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Global Reach. Innovative Programs. Diverse Perspectives.
Consumer Culture, Corporate Finance, Corporate Social Responsibility, Emerging Economies, Entrepreneurial Studies, Financial Engineering, Organization Strategy, Performance Measures, Public Policy, Strategic Management, Supply Chain Management, Organizational Accounting, Asset Pricing, Branding, Business and Sustainability, Business Ethics, International Business, Globalization, Real Estate Development, Health Care Management Consumer Culture, Corporate Finance, Corporate Social Responsibility, Emerging Economies, Entrepreneurial Studies, Financial Engineering, Organization Strategy, Performance Measures, Public Policy, Strategic Management, Supply Chain Management, Organizational Accounting, Asset Pricing, Branding, Business and Sustainability, Business Ethics, International Business, Globalization, Real Estate Development, Health Care ManagementConsumer Culture, Corporate Finance, Corporate Social Responsibility, Emerging Economies, Entrepreneurial Studies, Financial Engineering, Organization Strategy, Performance Measures, Public Policy, Strategic Management, Supply Chain Management, Organizational Accounting, Asset Pricing, Branding, Business and Sustainability, Business Ethics, International Business, Globalization, Real Estate Development, Health Care ManagementConsumer Culture, Corporate Finance, Corporate Social Responsibility, Emerging Economies, Entrepreneurial Studies, Financial Engineering, Organization Strategy, Performance Measures, Public Policy, Strategic Management, Supply Chain Management, Organizational Accounting, Asset Pricing, Branding, Business and Sustainability, Business Ethics, International Business, Globalization, Real Estate Development, Health Care ManagementConsumer Culture, Corporate Finance, Corporate Social Responsibility, Emerging Economies, Entrepreneurial Studies, Financial Engineering, Organization Strategy, Performance Measures, Public Policy, Strategic Management, Supply Chain Management, Organizational Accounting, Asset Pricing, Branding, Business and Sustainability, Business Ethics, International Business, Globalization, Real Estate Development, Health Care ManagementConsumer Culture, Corporate Finance, Corporate Social Responsibility, Emerging Economies, Entrepreneurial Studies, Financial Engineering, Organization Strategy, Performance Measures, Public Policy, Strategic Management, Supply Chain Management, Organizational Accounting, Asset Pricing, Branding, Business and Sustainability, Business Ethics, International Business, Globalization, Real Estate Development, Health Care ManagementConsumer Culture, Corporate Finance, Corporate Social Responsibility, Emerging Economies, Entrepreneurial Studies, Financial Engineering, Organization Strategy, Performance Measures, Public Policy, Strategic Management, Supply Chain Management, Organizational Accounting, Asset Pricing, Branding, Business and Sustainability, Business Ethics, International Business, Globalization, Real Estate Development, Health Care ManagementConsumer Culture, Corporate Finance, Corporate Social Responsibility, Emerging Economies, Entrepreneurial Studies, Financial Engineering, Organization Strategy, Performance Measures, Public Policy, Strategic Management, Supply Chain Management, Organizational Accounting, Asset Pricing, Branding, Business and Sustainability, Business Ethics, International Business, Globalization, Real Estate Development, Health Care Management
Consumer Culture, Corporate Finance, Corporate Social Responsibility, Emerging Economies, Entrepreneurial Studies, Financial Engineering, Organization Strategy, Performance Measures, Public Policy, Strategic Management, Supply Chain Management, Organizational Accounting, Asset Pricing, Branding, Business and Sustainability, Business Ethics, International Business, Globalization, Real Estate Development, Health Care Management Consumer Culture, Corporate Finance, Corporate Social Responsibility, Emerging Economies, Entrepreneurial Studies, Financial Engineering, Organization Strategy, Performance Measures, Public Policy, Strategic Management, Supply Chain Management, Organizational Accounting, Asset Pricing, Branding, Business and Sustainability, Business Ethics, International Business, Globalization, Real Estate Development, Health Care ManagementConsumer Culture, Corporate Finance, Corporate Social Responsibility, Emerging Economies, Entrepreneurial Studies, Financial Engineering, Organization Strategy, Performance Measures, Public Policy, Strategic Management, Supply Chain Management, Organizational Accounting, Asset Pricing, Branding, Business and Sustainability, Business Ethics, International Business, Globalization, Real Estate Development, Health Care ManagementConsumer Culture, Corporate Finance, Corporate Social Responsibility, Emerging Economies, Entrepreneurial Studies, Financial Engineering, Organization Strategy, Performance Measures, Public Policy, Strategic Management, Supply Chain Management, Organizational Accounting, Asset Pricing, Branding, Business and Sustainability, Business Ethics, International Business, Globalization, Real Estate Development, Health Care ManagementConsumer Culture, Corporate Finance, Corporate Social Responsibility, Emerging Economies, Entrepreneurial Studies, Financial Engineering, Organization Strategy, Performance Measures, Public Policy, Strategic Management, Supply Chain Management, Organizational Accounting, Asset Pricing, Branding, Business and Sustainability, Business Ethics, International Business, Globalization, Real Estate Development, Health Care ManagementConsumer Culture, Corporate Finance, Corporate Social Responsibility, Emerging Economies, Entrepreneurial Studies, Financial Engineering, Organization Strategy, Performance Measures, Public Policy, Strategic Management, Supply Chain Management, Organizational Accounting, Asset Pricing, Branding, Business and Sustainability, Business Ethics, International Business, Globalization, Real Estate Development, Health Care ManagementConsumer Culture, Corporate Finance, Corporate Social Responsibility, Emerging Economies, Entrepreneurial Studies, Financial Engineering, Organization Strategy, Performance Measures, Public Policy, Strategic Management, Supply Chain Management, Organizational Accounting, Asset Pricing, Branding, Business and Sustainability, Business Ethics, International Business, Globalization, Real Estate Development, Health Care ManagementConsumer Culture, Corporate Finance, Corporate Social Responsibility, Emerging Economies, Entrepreneurial Studies, Financial Engineering, Organization Strategy, Performance Measures, Public Policy, Strategic Management, Supply Chain Management, Organizational Accounting, Asset Pricing, Branding, Business and Sustainability, Business Ethics, International Business, Globalization, Real Estate Development, Health Care Management
Schulich Spotlight on Research 2015
Global Reach. Innovative Programs. Diverse Perspectives.
The trajectory of research taking place at Schulich
is definitely on the rise.
This is evidenced by our increasing success in securing external
funding, our impressive research scores in prestigious business school
ranking surveys and our large number of invited presentations
and visiting appointments at other top business schools worldwide.
Global Reach. Innovative Programs. Diverse Perspectives.
Faculty News & Research
2 Welcome
4 New Schulich Faculty
8 Newly Funded Projects
12 List of Endowed Chairs and Professorships
14 Schulich Fellowship in Research Achievement
Features
18 Schulich Research Day Celebration 2015
23 Geoffrey Kistruck – Social Impact Research Lab
28 Theodore Noseworthy – Canada Research Chair
32 Russell Belk Receives Title of Distinguished Research Professor
36 Markus Giesler – From Top-Tier Pub to TEDx Talk and Back
New & Forthcoming Publications 40 Books 42 Journal Articles49 Research Posters
Contents
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32
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2 Schulich School of Business
One of the features that makes a school of business perform at a consistently high level over many decades is the quality of its researchers. Over the past five decades, scholars at Schulich have transformed the way management educators understand core issues in many areas, including Marketing, International Business, Accounting, Sustainability and Organization Theory, to name just a few.
In January 2015, we hosted our second Research Celebration Day to recognize the work Schulich faculty members have done more recently. We invite you to sift through the pages of this Newsletter and to learn more about the fascinating research work taking place at the School.
Rigour and Relevance For academic researchers there are two dimensions that count. First, academics want to do research that holds up to the highest standards of academic work; they want to theorize consistently, analyze data professionally, document the results unequivocally, and draw conclusions that stand the test of reason. This is the ‘rigour’ dimension. But, secondly, academics also want to unearth knowledge about topics and issues that fundamentally matter to the real world. All too often, academic research may well meet the standards of the ‘ivory tower’, but the question about ‘who cares’ sometimes falls to the wayside.
Here at Schulich, we clearly do ‘rigour’. The number of papers, books and other research outcomes documented in this newsletter are as good as ever. Our professors hit the top journals consistently, published their books with elite global publishing houses for academic research and reaped a solid number of prestigious awards.
What this report also showcases, though, is that the areas where our scholars contribute new knowledge are areas that are of utmost importance to the real world. In other words, we also do ‘relevance’! Read the story of Professor Geoffrey Kistruck: his work is concerned with changing lives of people on
the ground in rural Ghana. Learn more about Professor Adam Diamant’s work on big data management that is directly improving management systems at Toronto Western Hospital. And discover how projects by Professors Wesley Cragg and Melanie Cao address pressing business issues faced by companies such as Siemens and DBRS.
The Global and the LocalSchulich’s unique selling proposition to our stakeholders has always been that we are a global school, based in Toronto, Canada. Reflecting Toronto’s status as one of the most multicultural cities in the world, our research is not only focused on issues pertaining to all five continents, but it is also conducted by and in collaboration with researchers originating from all over the world. This is reflected in multiple partnerships with universities all over the globe attracting funding from governments in many countries, as the work by Professors Anoop Madhok (Spain) or Justin Tan (China) profiled in this report demonstrates.
At the same time, the School is still very much rooted locally here in Toronto and, more broadly, in Canada. As such, our global outlook has always been driven by the ambition of ensuring our global agenda works for business here in Canada. After all, this is where most of our graduates are initially going to apply their skills. You will find numerous examples in this report of research that is making a direct contribution to Canada’s global competitiveness. For example, the research projects by Professors Ambrus Kecskés, Theodore Noseworthy and Henry Kim are all focused on enhancing the performance of Canadian companies in the global environment.
During the past year, we were successful in attracting government grants (e.g., SSHRC, NSERC, MITACS, etc.) as well as funding from industry. Most notably, this is the first year in which Schulich boasts a Tier 2 Canada Research Chair. You will find an interview with the newly appointed Professor in that role, Theodore Noseworthy, inside this report.
‘There is nothing more practical
than a good theory’University researchers worldwide have often aspired to live up to this quote by the famous psychologist Kurt Lewin – but rarely has it been achieved. At Schulich, researchers aspire to square the circle of producing work that is both academically excellent and practically relevant. You will find multiple examples featured in this report. For instance, Marketing Professor Markus Giesler’s work has reaped some of the highest acclaim in the world of academic publications. Yet his talk at York University’s TEDx earlier this year had already scored more than 37,000 downloads within months of being posted on the Internet. In this report you will find an interview in which Professor Giesler shares some of his insights into how to achieve a balance between academic excellence and practical relevance, which he refers to as ‘integrated scholarship’.
The 2015 edition of the Schulich Research Newsletter is a testament to a school that has academic excellence in research and real-world relevance at its core. We hope you enjoy reading about our exciting research work as much as we enjoy sharing it with you. And most of all, we would be happy to hear from you. Please email any feedback, suggestions or comments you may have to [email protected].
DR. DiRk MaTTenAssociate Dean, ResearchProfessor of Strategy and Hewlett Packard-Chair Research in Corporate Social ResponsibilitySchulich School of Business
DR. FaRhana iSLaMResearch OfficerOffice of the Associate Dean, ResearchSchulich School of Business
Welcome to the 2015 Research newsletter of the Schulich School of Business
It is with great pride and a thorough sense of achievement that we present the 2015 Research
Newsletter of the Schulich School of Business. We do so at a time when the School celebrates
its 50th anniversary. Through this report, we offer a glimpse of Schulich’s faculty research to our
stakeholders, which include our students, other academics globally, our worldwide alumni
community, and our generous donors.
2 Schulich School of Business
4 Schulich School of Business
Theodore Noseworthy holds a Canada
Research Chair (CRC) in Entrepreneurial
Innovation and the Public Good and is a
tenured Associate Professor of Marketing at
the Schulich School of Business at York
University. He is also an adjunct professor
at the Carl H. Lindner College of Business
at the University of Cincinnati. He earned
his doctorate in Marketing at the Ivey School
of Business, Western University, and has
held previous faculty appointments at the
University of Guelph.
Theo’s primary focus of research and teaching
is in the area of new product design and
innovation. This work focuses on how people
make sense of new innovative products and
how marketers can better facilitate adoption.
His primary theoretical interests are in the area
of product categorization and visual processing.
Theo’s primary focus of
research and teaching is in the
area of new product design
and innovation.
Theo is Scientific Director of the NOESIS:
Innovation, Design and Consumption
Laboratory (funded by the Canadian
Foundation for Innovation). The NOESIS lab
is designed to foster innovative research
into consumption, consumer behaviour, and
design. Theo has developed this lab with the
specific intent of conducting high quality
research, training personnel, and facilitating
knowledge mobilization.
Theo’s work has appeared in the Journal of
Marketing, Journal of Marketing Research,
Journal of Business Ethics, Journal of Consumer
Research, Journal of Consumer Psychology, and
Psychology & Marketing. His research has been
covered by major news outlets around the
globe, sparking interviews with the National
Post, and an invite from the Globe and Mail to
appear in “Canada’s Leading Thinker Series” to
share his insights into consumption innovation.
Prior to academia, Theo worked as a
professional chef and hospitality consultant.
Hence, when not in the behavioural lab, Theo
can be found cooking for friends and family.
His primary theoretical
interests are in the area of
product categorization and
visual processing.
Research ProjectsSome of his recent projects include: exploring
gender differences in the processing of
visually incongruent products; exploring how
consumers trade-off dominant product
features for perceptual identity; exploring how
certain types of positioning tactics influence
how consumers make sense of visually
incongruent products; and exploring how
people make inferences based on the visual
appearance of currency. ◆
TheODORe J. nOSeWORThY Associate Professor in Marketing & Canada Research Chair (CRC) in Entrepreneurial Innovation and the Public Good
new Schulich Faculty
Research keywords
• Marketing – Technology
• Marketing Research
• Research Methodology
4 Schulich School of Business
Lilian Ng is the Scotiabank Professor of
International Finance at the Schulich School of
Business. Prior to joining Schulich in 2015,
she was the Hans G. Storr Professor of
International Finance at the University of
Wisconsin and taught at several distinguished
universities, including the University of Texas
at Austin, Massachusetts Institute of
Technology, University of Southern California,
and University of California at Irvine. She is
the Co-Editor of the Review of Development
Finance and Associate Editor of the Asia-Pacific
Journal of Financial Studies. She has served
as Academic Director of the Midwest Finance
Association and also on the Editorial Review
Board of Journal of International Business
Studies. She has acted as an ad hoc referee
for over 30 financial and economic journals
worldwide. Her research interests are in
empirical asset pricing, international financial
markets, and institutional trading behaviour.
She has published extensively in leading
financial, economic, and international journals,
including the Journal of Business, Journal of
Finance, Journal of Financial Economics,
Journal of Econometrics, Journal of
International Money and Finance, Journal of
Business Economics and Statistics, Journal
of International Business Studies, and
Management Science. She has won several
best research paper awards at national and
international conferences and some of her
works were featured in The New York Times,
SmartMoney, The Straits Times (Singapore),
and Singapore Business Times.
Research ProjectsLilian’s research focuses on empirical asset
pricing models, with strong emphasis on
empirical international finance research.
She is working on a number of projects that
attempt to provide significant insights into the
trading behaviour of institutional investors
around the world. Institutional investors have
played an increasingly important role in the
global financial market over the last decade,
and as of 2014, the value of the assets they
managed amounted to the size of the world
GDP (i.e., US$76 trillion). In one of her
publications, her results indicate that mutual
funds, a specific group of institutional investors
that she has examined, from both developed
and developing countries, allocate a
disproportionately larger fraction of their
investment to domestic than to foreign equity
markets. This evidence is widely known as
the “home bias” phenomenon. Her study
finds that the stock market development and
familiarity variables have significant, but
asymmetric, effects on the home bias.
Lilian’s research focuses on
empirical asset pricing
models, with strong emphasis
on empirical international
finance research.
One current project expands her earlier study
by investigating how institutional investors
behave in times of crises in local and foreign
markets. For example, during the 1997
Asian crisis and the 2008 global credit crisis,
several studies have shown that financial
intermediaries contribute to the excess
co-movement in asset returns and that they
play a role in crisis transmission. However, none
of these studies have looked at how financial
intermediaries rebalance their portfolios during
crises. Lilian intends to examine whether
different types of institutional investors from
a broad spectrum of developed and developing
countries, when hit by shocks that negatively
affect the value of their assets in their home
markets, have a tendency to rebalance their
portfolios away from international markets to
their domestic markets. Her study will address
several important questions. When a foreign
market is in turmoil, how do institutional
investors respond to such crisis periods? Is
there any evidence of flight-to-home, flight-to-
liquidity, and flight-to-safety effects? That is,
if institutional investors are to pull their capital
out of the foreign market, where do they invest
and why? What about when a local market
is in turmoil? Do investors move their funds
abroad and where? Lilian hopes to provide
these answers to academics and practitioners
by the end of the summer. ◆
LiLian nGScotiabank Professor of International Finance
Research keywords
• Institutional Trading Behaviour
• Home Bias
• Exchange Exposure
• International Financial Markets
• Empirical Asset Pricing
Spotlight on Research 2015 5
6 Schulich School of Business
Adam Diamant is an Assistant Professor of
Operations Management and Information
Systems at the Schulich School of Business.
He received his PhD in Operations Management
from the Rotman School of Management
(University of Toronto), his MSc. in mathematical
finance from Boston University, and a BSc.
in Computer Science and Physics from the
University of Toronto. He has worked in a
startup that provides solutions for big and
real-time streaming data, has been a software
consultant for firms engaged in high frequency
trading, and has done atmospheric physics
research. Adam’s research uses stochastic
modeling, queueing theory and econometric
techniques to model and optimize systems in
health care, finance, and urban development.
Adam’s research uses stochastic
modeling, queueing theory
and econometric techniques
to model and optimize systems
in health care, finance, and
urban development.
Research ProjectsHis first research project applies queuing
theory to the modeling of crossing networks,
alternative trading systems where submitted
orders are hidden from other market
participants. Crossing networks differ from
transparent exchanges in that parties do not
observe the buy/sell queues in the system.
Traders submit anonymous buy/sell orders for
a security along with the order size and the
maximum time (i.e., deadline) to carry out the
transaction. If an order is not completely filled
by its deadline, the unfilled portion of the
order immediately leaves the system. Impatient
traders have a deadline of zero, while patient
traders have a non-zero deadline and may
queue. Prior to this research, the operation of
crossing networks and how fill rates and
system times were affected by operational
characteristics had not been examined.
The system is modeled as double-sided queue
with type- and side-dependent arrival rates,
batch sizes, and abandonment behaviour.
The steady-state queue length distribution is
derived and closed-form system-level
performance measures are obtained. These
are the first closed-form results for a double-
sided queuing model with batch arrivals
and abandonment. The expected fill rate and
system time as a function of order size and
abandonment deadline for an individual
customer who arrives to the system in
steady-state are also derived. The proposed
theoretical model explains several phenomena
observed in practice. For instance, it is
demonstrated that there is an incentive for
patient customers to become more impatient
and submit smaller orders which is also
observed in practice.
His second research project develops a
quantitative model to manage the inventory of
reusable surgical supplies at Mount Sinai
Hospital. The sterilization process of reusable
instrument sets is modeled as a discrete-time
Markov chain. The corresponding steady-state
probabilities, an expression for the probability
that there is insufficient inventory to meet
demand (i.e., a stock-out event), and the
optimal number of reusable instruments to
procure are derived. Several structural results
are presented and the effectiveness of the
theoretical model is demonstrated by applying
it to usage data collected between 2010–2011.
The results will guide future procurement
decisions based on the tradeoff between desired
service-levels and expected stock-out costs.
In another project, the scheduling practices of
a multi-assessment, outpatient, health care
program are investigated. The system is
modeled as a Markov Decision Process (MDP).
The objective is to maximize throughput
(patients who complete all assessments) while
minimizing the number of vacant appointment
slots due to no-shows (patients who schedule
an appointment but do not show up) and the
time patients spend in the system. Optimal
scheduling actions are obtained and a
simulation model is presented to compare the
proposed scheduling actions with several
ad hoc policies. It is demonstrated that the
proposed scheduling policies significantly reduce
the time patients spend in the system and
the number of unused appointments slots due
to no-shows. To further demonstrate the
effectiveness of the proposed scheduling
policies, they are applied to the Bariatric Surgery
Program run out of Toronto Western Hospital
to improve current operating procedures. ◆
aDaM DiaManT Assistant Professor of Operations Management and Information Systems
new Schulich Faculty cont’d
Research keywords
• Data Modelling
• Group and Team Dynamics
• Health Care Management
• Managerial Decision Processes
• Operations Management
• Organizational Learning
6 Schulich School of Business
Hongping Tan is an Associate Professor of
Finance & Accounting at the Schulich School
of Business. He earned his PhD degree from
Queen’s School of Business. He is cross-
appointed in the finance and accounting areas.
Hongping’s research interests include financial
disclosure, analyst forecasts and international
capital markets. In particular, he is interested
in the impact of information asymmetry due
to various factors such as geography distance,
accounting standard difference, media
coverage and culture value on some major
market participants including financial analysts
and institutional investors. He has published
papers in the Top Three accounting journals
(Journal of Accounting and Economics,
Accounting Review, and Journal of Accounting
Research) and the Top Three finance journals
(e.g., Journal of Financial Economics) in recent
years. Hongping has received four SSHRC
grants (two as principal investigator and two as
co-applicants) and four best-paper awards from
finance association annual meetings in recent
years. He has served as an ad hoc referee for
many accounting, finance and management
journals, including top-tier journals such as
Accounting Review, Journal of Finance, Review
of Financial Studies, Journal of Financial and
Quantitative Analysis, Management Science,
and Contemporary Accounting Research.
Research ProjectsHongping’s research falls into two streams.
He has five working papers that investigate the
determinants and impact of analysts’ coverage.
This line of research is a natural follow-up to
his earlier publications. He applies analyst
forecasts (including earnings and target prices)
to various contexts including IPO, culture and
international markets to examine the impact of
external forces such as culture, societal trust
and country-level institutional characteristics on
analyst forecast behaviour.
Hongping has published papers
in the Top Three accounting
journals (Journal of Accounting
and Economics, Accounting
Review, and Journal of
Accounting Research) and the
Top Three finance journals in
recent years.
His second stream of research focuses on the
textual analysis of unstructured data from
various sources, including mandatory 10-K and
10-Q filings, analyst field trip reports, news
releases, and analyst research reports. The
major content information extracted includes
the readability measures (such as Gunning-Fog
index and the Flesch-Kincaid scale) and the
positive-negative tones based on two major
approaches: dictionary-based approach and
naïve Bayes classification approach. For analyst
reports, he has also extracted the valuation
model use, disclosure of conflict of interests
and other information. He plans to use a
content analysis approach to better understand
the determinants of information disclosure and
its value implications to various market
participants including financial analysts and
institutional investors. ◆
hOnGPinG TanAssociate Professor of Finance & Accounting
Research keywords
• Financial Disclosure
• Analyst Forecasts
• International Capital Market
Spotlight on Research 2015 7
8 Schulich School of Business
newly Funded Projects
SShRC inSiGhT GRanT
Free Trade and innovation: evidence from Canada and around the World
Principal Investigator: Ambrus Kecskés
According to the World Trade Organization, global trade stands at around $45 trillion (as of 2012) or 64% of gross world product. For many countries, international trade accounts for a large proportion of economic output, and it is therefore central to their prosperity. The objective of this study is to examine the effect of international trade on investment in innovation. There are persuasive arguments in favour of free trade and much supportive evidence on countries but limited evidence on the businesses through which commerce is conducted. This study uses micro data to show that greater openness to international trade fosters the growth of new products and services.
SShRC inSiGhT GRanT
effects of national Level Trust on Bank Risk Taking, Performance and Financial Reporting
Principal Investigator: Kiridaran Kanagaretnam Collaborator: Gerry Lobo (University of Houston)
The most recent financial crisis has been characterized by many as a trust crisis. The opportunistic behaviour of bank managers has eroded the trust in banks and bankers, and is an important reason for the stock market collapse during the crisis. Given the importance of trust, the primary objective of our research program is to study whether and how national-level trust influences bank financial reporting, risk taking and performance. We plan to address these questions by analyzing a sample of banks from over 70 countries during the period 2000–2006 (prior to the financial crisis) and the period 2010–2014 (after the crisis).
Theodore J. noseworthy
The proposed research programs under the tenure of this Chair will advance our understanding of how consumers respond to innovation. The goal is to develop theory while informing business and policymakers not only about the benefits of properly communicated innovation, but also about the potential costs to susceptible consumers and society. This Chair position coincides with an infrastructure grant from the Canadian Foundation for Innovation (CFI) to develop a world-class behavioural lab (The Innovation, Design, and Consumption Laboratory). The CRC/CFI combination presents an ideal balance to help Dr. Noseworthy examine three of his most pressing research programs:
1. How marketers can better communicate disruptive innovation;
2. How consumers may be susceptible to certain food innovations; and
3. How behaviours alter with the introduction of certain monetary innovations. This CRC position was designed to help combat Canada’s innovation deficit by helping the private sector transfer knowledge into sustainable commercialized products and services to grow the economy.
The nOeSiS: innovation, Design, and Consumption Laboratory
Principal Investigator: Theodore J. Noseworthy
The proposed infrastructure will assist in advancing our current understanding of how consumers make sense of innovation, and how marketers can better communicate innovative goods and services to facilitate adoption. The end goal is to inform business and policymakers not only about the benefits of properly communicated innovation, but also about the potential costs of ambiguous products to susceptible consumers and society at large. This lab is designed to further three research programs that collectively examine:
1. How marketers can better communicate radical (disruptive) innovation;
2. How consumers can be susceptible to food innovations; and
3. How behaviours can alter with the introduction of monetary/currency innovation. The Innovation, Design, and Consumption laboratory will be located in room W254 at the Schulich School of Business. At the broadest level, the proposed infrastructure will allow Dr. Noseworthy to bridge the divide between scholarly advances on innovation and private sector awareness, and ultimately contribute to enhancing the future economic sustainability of Canadian businesses.
Schulich researchers continue to successfully secure external funding from Canada’s Federal
Tri-council agencies. The Tri-council agencies are the major source of funds for research and scholarship
within Canadian academic institutions. Schulich faculty members primarily receive funding from
The Social Sciences and Humanities Research Council (SSHRC) and The Natural Sciences and
Engineering Research Council (NSERC). This year’s achievements are exceptional as Schulich gained
its first Canada Research Chair.
Canada Research Chair in entrepreneurial innovation and the Public Good
The Canadian Foundation for innovation (CFi) Grant
Social Sciences and humanities Research Council (SShRC)
8 Schulich School of Business
SShRC inSiGhT GRanT
Fundamental Valuation and applications to Behavioural Finance
Principal Investigator: Mark J. Kamstra Co-Investigator: Lisa A. Kramer (University of Toronto)
The importance of market rationality in setting asset prices has gained new currency with recent periods of market turmoil. The prices of financial assets seem influenced, at least in part, by “fads” of investor sentiment. The objective of this research is to test for deviations from fundamental value resulting from changes in investor risk aversion, and to extend these techniques to evaluate deviations from fundamental prices caused by investor sentiment. This research builds on my work on behavioural finance and my work on fundamental valuation. My research on behavioural finance finds large and robust seasonal patterns in asset returns related to a pervasive mood disorder, seasonal affective disorder, or SAD. My research on fundamental valuation, developing valuation models for pricing assets, allows the estimation of prices. If investors exhibit seasonally varying risk aversion, then market prices will appear to be both too low relative to the simulated constant risk aversion fundamental prices in the fall. The results of this research will bear importantly on the determination of appropriate policy reactions to extreme events in financial markets.
SShRC inSiGhT DeVeLOPMenT GRanT
Developing Business analytics Capability for Competitive advantage
Principal Investigator: Murat Kristal
This research will draw on both streams of research, and focus on driving insights from multiple case studies to develop constructs and a theoretical framework on dynamic Business Analytics (BA) capability development. My research will address the following questions:
• How does an organization develop successful dynamic business analytics capabilities?
• How can this development be measured and benchmarked?
• What are the important antecedents that a firm starting out on BA capability development should possess?
• What are common pitfalls that firms investing in BA capability should avoid?
• Why are some organizations more successful than others at implementing dynamic BA capabilities?
The final results from this study and the broader research program will contribute to knowledge of both the use of business analytics in organizations, and the development of dynamic capabilities.
SShRC inSiGhT DeVeLOPMenT GRanT
Moral Reasoning, Social Preferences, and honest Reporting
Principal Investigator: Sylvia Hsu Co-Investigator: Janne Chung
The purpose of this project is to examine the interaction between moral reasoning and social preferences in individuals’ ethical decision making. Conventional economic theory suggests that ethics is of “no value” in self-interested agents’ decision making. However, recent empirical research shows that a proportion of ethical people forego economic payoffs in preference of behaving ethically. Because of social preference concerns, individuals’ behaviour may differ from that predicted by agency theory. In contrast to conventional
economics theory, social psychology suggests that individuals’ decisions are influenced by moral motivation. When individuals resolve ethical dilemmas, they evaluate two important moral concerns: harm/care and fairness. Kohlberg (1969, 1976) proposes a cognitive moral development model to theorize the cognitive aspect of moral decision making. The objectives of this project are to address two previously untested research questions by integrating the economics and social psychology literature. First, how does distributional fairness affect the ethical decisions of individuals with different moral cognitive processes? Second, when facing different levels of monetary payoff for misreporting, how do managers with different levels of moral reasoning provide financial reporting? The results will contribute to business and ethics research and provide implications for business management in enhancing moral behaviour.
SShRC COnneCTiOnS GRanT
Social impact Research Lab Project Planning Workshop
Principal Investigator: Geoffrey Kistruck
The Social Impact Research Lab (SIRlab) is a participatory action research initiative housed at the Schulich School of Business. It is comprised of a global network of business scholars that draws upon a diverse range of management theories to help not-for-profit organizations and social enterprises design and pilot test improvements to their poverty alleviation models. To date, the team of scholars has undertaken projects in over 30 different counties in Africa, Asia, and Latin America. SIRlab’s network of scholars decided to begin to focus their collective efforts on a single geographic region each year (e.g., 2015 on Ghana). The country of Ghana was selected for several reasons, including its geographic centrality (SIRlab’s network of scholars exists in North America, Europe, and Asia), its relatively stable political system, and a growing opportunity for establishing new market linkages between the rural poor and flourishing urban centres. The inaugural workshop at Schulich acts as a catalyst in building direct relationships between SIRlab scholars, Ghanaian scholars, and Ghanaian practitioners.
SShRC PaRTneRShiP DeVeLOPMenT GRanT
Social impact Research Lab
Principal Investigator: Geoffrey Kistruck
The Social Impact Research Lab (SIRlab) is a newly formed partnership based at the Schulich School of Business. It is a collaborative effort comprised of three primary types of actors:
1. Strategic management scholars from developed country institutions (e.g., Canada, the U.S., etc.) that possess a passion for designing and pilot testing theoretically-based improvements to poverty alleviation models;
2. Management scholars from developing country institutions (e.g., Ghana, Tanzania, etc.) that possess a desire to strengthen their knowledge of current management theories and combined qualitative and quantitative research methodologies in the context of poverty alleviation; and
3. Non-profit organizations and social enterprises (e.g., CARE, Technoserve, Accion, etc.) that are willing to acknowledge shortcomings in their existing programming, and to experiment with potential solutions in order to achieve greater impact and efficiency in the scaling of their overall efforts. Thus, the overarching goal of the SIRlab partnership is to build stronger networks between both academic and non-academic audiences from diverse contexts for the direct sharing and co-creation of knowledge with regard to the role of business in poverty alleviation.
Social Sciences and humanities Research Council (SShRC) continued
Spotlight on Research 2015 9
10 Schulich School of Business
nSeRC DiSCOVeRY GRanT
Simulation-Optimization Methods and Modelling-to-Generate-alternatives for Planning Under Uncertainty
Principal Investigator: Julian S. Yeomans
Simulation-optimization (SO) is a computational approach for incorporating significant uncertainties into the determination of best solutions to complex planning problems. This research will investigate a variety of methods that improve the performance of SO both by decreasing its computing time and by producing better quality solutions. Furthermore, most large, real-world applications typically contain components that are very difficult to incorporate into corresponding computational models and tend to be riddled with unquantifiable design specifications. While mathematically optimal solutions might provide the best solutions to these modelled problems, they are generally not the best answers to the underlying real problems as there are invariably unmodelled objectives and unquantified issues not considered during model construction. Hence, in practice, it is considered more desirable to generate a number of very dissimilar alternatives that supply completely distinct perspectives to the formulated problem. In response to this multi-solution creation requirement, several approaches referred to as modelling-to-generate-alternatives (MGA) have been developed. This project will demonstrate that SO can be used as an effective MGA method for large-scale policy planning under uncertainty.
nSeRC enGaGe GRanTS
Leveraging Supply Chain automation expertise to Develop Supply Chain analytics Capabilities
Principal Investigator: Henry Kim
According to IDC, firms worldwide spent $35 billion on analytics software in 2012, and the market is expected to exceed $50 billion by 2016. This substantial and high-growth market complements the revolution in ‘Big Data.’ Therefore, this market is of strategic importance in ensuring the competitiveness of Canadian Information and Communications Technologies (ICT) industries, and so Canadian companies such as QLogitek are looking to invest in raising their presence in this market. QLogitek is interested in leveraging its expertise and relationships in the supply chain space and in capitalizing on current opportunities in analytics to strengthen and develop its capabilities in supply chain analytics. QLogitek’s core competencies include:
1. Its expertise in supply chain automation and integration services;
2. Its knowledge of, and relationships with, its clients in key industries as well as SEB partners; and
3. Its access to clients’ and SEB partners’ data assets. With support from the ENGAGE grant, the objectives of this research collaboration are to develop a strategic plan for new solutions in supply chain analytics that best leverage QLogitek’s core competencies, and to develop a use case/prototype of the most promising offerings.
natural Sciences and engineering Research Council of Canada (nSeRC)
Other external Grants
CanaDian inTeRneT ReGiSTRaTiOn aUThORiTY
how Do Canadian Organizations Benefit From helping Develop the Firefox Web Browser
Principal Investigator: Ellen R. Auster Co-Investigator: Mekki MacAulay
The purpose of this research, which is part of a broader research agenda into open source strategy, is to help understand how the participation of Canadian organizations in Mozilla’s Firefox project has contributed to their competitiveness, skills development, network, reputation, and/or growth over time. The benefit for researchers is that it challenges the standard business assumption that “giving it away” is “bad for business”.
The SWiFT inSTiTUTe
The Scope of international Mutual Fund Outsourcing
Principal Investigator: Douglas Cumming Co-Investigators: Armin Schwienbacher and Feng Zhan
This research examines the causes and consequences of mutual fund outsourcing to different types of service providers: advisors, custodians, administrators, and transfer agents. The data indicates outsourcing is less common among bank-managed funds and funds of leading groups, but more common among funds that are distributed through third parties. Moreover, initial subscription fees are lower among funds that outsource non-advisory services, while annual management fees are not different among funds that outsource. The effect of service outsourcing on subscription fees occurs only for funds targeting institutional investors; retail investors enjoy no fee gains. The outsourcing of advisor services is associated with greater fund risk, but also with higher risk-adjusted performance (Sharpe ratio). However, the positive link with performance disappears when controlling for endogeneity, suggesting that fund managers optimally outsource advisory services in response to expected performance gains. Consistent with our predictions, outsourcing of other services does not impact portfolio decisions. Their impact is through lower subscription fees.
newly Funded Projects cont’d
10 Schulich School of Business
LahORe UniVeRSiTY OF ManaGeMenT SCienCeS
Culture, Scripts and negotiation
Principal Investigator: Christopher Bell Co-Investigators: S. Quratulain and A.K. Khan
We explore how culture- and society-specific negotiation scripts are related to outcomes of naïve negotiators in complex, multi-issue negotiations. A script is a cognitive knowledge structure that integrates mental representations of events, behaviours, objects, and ideas. Cultures or societies may differ in the types or content of situations they provide, with correspondingly different scripts for similar situations. In Pakistan and China, retail exchanges are typically characterized by bargaining and competitive negotiation. In Canada, most retail marketplace experiences are structured exchanges with clearly set prices and little opportunity to bargain. These differences in the form and availability of bargaining experiences will be integrated into negotiators’ scripts. Pakistani and Chinese negotiators’ performance will be determined by a script characterizing negotiation as a competitive, distributive, zero-sum game, whereas Canadian negotiators’ performance will be relatively more consistent with a cooperative interaction between partners.
MiTaCS OF CanaDa
Credit Ratings for Small and Medium enterprises
Principal Investigator: Melanie Cao Co-investigators: Huaxiong Huang (York University), and Sebastian Jaimungel (University of Toronto)
Our industry partner for this grant is the Dominion Bond Rating Service Ltd. (DBRS), a privately-owned Canadian company. DBRS is a globally-recognized credit rating agency. It provides timely credit rating opinions for a broad range of entities, including financial institutions, corporate entities, government bodies and various structured finance products in North America, Europe, Australasia and South America. The objective of this grant is to help DBRS build a regression model to evaluate credit ratings for small and medium enterprises. The challenge of this project is that most of small and medium enterprises are private companies that do not have stock market data. My co-applicants and I intend to propose a theoretical framework to overcome this challenge.
SieMenS aG, Via The CenTRaL eUROPean UniVeRSiTY
Conference on “educating for integrity”
Principal Investigator: Wesley Cragg
This grant is from Siemens, the German multinational via the Central European University to organize a conference on “Educating for Integrity” to be held at York University in November, 2015. The conference will bring together scholars, business, government, and voluntary sector leaders from North and Central America to examine and discuss the issue of corruption and bribery; how to effectively address the challenges it poses for business and the economy through education and the development of courses and training on the part of business schools, institutions of higher education generally; and executive training on the part of universities, professional organizations and associations and corporations.
STaTe SeCReTaRiaT OF ReSeaRCh, DeVeLOPMenT anD innOVaTiOn, MiniSTRY OF eCOnOMY anD COMPeTiTiVeneSS, SPain
The Globalization of Spanish Firms in Latin america: Springboard Subsidiaries, innovation and Local Spillovers
Principal Investigator: Anoop Madhok Co-Investigators: J. Pla-Berber and C. Pilar
This project is focused on analyzing investments in Latin America carried out by multinational firms through their subsidiaries located in Spain, i.e., units acting as headquarters out of their domestic region (extra-regional headquarters). These subsidiaries become key actors creating high added value for the various entities involved and offer unique competencies for the network that are very useful to enhance global competitiveness. In addition, the project identifies and explores the organization mechanisms critical to create and gain access to relevant knowledge in order to achieve better innovative performance. The project contributes to recent literature on the relationship between headquarters and subsidiaries, and also includes aspects from the literature on economic geography, competence creation and innovation.
naTiOnaL SCienCe FOUnDaTiOn OF China
The Relationship between alliance network and Firm innovation Performance: a Cross-level and Dynamic Perspective
Principal Investigator: Justin Tan
This project attempts to investigate how factors at different levels of alliance networks work on the innovation performance of firms, and how organizational innovation mechanisms co-evolve with the development of alliance networks, by integrating the three broad theoretical perspectives: network theory, cross-level theory and co-evolution theory. A multiple method design, including meta analysis, case study, and simulation, is adopted in our research. We would first identify the factors at three levels of an alliance network that work on organizational innovation performance, with a longitudinal study of the Chinese 3G industry based on TD-SCDMA standard, and meta analysis of literature. After that, a simulation model based on multi-agent theory will be built to facilitate the analysis, to investigate how factors across the three levels of alliance network work on the organizational innovation performance, and how organizational innovation mechanisms and alliance networks co-evolve with each other. This project has potential to contribute to the social network analysis, and Chinese-based theory building and empirical practice. ◆
Other external Grants continued
Spotlight on Research 2015 11
12 Schulich School of Business
List of endowed Chairs and Professorships
ann Brown Chair of Organization Studies (established in 2010)
ChaRLene ZieTSMaBA (Wilfrid Laurier); MBA (Simon Fraser); PhD (University of British Columbia)Associate Professor of Organization Studies Director of Entrepreneurial Studies
CiT Chair in Financial Services (established in 1998)
JaMeS DaRROChBA & MA & PhD (Toronto); MBA & PhD (York)Associate Professor of PolicyArea Coordinator, Policy /StrategyDirector, Financial Services Program
anne & Max Tanenbaum Chair in entrepreneurship and Family enterprise (established in 1999)
eiLeen FiSCheRBA & MASc (Waterloo); PhD (Queen’s)Professor of MarketingDirector, PhD Program
Bell Media Professorship in Media Management (established in 2002)
DOUGLaS BaRReTTBA Hons (York); MSc (Syracuse); LLB (Dalhousie) Visiting Scholar in Broadcast Management
Bob Finlayson Chair in international Finance (established in 2011)
kee-hOnG BaeBS & MS (Korea); PhD (Ohio State) Professor of Finance
erivan k. haub Chair in Business and Sustainability (established in 1993)
BRYan hUSTeD (until June 2015)BA & MBA & JD (Brigham Young); PhD (California, Berkeley)Professor of Policy / Strategy
Canada Research Chair in entrepreneurial innovation and the Public Good (established in 2014)
TheODORe J. nOSeWORThYMBA, MSc (University of Guelph); PhD (Ivey, Western)Associate Professor of Marketing, Scientific Director of the NOESIS: Innovation, Design, and Consumption Laboratory
export Development Canada Professorship in international Business (established in 2011)
LORna WRiGhTBA (Wilfrid Laurier); MA (Essex, UK); MM (Thunderbird); PhD (UWO) Associate Professor of Organization Studies and International Business, Director, Centre for Global Enterprise
CPa Ontario Chair in international entrepreneurship (established in 2011)
MORen LéVeSqUeBA & MA (Laval University); PhD (University of British Columbia)Professor of Operations Management and Information Systems
George R. Gardiner Professorship in Business ethics (established in 1992)
anDReW CRaneBSc (Warwick, UK); PhD (Nottingham, UK)Professor of Policy /Strategy Director, Centre for Excellence in Responsible Business
Chair in Business history (established in 2003)
MaTThiaS kiPPinGMA (Sorbonne, France); MPA (Harvard); Dipl. (EHESS, France); DPhil (München, Germany)Professor of Policy /Strategy
Gordon Charlton Shaw Professorship in Management Science (established in 2003)
WaDe D. COOkBSc (Mt. Allison); MSc (Queen’s); PhD (Dalhousie)Professor of Operations Management & Information Systems
CiBC Professorship in Financial Services (established in 1994)
GORDOn S. ROBeRTSBA (Oberlin College); MA & PhD (Boston College)Professor of Finance
henry J. knowles Chair in Organizational Strategy (established in 2002)
ChRiSTine OLiVeRBA (Queen’s); MBA & PhD (Toronto)Professor of Organization Studies
12 Schulich School of Business
hewlett-Packard Canada Chair in Corporate Social Responsibility (established in 2003)
DiRk MaTTenDipl.-Kfm. (Essen, Germany), Dr.rer.pol. & Dr.habil. (Düsseldorf, Germany)Professor of Policy /StrategyAssociate Dean, Research
Pierre Lassonde Chair in international Business (established in 1997)
PReeT aULakhBSc & MA (Punjab, India); PhD (Texas-Austin)Professor of Policy /Strategy and International Business
inmet Chair in Global Mining Management (established in 2013)
RiChaRD ROSSBCom (Toronto), CPA Executive in Residence, Schulich School of Business Former Chairman and Chief Executive Officer, Inmet Mining Corporation
Ron Binns Chair in entrepreneurship (established in 2010)
GeOFFReY kiSTRUCkBA (Western); MBA (McMaster); PhD (Western)Associate Professor of Entrepreneurial Studies
Jarislowsky-Dimma-Mooney Chair in Corporate Governance (joint appointment with Osgoode hall Law School) (established in 2005)
eDWaRD J. WaiTZeRLLB & LLM (Toronto) Professor of Policy /Strategy
Royal Bank Professorship in nonprofit Management & Leadership (established in 1997)
BRenDa GaineRBA Hons (Alberta); MA (Carleton); MBA (Maine); PhD (York)Associate Professor of MarketingDirector, Social Sector and Management Program
kraft Foods Canada Chair in Marketing (established in 2004) (formerly nabisco founded in 1985)
RUSSeLL BeLkBS & PhD (Minnesota)Professor of MarketingUniversity Distinguished Professor (York)
Scotiabank Chair in international Finance (established in 2013)
LiLian nG BBA (National University of Singapore); MBA (Binghamton, NY); PhD (Pennsylvania) Professor of Finance
newmont Mining Chair in Business Strategy (established in 2003)
JUSTin TanBBA (Tianjin, China); MA (Kansas); PhD (Virginia Tech)Professor of Policy /Strategy
Scotiabank Professorship in international Business (established in 1998)
anOOP MaDhOkBCom (Calcutta, India); MBA (Cincinnati); MA (John Hopkins); PhD (McGill)Professor of Strategic Management /Policy
nigel Martin Chair in Finance (established in 1996)
eLieZeR Z. PRiSManBA (Hebrew, Israel); MSc & DSc (Technion, Israel)Professor of Finance
Tanna h. Schulich Chair in Strategic Management (established in 1996)
DeZSö J. hORVáTh, CMElectrical Eng (Malmö, Sweden); MBA & PhD (Umeå, Sweden)Dean, Schulich School of Business Professor of Policy /Strategy
Ontario Research Chair in economics & Cross Cultural Studies: Public Policy and enterprise Competitiveness (established in 2005)
DOUGLaS CUMMinGBCom Hons (McGill); MA (Queen’s); JD & PhD (Toronto); CFAProfessor of Finance and Entrepreneurship
Spotlight on Research 2015 13
14 Schulich School of Business
During the fellowship year I worked on four of
my ongoing research projects. The first research
project with T. Keil, T. Laamanen and M. Maula
re-evaluates the theoretical frameworks used
to explain firms’ engagement in M&As. We
argue that decision-making in large and small
acquisitions is quite different and, as a
consequence, different theories might be
needed to explain each type. This collaboration
has resulted in multiple international conference
presentations and two journal articles, one in
Strategic Management Journal and one in Journal
of Management. An additional paper is being
revised and resubmitted to Organization Science.
