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Postpurchase out-of-stock (PP-OOS) often happens in an online grocery context, where products appear to be available at the time a consumer places an order, but become OOS when the order is to be dispatched. This paper investigates two substitution policies that can mitigate negative responses: substitutions can match (i) on the dominant attribute and (ii) with a product from the consumers’ past purchase portfolio. According to data collected through two computer-simulated purchase experiments, involving more than 3,000 households and five product categories, matching the substitution on the dominant attribute increases acceptance, but this dominant attribute varies across\ud category differentiation level (flavor for horizontal differentiated categories like cereals or crips vs. brand for vertical differentiated categories like margarine or ketchup). Category differentiation also informs acceptance of national brand or private-label flavor substitutes, such that, same-flavor private label is prefered more in horizontal differentiated categories. Matching on the basis of previous purchases has positive effects for both category differentiation levels, and when combining both policies, the previous purchase matching effect grows stronger for same flavor, rather than same brand, matching. These detailed insights establish several key managerial implications for substitution policies in online grocery contexts.

Obesity is increasing worldwide, and in many countries, the problem is particularly serious among lower-income groups. Front-of-pack nutritional warning labels are a prominent regulatory tool to fight obesity and have been implemented or are currently being debated in many countries. Existing studies document that warning labels incentivize consumers to substitute away from unhealthy products. However, not much is known about equilibrium price changes in response to consumers’ utility for warning labels. Using household purchase data in the cereal category, this article studies the adjustments of prices after the mandatory introduction of warning labels in Chile. The authors develop a model showing that warning labels lead to higher prices of labeled cereals, as is also observed in data. In contrast, prices of unlabeled products tend to drop or at least increase less, incentivizing price-sensitive consumers to remain in the category. The authors decompose postlabeling market share adjustments into a pure label effect that fixes prices at initial levels after regulation and a total effect that accounts for price reoptimizations. Their findings point to self-enforcing effects of a warning label regulation as the price adjustments amplify policy makers' goal of reducing unhealthy food intake, especially because market forces incentivize low-income segments to choose healthier alternatives.

