMEs), which postulates that as firms become larger, older, and more informationally transparent, their financing options become more attractive. We add to the literature by providing one of the first empirical tests of the model using a large, cross-sectional data set. Our results partially support the financial growth cycle model. Specifically, our results show larger firms, as measured by total number of employees, are more likely to use public equity funding or long-term debt as opposed to insider funding.     

Motivation and sorting of human capital in open innovation

This paper studies how business models can be designed to tap effectively into open innovation labor markets with heterogeneously motivated workers. Using data on open source software, we show that motivations are diverse, and demonstrate how managers can strategically influence the flow of code contributions and their impact on project performance. Unlike previous literature using survey data, we exploit the observed pattern of project membership and code contributions—the “revealed preference” of developers—to infer the motivations driving their decision to contribute. Developers strongly sort along key dimensions of the business model chosen by project managers, especially the degree of openness of the project license. The results indicate an important role for intrinsic motivation, reputation, and labor market signaling, and a more limited role for reciprocity. Copyright © 2014 John Wiley & Sons, Ltd.     

Profiting from the weather

As pressure for greater parliamentary control over public spending grows, a number of MPs in particular have been looking with envy at the new Canadian audit system. But distance hides complexities. Closer inspection suggests that it may not be such a good model after all.     

企业的坚持与转换

设想这样一个场景:你正在拐过弯道,前面的终点线就是闪闪发光的拱形门.观众正在旁边欢呼,但你所能专注的就是最终目标.你的肺在燃烧,汗水不断流入眼睛,你的腿随着最后加速变得更加紧张,猛然扑向终点线,超过最后的对手,完成精疲力竭的竞赛,但非常兴奋.这时,你的能量已经全部耗尽.     

A Multi‐Theoretical Model of Knowledge Transfer in Organizations: Determinants of Knowledge Contribution and Knowledge Reuse*

abstract Knowledge has become one of the most important sources of competitive advantage for firms in many industries, particularly those in which firms provide knowledge services to their clients. Many knowledge intensive firms have spent enormous amounts of time and money trying to find ways to better manage their knowledge resources. Effective leveraging of knowledge resources through the transfer and reuse of existing knowledge is an important aspect of most knowledge management systems. In this study we argue that the effectiveness of intrafirm knowledge transfer based on the reuse of existing knowledge depends on two key factors: (1) the willingness of individuals to contribute their knowledge to the system; and (2) the rate at which individuals access and reuse knowledge within the system. Here we use social exchange theory to develop a model of the factors that will impact the frequency with which individuals contribute their knowledge to the system. Additionally, we use expectancy theory to develop a model of the factors that lead to knowledge reuse. Results of hypothesis tests using data collected from a multinational services firm support our multi‐theoretical model, and suggest ways in which the model might be refined. We discuss the implications of these findings for further theory building and for managers engaged in the development and improvement of knowledge management systems.     

Limited Entrepreneurial Attention and Economic Development

Economic development depends on the allocation of entrepreneurial resources to efforts to discover new profit opportunities. Limited entrepreneurial attention is allocated between maintaining current activities and starting new activities. This paper addresses the problem of allocating limited entrepreneurial attention in a variety of contexts. The issues that are addressed are product improvement and new product development; the choice of career as an innovative entrepreneur, a managerial entrepreneur or a salaried employee; the venture capitalist's attention to current and new ventures and funds; the writing of internal contracts and market contracts and the supervising of current employees and hiring additional employees.