Welcome to the faculty research and publications collection from the University of Louisville College of Business.  Our faculty are impassioned by their research.  We proudly recognize our faculty for their outstanding achievements in research and publications.

Research Roundup 2018

Research Roundup

August 2018

Johnson, Z. D., Zachary W. Goldman, & Claus, C. J. (2018). Why do students misbehave? An initial examination of antecedents to student misbehavior. Communication Quarterly. Advance online publication. doi:10.1080/01463373.2018.1483958


The current study utilized constant comparative thematic analysis to uncover antecedents of student misbehavior from the perspective of collegiate instructors. Results indicated nine distinct antecedents of student misbehavior that were classified into three distinct categories: deficiency antecedents, belief antecedents, and external antecedents. These findings extend previous research on antecedents of student misbehavior by forwarding a more nuanced classification structure that centers on attribution theory as an explanatory mechanism. Overall, by understanding the potential reasons that underlie student misbehavior, educators can create more meaningful and enriching experiences for students by thoughtfully addressing these problematic behaviors and the underlying conditions that promote them.

Jenna Haugen & Kristen Lucas. (2018). Unify and present: Using Monroe’s Motivated Sequence to teach team presentation skills. Communication Teacher. Advance online publication. doi:10.1080/17404622.2018.1502886

This teaching activity introduces Monroe’s Motivated Sequence as a way to organize persuasive arguments; improve students’ ability to deliver presentations with consistent content, voice, and style; and improve team-based delivery skills.


Conor Lennon. (2018). Who pays for the medical costs of obesity? New evidence from the employer mandate. Health Economics. Advance online publication. doi:10.1002/hec.3818


Theory suggests that the medical costs of obesity should be passed on to obese workers, in the form of lower wages, whenever health coverage is a part of employee compensation. In contrast to existing work on this topic, this paper illustrates that the medical expenditures caused by obesity among working adults are relatively small and that wage offsets should therefore be difficult to detect. The paper supports this claim by exploiting the variation provided by the Affordable Care Act’s employer mandate. Findings suggest that obese workers tend to bear the approximate cost of their medical expenditures via lower wages. However, the observed effects are often insignificantly different from zero.

Andrew S. Manikas, Kroes, J. R., & Gattiker, T. F. (2018). Misalignment between societal well-being and business profit maximization: The case of New York taxis drivers’ incentive system. Socio-Economic Planning Sciences.Advance online publication. doi:10.1016/j.seps.2018.08.001


Objectives of business sustainability efforts commonly include increasing consumer safety, decreasing resource consumption, and decreasing pollution. Even though there is a societal interest in attaining these goals, business and other economic agents often operate under incentive structures that run counter to these objectives. Taxi drivers operate as economic independents. Their revenue depends on their fares and tips. Moreover they choose how many hours to work, how fast to drive, and which route to take. Using New York City taxi data from 2013, we test the level of alignment between the revenue maximizing behavior of drivers versus safety, conservation and pollution-related outcomes that are valued by stakeholders. We find substantial misalignment—i.e., in order to maximize revenue, drivers take inefficient routes and they exceed the speed limit thus decreasing safety, increasing fuel consumption and increasing air pollution. Based on these empirical results, we suggest methods of aligning societal goals with those of revenue maximizing taxi drivers.

Andrew S. Manikas & Patel, P. C. (2018). The value of operational response in varied industries during the Great Recession. IEEE Transactions on Engineering Management. Advance online publication. doi:10.1109/TEM.2018.2862156


What type of operational response did the U.S. stock market value during the 2008 Great Recession? Based on the contingency theory as an overarching framework, contingent on high-tech or low–medium technology (LMT) industry, we propose the role of survival (improving production efficiency or operational hedging) and adaptation (investing in new operational assets) related operational responses in firm performance. In a sample of 749 publicly traded U.S. manufacturing firms from 2003 to 2012 and using 2008 as the recession year, we find that for LMT firms, while the newness of operational assets or operational hedging has no effect on the market value (Tobin’s Q), increasing the production efficiency limits the decline in the market value. Conversely, for high-tech firms, the newness of operational assets has a negative influence, increasing the production efficiency has a positive influence, and operational hedging has no influence on the market value. The findings provide a much-needed understanding of the value of operational response during the 2008 recession.