The field of international business (IB) has been successful in developing a unique body of knowledge on the multinational corporation and on country-level contexts. A recurring debate concerns its claim to uniqueness, and to associated scholarly characteristics that distinguish IB from other fields of research. I discuss what makes IB research unique by looking at what IB theory can explain and predict. To that end, I leverage key theoretical arguments and empirical insights to advance an understanding of IB centered around a firm's ability to create added value in more than one location. I introduce a stylized model of the multi-locational firm embedded in multiple business systems characterized by equifinality. As a result of the qualitative disjunctures that separate one place from another, multi-locational firms are confronted with additional managerial and organizational challenges. These challenges are rooted in the process of "othering". Theorizing on the critical constructs of place, space, and organization, I argue that IB offers the most generalizable approach to understanding firms doing business in more than one location. IB's ultimate uniqueness lies in the potential of advancing a general theory of the firm in space.Le domaine des affaires internationales (International Business - IB) a réussi à développer un corpus unique de connaissances sur l’entreprise multinationale et les contextes au niveau du pays. Un débat récurrent porte sur sa prétention à l'unicité et les caractéristiques scientifiques associées qui distinguent l'IB des autres domaines de recherche. Je discute de ce qui rend la recherche en IB unique en examinant ce que la théorie de l'IB peut expliquer et prévoir. Pour ce faire, je m'appuie sur des évidences empiriques et des arguments théoriques clés afin d’élaborer une meilleure compréhension de l’IB centrée sur la capacité d'une entreprise à créer de la valeur ajoutée dans plus d'une localisation. J'introduis un modèle stylisé de l'entreprise multi-localisée encastrée dans de multiples systèmes commerciaux caractérisés par l'équifinalité. En raison des disjonctions qualitatives qui séparent un lieu d'un autre, les entreprises multi-localisées sont confrontées à des défis organisationnels et managériaux supplémentaires. Ces défis sont ancrés dans le processus d'« altérisation ». M'appuyant sur les construits cardinaux de lieu, d'espace et d'organisation, j’argumente que l'IB apporte l'approche la plus généralisable pour comprendre les entreprises opérant dans plus d'une localisation. L'unicité suprême de l'IB réside dans son potentiel à faire progresser une théorie générale de l'entreprise dans l'espace.El campo de negocios internacionales (IB por sus iniciales en inglés) ha venido desarrollando exitosamente un cuerpo de conocimientos único sobre la empresa multinacional y los contextos nacionales. Un debate recurrente se refiere a su pretensión de ser único y a las características académicas asociadas que distinguen a las empresas internacionales de otros campos de investigación. Discuto lo que hace que la investigación sobre negocios internacionales sea única examinando lo que la teoría de negocios internacionales puede explicar y predecir. Para esa finalidad, me apalanco en los principales argumentos teóricos y las ideas empíricas para avanzar en la comprensión de la IB centrada en la capacidad de una empresa para crear valor agregado en más de un lugar. Introduzco un modelo estilizado de empresa multilocalizada integrada en múltiples sistemas empresariales caracterizados por la equifinalidad. Como resultado de las disyuntivas cualitativas que separan un lugar de otro, las empresas multilocalizadas se enfrentan a retos adicionales de gestión y organización. Estos retos tienen su origen en el proceso de “otredad”. Teorizando sobre los conceptos críticos de lugar, espacio y organización, sostengo que negocios internacionales ofrece el enfoque más generalizable para entender a las empresas que hacen negocios en más de un lugar. La particularidad fundamental de la negocios internacionales radica en el potencial de avance de una teoría general de la empresa en el espacio.A área de negócios internacionais (IB) tem tido sucesso no desenvolvimento de um corpo único de conhecimento sobre a corporação multinacional e contextos em nível de país. Um debate recorrente diz respeito à sua reivindicação de singularidade e características acadêmicas associadas que distinguem IB de outros campos de pesquisa. Discuto o que torna a pesquisa em IB única ao observar o que a teoria em IB pode explicar e prever. Para esse fim, utilizo essenciais argumentos teóricos e insights empíricos para avançar na compreensão de IB centrado na capacidade de uma empresa de criar valor agregado em mais de um local. Apresento um modelo estilizado da empresa multilocalizada incorporada em vários sistemas de negócios caracterizados pela equifinalidade. Como resultado das disjunções qualitativas que separam um lugar do outro, as empresas multilocais são confrontadas com desafios administrativos e organizacionais adicionais. Esses desafios estão enraizados no processo de ostracismo. Teorizando sobre os construtos críticos de lugar, espaço e organização, argumento que IB oferece a abordagem mais generalizável para entender empresas que fazem negócios em mais de um local. A singularidade decisiva de IB está no potencial de avançar uma teoria geral da firma no espaço.国际商务 (IB) 领域成功地开发了关于跨国公司和国家层面情境的独特知识体系。一个反复出现的争论涉及其声称的独特性， 以及将 IB 与其它研究领域区分开来的相关学术特征。我通过审视 IB 理论可解释和预测的内容来讨论是什么让 IB 研究与众不同。为此， 我利用关键的理论论据和实证见解来增进对以公司在多于一个地点创造附加值的能力为中心的IB 的理解， 我提出了一个以等价性为特征的嵌入多业务系统中的多地点公司的程式化模型。由于将一个地方与另一个地方分隔开来的性质脱节， 多地点公司面临额外的管理和组织挑战。这些挑战植根于“他者化”过程。通过对场地、空间和组织的关键概念进行理论化， 我认为 IB 提供了一种最通用的方法来理解在多个地点开展业务的公司。IB 的最终独特性在于在空间发展公司通用理论的潜力。.

© 2022 The Authors. Journal of Organizational Behavior published by John Wiley & Sons Ltd.Based on social cognitive theory (SCT), we develop and test a model that links ethical psychological climate to ethically focused proactive behavior (i.e., ethical voice and ethical taking charge) via two distinct mechanisms (i.e., duty orientation and moral potency). Results from multi-wave field studies conducted in the United States, Turkey, France, Vietnam, and India demonstrate that an ethical psychological climate indirectly influences employees' ethical voice and ethical taking charge behaviors through the dual mechanisms of duty orientation and moral potency. Additionally, we find that individuals' moral attentiveness strengthened these mediating processes. Together, these findings suggest that ethical psychological climate is an important antecedent of ethically focused proactive behavior by stimulating individuals' sense of duty and enhancing their moral potency, particularly when employees are already highly attuned to moral issues.