The second project with my Schulich
colleague Dr. David Weitzner is aimed to address
two glaring omissions in the stakeholder
salience model. These omissions not only reduce
the framework’s predictive power, but in many
cases may also lead to wrong predictions. The
collaboration with Dr. Weitzner has resulted in
multiple international conference presentations.
Recently, the first paper of this project was
accepted to Organization Studies, and the
second paper is under second review with
Journal of Management Studies. In addition,
we are working on two chapters that we were
asked to write for The Encyclopedia of Business.
In the third project, with Deutsch Salamon,
we depart from traditional organizational
behaviour literature by adopting a signaling
perspective (Spence, 1973; Zahavi, 1975) to
offer a novel rationale as to why players may
choose to adopt seemingly irrational
behaviours. We show that by doing so, an
individual can signal credible information about
his/her otherwise unobservable superior ability.
These behaviours serve as a credible signal
because less able individuals cannot afford to
imitate this behaviour as it will expose them
to costs or risks that they cannot withstand.
This collaboration has resulted in multiple
international conference presentations and a
paper in Journal of Organizational Behaviour.
Recently, another paper was accepted for
publication as a book chapter.
The fourth project, with M. Keyhani, and
Schulich Professors Moren Lévesque and
Anoop Madhok, explores the interdependency
among entry strategy, resource allocation
strategy, and exit strategy to build theories of
entrepreneurship strategy that cover the entire
scope from entry to exit of start-ups. Its main
objective is to better understand the returns
to entrepreneurial action (entry and resource
allocation in pursuit of opportunities) in terms
of performance, survival and exit outcomes.
Recently the first paper of this project was
accepted for publication in Frontiers of
Entrepreneurship Research BCERC Proceedings.
YUVaL DeUTSCh Associate Professor of Policy & Entrepreneurial Studies
Schulich Fellowship in Research achievement
The Schulich Fellowship in Research Achievement is awarded annually to a small number of
Faculty members at the Schulich School of Business. These fellowships provide a release time from
teaching as well as funds to support research. The intention of these awards is to free up research
time, and thus enhance the holder’s research productivity.
14 Schulich School of Business
My fellowship research is grounded in models
of uncertainty management or reduction.
The Uncertainty Management Model (UMM)
proposes that when individuals feel uncertain,
they use fairness judgments to cope with their
uncertainty (Ven den Bos & Lind, 2002b).
The Uncertainty-Identity Theory (UIT)
proposes that when individuals feel uncertain,
they identify with groups to manage uncertainty
(Hogg, 2007, 2009). System Justification
Theory (Jost & Hyunady, 2005) proposes that
people who are disadvantaged by a system
sometimes still support it, especially under
conditions of uncertainty.
Kevin McKague (Schulich PhD, 2013) and
I studied rural Bangladeshi female dairy
producers’ cooperatives, organized by CARE
NGO, finding that the effect of group fairness
and relational social capital on subjective
well-being becomes stronger as intolerance of
uncertainty increases. These findings counter
the dominant model in humanitarian aid,
whereby well-being is determined primarily by
economic factors.
Sara Ruhani (BBA, 2014) and I found that
justice effects are stronger when people are
uncertain about the right or wrong thing to do.
Nikola Peric (BBA, 2015) and I expect that social
identity effects will be enhanced when
considering a moral dilemma because identity
prescribes moral and ethical behaviour. However,
justice effects will be stronger after making a
moral decision because people want to be
treated fairly for the decision and its outcomes.
This research clarifies when and how UMM or UIT
plays a role in moral reasoning and behaviour.
Art Assoiants (Psychology BA, 2015) and
I found that employees judge supervisors to be
fairer and more ethical to the extent they are
tough disciplinarians, or the employee endorses
power distance, the idea that subordinates
should accede to authority. Joyce Tan (BBA,
2015) and I followed up with Schulich BBAs
who made first impression judgments of photos
of authority figures. Ethicality was positively
related to power distance and negatively to rigid
authoritativeness, especially under conditions
of uncertainty. This research suggests that
perceptions of ethical leadership are positively
related to norm enforcement (but not rigid
authoritativeness) and system justification,
particularly under conditions of uncertainty.
ChRiS BeLLAssociate Professor of Organization Studies
My research interests broadly span both strategy
and international management. The intent of
my research, titled “Towards an action-based
perspective on firm competition”, is to address
the following question: How can the ‘ordinary’
firm, i.e. one that seems to lack specific sources
of competitive advantage, become a contender
in highly competitive markets?
As the title suggests, in this research I aim
to develop an ‘action-based’ perspective (ABP)
on competition, based on Austrian economics-
based notions of entrepreneurship, as an
alternative lens towards firm competition.
Traditional theoretical frameworks emphasize
industry position or the possession of strategic
resources as a source of competitiveness.
Scholars have begun to fault these industry-
and resource-based perspectives for their
equilibrium-oriented logic and largely static
orientation. Notably, today’s more dynamic
environment, characterized by constant
uncertainty and hyper-competition, can rapidly
render extant competitive advantages obsolete
while simultaneously creating new competitive
opportunities. In such a context, traditional
notions of competitive advantage are slowly
becoming outmoded as competitive advantage
becomes more temporary and transient.
Compared to the position and possession logics,
where strategy tends to be more systematic and
deliberate, in the ABP, with its action orientation
and corresponding focus on firm action(s),
strategy and opportunities are created and/or
enacted, for instance by spotting an opportunity
earlier and seizing it ahead of others or by
adapting in real time to environmental and
technological shifts.
In my research, I investigate the ABP logic
within the context of multinational firms from
emerging economics. Although this is my focal
context, the argument can, however, with
minor adaptations, be comfortably generalized
to newly established entrepreneurial firms.
The ABP argument allows scholars to better
understand inter-firm rivalry and dynamics in
fast-changing environments, and potentially
shifts the frame in three important ways: first,
it shifts the focus from equilibrium to
disequilibrium; second, it relaxes the assumption
that resources have to start off being valuable;
and third, it shifts the focus of competition
from the lens of firm ability to firm agility. In line
with the above, the emphasis shifts from what
a firm has to what a firm does with what it has,
i.e. its actions.
I intend to sharpen my theorizing as
well as put together some case profiles as
initial illustrative evidence, based on secondary
data of firms that reflect the ABP profile,
i.e. entrepreneurial and action-oriented.
anOOP MaDhOkProfessor of StrategyScotiabank Chair in International Business and Entrepreneurship
Spotlight on Research 2015 15
16 Schulich School of Business
My area of research generally aims at
understanding the ethical decisions and decision
process of professionals, and in particular
professional accountants. This involves different
methodologies including experimental, survey
and qualitative research techniques.
In the past year, I have made significant
progress in collaborating with my former PhD
student Jonathan Farrar (presently Assistant
Professor, Ryerson University, Toronto) in
investigating how to increase voluntary tax
compliance and mitigate tax evasion. This
stream of research combines the strengths of
Jonathan’s expertise in tax research with my
interests in ethics research and experimental
methods. Previously, we received research
funding for two projects investigating how
procedural, and more specifically interactional
fairness, influence taxpayers’ compliance.
These projects have received funding from the
CPA Schulich Alliance in 2012 and 2013.
Our first project involves investigating
how an important, previously unexplored
aspect of procedural fairness, interactional
fairness, influences taxpayers’ compliance.
Interactional fairness is taxpayers’ perceived
fairness of communications by and with the tax
authority. We have collected data and written
a preliminary paper that shows the importance
of a key aspect of interactional fairness,
information, in affecting subsequent taxpayers’
compliance. Our paper has been presented
at the Canadian Academic Accounting
Association and the European Academic
Accounting Association Conference.
For the second project, we are in the
process of developing a model of taxpayers’
whistleblowing, integrating insights from
several models of whistleblowing (Dozier &
Miceli 1985, Gundlach et al. 2003, Keil et al,
2010) and a fairness perspective. We aim to
establish that perceptions of fairness mediate
taxpayers’ propensity to whistle blow when
they encounter others’ tax evasion. This
second project extends the empirical findings
of the research on fairness and compliance to
consider how procedural fairness influences
taxpayers’ whistleblowing. We plan on using
this model as a basis for a SSHRC grant
submission in the Fall 2015. ◆
LinDa ThORneProfessor of Accounting
Schulich Fellowship in Research achievement cont’d
My current research projects focus on
behavioural finance – how the emotions of
investors and company executives affect trading
or corporate decisions. Behavioural finance is
one of the fastest growing areas of finance.
Through my own research, I am convinced of
the pervasive role of investor psychology in
affecting market valuation and corporate
decisions. This fellowship supports me in
coordinating my four ongoing research projects.
The first project, “Does Management
Earnings Guidance Benefit Shareholders?”,
supported by a SSHRC grant, empirically
tests whether an investor behavioural bias
named loss aversion helps to explain why
firms provide earnings guidance, and whether
management earnings guidance benefits
stock performance, especially in the case of
bad news earnings guidance.
The second collaborative project, “Does
Market Overvaluation Promote Corporate
Innovation?”, supported by a National Center
of Middle Market Grant, explores whether
misvaluation affects innovation input (R&D
expense) and output (measured by patents and
citations, using the newly updated NBER
patent/citation dataset). We find stock
overvaluation is associated with greater
innovative output, but this effect is much
weaker than the effect on R&D expenditure,
suggesting substantial agency costs of
overvalued equity.
In the third paper, “Rationalizing the
Irrationality: Diffusion of Misvaluation through
Economic Links”, supported by a SSHRC
Grant, my co-authors and I aim to establish
that when investors are attention-constrained,
the channel for information flows can also
facilitate the diffusion of misvaluation, using
a hand-collected sample of supplier-customer
company pairs.
In the fourth paper, “CEO Overconfidence
and Corporate Fraud”, my co-author and
I examine how CEO overconfidence affects
corporate fraud. In contrast to the literature
which documents that executives tend to
unintentionally overstate profitability, which
starts them on a “slippery slope” path to
frauds, our evidence indicates that extremely
overconfident CEOs intentionally commit fraud
that are substantially more severe than frauds
committed by non-overconfident CEOs.
MinG DOnG Associate Professor of Finance
16 Schulich School of Business
Schulich Research Day Celebration 2015
50 years of innovation, research excellence and collaboration
18 Schulich School of Business
Nearly 150 students, alumni, academics, business guests and staff attended Schulich’s second Research Day to celebrate the formidable work of faculty, post-doctoral and PhD students on January 28. A gallery in Schulich’s CIBC Marketplace showcased 27 posters highlighting research on topics ranging from “Gender Diversity and Securities Fraud” to “Accountability, Performativity, and the Ethical Self”. The celebration offered a fascinating tour of cutting-edge research with real implications for today’s business leaders. Researchers were available to elaborate on their research and answer questions.
Several of the research projects had been carried out in collaboration with researchers from other departments at York University or other universities, lending an interesting cross-discipline approach to the topics. Academic books by faculty were also available for review.
Later, a panel discussion on “Research Frontiers at Schulich: Past, Present and Future” followed a keynote speech by Professor Dirk Matten, Associate Dean,
Research, and Hewlett-Packard Chair in Corporate Social Responsibility.
This milestone event provides us with an opportunity to celebrate a half-century of achievements and our School’s transformational role as a global leader in management education, captured in the slogan ‘Business education Transformed’.”
DeZSö J. hORVáTh
Dean, Schulich School of Business
“Over the last 50 years, Schulich has established itself firmly in the top tier of global business schools through its world class education performance at all levels. Schulich faculty members have done an absolutely fabulous job to ensure that our credibility as a school is deeply rooted in world leading research contributions,” Professor Matten said.
Schulich Dean Dezsö J. Horváth outlined in the welcome message, “This milestone event provides us with an opportunity to
celebrate a half-century of achievements and our School’s transformational role as a global leader in management education, captured in the slogan ‘Business Education Transformed’. At the same time, we intend to inspire and engage the next generation of leaders and achievers”.
Associate Marketing Professor Markus Giesler, who was named “one of the most outstanding business school professors under 40 in the world,” and who co-ordinates the Marketing PhD program, moderated the panel discussion between Eileen Fischer, Professor of Marketing, Anne & Max Tanenbaum Chair in Entrepreneurship and Family Enterprise; Gareth Morgan, Distinguished Research Professor and Professor of Organization Studies; Geoffrey Kistruck, Associate Professor and Ron Binns Chair in Entrepreneurship; and Irene Henriques, Professor of Sustainability and Economics. The panelists shared memories of their years at Schulich and discussed plans to continue to transform the way management research is conducted at the school.
The CIBC Marketplace at the Schulich School of Business was abuzz during the School’s second
Research Day on January 28, 2015, an event that invited academics and practitioners from
the research community to showcase their investigative work through engaging poster exhibits.
“
Spotlight on Research 2015 19
A gallery in Schulich’s CIBC Marketplace showcased 27 posters highlighting research on topics ranging
from “Gender Diversity and Securities Fraud” to “Accountability, Performativity, and the Ethical Self”.
The celebration offered a fascinating tour of cutting-edge research with real implications for today’s
business leaders. Researchers were available to elaborate on their research and answer questions.
20 Schulich School of Business
50 150 2750 years of innovation, research excellence and collaboration
150 students, alumni, academics, business guests and staff attended Schulich’s second Research Day
A gallery in Schulich’s CIBC Marketplace showcased 27 posters on research topics
Spotlight on Research 2015 21
22 Schulich School of Business
The Dean’s Research impact awards presented at Schulich Research Day
The Schulich School of Business Dean’s Research Impact Award for Lifetime Achievement was presented to Wade Cook, Professor of Operations Management and Information Systems and Shaw Professor of Management Science. Professor Cook is an international pioneer who has made a long-term
impact on the field of Operational Research, which involves the development and application of quantitative and computer-based tools for addressing processing problems in industry, the public sector, health care, education and business. He has published an impressive volume of high-quality work in the form of journal articles, book chapters and conference proceedings (numbering about 175 articles in total, with 155 of these being journal articles), books (seven) and edited special issues of journal (four).
Professor Cook is an international pioneer who has made a long-term impact on the field of Operational Research, which involves the development and application of quantitative and computer-based tools for addressing processing problems in industry, the public sector, health care, education and business.
Professor Cook’s teaching interests cover the areas of statistics, operations research, production/operations management and inventory control. He is also the recipient of the designation of ‘University Professor’ for his significant service and leadership to York University, his longstanding impact on the University’s teaching mission, and his international recognition as a scholar.
Douglas Cumming, Professor in Finance and Entrepreneurship and Ontario Research Chair in Economics & Cross
Cultural Studies, received the Dean’s Research Impact Award for Emerging Leader. Professor Cumming was recognized for his research accomplishments, his commitment to fostering relationships in the research community and for advancing Schulich’s international reputation for research excellence. His research spans law and finance, public policy, entrepreneurial finance, venture capital, private equity, IPOs, hedge funds, exchange regulation and surveillance.
Professor Cumming has published 127 refereed articles in leading academic journals. Professor Cumming is listed among the highest ranked authors in the world on Repec and SSRN in terms of downloaded papers, journal pages and citations. He has published 13 books on venture capital, private equity, entrepreneurial finance, hedge funds, and law and finance with leading publishers that include Elsevier Science Academic
Press, Wiley Press, and Oxford University Press. His teaching ratings have consistently been very high throughout his academic career and he has been nominated for teaching awards at various institutions where he has worked.
Anton Siebert, a Schulich doctoral student visiting from Witten/Herdecke University in Germany, and Professor Markus Giesler won the Best Poster Award for “Emotional Consumption Systems and the Globalization of
Romantic Love,” which explores the market shaping of emotions.
Professor Cumming is listed among the highest ranked authors in the world on Repec and SSRn in terms of downloaded papers, journal pages and citations.
Professor Giesler specializes in the study of markets as social systems and researches how ideas and things such as products, services, experiences, technologies, brands and intellectual property acquire value over time. “While we know much about emotions as motivators and outcomes of consumption, we know little about why consumers express and manage their emotions in certain ways and not in others,” Siebert said. “Research Day has demonstrated how exciting the excellent research at Schulich is, and has inspired many new thoughts about my own work.” ◆
Professor Wade Cook receives the Dean’s Research Impact Award for Lifetime Achievement from Professor Markus Biehl, Associate Dean, Academic
From left, Professor Markus Giesler and Anton Siebert receive award for Best Poster at Schulich Research Day (see page 61)
Professor Douglas Cumming receives the Dean’s Research Impact Award for Emerging Leader from Professor Markus Biehl, Associate Dean, Academic
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Social Impact Research LabImproving the Implementation of International Poverty Solutions
Professor Geoffrey Kistruck launches new research initiative
School Children in Sri Lanka Spotlight on Research 2015 23
24 Schulich School of Business
Fifteen years ago, Professor Geoff Kistruck was working for a publicly-listed Canadian company as vice-president of corporate development. Though he enjoyed the role, he felt unfulfilled and unhappy with what he was contributing to the world. Wanting to do more, he quit his job and returned to school to finish a PhD focusing on how businesses can contribute to solving some of society’s most pressing problems. Combined with his love of international travel, this research triggered in Geoff a passion for poverty alleviation. He had found his path.
There were a limited number of studies within the management literature focused on market-based solutions to poverty alleviation, and those that existed were almost exclusively historical and case-oriented in nature.
Throughout the process of completing his PhD at the Richard Ivey School of Business, Western University, Professor Kistruck travelled extensively throughout Africa and Latin America to study how both nonprofit and for-profit organizations were using markets as a tool for social and economic development. Many projects involved establishing international supply chains between small-scale local producers and large-scale developed-country buyers. Other projects involved introducing new, low-cost products and services into impoverished communities as a means of improving their standard of living. While both of these ‘supply’ and ‘demand’ types of market-based approaches to poverty alleviation held
a great deal of potential, he quickly noticed that they were also fraught with a number of challenges.
Says Professor Kistruck: “These challenges often involved how to effectively govern market transactions in environments where formal legal institutions were weak or non-existent. At the same time, the organizations seeking to build market linkages faced a constant tension; they needed to provide enough support to impoverished communities to create new trade linkages, but they couldn’t provide so much support that the local communities became dependent upon the organization for their survival.”
In looking at the academic literature as a source of guidance for how to deal with these challenges, he quickly realized that current management theory was ill-equipped to provide adequate prescription. There were a limited number of studies within the management literature focused on market-based solutions to poverty alleviation, and those that existed were almost exclusively historical and case-oriented in nature.
In order to help redress these shortcomings, Professor Kistruck created the Social Impact Research Lab. SIRLab focuses solely on poverty-related challenges that are both practically relevant and theoretically interesting. ‘Practically relevant’ means that the focus is on real-time problems that are currently keeping managers awake at night. ‘Theoretically interesting’ means that the practical problem also represents a gap within current academic literature, and thus provides an opportunity to extend theories of organization more generally.
in order to help redress these shortcomings, Professor kistruck created the Social impact Research Lab (SiRiLab).
For each project that SIRlab undertakes, Professor Kistruck forms a research team that consists of at least one senior scholar and one junior scholar from a developed-country context, one local scholar from a developing country context, and a representative from the poverty-focused organization. The team then spends approximately two weeks within the field interviewing organizational staff, community members, and other relevant stakeholders to gain multiple perspectives on the business problem. These field insights are then combined with current academic theory to help design a potential solution, and an implementation plan for the field experiment, or ‘pilot’, is created. Baseline measures are collected and the study participants are randomly assigned to either a ‘treatment’ or a ‘control’ group – the treatment group will experiment with the proposed solution, while the control group will continue to operate using the status quo. Upon completion of a pre-defined treatment period, post-hoc measures are collected and the quantitative data is analyzed. “The team also returns to the field to conduct follow-up interviews to gain greater insight into the findings of the experiment. The final output of the study consists of both a practitioner report to the poverty-focused organization, as well as a manuscript to be submitted for academic publication,” he adds.
Geoffrey Kistruck joined the Schulich School of Business two years ago as Associate Professor
and Ron Binns Chair in Entrepreneurship. Coinciding with his arrival, he launched a new research
initiative called the Social Impact Research Lab (SIRlab). SIRlab designs and tests solutions
to management challenges faced by organizations that are working to alleviate poverty in
an international context.
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In its first year, SIRlab undertook two research projects. The first was in Guatemala. SIRlab worked in partnership with a social enterprise that was attempting to distribute socially-valuable products (e.g., eye glasses, water purifiers, etc.) into rural markets. The second project took place in Sri Lanka in partnership with a nonprofit organization that was attempting to create a greater sense of community ownership over newly constructed school buildings. In both instances, SIRlab was successful in helping the organizations come up with a solution to their practical problem. Both projects also resulted in a significant contribution to theory, with both studies being accepted for publication in the Academy of Management Journal, and one study receiving the prestigious Carolyn Dexter Award at the 2014 Academy of Management annual meeting.
In its second year, SIRlab elected to narrow its geographic focus, while at the same time expanding the number of research projects undertaken simultaneously. Ghana was selected as the country of focus, and Professor Kistruck, along with a small research team, set off on an exploratory trip in early 2014. “The purpose of the trip was to meet with a number of different organizations involved in poverty-alleviation projects within the country, and to assess their level of interest in partnering with SIRlab. In the end, we selected five organizations as collaborators who were facing a number of different challenges such as mitigating conflict in newly formed producer cooperatives, improving the psychometric screening for an entrepreneurship business plan competition, and designing salesperson training for distributing a nutritional product. I also felt it was important to bring together members from all the research teams to build the trust in each other and to introduce them to the SIRlab process,” he notes.
Year 1
Year 2 Ghanaian Women in a Cooperative Meeting
Schulich Research Team with a construction committee in Sri Lanka Children in Guatemala
Woman working in Guatemala
Children in Ghana
Research Trip in Ghana
Spotlight on Research 2015 25
26 Schulich School of Business
Social Impact Research Lab Workshop at Schulich – November 2014
26 Schulich School of Business
With a Connections Grant from the Social Sciences and Humanities Research Council of Canada, and
with the support of matching funds on the part of Schulich Dean Dezsö J. Horváth, Professor Kistruck
began the process of planning a three-day workshop in Toronto. This event took place in November,
2014 at the Schulich School of Business.
In attendance were representatives of the poverty-focused organizations from Ghana (i.e., CARE, Technoserve, Canadian Cooperative Association), scholars from Ghanaian Business Schools (i.e., Ghana Institute of Management and Public Administration, Kwame Nkrumah University of Science and Technology, University of Ghana), and junior and senior-level scholars from developed-country institutions (i.e., The Ohio State University, Texas A&M, University of Toronto). Also attending was a representative of the organization that SIRlab had worked with previously in Sri Lanka, so the workshop participants could hear, first-hand, what to expect in their upcoming research projects.
“The outcome of this workshop has high potential to generate and pave the way for other exciting and meaningful research projects that can benefit both the academic and practitioner communities around the world,” says Christine Oliver, Schulich Professor of Organization Studies and Henry J. Knowles Chair in Organizational Strategy.
Professor Kistruck considers SIRlab’s Ghana workshop a success on multiple fronts: “First, it set the expectations on the part of both scholars and practitioners for the long research journey to come.
Second, it allowed practitioners and scholars to develop a common understanding of each other’s lexicons to improve communication as the projects developed. Finally, and perhaps most importantly, it allowed practitioners to see, first-hand, that the scholars in attendance had a sincere desire to help. Unfortunately, many poverty-focused organizations are not satisfied with academic partnerships – they have begun to see them as a ‘one-way street’ in which scholars gather copious amounts of information, but give very little back to the organizations in return. This workshop built up the trust that would be essential in the work to come by allowing practitioners to see the mutual benefit in the action-research approach of SIRlab.”
The outcome of this workshop has high potential to generate and pave the way for other exciting and meaningful research projects that can benefit both the academic and practitioner communities around the world.”
ChRiSTine OLiVeR Schulich Professor of Organization Studies and Henry J. Knowles Chair in Organizational Strategy
Since November 2014, there have been multiple visits by members of the research teams to Ghana, and many of the field experiments are currently being launched. “For example, one field experiment will examine whether ‘promotion-focused’ or ‘prevention-focused’ approaches to conflict management are most effective. Another experiment will look at whether centralized or decentralized leadership structures are better suited to cooperative governance. Some of the experiments will conclude by the end of 2015, while others will continue into 2016 to determine longer-term outcomes,” says Professor Kistruck.
What’s next for SIRlab? The initiative intends to expand into Peru in 2016, and then Tanzania in 2017. To help fund this expansion, Professor Kistruck has recently received a Partnership Development Grant from the Social Sciences and Humanities Research Council of Canada. What has amazed him the most is the enthusiasm for the SIRlab approach that he has encountered from the Schulich research community, and from scholars and practitioners around the world. He hopes to leverage this enthusiasm to develop SIRlab into one of the world’s leading research institutes in the poverty alleviation field. ◆
GeOFFReY kiSTRUCk
Professor Geoff Kistruck’s work has been published in journals such as the Academy of Management
Journal, Journal of Business Venturing, Entrepreneurship Theory & Practice, Journal of Management
Studies, Journal of Management, Journal of Operations Management, and Strategic Entrepreneurship
Journal, and he currently sits on the editorial boards of the Academy of Management Journal,
and Journal of Management. He has recently started a three-year term as an Editor for Entrepreneurship
Theory & Practice, a leading scholarly journal in the field of Entrepreneurship studies and the official
journal of the United States Association for Small Business and Entrepreneurship (USASBE).
“
Spotlight on Research 2015 27
28 Schulich School of Business
Schulich Gains New CanadaResearch Chair in Entrepreneurial Innovation and the Public Good
Theodore J. Noseworthy – Canada Research Chair
28 Schulich School of Business 28 Schulich School of Business
The Chairholder aims to achieve research excellence and improves our depth of knowledge and quality of life, strengthens Canada’s international competitiveness, and helps train the next generation of highly skilled people through student supervision, teaching, and the coordination of other researchers’ work.
Dr. Noseworthy, an Associate Professor in Marketing at Schulich, is leading a research program to advance our understanding of how consumers respond to innovation. His goal is to develop theory while informing business and policy makers about the benefits of properly communicated innovation and the potential costs to susceptible consumers and society. His research project encompasses three branches that collectively examine how marketers can better communicate disruptive innovation, how consumers may be susceptible to certain food innovations, and how behaviours alter with monetary innovations. This research program is designed to help combat Canada’s innovation deficit by helping the private sector transfer knowledge into commercialized products and services to grow the economy.
Professor Noseworthy has been awarded a sole-applicant SSHRC insight grant to explore how innovative ambiguous foods (e.g., calcium-enriched ice cream sandwiches) can cause people to over-consume by confusing category membership. He hopes to increase public awareness about the role that foodmarketing plays in obscuring the health costs of certain food products, and to inform policy-makers about how food ambiguity shapes consumer choice. Similarly, one of his more recent publications, which was published in the Journal of Consumer Research, was sparked by the Government of Canada’s adoption of polymer currency. The project explored how peoples’ spending behaviour differs based on the visual appearance of banknotes. The study was
picked up by over 1,600 newsfeeds around the globe. Some notable mentions were in the Financial Times, Forbes, The Smithsonian, Bloomberg, The Wall Street Journal, and Time Magazine, as well as a host of Canadian outlets such as the Toronto Sun, Global News and the CBC.
There are few researchers at the same stage in their careers with this level of productivity and international coverage. Furthermore, there are even fewer who can boast of multiple publications in the Financial Times list of the top 45 business journals in the world.
The Canadian Council for the Advancement of Education (CCAE) awarded this research the silver medal for best English news release. The work led to connections with the US Federal Reserve, and led to speaking invitations at leading academic institutions (e.g., Kellogg at Northwestern). This research represents one of the newest extensions of Professor Noseworthy’s work, which focuses on the unforeseen impacts of currency innovation.
Furthermore, in recognition of his already impressive accomplishments, Professor Noseworthy has been awarded a sole-applicant institutional infrastructure grant from the Canadian Foundation for Innovation (CFI) to build the NOESIS: Innovation, Design, and Consumption Laboratory, a world-class behavioural lab to extend his primary research programs. The NOESIS lab is designed to foster innovative research into consumption, consumer behaviour, and design. He has developed this lab with the specific intent of conducting high-quality research, training personnel, and facilitating knowledge mobilization.
There are few researchers at the same stage in their careers with this level of productivity and international coverage. Furthermore, there are even fewer who can boast of multiple publications in the Financial Times list of the top 45 business journals in the world. While only three years removed from his PhD, Professor Noseworthy currently has 11 publications in these journals. To put this in a Canadian context, there is not an existing CRC-II this young in his or her career that can match this record of quality.
Spotlight on Research 2015 29
Schulich School of Business welcomes the appointment of Dr. Theodore Noseworthy as its new
Canada Research Chair (CRC) in Entrepreneurial Innovation and the Public Good. The Canada
Research Chairs Program (CRCP) stands at the centre of a national strategy to make Canada one of
the world’s top countries in research and development, and attracts some of the world’s most
accomplished and promising minds.
Spotlight on Research 2015 29
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12 questions with Theodore J. noseworthy
Earlier this year, the Schulich Research Office sat down with Professor Noseworthy and asked him some insights from his work and his vision for his new position at the School.
1 What pedagogical changes do you see on the horizon in your discipline through your research?
Although it’s hard to speak for my discipline, I can say that much of my research on innovation, and in particular on the role of creativity, has led me to alter the way I approach my teaching. I see a growing need to foster entrepreneurship. This requires training that incorporates calculated ambiguity (i.e., less structure) while facilitating an unthreatening environment that embraces failure, as opposed to stigmatizing it. I see more cross-functional learning, with a hands-on project-oriented curriculum. My MKTG 6440 “New Products” is the culmination of these efforts.
2 how do you engage students in research, and more specifically, what are your training strategies?
My approach to training resembles an apprenticeship model (probably from my career as a chef). I start by bringing a student onto a developed project, and expose them to the review process. We then get more technical around methodologies and the crafting of logical arguments. As we move further in our relationship, the student becomes more of a colleague and starts to drive their own projects. I then assume the role of a coach and critic. The goal is to develop their confidence along with their capabilities.
3 if you had a chance to talk to our Prime Minister, what would you say?
I’ve met Prime Minister Harper very briefly during the 2015 pop-up research park at Parliament Hill. We never spoke of anything of particular note, but if I could sit down with him I would share some thoughts on Canada’s Innovation deficit, and on rethinking how we approach and foster innovation in post-secondary business education.
4 how do you motivate your existing students to pursue their career as an academic researcher?
It’s usually not hard to motivate students who have that natural tendency to ask “why” or to question conventional wisdom. I find it helps to put academia in perspective. I convey that our job is to inspire leaders, while researching pressing issues in a field of our choosing. If we’re lucky, we may do something to better society. If we’re really lucky, our legacy will be in our students who do something to better society. The greatest motivator, however, is showing a student how research works. This undoubtedly sparks the curiosity of anyone who has ever felt naturally inquisitive about the world around them.
5 Given your reputation as a high-quality researcher, what ordinary interests do you have
that might surprise people?
It may or may not be surprising, given my background as a chef and my interest in category ambiguity, that I enjoy fusion cooking (combining different styles of cuisine from around the world). My wife and I do a lot of entertaining. I’m also a big basketball fan, and I regularly play basketball with members of the NOESIS lab. I also thoroughly enjoy working out, but it gets hard to keep up my routine with three kids and my research.
6 What academic breakthrough or advance would you like to see in your lifetime?
In my specific area of innovation, I am fascinated by artificial intelligence and creating a platform of self-awareness that mirrors human consciousness. It may sound like science fiction, but I’d like to see research that takes machine learning to a level where a computer can mirror episodic thought, and thus begin to situate itself in its surrounding environment and anticipate the
environment’s response to it. Not to get too nerdy, but language and episodic projection may hold the key to synthesized consciousness. Once that happens, your Apple watch may be wearing you.
7 have you ever had a great idea but been told that you could not implement it? how did you react?
What did you do?
Tough question. Sure, I’ve been told, like many young scholars, that certain research questions shouldn’t be attempted or certain schools of thought should never be challenged. This is frankly one of the biggest problems with PhD training or advice to junior scholars. I didn’t react too well to this advice. Instead, I made a point in the majority of my work to challenge existing conventions. It’s my view that, as academics, we signed up for this – theories are meant to be tested! That said, I can’t say this philosophy always yields success. It can make for a challenging, but ultimately rewarding career.
8 What are one or two of your proudest professional accomplishments?
One of my proudest accomplishments as an academic is undoubtedly being acknowledged by York University, as well as my peers, as a Canada Research Chair. As for my second proudest accomplishment, I’d have to say it’s a tie. The first, which I didn’t appreciate until much later, was landing tenure right out of my PhD. My second, was having one of my first graduate students hit a top publication. It made me remember how that felt. We academics lose that feeling over time and it just becomes “the job.” I remember what it’s like to do the fist-pumps in the air and yell a primal scream of joy… err relief.
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9 You found in one of your research projects that “peoples’ spending behaviour differs based on the
visual appearance of banknotes” – can you talk a bit more about that?
Yes, it’s true. If I gave you a worn-looking $20 bill you’d be more likely to spend it than if I gave you a crisp-looking $20 bill. Much of this has to do with the normative belief that money is dirty, and thus people infer that a bill that looks worn must have been handled more than a bill that looks brand new. The importance of this is that people then place values on the bills that differ from the nominal (i.e., face value) of the bills. Obviously there’s a bit more to it than this, particularly with the experimental design and the intuitive explanations we controlled for, but that’s basically the gist of it. This isn’t too surprising when we think about our own everyday experiences. If Grandma gives you a crisp and clean $50 bill for your birthday, you’re not going to go buy a case of beer (assuming you have such a proclivity), you’re going to go buy something more worthy of Grandma’s approval. It’s in this respect that money can maintain an essence from those who have previously touched it. The reason these findings are important is because they suggest that money isn’t as fungible as we might think. In the same way that diamonds, art, and real estate are not suitable as money, bills too may carry subjective assessments of value.
10 Would you like to tell us how to guard against several well-known biases that can
lead to overconsumption?
That’s a complicated question given the number of biases. Much of it comes down to awareness, a healthy skepticism, and understanding that there’s no silver bullet, despite marketing claims to the contrary. There’s a natural asymmetry in consumption whereby the marketer is often privy to more information than the consumer, and thus, where the consumer is passively engaged as a recipient of the marketing message, the marketer is actively engaged in tactics of persuasion. This can manifest in numerous biases. For example, one of the most noteworthy is the fallacy of regression following claims that force a baseline response. What this means is watch out for those used carsalesmen claims like “have you tried every doctor prescribed remedy out there with no results? Well now you’re in luck.” The baseline is that they catch you at your worst when you’ve exhausted all options. Thus, after you try this magic remedy you will undoubtedly regress back to a natural state (i.e., even the terminally ill do not feel awful every second of the day… there’s variance in everything). We tend to misconstrue variance as causality, and thus any perceived relief from our baseline state ends up being misconstrued as a validation of the product’s efficacy. Marketers push these baselines in anything from amber teething rings for children to alternative medicines based on pseudo-science. It’s a real conundrum because people truly want to believe in magic, and marketers are very good at facilitating this desire.
11 how can food innovations have serious consequences to our health?
When given a choice of snacks that are branded ‘healthy’, it seems like a no-brainer to reach for that granola bar. And why not? After all, it tastes pretty darn good, and it’s healthy, right? Well, not really. Ignoring the fact that many granola bars have the equivalent caloric content as a Kit Kat bar, there’s another consequence whereby people will
consume more than they normally would under the belief they are engaging in something healthy. The reality of many food innovations is not to improve health, but to mitigate unhealthiness. The two are not equivalent. Something that makes you healthy should indeed scale. That is, if something makes you strong, then eating more of it should make you stronger (ignoring the “too much of a good thing” argument for a second). Conversely, if something makes you fat then eating more will make you fatter. The problem comes with “health” innovation that makes you “less fat.” What do people do? We treat these “health” products as if they will make us healthy – we treat them as if they scale. Thus, we consume more, offsetting the purpose of the innovation. This problem is compounded when we try to fortify foods that are traditionally considered junk. We do nothing to negate the negative aspect of the food. Instead, we augment them with positive aspects. The two do not cancel out, but consumption increases leaving many to consume more calories than they normally would. A similar phenomenon is occurring with packaging innovation, whereby inflation is manifesting in smaller package sizes because consumers are more sensitive to price increases. Marketers are taking the opportunity to position these new offerings as healthy, when in fact it’s nothing more than price inflation masquerading as portion control. The consequence? Exactly as above… people end up consuming multiple portions after categorizing the product as “healthy,” and in some cases they exceed the caloric content of the natural, unmodified counterpart.
12 The Schulich School of Business takes pride in close-knit ties to its alumni community. how could
your research engage our alumni?
My research speaks to how marketers can better communicate product and service innovations to maximize adoption and awareness. In this respect, I believe alumni engaged in anything from product design, innovation, R&D, or even product positioning could benefit. ◆
12 questions with Theodore J. noseworthy
Spotlight on Research 2015 31
Schulich Marketing Chair Russell W. Belk Received Title of Distinguished Research Professor
Recognition of outstanding contributions through research
32 Schulich School of Business
Professor Russell Belk is the Kraft Foods Canada Chair in Marketing at the Schulich School of Business, a position he has held since 2006. His research involves the meanings of possessions, collecting, gift-giving, sharing and materialism and his work is often cultural, visual, qualitative and interpretive.
Professor Belk has sustained an unprecedented degree of productivity over the course of his academic and research career, now spanning about four decades. The sheer number of published journal articles, books, book chapters, and conference proceedings that Professor Belk has authored or co-authored is astronomical. The majority of his articles have appeared in top tier journals and they have garnered numerous awards and accolades. Professor Belk’s research has been cited more than 28,000 times (Google Scholar),
placing him among the most cited Canadian business school academics. His 118-page curriculum vitae lists over 550 publications and numerous books that he has co-authored and edited. They include Consumer Culture Theory: Research in Consumer Behavior (2014); Russell Belk, Sage Legends in Consumer Behavior, 10-volumes (2014); Qualitative Consumer and Marketing Research (2013); Routledge Companion to Digital Consumption (2013), and The Routledge Companion to Identity and Consumption (2013). His groundbreaking paper, “Possessions and the Extended Self”, published in the Journal of Consumer Research in 1988, dramatically reshaped how people think about consumer identity. It is the most cited article in the 40-year history of the journal.
Widely considered by academics around the world to be “the father of
qualitative marketing research”, Professor Belk was presented with the Schulich School of Business’s inaugural Dean’s Research Impact Award in January 2013. The award recognizes faculty members who have demonstrated excellence in research and whose work has had a major impact on management education.
Professor Belk has sustained an unprecedented degree of productivity over the course of his academic and research career, now spanning about four decades.
“Professor Belk has produced an extraordinary volume of top-calibre research of the sort that keeps Schulich among the world’s leading business schools in management research,” said Dean Dezsö J. Horváth.
York University honored Schulich School of Business Professor Russell W. Belk with the title of
Distinguished Research Professor at Spring Convocation in June 2014. The title is given to active
faculty members in recognition of their outstanding contributions to the University through research.
A Distinguished Research Professorship is awarded for life and evolves into a Distinguished
Research Professor Emeritus upon retirement.
(Opposite page, L to R) Gregory Sorbara, Chancellor of York University, Russell Belk and Mamdouh Shoukri, President and Vice-Chancellor of York University; (Pictured above) Robert V. Kozinets, Professor of Marketing at Schulich, and Russell Belk
Spotlight on Research 2015 33
34 Schulich School of Business
Dezsö J. Horváth, Dean of the Schulich School of Business, presents Russell Belk with the inaugural Dean’s Research Impact Award in 2013
PROFeSSOR BeLk’S aWaRDS
2013 2012 2011 2010 2009 2006
Inaugural recipient of Dean’s Research Impact Award, Schulich School of Business, York University
Society of Marketing Advances Distinguished Marketing Scholar Award
Emerald 2012 Award for Excellence ‘Highly Commended Paper’
Best Professor in Marketing, World Education Congress
Sidney Levy Award Runner-up with Gülnur Tumbat
Universidad de los Andes School of Management Corona Chair, Distinguished Visitor’s Program
Sidney Levy Award Runner-up with Xin Zhao
Distinguished Visiting Scholar, Hong Kong University(Years Awarded: 2007 –2009)
People’s Choice Award, Asia-Pacific Association for Consumer Research Film Festival
Professor Belk has also received the prestigious Paul D. Converse Award for outstanding contributions to marketing scholarship, the Sheth Foundation / Journal of Consumer Research Award for Long Term Contribution to Consumer Research, the Society of Marketing Advances 2013 Distinguished Marketing Scholar Award, two Fulbright Fellowships and honorary professorships on four continents.
Over his career, Professor Belk has been awarded thousands of dollars in research funding from both the private and public sectors. After receiving an impressive three-year grant of approximately $195,000 from SSHRC in 2013, he recently received another SSHRC grant, with regards to ‘Psychological Drivers of the Discrepancy between Traditional and Touchscreen Equipment,’ along with Ying Zhu.
Over his career, Professor Belk has been awarded thousands of dollars in research funding from both the private and public sectors. after receiving an impressive three-year grant of approximately $195,000 from SShRC in 2013, he recently received another SShRC grant, with regards to ‘Psychological Drivers of the Discrepancy between Traditional and Touchscreen equipment,’ along with Ying Zhu.
He is the past president of the Association for Consumer Research and the International Association of Marketing and Development. He is a fellow in the Association for Consumer Research
and the American Psychological Association, as well as the co-founder of the Association for Consumer Research Film Festival. He served as the director of the Consumer Culture Theory Consortium. In addition, for countless years, Professor Belk has been involved in many editorial roles. For instance, he sits on the advisory board for the Journal of China Marketing, Journal of Islamic Marketing, Applied Economics Research Bulletin, Behavioral Marketing Abstracts, among many others. He also sits on the editorial boards for a number of journals, including Annals of Social Responsibility, International Journal of Business Anthropology, Journal of Marketing in Emerging Economies, and Journal of History Research in Marketing.
Professor Belk is a phenomenal educator. He received the Best Professor in
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2005 2004 2003 2001 2000 1998
Sheth Foundation/Journal of Consumer Research Award for Long Term Contribution to Consumer Research
Paul D. Converse Award, American Marketing Association
Honorary Professor, Centrum fr konsumentventskap (Center for Consumer Science) Gteborg University, Gteborg, Sweden(Years Awarded: 2003 –2006)
Reviewer of the Year, Journal of Advertising
Best Reviewer, Journal of Consumer Research(Years Awarded: 2000, 2002 –2003)
Honorary Professor, Hong Kong City University(Years Awarded: 1998–2007)
Kinear Best Paper Award Nominee, Journal of Public Policy and Marketing(Years Awarded: 1998–2000)
Foundation Visiting Research Professor(Years Awarded: 1995 –2001)
1995
Marketing award by the World Education Congress in 2012. He has taught a variety of courses in the marketing field at both the graduate and undergraduate levels. He has played significant roles with the supervision of many graduate students. He has been a visiting scholar at Hong Kong University. He has also been a visiting professor at the University of Exeter, England; Auckland University of Technology, New Zealand; Lancaster University Management School, England; Davidson Institute, University of Michigan, USA; and University of British Columbia, Canada.