Steven S. Vickner. On estimating the determinants of yearling thoroughbred prices. International Journal of Sport Management and Marketing, 18(1/2),24-41. doi:10.1504/IJSMM.2017.10012381


Using information for 3,562 thoroughbreds listed in Keeneland’s 2011 September yearling sale, hedonic pricing models were estimated using both ordinary least squares regression and a Heckman selection model to test the adverse selection hypothesis that vertically integrated sellers whom breed and race are penalised with bid shading relative to sellers whom only breed, ceteris paribus. Though the null hypothesis of no adverse selection was not rejected in the standard regression model, when taking into account censoring due to sellers withdrawing listed yearlings prior to the auction the null hypothesis was rejected. However, the impact of adverse selection was greatly attenuated by bid shading associated with the reputation effect of sellers, both those whom are vertically integrated and those whom just breed horses, willing to accept final bids less than the stud fee further lessening the winner’s curse in the auction. This seller type is new to the literature and as such is a key innovation of this research. The models controlled for other observable characteristics of the yearlings as well as those of the seller and the design of the auction.

July 2018

Robert, L P., Jr., Dennis, A. R., & Manju Ahuja. (in press). Differences are different: Examining the effects of communication media on the impacts of racial and gender diversity in decision-making teams. Information Systems Research. Advance online publication. doi:10.1287/isre.2018.0773


Diversity can have positive and negative effects on team decision making. Text communication has been put forth as one solution to addressing this duality of team diversity. Unfortunately, the empirical results have been far from conclusive. We believe that resolving such inconsistencies is crucial to developing a more complete understanding of the use of communication technologies. To accomplish this, we developed a research model based on media synchronicity theory. We empirically tested this model by conducting a laboratory experiment with 46 teams, consisting primarily of men and women self-identified as Caucasians and Asians, performing a decision-making task. The results show that the type of diversity matters. Text communication improved knowledge sharing (i.e., conveyance) and knowledge integration (i.e., convergence) in racially diverse teams but impaired both in gender diverse teams. Knowledge integration was more important to decision quality when racial and gender diverse teams used text communication (but the importance of knowledge sharing was not affected by the communication medium).

Yong Chao, Yao, C., & Ye, M. (in press). Why discrete price fragments U.S. stock exchanges and disperses their fee structures. The Review of Financial Studies. Advance online publication. doi:10.1093/rfs/hhy073


Stock exchange operators compete for order flow by setting “make” fees for limit orders and “take” fees for market orders. When traders can quote continuous prices, exchange operators compete on total fee, because traders can choose prices that perfectly neutralize any fee division. The 1-cent minimum tick size, however, prevents traders from neutralizing fee division. The non-neutrality of division between make and take fees (1) allows an exchange operator to establish exchanges that differ in fee structure to engage in second-degree price discrimination and (2) destroys the Bertrand equilibrium, leads to frequent fee changes, and encourages entries of new exchanges.

David J. Faulds & P.S. Raju (in press). The mobile shopping revolution: An interview with Chuck Martin. Business Horizons. Advance online publication. doi: 10.1016/j.bushor.2018.05.008


Chuck Martin is a New York Times business bestselling author and an internationally recognized expert in mobile and digital technologies. He is one of the foremost writers and thinkers on the Internet of Things (IoT) and his recent book, Digital Transformation 3.0 (2018), focuses on the digital disruption that results from IoT. Mr. Martin is the author of several books, including Net Future, Mobile Influence: The New Power of the Consumer, and The Third Screen. He edits MediaPost AI & IoT Daily, which is the largest AI and IoT daily publication in the world and writes the column Connected Thinking, which is read by more than 100,000 subscribers daily.

Ben Foster. (2018). Disconnect: Kentucky and the political ideology of its public universities. Academic Questions. Advance online publication. doi:10.1007/s12129-018-9717-1


University campuses are often highly unrepresentative of the political jurisdictions in which they are located, a testament perhaps to higher education’s unwavering commitment to independent thought in a politically polarized country. This circumstance becomes less admirable, however, when colleges are publicly funded—ostensibly, a reflection of the public will—and are themselves deeply involved in partisan politics. Ben Foster’s analysis of political contributions shows not only that public university and college affiliated donors in Kentucky lean heavily to the left, but that academic programs and policies of dubious educational value appear to flout the public will.

