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Recent Journal Publications by COB Faculty

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Academic Journal
Strategy & Entrepreneurship

“When do organizations learn from successful experience? The Case of Venture Capital Firms”

Ability to accurately predict the outcomes of investments in new projects is recognized as an important antecedent of organizational success. Yet, despite the extensive research on resource-allocation decisions and forecasting, we know little about how accumulated experience shapes the accuracy of forecasts. In this study, we investigate the influence of success and failure experiences on the accuracy of venture capital predictions of the outcomes of their portfolio companies. We also explore the moderating influence of an important organizational factor, the size of a decision-making team. Our theory and findings highlight that success and failure experiences have significant and varying impact on the accuracy of organizational predictions. By examining these novel relationships, we extend theorizing about forecasting and learning, and bring novel insights to the field of entrepreneurship and venture capital.
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Academic Journal
Finance

“When-Issued Shares, Small Trades and the Variance of Returns around Stock Splits”

The increases in volatility after stock splits have long puzzled researchers. The usual suspects of discreteness and bid-ask spread do not provide a complete explanation. We provide new clues to solve this mystery by examining the trading of when-issued shares that are available before the split. When-issued trading permits noise traders to compete with a more homogenous set of traders, decreasing the volatility of the stock before the split. Following the split, these noise traders reunite in one market and volatility increases. Thus, the higher volatility after the ex date of a stock split is a function of the introduction of when-issued trading, the new lower price level after the split date, and the increased activity of small-volume traders around a stock split.
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Academic Journal
Management

“Who's behind the red suit? Exploring role prototypicality within calling enactment among professional Santas”

This study provides insight into how role prototypicality shapes calling enactment. Taking an interpretivist grounded theory approach, we harness the professional Santa Claus context to investigate our research question. Drawing upon interviews, observation, archival documents, and survey data, we find that a called role prototype distills role expectations shared by called workers and valued others relevant to the work context (member community, beneficiaries). Preceding the peak work season, a claiming and granting process among prospective role occupants and the member community sorts called workers into three categories of role prototypicality (prototypical, semi-prototypical, non-prototypical). Upon formal role entrance during the peak work season, called workers engage in intrapersonal and interpersonal sensemaking to facilitate claiming of the called role identity and granting of it from beneficiaries, enabling calling enactment. Qualitatively different cognitive and embodied sensemaking approaches by role prototypicality category indicate paths for called workers to enact their calling. Outside of the peak work season, called workers express further variation in how they identify with their called role and enact their calling according to their role prototypicality. These findings contribute to literature on callings and embodied experiences of work.
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Academic Journal
Marketing

“Why All Attention is Good Attention: Social Media Views and Retrospective Experiential Satisfaction”

When consumers share about their consumption experiences, they often receive feedback or attention from others. While prior research has considered consumer responses to positive (i.e., affirming) feedback, the present research considers how consumers respond to feedback that is nondiagnostic of the viewers’ attitudes (i.e., unvalenced attention). Specifically, we demonstrate that consumers derive value from receiving unvalenced attention because this attention is interpreted by sharers as a positive signal regarding their status, boosting their social self-esteem. This enhanced social self-esteem in turn leads sharers to recall their shared experiences more positively and increases retrospective satisfaction. By demonstrating the value that consumers derive from mere, unvalenced attention, we reveal a novel means of increasing satisfaction with experiences after they are consumed and highlight the importance of consumer-to-consumer attention exchange for marketers.
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Academic Journal
Supply Chain

“Why have Voluntary Time-of-Use Tariffs Fallen Short in the Residential Sector?”

We investigate the causes behind the underwhelming adoption of voluntary Time-of-Use (TOU) tariffs in the residential electricity market. TOU tariffs are deployed by utilities to better match electricity generation capacity with market demand by giving consumers price incentives to reduce their consumption when electricity demand is at its peak. However, consumers in residential electricity markets are heterogeneous in their consumption preferences. Hence, utilities face a trade-off when deploying voluntary TOU tariffs---to provide aggressive price incentives that will only appeal to consumers with flatter profiles or milder incentives to appeal to a larger proportion of the market. Using a game-theoretic model, we identify the key factors that determine the viability of voluntary TOU tariff deployment. On the supply side, the gap between wholesale prices in the peak and off-peak periods determines how much the utility stands to benefit by inducing demand response. On the demand side, heterogeneity within target consumer sets determines how much demand response the utility can induce with a certain price incentive. We show that misaligned incentives between utilities and regulators lead to underwhelming TOU tariff adoption compared to the socially desirable level, and that this under-adoption is worse when consumption preferences are uniformly distributed. We also evaluate the degree of cross-subsidization across tariff structures to identify their implications for equity among the different consumer types, and find that low levels of voluntary TOU adoption are less equitable than the default tariffs.
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