Contracting With Wealth-Constrained Agents

We examine how a project owner optimally selects a project operator and motivates him to deliver an essential noncontractible input (e.g., effort) when potential operators are privately informed about their limited wealth. Truthful revelation of wealth is induced by promising a higher probability of operation and, if necessary, a greater share of realized profit the larger the nonrefundable bond that a potential operator posts. The project owner benefits when total wealth is widely dispersed among potential operators. Under plausible conditions, limited knowledge of wealth is not constraining for the project owner.     

Where can obesity management policy make the largest impact? Evaluating sub-populations through a microsimulation approach

Background: There is a critical need to focus limited resources on sub-groups of patients with obesity where we expect the largest return on investment. This paper identifies patient sub-groups where an investment may result in larger positive economic and health outcomes.

Methods: The baseline population with obesity was derived from a public survey database and divided into sub-populations defined by demographics and disease status. In 2016, a validated model was used to simulate the incidence of diabetes, absenteeism, and direct medical cost in five care settings. Research findings were derived from the difference in population outcomes with and without weight loss over 15 years. Modeled weight loss scenarios included initial 5% or 12% reduction in body mass index followed by a gradual weight regain. Additional simulations were conducted to show alternative outcomes from different time courses and maintenance scenarios.

Results: Univariate analyses showed that age 45–64, pre-diabetes, female, or obesity class III are independently predictive of larger savings. After considering the correlation between these factors, multivariate analyses projected young females with obesity class I as the optimal sub-group to control obesity-related medical expenditures. In contrast, the population aged 20–35 with obesity class III will yield the best health outcomes. Also, the sub-group aged 45–54 with obesity class I will produce the biggest productivity improvement. Each additional year of weight loss maintained showed increased financial benefits.

Conclusions: This paper studied the heterogeneity between many sub-populations affected by obesity and recommended different priorities for decision-makers in economic, productivity, and health realms.     

Research opportunities in supply chain management

Since its introduction as a concept in the 1980s, supply chain management (SCM) has undergone significant modification and expansion. A qualitative analysis of 166 unique definitions of SCM published in the literature identified three major themes associated with the supply chain and SCM: (1) activities; (2) benefits; and (3) constituents/components. Utilizing these themes, key research questions and issues within the supply chain and SCM are identified that could be examined by marketing scholars.     

City of Discontent? The Influence of Perceived Organizational Culture,LMX, and Newcomer Status on Reported Bullying in a Municipal Workplace

Workplace bullying is a counterproductive behavior that has captured the attention of researchers in recent years. The extent of reported bullying behavior in US organizations varies however; it is estimated to affect 15% to 50% of workers with projected annual costs of over $40 billion including direct and indirect costs. Workplace bullying poses a serious ethical challenge by sending messages about appropriate conduct within the organization’s culture. In this study, we focus on environmental factors as predictors of self-reported bullying in a public-sector organization. Specifically, the factors of interest are organizational culture, commitment to change, and leader-member exchange (LMX). We also investigate newcomer status and its relationship to reported bullying. Findings demonstrated perceived stability in the organization and higher levels of LMX showed lower levels of workplace bullying. Further, an organizational culture that emphasizes rewards lead to higher levels of bullying and newcomers are subjected to more bullying than longer service workers.     

Exploiting innovative opportunities in global purchasing: An assessment of ethical climate and relationship performance

Purchasing managers are expected to balance costs, innovation, supplier management, and corporate social responsibility while coordinating expanding areas of the corporation. The increased responsibilities and pressures to innovate brings purchasing managers into potentially increasingly difficult ethical dilemmas. In this study, we examine the relationships between organizational culture, learning, entrepreneurial innovation, and purchasing outcomes in different ethical climates. To address external business conditions that may influence innovation in purchasing, we also examine the moderating effects of technological and market turbulence. Data from 200 purchasing managers in multinational corporations were used to test the relationships through structural equation modeling. We find that entrepreneurial innovation positively affects the quality of the relationships among sourcing participants when operating in a climate valuing ethics. The study results are particularly relevant for managers concerned that establishing an ethical climate may restrict innovation in the purchasing process.     

Do social advergames affect brand attitudes and advocacy?

Advergames have been used for some time as a form of branded entertainment designed to engage prospective customers in a branded activity for an extended period of time. Increasingly, advergames are imbued with social qualities related to the rise in popularity of social media, especially social networking. Despite the popularity of social advergames, little is known about the brand benefits of incorporating social features into games. Moreover, while creativity has been studied in the context of more traditional advertising, less is known about its effects on brand development in the context of advergames. Although advertising creativity, as characterized by novelty and relevance, has been shown to impact advertised brands, it is not clear how creativity interacts with advergame socialness to affect brand development. To address these gaps in the literature, this paper reports on three experimental studies that compare the brand effects of advergames that enable social interactions to advergames that are not social. The results indicate that relative to non-social advergames, social advergames result in more positive game attitudes, attitudes toward the brand sponsor, and brand advocacy, particularly when advergames are novel. Finally, this article discusses implications for managers and directions for future research.     

Is the FHA Creating Sustainable Homeownership?

We produce first estimates of the sustainability of homeownership for recent Federal Housing Administration (FHA) borrowers. Unfortunately, the FHA does not produce its own statistics on sustainability. Neither does it permit researchers access to its data on internal refinances. This imposes significant barriers to entry for researchers who wish to track FHA borrower performance over time. We carefully construct the required tracking data to overcome this barrier. We forecast that no more than 75% of the 2007–2009 vintages of FHA borrowers will be able to successfully exit the FHA system. Our work raises questions about FHA's role, its accounting and its accountability.