Employing a panel (1995-2015) of large R&D spending pharmaceutical firms, we investigate how internal basic research increases a firm’s innovative performance. We disentangle two mechanisms through which internal basic research affects technology development: (1) as strengthening of the firm’s absorptive capacity to build on externally conducted science, and (2) as a direct source of the firm’s innovation. We find that the positive relationship between internal basic research and innovation performance is significantly mediated by these two mechanisms, with the absorptive capacity mechanism relatively more important. The mediation relationships are more pronounced in recent years, with basic research as a direct source of innovation increasing in importance. This pattern is associated with a decline of corporate investments in basic research over time, and suggests that firms have adopted a more judicious and targeted approach to basic research aimed at getting more leverage out of a smaller commitment to basic research. ispartof: Industry And Innovation vol:29 issue:3 pages:396-424 status: Published online

Social entrepreneurs need resources to develop their organizations and catalyze social impact. Existing research focuses on how social entrepreneurs access and use resources, yet it neglects how they search for resource holders. This issue is particularly salient in social entrepreneurs’ decisions about whom to approach for interpersonal feedback as a valuable resource. The current literature offers lists of individuals whom social entrepreneurs approach for feedback and implies these individuals can be easily accessed. Thus, it offers little insight into how social entrepreneurs select whom to approach for feedback and why, or why they struggle to access feedback. We conducted an in-depth inductive study based on 82 interviews with 36 nascent social entrepreneurs to investigate how they search for and select individuals to approach for feedback within and outside their social networks through an iterative appraisal process. Our findings start to open the black box of searching for resource holders in the resource mobilization process and offer insights on power and stigma in social entrepreneurship.

Entrepreneurship can be fulfilling and enhance wellbeing, but also highly stressful and diminish wellbeing. This meta-analytical review synthesizes 319 effect sizes from 94 studies and 82 countries to establish whether individuals derive greater wellbeing from working for themselves or for someone else. The answer is partly positive in favor of entrepreneurship but depends on the components of wellbeing under investigation (positive wellbeing or negative wellbeing/mental illbeing) and the institutional context (especially the rule of law). We contribute by developing the component view of wellbeing as an organizing framework and by advancing an institutional perspective to guide research on entrepreneurs’ wellbeing.

ispartof: COGENT BUSINESS & MANAGEMENT vol:10 issue:1 status: accepted

Contains fulltext : 235981.pdf (Publisher’s version ) (Open Access) In this study, we expand on the existing work on job crafting by focusing on (1) within-person fluctuation in affective experiences in relation to job crafting and person-job fit and (2) between-person fluctuations in personal growth initiative (PGI) as an important boundary condition of these relationships. Using multilevel data from 116 employees (341 observations), our results showed that fluctuations in positive active emotions (PAE) and negative active emotions (NAE) related positively to daily job crafting; this relationship was moderated by overall PGI levels. Next, we found a positive association between daily job crafting and daily person-job fit. Finally, we found indirect effects from NAE and PGI to daily fluctuations in person-job fit via daily fluctuations in job crafting; NAE and PGI energized employees to engage in daily job crafting, which contributed to their daily person-job alignment. We discuss implications for theory and practice. 20 p.

Organizational aesthetics comprises a way of understanding organizational life based on immediate sensory reactions (i.e., sight, hearing, taste, smell, and touch) to the material components of organizing (e.g., artifacts, physical settings, and material practices). Despite the growing interest in the topic, however, research is fragmented across management areas. To advance scholarly knowledge in this field, we reviewed the empirical work dealing with aesthetics. Our review yields two major insights. First, we identify three perspectives on the role of aesthetics. Scholars have treated aesthetics as (1) a directed stimulus (that elicits product evaluation and work organization), (2) a knowledge tool (that is entwined with creative work and everyday tasks), or (3) an open-ended outcome (that serves as a personal experience). Second, we find that each perspective highlights emotional and cognitive mechanisms through which aesthetics is implicated in organizing. Building on these two insights, our review offers an integrative framework that provides a comprehensive picture of the state of the field, illuminating the work of aesthetics in and around organizations and providing avenues for future studies.