Over the course of his long career, Professor Belk has been instrumental in helping to advance the career of countless others. He has also invited people from schools around the world to co-edit books with him or to co-author
papers. A number of young scholars have benefited in this way from his generous spirit of intellectual adventure and engagement.
hiring Professor Belk in 2006 was a ‘coup’ for our department, but having him as a colleague has exceeded my expectations in every way. he is not just a celebrity scholar who increases our reputation, but a solid citizen in terms of teaching and service, willing to do what is needed and to go beyond the call of duty.”
eiLeen FiSCheR Schulich Professor of Marketing and Anne & Max Tanenbaum Chair in Entrepreneurship and Family Enterprise
“If he sees someone with a bright mind, he is ‘blind’ to their institutional affiliation; he finds a way of working with them and in doing so he invariably helps integrate them into a broader network of scholars, and advance their publication records,” said Eileen Fischer, Schulich’s Professor of Marketing, Anne & Max Tanenbaum Chair in Entrepreneurship and Family Enterprise and the Director of PhD Program. “Hiring Professor Belk in 2006 was a ‘coup’ for our department, but having him as a colleague has exceeded my expectations in every way. He is not just a celebrity scholar who increases our reputation, but a solid citizen in terms of teaching and service, willing to do what is needed and to go beyond the call of duty.” ◆
4 DecadesOF ACADEMIC & RESEARCH PRODUCTIVITY
Professor Belk, the ‘Father of Qualitative marketing research’, has made a significant impact in the field of research
$195,0003 YEAR GRANT FROM SSHRC IN 2013
28,000CITATIONS (Google Scholar)
550+PUBLICATIONS
“
Spotlight on Research 2015 35
36 Schulich School of Business
From Top-Tier Pub to TEDx Talk and BackReaping the Benefits of Integrated Scholarship
With Dr. Markus Giesler, Associate Professor of Marketing
36 Schulich School of Business
How is scholarship changing in today’s world?
I think there are two basic approaches and also an infinite amount of possible combinations between these two: the classic differentiated approach and a more recent integrated approach. In the classic approach, researchers look at their work like independent art directors look at their movies – something that inspires and transforms you and your tribe members but not many others beyond that. That’s where the second model begins. In a world where 13-year-olds reshape entire industries only by using their Twitter and Instagram accounts, some researchers are asking why we do so little to allow other researchers, managers, policy makers, journalists, and the broader public to benefit from our work? So the goal in the integrated approach is to assemble larger institutional webs through a range of strategic devices from research studies and white papers to videos, blog posts, media interviews, industry partnerships, TED talks, and even tweets. Both models seem legitimate. But I personally lean more towards the latter.
Do you see this as being part of a larger trend in scholarship?
The fact that funding agencies such as the Social Sciences and Humanities Research Council of Canada are expecting us now to provide strong evidence of our ability as researchers to advance the interests and agendas of multiple stakeholders suggests that our definitions of excellence in scholarship may be dramatically changing. At the same time, taxpayers, politicians, students, and CEOs are asking why should we invest in your institution in exchange for knowledge that remains largely inaccessible to us? In the past, high numbers and quality of publications were enough. Now our stakeholders are asking more and more for concrete evidence that your research also informs and inspires boardrooms, classrooms, courtrooms, chat rooms, newsrooms, and even living rooms.
More than ever before scholarship is a team effort. and our flexible culture at Schulich enables this nicely.
It has been argued that this new logic puts a lot of pressure on researchers. What has your experience been in terms of time investment?
It certainly requires researchers to adopt a number of new roles and responsibilities. We are expected to be faster and more entrepreneurial, flexible, and tech-savvy. But I would also say that it depends a lot on your institutional environment. Ninety-nine percent of my research time goes into theory building. This entails the usual scholarly practices and processes such as designing studies, collecting data, writing papers, writing revision notes, etc. Everything else happens on the side. And Schulich is an excellent place for doing this efficiently. For example, my Huffington Post blog reaches over half a million monthly readers. But it only takes about an hour per week to manage. I usually write the post on the subway up to Schulich and by the time I reach campus, it’s online. I wouldn’t be able to do any of this without the technological infrastructure we have at Schulich as well as the support from our IT director Mark Orlan, Beth Marlin in our media department, our Research Officer Dr. Farhana Islam and my esteemed Schulich research colleagues have been equally supportive.
Photos courtesy of: TEDxYorku
As our society is changing at a rapid pace, so too are our definitions of research excellence.
To explore where this may take us both individually and as a research institution, we sat down
with Dr. Markus Giesler, Associate Professor of Marketing at the Schulich School of Business.
Spotlight on Research 2015 37
38 Schulich School of Business
Let’s talk about one of your recent initiatives. What was your TEDx talk all about?
TED is one of these knowledge communities where people of various stripe are looking for ideas and inspiration. It has an enormous reach and it is organized as a global franchise. Thanks to the leadership of Ross McMillan, a very engaged Assistant Director, YorkU Student Community, we have our own TEDx YorkU event. Ross and his team helped me translate my research into the TED language. In the final version, I used bird feeding as an accessible metaphor to demonstrate that market creation success is not merely about creating a powerful innovation or understanding consumer behaviour but about harmonizing the interests of multiple actors and elements. It’s an act of network building. That’s the central premise behind market system dynamics and design, the marketing subfield that I’ve created: marketers who look at and shape markets as social systems can be more successful than those who only think about birds and breadcrumbs.
The TeDx speaker group has begun to work together on a number of projects that add value to our schools and to the university at large such as paper collaborations, research fairs, and university marketing initiatives.
What concrete benefits did the talk generate?
Thus far, it has generated research-related awareness, interest, desire, and action. At this point, it has had more than 37,000 views and it has been shared by fellow researchers and researchers in other fields, media journalists, industry players, and policy makers at the United Nations and at the World Economic Forum in Davos. This reach has led to a solid increase in number of article downloads and Google Scholar citations as well as invitations for more talks. In addition, it has helped drive corporate donations for the Big Design Lab, a new bridge between marketing research and practice that our recent Schulich hire Ela Veresiu and I are currently institutionalizing.
On the local level, it has helped integrate Schulich research with the interests and agendas of the larger YorkU community. The TEDx speaker group has begun to work together on a number of projects that add value to our schools and to the university at large such as paper collaborations, research fairs, and university marketing initiatives. As well, the talk is helping us attract new students. Just the other day, I received an email from one of our incoming MBA students who wrote that the talk had played a key role in his decision to join Schulich this coming fall. This alone made it worthwhile. ◆
Photos courtesy of: TEDxYorku38 Schulich School of Business
Consumer Culture Theory: Research in Consumer Behavior
Edited by: Russell W. Belk, Diane Martin, and John Schouten
Hardcover: 350 pagesPublisher: Emerald Group Publishing LimitedPublication Date: 2014ISBN-10: 1784411582ISBN-13: 978 -1784411589
Legends in Consumer Behavior
By: Russell W. Belk and Jagdish N. Sheth
Hardcover: 3782 pagesPublisher: Sage PublicationsPublication Date: 2014ISBN-10: 8132113179ISBN-13: 978-8132113171
Data envelopment analysis: a handbook on Modelling of internal Structures and networks
By: Wade D. Cook and Joe Zhu
Hardcover: 599 pagesPublisher: Springer SciencePublication Date: 2014ISBN-10: 1489980679ISBN-13: 978 -1489980670
Developments in Chinese entrepreneurship: key issues and Challenges
Edited By: D.J. Cumming, M. Firth, W. Hou and E. Lee
Hardcover: 228 pagesPublisher: Palgrave MacMillanPublication Date: 2015ISBN-10: 1137412496ISBN-13: 978 -1137412492
Social Partnerships and Responsible Business: a Research handbook
Edited by: May M. Seitanidi and Andrew Crane
Hardcover: 432 pagesPublisher: RoutledgePublication Date: 2014ISBN-10: 0415678633ISBN-13: 978-0415678636
Complex Democracy: Varieties, Crises, and Transformations
Edited by: V. Schneider and B. Eberlein
Hardcover: 291 pagesPublisher: Springer International PublishingPublication Date: 2015ISBN-10: 331915849XISBN-13: 978 -3319158495
Books
The Research Office takes pride in presenting the accomplishments of our faculty members in
the form of books and journal articles. Schulich researchers are conducting top-calibre research and
have achieved recognition for business education and scholarship on the international stage.
40 Schulich School of Business
king William’s Tontine: Why the Retirement annuity of the Future Should Resemble its Past
By: Moshe A. Milevsky
Hardcover: 257 pagesPublisher: Cambridge University PressPublication Date: 2015ISBN-10: 1107076129ISBN-13: 978 -1107076129
Bridging the Values Gap: how authentic Organizations Bring Values to Life
By: Ellen R. Auster and Ed Freeman
Hardcover: 256 pagesPublisher: Berrett-KoehlerPublication Date: 2015ISBN-10: 1609949560ISBN-13: 978 -1609949563
Sustainable entrepreneurship in China: ethics, Corporate Governance, and institutional Reforms
Edited by: D.J. Cumming, M. Firth, W. Hou and E. Lee
Hardcover: 208 pagesPublisher: Palgrave MacMillanPublication Date: Forthcoming 2015ISBN-10: 1137412492ISBN-13: 978 -1137412522
Pensionize™ Your nest egg: how to Use Product allocation to Create a Guaranteed income for Life
By: Moshe A. Milevsky and Alexandra C. MacQueen
Hardcover: 256 pagesPublisher: John Wiley & Sons;
Revised U.S. & International editionPublication Date: 2015ISBN-10: 1119025257ISBN-13: 978 -1119025252
FORThCOMinG
Business ethics – Managing Corporate Citizenship and Sustainability in the age of Globalization (Forth edition)
By: Andrew Crane and Dirk Matten
Publisher: Oxford: Oxford University PressPublication Date: Forthcoming 2015
Strategic Management: Creating Competitive advantages (4th edition)
By: Gregory Dess, G.T. (Tom) Lumpkin, Alan Eisner, Gerry McNamara, Theodore Peridis, and David Weitzner
Publisher: McGraw-Hill RyersonPublication Date: Forthcoming 2015
Sage handbook of institutional Theory
By: Royston Greenwood, Christine Oliver, Thomas Lawrence, and Renate Meyer
Publisher: Sage Publications Publication Date: Forthcoming 2015
Stragility: Strategic, agile, People-Powered Change
By: Ellen R. Auster and Lisa Hillenbrand
Publisher: University of Toronto /Rotman Press Publication Date: Forthcoming 2016
authorities on Management: Business Schools, Consultants, Media
By: Lars Engwall, Matthias Kipping and Behlül Üsdiken
Publisher: RoutledgePublication Date: Forthcoming 2016
Review of Marketing Research: Vol. 14: qualitative Marketing Research
Edited By: Russell W. Belk, Jeff Murray and Anastasia Thyroff
Publisher: Emerald Publication Date: Forthcoming
entrepreneurship in China: key issues and Challenges
By: D.J. Cumming, A. Guariglia, W. Hou and E. Lee
Publisher: Palgrave MacMillanPublication Date: Forthcoming 2015
experiences and Challenges in the Development of the Chinese Capital Market
By: D.J. Cumming, A. Guariglia, W. Hou and E. Lee
Publisher: Palgrave MacMillan Publication Date: Forthcoming 2015
Spotlight on Research 2015 41
42 Schulich School of Business
Adams, Jean (2014), “Practical Advice for Developing, Designing and Delivering Soft Skills Programs,” The IUP Journal of Soft Skills, 8(2), 7-20.
Aulakh, Preet (2014), “Practice Standardization in Cross-Border Activities of Multinational Corporations: A Resource Dependence Perspective,” Management International Review, 54(5), 707-734. (with Marshall S. Jiang, Xia Jun, and Sali Li)
Aulakh, Preet (2015), “Accumulative and Assimilative Learning, Institutional Infrastructure and Innovation Orientation of Developing Economy Firms,” Global Strategy Journal, 5(2), 133-153. (with Raveendra Chittoor and Sougata Ray)
Aulakh, Preet (2015), “What Drives Overseas Acquisitions by Indian Firms? A Behavioral Risk-Taking Perspective,” Management International Review, 55(2), 255-275. (with Raveendra Chittoor and Sougata Ray)
* Aulakh, Preet (Forthcoming), “International Search Behavior of Business Group Affiliated Firms: Scope of Institutional Changes and Intragroup Heterogeniety,” Organization Science. (with Sathyajit Gubbi and Sougata Ray)
Aulakh, Preet (Forthcoming), “Locus of Uncertainty and the Relationship Between Contractual and Relational Governance in Cross-Border Interfirm Relationships,” Journal of Management. (with Majid Abdi)
Auster, Ellen (2014), “Strategic Fit(ness),” Palgrave Encyclopedia of Strategic Management. (with D. Teece and M. Augier (eds.))
Auster, Ellen (Forthcoming), “Middle Management Knowledge of Articulated Strategy: Antecedents, Cognitive Accuracy and Awareness,” The International Journal of Strategic Change Management. (with N. Basir, R. Cruikshank, and T. Ruebottom)
Bae, Kee-Hong (2013), “Is Firm-Specific Return Variation a Measure of Information Efficiency?,” International Review of Finance, 13(4), 407-445. (with Jin-Mo Kim and Yang Ni)
* Bae, Kee-Hong (Forthcoming), “Does Increased Competition Affect Credit Ratings? A Reexamination of the Effect of Fitch’s Market Share on Credit Ratings in the Corporate Bond Market,” Journal of Financial and Quantitative Analysis. (with Jun-Koo Kang and Jin Wang)
Bae, Kee-Hong (Forthcoming), “The Cost of Stock Market Integration in Emerging Markets,” Asia-Pacific Journal of Financial Studies. (with Xin Zhang)
Belk, Russell (2013), “Anti-Consumption Research and Society,” Journal of Macromarketing, 33(3), 187-189. (with M.S.W. Lee and H. Cherrier)
Belk, Russell (2013), “Islamic Arab Hospitality and Multiculturalism,” Marketing Theory, 13(4), 443-463. (with R. Sobh and J. Wilson)
Belk, Russell (2014), “Collaborating in Visual Consumer Research,” International Journal of Business Anthropology, 5(1), 79-92.
Belk, Russell (2014), “Digital Consumption and the Extended Self,” Journal of Marketing Management, 30(11-12), 1101-1118.
Belk, Russell (2014), “Ethnographic Research in Marketing: Past, Present, and Possible Trends for the Future,” Brazilian Journal of Marketing, 13(6), 1-17. (with Leticia Moreira)
* Belk, Russell (2014), “Extended Self in a Digital World,” Journal of Consumer Research, 40(3), 477-500. (with Robert Cluley and Mark Tadajewski (eds.)) Reprinted in International Perspectives of Marketing Theory
Belk, Russell (2014), “Mimicry and Modernity in the Middle East: Fashion Invisibility and Young Women of the Arab Gulf,” Consumption, Markets and Culture, 17(4), 392-412. (with Rana Sobh and Justin Gressel)
Belk, Russell (2014), “Nicht mehr zum Anfassen: Welch Auswirkungen virtuelle Produkte in unterschiedlichen Kulturen haben,” Kulturaustausch, 4(14), 50.
Belk, Russell (2014), “Sharing Versus Pseudo-Sharing in Web 2.0,” The Anthropologist, 18(1), 7-23.
Belk, Russell (2014), “The Art of Using Ethnography,” International Journal of Market Research, 56(4), 1-3.
Belk, Russell (2014), “The Extended Self Unbound,” Journal of Marketing Theory and Practice, 22(2), 133-134.
Belk, Russell (2014), “The Labors of the Odysseans and the Legacy of the Odyssey,” Journal of Historical Research in Marketing, 6(3), 379-404.
Belk, Russell (2014), “You Are What You Can Access: Sharing and Collaborative Consumption Online,” Journal of Business Research, 67(8), 1595-1600.
Belk, Russell (2015), “Measuring Consumer Perceptions of Payment Mode: Scale Development and Validation,” Journal of Economic Psychology, 47, 34-49. (with Jashim Kahn)
Belk, Russell (2015), “Setting the Conditions for Going Global: Dubai’s Transformation and the Emirati Women,” Journal of Marketing Management, 31(3-4), 317-335. (with Hélène Cherrier)
Belk, Russell (2015), “YouTube on the Couch: Psychoanalytic Challenges in a Digital Age,” Marketing Theory, 15(1), 21-24.
Belk, Russell (Forthcoming), “China’s Global Trade History: A Western Perspective,” Journal of China Marketing and Logistics.
Belk, Russell (Forthcoming), “Cultural Resonance of Global Brands in Brazilian Social Movements,” International Marketing Review. (with Maribel Suarez)
Belk, Russell (Forthcoming), “Extended Self in a Digital World,” Current Opinion in Psychology.
* Belk, Russell (Forthcoming), “Marketization and Changing Status in a Caste-Laden Country,” Journal of Consumer Research. (with Rohit Varman and Ram Vikas)
Belk, Russell (Forthcoming), “The Rise of Inconspicuous Consumption,” Journal of Marketing Management. (with Giana Eckhardt and Jonathan Wilson)
Journal articles
After all, one of the features that makes a school of business perform at a consistently high level
over many decades is the quality of its researchers. Over the past five decades, scholars at
Schulich have transformed the way management educators understand core issues in many areas,
and have published numerous journal articles.
Those articles that appear in the list of Financial Times of London “Top 45 Academic and Practitioner Journals in Business” are marked by an asterisk.
42 Schulich School of Business
Belk, Russell (Forthcoming), “Videography in Marketing Research: Mixing Art and Science,” Journal of Arts Marketing. (with Christine Petr and Alain Decrop)
Bell, Christopher (2014), “Episodic Envy and Counterproductive Work Behaviors: Is More Justice Always Good?,” Journal of Organizational Behavior, 35(1), 128-144. (with A.K. Khan. and S. Quratulain)
* Bell, Christopher (Forthcoming), “Context Influences on Workplace Ethics and Justice,” Journal of Business Ethics, conditionally accepted. (with M. Fortin, T. Nadisic, J. Crawshaw, and R. Cropanzano)
Bell, Christopher (Forthcoming), “System Justification and Ideology in Hollywood Films,” New Review of Film and Television Studies, conditionally accepted. (with T. Romao)
* Bhanich Supapol, Atipol (2014), “Firms’ FDI Ownership: The Influence of Government Ownership and Legislative Connections,” Journal of International Business Studies, 45(8), 1029-1043. (with Dan Huang, Xiongwen Lu, Yigang Pan, Lefa Teng, and Zhennan Wang)
* Biehl, Markus (2014), “Is Safe Production an Oxymoron? Exploring How Firms Manage Safety and Operations,” Production and Operations Management, 23(7), 1161-1175. (with David Johnston, Robert Klassen, Mark Pagell, and Anthony Veltri)
Chung, Janne (2014), “Understanding the Restatement Process,” Accounting Perspectives, 13(4), 253-281. (with Susan McCracken)
Cook, Wade (2014), “Competitiveness Among Higher Education Institutions: A Two-Stage Cobb-Douglas Model for Efficiency Measurement of Schools of Business,” Journal of Centrum Cathedra: The Business and Economics Research Journal, 7(1), 91-115. (with S. Avilés-Sacoto and D. Güemes-Castorena)
Cook, Wade (2014), “Data Envelopment Analysis: Prior to Choosing a Model,” OMEGA, 44, 1-4. (with K. Tone and J. Zhu)
Cook, Wade (2014), “DEA Cobb-Douglas Frontier and Cross-Efficiency,” Journal of the Operational Research Society, 65, 265-268. (with J. Zhu)
Cook, Wade (2014), “Fixed Cost and Resource Allocation Based on DEA Cross-Efficiency,” European Journal of Operational Research, 235(1), 206-214. (with J. Du, L. Liang, and J. Zhu)
Cook, Wade (Forthcoming), “Bounded and Discrete Data and Likert Scales in Data Envelopment Analysis: Application to Regional Energy Efficiency in China,” Annals of Operations Research. (with J. Zhu, J. Du, H. Hu, and Y. Chen)
Cook, Wade (Forthcoming), “DEA Models for Parallel Systems: Game-Theoretic Approaches,” Asia Pacific Journal of Operations Research. (with J. Du, J. Huo, and J. Zhu)
Cook, Wade (Forthcoming), “Partial Input to Output Impacts in DEA: The Case of DMU-Specific Impacts,” European Journal of Operational Research. (with S. Avilés-Sacoto, R. Imanirad, and J. Zhu)
Cook, Wade (Forthcoming), “Time-Staged Outputs in DEA,” OMEGA. (with S. Avilés-Sacoto, D. Güemes Castorena, and H. Cantú Delgado)
Cook, Wade (Forthcoming), “Two-Stage Network DEA: When Intermediate Measures can be Treated as Outputs from the Second Stage,” Journal of the Operational Research Society. (with S. Avilés-Sacoto, R. Imanirad, and J. Zhu)
Cook, Wade (Forthcoming), “Units Invariant DEA when Weight Restrictions are Present: Ecological Performance of US Electricity Industry,” Annals of Operations Research. (with J. Zhu and J. Du)
* Cragg, Wesley Edited Special Issue (Forthcoming), “The Ethics of Mining,” Journal of Business Ethics.
* Crane, Andrew (2014), “A Reply to ‘A Response to Andrew Crane et al.’s Article by Michael E. Porter and Mark R. Kramer’,” California Management Review, 56(2), 151-153. (with D. Matten, G. Palazzo, and L.J. Spence)
* Crane, Andrew (2014), “Contesting the Value of ‘Creating Shared Value’,” California Management Review, 56(2), 130-153. (with G. Palazzo, L.J. Spence, and D. Matten)
Crane, Andrew (2014), “Exploring Tourists’ Accounts of Responsible Tourism,” Annals of Tourism Research, 46, 115-129. (with R. Caruana, S. Glozer, and S. McCabe)
* Crane, Andrew (Forthcoming), “Benefit Corporation Legislation and the Emergence of a Social Hybrid Category,” California Management Review. (with H. Rawhouser and M.E. Cummings)
* Crane, Andrew Edited Special Issue (Forthcoming), “Enhancing the Impact of Cross-Sector Partnerships,” Journal of Business Ethics. (with S. Brammer, M.M. Seitanidi and R. van Tulder (eds.))
* Crane, Andrew (Forthcoming), “Financializing Stakeholder Claims,” Journal of Management Studies. (with C. Graham and D. Himick)
Cumming, Douglas (2014), “Do Markets Anticipate Capital Structure Decisions? Feedback Effects in Equity Liquidity,” Journal of Corporate Finance, 27, 133-156. (with C. Andres, T. Karabiber, and D. Schweizer)
Cumming, Douglas (2014), “Entrepreneurship and Internationalization,” International Small Business Journal, (http://isb.sagepub.com/site/Virtual_Special_Issues/Entrepreneurship_and_Internationalization.pdf)
Cumming, Douglas (2014), “Experiences and Challenges in the Development of the Chinese Capital Market,” European Journal of Finance, 20(7-9), 595-598. (with A. Guariglia, W. Hou, and E. Lee)
Cumming, Douglas (2014), “Global Perspectives on Entrepreneurship: Public and Corporate Governance,” Corporate Governance: An International Review, 22(2), 73-76. (with R. Chakrabarti)
Cumming, Douglas (2014), “Public Economics Gone Wild: Lessons from Venture Capital,” International Review of Financial Analysis, 36, 251-260.
Cumming, Douglas (2014), “Special Issue on Corporate Governance and Entrepreneurial Finance in China,” International Review of Financial Analysis, 36, 95-96. (with W. Hou, E. Lee, and Z. Wu)
Cumming, Douglas (2014), “Strategic Asset Allocation and the Role of Alternative Investments,” European Financial Management, 20(3), 521-547. (with Lars Helge Haß and D. Schweizer)
Cumming, Douglas (2014), “The Economic Impact of Entrepreneurship: Comparing International Datasets,” Corporate Governance: An International Review, 22(2), 162-178. (with S.A. Johan and M. Zhang)
Cumming, Douglas (2014), “Valuation of Restricted Shares by Conflicting Shareholders in the Split Share Structure Reform,” European Journal of Finance, 20(7-9), 778-802. (with W. Hou)
Cumming, Douglas (2015), “Cross Border LBOs,” Journal of Banking and Finance, 50, 69-80. (with J. Cao, M. Qian, and X. Wang)
* Cumming, Douglas (2015), “The Role of Agents in Private Entrepreneurial Finance,” Entrepreneurship Theory and Practice, 39(2), 345-374. (with J.A. Pandes and M.J. Robinson)
* Cumming, Douglas (Forthcoming), “A Review of Business Ethics in China,” Journal of Business Ethics, conditionally accepted. (with W. Hou and E. Lee)
* Cumming, Douglas (Forthcoming), “Business Ethics in China,” Journal of Business Ethics. (with W. Hou and E. Lee)
Those articles that appear in the list of Financial Times of London “Top 45 Academic and Practitioner Journals in Business” are marked by an asterisk.
Spotlight on Research 2015 43
44 Schulich School of Business
Cumming, Douglas (Forthcoming), “Cameras Tracking Shoppers: The Economics of Retail Video Surveillance,” Eurasian Business Review. (with Sofia Johan)
Cumming, Douglas (Forthcoming), “Corporate Defaults, Workouts and the Rise of the Distressed Asset Investment Industry,” Business History Review. (with G. Fleming)
* Cumming, Douglas (Forthcoming), “Corporate Fraud, CEO Turnover, and State Ownership in China,” Journal of Business Ethics. (with J. Chen, W. Hou, and E. Lee)
Cumming, Douglas (Forthcoming), “Developing China’s Capital Market,” European Journal of Finance. (with A. Guariglia, W. Hou, and E. Lee)
* Cumming, Douglas (Forthcoming), “Does the External Monitoring Effect of Analysts Deter Corporate Fraud in China?,” Journal of Business Ethics. (with J. Chen, W. Hou, and E. Lee)
Cumming, Douglas (Forthcoming), “Exchange Trading Rules, Surveillance, and Insider Trading,” Journal of Corporate Finance. (with M. Aitken and F. Zhan)
Cumming, Douglas (Forthcoming), “Exploring Entrepreneurial Activity and Small Business Issues in the Chinese Economy,” International Small Business Journal. (with A. Guariglia, W. Hou, and E. Lee)
Cumming, Douglas (Forthcoming), “Firm Size, Institutional Quality and the Impact of Securities Regulation,” Journal of Comparative Economics. (with A. Knill and N. Richardson)
* Cumming, Douglas (Forthcoming), “Gender Diversity and Securities Fraud,” Academy of Management Journal. (with L. Tak Yan and O.M. Rui)
Cumming, Douglas (Forthcoming), “Government and Independent Venture Capital Investments in Europe: A Firm-Level Performance Analysis,” Journal of Corporate Finance. (with L. Grilli and S. Murtinu)
Cumming, Douglas (Forthcoming), “Governmental Venture Capital for Innovative Young Firms,” Journal of Technology Transfer. (with M.G. Colombo and S. Vismara)
Cumming, Douglas (Forthcoming), “High Frequency Trading and End-of-Day Price Dislocation,” Journal of Banking and Finance. (with M. Aitken and F. Zhan)
Cumming, Douglas (Forthcoming), “Introduction to Business History in China,” Business History, conditionally accepted. (with A. Guariglia, W. Hou, and E. Lee)
Cumming, Douglas (Forthcoming), “Media Coverage and Foreign Share Discount in China,” European Journal of Finance. (with R. Dixon, W. Hou, and E. Lee)
Cumming, Douglas (Forthcoming), “One-Child Policy, Dynastic Management and Discontinuity of Family Firms in China,” Journal of Corporate Finance. (with J. Cao and X. Wang)
Cumming, Douglas (Forthcoming), “Publicly Funded Business Advisory Services and Entrepreneurial Internationalization,” International Small Business Journal. (with E. Fischer and T. Peridis)
* Cumming, Douglas (Forthcoming), “Signaling in Equity Crowdfunding,” Entrepreneurship Theory and Practice. (with G.K.C. Ahlers, C. Guenther, and D. Schweizer)
Cumming, Douglas (Forthcoming), “Taking China Private: The Carlyle Group, Leveraged Buyouts and Financial Capitalism in Greater China,” Business History. (with G. Fleming)
Cumming, Douglas (Forthcoming), “The Fast Track IPO – Success Factors for Taking Firms Public with SPACs,” Journal of Banking and Finance. (with L.H. Haß and D. Schweizer)
Cumming, Douglas (Forthcoming), “The Scope of International Mutual Fund Outsourcing: Fees, Performance and Risks,” Journal of International Financial Markets, Institutions and Money. (with A. Schwienbacher and F. Zhan)
Cumming, Douglas (Forthcoming), “The Value of Home Country Governance for Cross-Listed Stocks,” European Journal of Finance. (with W. Hou and E. Wu)
Cumming, Douglas (Forthcoming), “Trade Size, High Frequency Trading, and Co-location around the World,” European Journal of Finance. (with M. Aitken and F. Zhan)
Cumming, Douglas (Forthcoming), “Venture’s Economic Impact in Australia,” Journal of Technology Transfer. (with S.A. Johan)
* Darke, Peter (2014), “I’d Like To Be That Attractive, But At Least I’m Smart: How Exposure To Ideal Advertising Models Motivates Improved Decision-Making,” Journal of Consumer Psychology, 24(4), 533-544. (with K. Sobol)
Darke, Peter (2014), “Targeting Miss Daisy: Using Age and Gender to Target Unethical Sales Tactics,” Marketing Letters, 25(1), 67-75. (with K.O. Cowart)
* Deutsch, Yuval (Forthcoming), “Understanding Motivation and Social Influence in Stakeholder Prioritization,” Organization Studies. (with D. Weitzner)
Diamant, Adam (2014), “Analysis of Patient Attrition in a Publicly Funded Bariatric Surgery Program,” Journal of the American College of Surgeons, 219(5), 1047-1055. (with J. Milner, M. Cleghorn, S. Sockalingam, A. Okrainec, T.D. Jackson, and F.A. Quereshy)
* Diamant, Adam (2014), “Double-Sided Batch Queues with Abandonment: Modeling Crossing Networks,” Operations Research, 62(5), 1179-1201. (with P. Afèche and J. Milner)
* Dolbec, Pierre-Yann (2015), “Re-fashioning a Field? Connected Consumers and Institutional Dynamics in Aestheticized Markets,” Journal of Consumer Research, 41(6), 1447-1468. (with Eileen Fischer)
Eberlein, Burkard (2014), “Transnational Business Governance Interactions,” Regulation & Governance, Special Issue, 8(1), (with K. Abbott, J. Black, E. Meidinger, and S. Wood)
Eberlein, Burkard (2014), “Transnational Business Governance Interactions: Conceptualization and Framework for Analysis,” Regulation & Governance, 8(1), 1-21. (with K. Abbott, J. Black, E. Meidinger, and S. Wood)
* Everett, Jeffery (2013), “Accounting and Networks of Corruption,” Accounting, Organizations and Society, 38(6-7), 505-524. (with Dean Neu, Abu Rahaman, and Daniel Martinez)
* Everett, Jeffery (2013), “Internal Auditing and Corruption within Government: The Case of the Canadian Sponsorship Program,” Contemporary Accounting Research, 30(3), 1223-1250. (with D. Neu and A.S. Rahaman)
Everett, Jeffery (2013), “Trust, Morality, and the Privatization of Water Services in Developing Countries,” Business and Society Review, 118(4), 539-575. (with D. Neu and A.S. Rahaman)
* Everett, Jeffery (2014), “Accounting and Sweatshops: Enabling Coordination and Control in Low-Price Apparel Production Chains,” Contemporary Accounting Research, 31(2), 322-346. (with D. Neu and A.S. Rahaman)
Everett, Jeffery (2014), “Accounting for Suffering: Calculative Practices in the Field of Disaster Relief,” Critical Perspective on Accounting, 25(7), 652-669. (with L. Ianni and M. Sargiacomo)
Everett, Jeffery (2014), “Ethics and Internal Audit: Moral Will and Moral Skill in a Heteronomous Field,” Critical Perspective on Accounting, 25(3), 181-196. (with M.S. Tremblay)
Journal articles cont’d
Those articles that appear in the list of Financial Times of London “Top 45 Academic and Practitioner Journals in Business” are marked by an asterisk.
44 Schulich School of Business
Everett, Jeffery (2014), “On Hypocrisy, the Phronemos, and Kitsch: A Reply to Our Commentators,” Critical Perspective on Accounting, 25(3), 222-225. (with M.S. Tremblay)
Farjoun, Moshe (2015), “Dynamic Conservatism: How Institutions Change to Remain the Same,” Research in the Sociology of Organizations, 44, 89-119. (with C. Ansell and A. Boin)
* Farjoun, Moshe (Forthcoming), “Pragmatism in Organization Studies: Meeting the Challenges of a Dynamic and Complex World,” Organization Science, conditionally accepted. (with C. Ansell and A. Boin)
* Fischer, Eileen (2014), “Online Entrepreneurial Communication: Mitigating Uncertainty and Increasing Differentiation Via Twitter,” Journal of Business Venturing, 29(4), 565-583. (with A. Rebecca Reuber)
* Fischer, Eileen (2015), “Re-Fashioning a Field? Connected Consumers and Institutional Dynamics in Aestheticized Markets,” Journal of Consumer Research, 41(6), 1447-1468. (with Pierre-Yann Dolbec)
* Fischer, Eileen (2015), “Things Fall Apart: The Dynamics of Brand Audience Dissipation,” Journal of Consumer Research, 41, 1228-1251. (with M.A. Parmentier)
Fischer, Eileen (Forthcoming), “Publicly Funded Business Advisory Services and Entrepreneurial Internationalization,” International Small Business Journal. (with D. Cumming and T. Peridis)
Fischer, Eileen (Forthcoming), “Frustrated Fashionistas: An Institutional Theory Perspective on Consumer Quests for Greater Choice in Mainstream Markets,” International Perspectives of Marketing Theory. (with M. Tadajewski and R. Cluley (eds.))
Fischer, Eileen (Forthcoming), “The Nature and Implications of Consumers’ Experiential Framings of Failure in High-Risk Service Contexts,” Journal of Service Research. (with L. Tuncay Zayer and C. Otnes)
* Giesler, Markus (2014), “Creating the Responsible Consumer: Moralistic Governance Regimes and Consumer Subjectivity,” Journal of Consumer Research, 41(3), 840-857. (with Ela Veresiu)
* Graham, Cameron (2014), “The Calculation of Age,” Organization Studies, 35(11), 1627-1653.
* Graham, Cameron (Forthcoming), “Financializing Stakeholder Claims,” Journal of Management Studies. (with A. Crane and D. Himick)
Hsu, Sylvia (2014), “Accounting Performance and Capacity Investment Decisions: Evidence from California Hospitals,” Decision Sciences Journal, 45(2), 309-339. (with Ge Bai and Ranjani Krishnan)
Hsu, Sylvia (Forthcoming), “Performance-Based Compensation and Quality Improvement Plans in Ontario Hospitals,” International Journal of Management Accounting Research. (with Yee-Ching Lilian Chan)
Husted, Bryan (2015), “Value Creation Through Social Strategy,” Business and Society, 54(2), 147-186. (with David B. Allen and Ned Kock)
Husted, Bryan (2015), “CSR Practice from 1800–1914: Past Initiatives and Current Debates,” Business Ethics Quarterly, 25(1), 125-141.
Husted, Bryan (2015), “Sustainability Strategy in Constrained Economic Times,” Long Range Planning, 48(2), 63-68. (with M. Barnett and N. Darnall)
Husted, Bryan (2015), “Free Markets and Social Inclusion: Toward a Common Goal,” Journal of Business Research, 68 (2), 173-176. (with J. Carneiro and N. Matos)
Johan, Sofia A. (2014), “Does Quality of Lender-Borrower Relationship Affect Small Business’ Access to Debt? Evidence of Quality from Canada and Implications in China,” International Review of Financial Analysis, 36, 206-211. (with Zhenyu Wu)
Johan, Sofia A. (2014), “The Changing Latitude: Labor-Sponsored Venture Capital Corporations in Canada,” Corporate Governance: An International Review, 22(2), 145-161. (with Denis Schweizer and Feng Zhan)
Johan, Sofia A. (2014), “The Economic Impact of Entrepreneurship: Comparing International Datasets,” Corporate Governance: An International Review, 22(2), 162-178. (with D. Cumming and M. Zhang)
* Johan, Sofia A. (Forthcoming), “A Socio-Economic Model of Cross Border Venture Capital Investments,” Journal of Business Ethics. (with Danial Hain and Daojuan Wang)
Johan, Sofia A. (Forthcoming), “Cameras Tracking Shoppers: The Economics of Retail Video Surveillance,” Eurasian Business Review. (with D. Cumming)
* Johan, Sofia A. (Forthcoming), “Institutional Investors, Political Connections and Incidence of Corporate Fraud,” Journal of Business Ethics. (with Wenfeng Wu and Oliver Rui)
* Johan, Sofia A. (Forthcoming), “Is Corporate Governance in China Related to Performance Persistence?,” Journal of Business Ethics. (with Lars Helge Haß and Denis Schweizer)
* Johan, Sofia A. (Forthcoming), “The Effectiveness of Public Enforcement: Evidence from the Resolution of Tunnelling in China,” Journal of Business Ethics. (with Lars Helge Haß and Maximilian Andre Muller)
Johan, Sofia A. (Forthcoming), “Venture’s Economic Impact in Australia,” Journal of Technology Transfer. (with Douglas Cumming)
* Johnston, David (2014), “Is Safe Production an Oxymoron? Exploring How Firms Manage Safety and Operations,” Production and Operations Management, 23(7), 1161-1175. (with Markus Biehl, Robert Klassen, Mark Pagell, and Anthony Veltri)
* Johnston, David (2014), “Toward a Structural View of Co-opetition in Supply Networks,” Journal of Operations Management, 32(5), 254-267. (with S.D. Pathak and Z. Wu)
* Johnston, David (2015), “Are Safety and Operational Effectiveness Contradictory Requirements: The Roles of Routines and Relational Coordination,” Journal of Operations Management, 36, 1-14. (with Robert Klassen, Mark Pagell, Sharvani Sharma, and Anton Shevchenko)
Johnston, David (Forthcoming), “Supply Chain Relationships as a Context for Learning Leading to Innovation,” International Journal of Logistics Management. (with Desirée Knoppen and Maria J. Sáenz)
Kamstra, Mark (2014), “Does the Secondary Loan Market Reduce Borrowing Costs?,” Review of Finance, 18(3), 1139-1181. (with Gordon S. Roberts and Pei Shao)
Kamstra, Mark (2014), “Seasonally Varying Preferences: Theoretical Foundations for an Empirical Regularity,” The Review of Asset Pricing Studies, 4(1), 39-77. (with Lisa A. Kramer, Maurice D. Levi, and Tan Wang)
* Kamstra, Mark (Forthcoming), “Seasonal Asset Allocation: Evidence from Mutual Fund Flows,” Journal of Financial and Quantitative Analysis. (with Lisa A. Kramer, Maurice D. Levi, and Russ Wermers)
Kamstra, Mark (Forthcoming), “Seasonal Variation in Treasury Returns,” Critical Finance Review. (with Lisa A. Kramer and Maurice D. Levi)
Kamstra, Mark (Forthcoming), “The Sluggish and Asymmetric Reaction of Life Annuity Prices to Chances in Interest Rates,” Journal of Risk and Insurance. (with Narat Charupat and Moshe A. Milevsky)
Those articles that appear in the list of Financial Times of London “Top 45 Academic and Practitioner Journals in Business” are marked by an asterisk.
Spotlight on Research 2015 45
46 Schulich School of Business
Kanagaretnam, Kiridaran (2014), “Effects of International Institutional Factors on Earnings Quality of Banks,” Journal of Banking and Finance, 39, 87-106. (with C.Y. Lim and G.J. Lobo)
* Kanagaretnam, Kiridaran (2014), “Influence of National Culture on Accounting Conservatism and Risk-Taking in the Banking Industry,” The Accounting Review, 89(3), 1115-1149. (with C.Y. Lim and G.J. Lobo)
Kanagaretnam, Kiridaran (2014), “Transparency and Empowerment in an Investment Environment,” Journal of Business Research, 67(9), 2030-2038. (with S. Mestelman, S.M.K. Nainar, and M. Shehata)
Kanagaretnam, Kiridaran (Forthcoming), “National Culture and Internal Control Weaknesses around the World,” Journal of Accounting, Auditing & Finance. (with G.J. Lobo, C. Ma, and J. Zhou)
* Kanagaretnam, Kiridaran (Forthcoming), “Religiosity and Earnings Management: International Evidence from the Banking Industry,” Journal of Business Ethics. (with G.J. Lobo and C. Wang)
* Kecskés, Ambrus (2013), “Investor Horizons and Corporate Policies,” Journal of Financial and Quantitative Analysis, 48(6), 1755-1780. (with François Derrien and David Thesmar)
Kipping, Matthias (2014), “History in Organization and Management Theory: More Than Meets the Eye,” The Academy of Management Annals, 8(1), 535-588. (with Behlül Üsdiken)
Kipping, Matthias (2014), “The Managerialization of Banking: From Blueprint to Reality,” Management & Organizational History, 9(4), 374-393. (with Gerarda Westerhuis)
Kipping, Matthias (2015), “New Business Histories! Plurality in Business History Research Methods,” Business History, 57(1), 30-40. (with Stephanie Decker and R. Daniel Wadhwani)
Kipping, Matthias (2015), “Translating Potential into Profits: Foreign Multinationals in Emerging Markets since the Nineteenth Century: Introduction,” Management & Organizational History, 10(2), 93-102. (with Christina Lubinski)
Kistruck, Geoffrey (2014), “Adaptations to Knowledge Templates in Base-of-the Pyramid Markets: The Role of Social Interaction,” Strategic Entrepreneurship Journal, 8(4), 303-320. (with C. Sutter and S. Morris)
Kistruck, Geoffrey (2014), “Connecting Poverty to Purchase in Informal Markets,” Strategic Entrepreneurship Journal, 8(1), 37-55. (with T. London, H. Esper, and A. Grogan-Kaylor)
* Kistruck, Geoffrey (2015), “The Double-Edged Sword of Legitimacy in Base-of-the-Pyramid Markets,” Journal of Business Venturing, 30(3), 436-451. (with J. Webb, C. Sutter, and A. Bailey)
* Kistruck, Geoffrey (2015), “The Importance of Client Heterogeneity in Predicting Make-or-Buy Decisions,” Journal of Operations Management, 33-34, 97-110. (with S. Morris, J. Webb, and C. Stevens)
* Kistruck, Geoffrey (Forthcoming), “Cooperation vs. Competition: Alternative Goal Structures for Motivating Groups in a Resource Scarce Environment,” Academy of Management Journal. (with R. Lount, B. Smith, B. Bergman, and T. Moss)
* Kistruck, Geoffrey (Forthcoming), “The Impact of Moral Intensity and Desire for Control on Scaling Decisions in Social Entrepreneurship,” Journal of Business Ethics. (with B. Smith and B. Cannatelli)
Kristal, Murat (2014), “Impact of Operational and Marketing Capabilities on Firm Performance: Evidence from Economic Growth and Downturns,” International Journal of Production Economics, 154, 59-71. (with M.U. Ahmed and M. Pagell)
Kristal, Murat (Forthcoming), “Sensing Abnormal Resource Flow Using Adaptive Limit Process Charts in a Complex Supply Network,” Decision Sciences. (with W.J. Sawaya, S.D. Pathak, and J.M. Day)
Lazar, Fred (Forthcoming), “Regulator’s Determination of Return on Equity in the Absence of Public Firms: The Case of Automobile Insurance in Ontario,” Risk Management and Insurance Review. (with Eliezer Prisman)
* Lévesque, Moren (2014), “Trustworthiness: A Critical Ingredient for Entrepreneurs Seeking Investors,” Entrepreneurship Theory and Practice, 38(5), 1057-1080. (with A. Maxwell)
Lévesque, Moren (2014), “Venture Capital Deals: Beliefs and Ownership,” IEEE Transactions on Engineering Management, 61(4), 570-582. (with M. Narayanan)
* Lévesque, Moren (2015), “Towards a Theory of Entrepreneurial Rents: A Simulation of the Market Process,” Strategic Management Journal, 36(1), 79-96. (with M. Keyhani and A. Madhok)
Lévesque, Moren (Forthcoming), “The Equilibrating and Disequilibrating Effects of Entrepreneurship: Revisiting the Central Premises,” Strategic Entrepreneurship Journal, conditionally accepted. (with M. Keyhani)
* Li, Stan X. (2014), “Agglomeration and Clustering Over the Industry Life Cycle: Toward a Dynamic Model of Geographic Concentration,” Strategic Management Journal, 35(7), 995-1012. (with Liang Wang and Anoop Madhok)
* Li, Stan X. (2014), “Editors’ Introduction: Relational Pluralism Within and Between Organizations,” Academy of Management Journal (Special Research Forum), 57(2), 449-459. (with Andrew V. Shipilov, Ranjay Gulati, Martin Kilduff, and Wenpin Tsai)
* Madhok, Anoop (2014), “Agglomeration and Clustering Over the Industry Life Cycle: Toward a Dynamic Model of Geographic Concentration,” Strategic Management Journal, 35(7), 995-1012. (with L. Wang and S. Li)
Madhok, Anoop (2014), “The Evolution of Strategic Management Research: Recent Trends and New Directions,” Business Research Quarterly, 17(2), 69-76. (with L. Guerras-Martín and Ángeles Montoro-Sánchez)
Madhok, Anoop (2014), “Towards an Action-Based Perspective on Firm Competitiveness,” Business Research Quarterly, 17(2), 77-81. (with R. Marques)
* Madhok, Anoop (2015), “Towards a Theory of Entrepreneurial Rents: A Simulation of the Market Process,” Strategic Management Journal, 36(1), 76-96. (with M. Keyhani and M. Lévesque)
Madhok, Anoop (Forthcoming), “Understanding Alliance Evolution and Transformation: Adjustment Costs and the Economics of Resource Value,” Strategic Organization. (with M. Keyhani and B. Bossink)
* Matten, Dirk (2014), “A Reply to ‘A Response to Andrew Crane et al.’s Article by Michael E. Porter and Mark R. Kramer’,” California Management Review, 56(2), 151-153. (with A. Crane, G. Palazzo, and L.J. Spence)
* Matten, Dirk (2014), “Contesting the Value of ‘Creating Shared Value’,” California Management Review, 56(2), 130-153. (with A. Crane, G. Palazzo, and L.J. Spence)
Matten, Dirk (2014), “The Business Firm as a Political Actor: A New Theory of the Firm for a Globalized World,” Business & Society, 53(2), 143-156. (with A.G. Scherer and G. Palazzo)
Matten, Dirk Edited Special Issue (2014), “The Business Firm as a Political Actor: A New Theory of the Firm for a Globalized World,” Business & Society, 53(2), 143-332. (with A.G. Scherer and G. Palazzo (eds.))
