Stock of downstream complementary assets as a catalyst for product innovation during technological change in the U.S. machine tool industry

Research summary : We investigate the effect of incumbents' stock of downstream complementary assets on their product innovation during a disruptive technological change. We theorize that a firm's stock of downstream complementary assets, by providing critical information about shifting demand conditions, will play a catalytic role in firm adaptation during such a change. Using the advent of disruptive computer numerical control machine tools in the U.S. machine tool industry during the 1970s and 1980s as the context, we find that firms with greater stocks of downstream complementary assets are likely to be product innovation leaders during such a change. Managerial summary : Disruptive changes are challenging firms across industries. We concentrate on the U.S. machine tool industry during the 1970s and 1980s when Japanese manufacturers with disruptive computer numerical control systems challenged the U.S. manufacturers. We find that, under the threat of disruption, the greater the stock of downstream complementary assets a U.S. machine tool manufacturer has, the more likely it is to be the product innovation leader with the disruptive technology. Our findings provide novel insights for managers in companies that face disruptive changes and can help them avoid the consequences of such changes as predicted by prior research. Copyright © 2016 John Wiley & Sons, Ltd.     

Housing finance reform: the future of Fannie Mae and Freddie Mac

Business Economics - Fannie Mae and Freddie Mac have been in conservatorship for over a decade. In September 2019, the U.S. Treasury proposed a plan to release the Government Sponsored Enterprises,...     

Seeing the market: performative sensemaking and the case of advertising agencies and their clients

ABSTRACT

How do market intermediaries help other market actors see the market and their opportunities for action within it? This article introduces a theoretical framework of performative sensemaking to explore this question using the case of advertising agencies and their clients. Drawing on 12 months of participant observation and 81 interviews conducted across four general market American advertising agencies, the article illustrates how advertising practitioners provide their clients with visions of what the market is and what opportunities for action lie within it, developing advertising campaigns to match that vision. These performed accounts of the market are dynamically negotiated and socially embedded, reflecting the identities of the clients, their target audiences, and the intermediaries themselves. Because intermediaries dramaturgically perform these interpretations of the market for their client in micro-level interactions, they must also deal with contestation and negotiation over their visions of the market.     

Sustainable Entrepreneurship Research: Taking Stock and looking ahead

The recognition of entrepreneurship as a solution to, rather than a cause of, environmental degradation and social inequality moved the field to identify a new type of entrepreneurial activity, namely sustainable entrepreneurship. Scholarly interest has spiked in recent years; however, aside from its aspirational appeal, there remains a lack of understanding of the nature of the phenomenon and the future of sustainable entrepreneurship in theory and practice. This review seeks to provide a conceptual basis for stimulating scholarly thought and improving our collective understanding of sustainable entrepreneurship as a distinct subdomain within entrepreneurship research. Based on boundary definition and delineation of main features, this review critically discusses the main challenges ahead and elaborates on the research implications and future research directions beyond current, dominant approaches to entrepreneurial action. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

Defending your life: When women complain about sexual harassment

Women who complain about sexual harassment in a union work environment may find that they are the focal point of the union’s defense of the alleged harasser. The defense the union uses can be broadly defined as one of four: deny the event, blame management, blame society, and blame the victim. This study investigates the frequency with which these defenses are used and their relative effectiveness. Deny the event and blame the victim were used in more than 80% of the cases. Their use was not significantly changed over time. There was no significant difference in the arbitrator’s decision based on the defense used by the union. It is suggested that unions consider using the blame management defense because it is equally effective but does not have the same negative effects on the victim as denying the event or blaming the victim.     

MACROECONOMIC POLICY AND ELECTIONS IN OECD DEMOCRACIES*

The purpose of this paper is to test for evidence of opportunistic “political business cycles” in a large sample of 18 OECD economies. Our results can be summarized as follows: 1) We find very little evidence of pre-electoral effects on economic outcomes, in particular, on GDP growth and unemployment; 2) We see some evidence of “political monetary cycles,” that is, expansionary monetary policy in election years; 3) We also observe indications of “political budget cycles,” or “loose” fiscal policy prior to elections; 4) Inflation exhibits a post-electoral jump, which could be explained by either the pre-electoral “loose” monetary and fiscal policies and/or by an opportunistic timing of increases in publicly controlled prices, or indirect taxes.