Ang, J. B., Per G. Fredriksson, Nurhakim, A. L., & Tay, E. H. (2018).Sunlight, disease, and institutions. Kyklos, 71, 374-401. doi:10.1111/kykl.12174


Higher exposure to ultraviolet radiation (UV‐R) is associated with greater prevalence of eye disease such as cataracts. We hypothesize that the variation in the intensity of UV‐R can help explain the differences in institutional quality observed across countries. The long‐term incentive and ability to improve the quality of institutions decline when the probability of blindness increases. Our reduced‐form cross‐country results support this hypothesis. We then propose that the mechanism works from the impact of UV‐R on the prevalence of eye disease, which in turn shapes institutions. Our empirical evidence lends considerable support to this hypothesis.

Special Recognition…

Groop, J., Ketokivi, M., Mahesh Gupta, & Holmstrom, J. (2017). Improving home care: Knowledge creation through engagement and design. Journal of Operations Management, 53-56, 9-22. doi:10.1016/j.jom.2017.11.001

…is being awarded an Honorable Mention for Article of the Year by the Journal of Operations Management at the upcoming Academy of Management meeting.


June 2018

Connolly, R., David Dubofsky, & Chris Stivers. (in press). Macroeconomic uncertainty and the distant forward-rate slope. Journal of Empirical Finance.doi:10.1016/j.jempfin.2018.06.008


Over the 1990 to 2014 period, we show that the macroeconomic-uncertainty index of Jurado et al. (2015) is a powerful empirical determinant of the slope in Treasury forward interest rates over the 10- to 30-year term-structure segment. The strong negative partial relation between macroeconomic uncertainty and the distant forward-rate slope remains reliably evident in a multivariate setting that includes expected bond yield volatility (as a control for convexity’s influence), economic growth, expected inflation, and five other well-known uncertainty and risk measures. Beyond the well-known bond convexity channel for promoting a downward sloping distant forward-rate slope, our findings suggest that higher macroeconomic uncertainty can promote a more downward slope in distant forward rates through a hedge channel in the sense of Campbell et al. (2017). Consistent with the hypothesized hedge channel, we also document striking cross-sectional variation in how bond returns are related to macroeconomic uncertainty, both across mid- and long-horizon T-bonds and across high and low credit-risk corporate bonds.

May 2018

Nichols, K. M., Caperell, K., Cross, K., Duncan, S., Benjamin Foster, Pritchard, H., Southard, G., Shinabery, B., Sutton, B., & Kim, I. K. (2018). Analysis of patient visits and collections after opening a satellite pediatric emergency department. Pediatric Emergency Care, 34, 243-249.  doi:10.1097/PEC.0000000000001044


Satellite pediatric emergency departments (PEDs) have emerged as a strategy to increase patient capacity. We sought to determine the impact on patient visits, physician fee collections, and value of emergency department (ED) time at the primary PED after opening a nearby satellite PED. We also illustrate the spatial distribution of patient demographics and overlapping catchment areas for the primary and satellite PEDs using geographical information system. A structured, financial retrospective review was conducted. Aggregate patient demographic data and billing data were collected regarding physician fee charges, collections, and patient visits for both PEDs. All ED visits from January 2009 to December 2013 were analyzed. Geographical information system mapping using ArcGIS mapped ED patient visits. Patient visits at the primary PED were 53,050 in 2009 before the satellite PED opened. The primary PED visits increased after opening the satellite PED to 55,932 in 2013. The satellite PED visits increased to 21,590 in 2013. Collections per visit at the primary PED decreased from $105.13 per visit in 2011 to $86.91 per visit in 2013. Total collections at the satellite PED decreased per visit from $155.41 per visit in 2011 to $128.53 per visit in 2013. After opening a nearby satellite PED, patient visits at the primary PED did not substantially decrease, suggesting that there was a previously unrecognized demand for PED services. The collections per ED visit were greater at the satellite ED, likely due to a higher collection rate.