Journal articles cont’d
Those articles that appear in the list of Financial Times of London “Top 45 Academic and Practitioner Journals in Business” are marked by an asterisk.
46 Schulich School of Business
McMillan, Charles (2014), “Corporate Strategy and the Weather: Towards a Corporate Sustainability Platform,” Journal of Problems and Perspectives in Management, 12(2), 200-214. (with Xiang Li)
McMillan, Charles (Forthcoming), “Wicked Problems and the Misalignment of Strategic Management Design,” Journal of Business Strategy. (with Jeff Overall)
Milevsky, Moshe (2014), “Can Collars Reduce Retirement Sequencing Risk? Analysis of Portfolio Longevity Extension Overlays (LEO),” Journal of Retirement, 1(4), 46-56. (with S. Posner)
Milevsky, Moshe (2014), “Mortality Plateaus and Longevity Insurance,” Journal of Retirement, 2(2), 99-107. Reprinted in Pension & Longevity Risk Transfer for Institutional Investors
Milevsky, Moshe (2014), “Optimal Initiation of a GLWB in a Variable Annuity: No Arbitrage Approach,” Insurance: Mathematics and Economics, 56(2), 102-111. (with H. Huang and T.S. Salisbury)
Milevsky, Moshe (2014), “Portfolio Choice and Longevity Risk in the Late 17th Century: A Re-Examination of the First English Tontine,” Finance History Review, 21(3), 225-258.
Milevsky, Moshe (2014), “Rethinking RRIF Withdrawals: New Rates for New Realities,” Canadian Tax Journal, 62(4), 971-983.
Milevsky, Moshe (2014), “Valuation and Hedging of the Ruin-Contingent Life Annuity (RCLA),” Journal of Risk and Insurance, 81(2), 367-395. (with H. Huang and T.S. Salisbury)
Milevsky, Moshe (Forthcoming), “Optimal Retirement Income Tontines,” Insurance: Mathematics and Economics. (with T.S. Salisbury)
Milevsky, Moshe (Forthcoming), “The Sluggish and Asymmetric Reaction of Life Annuity Prices to Changes in Interest Rates,” Journal of Risk and Insurance. (with N. Charupat and M. Kamstra)
* Neu, Dean (2013), “Accounting and Networks of Corruption,” Accounting, Organizations and Society, 38(6-7), 505-524. (with Jeff Everett, Abu Rahaman, and Daniel Martinez)
* Neu, Dean (2013), “Internal Auditing and Corruption within Government: The Case of the Canadian Sponsorship Program,” Contemporary Accounting Research, 30(3), 1223-1250. (with Jeff Everett and A.S. Rahaman)
Neu, Dean (2013), “Trust, Morality, and the Privatization of Water Services in Developing Countries,” Business and Society Review, 118(4), 539-575. (with J. Everett and A.S. Rahaman)
* Neu, Dean (2014), “Accounting and Sweatshops: Enabling Coordination and Control in Low-Price Apparel Production Chains,” Contemporary Accounting Research, 31(2), 322-346. (with J. Everett and A.S. Rahaman)
* Ng, Lilian (2014), “Does PIN Affect Asset Prices Around the World?,” Journal of Financial Economics, 114(1), 178-195. (with Sandy Lai and Bohui Zhang)
* Noseworthy, Theodore J. (2014), “Place the Logo High or Low? Using Conceptual Metaphors of Power in Packaging Design,” Journal of Marketing, 78(5), 138-151. (with Aparna Sundar)
* Noseworthy, Theodore J. (2014), “The Role of Arousal in Congruity-Based Product Evaluation,” Journal of Consumer Research, 41(4), 1108-1126. (with Fabrizio Di Muro and Kyle B. Murray)
* Noseworthy, Theodore J. (2015), “Does Dirty Money Influence Product Valuations?,” Journal of Consumer Psychology, 25(2), 304-310. (with Chelsea Galoni)
* Noseworthy, Theodore J. (Forthcoming), “Asymmetric Consequences of Radical Innovations on Category Representations of Competing Brands,” Journal of Consumer Psychology. (with Charan K. Bagga and Niraj Dawar)
* Oliver, Christine (2013), “Industry Identity in an Oligopolistic Market and Firms’ Responses to Institutional Pressures,” Organization Studies, 34(12), 1803-1834. (with Rumina Dhalla)
* Oliver, Christine (Forthcoming), “Building the Social Structure of a Market,” Organization Studies. (with Kevin McKague and Charlene Zietsma)
Oliver, Christine (Forthcoming), “Radical Settlements to Conflict: Conflict Management and Its Implications for Institutional Change,” Journal of Management and Organization. (with Wesley Helms)
* Pan, Yigang (2014), “Firms’ FDI Ownership: The Influence of Government Ownership and Legislative Connections,” Journal of International Business Studies, 45(8), 1029-1043. (with Atipol Bhanich Supapol, Dan Huang, Xiongwen Lu, Lefa Teng, and Zhennan Wang)
Pan, Yigang (2014), “Host-country Headquarters of U.S. Firms in China: An Empirical Study,” Journal of International Management, 20(4), 379-389. (with Lefa Teng, Mingyang Yu, Xiongwen Lu, and Dan Huang)
Peridis, Theodore (Forthcoming), “Publicly Funded Business Advisory Services and Entrepreneurial Internationalization,” International Small Business Journal. (with D. Cumming and E. Fischer)
Prisman, Eliezer (2014), “Intraoperative Risk Management of Hyperparathyroidism: Modeling and Testing the Parathyroid Hormones’ Evolution as a Mean Reverting Stochastic Processes,” Operations Research for Health Care, 3(1), 7-14. (with Eitan Prisman and J. Freeman)
Prisman, Eliezer (Forthcoming), “Real Estate Transactions in Ancient Israel: Excavating Imbedded Options Utilizing Modern Finance,” Financial History Review.
Prisman, Eliezer (Forthcoming), “Regulator’s Determination of Return on Equity in the Absence of Public Firms: The Case of Automobile Insurance in Ontario,” Risk Management and Insurance Review. (with Fred Lazar)
Roberts, Gordon (2014), “Does the Secondary Loan Market Reduce Borrowing Costs?,” Review of Finance, 18(3), 1139-1181. (with Mark Kamstra and Pei Shao)
Roberts, Gordon (2014), “Funding Advantage and Market Discipline in the Canadian Banking Sector,” Journal of Banking and Finance, 48, 396-410. (with Mehdi Beyhaghi and Christopher D’Souza)
Rosin, Hazel (Forthcoming), “Intention to Leave Scale, Reasons for Leaving Scale, Job Demands Scale, Met Expectations Scale,” PsycTESTS Database – American Psychological Association. (with K. Korabik)
Sadorsky, Perry (2014), “Carbon Price Volatility and Financial Risk Management,” The Journal of Energy Markets, 7(1), 83-102.
Sadorsky, Perry (2014), “Modeling Volatility and Conditional Correlations Between Socially Responsible Investments, Gold and Oil,” Economic Modelling, 38, 609-618.
Sadorsky, Perry (2014), “Modeling Volatility and Correlations Between Emerging Market Stock Prices and the Prices of Copper, Oil And Wheat,” Energy Economics, 43, 72-81.
Sadorsky, Perry (2014), “The Effect of Urbanization and Industrialization on Energy Use in Emerging Economies: Implications for Sustainable Development,” American Journal of Economics and Sociology, 73(2), 392-409.
Sadorsky, Perry (2014), “The Effect of Urbanization On CO2 Emissions In Emerging Economies,” Energy Economics, 41, 147-153.
* Tan, Hongping (2015), “Geographic Proximity and IPO Firm Coverage,” Journal of Accounting and Economics, 59(1), 41-59. (with Patricia C. O’Brien)
Tan, Justin (2014), “Alliance Network and Firm Innovation Performance: A Multilevel Analytic Framework,” Management World, 3(1), 163-169. (with H. Zhang)
Those articles that appear in the list of Financial Times of London “Top 45 Academic and Practitioner Journals in Business” are marked by an asterisk.
Spotlight on Research 2015 47
48 Schulich School of Business
* Tan, Justin (2014), “From Voids to Sophistication: Institutional Environment and MNC CSR Crisis in Emerging Markets,” Journal of Business Ethics, 122(4), 655-674. (with M. Zhao and S. Park)
Tan, Justin (2015), “When Does Investment in Political Ties Improve Firm Performance? The Contingent Effect of Innovation Activities,” Asia Pacific Journal of Management, 32(2), 363-387. (with J. Zhang and P.K. Wong)
* Tan, Justin (Forthcoming), “Donate Money, But Whose Money? Empirical Evidence about Ultimate Control Rights, Agency Problems and Corporate Philanthropy in China,” Journal of Business Ethics. (with Y. Tang)
* Tan, Justin (Forthcoming), “Fit by Adaptation or Fit by Founding? A Comparative Study of Existing and New Entrepreneurial Cohorts in China,” Strategic Management Journal. (with C. Zhang and D. Tan)
Tan, Justin (Forthcoming), “Minding the Gender Gap: Social Networks and Internet Correlates of Business Performance among Chinese Canadian Entrepreneurs,” American Behavioral Scientists. (with W. Chen)
* Tan, Justin (Forthcoming), “Network Closure or Structural Hole? The Conditioning Effects of Network-Level Social Capital on Innovation Performance,” Entrepreneurship Theory and Practice. (with H. Zhang and L. Wang)
Thorne, Linda (2014), “Motivations for Issuing Standalone CSR Reports: A Survey of Canadian Firms,” Accounting, Auditing and Accountability Journal, 27(4), 686-714. (with L. Mahoney and G. Manetti)
* Thorne, Linda (2015), “Introduction to Special Issue on Tone at the Top,” Journal of Business Ethics, 126(1), 167. (with S. Gunz)
Thorne, Linda (2015), “Groupcentric Budget Goals, Budget-Based Incentive Contracts, and Additive Group Tasks,” Review of Accounting and Finance, 14(2), 189-206. (with J. Farrar and T. Libby)
Thorne, Linda (Forthcoming), “Standalone Corporate Social Responsibility Reports and Stock Market Returns,” Research on Professional Responsibility and Ethics in Accounting. (with W. LaGore and L. Mahoney)
Waller, Mary (2014), “Focusing on Teams in Crisis Management Education: An Integration and Simulation-Based Approach,” Academy of Management Learning & Education, 13(2), 208-221. (with Z. Lei and R. Pratten)
* Waller, Mary (2014), “Monitoring and Talking to the Room: Autochthonous Coordination Patterns in Team Interaction and Performance,” Journal of Applied Psychology, 99(6), 1254-1267. (with M. Burtscher, B. Grande, G. Grote, M. Kolbe, D. Spahn, and J. Wacker)
Waller, Mary (2015), “Cardiac Resuscitation Events: One Eyewitness is not Enough,” Pediatric Critical Care Medicine, 16(4), 335-342. (with L. Su, S. Kaplan, A. Watson, M. Jones, and D. Wessel)
Waller, Mary (Forthcoming), “Exploring the Hidden Profile Paradigm: A Literature Review and Analysis,” Small Group Research, conditionally accepted. (with G. Sohrab and S. Kaplan)
* Weitzner, David (Forthcoming), “Understanding Motivation and Social Influence in Stakeholder Prioritization,” Organization Studies. (with Y. Deutsch)
Wolf, Bernard (2014), “Designing Curriculum for Real-World International Business Needs,” Journal of Teaching in International Business, 25(3), 165-184. (with Lorna Wright)
Wright, Lorna (2014), “Designing Curriculum for Real-World International Business Needs,” Journal of Teaching in International Business, 25(3), 165-184. (with Bernard Wolf)
Wright, Lorna (Forthcoming), “International Undergraduate Students’ Motivation for Studying Abroad: A Qualitative Investigation,” Journal for Adolescent Research. (with Saeid Chavoshi and Maxine Wintre)
Yeomans, Julian (2014), “A Stochastic Nature-Inspired Approach for Modelling-to-Generate-Alternatives,” Journal of Applied Operational Research, 6(1), 30-38. (with R. Imanirad and X-S. Yang)
Yeomans, Julian (2014), “Establishing Optimal Dehydration Process Parameters for Papaya By Employing A Firefly Algorithm, Goal Programming Approach,” International Journal of Engineering Research and Applications, 4(9), 145-149.
Yeomans, Julian (2014), “Municipal Waste Management Optimization Using A Firefly Algorithm-Driven Simulation-Optimization Approach,” International Journal of Process Management and Benchmarking, 4(4), 363-375. (with X-S. Yang)
Yeomans, Julian (2015), “A Parametric Testing of the Firefly Algorithm in the Determination of the Optimal Osmotic Drying Parameters of Mushrooms,” Journal of Artificial Intelligence and Soft Computing Research, 4(4), 257-266.
Yeomans, Julian (2015), “Computing Optimal Food Drying Parameters Using the Firefly Algorithm,” Journal on Computing, 4(1), 40-44.
Yeomans, Julian (Forthcoming), “Environmental Decision-Making Under Uncertainty Using a Biologically-Inspired Simulation-Optimization Algorithm for Generating Alternative Perspectives,” International Journal of Business Innovation and Research. (with R. Imanirad and X-S. Yang)
* Zietsma, Charlene (2014), “Emergent Identity Work and Institutional Change: The ‘Quiet’ Revolution of Japanese Middle-Class Housewives,” Organization Studies, 35, 423-450. (with A. Leung and A.M. Peredo)
* Zietsma, Charlene (2015), “I Need Time! Exploring Pathways to Compliance under Institutional Complexity,” Academy of Management Journal, 58(1), 85-110. (with A.G.M. Raaijmakers, P.A.M. Vermeulen, and M.T.H. Meeus)
* Zietsma, Charlene (Forthcoming), “Building the Social Structure of a Market,” Organization Studies. (with K. McKague and C. Oliver)
Zwick, Detlev (2014), “My Iranian Road Trip – Comments and Reflections on Videographic Interpretations of Iran’s Political Economy and Marketing System,” Journal of Macromarketing, 34(1), 87-94. (with C.J. Shultz II, M. Peterson, and D. Atik)
Zwick, Detlev (Forthcoming), “Defending the Right Lines of Division: Ritzer’s Prosumer Capitalism in the Age of Commercial Customer Surveillance and Big Data,” The Sociological Quarterly.
* Zwick, Detlev (Forthcoming), “The Field of Business Sustainability and the Death Drive: A Radical Intervention,” Journal of Business Ethics. (with Alan Bradshaw)
Zwick, Detlev (Forthcoming), “The Ideology of the Ethical Consumption Gap,” Marketing Theory. (with M. Carrington and B. Neville)
Journal articles cont’d
Those articles that appear in the list of Financial Times of London “Top 45 Academic and Practitioner Journals in Business” are marked by an asterisk.
48 Schulich School of Business
Research Showcase50 Microaccountability and Biopolitics:
Commercial Microfinance in Sri Lanka Chandana Alawattage, Cameron Graham, Danture Wickramasinghe
51 accountability, Performativity and the ethical Self Claudine Grisard, Cameron Graham, Marcia Annisette
52 Materiality in Charity Performance Reporting Kate Ruff
53 Moral Reasoning, Distributional Fairness and honest Reporting Sylvia Hsu and Janne Chung
54 Textual analysis of Sell-side analyst Reports Hongping Tan and Kee-Hong Bae
55 Regulator’s Determination of Return on equity in the absence of Public Firms: The Case of automobile insurance in Ontario Fred Lazar and Eliezer Z. Prisman
56 Gender Diversity and Securities Fraud Douglas Cumming, T.Y. Leung, Oliver Rui
57 nominal Stock Price anchors: a Global Phenomenon? Kee-Hong Bae, Utpal Bhattacharya, Jisok Kang, S. Ghon Rhee
58 Behavioral Finance and implications for Seasonality in asset Markets Mark Kamstra, Lisa Kramer, Maurice Levi, Russ Wermers
59 Reporting Bias in Private equity: Reporting Frequency, endowments, and Governance Sofia Johan and Minjie Zhang
60 The Field of Business Sustainability and the Death Drive: a Radical intervention Alan Bradshaw and Detlev Zwick
61 emotional Consumption Systems and the Glocalization of Romantic Love Anton Siebert and Markus Giesler
62 Marketers in the Wild: Biopolitical Marketing and the ideology of the Customer Community Detlev Zwick and Alan Bradshaw
63 how the Physical appearance of Money influences Spending Theodore J. Noseworthy, Fabrizio Di Muro (Project #1) and Chelsea Galoni (Project #2)
64 Designing a Sharing economy: The Sociology of empathy Markus Giesler, Ela Veresiu, Anton Siebert
65 The non-Compensatory Relationship between Risk and Return in Business angel investment Decision Making Andrew Maxwell, Moren Lévesque, Scott Jeffrey
66 Low Frequency high impact Operational Losses: Can Banks Learn to Manage Misfortune? Elena Nesterova
67 Uptrend of Containership Chartering Under Carbon Tax Uncertainty Mo Zhu, Murat Kristal, Michael Chen
68 Benchmarking Best Practice in Organizations Wade D. Cook
69 Tough Disciplinary Decisions: a necessary Good Chris Bell, Artem Assoiants, Abdul Karim Khan, Imran Hameed
70 national Characteristics, Corruption and Well Being: a Relational Forms Model of institutional anomie Chris Bell and Mingshuang Ji
71 Life on the edge: Dynamic Boundary Spanning in Mine Rescue Teams Mary J. Waller and Seth A. Kaplan
72 innovations in the Business Models of Modern Slavery: a Uk Study Andrew Crane, Genevieve Lebaron, Jean Allain, Laya Behbahani
73 Political Leadership and the ethical Behavior of Business in China: a Coevolution approach Justin Tan and Anne Barraquier
74 authorities on Management: Business Schools, Consultants, Media Lars Engwall, Matthias Kipping, Behlül Üsdiken
75 antecedent of Crisis? The Managerialization of Banking Since the 1960s Matthias Kipping and Gerarda Westerhuis
76 Mining, ethics and Responsible investment Wes Cragg
BEST PoSTER 2015
Theo
rizat
ion
The
limits
ofac
coun
tabi
lity
(Mes
sner
2009
)•
Opa
city
ofth
ese
lfcr
eate
sim
poss
ible
ethi
calb
urde
n•
Dem
and
fora
ccou
ntab
ility
cann
otbe
undo
ne•
Dis
curs
ive
stru
ctur
eslim
itw
hatw
eca
nsa
yab
outo
urse
lves
Neo
liber
alis
man
dbi
opol
itics
(Fou
caul
t197
9)•
Rat
iona
lity
ofgo
vern
ance
thro
ugh
mar
kets
&pr
ivat
een
terp
rise
•R
equi
res
the
cons
truct
ion
ofho
mo
econ
omic
us
Post
-inst
itutio
nals
ocie
tyof
cont
rol(
Har
dt&
Neg
ri20
00)
•G
over
nanc
eth
roug
hne
twor
ks,n
otin
stitu
tions
:o
Labo
uris
imm
erse
din
the
soci
al.
oS
ubje
ctiv
izat
ion
thro
ugh
com
mun
icat
ion
and
lang
uage
.•
Cap
italis
mfe
eds
ondi
ffere
nce:
the
loca
ldriv
espr
ofit.
•Th
epo
orha
vea
cent
ral
prod
uctiv
efu
nctio
n:po
orin
divi
dual
san
dco
untri
esar
ein
tegr
ated
into
glob
alor
derb
utre
mai
npo
or.
Mic
roac
coun
tabi
lity
and
Bio
polit
ics:
Com
mer
cial
Mic
rofin
ance
in S
ri La
nka
Met
hod
Fiel
dre
sear
chin
thre
eSr
iLan
kan
villa
ges
•M
icro
finan
cepr
ogra
mof
afo
r-pro
fitba
nk
•A
ttend
edw
eekl
ym
eetin
gsof
wom
en’s
borro
win
gci
rcle
•Vi
site
dm
icro
busi
ness
esan
din
terv
iew
edbo
rrow
ers
•In
terv
iew
edba
nkof
ficia
ls
Doc
umen
tana
lysi
s
•B
orro
wer
s’de
posi
trec
ords
,loa
nbo
oks
•B
ank
mic
rofin
ance
polic
ies,
acco
untin
gst
atem
ents
Cha
ndan
a A
law
atta
ge1 ,
Cam
eron
Gra
ham
2 , D
antu
re W
ickr
amas
ingh
e3
1 Uni
vers
ity o
f Abe
rdee
n, U
K,
2 Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada,
3 Uni
vers
ity o
f Gla
sgow
, UK
Intr
oduc
tion
•W
hat m
akes
mic
rofin
ance
wor
k?
•H
ow a
re p
eopl
e he
ld a
ccou
ntab
le in
a p
ost-i
nstit
utio
nal w
orld
?
•H
ow d
oes
neol
iber
alis
m e
nlis
t the
poo
rest
peo
ple
on th
e pl
anet
?
Ack
now
ledg
emen
ts: W
e ap
prec
iate
the
supp
ort o
f loc
al re
sear
ch p
artic
ipan
ts.
Pro
ject
was
par
tially
fund
ed b
y C
PA O
ntar
io.
The
Cas
e•
Cal
cula
tions
like
“pov
erty
line”
are
inst
rum
enta
l.
•“A
nim
ator
s”dr
ive
loca
lres
truct
urin
gof
villa
ge.
oTh
reat
offo
rce
expl
icit
butu
nack
now
ledg
ed.
•M
icro
finan
cefo
rmal
izes
and
mon
etiz
esw
omen
’sdo
mai
n.
oP
oolin
gof
finan
cial
reso
urce
sal
read
yex
iste
d.
oS
hare
dla
bour
prac
tices
beco
me
indi
vidu
aliz
ed.
oM
icro
loan
sen
forc
edby
peer
-to-p
eerm
icro
acco
unta
bilit
y.
•M
icro
entre
pren
eurb
ecom
esde
pend
ento
nba
nk.
Dis
cuss
ion
Wom
en’s
borr
owin
gci
rcle
s:
•R
educ
eth
eet
hica
lgap
thro
ugh
mic
roac
coun
tabi
lity.
•M
ultip
lyth
enu
mbe
rofo
ther
sto
who
mon
eis
held
toac
coun
t.
•S
ublim
ate
the
inte
rest
sof
the
bank
into
the
inte
rest
sof
the
grou
p.
•M
edia
teac
coun
ting
toth
eba
nkth
roug
hth
em
utua
lly-p
rovi
ded
soci
alac
coun
tsof
the
wom
en.
Rur
alvi
llage
s:
•S
ocia
lstru
ctur
esar
efo
rmal
ized
and
mon
etiz
ed.
•Vi
llage
beco
mes
corp
orat
ized
.
•W
omen
are
harn
esse
dto
engi
neof
finan
ce.
Para
dox
ofm
icro
finan
ce:
•In
divi
dual
izat
ion
thro
ugh
soci
alre
latio
nshi
ps.
Con
clus
ions
•N
eolib
eral
gove
rnan
cepe
rmea
tes
life
toin
tegr
ate
itto
the
econ
omy.
•C
ultu
reis
prod
uced
and
mon
etiz
ed.
•N
otju
sta
“third
wor
ld”p
heno
men
on.
•M
icro
acco
unta
bilit
ydr
ives
bank
prof
itsju
stlik
eit
driv
esm
arke
tval
ueof
Face
book
and
Twitt
er.
•Th
epo
orst
aypo
or,t
heus
ers
stay
used
.
The
Cas
hboo
k•
Mic
roac
coun
tabi
lity
brin
gs th
e ca
shbo
ok in
to p
lay
50 Schulich School of Business
Theo
rizat
ion
•Li
tera
ture
•Fo
ucau
ldia
nre
sear
chon
the
cons
truct
ion
ofth
edi
scip
lined
pers
onvi
aac
coun
ting
tech
nolo
gies
•Th
epo
ssib
ilitie
sof
acco
unta
bilit
y(R
ober
ts19
91)
•P
erfo
rmat
ivity
(But
ler1
990,
2005
)
•Th
esu
bjec
t
•Th
epe
rson
inso
ciet
y(n
otth
eis
olat
edin
divi
dual
)
•P
erso
nan
dso
ciet
ypr
oduc
edsi
mul
tane
ousl
y
•C
onno
tes
pow
er
•Th
eet
hica
lsel
f
•Th
esu
bjec
tinv
okes
the
mor
alot
her(
e.g.
,“th
epo
or”)
Acc
ount
abili
ty, P
erfo
rmat
ivity
and
the
Ethi
cal S
elf
Res
earc
h M
etho
ds•
Fiel
dre
sear
chin
Fren
chm
ultin
atio
nalc
ompa
nies
•Fo
cus
onfo
r-pro
fitpo
verty
redu
ctio
npr
ogra
ms
•Fo
urte
enco
mpa
nies
•E
xten
ded
inte
rvie
ws
with
prog
ram
man
ager
s
•O
neco
mpa
ny
•Tw
o-ye
arpa
rtici
pant
obse
rvat
ion
with
pove
rtyre
duct
ion
team
Cla
udin
e G
risar
d, C
amer
on G
raha
m, M
arci
a A
nnis
ette
Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada
Intr
oduc
tion
•S
ervi
ngth
epo
oran
dth
esh
areh
olde
r
•C
an“B
otto
mof
the
Pyr
amid
”pro
gram
sse
rve
two
mas
ters
?
•H
owdo
esa
man
ager
cons
truct
hera
ccou
ntab
lese
lf?
•A
ccou
ntin
gre
sear
chig
nore
sac
coun
tabi
lity
theo
ry
•P
erso
n su
bjec
tiviz
ed th
roug
h po
wer
/kno
wle
dge
but i
ndiv
idua
l tre
ated
in
isol
atio
n
•M
ustb
ring
ethi
csba
ckin
toac
coun
tabi
lity
Ack
now
ledg
emen
ts: W
e ap
prec
iate
the
supp
ort o
fth
e an
onym
ous
corp
orat
ion
whe
re th
e fie
ld w
ork
was
con
duct
ed
Perf
orm
ing
the
Ethi
cal S
elf
Dis
cuss
ion
•Th
eco
nstru
ctio
nof
the
self
thou
ghac
coun
tabi
lity
•E
thic
alel
emen
tsin
corp
orat
edin
acco
untp
rovi
ded
tohi
erar
chy
•P
erso
nalv
oice
ofth
eem
ploy
eein
rela
tion
tohi
erar
chy
•O
ffers
spec
ific
and
polit
ical
repr
esen
tatio
nof
the
self
•P
erfo
rman
ceof
acco
unta
bilit
yas
polit
ical
act
Con
clus
ions
•Fa
ce-to
-face
acco
unta
bilit
yis
nott
hew
hole
stor
y
•P
eopl
ein
corp
orat
e“m
oral
othe
r”in
deci
sion
mak
ing
•Fu
ndam
enta
lto
ethi
calb
ehav
iour
and
self-
form
atio
n
•Le
ads
toco
nstru
ctio
nof
aso
cial
lyaw
are
subj
ect
The
Sub
ject
The
Indi
vidu
al
Sel
f
Hie
rarc
hica
l O
ther
The
Eth
ical
S
elf
Mor
alO
ther
The
Soc
ial
Sel
f
Imm
edia
teO
ther
Spotlight on Research 2015 51
52 Schulich School of Business
Res
earc
hQ
uest
ions
•H
owis
the
mat
eria
lity
unde
rsto
odan
dpr
actic
edam
ong
prof
essi
onal
char
ityan
alys
ts?
Mat
eria
lity
in C
harit
y Pe
rfor
man
ce R
epor
ting
Met
hod
Team
sof
Soc
ialI
mpa
ctA
naly
sts,
recr
uite
dth
roug
ha
prof
essi
onal
asso
ciat
ion,
wer
eea
chgi
ven
data
from
are
alch
arity
and
aske
dto
prep
are
are
port
“to in
form
stak
ehol
ders
abou
tthe
perfo
rman
ceof
the
orga
niza
tion.
”
•S
even
case
s,w
ithre
plic
atio
nlo
gic,
repr
esen
ting
diffe
rent
prac
tices
.
•In
terp
retiv
eco
nten
tana
lysi
sof
the
repo
rtspr
oduc
ed.
•(O
bser
vatio
ns,s
urve
ysan
din
terv
iew
sno
tana
lyze
dhe
re).
Kat
e R
uff
Sch
ulic
hSc
hool
of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada
Intr
oduc
tion
•Th
ere
isin
crea
sing
dem
and
for
cred
ible
acco
unts
ofa
char
itype
rform
ance
.
Cha
ritie
sar
ebe
ing
aske
dto
disc
lose
wha
tis
mat
eria
l;no
twha
tis
favo
rabl
e.
•Th
efin
anci
alac
coun
ting
defin
ition
(om
issi
onor
mis
stat
emen
tw
ould
alte
rde
cisi
ons)
has
awkw
ard
appl
icat
ion
toch
arity
perfo
rman
ce.
•Li
ttle
iskn
own
abou
thow
mat
eria
lity
shou
ldbe
unde
rsto
odin
the
cont
exto
fch
arity
repo
rting
.
Prel
imin
ary
Res
ults
Dis
cuss
ion
•Th
isre
sear
chfo
und
that
mat
eria
lity
ism
ulti-
laye
red
issu
ew
ithea
chla
yer
posi
nga
dist
inct
tech
nica
land
conc
eptu
alqu
estio
ns.
•R
ecom
men
ding
char
ities
disc
lose
wha
tis
mat
eria
lis
only
help
fulw
itha
bette
rco
ncep
tion
ofw
hat
mat
eria
lity
isin
this
spac
e.Th
eca
tego
ries
of
mat
eria
lity
inde
mni
fied
help
tost
ruct
ure
guid
ance
.
Take
Aw
ay M
essa
ge•
Prac
tical
:cr
ispe
rar
ticul
atio
nof
mat
eria
lity
inth
eco
ntex
tof
soci
al
perfo
rman
cere
porti
ngis
need
edbe
fore
impr
ovem
ents
inth
ere
liabi
lity
ofch
arity
repo
rtsar
epo
ssib
le.
•Th
eore
tical
:mat
eria
lity
isno
tasi
ngul
arco
ncep
tapp
lied
repe
ated
lyin
apr
oces
s,bu
tis
am
ulti-
stra
taco
nstru
ctth
atin
fluen
ces
the
anal
ysis
,
pres
enta
tion
and
asse
ssm
ento
fres
ults
atm
ultip
lepo
ints
.
Sam
e or
gani
zatio
n, d
iffer
ent a
ccou
nts
Anal
ysts
beg
an b
y cr
eatin
g a
hier
arch
y of
dat
aba
sed
on th
eir u
nder
stan
ding
of t
he c
onst
ruct
‘per
form
ance
’
Mat
eria
lity
Stra
taQ
uest
ion
Soci
al
Perf
orm
ance
Fina
ncia
lAc
coun
ting
Cat
egor
y-le
vel
mat
eria
lity
Wha
t top
ics
mat
ter t
o th
eco
nstru
ct o
f pe
rform
ance
?
Con
test
ed.
Sel
ectio
n of
to
pics
var
ied
by
prac
tice
area
.
Em
bedd
edin
st
ruct
ure
of fi
nanc
ial
stat
emen
ts
Evi
denc
e-le
vel
mat
eria
lity
Whi
ch d
ata
shou
ld
be c
onsi
dere
d to
ev
alua
teth
is
cate
gory
?
Varie
d, e
ven
with
in p
ract
ice
area
s.
Em
bedd
ed in
st
ruct
ure
of a
ccou
nts
–is
sues
of e
rrors
or
omis
sion
s re
leva
nt.
Dis
clos
ure-
leve
lm
ater
ialit
y
Wha
t dat
a m
erit
men
tion
in th
e fin
al
acco
unt ?
Varie
s w
idel
y.
Aud
itord
iscr
etio
n,
conv
entio
n
• Th
ree
stra
ta o
f mat
eria
lity
judg
men
ts w
ere
iden
tifie
d: c
ateg
ory,
evi
denc
e an
d di
sclo
sure
mat
eria
lity.
• Ea
ch g
roup
cla
imed
the
ir ca
tego
ry-le
vel m
ater
ialit
y ju
dgm
ents
wer
e em
ic
how
ever
som
e w
ere
emic
-to-m
anag
emen
t, so
me
emic
-to-s
take
hold
ers
and
som
e em
ic-to
-inte
rven
tion,
resu
lting
in d
iffer
ent p
erfo
rman
ce a
sses
smen
ts,
from
effe
ctiv
e to
inef
fect
ive.
• Ev
iden
ce w
as s
elec
ted
for
its m
ater
ialit
y to
cat
egor
y, n
ot e
ntity
-spe
cific
m
easu
res
such
as
spen
ding
, st
aff
and
bene
ficia
ries
affe
cted
. As
a r
esul
t, m
inor
act
iviti
es (4
% o
f ben
efic
iarie
s, >
1% o
f bud
get)
wer
e hi
ghlig
hted
, and
m
ajor
act
iviti
es (1
00%
of b
enef
icia
ries,
84%
of b
udge
t) w
ere
omitt
ed.
• Ap
proa
ches
wer
e so
met
imes
use
d in
con
tradi
ctor
y w
ays.
For
exa
mpl
e,
appl
ying
fin
anci
al p
roxi
es (
for
SRO
I or
cos
t-ben
efit
anal
ysis
) w
eigh
ted
outc
omes
in w
ays
that
con
tradi
cted
ear
lier m
ater
ialit
y ju
dgm
ents
.
52 Schulich School of Business
Hyp
othe
ses
•H
1:H
ones
tre
porti
ngm
ade
bypr
e-co
nven
tiona
lin
divi
dual
sar
eun
affe
cted
bydi
strib
utio
nalf
airn
ess
beca
use
they
valu
eon
lyth
eir
own
inte
rest
.•
H2:
Con
vent
iona
lan
dpo
st-c
onve
ntio
nal
peop
lear
em
ore
likel
yto
prov
ide
aho
nest
repo
rtw
hen
payo
ffsar
em
ore
fairl
ydi
strib
uted
betw
een
man
ager
and
the
firm
.B
ecau
sefa
irnes
sis
am
oral
virtu
e,in
divi
dual
sar
ele
sslik
ely
todi
spla
yop
portu
nist
icbe
havi
ors
whe
nth
eyar
etre
ated
fairl
yby
the
othe
rs.
•H
3(in
anu
llfo
rm):
Ther
eis
nodi
ffere
nce
inth
eef
fect
ofdi
strib
utio
nal
fairn
ess
onho
nest
repo
rting
betw
een
conv
entio
nal
and
post
-co
nven
tiona
lpeo
ple.
Mor
al R
easo
ning
, Dis
trib
utio
nal F
airn
ess
and
Hon
est R
epor
ting
Met
hod
•W
eus
edco
mpu
ter
netw
orks
toco
nduc
tam
ulti-
perio
dec
onom
ic-c
hoic
eex
perim
ent.
Und
ergr
adua
test
uden
tsw
ere
recr
uite
dan
dw
ere
aske
dto
assu
me
the
role
ofm
anag
eran
dto
subm
itpr
oduc
tion
budg
ets
tohe
adqu
arte
rsto
obta
inth
efu
nds
for
prod
uctio
n.P
artic
ipan
tsw
ere
prov
ided
with
the
actu
alpr
oduc
tcos
tand
wer
eto
ldth
atth
eco
rpor
atio
ndi
dno
tkn
owth
eir
actu
alpr
oduc
tion
cost
.E
xces
sfu
nds
will
incr
ease
parti
cipa
nts’
pers
onal
earn
ings
.W
eus
edth
esu
bmitt
edpr
oduc
tion
budg
ets
toca
lcul
ate
aho
nest
yin
dex.
•A
fters
ubm
ittin
gth
ebu
dget
sfo
reig
htpe
riods
,par
ticip
ants
wer
eas
ked
toco
mpl
ete
DIT
ques
tionn
aire
.•
We
adju
sted
prod
uctp
rice
tom
anip
ulat
edi
strib
utio
nalf
airn
ess.
Syl
via
Hsu
and
Jan
ne C
hung
Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada
Intr
oduc
tion
•Th
epu
rpos
eof
this
proj
ecti
sto
exam
ine
the
inte
ract
ion
betw
een
mor
alre
ason
ing
and
dist
ribut
iona
lfai
rnes
son
man
ager
s’ho
nest
repo
rting
.
•K
ohlb
erg
(196
9,19
76)
prop
oses
aco
gniti
vem
oral
deve
lopm
ent
mod
el(C
MD
)an
dcl
assi
fies
the
cogn
itive
aspe
ctof
mor
alde
cisi
onm
akin
gin
toth
ree
leve
ls:
the
pre-
conv
entio
nal
pers
onis
self-
inte
rest
ed,
the
conv
entio
nal
one
mak
eset
hica
lde
cisi
ons
base
don
soci
alno
rms,
and
the
post
-con
vent
iona
lin
divi
dual
mak
eset
hica
lde
cisi
onba
sed
onun
iver
salv
alue
s.
•R
ecen
tec
onom
ics
liter
atur
esu
gges
tsth
atpe
ople
lieto
adju
stth
efin
aldi
strib
utio
nof
payo
ffsbe
caus
eth
eyar
eco
ncer
ned
that
the
payo
ffdi
strib
utio
nbe
twee
nth
emse
lves
and
othe
rsm
ayno
tbe
fair
(Bol
ton
&O
cken
fels
,200
0;Fe
hr&
Sch
mid
t,19
99).
Figu
re 1
Ack
now
ledg
emen
ts: W
e ap
prec
iate
the
supp
ort o
f SS
RH
C
Pro
ject
was
fund
ed b
y S
SH
RC
Res
ults
•D
istri
butio
nal
fairn
ess
does
not
affe
ctth
eho
nest
yin
dex
ofpr
e-co
nven
tiona
lman
ager
s.•
Dis
tribu
tiona
lfai
rnes
saf
fect
sth
eho
nest
yin
dex
inbo
thco
nven
tiona
land
post
-con
vent
iona
lman
ager
s.•
Dis
tribu
tiona
lfai
rnes
sha
sa
grea
ter
influ
ence
onth
eho
nest
yin
dex
ofpo
st-c
onve
ntio
nalm
anag
ers
than
that
ofco
nven
tiona
lman
ager
s.
Dis
cuss
ion
•P
re-c
onve
ntio
nalm
anag
ers
prov
ide
leas
thon
estr
epor
tsin
fair
and
unfa
irsi
tuat
ions
.D
istri
butio
nal
fairn
ess
does
not
mot
ivat
epr
e-co
nven
tiona
lm
anag
ers
tore
port
mor
eho
nest
ly.•
Fair
dist
ribut
ion
ofw
ealth
betw
een
the
firm
and
man
ager
sin
crea
ses
man
ager
s’ho
nest
repo
rting
.Pos
t-con
vent
iona
lman
ager
sm
ayno
trep
ort
hone
stly
whe
nth
eype
rcei
veth
atw
ealth
betw
een
the
firm
and
man
ager
sis
notf
airly
dist
ribut
ed.
Take
Aw
ay M
essa
ge•
Dis
tribu
tiona
lfa
irnes
sen
hanc
esco
nven
tiona
lan
dpo
st-c
onve
ntio
nal
man
ager
s’ho
nest
repo
rting
.Th
efin
ding
high
light
sth
eim
porta
nce
ofdi
strib
utio
nalf
airn
ess
inin
cent
ive
cont
ract
s.
•Fa
irco
ntra
cts
cann
otim
prov
epr
e-co
nven
tiona
lm
anag
ers’
hone
stre
porti
ng.T
here
sults
sugg
ests
that
firm
sne
edto
desi
gna
mec
hani
smto
prev
entt
hese
man
ager
s’fro
mch
eatin
g.
Varia
bles
Coe
ffici
ents
Std.
Err
ort
Sig.
DIT
type
-pre
conv
entio
nal
4.14
0.82
15.
040.
0005
DIT
type
-con
vent
iona
l4.
690.
807
5.82
0.00
02
DIT
type
-pos
tcon
vent
iona
l4.
580.
797
5.75
0.00
02
Fairn
ess
*DIT
type
-pre
conv
entio
nal
0.10
0.14
20.
730.
4846
Fairn
ess
*DIT
type
-con
vent
iona
l0.
250.
090
2.77
0.01
98
Fairn
ess
*DIT
type
-pos
tcon
vent
iona
l0.
550.
143
3.86
0.00
31
Age
-0.2
10.
041
-5.0
90.
0005
Dep
ende
nt v
aria
ble
= ho
nest
y in
dex
.
Tabl
e 1
–R
egre
ssio
n R
esul
ts fo
r Poo
led
Dat
a
Spotlight on Research 2015 53
54 Schulich School of Business
Dis
cuss
ion
•Va
luat
ion
met
hods
mat
ters
inB
ullm
arke
t!
•A
naly
stin
dust
ryas
sess
men
t/kn
owle
dge
isan
impo
rtant
trait.
•A
nyot
hert
extm
essa
geto
extra
ctfro
man
alys
trep
orts
?
Text
ual A
naly
sis
of S
ell-s
ide
Ana
lyst
Rep
orts
Sam
ple
•1,
300,
000
repo
rtsby
over
5,00
0an
alys
tssi
nce
2002
from
Inve
stex
t
•7
outo
ftop
10ba
nks
wor
ldw
ide
•B
ullm
arke
t:fro
mth
etro
ugh
tope
akpe
riod
ofbu
sine
sscy
cle
(NB
ER
)
Text
ual A
naly
sis
•M
etho
ds:D
ictio
nary
appr
oach
vsM
achi
nele
arni
ng
•D
imen
sion
s:Te
xtto
nes,
read
abili
ty,
com
petit
ion,
valu
atio
nm
etho
ds,
peer
grou
p,no
n-fin
anci
alin
form
atio
n,fo
rwar
d-lo
okin
gst
atem
ent,
risk,
etc.
