Childhood adversity and the propensity for entrepreneurship: A quasi-experimental study of the Great Chinese Famine

Studies on the determinants of entrepreneurship emphasize that challenged adults tend to become entrepreneurs. However, research has not addressed the childhood origins surrounding the propensity for entrepreneurship. This article links childhood adversity to the propensity of individuals to become migrant entrepreneurs later in life. We test hypotheses derived from this theory in the context of whether, and when, children who survived the Great Chinese Famine of 1959–1961 became migrant entrepreneurs. Results strongly indicate that those who survived greater hardship during the Famine are more likely to become entrepreneurs, especially when they were younger during the famine years. We also find that being younger at the time of migration increased the likelihood of becoming entrepreneurs in their new locale. Overall, this study casts light on why, how and when childhood adversity shapes the propensity for entrepreneurship.     

On the quest for supply chain transparency through Blockchain: Lessons learned from two serialized data projects

The ability to look into the supply chain has long enticed SCM scholars and practitioners. The possibilities created by such visibility are endless—from risk reduction and continuity planning to inventory management and cost reduction, nothing is off the table when end‐to‐end visibility is a possibility. Because of such enticements, there is usually much buzz in the industry every time a new technology that promises visibility and transparency is brought forward. Yet, years later, stories sometimes emerge that said technologies either failed to deliver or were not everything they were made out to be. Blockchain is yet another emerging technology in this space. Some consultants promise that it will be the final answer to the transparency and visibility woes that companies currently face. Yet, there is little empirical investigation regarding how the technology may benefit adopters, what the bottlenecks may be, and to what extent it may be able to deliver on these promises, without massive system‐wide upgrades of extant hardware and computing prowess. The current study takes a step in this direction by investigating a blockchain‐driven proof of concept across an industry consortium to identify promises, possibilities, and challenges of blockchain.     

Separating microstructure noise from volatility

There are two variance components embedded in the returns constructed using high frequency asset prices: the time-varying variance of the unobservable efficient returns that would prevail in a frictionless economy and the variance of the equally unobservable microstructure noise. Using sample moments of high frequency return data recorded at different frequencies, we provide a simple and robust technique to identify both variance components.     

Tacit meaning in disguise: Hidden metaphors in new product development and market making

This article explores the role of metaphor in product development processes and market making. Based on a sociocognitive perspective of innovation dynamics and required learning by market actors, the potential of metaphors for mental model development during new product development (NPD) processes is investigated. Three roles for metaphors as cognitive focusing devices for the co-evolution of producers' and consumers' mental models are inferred: mental model communication, mental model matching, and mental model creation. These roles are illustrated by examples that reinforce the need for creativity in applying metaphors as cognitive focusing devices in NPD and market making.     

Rethinking the role of NCBs in the EMU

Five years after the introduction of unified monetary policy in the EMU, some member countries are wondering whether they have ceded too much of their policy-making powers. The fact that National Central Banks no longer carry out sizable expansionary open market or foreign exchange market operations suggests that they face substantially reduced abilities to set economic policy.This paper demonstrates that, in fact, very little power has been yielded: on the fiscal front, the force of such policy initiatives is enhanced by the fixity of the exchange rate. On the monetary front, we show that there is an observational equivalence between all Central Bank actions under fixed exchange rates. This implies that the authorities retain the same amount of policy flexibility as before. So long as they use an alternative form of policy initiative, carrying out what previously would have been characterized as sterilized foreign exchange market operations, their ability to influence the macro performance of their economy is undiminished.     

Betting Big On Consumer Gadgets

Venture Capitalists even work closely with the retailer of Best Buy Co.. They try to understand consumer trends and sometimes even get the retailer＇s advice about investing in promising young companies.     

Applying continuous improvement to teaching in another culture

As international business programs proliferate, the mixing of many cultures in the classroom creates new teaching challenges. This paper reports on how an American accounting professor coped with cultural differences at INSEAD in France. Student evaluations for the first course taught at INSEAD revealed a variety of problems that the professor tried to resolve by applying the principles of continuous improvement in the next course he taught. Confronting the students directly with the problem, enlisting their aid in improving the course, and eliciting specific feedback all combined to substantially raise the level of student satisfaction. The principles applied in this intervention are broadly applicable to college professors, not only those working with “international” students.     

Designs for estimating an extremal point of quadratic regression models in a hyperball

This paper is devoted to studying optimal designs for estimating an extremal point of a multivariate quadratic regression model in the unit hyperball. The problem of estimating an extremal point is reduced to that of estimating certain parameters of a corresponding nonlinear (in parameters) regression model. For this reduced problem truncated locally D-optimal designs are found in an explicit form. The result is a generalization of the results of Fedorov and Müller (1997) for onedimensional quadratic regression function in the unit segment. Received February 2002