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How an Indian government policy backfired: the unintended consequences of price regulation of prescription drugs

A new study found that India's Drug Price Control Order in 2013 led to a shift in pharmaceutical firms' marketing efforts, disproportionately affecting prescriptions issued by less formally educated physicians. Sales volumes of regulated drugs declined, while those for unregulated but related drugs increased.

SourceAmerican Marketing Association·JournalJournal of Marketing·DateJun 4, 2024

Is the end of the package holiday provider near? Blockchain technology could revolutionize our travel experiences

A new study from the University of Surrey suggests that blockchain technology could eliminate traditional package holiday providers, slashing costs and giving property owners direct income. Customers would also benefit from greater control over their personal data thanks to enhanced security and privacy.

SourceUniversity of Surrey·JournalTourism Management·TypeObservational study·DateMay 13, 2024

Craft-based firms can project authenticity through credibly and visibly communicating their identity — but not through overt means

A new study by Dobrev and Verhaal found that three strategic assets - organizational resources, capabilities, and position - help credibly communicate a firm's identity. These factors enable craft producers to convey their authenticity effectively without relying on overt claims.

SourceStrategic Management Society·JournalStrategic Entrepreneurship Journal·TypeData/statistical analysis·DateMay 10, 2024

New study shows corporate misconduct at home hurts sales overseas

A new study in the Global Strategy Journal shows that corporate misconduct, such as corruption and discrimination, can negatively impact foreign subsidiary performance. The research monitored 335 subsidiaries in 109 countries over nine years, finding that social irresponsibility hurts sales regardless of where the incident occurred.

SourceStrategic Management Society·JournalGlobal Strategy Journal·TypeData/statistical analysis·DateApr 15, 2024

Despite the desire to reduce the risk of imitation, new research suggests startups should scale slowly and steadily

Startups are advised to prioritize experimentation and product-market fit over early scaling, with platform companies being particularly vulnerable to failure. The study's findings contradict popular notions that rapid growth is necessary to prevent competitor imitation.

SourceStrategic Management Society·JournalStrategic Management Journal·TypeData/statistical analysis·DateApr 15, 2024

Corporations use government grants to lighten debt load

A new study by University of Texas at Austin researchers finds that government cash grants help companies lighten their debt load, with corporations enjoying a 2-3% lower debt-to-equity ratio. However, the grants are often not publicly disclosed, making it difficult for investors and stakeholders to effectively value the benefit.

SourceUniversity of Texas at Austin·JournalAccounting Horizons·TypeObservational study·DateMar 26, 2024

Gun manufacturers’ ads appeal to women as ‘serious students’ of firearms to boost sales

A new study reveals that gun manufacturers have shifted their marketing strategy to appeal to women, portraying them as responsible and capable gun owners. The study found that the 'serious student' framing became popular between 2016 and 2020, depicting armed American women as pursuing expertise with firearms through focused training.

SourceOregon State University·JournalJournal of Macromarketing·TypeContent analysis·DateMar 12, 2024

Prepare workers to weather time shocks

The study identifies three patterns of resilience: adjusting, absorbing, and adopting, each with strengths and weaknesses. Strategies include flexible deadlines, margins, bite-sized shifts, patience, and recognizing time as a fundamental element for dealing with environmental changes.

SourceUniversity of Texas at Austin·JournalAcademy of Management Review·TypeLiterature review·DateMar 7, 2024

The dangers of misaligned product co-development contracts—and how they can derail innovation in high-tech firms

Researchers found that firms with mismatched positioning strategies, functional capabilities, and governance modes experience reduced innovation outcomes. Strong marketing capabilities are associated with increased innovation performance in joint development agreements for high differentiation-oriented firms.

SourceAmerican Marketing Association·JournalJournal of Marketing·DateMar 5, 2024

How air pollution can harm team performance

High levels of air pollution have a significant negative impact on teams' ability to solve complex problems, such as developing clean energy technologies and vaccines. The study used escape-room games data to estimate that high-pollution days can lead to up to 5% longer completion times for teams.

