The performance implications of demand-side diversification: evidence from the US telecommunications sector, 1990–1996

This article contributes to the emerging demand-side perspective in strategy by explaining the demand-side sources of the systematic performance differences (a) between firms that diversify to offer complementary products and those who choose not to diversify, and (b) across and within diversifying firms over time. The US Telecommunications Services sector during 1990–1996 provides a dynamic research setting to test our hypotheses concerning the value-generating effect of shared demand-side strategic assets across the diversifying firms' home- and target-market. We find that the overall quality of demand-side strategic assets of local telephone companies who chose to diversify to offer complementary long-distance services (to their local telephony customers) is higher than those who chose not to diversify. We also find that the variation in market-shares of the diversified local telephone companies in their respective target market(s) for complementary long-distance services is positively influenced by the quality of demand-side strategic assets deployed in the target markets.     

Viewpoint: let's teach medical students what patient partnership in clinical practice can be,with the involvement of educationally engaged patients

As highly influential health consumers, the importance of the patient's voice is portrayed in the literature, leading to new directions in heath policy and practice. The authors' experience of patient partnership in the context of medical education has provided us with an opportunity to develop an understanding of what patient partnership in education should be about and how this can be implemented in a sustainable manner within undergraduate curriculum. This viewpoint outlines the context for our philosophy of providing students with the opportunity to engage with patients' stories and needs, and to graduate students ready to conduct consultations in a patient centred manner. The Patient Partner Program is the vehicle by which this teaching and learning approach occurs. The Patient Partner Program recruits actual volunteer community patients to be educationally engaged with senior medical students, participating in regular weekly small group teaching encounters. The contribution of these patients is significant and there is evidence that patients themselves recognize the importance of their role in the programme. We believe the strength of the Patient Partner Program lies in the nurturing of relationships and the engagement of those involved. The challenges of achieving and maintaining true patient partnership are acknowledged including the students' perception of their learning needs as they move towards their junior doctor role, and providing students with meaningful formative feedback. These challenges should not be deterrents for pursuing partnership with patients in an educational setting.     

BASES OF INTERORGANIZATION CO-OPERATION: PROPENSITY, POWER, PERSISTENCE*

Co-operation may enable organizations to attain ends that they cannot achieve alone. However, the co-operating partners must have an unusual mix of (1) propensity, (2) power, and (3) persistence. Joint ventures are used in this article to elucidate these critical elements in the relationship.     

Individual Characteristics and the Disposition Effect: The Opposing Effects of Confidence and Self-Regard

We conduct two experiments to examine potential causes of the disposition effect. In Experiment 1, we rule out beliefs in mean reversion as a cause of the disposition effect. Although a belief in the mean reversion of stock prices should be independent of whether an investor owns or only follows the stock, we show only investors who own the stock behave as though prices will reverse. In Experiment 2, participants buy and sell securities over multiple periods. We find that self-regard and investing confidence (two types of self-esteem) have opposing influences on investors’ tendency to hold losing investments. Investors with lower self-regard hold losing investments longer than those with higher self-regard, and investors with higher confidence hold losing investments longer than those with lower confidence. We focus on investors’ tendency to hold losing stocks too long because prior research suggests the gain versus loss sides of the disposition effect are driven by different biases.     

Dependence and effectiveness in the nonprofit-corporate alliance: The mediating effect of objectives achievement

This study advances research on the link between dependence and perceived effectiveness in nonprofit-corporate alliances from the perspective of NPOs. Drawing on resource dependence theory and specialized nonprofit literature, the authors develop a theoretical framework that allows examination of factors that contribute to alliance effectiveness. The developed framework specifies a relationship between dependence and effectiveness accounting for the mediating effect of social and organizational objectives. Further, the article assesses the moderating effect of market conditions on these relationships. Results from a sample of 269 managers of Australian NPOs suggest that dependence does not influence effectiveness directly but that social and organizational objectives mediate this link. Furthermore, during periods of market volatility, social objectives are a stronger mediator than organizational objectives.     

How do foundations support (anti-)racism? A critical race theory perspective on philanthropy and racial equity

This research explores how philanthropic foundations responded to the killing of George Floyd and subsequent Black Lives Matter protests through a critical race theory perspective. Using qualitative content analysis of online statements, the study analyzed messages foundations conveyed about racism and anti-racism and what commitments they made to address racial equity. The findings suggest half of foundations communicated racist ideas through assimilationist and non-racist messages, and half expressed anti-racist ideas by addressing systematic racism. Further, corporate, rather than family or community foundations, conveyed more racist messages and committed to providing funds rather than adjusting organizational orientation to address racial inequity.     

SETTLING LAWSUITS WITH PIRATES

A firm licenses a product to overlapping generations of heterogeneous consumers. Consumers may purchase the product, pirate/steal it, or forego it. Higher consumer types enjoy higher gross benefits and are caught stealing at a higher rate. The firm may commit to an out-of-court settlement policy that is “soft” on pirates, so high types purchase the product and low types steal it until caught. Settlement contracts, which include both cash payments and licenses for future product use, facilitate price discrimination. Settlement may either create social value by expanding the market or destroy value by limiting market access and possibly deterring more efficient entrants.