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Subject(s)
Entrepreneurship; Technology, R&D management
Keyword(s)
Autonomy, teams, ideas, entrepreneurial performance, natural field experiment
Scholars have suggested that autonomy can lead to better entrepreneurial team performance. Yet, there are different types of autonomy and they come at a cost. We shed light on whether two fundamental organizational design choices—granting teams autonomy to (1) choose project ideas to work on and (2) choose team members to work with—affect performance. We run a natural field experiment involving 939 students in a lean startup entrepreneurship course over 11 weeks. The aim is to disentangle the separate and joint effects of granting autonomy over choosing teams and choosing ideas compared to a baseline treatment with pre-assigned ideas and team members. We find that teams with autonomy over choosing either ideas or team members outperform teams in the baseline treatment as measured by pitch deck performance. The effect of choosing ideas is significantly stronger than the effect of choosing teams. However, the performance gains vanish for teams that are granted full autonomy over choosing both ideas and teams. This suggests the two forms of autonomy are substitutes. Causal mediation analysis reveals that the main effects of choosing ideas or teams can be partly explained by a better match of ideas with team members’ interests and prior network contacts among team members, respectively. While homophily and lack of team diversity cannot explain the performance drop among teams with full autonomy, our results suggest that self-selected teams fall prey to overconfidence and complacency too early to fully exploit the potential of their chosen idea. We discuss the implications of these findings for research on organizational design, autonomy, and innovation.
© 2021, INFORMS
Journal Article
Journal of Applied Psychology
Julija N. Mell, Eric Quintane, Giles Hirst, Andrew Carnegie
Subject(s)
Human resources management/organizational behavior
Keyword(s)
Boundary spanning, supervisor undermining, territoriality, advice seeking