Jeff Guan, Alan S. Levitan, and Sandeep Goyal (2018). Text mining using latent semantic analysis: An illustration through examination of 30 years of research at JIS. Journal of Information Systems, 32, 67-86. doi:10.2308/isys-51625


Big Data presents a tremendous challenge for the accounting profession today. This challenge is characterized by, among other things, the explosive growth of unstructured data, such as text. In recent years, new text-mining methods have emerged to turn unstructured textual data into actionable information. A critical role of accounting information systems (AIS) research is to help the accounting profession assess and utilize these methodologies in an accounting context. This paper introduces the latent semantic analysis (LSA), a text-mining approach that discovers latent structures in unstructured textual data, to the AIS research community. An LSA-based approach is used to analyze AIS research as published in the Journal of Information Systems (JIS) over the last 30 years. JIS research serves as an appropriate domain of analysis because of a perceived need to contextualize the scope of AIS research. The research themes and trends resulting from this analysis contribute to a better understanding of this identity.

April 2018

Manikas, Andrew S., & Kroes, J. R. (in press). The relationship between lean manufacturing, environmental damage, and firm performance. Letters in Spatial and Resource Sciences. doi:10.1007/s12076-018-0206-5


Prior research has found mixed results of leanness, with a counter idea being that slack allows flexibility to improve firm financial performance. We first seek to confirm empirically that leanness in manufacturing does in fact contribute to both lower environmental damage and to improve firm financial performance. With increased awareness of global environmental issues, we incorporate environmental damage measures from Trucost to assess how they may affect firm performance and are affected by leanness. The measures of leanness are calculated based on publically available financial data from Compustat. Based on a final sample of 406 manufacturing firms representing 3594 firm-year observations from 2002 to 2013, the proposed relationships of leanness to firm outcomes and environmental damaged are investigated. A key finding of this study is that a firm should aim its lean efforts to reducing environmental damage, which in turn has more of an effect on improving financial performance than other lean initiatives.

Sarker, S., Ahuja, Manju, & Sarker S. (2018). The work–life conflicts of globally distributed software developers. LSE Business Review. London School of Economics and Political Science. http://blogs.lse.ac.uk/businessreview/2018/04/17/the-work-life-conflicts-of-globally-distributed-software-developers/

March 2018

Fernandez, José, Gohmann, Stephan, & Pinkston, Joshua C. (in press). Breaking bad in bourbon country: Does alcohol prohibition encourage methamphetamine production? Southern Economic Journal. doi:10.1002/soej.12262


This article examines the influence of local alcohol prohibition on the prevalence of methamphetamine labs. Using multiple sources of data for counties in Kentucky, we compare various measures of meth manufacturing in wet, moist, and dry counties. Our preferred estimates address the endogeneity of local alcohol policies by exploiting differences in counties’ religious compositions between the 1930s, when most local‐option votes took place, and recent years. Even controlling for current religious affiliations, religious composition following the end of national Prohibition strongly predicts current alcohol restrictions. We carefully examine the validity of our identifying assumptions, and consider identification under alternative assumptions. Our results suggest that the number of meth lab seizures in Kentucky would decrease by 35% if all counties became wet.

Beeks, J. C., & Lambert, Thomas. (2018). Addressing externalities: An externality factor tax-subsidy proposal. European Journal of Sustainable Development Research, 2(2), online. doi:10.20897/ejosdr/81573


Nature is losing the war against capitalism and needs us to come to her defense in a way that may seem counter-intuitive. We, humans, have our ways of doing things and natural processes follow their own courses, often distinctly foreign to our inclinations. Our modern-day business practices are designed for the short term, are self-centered, tending toward precision and inevitably leading to environmental destruction. Natural processes, on the other hand, are intended for the long term, are generous, are highly imprecise and almost always lead to flourishing ecological systems. While humankind produces primarily negative externalities, nature produces almost exclusively positive externalities or no externalities at all. This paper discusses a way that both negative and positive anthropogenic externalities can be used to encourage ‘good consumption’ and to discourage ‘bad consumption’ for the benefit of natural ecological systems, human societies, family units, and our future generations.

