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Multinational enterprises are failing the world’s sustainability goals

A new study from the University of Surrey found that multinational enterprises (MNEs) are actively contributing to environmental problems despite claiming to address them. The research team argues that there is an urgent need for MNEs to reassess their innovation strategies to align with the UN Sustainable Development Goals.

SourceUniversity of Surrey·JournalInternational Business Review·TypeObservational study·DateDec 13, 2024

Adoption of AI calls for new kind of communication competence from sales managers

The study found that integrating AI into sales teams requires sales managers to combine traditional interpersonal communication competence with new AI-related skills. Effective communication involves motivation, knowledge, empathy, and adaptability, as well as crafting effective prompts to AI and maintaining a polite tone.

SourceUniversity of Eastern Finland·JournalIndustrial Marketing Management·DateDec 11, 2024

Better environmental performance boosts profits and cuts costs

Researchers analyzed financial and environmental data from 8,547 companies across 34 countries, revealing that stronger environmental engagement leads to better financial outcomes. Companies with superior environmental performance demonstrate better financial results and attract greater interest from investors.

SourceKyushu University·JournalCorporate Social Responsibility and Environmental Management·TypeData/statistical analysis·DateDec 10, 2024

When club teammates become World Cup rivals

A new study examines the hidden tension when coworkers compete on behalf of rival organizations, using soccer players as a case study. The researchers found that teammates who competed against each other on opposing national teams reduced collaboration within their shared clubs, passing the ball to each other around 11% less often in t...

SourceBocconi University·JournalStrategic Management Journal·DateNov 26, 2024

To catch financial rats, a better mousetrap

Researchers propose a new and more effective way to gauge earnings quality, identifying companies that may be using accounting tricks to cover up problems. The Earnings Quality Score (EQSCORE) model has been shown to outperform existing approaches in predicting fraud, providing valuable insights for investors and regulators.

SourceUniversity of Texas at Austin·JournalContemporary Accounting Research·DateNov 26, 2024

When it comes to corporate climate action, a single policy isn’t enough

A study published in PLOS Climate found that single corporate climate policies have limited value for policymakers and investors. Companies with a range of climate policies, however, show an average of over 20% emission reductions. This suggests that a comprehensive policy mix is more effective for supporting climate action.

SourcePLOS·JournalPLOS Climate·TypeObservational study·DateNov 13, 2024

Research shows managers of firms handling recalls should review media scrutiny before deciding whether to lobby

Researchers found that companies are more likely to strategically refrain from lobbying when receiving negative media coverage of product recalls. Lobbying can reduce costs related to product recalls, but the repercussions to firm reputation appear not to be worth the savings.

SourceStrategic Management Society·JournalStrategic Management Journal·TypeData/statistical analysis·DateNov 13, 2024

Protecting tax whistleblowers pays off

A study by Aruhn Venkat found that the law led to a significant reduction in tax avoidance strategies, including shifting money overseas or moving it to special purpose entities. The law also had a deterrent effect on companies, with publicity around actual whistleblower lawsuits having a complementary effect.

SourceUniversity of Texas at Austin·JournalManagement Science·DateNov 12, 2024

Do commercial ties influence ESG ratings?

A study published in Journal of Accounting Research finds that conflicts of interest from commercial ties lead to biased ESG ratings. ESG ratings for existing clients increased by 17.16% after the acquisitions, highlighting the need for regulation and investor awareness.

SourceWiley·JournalJournal of Accounting Research·DateNov 6, 2024

Firms that read more perform better

A new study by the Complexity Science Hub finds that firms with higher levels of information consumption outperform their peers financially and are more innovative. The research reveals an 'economy of scale' in news consumption, where larger firms read a greater number of unique pieces of news.

SourceComplexity Science Hub·JournalRoyal Society Open Science·TypeData/statistical analysis·DateNov 5, 2024

Logic-based approaches add value and longevity for user entrepreneurs

A study by Bayes Business School suggests that training aspiring entrepreneurs on strategic decision-making can help them identify blind spots and open up new business ideas. The research found that women entrepreneurs who receive such training are more likely to successfully translate their product or service ideas into actual ventures.

SourceCity St George’s, University of London·JournalOrganization Science·TypeRandomized controlled/clinical trial·DateNov 1, 2024

Marginalized entrepreneurs forge their own paths

A new paper by Rowena Crabbe explores how entrepreneurship can help marginalized groups surmount obstacles, including limited access to capital, social closure, and consumer discrimination. The research identifies conditions for success, such as self-employment, products for unmet needs, and processes that lower barriers.

SourceUniversity of Texas at Austin·JournalJournal of Business Venturing·DateOct 16, 2024

Firms that withdrew from Russia following Ukraine invasion earn higher consumer sentiment

Research from the University of Notre Dame found that companies that withdrew from Russian operations saw a notable increase in net brand buzz and enhanced brand consideration and purchase intent, especially those with robust ESG profiles. This suggests that socially responsible actions during geopolitical crises can magnify benefits f...

SourceUniversity of Notre Dame·JournalJournal of Public Policy & Marketing·DateSep 23, 2024

A new tack for slack: motivate workers

A new study by the University of Texas at Austin found that acknowledging employees' efforts, rather than their abilities, boosts overall productivity in companies with remote workers. Praising effort-focused messages, especially those that are personally identifiable, can have a significant impact on employee motivation and performance.

