Department of Strategy and Entrepreneurship

Strategy Science Doi: https://doi.org/10.1287/stsc.2023.0116

We examine “reputational herding,” where decision makers follow the herd to maintain or improve their reputation, rather than to make optimal decisions for the firm. We propose this as an additional mechanism for firms’ mimetic behaviors. We model the mechanism and demonstrate that decision makers are less likely to herd when they have a high reputation, as it strengthens their confidence in private signals and buffers them against reputational penalties in the event of a bad outcome. Conversely, herding is more likely when experts have highly correlated information (high “signal correlation”). The model’s prediction on the effect of reputation differs from previous research; the model’s secondary predictions on the effect of signal correlation distinguish reputational herding from informational herding. We test the theory in the context of sell-side stock analysts and employ a difference-in-differences design to compare award-winning analysts and runners-up with similar ability to assess the impact of a reputation shock on herding behavior. The overall results are consistent with the reputational herding mechanism. We discuss several managerial implications of the model and provide recommendations regarding how to mitigate the moral hazard problem of reputational herding. Supplemental Material: The online appendix is available at https://doi.org/10.1287/stsc.2023.0116 .

California Management Review 68(1) p. 124-148 Doi: https://doi.org/10.1177/00081256251383844

Startup-corporate partnerships provide mutual benefits by combining startups’ innovation with established firms’ resources and processes. However, despite these clear advantages, initiating and nurturing such partnerships is often fraught with obstacles. Our research provides evidence-based insights for startup founders and corporate managers on how these partnerships unfold. Specifically, we identify two distinct pathways that can serve as a practical starting point for corporate managers. Also, we pinpoint three key “pathbreakers” in the formation process and offer strategies to effectively manage them. In addition, the article highlights the cumulative signals that both parties can use not only to create the potential for partnership but to bring the collaboration to fruition. This guidance to managers seeking to establish or engage in such partnerships includes outlining key factors to consider, potential challenges that may arise, and actionable strategies to address them.

Sustainable regional restructuring: Insights from economic geography and regional innovation studies p. 144-161

Global Strategy Journal Doi: https://doi.org/10.1002/gsj.70004

Research Summary: Parallel with the growing volume and value of data in business operations, governments increasingly impose restrictions on the use, storage, and transfer of data across borders. In this paper, we examine how these data barriers can influence firms' global strategies. First, we propose a conceptual framework specifying five key dimensions of data barriers: the type of data, the data action they restrict, their source , motivation , and direction . Using an institutional perspective, we discuss how these features can influence the relative attractiveness of host countries, entry decisions, and important contingencies. We propose strategies that firms can pursue to respond to these constraints and develop a research agenda for further work in this area, thereby contributing to the literature on institutional strategy and global digital strategy. Managerial Summary: Digitalization has become essential to firms' operations, yet governments increasingly impose restrictions on the unobstructed use, transfer, and storage of data. For firms that operate in different countries, adhering to these regulations requires them to understand the trade‐offs involved in this process. In this paper, we explain what data barriers are and how and when these influence firms' foreign investment choices. In particular, we discuss how and when data barriers may require firms to physically locate in host countries, what the consequences are for firms' global footprint and innovation, and how they can strategically respond to mitigate the effects of data barriers.

ACM Ubiquity Doi: https://ubiquity.acm.org/article.cfm?id=3760268&doi=10.1145%2F3760268

Sometimes, the most social person in the room might be the teen with the screen