February 2018

Sarker, S., Ahuja, Manju, & Sarker, S. (in press). Work–life conflict of globally distributed software development personnel: An empirical investigation using border theory. Information Systems Research. doi:10.1287/isre.2017.0734


While a key motivation for globally distributed software development (GDSD) is to harness appropriate human capital, ironically, scant attention has been paid to addressing the human resource management issues faced by information technology (IT) professionals involved in this context. One particularly challenging human resource issue is that of work-life conflict (WLC) of the IT professionals involved in GDSD, who routinely experience overlaps and conflicts between their work and personal life domains. While WLC concerns are relevant in almost any contemporary environment, the GDSD context adds several layers of challenges arising from issues such as time differences, requirements instability, and the use of certain systems development methodologies. Recent research indicates that WLC issues go beyond individual concerns and are of strategic importance for talent retention. To develop a deeper understanding of these recognized challenges, we utilize Border Theory as a metatheoretical framework to develop and empirically test a model of organization-related and GDSD-related antecedents of WLC. In addition, we examine the impacts of WLC on job-related outcomes. Our study adopts a mixed-methods design, where an exploratory case along with a review of the literature is used to develop the research model. The model is then tested using a survey of 1,000 GDSD workers in three countries. We believe that our findings are not only of theoretical interest for the information systems discipline but also potentially helpful in improving the working conditions of the GDSD workforce.

Chao, Yong, Tan, G., Wong, A. C. L. (2018). All-units discounts as a partial foreclosure device. RAND Journal of Economics, 49(1), 155-180. doi:10.1111/1756-2171.12220


We investigate the strategic effects of all-units discounts (AUDs) used by a dominant firm in the presence of a capacity-constrained rival. Due to the limited capacity of the rival, the dominant firm has a captive portion of the buyer’s demand for the single product. As compared to linear pricing, the dominant firm can use AUDs to go beyond its captive portion by tying its captive demand with part of the competitive demand and partially foreclose its small rival. When the rival’s capacity level is well below relevant demand, AUDs reduce the buyer’s surplus.

Digan, Shaun Paul, Sahi, G. K., & Mantok, S., & Patel, P. C. (in press). Women’s perceived empowerment in entrepreneurial efforts: The role of bricolage and psychological capital. Journal of Small Business Management. doi:10.1111/jsbm.12402


Women’s entrepreneurial empowerment—perceived competence, self-determination, and ability in managing a firm as an entrepreneur—is important to women’s entrepreneurship in developing countries. Drawing on a sample of 369 women entrepreneurs from small and medium enterprises (SMEs) located in Gujarat, a western state in India, we find that women’s entrepreneurial empowerment is positively associated with firm revenues. Gains from empowerment could be further enhanced for women entrepreneurs managing resource constraints—through bricolage—and meeting the challenges of self-employment—through psychological capital. The present study contributes to the literature on women’s entrepreneurial empowerment and SME performance. Women’s empowerment and the bolstering effects of bricolage and psychological capital could help government agencies and non-government organizations devise programs and policies to improve the performance of women-owned SMEs in developing countries.

Ang, J. B., Fredriksson, Per G. (in press). State history, legal adaptability, and financial development. Journal of Banking & Finance. doi:10.1016/j.jbankfin.2018.02.009


A country’s cumulative experience with statehood influences its ability to consolidate power and create a capable bureaucracy. Longer statehood experience gives countries more time to adapt their laws to local needs, provided the legal system is adaptable. We find that, relative to British common law countries with the most flexible laws, German and Scandinavian civil law countries initially exhibit lower financial development. However, as their history of statehood grows longer, financial development improves in countries with adaptable laws such as the German and Scandinavian civil law countries. This is not the case in French civil law countries with more rigid legal systems. Our results mainly show no or at most a weakly negative effect of French civil law legal origin on financial development. We also explore how changes in stock market development over time, financial integration, and financial crisis are impacted by statehood experience, legal origins, and their interaction.

Chahal, H., Gupta, Mahesh, & Lonial, Subhash. (in press). Operational flexibility in hospitals: Scale development and validation. International Journal of Production Research. doi:10.1080/00207543.2018.1442941


The purpose of this paper is to develop and validate an operational flexibility construct that can serve as a general theory in operations management in the context of the hospital industry. The effects of management capability and competitive intensity on operational flexibility and performance relationships are also explored. We used data collected from a sample of 152 administrators of hospitals in the mid-west region of the USA and performed a systematic series of analyses. Following the transformation model, grounded in the fundamental and powerful concept of operations management, we develop a psychometrically validated, 11-item, three-dimensional (input, process, output) scale of operational flexibility (OF) construct for the hospital industry. As the degree of operational flexibility allowed in any transformation system is influenced by management capability, it is established as a complementary mediator in strengthening the OF-performance relationship in the presence of competitive intensity (i.e. moderator). The paper concludes with limitations and directions for future research.

