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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


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.


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

18

32

3

23

36

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.


Faculty News & Research


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


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


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


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



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)


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



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


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



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


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



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.


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



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


Features

Schulich Research Day Celebration 2015

50 years of innovation, research excellence and collaboration


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.

“


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.


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



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


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


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.


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



Social Impact Research Lab Workshop at Schulich – November 2014


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).

“



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.


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.



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.


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


Schulich Marketing Chair Russell W. Belk Received Title of Distinguished Research Professor

Recognition of outstanding contributions through research


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



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.


4 DecadesOF ACADEMIC & RESEARCH PRODUCTIVITY

Professor Belk, the ‘Father of Qualitative marketing research’, has made a significant impact in the field of research

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)

Award Name: Foundation Visiting Research Professor(Years Awarded: 1995 –2001)

1995

$195,0003 YEAR GRANT FROM SSHRC IN 2013

28,000CITATIONS (Google Scholar)

550+PUBLICATIONS

Professor Belk is a phenomenal educator. He received the Best Professor in 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.

“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.” ◆



From Top-Tier Pub to TEDx Talk and BackReaping the Benefits of Integrated Scholarship

With Dr. Markus Giesler, Associate Professor of Marketing


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.



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

New & Forthcoming Publications

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.


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



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.


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)




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



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)




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.))




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)




* 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)




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 #1)

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

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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


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



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

.


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



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


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



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

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180.

055

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tiple

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ctor

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eetin

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21Le

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13Lo

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OE

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Year

Dum

mie

s In

clud

edYe

sYe

s

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stry

Dum

mie

s In

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edYe

sYe

s

N11

6531

9

-0.8

0%

-0.6

0%

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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


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

ult

•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



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.


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

.



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

xing

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

).


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



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

.


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



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

K

ey T

akea

way

s M

anag

ers

of s

harin

g fir

ms

face

res

ista

nce

that

aris

es f

rom

the

ten

sion

s be

twee

n co

nflic

ting

econ

omic

and

soc

ial (

e.g.

, jus

tice,

saf

ety)

con

cern

s.

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


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

attra

ct in

vest

men

t du

e to

eith

er a

poo

r op

portu

nity

or b

ecau

se th

ey d

o no

t und

erst

and

how

BA

s m

ake

deci

sion

s.

•A

bette

r un

ders

tand

ing

of B

A de

cisi

ons

can

help

pro

mis

ing

entre

pren

eurs

be

tter p

repa

re fo

r inv

estm

ent i

nter

actio

ns a

nd B

As

mak

e be

tter d

ecis

ions

.

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

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

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

tal f

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



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 c

ondu

cted

to

answ

er t

he r

esea

rch

ques

tions

(S

ee

Figu

re 2

). M

anag

ers

acro

ss d

iffer

ent

func

tions

of

the

Can

adia

n fin

anci

al s

ervi

ces

firm

will

be

inte

rvie

wed

usi

ng a

sem

i-stru

ctur

ed in

terv

iew

pr

otoc

ol.

Inte

rvie

w d

ata

will

be

com

plem

ente

d by

the

ope

ratio

nal

loss

re

ports

and

risk

eve

nt a

naly

sis.

•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

less

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.


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



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


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 m

ake

toug

h di

scip

linar

y de

cisi

ons

is c

lear

ly a

ssoc

iate

d w

ith p

ositi

ve e

valu

atio

ns o

f the

man

ager

.

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

)



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

-


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

nd 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



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/


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



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


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



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

gg1 S

chul

ich

Sch

ool o

f Bus

ines

s, Y

ork

Uni

vers

ity, T

oron

to, C

anad

a

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.


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