SourceUniversity of Cambridge·JournalJournal of Economic Psychology·DateFeb 28, 2024

Regulatory tech costs can have benefits, too

A new study by Zachary Kowaleski found that RegTech investments can have operational benefits for large broker-dealers, including improvements in customer relations and employee monitoring. However, small companies were more negatively affected, with profits dropping by an average of over 10 times the apparent savings.

SourceUniversity of Texas at Austin·JournalJournal of Financial Economics·TypeObservational study·DateFeb 20, 2024

New study pinpoints startups’ vulnerabilities to innovation imitation

A new study published in the Strategic Management Journal suggests that startups are more vulnerable to innovation imitation due to knowledge spillovers and university endorsements. The study found that startups' patents receive fewer citations than established companies', despite accounting for a higher percentage of total patents.

SourceStrategic Management Society·JournalStrategic Management Journal·TypeData/statistical analysis·DateFeb 14, 2024

State-owned firms can mitigate additional regulatory scrutiny when making foreign acquisitions by considering the social and political implications of the deal

State-owned enterprises experience greater regulatory scrutiny in foreign acquisitions, but acknowledging social and political dynamics can help temper this liability. SOEs can also work with local communities to overcome negative perception by acquiring firms through subsidiaries or committing to local employment, reducing additional ...

SourceStrategic Management Society·JournalGlobal Strategy Journal·TypeData/statistical analysis·DateFeb 14, 2024

Hankering for status drives non-executive directors to outstay effectiveness

A study by the University of Bath and Queensland University of Technology found that non-executive directors who serve beyond recommended tenure limits prioritize their social status over their duty to shareholders. Prolonged tenures can compromise board renewal, financial performance, and governance concerns for boards and shareholders.

SourceUniversity of Bath·JournalAccounting Forum·TypeCase study·DateFeb 13, 2024

Startups spark more innovations in emerging industries than established companies do

New research from Texas McCombs found that startups have an outsized number of future citations, sparking more innovation in emerging industries like photovoltaic cells. Startups' inventions are more likely to be cited by universities and companies due to resource disparities, academic citations, and prior lawsuits.

SourceUniversity of Texas at Austin·JournalStrategic Management Journal·TypeObservational study·DateJan 30, 2024

AI can boost service for vulnerable customers

Researchers developed an AI framework to identify vulnerable consumers, address their needs, and mitigate potential discrimination. The framework provides real-time analysis of consumer chat responses to build risk scores and offer customized tips to customer service agents.

SourceUniversity of Texas at Austin·JournalJournal of the Academy of Marketing Science·TypeLiterature review·DateJan 18, 2024

SDG-washing found among Canada's top companies

A study by University of Waterloo researchers found that corporate investing in communities decreased despite an increase in companies committing to the United Nations' Sustainable Development Goals. The results indicate 'SDG-washing', where public pledges aren't translating into socially responsible investments.

SourceUniversity of Waterloo·JournalBusiness Strategy & Development·DateJan 17, 2024

How should boards handle visionary CEOs?

A new model shows that boards should invest more resources to confirm the CEO's plan when they are mildly overconfident. However, if the CEO is highly confident, the board should act as a monitor and only intervene if necessary. In extreme cases, visionary CEOs may be allowed to run with their ideas without intervention.

SourceUniversity of Texas at Austin·JournalJournal of Accounting Research·TypeComputational simulation/modeling·DateJan 12, 2024

After COP28 “insider” climate activists will become increasingly important, study suggests.

A new study suggests climate activists are increasingly adopting 'insider' activist roles, working within their own organizations to drive meaningful change. Researchers identify different types of activists, including those who seek to undermine or challenge organizations, highlighting the growing importance of collaborative and conte...