Exam
ples
of T
exts
from
Ana
lyst
Rep
orts
“We
are
mai
ntai
ning
our
Stro
ngB
uyra
ting
and
our
targ
etpr
ice
of$3
3pe
rsh
are,
whi
chis
base
don
am
ultip
leof
35x
our2
005
EP
Ses
timat
eof
$0.9
2.”
“The
trade
book
sin
dust
ryis
rela
tivel
ylo
wgr
owth
and
the
indu
stry
mod
elfa
ces
disr
uptio
nfro
mth
ead
vent
ofeB
ooks
,st
imul
atin
gdi
gita
lsa
les
but
depr
essi
ngph
ysic
alsa
les
and
reta
ileri
nfra
stru
ctur
e.”(L
agar
dère
)
Hon
gpin
g Ta
n an
d K
ee-H
ong
Bae
Acc
ount
ing
/ Fin
ance
are
a, S
chul
ich
Sch
ool o
f Bus
ines
s, Y
ork
Uni
vers
ity, T
oron
to, C
anad
a
Intr
oduc
tion
•B
rads
haw
(TA
R20
09)
iden
tifie
stw
obl
ack
boxe
sin
the
anal
ysts
’in
form
atio
npr
oces
sing
flow
char
t:“in
form
atio
npr
oces
sing
”an
d“v
alua
tion
blac
kbo
x”.
•Tr
ack
anal
ysts
’re
sear
chre
ports
tobe
tter
unde
rsta
ndth
eir
info
rmat
ion
proc
essi
ngsk
ills
and
valu
atio
nssk
ills.
•U
niqu
ela
rge
sam
ple
base
don
text
uala
naly
sis.
Pro
ject
was
par
tly fu
nded
by
SS
HR
C
Res
ults
•Va
riatio
nof
valu
atio
nm
etho
dsac
ross
bank
s,in
dust
ries
and
time.
•In
bull
mar
ket,
outp
erfo
rman
ceby
the
use
ofab
solu
teva
luat
ion
met
hods
.
•W
eex
pect
that
indu
stry
know
ledg
eim
prov
esan
alys
ts’
fore
cast
perfo
rman
ce.
Take
Aw
ay M
essa
ge•
Trac
king
anal
ysts
’inf
orm
atio
nso
urce
and
deci
sion
proc
ess.
•Q
ualit
ativ
ein
form
atio
nm
atte
rs!
•R
ead
anal
ystr
epor
tsbe
twee
nth
elin
es.
Hyp
othe
ses
•H
1A:A
naly
sts
are
less
likel
yto
use
abso
lute
valu
atio
nm
etho
dsin
abu
ll
mar
kett
han
ina
bear
mar
ket.
•H
1B:S
tock
reco
mm
enda
tions
base
don
abso
lute
valu
atio
nm
etho
dsar
e
mor
eac
cura
tein
abu
llm
arke
t.
•H
2:Th
eus
eof
indu
stry
/mac
roin
form
atio
nis
posi
tivel
yre
late
dto
anal
yst
fore
cast
perfo
rman
ce(a
ccur
acy
and
mar
ketr
eact
ion)
.
Figu
re 1
: Ana
lyst
fore
cast
fram
ewor
k
Figu
re 2
: Val
uatio
n m
etho
ds b
y ye
ar
Figu
re 3
: Tex
tual
ana
lysi
s flo
w
54 Schulich School of Business
Prob
lem
If a
priv
ate
com
pany
ope
rate
s in
the
sam
e in
dust
ry a
s a
publ
ic c
ompa
ny, t
he
com
petit
ive
Bet
a ca
n be
ca
lcul
ated
us
ing
stoc
k pr
ice
data
fro
m
the
com
para
ble
publ
ic c
ompa
ny.
•H
owev
er,
a pr
oble
m a
rises
whe
n th
e B
eta
of a
priv
ate
com
pany
ne
eds
to b
e ca
lcul
ated
, an
d th
ere
is n
o pu
blic
ly l
iste
d fir
m t
hat
excl
usiv
ely
oper
ates
in th
e sa
me
sect
or (i
.e. n
o pu
re p
laye
r – P
uPl).
Reg
ulat
or’s
Det
erm
inat
ion
of R
etur
n on
Equ
ity in
the
Abs
ence
of P
ublic
Firm
s:
The
Cas
e of
Aut
omob
ile In
sura
nce
in O
ntar
io
Cur
rent
App
roac
hIn
real
ity, t
here
are
gen
eral
ly v
ario
us p
ublic
com
pani
es th
at h
ave
a su
bsec
tor
that
ope
rate
s in
the
sam
e ac
tivity
as
the
priv
ate
com
pany
. To
arriv
e at
the
best
so
lutio
n, o
ne s
houl
d in
clud
e va
rious
ava
ilabl
e pu
blic
com
pani
es th
at h
ave
sub
grou
ps th
at o
pera
te in
the
sam
e se
ctor
as
the
priv
ate
com
pany
.
Ehr
hard
t and
Bha
gwat
(199
1) s
ugge
sted
an
appr
oach
by
empl
oyin
g a
bias
ed
estim
ator
to e
ach
com
pany
sep
arat
ely.
We
conj
unct
that
if tw
o fir
ms
have
m
utua
l act
iviti
es (s
ecto
rs) t
hen
estim
atin
g th
eir t
otal
bet
a se
para
tely
is
inco
nsis
tent
. It a
llow
s th
e be
ta o
f the
sam
e ac
tivity
in e
ach
firm
to h
ave
a di
ffere
nt v
alue
, con
tradi
ctin
g ge
nera
l the
ory.
Fred
Laz
ar a
nd E
lieze
r Z. P
rism
an
Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada
Intr
oduc
tion
Bet
a is
a ri
sk m
easu
re w
ithin
the
Cap
ital A
sset
Pric
ing
Mod
el (C
AP
M) u
sed
to
capt
ure
the
rela
tions
hip
betw
een
a co
mpa
ny’s
retu
rn a
nd th
e ge
nera
l mar
ket
retu
rn. I
t rep
rese
nts
the
prem
ium
or d
isco
unt t
he c
ompa
ny re
turn
s to
an
inve
stor
(rel
ativ
e to
the
mar
ket);
theo
retic
ally
refle
ctin
g th
e ris
k em
bedd
ed in
the
com
pany
. B
eta
is u
sed
for i
nves
tmen
t dec
isio
ns, v
alua
tions
, and
in p
artic
ular
util
ized
by
regu
lato
rs to
set
the
allo
wed
Ret
urn
on E
quity
(RO
E) o
f a re
gula
ted
firm
, at
tem
ptin
g to
refle
ct th
e pr
emiu
m/d
isco
unt t
he c
ompa
ny w
ould
be
retu
rnin
g in
a
com
petit
ive
mar
ket.
Fo
r a p
ublic
com
pany
, the
Bet
a is
est
imat
ed b
y re
gres
sing
the
stoc
k’s
rate
of
retu
rn a
gain
st th
e m
arke
t’s ra
te o
f ret
urn.
.
Solu
tion
The
Bet
a of
this
priv
ate
com
pany
can
be
calc
ulat
ed b
y st
rippi
ng o
ut th
e B
eta
of th
e re
late
d su
b-se
ctor
of t
he p
ublic
com
pany
.
For e
xam
ple,
if th
e pu
blic
com
pany
ope
rate
s in
bot
h th
e au
tom
otiv
e &
ho
usin
g se
ctor
s, th
ere
is a
way
to s
trip
out t
he B
eta
of ju
st th
e au
tom
otiv
e se
ctor
and
app
ly it
to o
ur p
rivat
e co
mpa
ny th
at o
pera
tes
sole
ly in
the
auto
mot
ive
sect
or.
This
is d
one
by e
mpl
oyin
g th
e B
eta
prop
erty
that
sta
tes:
For
a fi
rm (o
r po
rtfol
io) c
ompo
sed
of v
ario
us a
ctiv
ities
(st
ocks
), th
e fir
m’s
Bet
a is
the
wei
ghte
d av
erag
e of
the
beta
of t
he a
ctiv
ities
.
Our
App
roac
hW
e de
velo
ped
a m
etho
dolo
gy
(1-P
hase
FIM
) in
whi
ch t
he b
eta
of a
ll th
e co
mpo
nent
s ar
e es
timat
ed b
ased
on
the
aggr
egat
e da
ta o
f all
of fi
rms
that
are
en
gage
d in
mul
ti-ac
tiviti
es .
Onc
e th
e be
ta c
ompo
nent
s ar
e es
timat
ed,
the
tota
l be
ta o
f ea
ch c
an b
e bu
ilt g
iven
the
per
cent
age
of b
usin
ess
in e
ach
activ
ity.
•U
sing
this
met
hod,
unl
ike
the
curr
ent a
cade
mic
app
roac
h, th
e B
eta
of
the
sam
e su
b-ac
tivity
, ev
en i
n di
ffere
nt c
ompa
nies
, w
ill h
ave
the
sam
e B
eta.
App
licat
ion
•W
e ut
ilize
d th
ism
etho
dolo
gyto
estim
ate
the
RO
E of
Priv
ate
Aut
omob
ile I
nsur
ance
, a
regu
late
din
dust
ryin
Ont
ario
, as
ther
ear
e no
PuP
l in
Ont
ario
.
•W
eal
soga
uge
the
diffe
renc
ebe
twee
n th
e be
taes
timat
eba
sed
onou
rap
proa
chvs
.Ehr
hard
tand
Bha
gwat
(199
1) a
ppro
ach,
and
the
diffe
renc
e is
sig
nific
ant.
Con
clus
ions
Th
eore
tical
ly th
e pr
oper
opt
imiz
atio
n pr
oble
m to
est
imat
e be
tas
for d
iffer
ent
lines
of b
usin
ess
is th
e on
e-st
ep m
etho
d . E
ven
the
beta
of e
ach
com
pany
sh
ould
hav
e be
en e
stim
ated
util
izin
g th
e on
e-st
ep m
etho
d su
gges
ted
here
. Th
is w
ould
hav
e re
quire
d pa
rtitio
ning
the
set o
f all
com
pani
es in
the
mar
ket
to s
ubse
ts, s
o th
at th
e se
t of l
ines
of b
usin
ess
prac
ticed
in e
ach
subs
et o
f co
mpa
nies
are
dis
join
t .
•Th
e pa
per su
ppor
ts the
pro
posi
tion
that
theo
retic
ally
the prop
er op
timiz
atio
n
•
.
•
2-P
hase
Met
hod
1-P
hase
Met
hod
Spotlight on Research 2015 55
56 Schulich School of Business
Hyp
othe
ses
•H
ypot
hesi
s1:
Gen
der
dive
rsity
onbo
ards
ofdi
rect
ors
miti
gate
sth
e
frequ
ency
offra
ud.
•H
ypot
hesi
s2:
Am
ore
gend
er-d
iver
sebo
ard
miti
gate
sth
ese
verit
yof
fraud
.
•H
ypot
hesi
s3:
The
impa
ctof
fem
ale
dire
ctor
sis
stro
nger
inm
ale-
dom
inat
edin
dust
ries
than
fem
ale-
dom
inat
edin
dust
ries.
Gen
der D
iver
sity
and
Sec
uriti
es F
raud
Met
hod
•20
01–
2010
,Chi
naS
ecur
ities
Reg
ulat
ory
Com
mis
sion
,CS
RC
•Th
ree
crite
riafo
rsel
ectin
gno
-frau
dfir
ms
fort
heco
ntro
lfirm
grou
p
•st
ock
exch
ange
loca
tion
(Sha
ngha
iorS
henz
hen)
•in
dust
ryty
pe(u
tiliti
es,
prop
erty
and
cons
truct
ion,
cong
lom
erat
es,
indu
stria
land
man
ufac
turin
g,or
com
mer
cial
)
•fir
msi
ze(to
tala
sset
s)
•A
ssig
n74
2no
-frau
dfir
ms
toth
eco
ntro
lfirm
grou
p;th
isco
ntro
lgro
upis
then
anal
yzed
alon
gsid
eth
e74
2fra
udfir
ms
inth
esa
mpl
efir
mgr
oup
Dou
glas
Cum
min
g1 , T.
Y. L
eung
2 , O
liver
Rui
3
1 Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada,
2 Uni
vers
ity o
f Tor
onto
, Tor
onto
, Can
ada,
3 Ope
n U
nive
rsity
of H
ong
Kon
g, 3 C
hina
Eur
ope
Inte
rnat
iona
l Bus
ines
s S
choo
l
Intr
oduc
tion
•W
omen
are
unde
rrepr
esen
ted
onbo
ards
ofdi
rect
ors.
•Ty
pica
lcou
ntrie
slik
eA
ustra
lia,C
anad
a,C
hina
,and
the
US
:10%
wom
en.
•O
nepo
ssib
lebe
nefit
ofw
omen
:red
uce
corp
orat
efra
ud(n
ever
test
ed)
•E
thic
ality
•R
isk
Aver
sion
•D
iver
sity
•W
eus
eda
mas
sive
data
setf
rom
Chi
nato
test
this
idea
(firs
ttim
eev
er).
Figu
re 1
. C
umul
ativ
e Ab
norm
al R
etur
ns
This
pap
er is
con
ditio
nally
acc
epte
d at
Aca
dem
y of
Man
agem
ent J
ourn
ali(2
015)
.
Ack
now
ledg
emen
ts: W
e ap
prec
iate
hel
pful
com
men
ts fr
om S
ofia
Joh
anP
roje
ct w
as fu
nded
by
SS
HR
C
Res
ults
•S
igni
fican
t effe
ct o
f wom
en o
n bo
ards
, eve
n af
ter c
ontro
l for
endo
gene
ity.
•M
ean
leve
l of w
omen
on
the
boar
d is
app
roxi
mat
ely
13%
.
•1
stan
dard
dev
iatio
n in
crea
se in
% w
omen
from
the
mea
n ca
uses
:
•14
% re
duct
ion
in p
roba
bilit
y of
frau
d
•15
.4%
in m
ale
dom
inat
ed in
dust
ries
•13
.4%
in fe
mal
e do
min
ated
indu
strie
s
•25
% le
ss p
rono
unce
d ef
fect
on
shar
e pr
ices
afte
r 20
days
•27
.6%
less
pro
noun
ced
in m
ale
dom
inat
ed in
dust
ries
•24
.5%
less
pro
noun
ced
in fe
mal
e do
min
ated
indu
strie
s
•N
onlin
ear:
Ben
efit
of m
ore
wom
en in
crea
ses
at a
dec
reas
ing
rate
.
Dis
cuss
ion
•Im
porta
ntfo
rth
ede
sign
onco
rpor
ate
boar
ds,
incl
udin
gO
ntar
io,
and
man
yot
her
coun
tries
arou
ndth
ew
orld
,w
hich
are
impo
sing
am
inim
um
%of
wom
enre
quire
don
boar
ds.
•Im
porta
ntfo
rot
her
cont
exts
asw
ell,
incl
udin
gbu
tno
tlim
ited
to
Uni
vers
ities
,w
here
bad
corp
orat
ego
vern
ance
onco
mm
ittee
sw
ithou
t
dive
rsity
can
lead
toill
egal
and/
orun
ethi
calb
ehav
ior.
Take
Aw
ay M
essa
ge•
Res
ults
dono
tim
ply
that
100%
wom
enon
the
boar
dis
optim
alfo
r
redu
cing
fraud
;Ins
tead
,div
ersi
tyis
impo
rtant
forr
educ
ing
fraud
.
•D
iver
sity
has
unde
r-app
reci
ated
corp
orat
ego
vern
ance
bene
fits.
•A
pplie
sin
allt
ypes
ofor
gani
zatio
ns:s
cope
forf
utur
ere
sear
ch,a
ndfo
r
impr
ovin
ggo
vern
ance
inpr
actic
ein
com
pani
es,u
nive
rsiti
es,a
ndot
her
type
sof
orga
niza
tions
.
Mal
e-do
min
ated
Indu
stry
Fem
ale-
dom
inat
ed In
dust
ry
Pro
babi
lity
of C
omm
ittin
g Fr
aud
Mar
gina
l Effe
ctp-
valu
eM
argi
nal E
ffect
p-va
lue
Inte
rcep
t4.
2873
0.01
-4.5
646
0.29
Fem
ale
Dire
ctor
Rat
io (L
N)
-2.2
220.
00**
-1.9
360.
00**
CH
Fem
ale
-0.0
980.
20-0
.394
0.16
GM
Fem
ale
0.10
00.
180.
055
0.67
Mul
tiple
Dire
ctor
Rat
io-0
.148
0.27
-0.5
670.
08Av
erag
e A
ge-0
.017
0.00
**0.
001
0.96
Aver
age
Edu
catio
n-0
.020
0.08
-0.0
770.
00**
Inde
pend
ent D
irect
or R
atio
0.36
70.
181.
030
0.08
CE
O D
ualit
y0.
007
0.88
0.08
00.
39B
oard
Siz
e0.
012
0.13
0.04
40.
01**
Boa
rd M
eetin
g0.
004
0.50
0.03
10.
04*
Sup
ervi
sor M
eetin
g0.
015
0.17
-0.0
470.
04*
Firm
Siz
e-0
.011
0.62
0.06
60.
21Le
vera
ge0.
247
0.02
*-0
.044
0.84
RO
A-1
.922
0.00
**-2
.649
0.00
**C
entra
l SO
E0.
013
0.80
-0.1
840.
13Lo
cal S
OE
-0.0
790.
04*
-0.3
520.
00**
Year
Dum
mie
s In
clud
edYe
sYe
s
Indu
stry
Dum
mie
s In
clud
edYe
sYe
s
N11
6531
9
-0.8
0%
-0.6
0%
-0.4
0%
-0.2
0%
0.00
%
0.20
%
0.40
%
12
34
56
78
910
1112
1314
1516
1718
1920
With
Fem
ale
Dire
ctor
sW
ithou
t Fem
ale
Dire
ctor
s
56 Schulich School of Business
Res
earc
hQ
uest
ions
•Is
the
nom
inal
stoc
kpr
ice
anch
oron
lyU
Sph
enom
enon
?
•H
owab
outo
ther
mar
kets
?
•If
itis
aw
orld
wid
eph
enom
enon
,how
dofir
ms
mai
ntai
nth
eir
shar
epr
ice
leve
ls?
Nom
inal
Sto
ck P
rice
Anc
hors
: A G
loba
l Phe
nom
enon
?
Met
hod
•C
olle
ctno
min
alst
ock
pric
esof
firm
slis
ted
ona
coun
try’s
mai
nst
ock
exch
ange
atth
een
dof
June
inea
chye
arfo
r39
coun
tries
from
1981
to20
10(2
1,40
4fir
ms)
•P
erfo
rmin
divi
dual
firm
leve
lan
alys
is:
unit-
root
test
,tre
ndan
alys
is,
regr
essi
onan
alys
is
Kee
-Hon
g B
ae1 ,
Utp
al B
hatta
char
ya2 ,
Jiso
k K
ang1 ,
S. G
hon
Rhe
e3
1 Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
,2 Hon
g K
ong
Uni
vers
ity o
f Sci
ence
and
Tec
hnol
ogy,
3 Shi
dler
Col
lege
of B
usin
ess,
Uni
vers
ity o
f Haw
aii a
t Man
oa, U
SA
Intr
oduc
tion
Wel
d,M
icha
ely,
Thal
eran
dB
enar
tzi(
2009
)fin
dav
erag
eno
min
alpr
ice
for
a
shar
ein
NYS
Eha
sbe
enab
out$
35si
nce
the
Gre
atD
epre
ssio
n.
•Th
epr
ice
did
note
ven
keep
pace
with
the
infla
tion
rate
s.
•A
viab
leex
plan
atio
nm
aybe
the
anch
orin
ghy
poth
esis
.
Anc
horin
gis
aco
gniti
vebi
asth
atde
scrib
esth
eco
mm
onhu
man
tend
ency
tore
lyhe
avily
onth
efir
stpi
ece
ofin
form
atio
nof
fere
dw
hen
mak
ing
deci
sion
s.
Res
ults
•M
edia
nno
min
alst
ock
pric
esac
ross
coun
trie
ssh
ows
larg
e
varia
tion
buta
lso
strik
ingl
yst
able
:Hig
hst
ays
high
,low
stay
slo
w!
•M
ost
(60%
)of
our
sam
ple
firm
sdo
not
have
unit
root
inth
eir
nom
inal
pric
es.A
mon
gfir
ms
with
noun
itro
ot,m
ostf
irms
(60%
)do
noth
ave
time
serie
stre
nds
inpr
ices
.
•Th
ere
gres
sion
resu
ltssh
owth
ein
itial
stoc
kpr
ice
isth
ebe
st
pred
icto
rof
curr
entn
omin
alst
ock
pric
es.
Dis
cuss
ion
•Fi
rm’s
nom
inal
sto
ck p
rices
hav
e te
nden
cy to
reve
rt ba
ck to
thei
r ini
tial
stoc
k pr
ice
leve
l (th
e ‘a
ncho
r’).
•It
is m
ainl
y du
e to
cor
pora
te a
ctio
ns s
uch
as s
tock
spl
its, d
ivid
end
payo
ut, o
r eve
n re
vers
e st
ock
split
s.
Take
Aw
ay M
essa
ge•
The
nom
inal
pric
e fix
atio
n se
ems
to b
e a
glob
al p
heno
men
on.
•W
hy th
is h
appe
ns re
mai
ns a
puz
zle.
Tren
d of
med
ian
nom
inal
sto
ck p
rice
arou
nd th
e w
orld
in U
S$
020406080100
120
140
1981
1986
1991
1996
2001
2006
med
ian
nom
inal
pric
em
edia
n to
tal r
etur
n pr
ice
equa
l-wei
ghte
d in
dex
valu
e-w
eigh
ted
inde
x
05101520253035404550
Can
ada
Fran
ceG
erm
any
Italy
Japa
nU
.K.
U.S
.
Med
ian
nom
inal
sto
ck p
rice
of G
7 co
untr
ies
in U
S$
Figu
re 1
Figu
re 2
Spotlight on Research 2015 57
58 Schulich School of Business
Beh
avio
ral F
inan
ce a
nd Im
plic
atio
ns fo
r Sea
sona
lity
in A
sset
Mar
kets
Mar
k K
amst
ra1 ,
Lisa
Kra
mer
2 , M
auric
e Le
vi3 ,
Rus
s W
erm
ers4
1 Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada,
2U
nive
rsity
of T
oron
to, T
oron
to, C
anad
a, 3 U
nive
rsity
of B
ritis
h C
olum
bia,
Brit
ish
Col
umbi
a, C
anad
a, 4 U
nive
rsity
of M
aryl
and,
Mar
ylan
d, U
SA4
Intr
oduc
tion
•M
any
serio
us m
arke
t cra
shes
hav
e oc
curr
ed in
the
fall:
Oct
ober
192
9, O
ctob
er 1
987,
Sep
tem
ber/O
ctob
er 2
008
•B
efor
e th
e U
S F
eder
al R
eser
ve b
egan
sta
biliz
ing
the
mon
ey s
uppl
y, b
ank
runs
occ
urre
d in
the
US
eve
ry 3
-5 y
ears
, typ
ical
ly in
the
fall.
•
Cer
tain
ly th
ere
wer
e im
porta
nt e
cono
mic
trig
gers
for
thes
e ev
ents
, but
mig
ht
hum
an p
sych
olog
y ha
ve p
laye
d a
role
as
wel
l? P
erha
ps e
mot
ions
mat
ter?
•
We
stud
y th
e im
pact
of S
easo
nal A
ffect
ive
Dis
orde
r (S
AD
) on
mar
kets
. •
SA
D a
ppea
rs t
o ca
use
heig
hten
ed r
isk
aver
sion
in in
vest
ors
in t
he f
all a
nd
win
ter,
impa
ctin
g
Equ
ity m
arke
ts (
low
er p
rices
in
fall)
, Tr
easu
ry m
arke
ts (
high
er i
n fa
ll),
mut
ual
fund
flo
ws,
IP
O p
rices
, bi
d/as
k sp
read
s an
d vo
latil
ity i
n pr
ices
(V
IX).
•In
pre
viou
s w
ork
my
co-a
utho
rs a
nd I
find:
a di
stin
ct s
easo
nal p
atte
rn in
equ
ity re
turn
s:
Th
e ef
fect
is m
ore
pron
ounc
ed a
t ext
rem
e la
titud
es.
Th
e ef
fect
is
di
spla
ced
by
six
mon
ths
in
sout
hern
he
mis
pher
e co
untri
es, a
s ar
e th
e se
ason
s.
an
d an
’opp
osin
g’ p
atte
rn in
saf
e U
.S. T
reas
ury
secu
rity
retu
rns.
•
The
seas
onal
ity in
retu
rns
impl
ies
that
:
Inve
stor
s te
nd t
o sh
un r
isky
ass
ets
and
favo
r sa
fe a
sset
s in
the
fal
l, co
inci
dent
with
dim
inis
hing
day
light
.
As
days
len
gthe
n th
roug
h w
inte
r an
d sp
ring,
inv
esto
rs t
end
to r
esum
e w
illing
ness
to h
old
risky
ass
ets.
Ack
now
ledg
emen
ts:
We
grat
eful
ly a
ckno
wle
dge
the
finan
cial
sup
port
of t
he S
ocia
l S
cien
ces
and
Hum
aniti
es R
esea
rch
Cou
ncil
of C
anad
a, a
nd w
e th
ank
the
Inve
stm
ent
Com
pany
Ins
titut
e, t
he I
nves
tmen
t Fu
nds
Inst
itute
of
Can
ada,
and
Mor
ning
star
for
ge
nero
usly
pro
vidi
ng m
uch
of th
e da
ta u
sed
in th
is s
tudy
.
Dis
cuss
ion
and
Take
aw
ay
•Th
ere
exis
t st
rikin
g se
ason
al p
atte
rns
in i
nter
natio
nal
equi
ty r
etur
ns a
nd
US
Tre
asur
y re
turn
s.
•Th
e pa
ttern
s in
retu
rns
are
cons
iste
nt w
ith s
easo
nally
var
ying
inve
stor
risk
pr
efer
ence
. •
Qua
ntity
-bas
ed e
vide
nce
from
mut
ual f
und
flow
s su
ppor
t thi
s vi
ew.
Sea
sona
lity
in
Ris
k Av
ersi
on
Sea
sona
lity
in M
ood
(in
clud
ing
depr
essi
on)
Sea
sona
lity
in
Fina
ncia
l Mar
kets
Figu
re 2
Mon
ey M
arke
t
% F
low
s (S
afe
Ass
ets)
Eq
uity
Mar
ket
% F
low
s (R
isky
Ass
ets)
Figu
re 1
Pred
icte
d M
onth
ly C
anad
ian
Flow
s,
Bill
ions
$
Figu
re 3
Figu
re 4
Pred
icte
d M
onth
ly U
S Fl
ows,
B
illio
ns $
R
esea
rch
Que
stio
ns
Trill
ions
of d
olla
rs a
re h
eld
in m
utua
l fun
ds a
roun
d th
e w
orld
, and
mon
thly
flow
s in
to a
nd o
ut o
f the
se fu
nds
amou
nt to
tens
of b
illion
s.
•Is
sea
sona
lity
in m
ood
impa
ctin
g th
ese?
•
Is th
is s
easo
nalit
y ex
agge
rate
d in
Can
ada
rela
tive
the
US
? •
Is it
reve
rsed
in A
ustra
lia?
Met
hod
•W
e pr
imar
ily r
ely
on r
egre
ssio
n an
alys
is t
o de
term
ine
the
stre
ngth
and
si
gnifi
canc
e of
the
corr
elat
ion
of S
AD
ons
et/re
cove
ry w
ith fl
ows
into
and
out
of
bro
ad f
und
cate
gorie
s (m
oney
mar
ket,
equi
ty,
hybr
id,
bond
fun
ds)
in t
he
US
A, C
anad
a an
d A
ustra
lia, o
ver t
he la
st 2
5 ye
ars
or s
o.
•W
e lo
ok a
t ne
t flo
ws
and
net
exch
ange
s, c
ontro
lling
for
cap
ital
gain
s ov
erha
ng,
tax
year
, pe
rson
al
savi
ngs,
ad
verti
sing
, re
turn
-cha
sing
, an
d au
toco
rrel
atio
n.
•Th
e re
gres
sion
ap
proa
ches
in
clud
e se
emin
gly
unre
late
d sy
stem
s-of
-eq
uatio
ns r
egre
ssio
n, g
ener
aliz
ed m
etho
d-of
-mom
ents
and
sim
ple
ordi
nary
le
ast s
quar
es e
stim
atio
n te
chni
ques
.
In F
igur
e 1
we
see
stro
ng
seas
onal
ity in
the
onse
t of
and
reco
very
from
SA
D.
This
sea
sona
lity
is m
irror
ed
in fl
ows,
sho
wn
in F
igur
e 2.
Res
ults
•
We
find
flow
s ar
e in
deed
stro
ngly
cor
rela
ted
with
ons
et/re
cove
ry (
OR
). E
quity
flow
s de
crea
se in
the
fall
and
mon
ey m
arke
t flo
ws
incr
ease
. •
Sim
ilar r
esul
ts h
old
for C
anad
a an
d A
ustra
lia.
58 Schulich School of Business
Res
earc
h Q
uest
ions
•
How
to
redu
ce i
nfor
mat
ion
asym
met
ries
betw
een
priv
ate
equi
ty f
und
man
ager
s an
d in
stitu
tiona
l inv
esto
rs?
•A
re th
ere
any
miti
gatin
g ef
fect
s fro
m re
porti
ng fr
eque
ncie
s?
•D
o ou
r an
swer
s de
pend
on
diffe
rent
sto
ck m
arke
t, le
gal,
fund
and
cultu
re c
hara
cter
istic
s?
Rep
ortin
g B
ias
in P
rivat
e Eq
uity
: Rep
ortin
g Fr
eque
ncy,
End
owm
ents
, and
Gov
erna
nce
Met
hod
•D
etai
led
Mea
ns a
nd M
edia
ns T
ests
acr
oss
diffe
rent
cha
ract
eris
tics
•S
tand
ard
Pan
el d
ata
regr
essi
on
•Va
rious
robu
stne
ss c
heck
s
Sof
ia J
ohan
1,2 a
nd M
injie
Zha
ng1
1 Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada,
2Ti
lbur
g La
w a
nd E
cono
mic
s C
entre
, The
Net
herla
nds
Abs
trac
t U
sing
Pitc
hBoo
k’s
priv
ate
equi
ty (
PE
) da
taba
se o
f 5,
068
PE
fun
ds f
rom
44
coun
tries
for
the
200
0 to
201
2 pe
riod,
we
show
tha
t en
dow
men
ts a
re
syst
emat
ical
ly a
ssoc
iate
d w
ith le
ss p
rono
unce
d di
ffere
nces
bet
wee
n re
porte
d
unre
aliz
ed re
turn
s an
d su
bseq
uent
ly re
aliz
ed re
turn
s. M
oreo
ver,
endo
wm
ents
re
ceiv
e m
ore
frequ
ent
repo
rts f
rom
the
ir P
E f
unds
, im
plyi
ng m
ore
strin
gent
go
vern
ance
.
We
find
that
hig
her r
epor
ting
frequ
enci
es fr
om P
E fu
nds
are
corre
late
d w
ith a
lo
wer
ten
denc
y fo
r th
e lim
ited
partn
ers
to r
ecei
ve o
vers
tate
d pe
rform
ance
re
ports
(th
e di
ffere
nce
betw
een
real
ized
ret
urns
and
rep
orte
d un
real
ized
re
turn
s).
Thes
e fin
ding
s pe
rsis
t afte
r co
ntro
lling
for
stoc
k m
arke
t con
ditio
ns, l
egal
and
ac
coun
ting
disc
losu
re
envi
ronm
ents
, le
gal
orig
ins,
fu
nd
and
GP
char
acte
ristic
s, li
mite
d pa
rtner
ship
type
s, a
s w
ell a
s cu
ltura
l dim
ensi
ons.
Figu
res
Ack
now
ledg
emen
ts: W
e ap
prec
iate
the
supp
ort o
f SS
HR
C.
Pro
ject
was
fund
ed b
y S
SH
RC
Res
ults
•
Rep
ortin
g fre
quen
cy w
ill po
sitiv
ely
impa
ct r
ealiz
ed P
E f
und
retu
rns,
and
ne
gativ
ely
impa
ct u
nrea
lized
PE
fund
ret
urns
and
ove
rsta
tem
ents
in fu
nd
perfo
rman
ce re
ports
.
•D
urin
g de
terio
ratin
g m
arke
t co
nditi
ons,
in
co
untri
es
whe
re
lega
l an
d ac
coun
ting
stan
dard
s ar
e w
eake
r, P
E fi
rms
with
poo
rer
track
rec
ords
and
P
E fu
nds
taki
ng ri
skie
r pos
ition
s in
ear
ly-s
tage
inve
stm
ents
are
mor
e lik
ely
to o
vers
tate
per
form
ance
. Und
er s
uch
cond
ition
s, r
epor
ting
frequ
ency
will
m
itiga
te p
oten
tial o
vers
tate
men
ts.
•A
cros
s co
untri
es a
nd o
ver
year
s, e
ndow
men
ts a
s in
vest
ors
will
perfo
rm
rela
tivel
y be
tter
than
oth
er l
imite
d pa
rtner
s by
obt
aini
ng h
ighe
r re
aliz
ed
retu
rns,
low
er u
nrea
lized
ret
urns
, le
ss i
nfla
ted
perfo
rman
ce r
epor
ts,
and
high
er re
porti
ng fr
eque
ncie
s fro
m P
E fu
nd m
anag
ers.
Dis
cuss
ion
•R
epor
ting
frequ
ency
can
eith
er s
tand
as
a go
od g
over
nanc
e ef
fort
from
PE
fund
man
ager
s, o
r as
a go
od m
onito
ring
effo
rt fro
m L
Ps.
•Th
e ef
ficie
ncy
of c
apita
l inv
estm
ents
will
incr
ease
bec
ause
pos
sibl
e pe
rform
ance
ov
erst
atem
ents
w
ill be
re
duce
d,
and
the
nega
tive
impa
ct o
n re
puta
tions
will
be re
duce
d.
•It
is u
sefu
l for
pol
icym
aker
s an
d fo
r mar
ket m
onito
rs.
Con
clus
ions
•
The
high
er th
e re
porti
ng fr
eque
ncie
s fro
m a
PE
fund
, the
low
er th
e ch
ance
the
lim
ited
partn
ers
will
rece
ive
over
stat
ed p
erfo
rman
ce
repo
rts;
•E
ndow
men
ts p
erfo
rm r
elat
ivel
y be
tter
com
pare
d to
oth
er L
Ps a
s in
stitu
tiona
l inv
esto
rs in
priv
ate
equi
ty in
vest
men
ts.
0
0.51
1.52
2.53
3.5
01
23
45
67
89
10
End
owm
ent
Pub
lic P
ensi
on F
und
Insu
ranc
e C
ompa
ny
Figu
re 1
B: R
epor
ting
Freq
uenc
y th
roug
h Fu
nd L
ife
-1.5-1
-0.50
0.51
1.5
01
23
45
67
89
10
End
owm
ent
Pub
lic P
ensi
on F
und
Insu
ranc
e C
ompa
ny
Figu
re 1
A: D
iffer
ence
bet
wee
n La
gged
RVP
I and
DPI
thro
ugh
Fund
Life
0
0.2
0.4
0.6
0.81
1.2
1.4
1.6
1.8
01
23
45
67
89
10
End
owm
ent
Pub
lic P
ensi
on F
und
Insu
ranc
e C
omap
ny
Figu
re 1
D: D
PI th
roug
h Fu
nd L
ife
0
0.2
0.4
0.6
0.81
1.2
1.4
01
23
45
67
89
10
End
owm
ent
Pub
lic P
ensi
on F
und
Insu
ranc
e C
ompa
ny
Figu
re 1
E: R
VPI t
hrou
gh F
und
Life
Car
toon
use
d w
ith p
erm
issi
on fr
om P
ensi
ons
& In
vest
men
ts, O
ct 1
7, 2
011
Cop
yrig
ht C
rain
Com
mun
icat
ions
, Inc
.
Spotlight on Research 2015 59
60 Schulich School of Business
Res
earc
hQ
uest
ions
The
ques
tion
we
pose
isa
ques
tion
dire
cted
atth
esu
stai
nabi
lity
field
asa
who
le:
Sin
cew
eal
lkno
wth
atth
een
viro
nmen
tals
ituat
ion
isde
sper
ate
and
ourc
urre
ntap
proa
ches
are
woe
fully
inad
equa
teto
incu
rany
mea
ning
ful
chan
ge,
•w
hydo
we
cont
inue
toac
tas
ifw
hatw
ear
edo
ing
can
chan
geth
eco
urse
ofen
viro
nmen
tald
estru
ctio
n?
•O
rm
ore
succ
inct
lyou
rqu
estio
nis
this
:wha
tallo
ws
scho
lars
and
prac
titio
ners
tosu
stai
nw
hatw
ekn
owfa
rto
ow
elli
san
unsu
stai
nabl
est
ate
ofaf
fairs
?
•O
rmor
ege
nera
lly:H
owco
me
that
even
thou
ghw
eal
lkno
w,w
eac
tas
ifw
edo
n’t?
The
Fiel
d of
Bus
ines
s Su
stai
nabi
lity
and
the
Dea
th D
rive:
A R
adic
al In
terv
entio
nA
lan
Bra
dsha
w1
and
Det
lev
Zwic
k2
1R
oyal
Hol
low
ay, U
nive
rsity
of L
ondo
n, E
ngla
nd,2 S
chul
ich
Sch
ool o
f Bus
ines
s, Y
ork
Uni
vers
ity, T
oron
to, C
anad
a
Abs
trac
tIn
this
pape
rwe
sugg
estt
hatt
hega
pbe
twee
nan
auth
entic
ally
ethi
calc
onvi
ctio
nof
sust
aina
bilit
yan
da
beha
viou
rth
atav
oids
conf
ront
ing
the
terri
fyin
gre
ality
ofits
ethi
calp
oint
ofre
fere
nce
isch
arac
teris
ticof
the
field
ofbu
sine
sssu
stai
nabi
lity.
We
dono
tac
cuse
the
field
ofbu
sine
sssu
stai
nabi
lity
ofet
hica
lsh
ortc
omin
gson
the
acco
unt
ofth
isat
titud
e-be
havi
ourg
ap.I
fany
thin
g,w
ecl
aim
the
oppo
site
,nam
ely
that
ther
ere
side
san
ethi
cals
ince
rity
inth
eco
nvic
tions
ofbu
sine
sssc
hola
rsto
entru
stca
pita
lism
and
capi
talis
tsw
ithth
em
amm
oth
task
ofre
vers
ing
the
terri
fyin
gre
ality
ofec
olog
ical
deva
stat
ion.
Yet,
the
very
illus
ory
natu
reof
this
belie
fin
capi
talis
m’s
capt
ains
tosa
veus
from
the
envi
ronm
enta
llyde
vast
atin
gef
fect
sof
capi
talis
mgi
ves
this
ethi
cal
stan
cea
tragi
cbe
auty
.W
hile
sinc
ere
and
auth
entic
,it
neve
rthel
ess
isan
ethi
cals
tanc
eth
atre
lies
onan
“exc
lusi
onar
yge
stur
eof
refu
sing
tose
e”(Ž
ižek
2008
,p.5
2),w
hati
nps
ycho
anal
ysis
isre
ferre
dto
asa
fetis
hist
disa
vow
alof
real
ity.
We
subm
itth
atth
isdi
savo
wal
isfe
tishi
stbe
caus
eth
eac
tis
not
sim
ply
one
ofre
pres
sing
the
real
.If
itw
as,
we
wou
ldrig
htly
expe
ctth
atw
eco
uld
alls
eeth
etru
thif
we
only
prov
ide
mor
eor
bette
rinf
orm
atio
nto
fillt
hesu
bjec
t’sla
ckof
know
ledg
e.Th
epr
oble
mis
that
the
fetis
hist
trans
fers
afa
ntas
yof
the
real
asth
ere
al.
Inth
eca
seof
dest
ruct
ive
capi
talis
m,
the
fetis
hist
disa
vow
sth
atpa
rticu
lar
real
ityby
belie
ving
inan
othe
r,th
ussu
bjec
tivel
yne
gatin
gth
ela
ck(o
rga
p).
Ther
efor
e,fro
mth
epe
rspe
ctiv
eof
psyc
hoan
alyt
icth
eory
,w
esu
bmit
that
the
gap
betw
een
attit
ude
and
beha
viou
ris
best
unde
rsto
odno
tas
anet
hica
lfla
w,bu
tas
anes
sent
ialc
ompo
nent
ofan
ethi
csth
atm
akes
poss
ible
the
field
ofbu
sine
sssu
stai
nabi
lity.
Take
Aw
ay M
essa
ge‘B
usin
ess
Sus
tain
abili
ty’a
sa
field
ofkn
owle
dge
and
prac
tice
legi
timiz
esth
eid
eaof
entru
stin
gca
pita
lism
with
the
mam
mot
hta
skof
reve
rsin
gth
ete
rrify
ing
real
ityof
ecol
ogic
alde
vast
atio
n.
We
argu
eth
aton
the
one
hand
,the
field
ofbu
sine
sssu
stai
nabi
lity
stud
ies
cons
titut
esa
belie
fin
the
poss
ibili
tyof
sust
aina
ble
(or
gree
n)ca
pita
lism
beca
use
itsu
ccee
dsin
conv
inci
ngits
elf
ofth
eim
poss
ibili
tyof
ecol
ogic
alca
tast
roph
ean
dth
een
dof
capi
talis
m.
We
argu
eth
aton
the
othe
rha
nd,
the
field
ofbu
sine
sssu
stai
nabi
lity
prod
uces
anid
eolo
gica
leffe
ctth
atfo
recl
oses
the
poss
ibili
tyof
mea
ning
fula
ctio
nta
king
plac
eby
prec
isel
yac
ting
asth
ough
som
ethi
ngm
eani
ngfu
lis
taki
ngpl
ace.
Topu
titb
lunt
ly,in
itssi
ncer
eas
pira
tion
tore
scue
the
plan
et’s
ecol
ogy,
busi
ness
sust
aina
bilit
yac
tsag
ains
tthe
real
izat
ion
ofth
atve
rysa
me
obje
ctiv
e.
Inth
efin
alan
alys
is,w
eta
ckle
dth
eve
ques
tion
ofw
hyan
entir
efie
ldof
stud
y,co
nstit
uted
tosa
veus
allf
rom
envi
ronm
enta
lcat
astro
phe,
beha
ves
ina
way
that
perm
itsits
parti
cipa
nts
toac
tas
ifth
eyar
edo
ing
som
ethi
ngof
sign
ifica
nce
inth
efa
ceof
clea
revi
denc
eto
the
cont
rary
(c.f.
Clu
ley
&D
unne
,201
2).
Or,
topu
tthe
ques
tion
inps
ycho
anal
ytic
term
s:w
hyth
efie
ldco
ntin
ues
toda
bble
inth
esp
ace
ofth
esy
mbo
lic,
whi
leig
norin
gth
egl
arin
gru
ptur
esbr
ough
tabo
utby
the
real
mof
the
real
?
The
cons
eque
nces
for
the
field
ofsu
stai
nabi
lity
stud
ies
are
star
k.Th
eon
usof
anal
ysis
shift
sfro
mex
plor
ing
exte
rnal
cons
umer
san
dpr
oduc
ers,
toin
stea
dtu
rnin
gth
ega
zein
war
dsan
dto
prob
efo
runc
onsc
ious
dest
ruct
ive
impu
lses
.
This
pap
er is
For
thco
min
g in
the
Jour
nal o
f Bus
ines
s E
thic
s
The
Shor
tAns
wer
1.Fe
tishi
stdi
savo
wal
:R
efer
sto
afo
rmof
non-
know
ledg
e,R
umsf
eld’
sfa
mou
s"u
nkno
wn
know
ns“:
the
disa
vow
edbe
liefs
and
supp
ositi
ons
tow
hich
we
are
note
ven
awar
ew
ead
here
.In
the
case
ofec
olog
y,th
ese
disa
vow
edbe
liefs
and
supp
ositi
ons
are
the
ones
that
prev
entp
eopl
efro
mbe
lievi
ngin
the
poss
ibili
tyof
cata
-st
roph
e.Th
isun
usua
lepi
stem
olog
ical
cond
ition
ofkn
owle
dge
that
isno
tkno
wle
dge
rela
tes
tops
ycho
anal
ytic
theo
ries
ofdi
savo
wal
and
disi
dent
ifica
tion,
apr
oces
sex
plor
edin
Fuss
’s(1
995,
p.7)
Iden
tific
atio
nP
aper
s.A
ccor
ding
toFu
ss,d
isav
owal
can
beth
ough
tofa
sa
refu
sed
iden
tific
atio
nor
rath
eran
iden
tific
atio
nth
atha
sal
read
ybe
enm
ade
and
deni
edin
the
unco
nsci
ous;
oras
she
puts
it“a
nid
entif
icat
ion
that
one
fear
sto
mak
eon
lybe
caus
eon
eha
sal
read
ym
ade
it.”
