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

February 2019

Kosmidou, V., &Manju Ahuja. (2019). A configurational approach to family firm innovation.Family Business Review. Advance online publication. doi:10.1177/0894486519827738


This article develops an integrated framework for the examination of innovation drivers in small and privately owned family firms. Drawing from the family-driven innovation model, we study how factors at the family, the firm, and the environment level combine into distinct configurations that spur innovation. Analyzing 277 family firms using fuzzy-set qualitative comparative analysis, we find six configurations leading to high innovation and show that none of the antecedents is necessary for it. Building inductively on our configurations, we also derive propositions about the combinations of factors leading to high innovation. Implications for research and practice are discussed.

David J. Faulds &P.S. Raju (2019). The new information environment: An interview with Emanuel Rosen.Business Horizons. Advance online publication. doi:10.1016/j.bushor.2019.01.010


Emanuel Rosen is the author of national bestsellers The Anatomy of Buzz: How to Create Word-of-Mouth Marketing (2000) and The Anatomy of Buzz Revisited: Real-life Lessons in Word-of-Mouth Marketing (2015). His latest book, Absolute Value: What Really Influences Customers in the Age of (Nearly) Perfect Information—coauthored with Stanford professor Itamar Simonson—won the 2016 American Marketing Association Best Book Award. Emanuel previously served as vice president, marketing, at Niles Software, where he launched Endnote, the company’s flagship product. Rosen is a dynamic speaker who has engaged audiences in numerous forums around the world, including at companies such as Google, Intel, and Nike. He started his career in marketing as an award-winning copywriter and his books are available in 13 languages. Emanuel’s work has been featured in Harvard Business ReviewTime, and Advertising Age. In 2016, he was inducted into the Word-of-Mouth Marketing Association Hall of Fame.

Per G. Fredriksson & Wang, L. (2019).The politics of environmental enforcement: The case of the Resource and Conservation Recovery Act.Empirical Economics. Advance online publication. doi:10.1007/s00181-019-01654-z


Does environmental enforcement actions, including states’ strategic responses to neighbors’ policy choices, depend on governor party affiliation? Do governors of different parties use environmental policy instruments differently? Our paper addresses these questions. Accounting for endogeneity and omitted variable biases, we find that Democratic governors on average depress overall inspection rates versus their Republican counterparts, but not the frequency of punitive actions (except in the South). Strategic responses to neighbors do not depend on party affiliation. Finally, treating party affiliation as endogenous and allowing for strategic interaction effects both appear important for our estimations.

Xudong Fu,Tian (Lori) Tang, & Yan, X. (2019). Why do institutions like corporate social responsibility investments? Evidence from horizon heterogeneity.Journal of Empirical Finance, 51, 44-63. doi:10.1016/j.jempfin.2019.01.010


Why do institutional investors improve firms’ engagement in corporate social responsibility (CSR) investments? We show that CSR activities are driven by institutional investors with long investment horizons, and that this is due to the reputation insurance that CSR spending provides. Specifically, longer horizon investors benefit more from such insurance, and so do their agents, the investment managers that interact with portfolio firms. Additional tests show that this positive relationship between shareholder horizons and CSR is enhanced by market myopia, managerial agency risks, and motivated investors. We address the endogeneity concerns by employing Russell 1000/2000 index switches as sources of exogenous variation in shareholder investment horizons. The influence of shareholder horizons on CSR is also related to social norms. Our main results hold for all but one category of CSR and appear to be driven by CSR strengths.

Ryan W. Quinn, Cumberland, D. M., & Kerrick, S. A. (2019).Performance improvement: When do employees learn from others’ success stories?Journal of Organizational Effectiveness: People and Performance, 6, 56-76. doi:10.1108/JOEPP-07-2018-0043


Purpose. Employees often improve at work by learning from others who have been successful. They learn by hearing their stories. However, the number of stories, task type and context all affect learning. The purpose of this paper is to examine how the number of stories they hear, the type of task they are learning to perform and their performance in the task to date all affect performance improvement. Design/methodology/approach. The authors examine how task complexity and recent performance relative to others influence the relationship between the number of success stories a person reads and their subsequent performance. The authors used a sample of order processing employees from a label manufacturing company to test our hypotheses. Findings. The authors find that in complex tasks, subsequent performance is highest when people read a small number of stories, and lowest when people read no stories or too many stories. In simple tasks, the authors find that when people have average recent performance, more stories leads to lower performance, but when recent performance is high or low, more stories increases subsequent performance.