Multiple institutional affiliations (or co-affiliations) occur when an academic belongs to more than one organisation. Recent research shows an increase in academics with multiple affiliations, but evidence on how these are organised and on academics’ motivations is mainly anecdotal. In this study we develop a typology of co-affiliations, which identifies four types based on their purpose and origin. We draw on results from a unique international survey of academics in three major science nations (the UK, Germany and Japan) to study the different factors that could explain the four types of co-affiliations. The analysis shows that academics’ motivations (networking/prestige, resources, teaching or personal income) correlate with the observed co-affiliation type. Researcher-initiated and research-focused co-affiliations are often motivated by networking and resource access while co-affiliations that serve other than research purposes are more often income-motivated. Keywords: Multiple institutional affiliations, academic labour market, resource access, k-means clustering, science policy

This article presents a synthesizing framework of the determinants of open innovation adoption in public organizations. We examine the fragmented literature and integrate earlier results. To provid...

We study whether carbon emissions affect the cross-section of US stock returns. We find that stocks of firms with higher total carbon dioxide emissions (and changes in emissions) earn higher returns, controlling for size, book-to-market, and other return predictors. We cannot explain this carbon premium through differences in unexpected profitability or other known risk factors. We also find that institutional investors implement exclusionary screening based on direct emission intensity (the ratio of total emissions to sales) in a few salient industries. Overall, our results are consistent with an interpretation that investors are already demanding compensation for their exposure to carbon emission risk.

A new design can be compared with its contemporaries or older designs. In this study, we argue that the temporal distance between the new design and its comparison play an important role in understanding how a new design’s similarity with other designs contributes to its valuation. Construing the value of designs as a combination of their informational value and their expressive value, we propose the “anchored differentiation” hypothesis. Specifically, we argue that expressive value (which is enhanced by how much the new design appears different from others) is emphasized more than informational value (which is enhanced by how much the new design appears similar to others) compared with contemporary designs. Informational value, however, is emphasized more than expressive value when compared against designs from the past. Therefore, both difference from other contemporary designs (contemporary differentiation) and similarity to other past designs (past anchoring) help increase the value of a new design. We find consistent evidence for our theory across both a field study and an experimental study. Furthermore, we show that this is because temporal distance changes the relative emphasis on expressive and informational values. We discuss our contribution to the growing literature on optimal distinctiveness and design innovation by offering a dynamic perspective that helps resolve the tension between similarities and differences in evaluating new designs.

Does national culture influence entrepreneurship? Given that entrepreneurship and the economic, formal institutional, and cultural characteristics of nations are deeply intertwined and co-vary, it is difficult to isolate the effect of culture on entrepreneurship. In this study, we examine the self-employment choices of second-generation immigrants who were born, educated, and currently live in one country, but were raised by parents stemming from another country. We argue that entrepreneurship is influenced by durable, portable, and intergenerationally transmitted cultural imprints such that second-generation immigrants are more likely to become entrepreneurs if their parents originate from countries characterized by a strong entrepreneurial culture. Our multilevel analysis of two independent samples—65,323 second-generation immigrants of 52 different ancestries who were born, were raised, and live in the United States and 4,165 second-generation immigrants of 31 ancestries in Europe—shows that entrepreneurial culture is positively associated with the likelihood that individuals are entrepreneurs. Our results are robust to alternative non-cultural explanations, such as differences in resource holdings, labor market discrimination, and direct parent-child linkages. Overall, our study highlights the durability, portability, and intergenerational transmission of entrepreneurial culture as well as the profound impact of national culture on entrepreneurship. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.1645 .