Inth
eca
seof
busi
ness
sust
aina
bilit
y,th
iski
ndof
disa
vow
alta
kes
ontw
ofo
rms.
Firs
tthe
reis
the
disa
vow
alof
the
real
ityof
capi
talis
mw
here
itsad
mire
rsco
ntin
ueto
plac
eth
eir
desi
rein
toan
obje
ctsu
chas
gree
nca
pita
lism
orgr
een
econ
omy
(Bra
nd&
Thim
mel
,201
2).T
here
isa
desi
re,i
not
her
wor
ds,f
orca
pita
lism
’s(lo
st)
who
lene
ss,w
hich
inits
impo
ssib
ility
beco
mes
trans
ferr
edto
som
ethi
ngel
se,a
noth
erob
ject
such
assu
stai
nabl
ebu
sine
ssor
no-g
row
thca
pita
lism
and
soon
(Sm
ith,
2011
).Th
us,
even
asgr
owth
-fuel
led
capi
talis
mle
ads
toec
onom
ican
den
viro
nmen
tal
expl
oita
tion
itst
illar
ouse
ssi
ncer
een
thus
iasm
inits
belie
vers
.A
sal
read
yal
lude
dto
abov
e,th
isis
acl
assi
cca
seof
fetis
hist
disa
vow
alw
here
the
iden
tity-
thre
aten
ing
traum
aof
reco
gniz
ing
the
real
situ
atio
nis
repr
esse
dth
roug
ha
focu
son
som
ethi
ngel
se.
Ase
cond
such
inst
ance
offe
tishi
stdi
savo
wal
happ
ens
whe
nw
ere
fuse
toac
cept
the
envi
ronm
enta
lde
stru
ctio
nca
used
byou
row
nac
tions
as‘re
alex
istin
g’pr
oduc
ers
orco
nsum
ers
byfo
cusi
ngon
such
parti
alac
tsas
recy
clin
g,bu
ying
orga
nic
food
and
driv
ing
ahy
brid
car.
The
oper
atin
gpr
inci
ple
here
isth
is:“
Ikno
w,
but
Ido
n’t
wan
tto
know
that
Ikn
ow,
soI
don’
tkn
ow”
(Žiž
ek20
08,
p.53
).O
ras
Freu
d(1
995)
puts
it,di
savo
wal
isas
asu
bjec
t’sre
fusa
lto
reco
gnis
eth
ere
ality
ofa
traum
atic
perc
eptio
n.
2.D
eath
driv
e:W
epu
tfo
rtha
psyc
hoan
alyt
ical
lyin
form
edan
swer
to:
why
the
field
cons
istin
gof
civi
can
dco
rpor
ate
lead
ers,
acad
emic
s,an
dso
onke
eps
doin
gth
ew
rong
thin
gev
enth
ough
itkn
ows
bette
r?W
ithre
cour
seto
Freu
d’s
notio
nof
the
deat
hdr
ive,
we
prop
ose
that
just
like
Roc
khou
ndin
the
mov
ieA
rmag
eddo
n,m
embe
rsof
the
busi
ness
sust
aina
bilit
yfie
ldco
ntin
ueto
betri
pped
upby
thei
row
nun
cons
ciou
sde
sire
for
sabo
tage
and
anni
hila
tion;
anun
cons
ciou
sde
sire
that
dera
ilsre
ason
and
inst
ead
cons
truct
sa
cohe
sive
sym
bolic
real
min
whi
chca
pita
lism
can
besu
stai
nabl
e;a
fant
asy
that
keep
sat
bay
the
unbe
arab
lede
sert
ofth
ere
al(Ž
ižek
2002
).
60 Schulich School of Business
Emot
iona
l Con
sum
ptio
n Sy
stem
s an
d th
e G
loca
lizat
ion
of R
oman
tic L
ove
A
nton
Sie
bert1
and
Mar
kus
Gie
sler
2
1 Vis
iting
Doc
tora
l Stu
dent
, Sch
ulic
h S
choo
l of B
usin
ess,
2A
ssoc
iate
Pro
fess
or o
f Mar
ketin
g, S
chul
ich
Sch
ool o
f Bus
ines
s, Y
ork
Uni
vers
ity, T
oron
to, C
anad
a
Met
hod
• Lo
ngitu
dina
l eth
nogr
aphy
(200
6–20
13) i
n In
done
sia
• P
artic
ipan
t an
d no
n-pa
rtici
pant
obs
erva
tion,
mul
tiple
int
ervi
ews
with
30
in
form
ants
, arc
hiva
l dat
a co
llect
ion
• H
erm
eneu
tic a
naly
sis
met
hod
(Gie
sler
200
8; T
hom
pson
199
7)
Figu
re 1
: The
Glo
caliz
atio
n of
Rom
antic
Con
sum
ptio
n
Find
ings
•
The
glob
al d
iffus
ion
of ro
man
tic c
onsu
mpt
ion
is th
e re
sult
of th
e fo
rmat
ion
of
loca
l rom
antic
con
sum
ptio
n sy
stem
s
• Th
ese
syst
ems
urge
par
tner
s to
act
as
rom
antic
con
sum
ers
by p
rom
otin
g
m
arke
t-frie
ndly
feel
ing
rule
s an
d em
otio
n m
anag
emen
t, at
the
expe
nse
of
ot
her (
e.g.
, tra
ditio
nal)
way
s of
man
agin
g lo
ve
• Fo
ur g
loca
lizat
ion
proc
esse
s in
volv
ed in
est
ablis
hing
thes
e sy
stem
s:
•C
ircul
atio
n –
the
incr
easi
ng fl
ow o
f glo
bal c
ultu
ral m
ater
ial t
hat p
ortra
ys
the
idea
of l
ove
as a
n on
goin
g co
mm
erci
al p
roje
ct in
a lo
cal c
onte
xt
•R
eint
erpr
etat
ion
– th
e ad
apta
tion
of g
loba
l not
ions
of l
ove
and
rom
ance
in lo
cal c
ultu
ral p
rodu
cts
and
for l
ocal
aud
ienc
es
•O
utfit
ting
– th
e cr
eatio
n of
mar
ket o
fferin
gs fo
r rom
antic
con
sum
ptio
n
•E
nact
men
t – th
e ad
optio
n of
mar
ket-f
riend
ly ru
les
of ro
man
tic c
ondu
ct
Follo
w th
is a
nd o
ther
rese
arch
pro
ject
s at
: w
ww
.ant
onsi
eber
t.com
, @sh
apin
gem
otio
ns
– w
ww
.mar
kus-
gies
ler.c
om, @
DrG
iesl
er
Key
Tak
eaw
ays
• Th
e co
ncep
t of e
mot
iona
l con
sum
ptio
n sy
stem
s pr
ovid
es a
use
ful t
ool t
o
an
alyz
e th
e m
arke
t sh
apin
g of
em
otio
nal
life,
an
d th
e fo
urfo
ld
gl
ocal
izat
ion
proc
ess
offe
rs
a us
eful
m
echa
nism
to
ex
amin
e th
e
co
mm
erci
aliz
atio
n of
love
thro
ugho
ut th
e w
orld
• O
ur
stud
y co
ntrib
utes
to
th
e lit
erat
ure
on
cons
umer
de
sire
s.
We
em
piric
ally
de
mon
stra
te
the
hypo
thes
is
that
th
e ad
optio
n of
ne
w
co
nsum
er p
ract
ices
is a
fund
amen
tal s
hift
in m
oral
ities
and
sub
ject
iviti
es
(B
elk,
Ger
, and
Ask
egaa
rd 2
003)
. We
furth
er s
how
how
cap
italis
t mar
kets
an
d id
eolo
gies
not
onl
y ch
anne
l des
ire o
nto
cons
umer
obj
ects
, bu
t als
o
o n
par
ticul
ar f
orm
s of
hum
an r
elat
ions
hips
– s
uch
as t
he e
xpre
ssiv
e,
ex
perie
ntia
l, an
d ca
ring
rom
antic
love
bon
d
• Th
is re
sear
ch e
xten
ds o
ur u
nder
stan
ding
of g
loba
l con
sum
er c
ultu
re. F
or
in
stan
ce,
we
prop
ose
an
addi
tiona
l gl
obal
st
ruct
ure
of
com
mon
di
ffere
nce,
em
otio
n,
in
the
cont
ext
of
glob
al
(you
th)
cons
umpt
ion
(K
jeld
gaar
d an
d A
skeg
aard
200
6).
This
den
otes
a p
reoc
cupa
tion
with
em
otio
nal
life
and
mar
ket-m
edia
ted
wel
lbei
ng t
hat
is m
ade
part
of t
he
in
stitu
tiona
l set
up a
cros
s m
arke
tizin
g cu
lture
s
We
appr
ecia
te th
e in
stitu
tiona
l sup
port
of:
Res
earc
h Q
uest
ion
•H
ow d
oes
rom
antic
con
sum
ptio
n gl
obal
ize?
•Th
is re
sear
ch a
naly
ses
the
chan
ging
link
s be
twee
n lo
ve a
nd th
e m
arke
t
•It
aim
s to
exp
lain
why
and
how
con
sum
ers
arou
nd th
e w
orld
hav
e co
me
to e
mbr
ace
rom
antic
con
sum
ptio
n pr
actic
es a
s in
disp
ensa
ble
elem
ents
in th
e m
anag
ing
of th
eir l
ove
rela
tions
hips
Abs
trac
t C
onsu
mer
res
earc
h ha
s de
mon
stra
ted
the
prev
alen
ce a
nd a
llure
of
rom
antic
cons
umpt
ion
in b
oth
Wes
tern
and
non
-Wes
tern
cul
tura
l con
text
s. T
his
wor
k,
whi
ch
expl
ores
co
nsum
er
expe
rienc
es
and
hist
oric
al
deve
lopm
ents
of
parti
cula
r ritu
als
of ro
man
tic c
onsu
mpt
ion,
has
rela
tivel
y lit
tle to
say
abo
ut h
ow
rom
antic
con
sum
ptio
n di
ffuse
s gl
obal
ly. B
uild
ing
on th
e so
ciol
ogy
of e
mot
ions
and
glob
aliz
atio
n re
sear
ch,
we
deve
lop
the
conc
ept
of
the
emot
iona
l
cons
umpt
ion
syst
em –
a
syst
em
of
soci
al
feel
ing
rule
s th
at
stru
ctur
e
emot
iona
l exc
hang
es a
nd b
ring
loca
l em
otio
nal l
ife in
to a
lignm
ent w
ith g
loba
l
mar
ket
inte
rest
s –
and
theo
rize
its
insc
riptio
n th
roug
h fo
ur
gloc
aliz
atio
n
proc
esse
s of
circ
ulat
ion,
rei
nter
pret
atio
n, o
utfit
ting,
and
ena
ctm
ent.
Afte
r th
at,
we
use
an e
thno
grap
hic
appr
oach
to tr
ace
the
rise
of a
n In
done
sian
rom
antic
cons
umpt
ion
syst
em
emph
asiz
ing
the
feel
ing
rule
s of
em
otio
nal
expr
essi
vene
ss, r
oman
tic e
xper
ient
ialit
y, a
nd p
erso
naliz
ed c
are.
Our
stu
dy h
as
impl
icat
ions
for
con
sum
er r
esea
rch
on r
oman
tic c
onsu
mpt
ion,
des
ire,
and
glob
al c
onsu
mer
cul
ture
, as
wel
l as
soci
olog
ical
wor
k on
em
otio
ns.
Imag
e C
redi
t @ G
unnv
or K
arita
(Win
gs o
f Whi
msy
); S
ourc
e: h
ttp://
win
gsof
whi
msy
.wor
dpre
ss.c
om/2
013/
05/1
2 P
hoto
Sou
rce:
http
s://w
ww.
flick
r.com
/pho
tos/
porto
bayt
rade
/580
4076
968;
Rep
rodu
ced
unde
r the
Cre
ativ
e C
omm
on L
icen
se
BEST
PO
STER
20
15
Spotlight on Research 2015 61
62 Schulich School of Business
Res
earc
hQ
uest
ion
We
prop
ose
that
the
emer
genc
eof
biop
oliti
calm
arke
ting,
here
inth
egu
ise
ofth
ecu
stom
erco
mm
unity
,is
are
spon
seto
two
key
char
acte
ristic
sof
com
mun
icat
ive
capi
talis
m(s
eeal
soM
oulie
rBou
tang
,201
1).
•Fi
rst,
capi
taln
olo
nger
mon
opol
izes
mod
esof
prod
uctio
n,in
nova
tion
and
valu
ecr
eatio
nan
dth
eref
ore
mus
tfin
dw
ays
toca
ptur
ein
nova
tive
and
prod
uctiv
een
ergi
esel
sew
here
.•
Sec
ond,
from
ape
rspe
ctiv
eof
com
mun
icat
ive
effic
ienc
y,or
gani
zatio
nalp
ract
ical
ityan
dop
erat
iona
lord
er,o
nlin
eco
nsum
erpr
actic
esan
dex
pres
sion
sar
epr
oble
mat
icbe
caus
eth
eyar
ene
ver
self-
cont
aine
dan
dar
eof
ten
anar
chic
-the
yac
tivel
ybr
eak
away
from
and
plac
eth
emse
lves
outs
ide
ofm
arke
ting
logi
c.
The
tens
ion
that
aris
esfro
mm
arke
ters
’pur
suit
ofne
wm
odes
ofco
mm
odifi
catio
nan
dac
cum
ulat
ion
onth
eon
eha
ndan
dth
ecr
owd’
spr
oduc
tive
valu
eth
atde
pend
son
rem
aini
ngun
touc
hed
byth
ein
stitu
tiona
llog
icof
mar
ketin
gon
the
othe
r,be
com
esac
utel
yvi
sibl
ein
the
age
ofpa
rtici
pato
rym
edia
.S
ocia
lm
edia
mar
kete
rslik
eB
rian
Sol
is,
Tam
arW
einb
erg,
and
Ash
ton
Kut
cher
(Sol
is,
2010
;W
einb
erg,
2009
)w
arn
that
the
prod
uctiv
ean
arch
yof
the
crow
dis
ultim
atel
ya
stat
emen
tag
ains
tin
stitu
tions
and
disc
iplin
e.Th
ese
auth
ors
tell
thei
rea
ger
audi
ence
that
exci
ting
new
onlin
eac
tiviti
essu
chas
pros
umpt
ion,
peer
colla
bora
tion,
co-c
reat
ion
and
crow
dso
urci
ngal
lte
llm
arke
ters
one
impo
rtant
thin
g:‘c
onsu
mer
sca
nha
veth
eir
cons
umpt
ion,
they
can
have
fun,
they
can
even
inno
vate
and
colla
bora
teas
prod
ucer
san
dco
nsum
ers
butt
hey
dono
tnee
dm
arke
ters
todo
any
ofth
is.T
here
are
nom
arke
ters
inth
ew
ild’(
cf.
Hal
bers
tam
,201
3).
•Th
eC
halle
nge
for
Mar
ketin
gM
anag
ers:
How
tore
solv
eth
isco
ntra
dict
ion
ofco
mm
odify
ing
the
crow
dw
ithou
tan
tago
nizi
ngit?
Mar
kete
rs in
the
Wild
: Bio
polit
ical
Mar
ketin
g an
d th
e Id
eolo
gy o
f the
Cus
tom
er C
omm
unity
Det
lev
Zwic
k1an
d A
lan
Bra
dsha
w2
1 Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada,
2 Roy
al H
ollo
way
, Uni
vers
ity o
f Lon
don,
Eng
land
Abs
trac
tTh
isar
ticle
follo
ws
rece
ntan
alys
isof
mar
ketin
gas
anid
eolo
gica
lset
ofpr
actic
esth
atm
akes
cultu
rali
nter
vent
ions
tost
rate
gica
llyde
stab
ilize
soci
alre
latio
nsan
din
fuse
them
with
biop
oliti
cali
njun
ctio
ns(Z
wic
k&
Cay
la,2
011)
.In
parti
cula
r,th
epa
per
expl
ores
the
curre
ntpo
pula
rity
ofvi
rtual
cons
umer
com
mun
ities
inm
arke
ting
prac
tice
and
seek
sto
unde
rsta
nd,f
rom
acr
itica
lthe
ory
pers
pect
ive,
wha
tthe
ideo
logy
ofan
onlin
eco
nsum
erco
mm
unity
allo
ws
mar
kete
rsto
do,i
.e.h
owth
ecu
stom
erco
mm
unity
func
tions
ideo
logi
cally
inm
arke
ting
and
why
we
enco
unte
rth
isde
sire
toth
ink
ofco
nsum
ers
asco
mm
unity
.In
oura
naly
sis
ofth
eid
eolo
gyof
the
virtu
alcu
stom
erco
mm
unity
,we
see
this
tech
nolo
gyas
part
ofa
larg
ertra
nsfo
rmat
ion
ofco
ntem
pora
rym
arke
ting
prac
tice
from
aso
cial
tech
nolo
gyof
disc
iplin
eto
wha
twe
call
biop
oliti
calm
arke
ting.
Dra
win
gon
Fouc
ault’
sno
tion
ofgo
vern
men
talit
yan
dbi
opol
itica
lpro
duct
ion
asw
ella
sva
rious
text
sde
velo
ped
inre
cent
auto
nom
ist
rein
terp
reta
tions
ofM
arx
(Arv
idss
on,
2006
;D
yer-W
ithef
ord,
1999
,20
05;
Virn
o,20
04,
Ber
ardi
,20
09),
we
use
the
term
biop
oliti
cal
mar
ketin
gto
conc
eptu
aliz
est
rate
gies
aim
edat
capt
urin
gan
dm
anag
ing
cons
umer
sin
inte
nsiv
ean
dex
tens
ive
netw
orks
ofen
terta
inm
ent,
prod
uctio
n,co
nsum
ptio
nan
dsu
rvei
llanc
e(s
eee.
g.M
oor,
2003
;P
ridm
ore
&Ly
on,2
011;
Lash
&Lu
ry,2
007;
Wis
sing
er,2
007;
Thrif
t,20
08).
Wha
tmak
esth
eon
line
cust
omer
com
mun
itysu
itabl
efo
rthi
ski
ndof
anal
ysis
isth
efa
ctth
atth
ece
ntra
lobj
ecta
tsta
ke,t
hecu
stom
erco
mm
unity
itsel
f,ba
rely
actu
ally
exis
ts.
Ther
efor
ew
eob
serv
eth
eid
eolo
gica
lgy
mna
stic
sne
cess
ary
tom
aint
ain
mom
entu
mbe
hind
apr
actic
eth
atba
rely
exis
tsan
dw
epo
nder
why
such
ideo
logi
esar
ene
cess
ary
and
wha
tthe
yal
low
the
mar
kete
rto
do.W
orki
ngw
ithsu
chco
ncep
tsas
‘the
wild
’and
‘com
mun
icat
ive
capi
talis
m’,
we
delv
ein
toa
genr
eof
popu
lar
busi
ness
liter
atur
eth
atpr
osel
ytiz
esfo
rthe
rise
ofth
eon
line
cust
omer
com
mun
ityas
radi
calm
arke
ting
oppo
rtuni
ty.
Con
clus
ion
It is
cle
ar th
at th
is c
ontra
dict
ion
cann
ot b
e re
solv
ed e
ntire
ly in
real
term
s be
caus
e as
soo
n as
the
crow
d ce
ases
to
be o
utsi
de o
f the
mar
ketin
g in
stitu
tion,
i.e.
wild
, its
radi
cally
inno
vativ
e an
d pr
oduc
tive
valu
e de
clin
es.
This
co
ntra
dict
ion
can
only
be
reso
lved
sym
bolic
ally,
that
is to
say
, thr
ough
wha
t Jam
eson
(198
1) c
alls
a s
ocia
lly
sym
bolic
act
tha
t “be
gins
by
gene
ratin
g an
d pr
oduc
ing
its o
wn
real
ity in
the
sam
e m
omen
t of e
mer
genc
e in
whi
ch it
st
eps
back
from
it, t
akin
g its
mea
sure
with
a v
iew
tow
ard
its o
wn
proj
ects
of t
rans
form
atio
n” (J
ames
on, 1
981,
p. 8
0).
Put
diff
eren
tly, a
s th
e ob
ject
of t
he s
ymbo
lic a
ct, t
he c
usto
mer
com
mun
ity b
rings
into
bei
ng th
at v
ery
situ
atio
n to
w
hich
it is
als
o, s
imul
tane
ousl
y, a
reac
tion
agai
nst;
nam
ely,
a fa
ntas
y w
here
mar
ketin
g ca
n ex
ist i
n th
e w
ild.
Bas
edon
the
clos
ere
adin
gof
the
popu
lar
cons
ultin
glit
erat
ure
onco
mm
unity
mar
ketin
g,w
eex
plor
eth
ree
spec
ific
way
sin
whi
chso
cial
med
iam
arke
ters
esta
blis
hth
eid
eolo
gica
lfun
ctio
nof
the
com
mun
ity.
1)C
omm
unity
disp
els
with
the
belie
veth
atm
arke
ters
dom
arke
ting
2)C
omm
unity
esta
blis
hes
the
belie
ftha
tmar
kete
rsno
long
er(d
esire
to)c
ontro
lcon
sum
ers
3)C
omm
unity
disp
els
with
the
belie
ftha
tmar
kete
rscr
eate
valu
e
Rat
her
than
stud
ying
actu
alco
mm
uniti
esof
cust
omer
sor
bran
dsw
ese
ekto
unde
rsta
ndho
wth
ecu
stom
erco
mm
unity
func
tions
ideo
logi
cally
inm
arke
ting
and
why
mar
kete
rsth
ink
ofco
nsum
ers
asco
mm
unity
.Our
anal
ysis
reve
als
that
the
com
mun
ityre
pres
ents
aw
ayfo
rco
ntem
pora
rym
arke
ting
tore
solv
esy
mbo
lical
lya
fund
amen
tal
cont
radi
ctio
nof
mar
ketin
gth
atca
nnot
bere
solv
edby
othe
rm
eans
:ho
wto
com
mod
ifyth
eco
mm
unic
ativ
ean
daf
fect
ive
labo
rof
the
crow
dw
ithou
tan
tago
nizi
ngit?
;a
cont
radi
ctio
nth
atha
sbe
com
em
arke
dly
mor
eac
ute
and
visi
ble
inth
eag
eof
parti
cipa
tory
med
ia.
Atte
mpt
ing
tom
ake
abr
oade
rcl
aim
abou
tthe
trans
form
atio
nof
mar
ketin
gin
the
age
ofco
mm
unic
ativ
eca
pita
lism
,w
esu
gges
ttha
tthe
com
mun
itypl
ays
anim
porta
ntid
eolo
gica
lrol
ein
the
trans
ition
and
legi
timiz
atio
nof
ane
wfo
rmof
mar
ketin
g:bi
opol
itica
lm
arke
ting.
Bio
polit
ical
mar
ketin
gde
scrib
esst
rate
gies
aim
edat
extra
ctin
gva
lue
from
cons
umer
activ
ities
and
feel
ings
prod
uced
auto
nom
ousl
yan
dco
llect
ivel
yin
the
self-
gove
rned
spac
esof
the
virtu
al.
Itis
thus
afo
rmof
mar
ketin
gth
atis
uniq
uely
adap
ted
toth
edi
scur
sive
fram
eof
com
mun
icat
ive
capi
talis
m.I
not
her
wor
ds,
biop
oliti
cal
mar
ketin
g–
toda
ype
rhap
sbe
stex
empl
ified
byth
esu
bfie
ldof
mar
ketin
gca
lled
soci
alm
edia
mar
ketin
g–
ista
sked
with
findi
ngw
ays
tope
rsua
dean
dco
ntro
lcon
sum
ers,
push
mes
sage
san
dpr
oduc
ts,
and
crea
teec
onom
icsu
rplu
sw
ithou
tap
pear
ing
todo
any
ofth
ese
thin
gs.
Itis
for
this
reas
onth
atw
ere
fer
toth
eco
mm
unity
asan
ideo
logi
calf
igur
ebe
caus
eth
equ
estio
nis
notw
heth
erco
mm
uniti
esex
isto
rno
t,or
even
whe
ther
they
can
prod
uce
any
ofth
ebe
nefit
sm
arke
ters
hope
for;
the
ques
tion
isho
wth
efig
ure
ofth
ecu
stom
erco
mm
unity
beco
mes
inve
sted
with
the
soci
alm
edia
mar
kete
r’shi
dden
desi
refo
rsu
chou
tcom
esan
dho
wth
em
arke
ter
cons
truct
sth
isfig
ure
toes
cape
ace
rtain
cont
radi
ctio
n.
The
Shor
tAns
wer
•Th
roug
h th
e id
eolo
gica
l fig
ure
of th
e cu
stom
er c
omm
unity
.
62 Schulich School of Business
Theo
dore
J. N
osew
orth
yS
chul
ich
Sch
ool o
f Bus
ines
s,
York
Uni
vers
ity, T
oron
to O
N, C
anad
a
How
the
Phys
ical
App
eara
nce
of M
oney
Influ
ence
s Sp
endi
ng
Met
hod
(Stu
dy 2
from
Gal
oni&
Nos
ewor
thy,
201
5)•
Mem
bers
ofth
elo
cal
com
mun
ity(N
=20
2,57
.9%
fem
ale)
wer
e
rand
omly
assi
gned
toon
eof
four
cond
ition
sin
a2(
phys
ical
appe
aran
ce:
wor
nvs
.cr
isp)
×2(
inst
ruct
ions
:to
uch
vs.
noto
uch)
betw
een
subj
ects
desi
gn.
•P
artic
ipan
tsen
tere
dth
ere
tail
lab
and
wer
egi
ven
$20
tosp
end
onat
leas
ton
epr
oduc
tfro
mth
eir
choi
ceof
two
aisl
es:
offic
esu
pplie
san
d
clea
ning
prod
ucts
.
Pro
ject
#1:
Jou
rnal
of C
onsu
mer
Res
earc
h 20
13w
ith F
abriz
io D
i Mur
oU
nive
rsity
of W
inni
peg,
Win
nipe
g M
B, C
anad
a
Intr
oduc
tion
•Th
ere
exis
tsa
fund
amen
talb
elie
fth
atpe
ople
only
atte
ndto
the
nom
inal
(face
)val
ueof
mon
ey.
•Th
ispr
ogra
mof
rese
arch
inve
stig
ates
how
the
phys
ical
appe
aran
ceof
mon
eyim
pact
ssp
endi
ngan
dth
eva
luat
ion
ofpr
oduc
ts.
Ackn
owle
dgem
ents
: Pro
ject
1 w
as s
uppo
rted
by th
e U
nive
rsity
of W
inni
peg’
s St
art-u
p re
sear
ch
gran
t. Pr
ojec
t 2 w
as fu
nded
by
the
Soci
al S
cien
ces
and
Hum
aniti
es R
esea
rch
Cou
ncil
of C
anad
a (S
SHR
C in
sigh
t gra
nts
#435
-201
3-02
35).
Gen
eral
Dis
cuss
ion
•C
olle
ctiv
ely,
this
wor
kch
alle
nges
the
wid
ely
held
assu
mpt
ion
that
mon
ey
isfu
ngib
lean
dsh
ows
that
the
phys
ical
appe
aran
ceof
mon
eyca
n
influ
ence
how
itis
spen
t.
•P
roje
ct1
high
light
sth
eim
pact
ofso
cial
cont
exta
nddi
scre
teem
otio
nson
spen
ding
.
•P
roje
ct2
show
sth
atth
eap
pear
ance
ofm
oney
impa
cts
prod
uctv
alua
tion
byw
ayof
phys
ical
cont
amin
atio
n.
Res
ults
•P
artic
ipan
tsw
ere
mor
elik
ely
tobr
eak
the
$10
bill
ina
priv
ate
cont
ext
whe
nth
ebi
llw
asw
orn,
butw
ere
mor
elik
ely
tobr
eak
the
cris
pbi
llw
hen
ina
publ
icco
ntex
t.
•A
med
iatio
nan
alys
isre
veal
edth
atdi
sgus
tle
dpe
ople
tobr
eak
the
$10
whe
nit
was
wor
n,bu
tonl
yin
apr
ivat
eco
ntex
t.
•C
onve
rsel
y,pr
ide
med
iate
dth
ein
dire
ctef
fect
ofph
ysic
alap
pear
ance
on
spen
ding
such
that
prid
ele
dpe
ople
tobr
eak
the
cris
p$1
0bi
llw
hen
in
publ
ic,b
utsa
veit
whe
nin
apr
ivat
eco
ntex
t.
Met
hod
(Stu
dy 4
from
DiM
uro
& N
osew
orth
y, 2
013)
•U
nder
grad
uate
s(N
=12
0;55
.8%
fem
ale)
wer
era
ndom
lyas
sign
edto
one
offo
urco
nditi
ons
ina
2(ph
ysic
alap
pear
ance
:wor
nvs
.cris
p)×
2(co
ntex
t:
priv
ate
vs.p
ublic
)bet
wee
nsu
bjec
tsde
sign
.
•P
artic
ipan
tsen
tere
dth
ere
tail
lab
and
wer
egi
ven
aw
alle
tcon
tain
ing
$20
inth
efo
rmof
a$1
0bi
ll,a
$5bi
ll,tw
o$2
bills
,and
a$1
bill
(US
D).
•P
artic
ipan
tsw
ere
rand
omly
endo
wed
with
a$1
0bi
llth
atw
asei
ther
wor
n
orcr
isp
(all
othe
rbill
sw
ere
bran
dne
w).
•P
artic
ipan
tsin
the
publ
icco
nditi
onen
tere
dth
ela
bin
grou
psof
10an
d
sign
eda
wai
ver
stat
ing
that
they
cons
ente
dto
havi
ngth
eir
beha
viou
rin
the
lab
vide
ore
cord
edan
dev
alua
ted
byth
eirp
eers
.
•E
very
one
was
aske
dto
purc
hase
atle
asto
nepr
oduc
tand
wer
eto
ldth
at
they
coul
dke
epth
em
oney
that
rem
aine
d.
Res
ults
•A
spr
edic
ted,
thos
ew
how
ere
give
nw
orn
bills
and
perm
itted
toto
uch
the
prod
ucts
wer
em
ore
likel
yto
choo
seth
ecl
eani
ngpr
oduc
tai
sle.
Thos
e
who
chos
eth
isai
sle
did
nots
pend
mor
em
oney
.
•H
owev
er,t
hose
who
chos
eth
eof
fice
supp
lyai
sle
and
wer
epe
rmitt
edto
touc
hth
epr
oduc
tsaf
ter
hand
ling
wor
nbi
llspu
rcha
sed
mor
ean
dsp
ent
mor
em
oney
,sug
gest
ing
deva
luat
ion
byne
gativ
eco
ntam
inat
ion.
Proj
ect 2
: Res
earc
h Q
uest
ion
•D
oes
dirty
mon
ey in
crea
se s
pend
ing
beca
use
it al
ters
pro
duct
val
uatio
n?
Proj
ect 1
: Res
earc
h Q
uest
ion
•H
ow d
oes
the
phys
ical
app
eara
nce
of m
oney
influ
ence
spe
ndin
g?
Supe
rscr
ipt a
= p
rivat
e co
ntex
t Su
pers
crip
t b =
pub
lic c
onte
xt
Spen
ding
Phys
ical
Ap
pear
ance
Prid
e
Dis
gust
a2**
-a1
*
-b2a
***
b1a
**
Path
c’
Soci
al C
onte
xt
b2b
**
-b1b
Pro
ject
#2:
Jou
rnal
of C
onsu
mer
Psy
chol
ogy
2015
with
Che
lsea
Gal
oni
Kel
logg
Sch
ool o
f Man
agem
ent,
Nor
thw
este
rn U
nive
rsity
, Eva
nsto
n IL
, US
A
Figu
re 1
: Pr
ojec
t 1 M
odel
Spotlight on Research 2015 63
64 Schulich School of Business
Des
igni
ng a
Sha
ring
Econ
omy:
The
Soc
iolo
gy o
f Em
path
y
Mar
kus
Gie
sler
1 , E
la V
eres
iu2 ,
Ant
on S
iebe
rt2
1 Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada,
2 Vis
iting
Doc
tora
l Stu
dent
s, S
chul
ich
Sch
ool o
f Bus
ines
s, Y
ork
Uni
vers
ity, T
oron
to, C
anad
a
Follo
w th
is a
nd o
ther
rese
arch
pro
ject
s at
:
ww
w.m
arku
s-gi
esle
r.com
@D
rGie
sler
ww
w.e
la-v
eres
iu.c
om @
ever
esiu
– w
ww
.ant
onsi
eber
t.com
@sh
apin
gem
otio
ns
We
appr
ecia
te th
e in
stitu
tiona
l sup
port
of:
Bac
kgro
und
The
“Sha
ring
Eco
nom
y” is
a fa
st-g
row
ing,
glo
bal,
mul
ti-bi
llion
dol
lar m
arke
t tha
t ca
ptur
es t
he e
xcite
men
t of
cou
ntle
ss C
EO
s, i
nnov
ator
s, a
nd r
esea
rche
rs.
Sha
ring
is c
omm
only
her
alde
d as
a p
ower
ful n
ew p
arad
igm
with
the
pote
ntia
l to
stim
ulat
e th
e ec
onom
y, c
reat
e co
mm
uniti
es,
and
add
valu
e to
ind
ivid
uals
an
d so
ciet
y.
Sur
pris
ingl
y, h
owev
er,
man
ager
s of
sha
ring
tech
nolo
gies
ofte
n fa
ce h
arsh
cr
itici
sm,
resi
stan
ce,
and
skep
ticis
m
from
im
porta
nt
stak
ehol
der
grou
ps
incl
udin
g re
gula
tors
, uni
onis
ts, j
ourn
alis
ts, a
nd c
onsu
mer
s.
Find
ings
from
an
inst
itutio
nal i
nves
tigat
ion
of th
e rid
esha
ring
com
pany
Ube
r, as
w
ell
as i
nsig
hts
from
the
soc
iolo
gy o
f em
path
y, s
ugge
st t
hat
in o
rder
to
succ
eed
in th
e sh
arin
g ec
onom
y, in
nova
tors
sho
uld
rem
ind
them
selv
es o
f the
em
path
y th
at u
nder
lies
thei
r sha
ring
tech
nolo
gies
.
Spe
cific
ally,
we
prop
ose
a fo
ur-fo
ld p
roce
ss o
f em
path
izat
ion
thro
ugh
whi
ch
man
ager
s ca
n ad
dres
s co
mm
on c
ompl
aint
s fro
m t
hese
sta
keho
lder
s gr
oups
an
d en
sure
futu
re g
row
th fo
r the
ir sh
arin
g te
chno
logi
cal i
nnov
atio
ns.
Find
ings
: Em
path
izat
ion
Proc
ess
•H
uman
izat
ion:
Pos
ition
the
sha
ring
tech
nolo
gy a
way
fro
m b
urea
ucra
tic,
mec
hani
stic
, ou
tdat
ed,
and
rigid
st
ruct
ures
, an
d to
war
ds
mor
e se
lf-re
gula
ting,
fle
xibl
e,
carin
g,
and
orga
nic
stru
ctur
es,
such
as
th
e co
ntem
pora
ry c
ivil
soci
ety.
•U
nive
rsal
izat
ion:
Her
ald
empa
thy
as t
he t
rue
idea
l th
roug
h w
hich
all
issu
es, i
nclu
ding
thos
e of
ord
er, j
ustic
e, tr
ansp
aren
cy, a
nd s
afet
y ca
n be
st
be re
solv
ed.
•Pr
otot
ypin
g:
Edu
cate
in
divi
dual
s in
th
e sh
arin
g ne
twor
k to
ac
t re
spec
tfully
and
car
ingl
y to
war
ds o
ne a
noth
er b
y cr
eatin
g ro
le m
odel
s an
d ci
rcul
atin
g th
eir
succ
ess
stor
ies.
For
exa
mpl
e, a
ssig
n pa
rticu
lar
role
s (g
estu
res,
pra
ctic
es, s
tyle
s, e
tc.)
to s
take
hold
ers,
suc
h as
the
empa
thet
ic
cons
umer
who
is h
elpi
ng in
divi
dual
driv
ers
and
thei
r fa
mili
es w
hen
usin
g th
e U
ber s
ervi
ce.
•C
ontr
actin
g:
Esta
blis
h m
oral
em
path
etic
co
ntra
cts
with
st
akeh
olde
r gr
oups
by
writ
ing
conc
rete
pol
icie
s, s
uch
as w
orke
r saf
ety
guid
elin
es, a
nd
crea
ting
mut
ually
be
nefic
ial
partn
ersh
ips,
lik
e re
bate
s fro
m
car
man
ufac
ture
rs fo
r Ube
r driv
ers.
“ W
hat w
e m
aybe
sho
uld'
ve re
aliz
ed s
oone
r was
th
at w
e ar
e ru
nnin
g a
polit
ical
cam
paig
n an
d th
at th
e ca
ndid
ate
is U
ber…
And
this
pol
itica
l ra
ce is
hap
ping
in e
very
maj
or c
ity in
the
wor
ld.
And
bec
ause
this
isn’
t abo
ut a
dem
ocra
cy, t
his
is a
bout
a p
rodu
ct, y
ou c
an’t
win
51
to 4
9. Y
ou
have
to w
in 9
8 to
2.”
Trav
is K
alan
ick
Ube
r co-
foun
der &
CEO
Figu
re 1
: Res
ista
nce
in th
e Sh
arin
g Ec
onom
y
Sha
ring
Tech
nolo
gy
Firm
s
Con
sum
ers
Wor
ker
Uni
ons
Reg
ulat
ors
Jour
nalis
ts
Social justice
complaints
City sustainability complaints
Tran
spar
ency
co
mpl
aint
s
Saf
ety
com
plai
nts
Key
Tak
eaw
ays
Man
ager
s of
sha
ring
firm
s fa
ce r
esis
tanc
e th
at a
rises
fro
m t
he t
ensi
ons
betw
een
conf
lictin
g ec
onom
ic a
nd s
ocia
l (e.
g., j
ustic
e, s
afet
y) c
once
rns.
By
addr
essi
ng e
ach
stak
ehol
der c
ompl
aint
with
a p
artic
ular
em
path
y m
yth,
the
shar
ing
busi
ness
mod
el is
ren
dere
d de
sira
ble,
whi
le o
ther
dem
ands
(e.
g.,
for
regu
latio
n) a
re r
ende
red
unde
sira
ble.
The
fou
r pr
oces
ses
of e
mpa
thiz
atio
n eq
uip
mar
ketin
g m
anag
ers
with
the
stra
tegi
c to
ols
to w
in o
ver
scep
tical
st
akeh
olde
rs, r
e-de
sign
the
shar
ing
econ
omy,
and
sus
tain
gro
wth
.
We
cont
ribut
e to
the
mar
ket c
reat
ion
and
evol
utio
n lit
erat
ure
by u
npac
king
how
th
e sh
arin
g ec
onom
y is
(re-
) des
igne
d th
roug
h an
em
path
izat
ion
proc
ess.
Thi
s sh
eds
nove
l lig
ht o
n th
e st
rate
gic
use
of e
mot
ions
in
the
ques
t fo
r m
arke
t su
cces
s in
est
ablis
hed
indu
strie
s.
Sec
ond,
we
mak
e a
cont
ribut
ion
to t
he t
echn
olog
y an
d in
nova
tion
liter
atur
e.
Con
vent
iona
lly,
tech
nolo
gy
has
been
un
ders
tood
as
ut
ilitar
ian
(effi
cien
t, ef
fect
ive,
etc
.). H
owev
er, t
he re
sist
ance
leve
l aga
inst
sha
ring
tech
nolo
gies
and
fir
ms
brin
gs u
p a
deep
er e
mot
iona
l le
vel
that
can
onl
y be
add
ress
ed b
y em
path
izin
g th
e te
chno
logy
and
its
disr
uptiv
e po
tent
ial.
Res
earc
h Q
uest
ion
How
can
mar
kete
rs o
f sh
arin
g te
chno
logi
es w
in o
ver
mul
tiple
ske
ptic
al
stak
ehol
der g
roup
s?
Imag
e so
urce
: Cre
ativ
e C
omm
ons
from
Tec
hCru
nch
ww
w.fl
ickr
.com
/pho
tos/
tech
crun
ch/
- im
age
crop
ped
& q
uote
add
ed
64 Schulich School of Business
Res
earc
h Q
uest
ions
A
t the
ven
ture
ass
essm
ent s
tage
, do
BA
s re
ject
opp
ortu
nitie
s:
•us
ing
a no
n-co
mpe
nsat
ory
heur
istic
, su
ch t
hat
a hi
gher
ret
urn
cann
ot
com
pens
ate
for a
hig
her r
isk,
and
vic
e ve
rsa?
.
•us
ing
a tri
gger
poi
nt h
euris
tic, w
here
they
look
for d
esire
d le
vels
of m
inim
um
retu
rn o
rmax
imum
risk
rath
er th
an th
eir a
bsol
ute
valu
es?
The
Non
-Com
pens
ator
y R
elat
ions
hip
betw
een
Ris
k an
d R
etur
n in
B
usin
ess
Ang
el In
vest
men
t Dec
isio
n M
akin
g
A
ndre
w M
axw
ell1 ,
Mor
en L
éves
que2
, Sco
tt Je
ffrey
3
1 Las
sond
e S
choo
l of E
ngin
eerin
g, 2 S
chul
ich
Sch
ool o
f Bus
ines
s, Y
ork
Uni
vers
ity, T
oron
to, O
ntar
io, C
anad
a, 3
Leo
n H
ess
Bus
ines
s S
choo
l, M
onm
outh
Uni
vers
ity, N
ew J
erse
y, U
SA
Intr
oduc
tion
•B
usin
ess
Ang
els
(BA
s) a
re a
n im
porta
nt s
ourc
e of
ear
ly f
inan
ce f
or h
igh-
grow
th c
ompa
nies
, bef
ore
such
ven
ture
s ca
n ge
nera
te p
ositi
ve c
ash
flow.
•Fu
nd-s
eeki
ng e
ntre
pren
eurs
fai
l to
attr
act
inve
stm
ent
due
to e
ither
a p
oor
oppo
rtuni
ty o
r bec
ause
they
do
not u
nder
stan
d ho
w B
As
mak
e de
cisi
ons.
•
A be
tter
unde
rsta
ndin
g of
BA
deci
sion
s ca
n he
lp p
rom
isin
g en
trepr
eneu
rs
bette
r pre
pare
for i
nves
tmen
t int
erac
tions
and
BA
s m
ake
bette
r dec
isio
ns.
Take
away
s•
Obs
ervi
ng th
e in
vest
men
t dec
isio
n sh
ows
expe
rienc
ed B
As
use
heur
istic
s to
trad
e of
f dec
isio
n ac
cura
cy fo
r dec
isio
n sp
eed.
•E
ntre
pren
eurs
, aw
are
of w
hy c
riter
ia a
re c
onsi
dere
d at
eac
h st
age
of th
e pr
oces
s, c
an b
ette
r pre
sent
spe
cific
and
rele
vant
info
rmat
ion.
•E
ntre
pren
eurs
, w
ho u
nder
stan
d th
at B
As
do n
ot t
rade
off
betw
een
risk
and
retu
rn c
an b
ette
r com
pens
ate
for w
eakn
esse
s in
thei
r bus
ines
s pl
ans
or c
an b
e be
tter p
repa
red
to a
nsw
er q
uest
ions
rais
ed b
y B
As.
•B
As’
bet
ter
unde
rsta
ndin
g of
the
inve
stm
ent
deci
sion
pro
cess
will
allo
w
them
to im
prov
e th
eir d
ecis
ion-
mak
ing
effic
ienc
y an
d ac
cura
cy.
•Aw
aren
ess
of
how
in
vest
men
t de
cisi
ons
are
mad
e ca
n re
duce
th
e pr
evai
ling
high
fai
lure
rat
es,
incr
ease
fun
ding
to
entre
pren
eurs
, an
d en
cour
age
mor
e B
As
and
entre
pren
eurs
to p
artic
ipat
e in
the
proc
ess.