Kudos… Xudong Fuand Tian (Lori) Tangwere honored with the Best Paper Award in Corporate Finance at 2018 Southern Finance Association Annual Meeting for their paper “Insider Trading and Shareholder Investment Horizons” (with Lei Kong and Xinyan Yan).

January 2019

Nan-Ting Chou, Alexei Izyumov, & John Vahaly. (2018). Capital profitability and economic growth. Journal of Economics and Development Studies, 6(4), 12-18. doi:10.15640/jeds.v6n4a2


This paper analyzes the connection between the macroeconomic profitability of capital and potential GDP growth for 109 countries divided into highly developed (HDC), less developed (LDC), and transition economy (TEC) groups. We find that, contrary to some recent studies, the globalization of capital markets and more rapid capital accumulation in LDC and TEC have not led to the convergence of macroeconomic rates of return (ROR) across countries. The existing differences among national ROR imply underinvestment in the majority of developing and transition countries. The counterfactual estimation of potential changes in GDP assuming equalization of ROR reveals major gains that could accrue to developing countries.

Qian, S., David Dubofsky, & Kristen Lucas. (2018). How do situational factors influence ethical decision-making in entrepreneurship? The role of self-construal, temporal-construal, and moral identity. Journal of Ethics & Entrepreneurship, 8(2), 30-55.


Entrepreneurs typically face scarce resources, high uncertainty, and a competitive environment when their ventures are at an early stage. Given these demands, along with a strong desire to ensure their business’ success, entrepreneurs may be tempted to prioritize financial self-interests over ethical considerations. However, individual differences may influence these actions. In this paper, we examine how self-construal (the extent to which the self is defined independently or interdependently with others), temporal-construal (the extent to which individuals think in abstract or concrete terms), and moral identity (an actor’s self-conception with respect to moral values, virtues, and standards of behavior) influence entrepreneurs’ ethical decision-making. Results show that interdependent self-construal and distal temporal-construal interactively influence the likelihood that entrepreneurs will make ethical decisions regarding customers and entrepreneurial values—but not regarding employees or external accountability. We also find that moral identity moderates the interactive effect of self-construal and temporal-construal on ethical decision-making. We provide implications for entrepreneurs, educators, and policy makers regarding how to facilitate ethical decision making.

David J. Faulds & P.S. Raju. (2019). An interview with Chuck Martin on the Internet of Things. Business Horizons, 62(1), 27-33. doi:10.1016/j.bushor.2018.08.009


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.

Ghiyoung Im, Rai, A., & Schurer, L. (2019). Governance and resource sharing ambidexterity for generating relationship benefits in supply chain collaborations. Decision Sciences. Advance online publication. doi:10.1111/deci.12353


This study investigates how long‐term partners can establish a successful supply chain collaboration to accrue relationship benefits. Informed by the relational view, we identify governance and resource sharing as key mechanisms to create relationship benefits in supply chain relationships. We draw on the ambidexterity perspective to suggest that long‐term relationships require governance ambidexterity and resource‐sharing ambidexterity to handle new problems emerging in the future while successfully managing current problems, or to have a duality of short-and long‐term orientation. We also draw on the alignment perspective to suggest that governance ambidexterity mechanisms and resource‐sharing ambidexterity mechanisms need to be aligned. We develop a research model that explains the influence of (1) alignment/misalignment of two governance ambidexterity mechanisms (incentives and goals) on one resource‐sharing ambidexterity mechanism (knowledge sharing) and (2) alignment/misalignment of each of these governance ambidexterity mechanisms (incentives and goals) with resource sharing (knowledge sharing) ambidexterity on relationship benefits. The data for our empirical study were collected from 238 customers of a leading logistics vendor firm. A polynomial regression and response surface approach was employed to test our model. The results were supportive of our model and suggest that establishing and aligning governance ambidexterity mechanisms and resource‐sharing ambidexterity mechanisms enable firms to generate relationship benefits from supply chain relationships.