We find dealer-level evidence that recent regulation on the leverage ratio requirement causes deviations from covered interest parity. Our analysis uses a unique data set of currency derivatives with disclosed counterparty identities together with exogenous variation introduced by the U.K. leverage ratio framework. Dealers who are affected by the regulatory shock charge an additional premium of about 20 basis points per annum for synthetic dollar funding relative to unaffected dealers. This finding holds even after controlling for changes in clients' demand. Also, some clients increase their trading activity with unaffected dealers with whom they already had a preexisting relationship.

On October 26, 2008, Porsche announced a largely unexpected domination plan for Volkswagen. The resulting short squeeze in Volkswagen’s stock briefly made it the most valuable listed company in the world. We argue that this was a manipulation designed to save Porsche from insolvency and the German laws against this kind of abuse were not effectively enforced. Using hand-collected data we provide the first rigorous academic study of the Porsche-VW squeeze and show that it significantly impeded market efficiency. Preventing manipulation is important because without efficient securities markets, the EU’s major project of the Capital Markets Union cannot be successful.

Almost two decades ago, Prahalad and Hammond [Harv Bus Rev, 80(9):48–59, 2002] introduced the base/bottom of the pyramid (BOP) approach to profitably serving the poor with business models adapted from developed markets while alleviating poverty. In response to disappointing results and ethical criticism, the BOP approach evolved from a just-for-profit approach with a passive role of the poor to an inclusive development approach that integrates the principles of the triple bottom line. A recent review of the BOP literature [Dembek et al., J Bus Ethics 165(3):365–382, 2020], however, reveals a lack of empirical evidence to support the sustainable BOP approach. In this paper, we specify the assumptions underlying the sustainable BOP approach and test them using structural equation modeling with clustered robust standard errors on a unique dataset of 212 firms. Our findings show that BOP business model involvement and adaptive capacity are significant drivers of the triple bottom line at the BOP; however, business model adaptive capacity does not guarantee an ecologically sustainable performance at the BOP. We find that there is a need for further extension of the ethical foundations of the sustainable BOP approach.

Research Summary The growth of emerging economies has attracted R&D investments by multinational enterprises, but firms have struggled to protect their knowledge assets in these environments with weak intellectual property rights protection. Knowledge misappropriation may be reduced if firms use cross-unit R&D teams to strengthen intra-firm interdependencies and control. We examine the relationship between such internal linkage strategies, foreign R&D investments, and firm market valuation in a dynamic market valuation model for 117 leading multinational firms. While foreign R&D investments are positively associated with market value, IP risks in host countries reduce it. The latter effect disappears if firms have developed a pronounced internal linkage strategy in weak IP environments. Linkage strategy bears costs and, in the absence of IP risks, is negatively associated with market value.Managerial Summary The growing market potential of emerging economies has led to an increase in research & development (R&D) activities there by multinational firms. A known challenge to multinational R&D investors in these economies is the weak protection of intellectual property rights (IPR). Firms may seek to reduce the risks of local knowledge spillovers and IPR infringement by actively embedding internal linkages in the organization of R&D and relying on cross-unit international R&D teams. We examine the consequences of such an internal linkage strategy for the performance effects of firms' investments in weak IPR countries. Based on an analysis of 1763 cross-border R&D investments by 117 leading multinational firms, we find that a firm's market value is negatively affected by new R&D investments in weak IPR countries, but that such a negative influence can indeed be mitigated if the firm's R&D organization embeds internal linkages. Consistent with this observation, we demonstrate that firms with an internal linkage strategy are able to limit local knowledge outflows in weak IPR environments. However, if an internal linkage strategy is applied in strong, rather than weak, IPR environments, it bears substantial costs and negatively affects performance.

