Are we overconfident in executive overconfidence research? An examination of the convergent and content validity of extant unobtrusive measures

Building understanding of overconfident executives is central to a growing literature that spans a number of disciplines. Much of this research has utilized unobtrusive, or indirect, measures to assess executive overconfidence from secondary data sources. We analyze the convergent and content validity of seven extant unobtrusive measures of executive overconfidence. The results of our analyses indicate that these measures do not exhibit adequate convergence, suggesting that existing measures are not measuring the same construct. Further, we administer a sort task to academic colleagues to assess whether scholars believe that the seven measures are adequately assessing the intended construct. The results of our sort task indicate that scholars did not categorize any of the seven measures as sufficient for measuring overconfidence. We conclude with suggestions for future research to address the inadequate convergent and content validity found in our assessment of extant measures of executive overconfidence.     

The effects of new firm formation on regional development over time: The case of Great Britain

This paper re-examines the link between new firm formation and subsequent employment growth. It investigates whether it is possible to have the wrong type of entrepreneurship—defined as new firm formation which leads to zero or even negative subsequent employment growth. It uses a very similar approach to that of Fritsch and Mueller (Regional Studies, 38(8), 961–976, 2004), confirming their findings that the employment impact of new firm formation is in three discrete phases. Then, using data for Great Britain, the paper shows the employment impact of new firm formation is significantly positive in the high-enterprise counties of Great Britain. However, for the low-enterprise counties, it shows that new firm formation has a negative effect on employment. Of the 15 low-enterprise regions, eight are Scottish (of nine Scottish regions in our data base) and three are North East Counties (of four). Our findings imply that having the “wrong type of entrepreneurship” is indeed possible.

Ten Years of Public Interest Disclosure Legislation in the UK: Are Whistleblowers Adequately Protected?

Purpose The purpose of this article is to assess the operation of the UK’s Public Interest Disclosure Act 1998 (PIDA 1998) during its first 10 years and to consider its implications for the whistleblowing process. Method The article sets the legislation into context by discussing the common law background. It then gives detailed consideration to the statutory provisions and how they have been interpreted by the courts and tribunals. Results In assessing the impact of the legislation’s approach to whistleblowing both in the UK and elsewhere, the author draws upon empirical research. Conclusion The author concludes that PIDA 1998 has not adequately protected whistleblowers and makes 12 recommendations for change. Despite the European Commission’s acknowledgement that whistleblowers can play a part in the fight against corruption, the author notes that common standards for their protection still seem a long way off.     

Accounting Window Dressing and Template Regulation: A Case Study of the Australian Credit Union Industry

This article documents the response of cooperative institutions that were required to adhere to new capital adequacy regulations traditionally geared for profit-maximising organisations. Using data from the Australian credit union industry, we demonstrate that the cooperative philosophy and internal corporate governance structure of cooperatives will lead management to increase capital adequacy ratios through the application of accounting window dressing techniques. This is opposite to the intended purpose of template regulation aimed at efficiently increasing operating margins and lowering risk. Our results raise several debatable issues regarding the ethics of accounting management and the imposition of one-shoe-fits-all external regulation.      

Determinants of the adoption of HRM practices in tourism SMEs in Spain: an exploratory study

This paper explores the relationship between the adoption of HRM practices in Small and Medium-sized Enterprises (SMEs) and the characteristics of the firm and the person responsible for HRM. We propose a conceptual model based on the resource-based view, which is tested with quantitative data from 164 tourism’s SMEs in Catalonia (Spain). As predicted, the adoption of HRM practices is positively associated with the presence of an HRM department. Also, SMEs in which the person responsible for HRM has previous experience in similar positions are greater adopters of HRM practices. Finally, SMEs which cooperate with other organizations are more likely to implement HRM practices.     