Park, E., Ghiyoung Im, Storey, V., & Baskerville, R. (2019). Never, never together again: How postpurchase affect drives consumer outcomes within the context of online consumer support communities. Journal of the Association for Information Systems, 20(1), 58-104. doi:10.17705/1jais.00529


Online support communities are popular for consumers of information technology products who might need help identifying or resolving a problem. Information technology products, in general, have their own needs and requirements. Prior research has focused on the intermediate benefits of online support communities to companies, such as knowledge contribution and community participation. This study, in contrast, investigates the less explored issue of value creation by online support communities with respect to consumer postpurchase outcomes. To do so, we develop an affect (emotional) process model to understand how customers’ postpurchase outcomes of information technology products are influenced through cognitive and affective processes after a product failure. Special attention is paid to the roles of affect during the recovery process. An empirical assessment of the model uses two online support communities, with a netnography methodology employed for data collection. The results suggest that consumers’ postpurchase outcomes are influenced by affect and regulation, not just cognition. Key influences emerge as the consumers’ own problem appraisals and affective experiences, the consumers’ social group, and regulation provided by company technicians and/or community experts.

Baker, H. K., Filbeck, G., Holzhauer, H. M., Dianna Preece, & Spieler, A. C. (2018). A panel discussion on hedge funds. Alternative Investment Analyst Review, 7(4), 58-66.


This panel discussion during the annual meeting of the 2017 Southern Finance Association provides a current look into the complex and rapidly changing world of hedge funds. It begins by providing background information about hedge funds, their advantages and disadvantages to investors, and the impact of the financial crisis of 2007-2008. Next, the discussion turns to hedge fund strategies followed by a look at the hedge fund industry including its current state, challenges, and the role of institutional investors. The next topics examined are fee structure, hedge fund activism, scandals and taxes, and the role of technology. The final topic deals with future trends in the hedge fund industry including regulatory changes, fee structure, and big data among others.

Dickert-Conlin, S., Elder, T., & Keith Teltser. (2019). Allocating scarce organs: How a change in supply affects transplant waiting lists and transplant recipients. American Economic Journal: Applied Economics.  Advance online publication.


Vast organ shortages motivated recent efforts to increase the supply of transplantable organs, but we know little about the demand side of the market. We test the implications of a model of organ demand using the universe of U.S. transplant data from 1987 to 2013. Exploiting variation in supply induced by state-level motorcycle helmet laws, we demonstrate that each organ that becomes available from a deceased donor in a particular region induces five transplant candidates to join that region’s transplant waitlist, while crowding out living-donor transplants. Even with the corresponding demand increase, positive supply shocks increase post-transplant survival rates.

Keith Teltser. (2019). Do kidney exchanges improve patient outcomes? American Economic Journal: Applied Economics.  Advance online publication.


In this paper, I estimate the number of additional transplants generated by kidney exchanges. To do this, I analyze substitution patterns between exchange transplants and other transplant outcomes. Exploiting variation in patients exposure to exchange activity across time and place, I find that 64 percent of exchange transplants represent new living donor transplants. Using the same approach, I find that an increase in the probability of receiving an exchange transplant reduces the probability of graft failure and reduces time spent waiting for a kidney. Back-of-the-envelope calculations suggest that each exchange transplant increases social welfare by $300,000 to $700,000

In Editorial News… Manju Ahuja is now Senior Editor at Information Systems Research.
Kudos… Manju Ahuja has been ranked by the Association of Information Systems as #21 worldwide for publishing in the top 3 journals (all FT50) over the last 3 years (2016-2018).





December 2018

Jay T. Brandi. (2018). Essential corporate finance (4th ed.). Dubuque, IA: Great River Technology.

Jay T. Brandi. (2018). Money management and personal finance (10thed.). Dubuque, IA: Great River Technology.

Jay T. Brandi. (2018). Corporate finance: Foundations of value optimization and survival. San Diego, CA: Cognella.