Gupta, Mahesh, & Anderson, S. (in press). Throughput/inventory dollar-days: TOC-based measures for supply chain collaboration. International Journal of Production Research. doi:10.1080/00207543.2018.1444805 


As the semiconductor industry moves away from vertical integration, performance measures play an increasingly important role to ensure effective collaboration. This paper demonstrates that the theory of constraints (TOC)-based measures, Throughput and Inventory Dollar-Days (T/IDD), induce autonomous supply chain (SC) links to function as a synergistic whole and thereby, improve the performance of the whole SC network significantly. We model an SC network of a well-known TOC case study using discrete event simulation and discuss managerial implications of these measures via a set of scenarios. The scenarios explain how these measures – without sharing sensitive financial data – allow members of an SC network to monitor both the effectiveness (TDD) and efficiency (IDD) of SC members and lead them to create win-win solutions following well-known TOC-based planning and control concepts. We conclude this paper by discussing some limitations of the proposed research and provide directions for future theoretical research.

Fyke, J., Trisler, B., & Lucas, Kristen (2018). A failure of courageous leadership: Sex, embarrassment, and (not) speaking up in the Penn State sexual abuse scandal. In J. Beggan & S. T. Allison (Eds.), Leadership and sexuality: Power, principles and processes (pp. 73-90). Northampton, MA: Edward Elgar. 


On November 4, 2011, news of what would become known as the “Penn State scandal” broke after a grand jury report was released that documented former Penn State football coach Jerry Sandusky’s sexual assault of at least eight young boys. The investigation into these horrific crimes led to the revelation that leaders of Penn State actively chose to conceal the abuse for fear of bad publicity. In this chapter, we foreground the intersection of sexuality and leadership in this case. To analyze the failed communication within this case, we provide a focal narrative reconstructed from grand jury testimony and the Freeh Report. We demonstrate how the topic of sexuality—along with its taboos in workplaces generally, but especially within locker rooms, athletics, and among authority figures—led to watered-down and vague conversations, thereby exposing a lack of courage.


January 2018

Faulds, David J., Mangold, W. G., Raju, P. S., & Valsalan S. (in press). The mobile shopping revolution: Redefining the consumer decision process.Business Horizons.


The use of mobile devices by consumers and the accompanying response by retailers is rapidly revolutionizing the retail environment. In the past, retailers have focused primarily on the outcome (to purchase or not to purchase) of the consumer decision process, but now mobile technologies give retailers the opportunity to more actively influence the entire consumer decision-making processes. The increasing use of mobile devices by consumers makes shopping a continuous rather than discrete activity that requires retailers to engage with their customers at critical touch points of the decision process in order to provide a more customer-centric experience. This change in focus from the decision outcome to the decision process signifies an important paradigm shift for the retailing industry. After an extensive review of the literature, we identify four pillars that form the foundation for the mobile shopping revolution and represent the essential ways and means through which retailers can engage with consumers during the decision process. We also discuss the different areas in which the pillars can enable retailers to achieve a sustainable competitive advantage in the mobile shopping era.


Ang, J. B., & Fredriksson, Per G. (in press). Culture, legal heritage and the regulation of labor. Journal of Comparative Economics.