Theo
ry D
evel
opm
ent
Beh
avio
ral d
ecis
ion
theo
ry s
ugge
sts
that
: •
Com
plex
dec
isio
ns a
re o
ften
brok
en d
own
into
sta
ges,
with
opp
ortu
nitie
s re
ject
ed a
t eac
h st
age
thro
ugh
a se
quen
tial e
limin
atio
n pr
oces
s.
•
Und
er
time
pres
sure
, ex
perie
nced
de
cisi
on-m
aker
s fre
quen
tly
use
heur
istic
s (s
hortc
uts)
that
min
imiz
e th
e co
gniti
ve d
ecis
ion
effo
rt re
quire
d.
•
Rej
ectio
n he
uris
tics
can
incl
ude
the
use
of
non-
com
pens
ator
y an
d/or
‘s
atis
ficin
g’ (e
.g.,
trigg
er p
oint
) tec
hniq
ues.
•
In o
rder
to m
inim
ize
deci
sion
effo
rt, e
xper
ienc
ed d
ecis
ion-
mak
ers
will
ofte
n tra
de o
ff de
cisi
on a
ccur
acy
for d
ecis
ion
spee
d.
4
4.55
5.56
6.57
7.58
8.5
4.5
5.5
6.5
7.5
8.5
Rej
ect
Pro
ceed
Thre
shol
d le
vels
Circ
le
size
in
dica
tes
num
ber o
f op
portu
nitie
s
Res
earc
h C
halle
nges
•
Res
earc
h ha
s be
en c
onst
rain
ed b
y BA
s’ la
ck o
f und
erst
andi
ng o
f the
ir ow
n de
cisi
ons
and
the
conf
iden
tial n
atur
e of
the
deci
sion
-mak
ing
proc
ess.
•B
As
are
assu
med
to
be r
atio
nal
deci
sion
-mak
ers
who
ful
ly c
onsi
der,
and
trade
off,
all
fact
ors
befo
re c
hoos
ing
in w
hich
opp
ortu
nity
to in
vest
.
•Ev
iden
ce fr
om b
ehav
iora
l dec
isio
n th
eory
sug
gest
s th
at e
xper
ienc
ed d
ecis
ion-
mak
ers
use
heur
istic
s th
at tr
ade
off a
ccur
acy
for e
ffici
ency
.
•BA
s ad
apt
deci
sion
heu
ristic
s th
roug
h se
quen
tial e
limin
atio
n st
ages
, w
hich
ar
e di
fficu
lt to
unr
avel
whe
n on
ly th
e fin
al o
utco
me
is e
xter
nally
obs
erva
ble.
Mar
ket a
dopt
ion
Mar
ket p
oten
tial
Pro
tect
abili
ty
Tech
nolo
gy ri
sk
Ope
ratio
nal r
isk
Mar
ket r
isk
Ent
repr
eneu
r cap
abili
ty
Ent
repr
eneu
r cha
ract
eris
tics
Ent
repr
eneu
r per
form
ance
Trus
twor
thy
beha
vior
s
Trus
ting
beha
vior
s
Cap
able
beh
avio
rs
Fina
ncia
l ris
k
Inve
stm
ent r
etur
n
Vent
ure
risk
Man
ager
ial r
isk
Ent
repr
eneu
r ex
perie
nce
Com
mun
icat
ive
beha
vior
s
s
Rel
atio
nshi
p ris
k M
ore
obje
ctiv
e fa
ctor
s:
easi
er to
retri
eve
and
asse
ss
Mor
e su
bjec
tive
fact
ors:
hard
er to
retri
eve
and
asse
ss
Non-compensatory rejection due to fatal flaw in any of eight critical factors
Non-compensatory rejection due to excess managerial or
relationship risk
vest
men
tret
urn
Ven
Ven
Vtu
reris
k
In
Rel
atio
nshi
p be
twee
n in
suffi
cien
t inv
estm
ent r
etur
n,
exce
ss v
entu
re ri
sk, a
nd
oppo
rtuni
ty re
ject
ion
Res
earc
h M
etho
d •
Dire
ct
invo
lvem
ent
in
CB
C’s
D
rago
ns’
Den
1 al
low
ed
us
to
obse
rve
inve
stm
ent i
nter
actio
ns a
nd u
se re
ject
ion
reas
ons
to id
entif
y th
e st
age
of th
e el
imin
atio
n pr
oces
s w
hen
each
opp
ortu
nity
was
reje
cted
.
•Tr
aine
d ex
perts
cod
ed e
ight
ven
ture
crit
eria
link
ed to
Inve
stm
ent R
etur
n (V
retu
rn)
and
Vent
ure
Ris
k (V
risk)
as w
ell a
s sp
ecific
rej
ectio
n re
ason
s (in
suffi
cien
t ret
urn
or e
xces
s ve
ntur
e ris
k) p
rovi
ded
by e
ach
Dra
gon.
Obs
erve
d an
d co
ded
602
inte
ract
ions
ove
r 4 s
easo
ns w
here
: •
436
had
a fa
talf
law
and
wer
e re
ject
ed a
t an
initi
al s
elec
tion
stag
e.
•
166
wer
e ev
alua
ted
here
, w
ith 9
9 pa
ssin
g th
e ve
ntur
e as
sess
men
t st
age.
Th
e 67
rej
ecte
d at
thi
s st
age
wer
e ba
sed
upon
rea
son(
s) p
rovi
ded
by
Dra
gons
(22
for i
nsuf
ficie
nt re
turn
, 18
for e
xces
s ve
ntur
e ris
k, 2
7 fo
r bot
h).
1 In th
e sh
ow, f
und-
seek
ing
entre
pren
eurs
pitc
h th
eir
vent
ures
to fi
ve e
xper
ienc
ed B
As,
req
uest
ing
a sp
ecifi
c am
ount
of e
quity
inve
stm
ent.
The
inte
ract
ion
cont
inue
s un
til a
ll B
As
prov
ide
a re
ason
for r
ejec
ting
the
oppo
rtuni
ty, o
r one
or m
ore
of th
e B
As
mak
es a
n of
fer t
o in
vest
.
Vreturn
Focu
s of
this
pap
er
Sequ
ence
in w
hich
reje
ctio
n cr
iteria
are
ass
esse
d as
the
inte
ract
ion
proc
eeds
thro
ugh
subs
eque
nt s
tage
s
V ris
k (in
verte
d sc
ale)
Res
ults
•
Opp
ortu
nitie
s ar
e re
ject
ed a
t th
e ve
ntur
e as
sess
men
t st
age
due
to:
insu
ffici
ent
retu
rn =
ƒ(m
arke
t po
tent
ial,
mar
ket
adop
tion,
pro
tect
abilit
y,
entre
pren
eur
expe
rienc
e) o
r ex
cess
ven
ture
ris
k =
ƒ(te
chno
logy
ris
k,
mar
ket r
isk,
ope
ratio
nal r
isk,
fina
ncia
l ris
k).
•
Rej
ectio
n of
an
oppo
rtuni
ty w
as n
on-c
ompe
nsat
ory
(a h
ighe
r le
vel
of
retu
rn c
ould
not
com
pens
ate
for a
hig
her l
evel
of r
isk,
and
vic
e ve
rsa)
.
•B
As
did
not
asse
ss a
bsol
ute
valu
e of
inve
stm
ent
retu
rn o
r ve
ntur
e ris
k,
rath
er th
ey re
ject
ed o
ppor
tuni
ties
that
faile
d to
mee
t min
imum
inve
stm
ent
retu
rn o
r max
imum
ven
ture
risk
thre
shol
ds.
Imag
e us
ed w
ith p
erm
issi
on ©
CB
C
1 Las
sond
e S
choo
l of E
ngin
eerin
g, Y
ork
Uni
vers
ity, T
oron
to, C
anad
a, 2S
chul
ich
Sch
ool o
f Bus
ines
s, Y
ork
Uni
vers
ity, T
oron
to, C
anad
a, 3 L
eon
Hes
s B
usin
ess
Sch
ool,
Mon
mou
th U
nive
rsity
, Wes
t Lon
g B
ranc
h, U
SA
Spotlight on Research 2015 65
66 Schulich School of Business
Res
earc
h Q
uest
ions
•
Can
the
Hig
h Fr
eque
ncy/
Low
Sev
erity
eve
nts
be u
sefu
l in
ide
ntify
ing,
m
odel
ing
and
prev
entin
g hi
gh im
pact
loss
es in
fina
ncia
l ind
ustry
? •
Do
HF/
LI a
nd L
F/H
I eve
nts
have
the
sam
e ca
sual
mec
hani
sms?
•
Wha
t ris
k m
anag
emen
t m
etho
ds
can
be
effe
ctiv
e in
pr
edic
ting
and
prev
entin
g hi
gh s
ever
ity o
pera
tiona
l los
ses?
Low
Fre
quen
cy H
igh
Impa
ct O
pera
tiona
l Los
ses:
Can
Ban
ks L
earn
to M
anag
e M
isfo
rtun
e?
Met
hodo
logy
•
In-d
epth
cas
e st
udy
focu
sed
on s
peci
fic b
usin
ess
lines
and
typ
es o
f op
erat
iona
l lo
sses
will
be
cond
ucte
d to
ans
wer
the
res
earc
h qu
estio
ns
(See
Fi
gure
2).
Man
ager
s ac
ross
diff
eren
t fu
nctio
ns o
f th
e C
anad
ian
finan
cial
ser
vice
s fir
m w
ill b
e in
terv
iew
ed u
sing
a s
emi-s
truct
ured
inte
rvie
w
prot
ocol
. In
terv
iew
dat
a w
ill b
e co
mpl
emen
ted
by t
he o
pera
tiona
l lo
ss
repo
rts a
nd ri
sk e
vent
ana
lysi
s.
•P
ropo
sed
rese
arch
is
a
part
of
a la
rger
pr
ogra
m
of
rese
arch
on
co
llabo
rativ
e ris
k m
anag
emen
t in
volv
ing
case
st
udie
s an
d qu
asi
expe
rimen
tal d
esig
n, s
uper
vise
d by
Pro
fess
or D
avid
A. J
ohns
ton
(Sch
ulic
h S
choo
l of B
usin
ess)
.
Ele
na N
este
rova
, OM
IS P
hD C
andi
date
Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada
Intr
oduc
tion
Fina
ncia
l ins
titut
ions
hav
e no
t bee
n ab
le to
cur
tail
the
oper
atio
nal r
isk
loss
es,
desp
ite th
e m
ore
strin
gent
Bas
el II
risk
regu
latio
ns. 9
5% o
f the
risk
eve
nts
are
rela
tivel
y lo
w im
pact
loss
es o
f EU
R0.
5MM
or l
ess
per
inci
dent
(S
ee F
igur
e 1)
. In
tere
stin
gly,
the
rem
aini
ng 5
% o
f op
erat
iona
l ris
k ev
ents
acc
ount
for
90%
of
the
tota
l lo
sses
in
abso
lute
val
ue (
OR
X G
loba
l B
anki
ng R
epor
t, 20
14).
The
sign
ifica
nt ri
sk e
vent
s, s
o ca
lled
“bla
ck s
wan
s”, a
re b
elie
ved
to b
e in
the
real
m
of t
he u
nexp
ecte
d an
d un
man
agea
ble
risk
expo
sure
. P
ropo
sed
rese
arch
will
qu
estio
n th
is a
ssum
ptio
n an
d at
tem
pt t
o fin
d a
conn
ectio
n be
twee
n th
e da
ily
oper
atio
nal f
ailu
res
and
pote
ntia
l hig
h im
pact
risk
eve
nts.
Th
e O
pera
tions
Man
agem
ent
liter
atur
e ha
s lo
ng r
ecom
men
ded
setti
ng u
p co
ntro
l sy
stem
s to
de
tect
no
n co
nfor
min
g be
havi
ors
in
orga
niza
tiona
l pr
oces
ses
(i.e.
, qu
ality
man
agem
ent,
heal
th a
nd s
afet
y).
“Nea
r-m
iss”
ris
k ev
ents
are
con
side
red
to b
e va
luab
le s
ourc
es o
f in
form
atio
n ab
out
pote
ntia
l ris
k ex
posu
re.
Cas
e st
udy
rese
arch
ind
icat
ed t
hat
rela
tivel
y fre
quen
t lo
w
impa
ct e
vent
s ar
e of
ten
igno
red
by o
rgan
izat
ions
, fra
med
as
the
acce
ptab
le
cost
s of
doi
ng b
usin
ess.
At t
he s
ame
time,
pub
lic e
nqui
ries
in m
ajor
risk
eve
nts
frequ
ently
iden
tify
prec
urso
r ris
k ev
ents
that
co
uld
have
bee
n in
stru
men
tal i
n pr
even
ting
high
impa
ct e
vent
s, b
ut w
ere
igno
red
by th
e re
leva
nt s
take
hold
ers.
P
ropo
sed
rese
arch
ai
ms
to
exam
ine
the
rela
tions
hip
betw
een
the
low
fre
quen
cy h
igh
impa
ct (
LF/H
I) ris
k ev
ents
and
hig
h fre
quen
cy l
ow i
mpa
ct
(HF/
LI)
even
ts,
to e
xplo
re i
f an
d ho
w l
ow i
mpa
ct e
vent
s ca
n be
use
d as
pr
edic
tors
of s
igni
fican
t ope
ratio
nal l
osse
s.
Figu
re 1
Key
Ope
ratio
nal R
isk
Stat
istic
s •
The
data
sug
gest
s th
at e
cono
mic
cap
ital
allo
catio
n fo
r op
erat
iona
l ris
k ra
nges
bet
wee
n 15
-25%
of
the
tota
l ec
onom
ic c
apita
l fo
r th
e m
ajor
ity o
f ba
nks
(Bas
el C
omm
ittee
on
Ban
king
Sup
ervi
sion
, 201
2).
•A
ccor
ding
to th
e O
RX
Glo
bal B
anki
ng R
epor
t, op
erat
iona
l ris
k re
late
d lo
sses
re
porte
d by
68
mem
ber
bank
s to
tal E
UR
140B
n fo
r th
e 20
08-2
013
perio
d.
On
aver
age,
ope
ratio
nal
risk
even
ts c
ost
glob
al b
anks
3%
of
the
gros
s in
com
e, w
hich
repr
esen
ts 2
0-30
% o
f the
mod
ern
bank
s' p
rofit
mar
gin.
Sour
ce: O
RX
Glo
bal B
anki
ng R
epor
t 201
4
Theo
retic
al A
ppro
ach
•
Inte
rdis
cipl
inar
y th
eorie
s, s
uch
as n
orm
al a
ccid
ents
the
ory
(Per
row
, 20
11)
and
high
re
liabi
lity
theo
ry
(Wei
ke
&
Sut
cliff
e,
2007
) at
tem
pted
to
co
ncep
tual
ize
the
ris
k dy
nam
ics
on o
rgan
izat
iona
l an
d te
am l
evel
and
ex
plai
n ho
w c
ompa
nies
can
man
age
the
unex
pect
ed.
•P
rosp
ect
theo
ry (
Kah
nem
an,
2003
) su
gges
ts t
hat
indi
vidu
al b
iase
s an
d he
uris
tics
prev
ail w
hen
man
ager
s as
sess
ris
ks,
whi
le b
ound
ed r
atio
nalit
y th
eory
que
stio
ns t
he i
ndiv
idua
ls’
abili
ty t
o be
fin
d op
timal
ris
k so
lutio
ns
(Bel
l, R
aiffa
, & T
vers
ky, 1
988)
. •
Hop
kins
(20
14) f
ound
that
a g
ap e
xist
s at
the
orga
niza
tiona
l lev
el b
etw
een
iden
tifyi
ng c
ause
s of
pas
t eve
nts
and
mak
ing
reco
mm
enda
tions
for
futu
re
acci
dent
pre
vent
ion.
•
Kle
indo
rfer
and
Saa
d (2
005)
arg
ue t
hat
near
-mis
s ev
ent
anal
ysis
is
a cr
itica
l ste
p in
dev
elop
ing
risk
prev
entio
n pr
ogra
m in
sup
ply
chai
ns.
Ref
eren
ces:
B
ell,
D. E
., R
aiffa
, H.,
& T
vers
ky, A
. (E
ds.).
(198
8). D
ecis
ion
mak
ing:
Des
crip
tive,
nor
mat
ive,
and
pre
scrip
tive
inte
ract
ions
. Cam
brid
ge U
nive
rsity
Pre
ss.
Per
row,
C. (
2011
). Th
e ne
xt c
atas
troph
e: re
duci
ng o
ur v
ulne
rabi
litie
s to
nat
ural
, ind
ustri
al a
nd te
rror
ist d
isas
ters
. Prin
ceto
n U
nive
rsity
Pre
ss, P
rince
ton,
New
Jer
sey
Kah
nem
an, D
. (20
03).
A pe
rspe
ctiv
e on
judg
emen
t and
cho
ice.
Am
eric
an P
sych
olog
ist,
58, 6
97-7
20.
Wei
ke, K
., S
utcl
iffe,
K. (
2007
). M
anag
ing
the
unex
pect
ed, s
econ
d ed
. Jos
sey
Bas
s, S
an F
ranc
isco
Kle
indo
rfer,
P. R
., &
Saa
d, G
. H. (
2005
). M
anag
ing
disr
uptio
n ris
ks in
sup
ply
chai
ns. P
rodu
ctio
n an
d op
erat
ions
man
agem
ent,
14(1
), 53
-68.
Hop
kins
, A. (
2014
). Is
sues
in s
afet
y sc
ienc
e. S
afet
y S
cien
ce, 6
7, 6
-14.
Figu
re 2
Figu
re 3
Res
earc
h Si
gnifi
canc
e P
ropo
sed
rese
arch
aim
s to
fil
the
gap
in a
cade
mic
lite
ratu
re a
nd
esta
blis
h if
the
anal
ysis
of
a se
ries
of H
F/LI
eve
nts
taki
ng p
lace
at
an o
rgan
izat
ion
over
tim
e co
uld
faci
litat
e th
e id
entif
icat
ion
of c
omm
on r
isk
patte
rns
and
syst
emic
op
erat
iona
l pro
blem
s th
at c
an p
oten
tially
lead
to th
e si
gnifi
cant
loss
es o
r maj
or
cris
es.
Pre
limin
ary
case
st
udy
rese
arch
sh
ows
that
lo
w
impa
ct
risk
even
ts
are
disr
egar
ded
by o
pera
tions
man
ager
s, a
lbei
t rep
orte
d to
OS
FI. T
he b
ank’
s ris
k m
anag
er in
form
s us
that
: “bu
sine
ss li
ne m
anag
ers
are
resp
onsi
ble
for
spec
ific
risk
even
ts a
naly
sis
and
they
are
typ
ical
ly n
ot t
akin
g ac
tion
if th
e lo
sses
fal
l w
ithin
est
ablis
hed
risk
appe
tite”
. Th
e re
sear
ch r
esul
ts w
ill h
ave
sign
ifica
nt
impl
icat
ions
for
risk
man
ager
s an
d in
dust
ry p
olic
y m
aker
s. T
he fi
ndin
gs o
f thi
s re
sear
ch m
ay h
elp
reco
ncep
tual
ise
the
risk
appe
tite
stat
emen
t im
pose
d by
the
Bas
el II
regu
latio
ns.
This
em
piric
al
rese
arch
w
ill
info
rm
futu
re
rese
arch
on
op
erat
iona
l ris
k m
anag
emen
t in
the
fin
anci
al s
ervi
ces
indu
stry
, sp
ecifi
cally
as
it re
late
s to
the
id
entif
icat
ion
and
prev
entio
n of
hig
h im
pact
ris
k ev
ents
. Th
e fin
ding
s w
ill b
e re
leva
nt t
o a
broa
d ra
nge
of f
inan
cial
ins
titut
ions
, fro
m b
anks
to
insu
ranc
e co
mpa
nies
and
inve
stm
ent
firm
s, a
ttem
ptin
g to
har
ness
bus
ines
s an
alyt
ics
to
impr
ove
thei
r man
agem
ent o
f ext
erna
l and
inte
rnal
risk
s.
66 Schulich School of Business
Obj
ectiv
es
•It
seem
s th
at c
harte
ring
is a
pop
ular
sol
utio
n fo
r rel
ievi
ng fi
nanc
ial l
osse
s
in th
e co
ntai
ners
hip
mar
ket.
•W
hat k
ind
of c
harte
ring
stra
tegy
will
be e
mpl
oyed
by
liner
com
pani
es to
deal
with
the
carb
on ta
x un
certa
inty
?
•H
ow is
the
rela
tions
hip
betw
een
char
terin
g st
rate
gy a
nd c
arbo
n ta
x ris
k?
Upt
rend
of C
onta
iner
ship
Cha
rter
ing
Und
er C
arbo
n Ta
x U
ncer
tain
ty
Met
hod
•O
pera
tiona
l Res
earc
h –
Sto
chas
tic P
rogr
amm
ing
•Th
e fle
et p
lann
ing
prob
lem
is
form
ulat
ed a
s a
mul
ti-pe
riod
inte
ger
Sto
chas
tic
Pro
gram
min
g m
odel
, us
ing
real
da
ta
from
sh
ippi
ng
com
pani
es.
•A
scen
ario
tre
e is
dev
elop
ed t
o re
pres
ent
the
stru
ctur
e of
an
unce
rtain
carb
on ta
x.
•C
harte
ring
deci
sion
s ba
sed
on P
erfe
ct In
form
atio
n ar
e in
trodu
ced
for t
he
sake
of c
ompa
rison
with
dec
isio
ns w
ith u
ncer
tain
ty.
•A
non-
antic
ipat
ivity
con
stra
int
is a
pplie
d to
ens
ure
that
the
for
mul
ated
deci
sion
s m
aint
ain
alig
nmen
t with
unc
erta
inty
tax
scen
ario
.
Mo
Zhu1
, Mur
at K
rista
l2 , M
icha
el C
hen3
1 Col
lege
of T
rans
port
& C
omm
unic
atio
ns, S
hang
hai M
ariti
me
Uni
vers
ity, S
hang
hai,
Chi
na, 2
Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada,
3D
epar
tmen
t of M
athe
mat
ics
and
Sta
tistic
s, Y
ork
Uni
vers
ity, T
oron
to, C
anad
a
Abs
trac
t Th
e m
ariti
me
trans
port
indu
stry
con
tinue
s to
dra
w in
tern
atio
nal a
ttent
ion
due
to
sign
ifica
nt G
reen
hous
e G
as e
mis
sion
s fro
m li
ner s
hips
. S
ever
al m
arke
t-bas
ed m
easu
res
aim
to c
ontro
l and
redu
ce e
mis
sion
s, in
clud
ing
the
intro
duct
ion
of e
mis
sion
s ta
xes.
Yet
, th
ese
mea
sure
s ar
e pr
oble
mat
ic,
as
they
can
lea
d to
mar
ket
unce
rtain
ties
that
im
pact
shi
ppin
g co
mpa
nies
’ fle
et
plan
ning
stra
tegy
. Th
is
pape
r in
vest
igat
es
cont
aine
rshi
p ch
arte
ring
trend
s un
der
carb
on
tax
unce
rtain
ty t
hat
have
the
pot
entia
l to
impa
ct li
ner
com
pani
es’ s
hort-
term
fle
et
stra
tegi
es.
Figu
re 1
: Inc
reas
ed C
hart
erin
g C
apac
ity (
TEU)
Res
ults
•
Res
ults
de
mon
stra
te
the
feas
ibili
ty
of
the
Sto
chas
tic
Pro
gram
min
g
mod
el
and
reco
urse
de
cisi
ons
in
diffe
rent
pl
anni
ng
perio
ds
and
scen
ario
s.
•M
ore
ship
s ar
e ch
arte
red
whe
n lin
er c
ompa
nies
do
not
have
Per
fect
Info
rmat
ion
abou
t fu
ture
car
bon
taxa
tion,
the
uptre
nd i
s st
able
, so
as
long
as
carb
on ta
x un
certa
inty
exi
sts,
rat
iona
l lin
er c
ompa
nies
who
are
risk-
neut
ral w
ill ch
arte
r mor
e sh
ips
to c
ope
with
tax
unce
rtain
ty.
•Li
ner
com
pani
es te
nd to
cha
rter
mor
e ca
paci
ty w
hen
they
are
exp
osed
to h
igh
carb
on ta
x ris
k.
•Lo
ng-p
erio
d ch
arte
ring
is n
ot p
refe
rred
due
to th
e la
ck o
f fle
xibi
lity
in th
is
optio
n.
Dis
cuss
ion
•Th
e up
trend
of
char
terin
g m
ay r
equi
re m
ore
cont
aine
rshi
ps a
vaila
bilit
y.
This
rep
rese
nts
an o
ppor
tuni
ty f
or c
harte
r-ow
ners
to
plac
e or
ders
for
new
-bui
lds.
Thi
s m
ay a
lso
expl
ain
the
phen
omen
on t
hat
char
ter-
owne
rs
have
a la
rger
sha
re o
f ord
er-c
apac
ity th
an li
ner c
ompa
nies
.
•Th
is u
ptre
nd m
ay l
ead
to r
isin
g ch
arte
ring
rate
s an
d in
crea
sed
mar
ket
conc
entra
tion.
Thi
s w
ill m
ean
that
sm
all
com
pani
es w
ith w
eak
capi
tal
chai
ns c
ould
get
squ
eeze
d ou
t of
the
mar
ket,
espe
cial
ly i
n th
e fa
ce o
f
pres
sure
s ex
erte
d by
larg
e co
rpor
ate
allia
nces
.
C
oncl
usio
ns
•M
etho
dolo
gy:
Sto
chas
tic P
rogr
amm
ing
can
wel
l m
odel
fle
et p
lann
ing
prob
lem
with
unc
erta
in fa
ctor
s.
•P
ract
ical
: It
is n
ot w
ise
for
liner
com
pani
es t
o ta
ke r
isk
with
fle
et
plan
ning
in
the
pres
ence
of
unce
rtain
car
bon
tax,
rec
ours
e de
cisi
ons
shou
ld b
e m
ade
acco
rdin
g to
who
le s
cena
rio fo
r sus
tain
able
bus
ines
s.
•C
harte
ring
is a
n ag
ile a
nd f
easi
ble
way
to
deal
with
unc
erta
inty
, th
e
uptre
nd o
f cha
rterin
g is
sta
ble
unde
r diff
eren
t car
bon
tax
risk
leve
ls.
010
000
2000
030
000
4000
050
000
6000
070
000
8000
0
Hig
h ca
rbon
tax
risk
Med
ium
car
bon
tax
risk
Low
car
bon
tax
risk
Com
pany
AC
ompa
ny B
Dec
isio
n st
eps
with
non
-ant
icip
ativ
ity c
onst
rain
t.
1Nt
11
NY2
1NY
31NY
2 1 S NY1 1 S NY
S NY1
1 NY2 NY
3 NY2S NY
1S NYS NY
1 1Y2 1Y
1 2Y2 2Y
……
……
1t
2t
1s
……
……
……
……
……
2s
3s
2Ss
1Ss
Ss
3 1Y2
1S Y
11S Y
SY 1
3 2Y2
2S Y
12S Y
SY 2
……
Nt
……
1 NY2-S NY
3 NY2 NY
1-S NYS NY
Spotlight on Research 2015 67
68 Schulich School of Business
Res
earc
h Q
uest
ions
•
How
to m
easu
re e
ffici
ency
in a
fair
man
ner w
hen
som
e D
MU
s op
erat
e in
mor
e fa
vora
ble
envi
ronm
ents
tha
n ot
hers
(e.
g. b
ank
bran
ches
with
afflu
ent c
usto
mer
s ve
rsus
bra
nche
s w
ith p
oor c
usto
mer
s.)?
•H
ow t
o ev
alua
te e
ffici
ency
to
take
acc
ount
of
sust
aina
bilit
y in
itiat
ives
.,
e.g.
hyb
rid v
ehic
les
vers
us n
on h
ybrid
s?
•H
ow to
eva
luat
e ef
ficie
ncy
chan
ges
over
tim
e? F
ront
iers
can
shi
ft. B
ench
mar
king
Bes
t Pra
ctic
e in
Org
aniz
atio
ns
Wad
e D
. Coo
k
Schu
lich
Scho
ol o
f Bus
ines
s, Y
ork
Uni
vers
ity, T
oron
to, C
anad
a
Met
hod
•Th
e D
EA
met
hodo
logy
invo
lves
con
stru
ctin
g a
ratio
of
wei
ghte
d ou
tput
s
to w
eigh
ted
inpu
ts (
bene
fit t
o co
st r
atio
) fo
r ea
ch d
ecis
ion
mak
ing
unit,
and
then
sol
ving
an
optim
izat
ion
prob
lem
to
dete
rmin
e th
e be
st r
atio
(sco
re) f
or e
ach
of th
ose
units
.
Intr
oduc
tion
•
Mea
surin
g ef
ficie
ncy/
prod
uctiv
ity o
f a s
et o
f sim
ilar
Dec
isio
n M
akin
g U
nits
(e
.g. b
ank
bran
ches
) or D
MU
s, re
lativ
e to
one
ano
ther
.
•
The
met
hodo
logy
, kno
wn
as d
ata
enve
lopm
ent a
naly
sis
(DE
A),
uses
line
ar
pr
ogra
mm
ing
toid
entif
y th
e fro
ntie
r of b
est p
erfo
rmer
s.
•
The
tool
pro
vide
s a
mea
sure
of
inef
ficie
ncy
for
each
DM
U n
ot o
n th
e
fro
ntie
r, id
entif
ies
the
peer
effi
cien
t D
MU
s th
at t
he in
effic
ient
uni
t sh
ould
st
rive
to e
mul
ate,
and
set
s a
targ
et o
r goa
l for
that
inef
ficie
nt u
nit.
Figu
re 2
: A
ccou
ntin
g fo
r Diff
eren
t Env
ironm
ents
Res
ults
•
DE
A id
entif
ies
the
front
ier o
f bes
t per
form
ance
•H
ere,
mos
t of
the
effi
cien
t br
anch
es a
re r
ich
bran
ches
– P
oor
bran
ches
ar
e un
fairl
y ev
alua
ted
•A
n an
alog
ous
setti
ng m
ight
be
one
whe
re s
ome
DM
Us
follo
w “
Gre
en
Env
ironm
ent”
prac
tices
and
othe
rs n
ot.
Dis
cuss
ion
•D
EA
prov
ides
an
oppo
rtuni
ty to
inve
stig
ate
man
y as
pect
s of
pro
duct
ivity
and
ben
chm
arki
ng.
•Th
e D
EA
cons
truct
lend
s its
elf
to m
any
prac
tical
pro
blem
set
tings
suc
h
as
sup
ply
chai
ns. I
t ena
bles
one
to id
entif
y th
e ef
ficie
ncy
of e
ach
link
in
the
chai
n.
Take
Aw
ay M
essa
ge
•D
EA
offe
rs th
e op
portu
nity
to in
vest
igat
e pr
oduc
tion
proc
esse
s w
ithou
t
the
need
to s
peci
fy a
ny p
artic
ular
func
tiona
l for
m.
Figu
re 1
: Dat
a En
velo
pmen
t Ana
lysi
s (D
EA)
Out
put
Inpu
t
Bra
nche
s w
ith
Ric
h C
usto
mer
s
Bra
nche
s w
ith
Poor
Cus
tom
ers
Inpu
t
Figu
re 3
: Pro
duct
ivity
Cha
nge
Ove
r Tim
e
Year
1 O
utpu
t
Inpu
t
Fro
ntie
r Yea
r 1
Fr
ontie
r Yea
r 2
Out
put
Bra
nche
s
Ric
hC
usto
m
Bra
nche
s
Poor
Cus
tom
68 Schulich School of Business
Res
earc
h Q
uest
ion
•Is
a m
anag
er’s
abi
lity
to m
ake
toug
h di
scip
linar
y de
cisi
ons
rela
ted
to
perc
eptio
ns o
f the
man
ager
’s o
vera
ll fa
irnes
s an
d et
hica
l lea
ders
hip?
Toug
h D
isci
plin
ary
Dec
isio
ns: A
Nec
essa
ry G
ood
Met
hod
•W
e re
crui
ted
58 m
anag
ers
from
an
exec
utiv
e ed
ucat
ion
prog
ram
at t
he
Laho
re U
nive
rsity
of
Man
agem
ent
Stu
dies
in
Laho
re,
Pak
ista
n. T
hey
wer
e as
ked
to n
omin
ate
3 to
5 s
ubor
dina
tes
for u
s to
con
tact
sep
arat
ely
(N =
193)
. •
We
expe
cted
tha
t su
bord
inat
es m
ay h
ave
diffe
rent
vie
ws
on t
heir
supe
rvis
or’s
dis
posi
tions
and
beh
avio
rs.
•W
e al
so a
ntic
ipat
ed a
gree
men
t am
ongs
t su
bord
inat
es o
f th
e sa
me
supe
rvis
or, s
o th
at th
ere
shou
ld a
lso
be d
iffer
ence
s be
twee
n gr
oups
.
Chr
is B
ell1 ,
Arte
m A
ssoi
ants
2 , A
bdul
Kar
im K
han3
, Im
ran
Ham
eed4
1 Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada,
2U
nder
grad
uate
Psy
chol
ogy
Stu
dent
, Yor
k U
nive
rsity
, 3La
hore
Uni
vers
ity o
f Man
agem
ent S
tudi
es, P
akis
tan,
4 Kin
g S
aud
Uni
vers
ity, R
iyad
h, S
audi
Ara
bia
Intr
oduc
tion
•P
eopl
e ca
re a
bout
how
fair
and
ethi
cal t
he p
eopl
e w
ho h
ave
pow
er o
ver
them
are
.
•R
esea
rch
has
focu
sed
on
soci
al
exch
ange
, eq
uity
in
ou
tcom
es,
proc
edur
al fa
irnes
s in
dec
isio
n m
akin
g, a
nd in
terp
erso
nal r
espe
ct.
•
How
ever
, ver
y lit
tle re
sear
ch h
as d
irect
ly e
xplo
red
judi
ciou
s di
scip
line
and
enfo
rcem
ent o
f wor
kpla
ce n
orm
s an
d ru
les
of c
ondu
ct.
•
Whi
le i
t m
ay b
e ne
cess
ary
to e
nfor
ce r
ules
, it
can
be d
iffic
ult
to b
e a
disc
iplin
aria
n.
–M
anag
ers
are
ofte
n an
xiou
s ab
out
disc
iplin
ing
subo
rdin
ates
(B
utte
rfiel
d, T
revi
no, &
Bal
l, 19
96).
–P
eopl
e ge
nera
lly d
iffer
in w
heth
er th
ey b
elie
ve th
at p
unis
hmen
t its
elf
is e
thic
al, a
nd s
elf r
egul
ate
thei
r be
havi
or a
ccor
ding
ly (
Rup
p &
Bel
l, 20
10).
Figu
re 1
– R
esul
ts o
f HLM
med
iatio
n te
sts
Man
ager
’s a
bilit
y to
mak
e to
ugh
disc
iplin
ary
deci
sion
s
M
anag
er’s
ove
rall
fairn
ess
(p
roce
dura
l, di
strib
utiv
e an
d in
terp
erso
nal j
ustic
e)
Man
ager
’s e
thic
al le
ader
ship
Res
ults
•
Med
iatio
n ca
n be
dem
onst
rate
d if
the
inde
pend
ent
varia
ble
(toug
h di
scip
linar
y de
cisi
ons)
pre
dict
s th
e m
edia
tor
(ove
rall
fairn
ess)
and
the
de
pend
ent
varia
ble
(eth
ical
lea
ders
hip)
, bu
t th
e am
ount
of
varia
nce
pred
icte
d by
the
inde
pend
ent v
aria
ble
is s
igni
fican
tly re
duce
d w
hen
the
med
iato
r is
sim
ulta
neou
sly
ente
red
into
the
mod
el.
•
With
out o
vera
ll fa
irnes
s in
the
mod
el to
ugh
disc
iplin
ary
deci
sion
s w
ere
asso
ciat
ed w
ith p
erce
ptio
ns o
f sup
ervi
sor’s
eth
ical
lead
ersh
ip w
ithin
the
grou
p (β
.166
, p
< .0
54),
but
the
stro
nger
rel
atio
nshi
p w
as b
etw
een
grou
ps (β
.435
, p <
.005
).
•S
imila
rly, w
ithou
t tou
gh d
isci
plin
ary
deci
sion
s in
the
mod
el, s
uper
viso
r’s
over
all
fairn
ess
was
stro
ngly
ass
ocia
ted
with
jud
gmen
ts o
f et
hica
l le
ader
ship
with
in g
roup
s (β
.752
, p
< .0
01)
and
betw
een
grou
ps (β
.670
, p <
.001
).
•A
s ca
n be
see
n in
Fig
ure
1, t
ough
dis
cipl
inar
y de
cisi
ons
wer
e al
so
asso
ciat
ed w
ith j
udgm
ents
of
the
supe
rvis
or’s
eth
ical
lea
ders
hip
but,
whe
n ov
eral
l fa
irnes
s w
as i
n th
e m
odel
sim
ulta
neou
sly,
fai
rnes
s w
as
still
sign
ifica
ntly
ass
ocia
ted
with
eth
ical
lead
ersh
ips,
tou
gh d
isci
plin
ary
deci
sion
s w
as n
ot.
Dis
cuss
ion
Effe
ctiv
e di
scip
line
can
be a
n im
porta
nt f
acto
r in
mai
ntai
ning
an
orde
red
wor
kpla
ce a
nd h
as im
plic
atio
ns fo
r per
form
ance
, com
mitm
ent a
nd, w
ell-
bein
g.
Take
Aw
ay M
essa
ge
•P
eopl
e ca
re a
bout
the
enf
orce
men
t of
rul
es i
n th
e w
orkp
lace
, no
t ju
st
abou
t rew
ards
and
out
com
es.
•Th
ere
is t
ruth
to
the
adag
e th
at b
eing
‘to
ugh
but
fair’
is
appr
ecia
ted.
In
deed
, di
scip
linin
g em
ploy
ees
cont
ribut
es
to
perc
eptio
ns
of
over
all
fairn
ess
and
ethi
cal l
eade
rshi
p.
•C
ontra
ry
to
man
ager
s’
conc
erns
th
at
disc
iplin
e m
ay
alie
nate
th
eir
subo
rdin
ates
from
them
, be
ing
able
to
mak
e to
ugh
disc
iplin
ary
deci
sion
s is
cle
arly
ass
ocia
ted
with
pos
itive
eva
luat
ions
of t
he m
anag
er.
M
OD
EL 1
M
OD
EL 2
Ove
rall
Fairn
ess
Ethi
cal L
eade
rshi
p
β
t-rat
io
p
β
t-rat
io
p
Toug
h D
isci
plin
ary
Dec
isio
ns
With
in
.257
2
.61
.011
.8
93
1.2
8 .2
05
Bet
wee
n .2
81
1.9
0 .0
61
-.003
-0
.02
.982
Ove
rall
Fairn
ess
With
in
.6
80
11.5
8 .0
01
Bet
wee
n
.668
5
.10
.001
TOU
GH
DIS
CIP
LIN
ARY
DEC
ISIO
NS
SCA
LE
Sub
ordi
nate
s as
sess
ed
his
or
her
supe
rvis
or’s
ca
paci
ty
to
mak
e to
ugh
disc
iplin
ary
deci
sion
s th
roug
h 4
item
s (a
lpha
= .6
8):
•
If th
ere
was
a fr
ee ri
der i
n th
e w
ork
grou
p, m
y su
perv
isor
/man
ager
wou
ld
call
that
per
son
out.
•If
som
eone
in
th
e gr
oup
had
to
be
laid
of
f or
fir
ed,
my
supe
rvis
or/m
anag
er w
ould
hav
e no
pro
blem
mak
ing
that
dec
isio
n.
•M
y su
perv
isor
/man
ager
car
ries
thro
ugh
with
tou
gh c
alls
and
dis
cipl
inar
y de
cisi
ons.
•
Whe
n so
meo
ne
in
the
wor
kgro
up
need
ed
to
be
disc
iplin
ed,
my
supe
rvis
or/m
anag
er w
ould
hav
e no
pro
blem
taki
ng a
ctio
n.
Use
d w
ith p
erm
issi
on ©
Mar
k S
tiver
s (w
ww
.mar
kstiv
ers.
com
)
Spotlight on Research 2015 69
70 Schulich School of Business
Rel
atio
nalF
orm
s&
Inst
itutio
nalA
nom
ie•
Soc
ietie
san
dcu
lture
sre
solv
eth
epr
oble
ms
ofre
sour
cean
dst
atus
dist
ribut
ion
thro
ugh
ado
min
anto
rgan
izin
gfo
rmof
soci
alre
latio
ns(F
iske
,19
91,
1992
)th
atpr
ovid
esa
guid
ing
etho
san
dde
finin
gfo
unda
tion
for
soci
etal
inst
itutio
ns.
•In
soci
etie
sch
arac
teriz
edby
hier
arch
y,au
thor
ityra
nkin
g,an
dpo
wer
dist
ance
(Fis
ke,1
991,
1992
;H
ofst
ede,
1980
,20
01),
we
wou
ldex
pect
ineq
uitie
sin
pow
eran
dco
ntro
love
rres
ourc
esan
d,co
nseq
uent
ly,hi
gher
corru
ptio
nle
vels
.
•In
rela
tivel
yin
divi
dual
istic
soci
etie
s,w
ew
ould
expe
ctth
atco
rrupt
ion
wou
ldbe
miti
gate
dby
lega
lan
dpo
litic
also
cial
inst
itutio
nsth
atpr
otec
tin
divi
dual
right
s(A
yers
,19
84;
Hen
rich
etal
.,20
06;
Leun
g&
Coh
en,
2011
;Sen
,200
9).
Nat
iona
l Cha
ract
eris
tics,
Cor
rupt
ion
and
Wel
l Bei
ng:
A R
elat
iona
l For
ms
Mod
el o
f Ins
titut
iona
l Ano
mie
Met
hod
We
gath
ered
natio
nall
evel
varia
bles
from
seve
rals
ourc
es:
•Po
wer
Dis
tanc
e&
Indi
vidu
alis
m•
Nat
iona
lCul
tura
lDim
ensi
ons,
Hof
sted
e•
Cor
rupt
ion
•Tr
ansp
aren
cy•
Hap
pine
ss&
Trus
t•
ISS
P20
01-
Soci
alne
twor
ksII;
Latin
obar
ómet
ro19
95-2
008;
Valu
esS
urve
ysEV
S/W
VS
Wav
es1-
4(1
981-
2004
);W
orld
Valu
esS
urve
yW
ave
5(2
005-
2008
)
Chr
is B
ell1 a
nd M
ings
huan
g Ji
2
1 Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada;
2 Ph.
D. C
andi
date
. Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada
Intr
oduc
tion
•H
uman
sse
ekco
mfo
rt,lu
xury
and
wel
lbei
ngin
area
sot
her
than
mat
eria
lsu
bsis
tenc
e,an
dsociety
dete
rmin
esan
dpr
escr
ibes
the
thin
gsan
dac
hiev
emen
tsth
atsa
tisfy
thes
ene
eds
(Dur
khei
m,1
897)
•Anomie
ispr
oduc
edw
hen
soci
ety
prov
ides
little
orw
eak
mor
algu
idan
cein
how
tosa
tisfy
need
s,pr
oduc
ing
mor
alde
regu
latio
n,al
iena
tion
ofpe
ople
from
soci
ety
and
one
anot
her,
and
loss
ofpe
rson
alm
eani
ngor
purp
ose
inlif
e(D
urkh
eim
,189
7;M
erto
n,19
38)
•In
stitu
tiona
lA
nom
ieTh
eory
(Mes
sner
&R
osen
feld
,19
94)
clai
ms
that
anom
ieis
expr
esse
din
aso
ciet
y’s
dom
inan
tet
hos
and
inst
itutio
ns.
For
inst
ance
,in
the
cont
exto
fthe
Am
eric
anD
ream
,the
mar
kete
cono
my
take
spr
eced
ence
over
and
isno
teffe
ctiv
ely
rest
rain
edby
othe
rsoc
iali
nstit
utio
ns
Figu
re 1
–H
igh
/ Low
Indi
vidu
alis
m
Res
ults
•C
orre
latio
ns s
uppo
rt th
e hy
poth
esiz
ed li
nks
betw
een
inde
pend
ent,
med
iatin
g, a
nd d
epen
dent
var
iabl
es.
•H
iera
rchi
cal L
inea
r Reg
ress
ion
anal
yses
als
o sh
owed
that
the
rela
tions
hips
bet
wee
n th
e na
tiona
l cul
tura
l dim
ensi
ons
and
happ
ines
s or
tru
st w
as th
roug
h co
rrupt
ion.