SourceUniversity of Exeter·JournalHumanities and Social Sciences Communications·TypeObservational study·DateJan 5, 2024

Does self-checkout impact grocery store loyalty?

Research from Drexel University finds that customers are more likely to remain loyal to a grocery store when using regular checkout service. The perceived ease of checkout, sense of entitlement, and number of items purchased play a role in explaining the effect of loyalty.

SourceDrexel University·JournalJournal of Business Research·DateJan 4, 2024

Chung-Ang University study reveals a higher market valuation of cash holdings of firms adopting electronic voting

A study by Chung-Ang University found that electronic voting enhances shareholders' perception of corporate governance, increasing the market value of a firm's cash holdings. Firms with larger free cash flows and minority ownership saw stronger governance effects from adopting electronic voting.

SourceChung Ang University·JournalInternational Review of Financial Analysis·TypeSystematic review·DateJan 4, 2024

Powerful financial giants could play vital role in preventing the next pandemic

A new study identifies public and private companies operating in economic sectors associated with increased risks of emerging infectious diseases. Financial actors can mitigate these risks through investments that promote ecological restoration, pathogen surveillance systems, and community health care.

SourceStockholm Resilience Centre·JournalThe Lancet Planetary Health·TypeData/statistical analysis·DateDec 4, 2023

New study suggests corporate culture thwarts efforts to hire innovative candidates

A recent study found that recruiters are less likely to rank former startup founders as top candidates due to biases in evaluating their skills and cultural fit. Smaller companies and recruiters with entrepreneurial aspirations tend to view entrepreneurs more favorably, but overall, startups remain less hireable than corporate executives.

SourceStrategic Management Society·JournalStrategic Entrepreneurship Journal·TypeExperimental study·DateNov 16, 2023

Are retrospective adjustments to sustainability reports helping CEOs score a bonus?

New research found that companies are altering their sustainability reports to improve their environmental and social performance metrics, which are tied to CEO bonuses. Only 15% of revisions were reported as due to error, while 69% were attributed to changes in measurement, suggesting manipulation may be occurring.

SourceUniversity of Technology Sydney·JournalJournal of Management Accounting Research·TypeData/statistical analysis·DateOct 23, 2023

SEC insider trading rule has loopholes

A recent study by University of Texas at Austin professor Robert Parrino found that the SEC's Rule 10b5-1 has limited effectiveness in limiting insider trading. Despite being widely used, the rule allows CEOs to game the system by canceling trades or using limit orders within the plan.

SourceUniversity of Texas at Austin·JournalJournal of Financial Economics·TypeObservational study·DateOct 17, 2023

Chinese government’s corporate subsidies have had little effect on firms’ productivity

A recent study by Carnegie Mellon University and ShanghaiTech University found that China's government subsidies have had limited effect on promoting firms' productivity. The study analyzed firm-level data from 2007 to 2018 and found that subsidies often flowed to less productive firms, leading to a decline in their relative productivity.

SourceCarnegie Mellon University·JournalJournal of Comparative Economics·DateOct 10, 2023

Accounting transparency effort tied to decreased funding for innovation

Researchers found that regulations aimed at improving financial reporting requirements may have led to decreases in corporate spending on innovation, capital improvements, and mergers and acquisitions. Companies were reluctant to report uncertainty regarding their tax burden in public-facing financial statements, leading to a decline i...

SourceNorth Carolina State University·JournalContemporary Accounting Research·TypeData/statistical analysis·DateSep 18, 2023

Communicating stability, strong connections to stakeholders versus shareholders are priorities in Chinese financial reporting, Rotman research finds

Researchers found that Chinese executives prioritize communicating long-term stability and inspiring confidence among diverse stakeholders. In contrast to US firms, Chinese companies tend to work closely with stakeholders like debt holders and controlling shareholders to reduce fluctuations.

SourceUniversity of Toronto, Rotman School of Management·JournalJournal of Accounting and Economics·TypeExperimental study·DateSep 12, 2023