According to cross-cultural psychologists, cross-country differences in individualism vs. collectivism constitute an important dimension of cultural variation. Legal-economic theorists argue that legal philosophies such as common law and civil law have developed differently over centuries and have persistent effects. In this paper, we argue that the effects of culture and institutions should not be analyzed in isolation from each other, as this disregards their interactions. We merge the two separate literatures on cultural attributes and legal origin theories, and derive a hypothesis regarding their joint effects on labor market regulations. We hypothesize that the effect of individualism on the political determination of labor regulations should be particularly pronounced in more market-oriented economic systems (as in British common law countries) compared to more rigid and bureaucratic state-centered systems (as in French civil law countries). Market oriented economies give individual effort and ability greater room to flourish, which in individualistic cultures yields weaker labor regulations. The effect of individualism should be smaller in state centered systems. Using data on the average rigidity of labor regulations during the years 1950–2004 in 86 countries, we find that the negative effect of individualism on the rigidity of labor regulations is enhanced by the presence of a common law legal system. In fact, individualism has no effect on the rigidity of labor market regulations in civil law countries. Analogously, the negative effect of common law legal origin on labor market regulations is found to be conditional on the level of individualism. Individualism and common law legal systems are complements in the determination of labor regulations.

Kwon, Mina, & Adaval, R. (in press). Going against the flow: The effects of dynamic sensorimotor experiences on consumer choice. Journal of Consumer Research.


Sensorimotor experiences of going against the flow can affect the choices consumers make. Eight experiments show that consumers who experience the sensation of going against the flow pick alternatives that are normatively not preferred (experiments 1a and 1b). These effects are evident only when the sensations are dynamic and self-experienced (experiments 2a and 2b), subjective feelings are elicited (experiments 4a and 4b), and no other objective, external norm information is supplied (experiment 5). Experiences of going against the flow typically involve both movement and direction and are represented in memory schematically. Re-experiencing these sensations leads to the activation of this schematic representation and elicits a feeling-based behavioral disposition to do something different, or to go against one’s initial inclination (experiment 3), leading participants to pick an option that is normatively not preferred.

Kroes, J. R., & Manikas, Andrew S. (2018). An exploration of ‘sticky’ inventory management in the manufacturing industry. Production Planning & Control, 2, 131-142.


Traditional models examining relationships between firm resources and revenues assume that the many expenses and asset holdings change in proportion to changes in demand. However, research has found that for many costs and assets assumed to be variable, the magnitude of a change in a cost or asset in proportion to a change in revenue is smaller during periods when revenue decreases compared to the change in the cost or asset when revenue increases. Costs and assets which behave in this manner have been denoted as ‘sticky’ costs or assets. This study examines if inventory in the manufacturing industry is managed in a ‘sticky’ manner and what implications inventory stickiness has on firm performance. Utilising firm panel data over a 25-year time window we find that inventory stickiness does exist amongst manufacturers and that it has negative implications for firm performance.

Manikas, Andrew S., Kroes, J. R., & Gattiker. T. F. (in press). Operational leanness and retail firm performance since 1980. International Journal of Production Economics.


Lean is one of the most pervasive and powerful paradigms in Operations and Supply Chain Management. As a theory, lean has been well tested in manufacturing. Lean in retail has received less attention. There is good reason to think that seminal constructs from lean, such as inventory slack reduction and capacity slack reduction, may explain a great deal of the variance in retail firm performance. Therefore this paper tests lean-based propositions pertaining to the relationships between inventory slack, capacity slack, market instability and firm market performance. Using retail firm data from a 35 year period, we find that lean thinking in its basic unadorned form helps explain retail performance remarkably well. From both a snapshot and quarterly difference perspective and regardless of whether we look at capacity slack or inventory slack, lean produces superior, lasting returns for retailers.


Munnich, Elizabeth L., & Parente, S. T. (2018). Returns to specialization: Evidence from the outpatient surgery market. Journal of Health Economics, 57, 147-167.


Technological changes in medicine have created new opportunities to provide surgical care in lower cost, specialized facilities. This paper examines patient outcomes in ambulatory surgery centers (ASCs), which were developed as a low-cost alternative to outpatient surgery in hospitals. Because we are concerned that selection into ASCs may bias estimates of facility quality, we use predicted changes in federally set Medicare facility payment rates as an instrument for ASC utilization to estimate the effect of location of treatment on patient outcomes. We find that patients treated in an ASC are less likely to be admitted to a hospital or visit an emergency room a short time after outpatient surgery. The findings in this paper indicate that factors other than patient and physician heterogeneity contribute to the observed returns to specialization in the ASC market.

In the News…

Elizabeth Munnich’s research was featured in a New York Times article on men entering the nursing profession: https://www.nytimes.com/interactive/2018/01/04/upshot/male-nurses.html



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