•W
ith c
orru
ptio
n in
the
mod
el, t
he re
latio
nshi
p be
twee
n po
wer
dis
tanc
e or
in
divi
dual
ism
and
the
depe
nden
t var
iabl
es w
as n
o lo
nger
sig
nific
ant (
all
ps >
.5) w
here
as in
all
mod
els
corr
uptio
n w
as s
till s
igni
fican
tly re
late
d to
bo
th h
appi
ness
and
tru
st (a
ll ps
< .0
01).
Dis
cuss
ion
•Th
ew
ayso
ciet
ies
and
cultu
res
orga
nize
rela
tions
hips
,w
hich
has
impl
icat
ions
for
stat
us,
pow
er,
and
reso
urce
dist
ribut
ion,
also
has
impl
icat
ions
forc
orru
ptio
nan
dth
ew
ellb
eing
ofci
tizen
s.
•Fr
oma
theo
retic
alpe
rspe
ctiv
e,th
isre
sear
chex
tend
sth
eIn
stitu
tiona
lA
nom
ielit
erat
ure
toth
eco
nsid
erat
ion
ofre
latio
nalf
orm
s.
•A
mar
tya
Sen
,th
eN
obel
priz
ew
inni
ngec
onom
ist,
has
long
argu
edth
atde
moc
raci
espr
ovid
em
ore
soci
alju
stic
ean
dw
ell
bein
gth
ando
othe
rfo
rms
ofpo
litic
alor
gani
zatio
n,sp
ecifi
cally
dict
ator
ship
s.A
lthou
ghw
edi
dno
tin
clud
eva
riabl
esfo
rpo
litic
al,
soci
al,
lega
lor
norm
ativ
ein
stitu
tions
,w
ebe
lieve
our
rese
arch
wou
ldap
pear
topr
ovid
efu
rther
supp
ortf
orth
isar
gum
ent.
•D
emoc
racy
first
emer
ged
inin
divi
dual
istc
ultu
res,
and
ensh
rines
and
prot
ects
indi
vidu
alrig
hts.
•P
ower
dist
ance
isch
arac
teris
ticof
cultu
res
orso
ciet
ies
inw
hich
pow
eran
dre
sour
ces
accu
mul
ate
infe
wha
nds
ina
hier
arch
y,ra
ther
than
bein
gre
lativ
ely
acce
ssib
lean
dat
tain
able
byal
l.
Take
Aw
ay M
essa
ge•
How
aso
ciet
yor
cultu
reth
inks
abou
tthe
fund
amen
talf
orm
ofso
cial
rela
tions
has
clea
rim
pact
onan
omie
,in
parti
cula
rco
rrup
tion
and
wel
lbei
ng.
Pow
er D
ista
nce
Indi
vidu
alis
m
Cor
rupt
ion
Hap
pine
ssTr
ust
+-
-
Figu
re 2
–H
igh
/ Low
Pow
er D
ista
nce
Res
earc
h M
odel
•M
edia
tion
Hyp
othe
sis:
Nat
iona
llev
els
ofco
rrupt
ion
will
med
iate
the
asso
ciat
ion
betw
een
rela
tiona
lfor
man
dag
greg
ate
natio
nals
core
son
happ
ines
san
dpr
open
sity
totru
st.
1. P
ower
Dis
tanc
e2.
Indi
vidu
alis
m-.6
65**
*
3. C
orru
ptio
n.7
07**
*-.6
50**
*
4. H
appi
ness
-.367
***
.382
***
-.554
***
5. T
rust
-.420
***
.371
***
-.553
***
.251
**
Cor
rela
tions
*** p
< .0
01; **
p<
.01
-
70 Schulich School of Business
Res
earc
h Q
uest
ions
G
iven
a te
am o
f tra
ined
mem
bers
with
ass
igne
d ro
les
and
lead
er, a
nd g
iven
a
com
plex
, crit
ical
, non
-rou
tine
situ
atio
n, w
e as
ked:
• A
re th
ere
sign
ifica
nt d
iffer
ence
s in
lead
ers’
inte
ract
ion
patte
rn
char
acte
ristic
s be
twee
n lo
w- a
nd h
igh-
perfo
rmin
g te
ams
(a) w
ithin
the
team
or (b
) out
side
the
team
?
• A
re th
ere
sign
ifica
nt d
iffer
ence
s in
the
cont
ent o
f lea
ders
’ int
erac
tions
betw
een
low
- and
hig
h-pe
rform
ing
team
s (a
) with
in th
e te
am o
r (b)
out
side
the
team
?
Life
on
the
Edge
: Dyn
amic
Bou
ndar
y Sp
anni
ng in
Min
e R
escu
e Te
ams
Met
hod
•D
ata
colle
cted
ov
er
two
year
s fro
m
22
sepa
rate
cr
itica
l ep
isod
es
(fire
fight
ing
and
first
aid
epi
sode
s) in
volv
ing
11 t
eam
s du
ring
unde
rgro
und
sim
ulat
ions
des
igne
d to
be
cogn
itive
ly a
n d p
hysi
cally
dem
andi
ng
•Fi
ve te
am m
embe
rs u
nder
grou
nd fo
r res
cue;
brie
fing
offic
er o
utsi
de te
am
boun
dary
on
m
ine
surfa
ce
with
ac
cess
to
m
ine
info
rmat
ion;
ca
ptai
ns
cont
acte
d br
iefin
g of
ficer
s vi
a ha
ndhe
ld ra
dio
whe
n bo
unda
ry s
pann
ing
•U
SB-s
ized
dig
ital a
udio
reco
rder
s at
tach
ed to
team
mem
bers
’ hel
met
s to
capt
ure
inte
ract
ions
•R
ecor
ding
s tra
nscr
ibed
and
cod
ed v
erba
tim;
spea
ker
(cap
tain
, br
iefin
g
offic
er, t
eam
mem
ber)
, tim
e, a
nd c
onte
nt c
oded
by
mul
tiple
cod
ers
•M
ultip
le e
xper
t rat
ers
from
the
min
ing
indu
stry
obs
erve
d ea
ch te
am d
urin
g
the
sim
ulat
ion
and
used
ind
ustry
-sta
ndar
d m
etric
s to
rat
e ea
ch t
eam
s’
perfo
rman
ce d
urin
g th
e cr
itica
l epi
sode
s
Mar
y J.
Wal
ler1
and
Set
h A
. Kap
lan2
1 Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada,
2G
eorg
e M
ason
Uni
vers
ity, F
airfa
x, V
A, U
SA
Intr
oduc
tion
Org
aniz
atio
ns d
epen
d he
avily
on
team
s to
res
pond
to
criti
cal
unex
pect
ed
even
ts. L
eade
rs o
f suc
h te
ams
mus
t ofte
n qu
ickl
y sh
ift fo
cus
betw
een
man
agin
g
inte
rnal
te
am
proc
esse
s an
d in
terfa
cing
w
ith
othe
rs
outs
ide
thei
r te
am
boun
darie
s. In
this
stu
dy, w
e us
e a
dyna
mic
app
roac
h to
iden
tify
whi
ch p
atte
rns
of
lead
ers’
bo
unda
ry
span
ning
ac
tiviti
es
are
asso
ciat
ed
with
hi
gher
te
am
perfo
rman
ce. T
o ac
com
plis
h th
is, w
e st
udie
d fiv
e-pe
rson
Ont
ario
Min
e R
escu
e
team
s ov
er a
tw
o-ye
ar p
erio
d as
the
y co
mpe
ted
durin
g th
e an
nual
pro
vinc
ial
min
e re
scue
team
com
petit
ion
sim
ulat
ions
in u
nder
grou
nd m
ines
.
We
than
k C
andy
s B
alla
nger
- Mic
haud
, Ale
x G
rysk
a, a
nd th
e m
en a
nd w
omen
of O
ntar
io M
ine
Res
cue
for t
heir
supp
ort o
f the
rese
arch
re
porte
d he
re. W
e al
so th
ank
Hin
a Fa
tima,
Jas
min
e D
ove,
Nee
ra A
rya,
Shi
shty
Chu
ttani
, and
Arju
n P
isha
rody
for t
heir
data
cod
ing
effo
rts. T
his
rese
arch
was
fund
ed b
y a
gran
t fro
m th
e S
ocia
l Sci
ence
and
Hum
aniti
es R
esea
rch
Cou
ncil
of C
anad
a.
Res
ults
W
e us
ed T
HE
ME
, a p
atte
rn r
ecog
nitio
n al
gorit
hm, t
o an
alyz
e st
able
pat
tern
s
of i
nter
actio
n, a
nd c
ompa
red
quan
tifie
d pa
ttern
cha
ract
eris
tics
of l
ow-
and
high
-per
form
ing
team
s us
ing
t-tes
ts a
nd d
iscr
imin
ant
func
tion
anal
yses
. W
e
foun
d th
at c
ompa
red
with
cap
tain
s of
low
-per
form
ing
team
s, c
apta
ins
of h
igh-
perfo
rmin
g te
ams:
•E
ngag
ed
in
patte
rns
sign
ifica
ntly
lo
nger
, m
ore
com
plex
, an
d m
ore
reci
proc
al (t
wo-
way
) whe
n bo
unda
ry-s
pann
ing.
•E
ngag
ed
in
patte
rns
sign
ifica
ntly
sh
orte
r, le
ss
com
plex
, an
d le
ss
reci
proc
al w
hen
inte
ract
ing
with
team
mem
bers
.
•E
ngag
ed in
sig
nific
antly
mor
e ite
ratio
ns b
etw
een
inte
rnal
- an
d ex
tern
al-
team
inte
ract
ions
— th
at is
, the
y cr
osse
d th
e te
am b
ound
ary
mor
e of
ten.
Dis
cuss
ion
Our
stu
dy s
ugge
sts
that
dur
ing
extre
me
even
ts, t
eam
lead
ers
of m
ore
effe
ctiv
e
team
s ar
e be
tter a
ble
than
oth
ers
to it
erat
e be
twee
n di
rect
ing
mem
bers
insi
de
the
boun
dary
of
the
team
and
spa
nnin
g te
am b
ound
arie
s to
eng
age
on a
part
icip
ativ
e le
vel
with
oth
ers.
Thi
s pa
ttern
of
com
mun
icat
ion
over
tim
e is
sim
ilar
to p
atte
rns
foun
d in
tern
al t
o te
ams
faci
ng c
risis
situ
atio
ns (
Wal
ler,
Gup
ta,
& G
iam
batis
ta,
2004
), bu
t co
ngru
ent
with
the
ext
erna
l per
spec
tive
of
team
dy
nam
ics
(e.g
. A
ncon
a &
C
aldw
ell,
1992
), ou
r st
udy
inte
grat
es
inte
ract
ions
out
side
tea
m b
ound
arie
s an
d m
ore
prec
isel
y id
entif
ies
thos
e
beha
viou
rs
sepa
ratin
g m
ore-
fro
m
less
-effe
ctiv
e te
ams
durin
g cr
itica
l
situ
atio
ns.
Con
clus
ions
Fu
ture
wor
k w
ill te
st th
e ge
nera
lizab
ility
of t
he re
sults
repo
rted
here
with
team
s fa
cing
crit
ical
eve
nts
in le
ss e
xact
ing
phys
ical
env
ironm
ents
- fo
r
exam
ple,
cris
is m
anag
emen
t tea
ms
enco
unte
ring
repe
titio
nal o
r mis
cond
uct-
orie
nted
cris
es. W
e ho
pe o
ur c
ontin
ued
wor
k w
ith O
ntar
io M
ine
Res
cue
will
info
rm tr
aini
ng p
roto
cols
and
add
pos
itive
ly to
the
wor
k of
thes
e in
cred
ible
team
s.
Atta
chin
g re
cord
er to
hel
met
Min
e re
scue
team
dur
ing
first
aid
epi
sode
Team
pre
parin
g un
derg
roun
d
The
rese
arch
ers
unde
rgro
und
All
phot
os u
sed
with
per
mis
sion
from
wor
kpla
cesa
fety
north
.ca
Spotlight on Research 2015 71
72 Schulich School of Business
Cos
t m
inim
izat
ion
Inte
rmed
iary
Pro
duce
r
Rev
enue
ge
nera
tion
UK
Con
text
•
U
K
has
a hi
ghly
fle
xibl
e la
bor
mar
ket
with
la
rge
mig
rant
la
bor
po
pula
tion.
•
Sta
tuto
ry
prot
ectio
ns
for
wor
kers
ha
ve
grad
ually
er
oded
ov
er
past
deca
des,
cre
atin
g si
gnifi
cant
vul
nera
bilit
y to
exp
loita
tion.
•
Sev
eral
tho
usan
d w
orke
rs i
dent
ified
as
vict
ims
of f
orce
d la
bor
– to
date
, onl
y on
e pr
osec
utio
n.
•
Gov
ernm
ent
is
curr
ently
de
velo
ping
a
new
M
oder
n S
lave
ry
Act
to
enab
le b
ette
r pro
secu
tion
of p
erpe
trato
rs.
Inno
vatio
ns in
the
Bus
ines
s M
odel
s of
Mod
ern
Slav
ery:
A U
K S
tudy
Met
hod
•
Exa
min
ed 3
ind
ustri
es t
hat
wer
e kn
own
to h
ave
recu
rrin
g in
cide
nce
of
fo
rced
labo
r – fo
od, c
onst
ruct
ion,
and
can
nabi
s cu
ltiva
tion.
•
Qua
litat
ive
met
hodo
logy
in
clud
ing
32
dept
h in
terv
iew
s w
ith
rele
vant
st
akeh
olde
rs
(incl
udin
g po
lice,
N
GO
s,
busi
ness
as
soci
atio
ns,
soci
al
au
dito
rs, m
igra
nt c
entre
s, la
wye
rs, e
tc.).
•
Ext
ensi
ve s
econ
dary
dat
a of
200
doc
umen
ts i
nclu
ding
cou
rt re
cord
s,
re
ports
and
med
ia a
rticl
es.
And
rew
Cra
ne1 ,
Gen
evie
ve L
ebar
on2 ,
Jean
Alla
in3 ,
Laya
Beh
baha
ni4
1 Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada,
2U
nive
rsity
of S
heffi
eld,
UK
, 3Q
ueen
’s U
nive
rsity
, Bel
fast
, Ire
land
, 4S
imon
Fra
ser U
nive
rsity
, Can
ada
Intr
oduc
tion
•
Sla
very
-like
pra
ctic
es h
ave
been
con
sist
ently
ide
ntifi
ed i
n vi
rtual
ly e
very
coun
try.
•
ILO
es
timat
es
that
so
me
21m
pe
ople
ar
e in
co
nditi
ons
of
mod
ern
sl
aver
y.
•
Acc
ordi
ng t
o a
2014
UN
rep
ort,
mod
ern
slav
ery
is “
a $1
50bn
-a-y
ear
bu
sine
ss”.
•
How
ever
, ou
r un
ders
tand
ing
of
the
busi
ness
of
m
oder
n sl
aver
y is
extre
mel
y lim
ited
beyo
nd t
he i
dea
that
it
is d
riven
by
labo
ur s
uppl
y
rest
rictio
ns a
nd d
rive
to re
duce
the
cost
of l
abou
r.
•
We
soug
ht t
o ex
plor
e w
heth
er t
he e
mer
genc
e of
mod
ern
slav
ery
had
be
en a
ccom
pani
ed b
y th
e cr
eatio
n of
new
bus
ines
s m
odel
s.
•D
evel
opin
g co
untry
con
text
(U
K)
was
sel
ecte
d to
rev
eal i
nnov
ativ
e ra
ther
th
an a
rcha
ic b
usin
ess
appr
oach
es.
Figu
re 1
: Inn
ovat
ive
busi
ness
mod
els
of m
oder
n sl
aver
y
Pro
ject
was
fund
ed b
y Jo
seph
Row
ntre
e Fo
unda
tion.
Res
ults
•
We
iden
tifie
d fo
ur n
ew b
usin
ess
mod
els
of m
oder
n sl
aver
y.
•Th
e ec
onom
ic
driv
ers
for
dire
ct
prod
ucer
s (e
.g.
farm
ers
or
cons
truct
ion
firm
s)
wer
e di
ffere
nt
to
thos
e of
in
term
edia
ries
(e.g
.
recr
uitm
ent a
gent
s or
traf
ficke
rs).
• S
ome
mod
els
relie
d on
cos
t min
imiz
atio
n, e
ither
by
exer
ting
cont
rol
over
wor
kers
to
av
oid
dete
ctio
n of
th
eir
illeg
al
busi
ness
, su
ch
as
drug
prod
uctio
n (r
educ
ing
risks
) or
usi
ng c
oerc
ion
to p
ay b
elow
min
imum
wag
e (e
vadi
ng le
gal m
inim
ums)
.
• O
ther
mod
els
relie
d m
ore
on u
sing
con
trol
over
wor
kers
to
gene
rate
reve
nue,
eith
er f
rom
inv
olun
tary
pur
chas
ing
of f
ood,
acc
omm
odat
ion,
tran
spor
t, an
d lo
ans
( wor
kers
as
cons
umer
s) o
r ste
alin
g be
nefit
s a
nd
iden
tity
thef
t (le
vera
ging
ass
ets)
.
Dis
cuss
ion
•C
reat
ivity
is t
ypic
ally
see
n as
a f
orce
for
goo
d in
bus
ines
s bu
t th
is s
tudy
reve
als
the
dark
sid
e of
cre
ativ
ity.
•In
nova
tive
busi
ness
mod
els
for
slav
ery
have
em
erge
d in
the
inte
rsec
tions
of in
stitu
tiona
l con
stra
ints
and
eco
nom
ic o
ppor
tuni
ties.
•Th
eorie
s of
mod
ern
slav
ery
need
to
be r
efin
ed t
o ta
ke a
ccou
nt o
f th
ese
mod
els
that
dev
iate
from
the
com
mon
ass
umpt
ion
that
sla
very
is s
impl
y a
mea
ns to
redu
ce la
bor c
osts
and
add
ress
labo
r sho
rtage
s.
Take
Aw
ay M
essa
ge
•Th
e bu
sine
ss m
odel
s of
mod
ern
slav
ery
need
to
be –
and
can
be
–
unde
rsto
od b
ette
r if w
e ar
e to
era
dica
te th
e w
orst
form
s of
exp
loita
tion.
•M
oder
n S
lave
ry A
ct (
and
othe
r po
licy
inte
rven
tions
) ne
ed to
be
care
fully
attu
ned
to
the
inno
vativ
e w
ays
in
whi
ch
perp
etra
tors
ac
tual
ly
gain
com
mer
cial
adv
anta
ge fr
om m
oder
n sl
aver
y in
dev
elop
ed c
ount
ries.
Mod
el 3
E
vadi
ng
lega
l m
inim
ums
Mod
el 4
W
orke
rs
as
cons
umer
s
Mod
el 1
R
educ
ing
risks
Mod
el 2
Le
vera
ging
as
sets
Farm
wor
kers
can
be
turn
ed in
to c
onsu
mer
s an
d us
ed a
s a
sour
ce o
f re
venu
e by
traf
ficke
rs
Org
aniz
ed c
rimin
al g
angs
in th
e U
K lo
ck u
p tra
ffick
ed w
orke
rs a
s "g
arde
ners
" in
urba
n gr
ow-o
ps a
s a
way
of r
educ
ing
the
risks
of d
etec
tion
Pho
to C
redi
t © W
est M
idla
nds
Pol
ice.
Rep
rodu
ced
unde
r the
Cre
ativ
e C
omm
ons
Lice
nse
http
s://w
ww.
flick
r.com
/pho
tos/
wes
tmid
land
spol
ice/
http
s://w
ww.
flick
r.com
/pho
tos/
wes
tmid
land
spol
ice/
sets
/721
5763
5395
4140
38
Pho
to C
redi
t © O
rego
n D
epar
tmen
t of A
gric
ultu
re. R
epro
duce
d un
der t
he C
reat
ive
Com
mon
s Li
cens
e.
http
s://w
ww.
flick
r.com
/pho
tos/
orag
ricul
ture
http
s://w
ww.
flick
r.com
/pho
tos/
orag
ricul
ture
/set
s/72
1576
3936
7508
794/
page
2/
72 Schulich School of Business
Res
earc
h Q
uest
ions
•
Wha
t rol
e ha
ve p
oliti
cal l
eade
rs p
laye
d in
the
shift
of v
alue
s an
d et
hica
l
para
digm
s of
Chi
nese
firm
s?
•W
hy a
nd h
ow h
as t
he t
rans
form
atio
n of
the
bus
ines
s an
d ec
onom
ic
syst
em in
Chi
na a
ffect
ed th
e et
hica
l par
adig
m o
f bus
ines
s or
gani
zatio
ns?
Polit
ical
Lea
ders
hip
and
the
Ethi
cal B
ehav
ior o
f Bus
ines
s in
Chi
na: A
Coe
volu
tion
App
roac
h
Met
hod
•C
once
ptua
l pap
er
•A
co-e
volu
tion
appr
oach
of e
thic
al b
ehav
ior
and
polit
ical
lead
ersh
ip in
Chi
na’s
trans
ition
eco
nom
y
Just
in T
an1 a
nd A
nne
Barr
aqui
er2
1 Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada,
2S
kem
a B
usin
ess
Sch
ool,
Sop
hia-
Ant
ipol
is, F
ranc
e
Intr
oduc
tion
In C
hina
, the
dom
inan
t log
ic is
pro
vide
d by
the
Chi
nese
lead
ers
wor
ldvi
ew.
Lead
ers
wor
ldvi
ew h
as th
e ca
paci
ty to
sha
pe s
ocia
l and
cul
tura
l tre
nds.
•
Eac
h ch
ange
of l
eade
rshi
p ha
s le
ad to
a re
nova
tion
of th
e go
vern
ing
logi
c.
A go
vern
ing
logi
c is
nee
ded
by th
e ne
w le
ader
ship
, to
purs
ue it
s ob
ject
ives
an
d im
pose
new
dire
ctio
ns.
•N
ew d
omin
ant
logi
c is
sup
porte
d by
stro
ngly
dev
ised
man
date
s, e
nact
ed
thro
ugh
disc
ours
e an
d pr
opag
anda
. •
An
exam
inat
ion
of s
ucce
ssiv
e le
ader
ship
fig
ures
and
man
date
s re
veal
s ho
w th
ey ta
citly
enc
oura
ged
a sh
ift o
f eth
ical
par
adig
m a
nd th
e ad
optio
n of
un
ethi
cal c
ondu
ct.
•Th
is p
roce
ss is
ana
lyse
d w
ithin
the
fram
ewor
k of
coe
volu
tion
theo
ry.
Res
ults
•
We
obse
rve
a pa
ralle
l bet
wee
n su
cces
sive
pol
itica
l lea
ders
, tra
nsiti
on
phas
es o
f the
eco
nom
y, th
e sl
ogan
s us
ed b
y le
ader
s, a
nd th
e et
hica
l
outc
omes
of t
heir
lead
ersh
ip.
•Th
e so
cial
ist
econ
omy
prom
oted
an
egal
itaria
n so
ciet
y bu
t ge
nera
ted
pove
rty.
•C
orru
ptio
n de
velo
ped
whe
n D
eng
prov
ided
a l
icen
ce t
o ge
t ric
h bu
t
was
ena
cted
und
er th
e le
ader
ship
of J
iang
Zem
in.
•Th
e in
trica
cy o
f th
e re
latio
nshi
p be
twee
n bu
sine
ss a
nd p
oliti
cs u
rges
Hu
Jint
ao to
pro
mot
e so
cial
just
ice.
Dis
cuss
ion
•U
nlik
e cl
assi
cal
alig
nmen
t of
bu
sine
ss
stra
tegy
w
ith
its
econ
omic
en
viro
nmen
t, w
hich
invo
lves
a r
ecip
roca
l inf
luen
ce, i
n C
hina
the
polit
ical
le
ader
ship
in
terfe
res
as
an
impo
rtant
de
term
inan
t of
or
gani
zatio
nal
beha
viou
r.
•Its
in
fluen
ce
cons
ists
of
se
vera
l at
tribu
tes:
un
disp
uted
po
wer
(n
o se
para
tion
of p
ower
s),
pow
er o
f di
scou
rse
and
legi
timac
y fo
r a
stro
ng
Chi
na. I
n its
coe
volu
tion
with
the
trans
form
atio
n of
the
econ
omy,
lead
ers
have
als
o pr
omot
ed a
nd e
nhan
ced
the
deve
lopm
ent
of u
neth
ical
and
de
vian
t beh
avio
r.
•Th
e st
udy
exam
ines
Xi J
inpi
ng’s
lead
ersh
ip in
resp
ect t
o et
hica
l iss
ues.
•
The
stud
y ca
n be
nefit
Chi
nese
bus
ines
ses,
lead
ers
and
sch
olar
s, a
s w
ell
as in
tern
atio
nal r
esea
rche
rs in
tere
sted
in C
hina
.
Take
Aw
ay M
essa
ge
•A
s th
e IM
F ju
st c
onfir
med
tha
t it
has
just
bec
ome
the
wor
ld e
cono
mic
le
ader
, is
Chi
na h
eadi
ng fo
r an
ethi
cal o
r une
thic
al ty
pe o
f lea
ders
hip?
•W
hat
role
mod
el w
ill C
hina
pro
pose
to
the
wor
ld,
and
to e
mer
ging
po
wer
s in
par
ticul
ar?
Envi
ronm
ent
attr
ibut
es
-Le
ader
ship
fig
ures
-Le
ader
s’
wor
ldvi
ew
-Le
ader
ship
m
anda
tes
-D
isco
urse
and
pr
opag
anda
Org
aniz
atio
nal
beha
vior
-S
trate
gy
-S
truct
ure
-G
row
th
-Va
lues
-E
thic
al c
ondu
ct
Coe
volu
tion:
A R
ecur
sive
Pro
cess
.
Figu
re 1
MO
DEL
OF
ALI
GN
EMEN
T O
F LE
AD
ERSH
IP, T
RA
NSI
TIO
N
PHA
SE, D
ISC
OU
RSE
AN
D B
EHAV
IOR
Spotlight on Research 2015 73
74 Schulich School of Business
Res
earc
h Q
uest
ions
•
How
di
d th
ese
thre
e ac
quire
su
ch
a vi
sibl
e an
d po
wer
ful
stat
us
as
“aut
horit
ies
on m
anag
emen
t”?
•E
xam
inin
g pr
oces
ses
of in
stitu
tiona
lizat
ion,
inte
rnat
iona
lizat
ion
(cor
e
– pe
riphe
ry),
and
com
mer
cial
izat
ion
•W
ere
ther
e al
tern
ativ
e pa
ths,
ulti
mat
ely
not t
aken
?
Aut
horit
ies
on M
anag
emen
t: B
usin
ess
Scho
ols,
Con
sulta
nts,
Med
ia
Met
hod
His
toric
al: P
erio
diza
tion
of d
evel
opm
ents
and
his
toriz
atio
n of
term
s (fr
om
19th
to 2
1st c
entu
ry)
•B
ased
on
writ
ings
at t
he ti
me
and
past
as
wel
l as
curr
ent r
esea
rch
Com
para
tive:
Var
iatio
n be
twee
n co
untri
es a
nd m
eta-
regi
ons:
Am
eric
as,
Eur
ope,
Asi
a, A
frica
(diff
icul
t due
to a
Wes
tern
-dom
inat
ed li
tera
ture
)
•E
xam
inin
g pa
ttern
s of
diff
usio
n an
d id
entif
ying
dom
inan
ce e
ffect
s
Inte
grat
ive:
Int
erre
latio
nshi
p be
twee
n th
e au
thor
ities
, em
bedd
edne
ss i
n
broa
der s
ocie
tal,
econ
omic
and
pol
itica
l dev
elop
men
ts
•Li
nks
with
ext
erna
l dev
elop
men
ts (r
ole
of a
genc
y an
d st
ruct
ure)
Lars
Eng
wal
l1 , M
atth
ias
Kipp
ing2
, Beh
lül Ü
sdik
en3
1 Upp
sala
Uni
vers
ity, S
wed
en, 2
Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada,
3 Sab
anci
Uni
vers
ity, I
stan
bul,
Turk
ey
Intr
oduc
tion
•Th
e in
exor
able
rise
of “
man
agem
ent”
sinc
e th
e m
id 2
0th c
entu
ry
•M
ajor
cha
nges
in th
e te
rmin
olog
y its
elf
•“M
anag
emen
t” or
igin
ally
use
d fo
r ho
useh
olds
and
chu
rche
s, w
here
as t
he
term
s re
ferr
ing
to b
usin
ess
wer
e “c
omm
erce
” and
“bus
ines
s ad
min
istra
tion”
•S
ince
the
late
19th
cen
tury
, thr
ee a
ctor
s ha
ve g
radu
ally
acq
uire
d de
finiti
onal
pow
er o
ver
wha
t is
“go
od”
man
agem
ent:
busi
ness
sch
ools
, co
nsul
tant
s,
med
ia
•H
ave
also
bec
ome
maj
or b
usin
esse
s in
thei
r ow
n rig
ht
Figu
re 1
: Sha
re o
f the
term
“M
/man
agem
ent”
in G
oogl
e B
ooks
Ack
now
ledg
emen
ts: U
nder
lyin
g re
sear
ch w
as fu
nded
by
gran
ts fr
om v
ario
us s
ourc
es, i
n pa
rticu
lar t
he E
urop
ean
Com
mis
sion
; sup
port
for m
eetin
gs o
f the
aut
hors
was
rece
ived
fro
m th
e M
arcu
s an
d A
mal
ia W
alle
nber
g Fo
unda
tion
INSE
RT
imag
e on
pos
ter r
elat
ing
to
subj
ects
, app
arat
us u
sed,
rese
arch
si
tes,
etc
.
Phot
os a
re n
ice
eye
catc
hers
..
Onl
y us
e hi
gh q
ualit
y ph
otos
. R
emem
ber p
erm
issi
ons
of u
se.
Ove
rvie
w
• F
our o
verla
ppin
g pe
riods
of d
evel
opm
ent:
•Fo
unda
tions
(1
850s
to
19
10s)
: P
ione
erin
g in
itiat
ives
an
d ea
rly
expa
nsio
n, a
lbei
t nes
ted
with
in o
ther
fiel
ds
•In
S
earc
h of
D
irect
ions
(1
910s
to
19
40s)
: M
ovem
ents
to
war
ds
inde
pend
ence
th
roug
h pr
ofes
sion
aliz
atio
n an
d (in
tern
atio
nal)
orga
niza
tion
•B
oom
(1
940s
to
19
80s)
: E
spou
sing
a
scie
nce
“mod
el”
and
incr
easi
ngly
glo
bal r
each
of A
mer
ican
term
inol
ogy
and
tem
plat
es
•C
omm
odifi
catio
n (1
980s
to
to
day)
: B
uild
ing
a “m
anag
emen
t
know
ledg
e in
dust
ry”
•Im
porta
nt ro
le o
f ent
repr
eneu
rial i
ndiv
idua
ls a
nd o
rgan
izat
ions
•S
igni
fican
t inf
luen
ce o
f bro
ader
geo
polit
ical
eve
nts,
e.g
. wor
ld w
ars
Dis
cuss
ion
•Is
the
rise
and
the
curr
ent p
ower
of t
hese
aut
horit
ies
a go
od th
ing?
•D
eep,
glo
bal p
enet
ratio
n of
pow
erfu
l net
wor
ks, u
nifo
rm th
inki
ng
•S
houl
d m
ore
colla
bora
tive
form
s of
kno
wle
dge
exch
ange
be
revi
ved?
•W
ill so
cial
tech
nolo
gies
und
erm
ine
dom
inan
t bus
ines
s m
odel
s?
•W
here
cou
ld re
form
orig
inat
e: fr
om w
ithin
, pra
ctic
e or
gov
ernm
ents
?
Find
ings
•
Ove
rall,
a p
roce
ss o
f inc
reas
ing
inst
itutio
naliz
atio
n
•Fr
om b
orro
wed
to o
wn,
sel
f-sus
tain
ing
repu
tatio
n an
d le
gitim
acy
•A
lso,
gro
win
g co
mm
erci
aliz
atio
n
•Fr
om “c
hang
ing
the
wor
ld” t
o “m
akin
g m
oney
”
•Fr
ee e
xcha
nges
of k
now
ledg
e be
com
e m
argi
naliz
ed
•D
omin
ance
of U
S A
mer
ican
act
ors
and
idea
s al
mos
t fro
m th
e ou
tset
•W
ith G
erm
any
and
the
UK
as
(tem
pora
ry) s
econ
dary
cen
ters
Figu
re 2
: The
inte
rrel
atio
nshi
ps b
etw
een
the
auth
oriti
es &
pra
ctic
e
74 Schulich School of Business
Res
earc
h Q
uest
ions
•
How
ext
ensi
ve is
this
org
aniz
atio
nal c
hang
e in
the
bank
ing
sect
or
•Lo
okin
g fo
r ado
pter
s ar
ound
the
wor
ld
•H
ow d
id c
onsu
ltant
s co
nvin
ce th
e ba
nks
to in
trodu
ce th
e M
-form
?
•In
-dep
th s
tudi
es o
f ado
ptio
n in
sel
ecte
d ca
ses
•W
hat w
ere
the
cons
eque
nces
in th
e sh
ort-
and
in th
e lo
ng-te
rm?
Ant
eced
ent o
f Cris
is?
The
Man
ager
ializ
atio
n of
Ban
king
Sin
ce th
e 19
60s
Met
hod
•Id
entif
ying
ado
pter
s vi
a se
cond
ary
liter
atur
e an
d ba
nk a
rchi
ves
•E
xam
inin
g th
e ad
optio
n pr
oces
s th
roug
h in
-dep
th,
arch
ive-
base
d
com
para
tive
case
stu
dies
, us
ing
hist
oric
al m
etho
dolo
gy (
criti
cal
sour
ce
anal
ysis
, tria
ngul
atio
n, h
erm
eneu
tics)
•C
olle
ctin
g ad
ditio
nal b
ank-
spec
ific
stat
istic
s, e
.g. o
n va
rious
per
form
ance
mea
sure
s an
d ba
ckgr
ound
/car
eers
of b
ank
empl
oyee
s
1 Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada,
2D
epar
tmen
t of H
isto
ry a
nd A
rt H
isto
ry, U
trech
t Uni
vers
ity, U
trech
t, Th
e N
ethe
rland
s, 3 R
otte
rdam
Sch
ool o
f Man
agem
ent,
Era
smus
Uni
vers
ity, T
he N
ethe
rland
s
Intr
oduc
tion
•C
ombi
natio
n of
two
sepa
rate
rese
arch
inte
rest
s / p
roje
cts
•M
K: C
onsu
ltant
s an
d th
e tra
nsfe
r of m
anag
emen
t ide
as/fa
shio
ns
•G
W: L
ong-
term
orig
ins
of c
urre
nt c
risis
and
the
role
of “
perfo
rmat
ivity
”
•C
onve
rgen
ce a
roun
d th
e in
trodu
ctio
n of
the
mul
tidiv
isio
nal
or M
-form
(an
d
rela
ted
man
agem
ent t
ools
) in
bank
s si
nce
the
1960
s
•S
o fa
r onl
y st
udie
d fo
r man
ufac
turin
g fir
ms
(Cha
ndle
r et a
l.)
Figu
re 1
: Ban
ks a
dopt
ing
a m
ultid
ivis
iona
l org
aniz
atio
n
Ack
now
ledg
emen
ts: F
or th
is re
sear
ch, G
erar
da W
este
rhui
s ha
s be
nefit
ted
from
a V
EN
I gr
ant f
rom
the
Dut
ch S
cien
ce F
ound
atio
n (N
WO
)
INSE
RT
imag
e on
pos
ter r
elat
ing
to
subj
ects
, app
arat
us u
sed,
rese
arch
si
tes,
etc
.
Phot
os a
re n
ice
eye
catc
hers
..
Onl
y us
e hi
gh q
ualit
y ph
otos
. R
emem
ber p
erm
issi
ons
of u
se.
Inse
rt R
esul
ts g
raph
ic
•W
hat t
ype
of g
raph
bes
t rep
rese
nts
data
(bar
vs
line
grap
h).
•C
onsi
dera
tions
- ke
ep re
sults
sim
ple
and
easy
to u
nder
stan
d, u
se c
olor
to h
ighl
ight
diff
eren
ces
and
inte
ract
ions
.
•H
int:
It m
ay b
e ea
sier
to
cons
truct
a g
raph
fro
m e
xcel
, sa
ve it
as
an
imag
e an
d pa
ste
here
.
Prel
imin
ary R
esul
ts
•B
luep
rint:
McK
inse
y cr
eate
d a
deta
iled
orga
niza
tiona
l /
man
ager
ial
mod
el, s
umm
ariz
ed in
var
ious
arti
cles
and
a re
port
•Ve
ry s
imila
r to
GM
's M
-form
(fre
quen
tly m
entio
n A
lfred
Slo
an)
•D
isse
min
atio
n: S
prea
ds it
qui
ckly
aro
und
the
wor
ld (m
imet
ic e
ffect
)
•Fr
om th
e la
te 1
960s
(US
, UK
, D, N
L, F
) thr
ough
the
1980
s
•C
hang
e pr
oces
s:
Invo
lves
la
ngua
ge
(und
erst
andi
ng
of
self)
,
orga
niza
tiona
l st
ruct
ure
(dec
entra
lizat
ion)
an
d m
anag
emen
t to
ols
(bud
getin
g an
d pl
anni
ng; i
ndiv
idua
lized
ince
ntiv
es)
•P
reve
nt a
nd o
verc
ome
resi
stan
ce th
roug
h un
ders
tand
ing
and
use
of
inte
rnal
pol
itics
and
by
scrip
ting
inte
rnal
com
mun
icat
ions
•U
nifo
rmiz
atio
n: O
utco
me
and
proc
ess
vary
littl
e fro
m b
ank
to b
ank
Dis
cuss
ion
•S
igni
fican
t cha
nge
from
pre
viou
s ba
nk s
truct
ure
and
men
talit
y
•C
olle
ctiv
e, c
onse
rvat
ive,
tra
it-ba
sed,
“ca
thed
ral-l
ike”
mod
el t
o on
e
base
d on
ind
ivid
ual
resp
onsi
bilit
y an
d ac
coun
tabi
lity,
ena
blin
g an
d
enco
urag
ing
mor
e ag
gres
sive
mar
ketin
g an
d sa
les
•C
an a
nd s
houl
d m
anag
emen
t mod
els
be a
cros
s se
ctor
s?
•Is
sel
ling
loan
s lik
e se
lling
cars
? P
roba
bly
not
•D
id th
ese
and
asso
ciat
e ch
ange
s, e
.g. i
n re
crui
ting,
faci
litat
e cr
ises
?
•S
ome
indi
catio
ns, b
ut d
iffic
ult t
o sh
ow c
ausa
lity
Take
Aw
ay M
essa
ge
•C
onsu
ltant
s pr
omis
e ta
ilor-
mad
e ha
ute
cout
ure,
but
sel
l hi
gh-p
riced
pr
êt-à
-por
ter
•O
rigin
s of
ban
king
cris
es m
ight
go
deep
er th
an (r
ecen
t) de
regu
latio
n
•S
olut
ions
als
o ha
ve to
add
ress
und
erst
andi
ng o
f sel
f, re
crui
tmen
t, pr
omot
ion,
acc
ount
abilit
ies,
etc
.
Mat
thia
s K
ippi
ng1 a
nd G
erar
da W
este
rhui
s2,3
Spotlight on Research 2015 75
76 Schulich School of Business
Res
earc
hQ
uest
ions
•Is
resp
onsi
ble
inve
stm
ent
ake
yto
resp
onsi
ble
min
ing
inth
eC
anad
ian
north
?
•W
hatd
oes
resp
onsi
ble
min
ing
look
like?
•Ar
eth
ere
relia
ble
resp
onsi
ble
min
ing
indi
cato
rs?
Wha
tare
they
?Min
ing,
Eth
ics
and
Res
pons
ible
Inve
stm
ent
Met
hod:
A C
ase
Stud
y
Tool
s•
Aca
sest
udy
ofa
Firs
tNat
ion,
the
Nas
kapi
,im
pact
edby
min
ing
•A
com
mun
itykn
owle
dge
need
sas
sess
men
t
•P
urpo
se:
toid
entif
ykn
owle
dge
need
sre
quire
dfo
ran
effe
ctiv
e
com
mun
ityre
spon
seto
oppo
rtuni
ties
and
chal
leng
es
•A
wel
lbei
ngba
selin
est
udy
•P
urpo
se:
crea
tea
base
line
agai
nst
whi
chim
pact
sca
nbe
scie
ntifi
cally
mea
sure
d
•S
emis
truct
ured
inte
rvie
ws
with
com
mun
ityan
dm
inin
gco
mpa
nyle
ader
s
Ant
icip
ated
Res
ults
•E
ffect
ive
iden
tific
atio
n of
his
toric
al m
inin
g re
late
d im
pact
s on
the
com
mun
ity a
nd c
omm
unity
mem
bers
.
•E
vide
nce
of a
his
tory
of i
neffe
ctiv
e co
mm
unic
atio
n be
twee
n co
mpa
nies
and
com
mun
ity le
ader
s w
ith c
omm
unity
mem
bers
.
•D
emon
stra
tion
of th
e ce
ntra
l rol
e of
com
mun
ity s
choo
l in
resp
ondi
ng to
oppo
rtuni
ties
and
chal
leng
es.
•N
eed
for c
urric
ulum
inno
vatio
n fro
m K
to 1
1
•Im
porta
nce
of tr
aditi
onal
kno
wle
dge
•N
eed
for a
long
term
per
spec
tive
and
care
ful c
omm
unity
bas
ed
econ
omic
dev
elop
men
t pla
nnin
g.
Wes
Cra
gg
Sch
ulic
h S
choo
l of B
usin
ess,
Yor
k U
nive
rsity
, Tor
onto
, Can
ada
Intr
oduc
tion
•C
anad
ais
aw
orld
lead
erin
min
ing
and
min
ing
inve
stm
ent.
•Th
eC
anad
ian
north
ison
eof
the
wor
ld’s
mos
tat
tract
ive
dest
inat
ion
for
new
min
ing
proj
ects
.
•M
ost
ofne
wm
inin
gba
sed
econ
omic
deve
lopm
ent
(e.g
.th
eR
ing
ofFi
re)
will
take
plac
eon
Firs
tNat
ion
tradi
tiona
lter
ritor
y.
•To
date
Firs
tN
atio
nsha
vefo
rth
em
ost
part
real
ized
few
bene
fits
and
expe
rienc
edsu
bsta
ntia
lmin
ing
rela
ted
cost
sfro
mm
inin
gpr
ojec
tson
thei
r
tradi
tiona
lter
ritor
ies.
Ack
now
ledg
emen
ts: W
e ap
prec
iate
the
supp
ort o
f the
Nas
kapi
Nat
ion
Pro
ject
is fu
nded
by
SS
HR
c an
d th
e C
anad
ian
Bus
ines
s E
thic
s R
esea
rch
Net
wor
k._
Inse
rt th
e Ph
il In
dex
here
Obj
ectiv
e•
Toid
entif
yre
spon
sibl
ein
vest
men
tind
icat
ors
asse
enth
roug
hth
eey
esof
Firs
tNat
ion
Com
mun
ities
.
Dis
cuss
ion
•Th
isre
sear
chpr
ojec
tis
curre
ntly
unde
rway
.
•Th
ego
alis
ase
tof
indi
cato
rsth
atre
spon
sibl
ein
vest
ors
can
use
in
mak
ing
inve
stm
ents
inno
rther
nC
anad
ian
min
ing
proj
ects
.
•E
thic
ally
grou
nded
min
ing
who
sefo
cus
issu
stai
nabi
lity
isdi
fficu
ltif
not
impo
ssib
lein
the
abse
nce
ofin
vest
ors
unde
rsta
ndin
gan
dsu
ppor
t.
•O
btai
ning
aso
cial
licen
ceto
min
eon
abor
igin
altra
ditio
nal
terr
itory
requ
ires
resp
ectf
orA
borig
inal
pers
pect
ives
and
tradi
tiona
lkno
wle
dge.
Take
Aw
ay M
essa
ge•
Eth
ical
min
ing
crea
tes
trust
.
•R
espo
nsib
le,e
thic
ally
grou
nded
min
ing
gene
rate
slo
ngte
rmbe
nefit
sfo
rm
inin
g,m
inin
gco
mpa
nies
,loc
alco
mm
uniti
esim
pact
s.
76 Schulich School of Business
Schulich researchers are conducting top-calibre
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