Contextual and Interactional Approaches to Advancing Leadership and Entrepreneurship Research

In this introductory article for the special issue of Journal of Management Studies, entitled ‘Leading Entrepreneurial Ventures: Individual and Team-Based Perspectives’, we leverage insights in the extant literature as well as those insights developed by the authors of the four articles published in response to our call for papers. Overall, we explore multiple nuanced questions with regards to research on entrepreneurship, research on leadership, and their intersection. Our goal is to begin to help guide research on entrepreneurship and leadership, and their intersection, for the next decade.     

Scaling sustainability from the organizational periphery to the strategic core: Towards a practice‐based framework of what practitioners “do”

This paper explores what sustainability managers do when attempting to scale sustainability to a strategic level within their organization. Drawing on semistructured interview data with 44 sustainability managers in large, for‐profit companies, we identify three distinct scaling microstrategies that individuals use when scaling sustainability. We label these conforming, leveraging, and shaping. Our analysis also finds that sustainability managers deploy combinations of these microstrategies in three distinct approaches, which we call the assimilation approach, the mobilization approach, and the transition approach. Finally, we interrogate the degree to which employing these different approaches achieves a peripheral, intermediate, or strategic scale of sustainability within the organizations represented in the study. Our paper contributes to theory and practice at the interface of strategy and sustainability by developing a practice‐based Scaling Approach Framework, whereby an assimilation approach is associated with organizations with sustainability at a peripheral scale, a mobilization approach is associated with an intermediate scale of sustainability, and a transition approach is associated with scaling sustainability to a strategic level. From these results, we propose a Scaling Progression Model that reflects the phases that individuals progress through when scaling sustainability.     

Significant Issues for the Future of Product Innovation

What's happening in the world of product innovation? What are the tough issues that managers are facing? And what's going to happen in the remaining years of this decade? In this article, several members of the Editorial Board of The Journal of Product Innovation Management offer their ideas about where the important problems lie. This is the fodder for a good round table discussion and through the medium of this journal we'll engage in such a discussion in this and a subsequent issue.     

VENTURE CAPITAL AND IPO LOCKUP EXPIRATION: AN EMPIRICAL ANALYSIS

Most initial public offerings (IPOs) feature “lockup” agreements, which bar insiders from selling the stock for a set period following the IPO, usually 180 days. We examine stock price behavior in the period surrounding lockup expiration for a sample of 2,529 firms from 1988 to 1997. We find that lockup expirations are, on average, associated with significant and negative abnormal returns, but the losses are concentrated in firms with venture capital backing. For the venture‐capital‐backed group, the largest losses occur for high‐tech firms and firms with the greatest post‐IPO stock price increases, the largest relative trading volume in the period surrounding expiration, and the highest quality underwriters. JEL classification: G14, G24     

Director Networks and Credit Ratings

We explore the effect of director social capital, directors with large and influential networks, on credit ratings. Using a sample of 11,172 firm‐year observations from 1999 to 2011, we find that larger board networks are associated with higher credit ratings than both firm financial data and probabilities of default predict. Near‐investment grade firms improve their forward‐looking ratings when their board is more connected. Last, we find that larger director networks are more beneficial during recessions, and times of increased financial uncertainty. Our results are robust to controls for endogeneity. Tests confirm that causality runs from connected boards to credit ratings.     

Evaluation of a patient self-directed mealtime insulin titration algorithm: a US payer perspective

Objective To model the potential economic impact of implementing the AUTONOMY once daily (Q1D) patient self-titration mealtime insulin dosing algorithm vs standard of care (SOC) among a population of patients with Type 2 diabetes living in the US.

Methods Three validated models were used in this analysis: The Treatment Transitions Model (TTM) was used to generate the primary results, while both the Archimedes (AM) and IMS Core Diabetes Models (IMS) were used to test the veracity of the primary results produced by TTM. Models used data from a ‘real world’ representative sample of patients (2012 US National Health and Nutrition Examination Survey) that matched the characteristics of US patients enrolled in the randomized controlled trial ‘AUTONOMY’ cohort. The base-case time horizon was 10 years.

Results The modeling results from TTM demonstrated that total costs in the base-case were reduced by $1732, with savings predicted to occur as early as year 1. Results from the three models were consistent, showing a reduction in total costs for all sensitivity analyses.

Limitations Data from short-term clinical trials were used to develop long-term projections. The nature of such extrapolation leads to increased uncertainty.

Conclusion The results from all three models indicate that the AUTONOMY Q1D algorithm has the potential to abate total costs as early as the first year.     

Psychophysiological Responses to Background Brand Placements in Video Games

Researchers have typically employed cognitive and affective measures to study the effectiveness of brand placements in video games. A psychophysiological approach to measuring effectiveness has been sorely lacking and is necessary to help both academics and practitioners further their understanding of how brand placements work. The current study measures individuals’ orienting responses in terms of increased skin conductance and decreased heart rate upon exposure to brands in video games. Results indicate that game players register background advertisements subconsciously even though they may not be able to explicitly recall them later. There were no differences between gamers and nongamers in the recall and recognition of brands from the video game. Furthermore, brands with preexisting favorable attitudes automatically received further processing, suggesting orienting response is an indicator of initial perception rather than further elaboration.     

Property price effects of a national wildlife refuge: Great Meadows National Wildlife Refuge in Massachusetts

The amenity value of proximity to a National Wildlife Refuge (NWR) in central Middlesex County, Massachusetts is estimated and compared to the values of proximity to five other open space types, including agricultural land, cemeteries, conservation land, golf courses, and sport/recreation parks. A hedonic model is used to explore the relationships among residential property values and proximity to these distinct types of open space. Open space characteristics in the empirical model include measures of continuous distance from each property to the nearest open space of each type and an index describing the diversity of open space types within neighborhoods of 100 and 1000 meters around a home. Results reveal that a property located 100 meters closer to the NWR than a neighboring property has a price premium of $984. Further, proximity to the NWR is valued more than proximity to agricultural land, cemeteries, and conservation land. No significant differences are found among the values of proximity to the NWR, golf courses, and sport/recreation parks.