The Carrot and the Stick: Leveraging Strategic Control for Growth

June 15, 2019

In today’s world of interconnected and "always-on" information, companies that succeed are those that compete by leveraging the advantage of strategic control points. A strategic control point is a part of a market where, if controlled by one party, it can be used to leverage power elsewhere. This can occur throughout the supply chain, in a related business, or even in an unrelated market.


Immigrant Entrepreneurship: An American Success Story

June 04, 2019
Research Brief

A growing body of rigorous academic literature empirically demonstrates that high-skilled immigrants provide a range of long-lasting and material benefits to the U.S. economy through entrepreneurship and innovation. Recent research has quantified the impact of foreign-born founders on key economic indicators such as firm creation, job creation and overall business innovation. Likewise, a growing body of literature documents how skilled immigrants have more broadly facilitated technological innovation. More

Marketing Agility: Conceptualization, Research Propositions, and a Research Agenda

May 10, 2019
Working Paper

The objective of this paper is to introduce the emergent concept of marketing agility and develop an organizing framework that systematically captures the antecedents and consequences of marketing agility. Given the sparse literature on the topic, we use a grounded theory approach to tap into the mental models of managers. Synthesizing insights from 22 interviews with senior managers in diverse industries, we first define marketing agility, discuss its importance to various stakeholders in the field of marketing, and distinguish the concept from related constructs in the domains of strategy, information systems and marketing. Following this, we develop an organizing framework to guide the systematic study of marketing agility. We offer propositions related to organizational culture, organizational structure and marketing technology (martech) characteristics as antecedents of marketing agility.

How Does Web Personalization Create Value? Lower Cash Flow Volatility or Enhanced Cash Flows

May 08, 2019
Working Paper

This study examines the performance consequences of web personalization (WP), a type of personalization in which web content is personalized and recommendations are offered based on customer preferences. Despite the growing popularity of personalization, there is a dearth of research at the firm level on whether and how web personalization creates shareholder value. We develop and test a conceptual model that proposes that the impact of WP on shareholder value is mediated by 1) cash flow volatility and 2) premium price.

Have Private Equity Returns Really Declined?

May 06, 2019
• White Paper • Institute for Private Capital

In a recent paper, “Demystifying Illiquid Assets – Expected Returns for Private Equity,” Ilmanen, Chandra and McQuinn (of AQR) give a perspective on the past, present, and expected future performance of private equity. They conclude that “private equity does not seem to offer as attractive a net-of-fee return edge over public market counterparts as it did 15-20 years ago from either a historical or forward-looking perspective.” This analysis provides our perspective based on more recent and, we think, more reliable data and performance measures – the historical perspective is more positive than Ilmanen et al. portray. More

Building Industries by Building Knowledge: Uncertainty Reduction through Experimentation, Knowledge Release & Knowledge Acquisition

April 30, 2019
Working Paper

Scholars have long been interested in the process by which new industries emerge. A number of studies have examined aspects of this process, highlighting four dimensions — technology, demand, ecosystem and institutional — of uncertainty that often impede industry emergence. Building on the insight that uncertainty stems from partial knowledge, we develop theory to explain how knowledge generation leads to evolution of industries through their nascent stages. The underlying engine of our framework is an actor-level process that generates private knowledge consisting of three actions: experimentation, knowledge release, and knowledge acquisition. An aggregation of actor-level efforts across a diverse set of actors and over time endogenously generates industry knowledge base and reduces uncertainty. These actions shape subsequent knowledge creating and sharing activities to attain a series of critical industry-level milestones of commercialization and sales takeoff. Taken together, we show how the actions of individual actors can lead to the emergence and development of industries. More

Race, Old Age Vulnerabilities

April 22, 2019
White Paper

African American older adults face a major retirement crisis (Rhee, 2013; Vinik, 2015)). Owing to a legacy of racial discrimination in education, housing, employment, and wages or salaries, they are less likely than their white counterparts to have accumulated wealth over the course of their lives (Sykes, 2016). In 2013, the median net worth of African American older adult households ($56,700) was roughly one-fifth of the median net worth of white older adult households ($255,000) (Rosnick and Baker, 2014). Not surprising, given these disparities in net worth, African American older adult males (17%) and females (21%) were much more likely than their white male (5%) and female (10%) counterparts to live in poverty (Johnson and Parnell, 2016; U.S. Department of Housing and Urban Development, 2013a). They also were more likely to experience disabilities earlier in life and to have shorter life expectancies (Freedman and Spillman, 2016). More

Why Managers Do Not Seek Voice from Employees: The Importance of Managers’ Personal Control and Long-Term Orientation

April 04, 2019

Voice, or employees’ upward expression of challenging but constructive concerns or ideas on work-related issues, can play a critical role in improving organizational effectiveness. Despite its importance, evidence suggests that many managers are often hesitant to solicit voice from their employees.

Psychic Distance And Performance Of MNCs During Marketing Crises

April 01, 2019

When multinational corporations face foreign marketing crises, the psychic distance between the home and host country represents a distinct challenge. This paper examines the curvilinear relationship between psychic distance and firm performance during marketing crises, and the moderating role of marketing capabilities. More

Making Only America Great? Non-U.S. Market Reactions to U.S. Tax Reform

March 30, 2019
Working Paper • UNC Tax Center

We examine U.S. tax reform’s effect on foreign firms’ stock returns. Examining key tax reform events, we find little average foreign firm market reaction to tax reform. However, this average effect masks great heterogeneity by country, industry, and firm. More