Within national and international innovation systems a pandemic calls for large-scale action by many actors across sectors, to mobilise resources, developing and manufacturing Crisis-Critical Products (CC-Products) efficiently and in the huge quantities needed. Nowadays, this also includes digital innovations from complex epidemiological models, AI, to open data platforms for prevention, diagnostic and treatment. Amongst the many challenges during a pandemic, innovation and manufacturing stakeholders find themselves engaged in new relationships, and are likely to face intellectual property (IP) related challenges. This paper adopts an IP perspective on the COVID-19 pandemic to identify pandemic related IP considerations and IP challenges. The focus is on challenges related to research, development and urgent upscaling of capacity to manufacture CC-Products in the huge volumes suddenly in demand. Its purpose is to provide a structure for steering clear of IP challenges to avoid delays in fighting a pandemic. We identify 4 stakeholder groups concerned with IP challenges: (i) governments, (ii) organisations owning existing Crisis-Critical IP, described as incumbents in Crisis-Critical Sectors (CC-Sectors), (iii) manufacturing firms from other sectors normally not producing CC-Products suddenly rushing into CC-Sectors to support the manufacturing of CC-Products (new entrants), and (iv) voluntary grassroot initiatives that are formed during a pandemic. This paper discusses IP challenges related to the development and manufacturing of technologies and products for (i) prevention (of spread), (ii) diagnosis of infected patients and (iii) the development of treatments. We offer an initial discussion of potential response measures to reduce IP associated risks among industrial stakeholders during a pandemic., Comment: 18 pages, 4 figures, 3 tables

Background Non-pharmaceutical interventions (NPIs) are the cornerstone of infectious disease outbreak response in the absence of effective pharmaceutical interventions. Outbreak strategies often involve combinations of NPIs that may change according to disease prevalence and population response. Little is known with regard to how costly each NPI is to implement. This information is essential to inform policy decisions for outbreak response. Objective To address this gap in existing literature, we conducted a systematic review on outbreak costings and simulation studies related to a number of NPI strategies, including isolating infected individuals, contact tracing and quarantine, and school closures. Methods Our search covered the MEDLINE and EMBASE databases, studies published between 1990 and 24 March 2020 were included. We included studies containing cost data for our NPIs of interest in pandemic, epidemic, and outbreak response scenarios. Results We identified 61 relevant studies. There was substantial heterogeneity in the cost components recorded for NPIs in outbreak costing studies. The direct costs of NPIs for which costing studies existed also ranged widely: isolating infected individuals per case: US$141.18 to US$1042.68 (2020 values), tracing and quarantine of contacts per contact: US$40.73 to US$93.59, social distancing: US$33.76 to US$167.92, personal protection and hygiene: US$0.15 to US$895.60. Conclusion While there are gaps and heterogeneity in available cost data, the findings of this review and the collated cost database serve as an important resource for evidence-based decision-making for estimating costs pertaining to NPI implementation in future outbreak response policies. Supplementary Information The online version contains supplementary material available at 10.1007/s40258-021-00659-z.

This paper provides a systematic literature review of studies investigating the effect of an intervention on the efficiency of a decision-making unit, when efficiency is computed using nonparametric frontier approaches. This paper offers a guide for future research by identifying patterns in (1) the fields of application, (2) applied efficiency models, and (3) analysis of efficiency determinants. Our findings indicate that, despite the prominent role of frontier techniques in the analysis of public sector performances and the importance of the effectiveness and the policy perspective, these two approaches have long been kept separate. Nevertheless, the combination of efficiency and effectiveness is fundamental to evaluate public interventions and to detect inefficiencies at the policy level, especially in key sectors such as education, health, and environment.

Ecosystems are distinguished from other structural arrangements for value co-production by the nature of their governance and coordination challenges. As ecosystems are marked by their relative non-reliance upon formal, 1–1 supplier contracts to govern and coordinate productive activities, they need to find non-hierarchical ways of orchestrating ecosystem constituents such that a coherent system-level value offering is enabled and targeted at a defined user audience. Importantly, ecosystems cannot rely on ‘command-and-control’ governance to coordinate inputs from different participants, as would be the case of conventional supply chains. Instead, ecosystem leaders need to persuade others to make voluntary inputs that are consistent with the ecosystem’s overarching value offering. I call this task ‘ecosystem orchestration’. In this essay I suggest an ecosystem orchestration framework that distinguishes between technological, economic, institutional, and behavioural layers of ecosystem orchestration. I begin by highlighting distinctive governance challenges of ecosystems. I then provide a brief overview of the ecosystem orchestration literature. Then I introduce the different domains in which orchestration can be exercised. I conclude with a framework for orchestrating innovation ecosystems from birth to maturity. In addition to distinguishing between and describing technological, economic, institutional, and behavioural layers of ecosystem orchestration, the model also distinguishes between three stages of ecosystem momentum creation: initiation, scaling, and control. This framework has been designed to help practitioners to design strategies for ecosystem momentum creation.

