Is yours a learning organization?

An organization with a strong learning culture faces the unpredictable deftly. However, a concrete method for understanding precisely how an institution learns and for identifying specific steps to help it learn better has remained elusive. A new survey instrument from professors Garvin and Edmondson of Harvard Business School and assistant professor Gino of Carnegie Mellon University allows you to ground your efforts in becoming a learning organization. The tool's conceptual foundation is what the authors call the three building blocks of a learning organization. The first, a supportive learning environment, comprises psychological safety, appreciation of differences, openness to new ideas, and time for reflection. The second, concrete learning processes and practices, includes experimentation, information collection and analysis, and education and training. These two complementary elements are fortified by the final building block: leadership that reinforces learning. The survey instrument enables a granular examination of all these particulars, scores each of them, and provides a framework for detailed, comparative analysis. You can make comparisons within and among your institution's functional areas, between your organization and others, and against benchmarks that the authors have derived from their surveys of hundreds of executives in many industries. After discussing how to use their tool, the authors share the insights they acquired as they developed it. Above all, they emphasize the importance of dialogue and diagnosis as you nurture your company and its processes with the aim of becoming a learning organization. The authors' goal--and the purpose of their tool--is to help you paint an honest picture of your firm's learning culture and of the leaders who set its tone.     

Income Diversification and Bank Performance: Evidence from Italian Banks

Using annual data from Italian banks, we study the link between non-interest revenues and profitability. We find that income diversification increases risk-adjusted returns. Our results provide econometric evidence consistent with current studies on EU banks, but do not support findings on the U.S. experience. In our view, the differences depend primarily on the relative importance of local banks: we find that the relation is stronger at large banks. In addition, we find that there are limits to diversification gains as banks get larger. Small banks can make gains from increasing non-interest income, but only when they have very little non-interest income share to start with. The source of non-interest income is less important than its level.

K-means clustering of item characteristic curves and item information curves via functional principal component analysis

Quality & Quantity - The assessment of students’ performances and learning skills plays a key role in the educational context. Common tools for analyzing test data are item response...     

The Route to Take‐up: Evidence from the UK Pension Credit Reform

Viable routes to increase the take‐up of cash transfer programs include raising the financial incentive to claim and reducing claiming barriers. Older people's response to both is evaluated exploiting the introduction of Pension Credit in the UK. The reform involved improved application assistance, simplified claiming procedure, extended recertification interval, less intrusive reporting requirements and outreach campaigning; also, the cash entitlement was increased for a subgroup of pensioners. The behavioral response is identified using Family Resources Survey data. Results support the effectiveness of financial incentives, while no effect is found in the case of reducing barriers policies when unaccompanied by financial incentives.     

Cash flow vs. collateral‐based credit

We study factors affecting micro, small and medium‐sized enterprises (MSMEs) receiving loans and the effect of these loans on MSMEs performance. We study two types of loans – a new type based on cash flows and a traditional‐style loan based on collateral. We use unique surveys of MSMEs from Bulgaria, Georgia, Russia and Ukraine. We find that MSMEs receiving a cash flow or collateral loan in the past are more likely to receive the same type of loan (and larger sized) in the future and that cash flow loans may be the preferred form of credit. Both types of loans are related positively to most performance indicators, enabling the MSMEs for instance to be more profitable and expand production. The cash flow loans also appear to be particularly attractive credit delivery schemes for micro and small enterprises. Finally, the effects of the smallest loans are often negative, suggesting that the minimum loan size is an important policy issue.     

The Drivers of E-tailers' Price Levels

One of the most important topics in online pricing is understanding the drivers of online price levels for different types of retailers, in order to better understand competition across retail channels. We developed a conceptual framework and conducted an empirical analysis on price levels in the books category among different e-tailers (pure play and multichannel) in Italy and obtained a dataset comprising 5,400 price quotes during 2002. We ran a correlation analysis that showed that e-tailer graphics, branding and trust, and shipping services are highly correlated to price levels. Moreover, we developed a regression analysis that showed that first impact attributes like graphics and navigability are the most important drivers of online price levels. We identify some areas of future research and offer some managerial insights.     

From network ties to network structures: Exponential Random Graph Models of interorganizational relations

Theoretical accounts of network ties between organizations emphasize the interdependence of individual intentions, opportunities, and actions embedded in local configurations of network ties. These accounts are at odds with empirical models based on assumptions of independence between network ties. As a result, the relation between models for network ties and the observed network structure of interorganizational fields is problematic. Using original fieldwork and data that we have collected on collaborative network ties within a regional community of hospital organizations we estimate newly developed specifications of Exponential Random Graph Models (ERGM) that help to narrow the gap between theories and empirical models of interorganizational networks. After controlling for the main factors known to affect partner selection decisions, full models in which local dependencies between network ties are appropriately specified outperform restricted models in which such dependencies are left unspecified and only controlled for statistically. We use computational methods to show that networks based on empirical estimates produced by models accounting for local network dependencies reproduce with accuracy salient features of the global network structure that was actually observed. We show that models based on assumptions of independence between network ties do not. The results of the study suggest that mechanisms behind the formation of network ties between organizations are local, but their specification and identification depends on an accurate characterization of network structure. We discuss the implications of this view for current research on interorganizational networks, communities, and fields.     

The psychological costs of pay‐for‐performance: Implications for the strategic compensation of employees

Most research linking compensation to strategy relies on agency theory economics and focuses on executive pay. We instead focus on the strategic compensation of nonexecutive employees, arguing that while agency theory provides a useful framework for analyzing compensation, it fails to consider several psychological factors that increase costs from performance‐based pay. We examine how psychological costs from social comparison and overconfidence reduce the efficacy of individual performance‐based compensation, building a theoretical framework predicting more prominent use of team‐based, seniority‐based, and flatter compensation. We argue that compensation is strategic not only in motivating and attracting the worker being compensated but also in its impact on peer workers and the firm's complementary activities. The paper discusses empirical implications and possible theoretical extensions of the proposed integrated theory. Copyright © 2012 John Wiley & Sons, Ltd.     

Fostering corporate sustainability in tourism management through social values within collective value co-creation processes

Collective value co-creation is not fully explored in management research. The phenomenon of social value co-creation has not been investigated in detail either, particularly regarding sustainable tourism management. In our work, we investigate the role of social values within the collective value co-creation process, as a key factor for building sustainable tourism management practices able to generate sustainable benefits to all stakeholders. The study setting is Sardex, a complementary currency community based in Sardinia (Italy). By adopting a qualitative methodology, and through face-to-face interviews, the entrepreneurs’ relationships were analysed using dialogue, trust, and reciprocity as core factors of value co-creation within the hospitality and tourism firms grouped in Sardex. Particularly, we explored whether, and to what extent, reciprocity was the salient factor in the process of value co-creation. Findings show that social values, and especially reciprocity, are the backbone of value co-creation: they foster corporate social orientation, which brings together corporate social responsibility and sustainability, and represent our contribution to enrichen theoretical and practical perspectives in this multidimensional field.