Jacob Burgdorf. (2018). Impact of mandated exclusive territories in the US brewing industry: Evidence from scanner level data. International Journal of Industrial Organization, 63, 376-416. doi:10.1016/j.ijindorg.2018.12.001


I examine the competitive effects of mandated exclusive territories in the US beer industry. Theory is ambiguous as to the competitive impacts of this vertical practice. Using scanner data from a large number of grocery stores, I empirically examine the impact on beer prices, quantities, and number of brands sold after Wisconsin mandated that brewers must assign exclusive wholesale territories in 2006. Reduced form results from a differences-in-differences model using several control groups and a synthetic control show that the mandates increased prices and reduced quantity of craft beer. Overall number of brands sold decreased as well and craft brewers were the most negatively impacted. Findings suggest that the mandate gave protection to wholesalers and caused an increase in the costs of distribution and reduced competition in the brewing industry.


Yong Chao & Babu Nahata. (2018). Market foreclosure, output and welfare under second-degree price discrimination. Economics Bulletin, 38,2116-2127.


We compare second-degree price discrimination with uniform pricing using two linear demands, with and without the Spence-Mirrlees condition. We find that second-degree price discrimination can result in a welfare-enhancing market foreclosure (one market is excluded under second-degree price discrimination when both markets would be served under uniform pricing) because the resulting foreclosure can increase both the total output and the total surplus. Moreover, the total surplus under second-degree price discrimination could also be lower without the foreclosure. Our results are in stark contrast with the well-known results related to output and welfare effects under third-degree price discrimination.

Davis-Sramek, B., Omar, A., & Richard Germain. (in press). Leveraging supply chain orientation for global supplier responsiveness: The impact of institutional distance. The International Journal of Logistics Management. Advance online publication. doi:10.1108/IJLM-09-2017-0225


Purpose. The purpose of this paper is to utilize middle-range theorizing to examine whether a US manufacturer can leverage supply chain orientation (SCO) to garner responsiveness from a global supplier. To capture the interplay of macro-level institutional environments, the authors examine the moderating effect of institutional distance on the SCO–supplier responsiveness relationship. Design/methodology/approach. Primary survey data collected from US manufacturers are utilized to measure SCO and supplier responsiveness. Two secondary data sets (EIU and GLOBE) capture formal and informal distance at the institutional level and are used to test the moderating effect of institutional distance. Findings. The research finds that SCO can facilitate global supplier responsiveness. A post hoc exploratory analysis reveals a three-way interaction, where the SCO–supplier responsiveness relationship is strengthened when formal and informal institutions are either very similar or very different. Research limitations/implications. The research offers a more nuanced understanding of manufacturer–supplier relationships in global supply chains by demonstrating how country-level (macro) characteristics can influence firm-level (micro) supply chain phenomena. It extends research on SCO by illustrating how institutional distance interacts with a manufacturer’s ability to leverage SCO to enable supplier responsiveness. Practical implications. Manufacturers should increase their attentiveness to institutional distance. When both formal and informal distances are different (i.e. high distance), SCO can create a powerful lever to improve global supplier responsiveness. Likewise, when formal and informal institutions are similar (i.e. low distance), SCO reinforces joint efforts and collaboration to create additive benefits, whereby suppliers are incentivized to be responsive to unexpected environmental changes. Originality/value. This research addresses the growing call for more empirical studies that examine how country-level institutions influence firm-level phenomena. It also utilizes secondary data to serve as a proxy for formal and informal institutional distance.

Lin, X., Richard Germain, & Krotov, K. (in press). Performance effects of technological dynamism: Private vs. state enterprises in Russia. Journal of East-West Business. Advance online publication. doi:10.1080/10669868.2018.1496962


How has the privatization-led economic transition transformed Russian firms? Prior to recent economic recession caused by Western sanctions, Russia’s economic performance has been impressive, yet little is known about its micro-level sources. Particularly, while macro-level data suggests a positive effect of privatization, such effect is seldom substantiated at firm-level in Russia. To take a step towards opening the black box, we investigated the performance effect of technology dynamism in Russian firms and the extent to which ownership mattered with regards to the technology dynamism-performance link. Our survey data shows that performance is driven by IT adoption, entrepreneurial orientation, and technological turbulence in Russian firms and that the positive effects of technological turbulence are stronger for private than for state-owned Russian firms. According to our results, Russian private enterprises appear more capable of buffering and gaining from technological turmoil, suggesting that the most significant outcome of organizational transformation in Russia is the firms enhanced capability in managing external environmental dynamism.

