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The value that users might derive from products and services increasingly depends on their complementarity with other products and services. Whereas prior work has emphasized how firms and complementors design for complementarity, we shift attention to how complementarity arises in use. This study is situated in the smart home market where digital products offer an unbridled range of conceivable combinations, and users may combine products in their system of use that are not initially designed for complementarity. Through a multi-method multiple case study, we distinguish a user pathway besides a producer pathway to establishing complementarity. Complementarity presupposes both the identification of complementary combinations as well as creating technical compatibility between products. In the producer pathway, firms focus mostly on creating technical compatibility while in the user pathway, users identify complementary combinations that go beyond those foreseen by firms. Intermediary toolkits can assist users in creating combinations, and we find that, ultimately, the user pathway also facilitates the producer pathway. Our findings offer insights into the important role of users and intermediaries in innovation ecosystems and extend the scope of user innovation.

Water scarcity will be one of the most challenging topics to cope with in the following years, especially in the regions most affected by climate change such as the Mediterranean basin. The implementation of water reuse practices thus appears essential to satisfy future water demands in a sustainable way, helping to reduce hydric stress in water-unbalanced regions. However, it remains as an underused practice. To change this situation, the wastewater sector needs to develop some structural changes that include not only the transformation of conventional wastewater treatment plants (WWTPs) into novel reclaimed water facilities (RWF), but also some paradigm shifts regarding social, political and legal factors. The goal of this manuscript is to provide a systemic, novel and updated vision of the wastewater treatment sector and to give some recommendations for the implementation of wastewater reuse in agriculture, with a special focus on the Italian case. Extensive data regarding water reuse technologies for the refining, disinfection and advanced oxidation of wastewater is also provided. This comprehensive analysis could help to align the objectives to be achieved from all the perspectives (technical, economic, legal and socio-political), thus helping to fill current gaps and overcome barriers that hinder water reuse development.

On the basis of the EGOS 2021 sub-plenary on ‘Professions and Inequality: Challenges, Controversies, and Opportunities’, the presenters and panellists wrote four short essays on the relationship between inequality as a grand challenge and professional occupations and organizations, their structures, practices, and strategies. Individually, these essays take an inquisitorial stance on extant understandings of (1) how professions may exacerbate existing inequalities and (2) how professions can be part of the solution and help tackle inequality as a grand challenge. Taken together, the discussion forum aims at advancing scholarly debates on inequality by showing how professions’ scholarship may critically interrogate extant understandings of inequality as a broad, multifaceted concept, whilst providing fruitful directions for research on inequality, their potential solutions, and the role and responsibilities of organization and management scholars.

Conspiracy theories arise during important societal and political events, with negative consequences. Yet, conspiracy theories remain to be investigated in the context of sporting tournaments, in spite of the importance of such events in contemporary societies. During the 2018 FIFA World Cup, conspiracy theories alleging that the newly introduced video Assistant Referee (VAR) was used with malevolent motives gained popularity online. In this paper, we used a Twitter content analysis to explore VAR conspiracy theories during the World Cup (N = 2,768 tweets). Conspiracy tweets peaked after eliminations of some teams and were strongly associated with labels referring to self-categorization at the group-level, supporting the notion that conspiracy beliefs are triggered by contexts threatening one's social identity. Conspiracy tweets were also correlated with tweets expressing skepticism or defiance against the VAR, suggesting that conspiracy beliefs might be related to sport fans' other identity management strategies. Finally, we drew an intergroup typology of VAR conspiracy beliefs' recurrent figures, highlighting that higher ordered categorization helped conspiracy narratives and content to adapt throughout the tournament. We discuss the identity management strategy status of sport fans' conspiracy beliefs.

Research SummaryThis paper investigates how firms select reference organizations, that is, other firms to which they compare themselves. We question the exogenous nature of references (i.e., them being defined via industry-categorizations) but suggest that, via motivations or purposes, firms endogenously select them. We evaluate our findings when analyzing proprietary data on hotels' self-selection of comparison-hotels. In support of our arguments, we find that in situations of increased uncertainty regarding firms' own relative abilities and standing, firms make adjustments to their selected references toward more similar ones. This enables them to obtain more diagnostic information about their relative abilities and this effect holds constant of (exogenous) industry-entry or exit events. Our findings contribute to an updated understanding about the role of comparison organizations in firms' decision-making.Managerial SummaryPrior work shows that comparisons with other firms (i.e., references) play an important role for our understanding of firms' decision-making. For example, performance comparisons with references can trigger search or a decision-need, ultimately, leading to acquisition-decisions, new-product-introductions, and the like. When questioning the selection of such references, prior work has typically derived them from (exogenous) industry-categorizations. We review this practice by relying on rare, longitudinal data on firms' reference self-selection. When controlling for industry level effects, we find that firms adapt references as a function of changes in their comparison needs (e.g., self-assessment). This is important because it implies an endogenous reference selection mechanism and shifts the attention from industry-categorizations toward an understanding of comparison needs and their emergence when attempting to understand firms' decision-making.

Using a continuous-time model of litigation, we show that the increasingly popular practice of third-party litigation financing has ambiguous welfare implications. A defendant and a plaintiff bargain over a settlement payment. The defendant takes costly actions to avoid deadweight losses associated with large transfers to the plaintiff. Litigation financing bolsters the plaintiff, leading to larger deadweight losses. However, by endogenously deterring the defendant from taking costly actions, litigation financing can nonetheless improve the joint surplus of the plaintiff and the defendant. In contrast to popular opinion, litigation financing does not necessarily encourage high-risk frivolous lawsuits.

Implicit guarantees provided by financial intermediaries are a key component of China's shadow banking sector. We show theoretically that project screening by intermediaries, accompanied by their implicit guarantees to investors, can be the second-best arrangement and mitigate capital misallocation that favors state-owned enterprises (SOEs). Using a dataset of trusts’ investment products, we find, consistent with our model, that ex ante expected yields reflect borrower risks and implicit guarantee strength, and risk sensitivity is reduced by strong guarantees. Regulations in 2018 restricting implicit guarantees lead to a weaker relationship between yield spread and guarantee strength, and more credit rationing of non-SOEs.