Self-brand connections: The role of attitude strength and autobiographical memory primes

According to the self-brand connection (SBC) construct, brand associations are used to construct one's self or to communicate one's self to others [Escalas JE. Narrative processing: building connections between brands and the self. unpublished dissertation 1996; Duke University.]. Study 1 reveals that: (1) SBCs significantly influence brand evaluations and attitude strength; (2) females exhibit stronger SBCs overall relative to their male counterparts; and (3) higher levels of SBCs impact attitude strength particularly for females in response to the gendered brand studied here — a sports organization, the WNBA. Study 2 focused on a non-gendered brand. The results showed that consumer fans who identified with the in-group (the home team) reported higher levels of SBCs than those who identified with the out-group. Finally, when autobiographical memory primes are presented from the perspective of the in-group, SBCs are higher than when these memory primes are presented from the perspective of an out-group.     

Challenges and opportunities in high-dimensional choice data analyses

Modern businesses routinely capture data on millions of observations across subjects, brand SKUs, time periods, predictor variables, and store locations, thereby generating massive high-dimensional datasets. For example, Netflix has choice data on billions of movies selected, user ratings, and geodemographic characteristics. Similar datasets emerge in retailing with potential use of RFIDs, online auctions (e.g., eBay), social networking sites (e.g., mySpace), product reviews (e.g., ePinion), customer relationship marketing, internet commerce, and mobile marketing. We envision massive databases as four-way VAST matrix arrays of Variables?×?Alternatives?×?Subjects?×?Time where at least one dimension is very large. Predictive choice modeling of such massive databases poses novel computational and modeling issues, and the negligence of academic research to address them will result in a disconnect from the marketing practice and an impoverishment of marketing theory. To address these issues, we discuss and identify the challenges and opportunities for both practicing and academic marketers. Thus, we offer an impetus for advancing research in this nascent area and fostering collaboration across scientific disciplines to improve the practice of marketing in information-rich environment.     

Modeling social interactions: Identification, empirical methods and policy implications

Social interactions occur when agents in a network affect other agents’ choices directly, as opposed to via the intermediation of markets. The study of such interactions and the resultant outcomes has long been an area of interest across a wide variety of social sciences. With the advent of electronic media that facilitate and record such interactions, this interest has grown sharply in the business world as well. In this paper, we provide a brief summary of what is known so far, discuss the main challenges for researchers interested in this area, and provide a common vocabulary that will hopefully engender future (cross disciplinary) research. The paper considers the challenges of distinguishing actual causal social interactions from other phenomena that may lead to a false inference of causality. Further, we distinguish between two broadly defined types of social interactions that relate to how strongly interactions spread through a network. We also provide a very selective review of how insights from other disciplines can improve and inform modeling choices. Finally, we discuss how models of social interaction can be used to provide guidelines for marketing policy and conclude with thoughts on future research directions.     

Economic Perspectives on Health Information Technology

It seems paradoxical that health care spending and examples of inferior health care have been rising rapidly at the same time. An important factor is the slow pace at which the health care system has adopted information technology (IT). This paper discusses the dimensions of the problems that could be mitigated by effective use of IT in the health care system, their consequences, and their potential solutions. It also discusses the economic and institutional barriers to deploying IT and how the inherent economies of scale in IT are likely to lead to new problems of competition within the health care system. Inasmuch as this paper was based on an address followed by a question-and-answer period, it also includes an edited version of the recorded questions and answers.JEL Classification I180, I190     

The power of business models

Over the past few years, “business models” have surged into the management vocabulary. But, while it has become quite fashionable to discuss business models, there is still much confusion about what business models are and how they can be used. In fact, business models can serve a positive and powerful role in corporate management. While other authors have recently offered definitions of “business model,” none appear to be generally accepted. This lack of consensus may in part be attributed to interest in the concept from a wide range of disciplines, all of which have found a connection to the term. To help managers better understand business models, this paper reviews the extant literature and identifies and classifies the components of business models cited therein. Components were classified into four primary categories: strategic choices, the value network, creating value, and capturing value. To address the absence of a generally accepted definition of a business model, a new definition that integrates and synthesizes the earlier work is offered. Based on the proposed definition, business models are then contrasted with strategy. Four problems associated with business models are also discussed.