Connor Lennon. (2019). Employer-sponsored health insurance and the gender wage gap. Southern Economic Journal, 85, 742-765. doi:10.1002/soej.12311


In the United States, female workers tend to have higher medical expenditures than male workers. Due to experience rated premiums, the cost of providing employer‐sponsored health insurance (ESI) therefore differs by gender. This article examines if that cost difference contributes to the gender wage gap. Identification comes from the exogenous variation provided by the Affordable Care Act’s employer mandate. Estimation uses a difference‐in‐difference framework with data from the Medical Expenditure Panel Survey. Findings suggest the portion of the gender wage gap attributable to ESI is smaller than existing estimates in the literature and is statistically no different to zero once individual medical expenses are included as a control. In addition, the article’s empirical approach highlights that existing work on the role of ESI in the gender wage gap does not separately identify the effect of ESI from plausible alternatives.

Ma, D., Mattingly, E. S., Kushev, T. N.,Manju Ahuja, & Andrew S. Manikas. (2018). Persistence decisions: It’s not just about the money. Journal of Entrepreneurship. Advance online publication. doi:10.1177/0971355718810575


Drawing on threshold theory, we examine the effects of attributes of alternative opportunities on persistence decisions of family business entrepreneurs. The results of our conjoint experiment show that: (a) family business entrepreneurs are generally more persistent than other entrepreneurs and (b) family business entrepreneurs focus more on non-financial benefits than other entrepreneurs. Our study contributes to persistence literature within the family business context and provides a good basis for how family business literature can benefit from multi-level theoretical and empirical modelling.


November 2018

Michael J. Barone, Xingbo Li, Winterich, K. P., & Lyle, K. B. (2018). Social-spatial effects in pricing: When and how vertical orientations shape processing of price comparisons. Customer Needs and Solutions, 5, 137-145. doi:10.1007/s40547-018-0090-6 


Marketers frequently compare a product’s sale price against its regular price to accentuate perceptions of value. The effectiveness of these price comparisons is predicated on consumers sufficiently processing the deal’s depth (i.e., the regular price − sale price differential). Although research indicates consumers can generally make such assessments, we document an exception when price comparisons are presented in a format that aligns with the vertical orientation of consumers. The correspondence between vertical price comparisons and the mindsets of individuals who value social hierarchies (i.e., who are vertically oriented) induces a sense of “fit” that reduces processing and leads to similar responses to the offer regardless of deal depth. This effect manifests regardless of whether vertical orientations are measured as a chronic state or temporarily primed. Supporting our theorizing, vertically oriented participants report paying less attention and being less motivated to process price comparisons. Theoretical implications of these findings are discussed as are suggestions for future research examining how social views may shape consumer processing of product attribute and point-of-purchase information.

Robert P. Garrett Jr. & Tommie Welcher. (2018). Corporate entrepreneurship as a survival routine. In D. F. Kuratko & S. Hoskinson (Eds.), The challenges of corporate entrepreneurship in the disruptive age (pp. 111-122). London, UK: Emerald.


In this chapter, the authors conceptualize corporate entrepreneurship as a mental model that allows firms to adapt to new competitive landscapes by facilitating the development of new cognitive scripts and schemas. The authors begin by explaining what it means for a firm to be competitively bewildered, or lost, in a rapidly changing competitive domain. The authors also describe five stages of being lost competitively. The authors then map the attributes of an entrepreneurial firm – adaptability, speed, flexibility, aggressiveness, and innovativeness – to stages of the bewilderment process wherein they may be most helpful to realign competitive realities and entrepreneurial scripts and schemas. The authors conclude by proposing contributions resulting from conceptualizing corporate entrepreneurship as a bewilderment schema and also explain how this represents a novel perspective.

Stephan F. Gohmann. (2018). The persistence of historical influences on current economic freedom. In B. Powell (Ed.), Economic freedom and prosperity: The origins and maintenance of liberalization (pp. 89-116). London, UK: Routledge.

