Does regulation substitute or complement governance?

We examine whether firms utilize governance systems and increased monitoring mechanisms when information asymmetry and managerial discretion are limited. Given that such monitoring is costly, we expect regulated firms to use less monitoring if regulation substitutes for governance. Using data from initial public offerings, we document that regulated firms have greater proportions of monitoring directors and larger boards as well as use similar amounts of equity-based compensation as non-regulated firms. Further, regulated and unregulated firms are analogous in terms of observed trade-offs between traditional monitoring mechanisms and insider ownership. Finally, regulated firms appear to decrease monitoring following a period of deregulation. These findings support the hypothesis that regulation and governance are complements and are consistent with the notion that regulators pressure firms to adopt effective monitoring structures.     

Measuring entrepreneurial passion: Conceptual foundations and scale validation

Along with other affective and emotional dimensions, passion is at the heart of entrepreneurship. Yet past research on entrepreneurial passion (EP) has been hindered by the lack of a sound measurement instrument. Through a series of empirical studies conducted with samples from relevant populations, we develop and validate an instrument to capture EP and its inherent dimensions. We show that the task-specific dimensions of EP (intense positive feelings toward the domains of inventing, founding and developing, and the centrality of these domains to entrepreneurs' self-identity) are conceptually and empirically distinct from one another, and from other emotions and cognitions known to play a role in entrepreneurship. Our theory and results indicate that proper measurement of entrepreneurial passion incorporates the interaction between entrepreneurs' feelings and identity centrality for each domain. We discuss the implications of our model, instrument and findings for future research on the affective components of innovation and entrepreneurship. We also develop specific guidelines for using our validated instrument in future research.     

Employment Practices and Semiconductor Manufacturing Performance

This article analyzes the factors contributing to superior manufacturing performance in the semiconductor industry. Through an analysis of firm-level data from the United States, Asia, and Europe, we explore the relationship between firm performance along quality and quantity dimensions and three components of the employment system: skill development, employee participation in problem solving, and employee collaboration. We find that manufacturing success is related to the introduction of new production technology and the involvement of all occupations in problem solving under the leadership of engineers, who play a key (and growing) role in this high-tech industry. We find that the operators and technicians play a smaller role in creating high-performing semiconductor factories than has been found in studies of more traditional factories, such as automobiles and steel.     

The Role of Implicit Theories in Evaluations of “Plus-Size” Advertising

In this research, we examine plus-size female consumers' reactions to the use of plus-size female models in advertising. We demonstrate that not only objective body size but also implicit beliefs about the malleability of one's size affect attitudes toward a product advertised by a plus-size model. Further, we find that this interactive effect is mediated by perceived similarity to the model, and appears only when the plus-size model is used to advertise a body-relevant product. These findings contribute to the burgeoning study of larger-sized female models in advertising and suggest that “plus-size” is not a one-size-fits-all label.     

Impact of founder experience on exit intentions

Entrepreneurial exit—the process by which the founders of privately held firms leave the firm they helped to create (DeTienne, J Bus Venturing, 2010)—is an important component of the entrepreneurial process, yet researchers know very little about it. We examine entrepreneurs’ intentions to exit by a range of possible exit paths [acquisition, initial public offering (IPO), family succession, employee buyout, independent sale, liquidation], building on Gimeno et al.’s (Adm Sci Q 42:750–783, 1997) notion of thresholds as they apply to a simple survival/exit dichotomy, and expanding this to include different intended paths of exit. Our results indicate that entrepreneurs intend to pursue different exit paths based on previous entrepreneurial experience, industry experience, age, and education level. Our findings provide preliminary evidence that differences between intended exit and failure are underspecified in the literature, since exit consists of many unique paths. Also, in support of threshold theory, we find that the intended exit path is driven by factors other than firm performance.     

A mutuality perspective of psychological contracts regarding career development and job security

Psychological contracts are more likely to be fulfilled when the parties to the contract develop mutuality (agreement) concerning the expectations and obligations of both parties. This study explores the impact of psychological contract mutuality about career development responsibility and job security on the in-role and organizational citizenship behavior (OCB) performance of employees. These relationships are also tested to see if they vary by the managerial vs. non-managerial job level of the employee.     

Relationship marketing in A B2C context: The moderating role of personality traits

More and more, retailers are investing in relationship building as a strategy for enhancing customer retention in the business-to-customer (B2C) context. However, some marketing scholars have expressed concern over the usefulness of relationship marketing under certain conditions. As such, this study investigates the moderating role of personality traits on the relationship between satisfaction-driven relationship quality and behavioral loyalty. Based on a sample of 158 retail shoppers, we find that customers’ overall satisfaction with the retailer leads to quality customer–firm relationships and ultimately, behavioral loyalty to the retailer. We also found that the impact of relationship quality on behavioral loyalty depends on the consumer's personality traits, i.e., consumer innovativeness, variety seeking, and relationship proneness. These findings extend the extant relationship literature by showing that the value of relationship marketing is not universal, thereby refining our understanding of the relationship between customer behavior and relationship marketing. Implications for academics and managers are discussed.     

Spatial Dislocation and Affective Displacement: Youth Perspectives on Gentrification in London

Analyses of contemporary processes of gentrification have been primarily produced from adult perspectives with little focus on how age affects or mediates urban change. However, in analysing young people's responses to transformations in their neighbourhood we argue that there is evidence for a more complex relationship between ‘gentrifiers' and residents than existing arguments of antagonism or tolerance would suggest. Using a participatory video methodology to document experiences of gentrification in the east London borough of Hackney, we found that young people involved in this study experienced their transforming city through processes of spatial dislocation and affective displacement. The former incorporated a sense of disorientation in the temporal disjunctions of the speed of change, while the latter invoked the embodiment of a sense of not belonging generated within classed and intercultural interactions. However, there are expressions of ambivalence rather than straightforward rejection. Benefits of gentrification were noted, including conditions of alterity and the possibility to transcend normative behaviours that they found uncomfortable. Young people demonstrated the capacity to reimagine their relationship with the complex spaces they call home. The findings suggest a need to reframe debates on gentrification to include a more nuanced understanding of its differential impact on young people.