JEL Code(s)
M12
Journal Article
Manufacturing and Service Operations Management
Subject(s)
Management sciences, decision sciences and quantitative methods
Keyword(s)
Service operations, rational inattention, strategic customers, rational queueing, information costs, system throughput, social welfare
Problem description: Classical models of queueing systems with rational and strategic customers assume queues to be either fully visible or invisible while service parameters are known with certainty. In practice, however, people only have “partial information” on the service environment in the sense that they are not able to fully discern prevalent uncertainties. This is because assessing possible delays and rewards is costly as it requires time, attention, and cognitive capacity which are all limited. On the other hand, people are also adaptive and endogenously respond to information frictions. Methodology: We develop an equilibrium model for a single-server queueing system with customers having limited attention. Following the theory of rational inattention, we assume that customers optimize their learning strategies by deciding the type and amount of information to acquire and act accordingly while internalizing the associated costs. Results: We establish the existence and uniqueness of a customer equilibrium and delineate the impact of service characteristics and information costs. We numerically show that when customers allocate their attention to learn uncertain queue length, limited attention of customers improves throughput in a congested system that customers value reasonably highly, while it can be detrimental for less popular services that customers deem rather unrewarding. This is also reflected in social welfare if the firm's profit margin is high enough, although customer welfare always suffers from information costs. Managerial implications: Our results shed light on optimal information provision and physical design strategies of service firms and social planners by identifying service settings where they should be most cautious for customers' limited attention. Academic/practical relevance: We propose a microfounded framework for strategic customer behavior in queues that links beliefs, rewards, and information costs. It offers a holistic perspective on the impact of information prevalence (and information frictions) on operational performance and can be extended to analyze richer customer behavior and complex queue structures, rendering it a valuable tool for service design.
© 2021 INFORMS
Subject(s)
Finance, accounting and corporate governance
Keyword(s)
Mandatory disclosure, voluntary disclosure, information spillovers, crowding-out
JEL Code(s)
M41, M48, G38
We predict and find that regulated firms’ mandatory disclosures crowd out unregulated firms’ voluntary disclosures. Consistent with information spillovers from regulated to unregulated firms, we document that unregulated firms reduce their own disclosures in the presence of regulated firms’ disclosures. We further find that unregulated firms reduce their disclosures more the greater the strength of the regulatory information spillovers. Our findings suggest that a substitutive relationship between regulated and unregulated firms’ disclosures attenuates the effect of disclosure regulation on the market-wide information environment.
Subject(s)
Technology, R&D management
Keyword(s)
R&D incentives, tax incentives, innovation, technology
This article provides a structured overview on the most important features of the new German legislation awarding tax breaks for R&D active companies.
ISSN (Print)
1868-2979
Subject(s)
Information technology and systems
Keyword(s)
Sovereignty, cyberspace, cyber operations, Tallinn Manual, cyber sovereignty, digital sovereignty, defend forward, persistent engagement
The article critically examines the current discourse on the legal status and substance of “sovereignty” in the context of the application of international law to cyberspace against the backdrop of conflicting political-ideological attitudes. After tracing the origins of the interpretation of “respect for sovereignty” as a primary rule of international law, two approaches to cyberspace are surveyed that challenge the emerging consensus: “cyber imperialism,” embodied by the US and the other Five Eyes members on the one hand, and “cyber Westphalia,” represented by China, Russia, and Iran on the other. Both conceive cyberspace in ways fundamentally irreconcilable with prevailing legal views. A third group of states endorses the “sovereignty-as-rule” understanding but leaves this legal position vulnerable to both authoritarian co-optation and imperialist dismissal. In light of this, the paper offers an alternative interpretation of state practice and international jurisprudence that constructs sovereignty as a principle with derivative primary rules. It is shown that despite not by itself having the status of a rule, the principle of sovereignty allows for the identification of rules that protect the territorial integrity and political independence of states beyond the traditional notions of the prohibition of intervention and the use of force. Following a careful analysis of evidence in existing practice in support of this novel, doctrinally more precise understanding of sovereignty, the policies of “persistent engagement” and “cyber sovereignty” are assessed in light of the argument’s legal implications.
ISSN (Online)
2328-9708
ISSN (Print)
1053-6736
Journal Article
Organizational Research Methods
Eric Quintane, Martin Wood, John Dunn, Lucia Falzon
Subject(s)
Management sciences, decision sciences and quantitative methods
Keyword(s)
Brokering process, behavioral measure, relational events sequences, network algebra
Extant research in organizational networks has provided critical insights into understanding the benefits of occupying a brokerage position. More recently, researchers have moved beyond the brokerage position to consider the brokering processes (arbitration and collaboration) brokers engage in and their implications for performance. However, brokering processes are typically measured using scales that reflect individuals’ orientation toward engaging in a behavior, rather than the behavior itself. In this article, we propose a measure that captures the behavioral process of brokering. The measure indicates the extent to which actors engage in arbitration versus collaboration based on sequences of time stamped relational events, such as emails, message boards, and recordings of meetings. We demonstrate the validity of our measure as well as its predictive ability. By leveraging the temporal information inherent in sequences of relational events, our behavioral measure of brokering creates opportunities for researchers to explore the dynamics of brokerage and their impact on individuals, and also paves the way for a systematic examination of the temporal dynamics of networks.
With permission of SAGE Publishing
ESMT Case Study
ESMT Case Study No. ESMT-421-0191-1
Bianca Schmitz, Ulf Schäfer
Subject(s)
Human resources management/organizational behavior
Keyword(s)
Culture, organizational culture, organizational structure and design, leadership styles
At the end of 2008, the founder and employees of MEG - an insurance brokerage firm active in the market since 2003 - were looking forward to a promising future. Having achieved sales of €33 million in 2007 and just short of €54 million in 2008, the company was aiming to hit the €100 million mark in the next financial year. Within a very short time, the firm founded by Mehmet E. Göker as “insurance specialists” had established itself as the second-most successful insurance broker in Germany. Its rapid rise to the top was thanks to a business model that consistently identified and supported customers interested in insurance products - and also thanks to a particular corporate culture at MEG.
Key teaching/learning objectives:
- Introduction to corporate culture
- What is a corporate culture?
- How to establish and change corporate culture?

Subject(s)
Economics, politics and business environment
Keyword(s)
Cybersecurity, governance, Brexit, EU-UK relations, European Union, United Kingdom


The book chapter analyzes the EU-UK Trade and Cooperation Agreement's (TCA) Chapter on future thematic cooperation on cybersecurity. It explains the broader political, technological and regulatory context of cybersecurity cooperation at the international and the EU levels. It then analyzes the TCA's passages individually and within this broader context. Finally, it provides an evaluation and outlook on future EU-UK cooperation on cybersecurity.
Secondary Title
Handels- und Kooperationsvertrag EU/GB
ISBN
978-3-8487-7188-2
Keyword(s)
hedge funds, cash flows, hot hand fallacy, performance streaks, relative weights, smart money
Cash flows to hedge funds are highly sensitive to performance streaks, a streak being defined as subsequent quarters during which a fund performs above or below a benchmark, even after controlling for a wide range of common performance measures. At the same time, streaks have limited predictive power regarding future fund performance. This suggests investors weigh information suboptimally, and their decisions are driven too strongly by a belief in continuation of good performance, consistent with the “hot hand fallacy.” The hedge funds that investors choose to invest in do not perform significantly better than those they divest from. These findings are consistent with overreaction to certain types of information and do not support the notion that sophisticated investors have superior information or superior information processing abilities.
© 2021, INFORMS