In Fatal Conceit, Hayek (1988, p. 9) says that “our values and institutions are determined not simply by preceding causes, but as part of a process of unconscious self-organization of a structure or pattern.” This long and slow evolutionary process results in diverse institutions across countries. The diversity of and path dependency from these historic institutions play a role in the current institutions that influence economic freedom and economic growth. In his examination of the influence of institutions on historical development, North (1990, 1991, 1994) finds that the “rules of the game” that develop in a region change the incentives for investment in human capital, increased productivity, and rent-seeking. In other words, institutions change the cost and benefits for individuals to engage in productive, unproductive, or destructive entrepreneurship (Baumol 1990). Through these incentives, institutions influence economic growth.

In Editorial News… Steven Vickner has been appointed as a managing editor of International Food and Agribusiness Management Review
Kudos… To Yong Chao, David Dubofsky, Jose Fernandez, Per Fredriksson, and Minjie Huang for being ranked in the top 10% of researchers on SSRN by number of total downloads.

October 2018

Cox, J. F., III., & Lynn H. Boyd. (in press). Using the theory of constraints’ processes of ongoing improvement to address the provider appointment scheduling system design problem. Health Systems. Advance online publication. doi:10.1080/20476965.2018.1471439


Health care is in crisis today: costs are rising, demand exceeds supply, quality is questioned and patient wait times are excessive while providers and staff are simultaneously overworked and frustrated. No one has a comprehensive system solution to providing more, cheaper, better, and faster health care, even in primary care practices, the first link in the health care supply chain. Additionally, this link like others frequently experiences the combination of complexity, uncertainty, and local optimisation simultaneously to create a chaotic environment. Health care problems have been called ill-structured (also “wicked”) and because of their tangled web of stakeholders with different and conflicting objectives defy traditional optimisation research methodologies. Proper design and management of the provider appointment scheduling system (PASS) provides a direction for a win–win health care solution (more, cheaper, better, and faster). Our objective is to provide a generic strawman process for developing a robust PASS for most environments. A theory of constraints thinking processes (TP) analysis was conducted on the academic research using a primary care practice to validate both entity and causality existence. From this integrated analysis, a robust process for designing a PASS resulted. Last, we show that Goldratt’s TP provides a logical, rigorous framework for qualitative research and design science.

Poudel, Krishna, Robert Carter & Lonial Subhash. (2018). The impact of entrepreneurial orientation, technological capability, and consumer attitude on firm performance: A multi-theory perspective. Journal of Small Business Management. Advance online publication. doi:10.1111/jsbm.12471


Despite the maturing entrepreneurial orientation literature, limited advance has occurred in the theoretical aspect of entrepreneurial orientation–firm performance relationship, and wide‐ranging empirical investigations are few. The authors address these concerns by testing a comprehensive model and by extending the theoretical boundary. Specifically, drawing on dynamic capability theory, core competence perspective, and consumer theories, we argue that technological capability is central for growth and financial performance of an entrepreneurially oriented firm. We introduce a construct called consumer attitude dynamism. We reason that this variable influences the growth of entrepreneurial firms. Our theory and empirical results primarily contribute to the entrepreneurship literature.

Dincer, O. C., & Per G. Fredricksson. (2018). Corruption and environmental regulatory policy in the United States: Does trust matter? Resource and Energy Economics, 54, 212-225. doi:10.1016/j.reseneeco.2018.10.001


This study shows that the level of trust matters for how corruption affects public policy outcomes in the long-run, in particular the stringency of environmental policies. We argue that the level of trust affects the relative strength of industry- and environmental lobby groups, and therefore the effect of corruption on the stringency of environmental policies. We use a novel index of the level of corruption in each state which uses Associated Press (AP) news wires. We find that higher corruption reduces the stringency of environmental policies when the level of trust is low, but the effect declines and even becomes positive at higher levels of trust.

Per G. Fredricksson & Wollscheid, J. R. (2018). Legal origins and environmental policies: evidence from OECD and developing countries.Letters in Spatial and Resource Sciences, 11(3), 369-375.


We investigate the implication of a civil law legal heritage versus common law heritage for environmental policy outcomes. We utilize several estimators that address selection issues. Common law countries set weaker climate change policies than do civil law countries.