In this paper, we examine the impact of including environmental, social and governance (ESG) criteria in the allocation of equity portfolios. We focus on the risk and return characteristics of the resulting ESG portfolios and investment strategies. Two specific measures are considered to quantify the ESG performance of a company; the ESG rating and the greenhouse gas (GHG) emission intensity. For both measures, we carry out empirical portfolio analyses with assets in either the STOXX Europe 600 or the Russell 1000 index. The ESG rating data analysis does not provide clear-cut evidence for enhanced performance of portfolios with either high or low ESG scores. We moreover illustrate that the choice of rating agency has a significant impact on the performance of the resulting ESG-constrained portfolios. Secondly, we study the impact of GHG emission reductions and increases. We show that emission reductions do not necessarily lead to increased risk or diminished returns, which gives confidence in a smooth transition towards the green economy pursued by the European Green Deal.

Economic theories posit conflicting hypotheses on how wealth inequality affects entrepre-neurial dynamism. We investigate the impact of wealth inequality on business dynamics by constructing local measures of household wealth inequality based on financial rents, home equity, and 1880 farmland. We then identify the effect of wealth inequality on entrepre-neurship by instrumenting it with land distribution under the 1862 Homestead Act. Wealth inequality decreases firm entry and exit, and the proportion of high-tech businesses across metropolitan statistical areas. Wealth inequality also lowers the supply of public goods, such as education. Growth in income per capita consequently lags.

Entrepreneurship is uniquely stressful. Entrepreneurs often cannot avoid entrepreneurial stressors (e.g., uncertainty, workload, resource constraints) and these stressors can deter natural recovery activities (e.g., detachment and sleep). Yet, entrepreneurs may be able to lessen the negative impact of stress on their well-being, health, and productivity by engaging in recovery. In this editorial, we outline how scholars can employ recovery interventions to ameliorate some of entrepreneurship’s ill effects and support entrepreneurs’ health, well-being, and productivity. We aim to move the focus of scholarly inquiry from documenting the health and well-being challenges of entrepreneurs, toward identifying and implementing solutions to support entrepreneurs.

This paper analyzes the effect of a discrete treatment Z on a duration T. The treatment is not randomly assigned. The confounding issue is treated using a discrete instrumental variable explaining the treatment and independent of the error term of the model. Our framework is nonparametric and allows for random right censoring. This specification generates a nonlinear inverse problem and the average treatment effect is derived from its solution. We provide local and global identification properties that rely on a nonlinear system of equations. We propose an estimation procedure to solve this system and derive rates of convergence and conditions under which the estimator is asymptotically normal. When censoring makes identification fail, we develop partial identification results. Our estimators exhibit good finite sample properties in simulations. We also apply our methodology to the Illinois Reemployment Bonus Experiment.

There is increasing recognition among scholars that entrepreneurs use framing to legitimize their ventures and the broader fields within which they operate. Yet, there is no unifying framework to bring together existing theoretical perspectives on entrepreneurial framing and to make sense of their underlying mechanisms. Based on an integrative review of prior studies, we propose a conceptual framework for organizing this important literature. Our review also suggests directions for future research on entrepreneurial framing.

PurposeThe purpose of this study is to investigate the association between certain audit committee characteristics like independence and financial expertise with financial reporting quality (FRQ) of the firms listed on the Tehran Stock Exchange (TSE).Design/methodology/approachThe sample includes the 558 firm-year observations from companies listed on the TSE during the years 2012–2017, and the study’s hypotheses were tested using multivariate regression model based on panel data.FindingsThe authors find that audit committee independence has no significant effect on corporate FRQ, whereas audit committee's financial expertise significantly improves firms' FRQ. In other words, higher financial expertise of an audit committee can lead to an increase in its FRQ. The findings of the study are robust to alternate measures of FRQ, individual analysis of the research hypotheses for each year and endogeneity problem.Originality/valueTo the best of the authors’ knowledge, this is the first study to analyze the association between audit committee characteristics and FRQ in emerging capital markets, and so, the findings of the study not only extend the extant theoretical literature concerning the audit committee in developing countries including emerging capital market of Iran but also help investors, managers, capital market regulators, policymakers and audit profession regulators to make informed decisions.