SourceUniversity of Texas at Austin·JournalMIS Quarterly·DateSep 12, 2024

On Facebook ads, users may dislike ‘likes’

A new study from Texas McCombs finds that accumulating 'likes' can lead to fewer clicks for assertive CTA ads, but more clicks for informational ads. The researchers discovered that users respond positively to 'likes' from friends with similar interests, while those with dissimilar interests have a negative effect.

SourceUniversity of Texas at Austin·JournalInformation Systems Research·DateAug 28, 2024

Want to improve your company’s performance? Here’s why hiring directors with international experience can help

Research from Binghamton University found that companies perform better when board directors have international experience, as long as they function cohesively as a team. This leads to better decision-making and profitability. However, other factors like sharing knowledge or social capital do not significantly impact firm performance.

SourceBinghamton University·JournalJournal of Business and Management·DateAug 21, 2024

How the public perceives a company can determine whether misconduct becomes scandalized

A new study explores how public evaluation affects corporate misconduct scandalization, highlighting the role of reputation and celebrity. Companies with high reputations are more likely to have severe misconduct scrutinized, while those with high celebrity influence may downplay the issue.

SourceStrategic Management Society·JournalStrategic Management Journal·TypeData/statistical analysis·DateAug 20, 2024

Climate reporting standards insufficient, must be expanded, say Oxford net zero experts

A new study by the University of Oxford recommends expanding climate reporting standards to capture companies' wider impact on global net zero. This includes their product power, purchasing power, and political influence. The goal is to incentivize systemic change through products, purchases, and policy lobbying.

SourceTaylor & Francis Group·JournalCarbon Management·TypeCommentary/editorial·DateAug 14, 2024

The atmosphere in the room can affect strategic decision-making, study finds

A new study by Bayes Business School found that different atmospheres influence people's behavior and decision-making in strategic settings. The researchers discovered that various moods led to distinct interactions and strategies, with pensive atmospheres causing caution and curious ones fostering exploration.

SourceCity St George’s, University of London·JournalAcademy of Management Journal·TypeObservational study·DateAug 13, 2024

Framing sustainability strategies for the enactment of corporate actions with positive macro-level impact: Evidence from a developing country

Five pioneering firms in agriculture, manufacturing, and pharma retail have demonstrated businesses can catalyze social and environmental change. They address complex issues using scientific methods, partner with NGOs, and prioritize purpose alignment.

SourceEscuela Superior Politecnica del Litoral·JournalBusiness Strategy and the Environment·TypeCase study·DateAug 12, 2024

Eco-conscious fashionistas hampered by geographical barriers to return clothing

A new study reveals that eco-friendly activewear companies' post-consumer circular economy policies are hindered by geography, making them ineffective for global customers. The research found that many companies have take-back schemes but restrict them to domestic customers or specific locations, limiting their environmental impact.

SourceUniversity of Birmingham·JournalCambridge Journal of Regions Economy and Society·DateAug 11, 2024

New study helps global MNCs weigh the pros and cons of implementing blockchain technology

A new study by researchers from the University of Liverpool and Copenhagen Business School explores the trade-offs of blockchain technology for global multinational corporations. They found that cryptocurrencies offer lower transaction fees but carry a stigma, while smart contracts can streamline agreements but lack flexibility.

SourceStrategic Management Society·JournalGlobal Strategy Journal·TypeSystematic review·DateAug 6, 2024

Carbon assurance likely to become mandatory

Research from Edith Cowan University finds that carbon assurance will likely become mandatory due to growing stakeholder demand and IFRS climate change disclosures. Companies with existing systems in place for tracking carbon emissions are expected to reap benefits, including increased shareholder investment.

SourceEdith Cowan University·JournalThe British Accounting Review·TypeObservational study·DateJul 29, 2024

When to let Amazon sell for you

New research from Texas McCombs suggests that small sellers have more options than previously thought. The study modeled the interactions between companies and consumers, considering factors like other channels, number of players, and substitutability. Sellers can choose to retain control over their prices or sell to Amazon, weighing t...

SourceUniversity of Texas at Austin·JournalProduction and Operations Management·DateJul 15, 2024

IoT sensors tattle on stores that neglect promo displays

A new study from University of Texas at Austin researchers found that poor execution of promotional displays in retail stores can deprive brands of up to 2.3% more sales. The study used IoT technology to track display installations and found that busy managers often view displays as a nuisance, leading to missed sales opportunities.

SourceUniversity of Texas at Austin·JournalManufacturing and Service Operations Management·DateJul 11, 2024

New regulations needed to limit impact of favouritism on country credit ratings

Research by economists at University of East Anglia and others found links between finance ministers and executives at biggest credit ratings agencies associated with higher ratings for countries without these connections, highlighting a conflict-of-interest problem in the credit ratings agency business model.

SourceUniversity of East Anglia·JournalJournal of International Financial Markets Institutions and Money·DateJul 2, 2024

Study shows corporate social misbehavior hurts brands

A study by University of Akron researchers found that corporate social irresponsibility like pollution, corruption, discrimination, or poor labor conditions in supply chains significantly damage brand reputation. Clear communication and ethical standards across global operations are crucial to make a positive impression in the market.

SourceUniversity of Akron·JournalGlobal Strategy Journal·TypeCase study·DateJun 28, 2024

Involving workers essential to ensure industrial policies serve the public interest

A new study finds that Brazilian industrial policies are more effective when involving workers and civil society. Researchers analyzed policy plans and found that those with stronger labor union involvement outperformed weaker ones, highlighting the importance of societal participation in shaping national development goals.

SourceUniversity of Exeter·JournalDevelopment and Change·TypeLiterature review·DateJun 26, 2024