Kosals, L., Alexei Izyumov & Bruce Kemelgor. (in press). From the plan to the market and back—the organisational transformation of the Russian defence industry. Europe-Asia Studies. Advance online publication. doi:10.1080/09668136.2018.1500524


The article examines the organisational transformation of the Russian defence industry during the period of privatisation and radical market reforms. The study is based on the results of an original large-scale longitudinal survey of the directors (CEOs) of the industry. We find that over a decade of transition, 1996–2006, Russian defence industry managers were able largely to preserve the production potential of their enterprises and make them capable of operating under market conditions. Coupled with the restoration of government orders and the 2020 rearmament programme, these newly acquired market skills have contributed to the impressive revival of the Russian defence industry in the Putin era.

Thomas, B., & Kristen Lucas. (in press). Development and validation of the workplace dignity scale. Group & Organization Management. Advance online publication. doi:10.1177/1059601118807784


As organizational scholars have become critically attuned to human flourishing in the workplace, interest in workplace dignity has grown rapidly. Yet, a valid scale to measure employees’ perceptions of dignity in the workplace has yet to be developed, thereby limiting potential empirical insights. To fill this need, we conducted a systematic, multi-study scale development project. Using data generated from focus groups (N = 62), an expert panel (N = 11), and two surveys (N = 401 and N = 542), we developed and validated an 18-item Workplace Dignity Scale (WDS). Our studies reveal evidence in support of the WDS’ psychometric properties, as well as its content, construct, and criterion-related validity. Our structural models support predictive relationships between workplace characteristics (e.g., dirty work, income insufficiency) and dignity. Moreover, we observed the incremental validity of workplace dignity to account for variance in employee engagement, burnout, and turnover intentions above and beyond the explanatory effects of organizational respect and meaningful work. These results demonstrate the promise of the WDS for organizational research.

Tommie Welcher. (in press). A new way to look at an old problem: International joint venture partner selection via constrained systematic search. Business Horizons. Advance online publication. doi:10.1016/j.bushor.2018.08.011


Although international joint ventures (IJVs) provide many benefits to multinational enterprises (MNEs), IJVs continue experiencing high dissolution rates; there is a pressing need to re-evaluate the partner selection process for IJVs. In this article, I utilize constrained systematic search (CSS) as the proposed process by which to improve the partner selection process and reduce IJV dissolution rates. CSS is a process MNEs can utilize to gain private information about potential IJV partners. The implementation of CSS can improve the success rates for an MNE entering an IJV in two ways: MNEs can more effectively identify (1) information withholding/misleading behavior of potential partners and (2) complementary resources in potential partners.

September 2018

Per G. Fredriksson & Gupta, S. K. (2018). The neolithic revolution and contemporary sex ratios. Economic Letters, 173, 19-22. doi:10.1016/j.econlet.2018.09.014


This study establishes a positive and robust association between the present-day country-level male-to-female sex ratio (at birth, 0–4, 0–14 year olds) and the pre-colonial experience with sedentary agricultural activities (the Neolithic Revolution). In comparison, historical plough use has a less robust impact on the sex ratio at birth, but a positive association for the 0–4 and 0–14 age groups.

Sandeep Goyal, Manju Ahuja, & Jeff Guan. (2018). Information systems research themes: A seventeen-year data-driven temporal analysis.Communications of the Association for Information Systems, 43, 404-431. doi:10.17705/1CAIS.04323


Extending the research on our discipline’s identity, we examine how the major research themes have evolved in four top IS journals: Management Information Systems Quarterly (MISQ), Information Systems Research (ISR), Journal of the Association for Information Systems (JAIS), and Journal of Management Information Systems (JMIS). By doing

so, we answer Palvia, Daneshvar Kakhki, Ghoshal, Uppala, and Wang’s (2015) call to provide continuous updates to the research trends in IS due to the discipline’s dynamism. Second, building on Sidorov, Evangelopoulos, Valacich, and Ramakrishnan (2008) we examine temporal trends in prominent research streams over the last 17 years. We show that, as IS research evolves over time, certain themes appear to endure the test of time, while others peak and trough. More importantly, our analysis identifies new emergent themes that have begun to gain prominence in IS research community. Further, we break down our findings by journal and show the type of content that they may desire most. Our findings also allow the IS research community to discern the specific contributions and roles of our premier journals in the evolution of research themes over time.