The expansion of artisanal gold mining has contributed to agrarian change in most of the global South—including West Africa: the sector offers interesting examples of technological and socio‐econom ...

Do credit ratings help enforce market discipline on banks? Analyzing a uniquely comprehensive data set consisting of 1,081 rating change announcements for 154 international financial institutions between January 2004 and December 2015, we find that rating downgrades for internal reasons, such as adverse changes in the operating performance or capital structure of banks, are associated with a significant credit default swap spread widening. However, this widening only occurs for banks that are not perceived as to be Too-Big-to-Fail (TBTF). Our findings question the reliability of credit ratings as a tool to discipline TBTF banks and suggest that regulatory monitoring should remain the main mechanism for disciplining these banks.

Sports contexts are increasingly used in management research to test and develop theory and explore managerially relevant phenomena. This growth in publications is likely driven by a series of advantages that sports data offers to management researchers. However, such positive features are not a panacea, as several drawbacks are also associated with leveraging sports data, which can limit their usefulness for management scholars. In this paper, we aim to provide management researchers guidance to leverage the advantages and avoid the drawbacks of leveraging sports contexts. To do so, we identify and review 249 papers published over the last 50 years that used sports data to advance management theories and shed light on managerial phenomena. After outlining how these works contributed to the growth of several key conversations in management research, we discuss the advantages of using sports data by outlining how they can advance management research both conceptually (e.g., theory building and radical theorizing) and empirically (e.g., triangulation and replication). We then discuss the potential drawbacks of research using sports data and suggest ways to compensate for them. We close by outlining several new directions in which scholars can leverage sports data to further advance management research.

Critics claim that patent screening is ineffective, granting low-quality patents that impose unnecessary social costs. We develop an integrated framework, involving patent office examination, fees, and endogenous validity challenges in the courts, to study patent screening both theoretically and quantitatively. In our model, some inventions require the patent incentive while others do not, and asymmetric information creates a need for screening. We show that the endogeneity of challenges implies that courts, even if perfect, cannot solve the screening problem. Simulations of the model, calibrated on U.S. data, indicate that screening is highly imperfect, with almost half of all patents issued on inventions that do not require the patent incentive. While we find that the current patent system generates positive social value, intensifying examination would yield large welfare gains. The social value of the patent system would also be larger if complemented by antitrust limits on licensing.

How can entrepreneurs protect their wellbeing during a crisis? Does engaging agility (namely, opportunity agility and planning agility) in response to adversity help entrepreneurs safeguard their wellbeing? Activated by adversity, agility may function as a specific resilience mechanism enabling positive adaption to crisis. We studied 3162 entrepreneurs from 20 countries during the COVID-19 pandemic and found that more severe national lockdowns enhanced firm-level adversity for entrepreneurs and diminished their wellbeing. Moreover, entrepreneurs who combined opportunity agility with planning agility experienced higher wellbeing but planning agility alone lowered wellbeing. Entrepreneur agility offers a new agentic perspective to research on entrepreneur wellbeing.

We test the hypothesis that security analysts discipline credit rating agencies. After all, analyst reports about a firm’s equity would no doubt be informative about its debt default probability and calibrate its credit ratings. We follow Hong and Kacperczyk (2010) in using brokerage house mergers, which eliminate redundant analysts, to shock analyst following so as to identify the causal effect of coverage on credit ratings. We find that a drop in one analyst covering increases the subsequent ratings of a company by around a significant halfrating notch. This effect is coming largely from firms with low initial analyst coverage and hence where the loss of one analyst is a sizeable percentage drop in market discipline. Our effect is stronger for firms close to default and hence where firm debt trades more like equity. The higher ratings due to fewer analysts following also result in lower bond yields.