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.     

Institutions and Deposit Insurance: Empirical Evidence

Do banks’ responses to changes in deposit insurance vary across countries even if the countries have comparable institutions? If so, by how much? Using data on the financial performance of large banks in 15 financially and economically developed countries, we find that where deposit insurance has an effect, it is large and varies depending on the level of economic freedom, rule of law and corruption in the bank’s home country. As in prior papers, we show that during stable economic periods, increases in deposit insurance are associated with higher bank risk, both problem loans and leverage. In most, but not all, cases stronger institutions temper these effects. The institutions’ effects are substantial. For example, average changes in the rule of law double the impact of a change in deposit insurance on bank leverage. We contribute to the substantial literature in this area by showing that the institutional effects are significant even across a set of countries with comparable institutions; by conducting a careful calibration of the economic significance of the effects; by providing evidence that during stable periods changes in deposit insurance only affect bank risk and not other measures of performance; and finally by showing that the effects of both deposit insurance and institutions vary across stable and crisis economic periods. The stable period results are consistent with the moral hazard effects of deposit insurance, while the crisis period results are consistent with endogeneity concerns that poor bank performance could drive changes in regulations.     

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.