Ikeziri, L. M., De Souza, F. B., Mahesh C. Gupta, Fiorini, P. C. (2018). Theory of constraints: Review and bibliometric analysis. International Journal of Production Research. Advance online publication. doi:10.1080/00207543.2018.1518602


This paper presents a bibliometric analysis of the Theory of Constraints (TOC) research i.e. a total of 1009 journal articles published since 1984. From a bibliometric point of view, the state of the art was mapped and research gaps in the scientific literature identified, creating opportunities for future research. The Production area leads in number of publications, and applications in the Process of Ongoing Improvement in general have been receiving less attention from academics. It is also worth noting that the International Journal of Production Research has the highest concentration of published works on TOC. The results show that TOC is in continuous development with a trend of growth and therefore demands additional inquiry. The main contributions of this work are: (a) presenting a comprehensive historical review and bibliometric analysis on TOC in a manner not yet illustrated in the literature; (b) addressing potential implications and directions for the IJPR community on TOC research; and (c) offering avenues for future research on how to advance the extant literature of TOC.

Thomas E. Lambert. (2018). Does innovation chase profits, or do profits chase innovation? Journal of Applied Management and Investments, 7(3), 141-146.


This paper performs an empirical assessment of a debate held decades ago on whether an entrepreneur’s or a firm’s desire for profits starts with innovation, or whether excess profits or surplus are used as some type of investment fund to perform research, development and innovation.  That is, which typically comes first, innovation and then profits, or do profits come first, and then innovation?  In the former case, it is held that either the small entrepreneur or the large corporation has an idea for a new and innovative product or service and then finds the ways to fund its development.  In the latter case, it is thought that research and development on any new idea or product usually comes about only once a certain level of profitability has been attained by the firm, and development of a new product or service is not undertaken unless it meets a certain target rate of return on investment. The analysis of this paper examines a debate in which Paul M. Sweezy argued that innovation mostly comes about thanks to firms, especially large corporations, investing excess profits into research and development, which was contrary to the traditional view of Joseph Schumpeter who believed that innovative ideas come first, and then firms pursue the innovative ideas. The traditional view is still the predominant view of most people who study innovation, although so far no evidence of a test of the Sweezy contention has been found in the course of doing research on this topic.  This paper uses time series data from different governmental and private sector databases and time series least square regression to test the Schumpeter and Sweezy theories.

Andrew S. Manikas, & Godfrey, M. (2018). A spreadsheet approach for incorporating actual motor carrier freight rates and external environmental costs in a newsvendor model. International Journal of Management and Marketing Research, 11(1), 55-72.


The purpose of this paper is to present a model for maximizing a retailer’s total expected profit using actual motor carrier freight rates and estimates of environmental costs associated with the transportation of a seasonal product. It is assumed that a single seasonal product is sold at a fixed price and demand for that product is normally distributed. Prior to the selling season, the retailer must determine how many units of the seasonal product to purchase from the supplier—therefore, the newsvendor model is appropriate for analyzing this problem. It is assumed that the retailer arranges and pays for transportation, i.e., the product is shipped free on board (FOB) Origin, Freight Collect from the supplier. Items unsold at the end of the season can be sold at a reduced price (salvaged). Actual freight rates are incorporated in the model by considering less-than-truckload discounts, fuel surcharges for both less-than-truckload (LTL) and truckload (TL) shipments, and over-declaring of shipments. All-units purchase quantity discounts are assumed also. Due to the nonlinear nature of motor carrier freight rates, this problem does not have a closed-form solution. Therefore, we present an Excel-based model for solving this problem. As demonstrated in the model solution, when environmental costs are considered, the buyer’s optimal purchase quantity decreases.

And in Editorial News…

Manju Ahuja has been appointed as a Senior Editor of Journal of the Association for Information Systems and as Senior Editor of Information Systems Research.

Steven Vickner is the Chief Guest Editor of a special issue ofSustainability on Sustainability and the Equine Industry.

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



University of Louisville
College of Business
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Louisville, KY 40292
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The UofL College of Business is separately accredited by AACSB International (The Association to Advance Collegiate Schools of Business). Visit our Accreditation page for details.

University Accreditation:
Southern Association of Colleges and Schools Commission on Colleges (SACSCOC)



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