À la découverte du lien organisationnel : avez-vous lu A. O. Hirschman ?


Management International

hiver 2018, vol. 22, n°2, pp.9-12

Départements : Stratégie et Politique d’Entreprise, GREGHEC (CNRS)

Mots clés : Théorie des organisations, Hirschman, sortie, voix, loyauté

Le dossier spécial consacré par la revue Management International à la pensée de Albert O. Hirschman est issu d’une journée organisée par i3-CRG, le LIRSA (CNAM) et SnO d’HEC. Il s’agit de revenir sur l’importance des concepts de Hirschman pour la théorie des organisations, notamment exit, voice et loyalty. Économiste de formation, spécialiste notamment de l’économie du développement, Hirschman a pratiqué toute sa vie durant le dépassement des frontières disciplinaires (trespassing) ce qui l’a amené à la théorie des organisations et il reste un exemple pour les chercheurs actuels

A Model of Trading in the Art Market


American Economic Review

mars 2018, vol. 108, n°3, pp.744-774

Départements : Finance, GREGHEC (CNRS)

Mots clés : art; auctions; endogenous trading; price indexes; private values; returns

We present an infinite-horizon model of endogenous trading in the art auction market. Agents make purchase and sale decisions based on the relative magnitude of their private use value in each period. Our model generates endogenous cross-sectional and time-series patterns in investment outcomes. Average returns and buy-in probabilities are negatively correlated with the time between purchase and resale (attempt). Idiosyncratic risk does not converge to zero as the holding period shrinks. Prices and auction volume increase during expansions. Our model finds empirical support in auction data and has implications for selection biases in observed prices and transaction-based price indexes

A Universe of Stories: Mobilizing Narrative Practices During Transformative Change


Strategic Management Journal

mars 2018, vol. 39, n°3, pp.664-696

Départements : Stratégie et Politique d’Entreprise, GREGHEC (CNRS)

Mots clés : strategic change, narrative, strategyaspractice, storytelling, reflection

Constructing narratives of transformative change is an important but challenging practice through which strategy makers attempt to influence acceptance of an ongoing transformation. To understand whether and how strategy makers can construct a steady influx of captivating narratives of transformative change, we analyzed how one noted strategy maker assisted the successful transformation of his organization over three decades by orchestrating the production of change narratives. Our analysis reveals that the strategy maker constructed and reconstructed meanings of change over time using three sets of distinct but interconnected narrative practices. We develop a dynamic model linking the simultaneous mobilization of these practices to strategy makers’ ability to harness the persistent tension between novelty and familiarity in a transformative change, and thereby win endorsement from key audiences. This paper was accepted for publication on Strategic Management Journal Special Issue on "Strategy Processes and Practices: Dialogues and Intersections"

An Experimental Investigation of the Interaction Effect of Management Training Ground and Reporting Lines on Internal Auditors’ Objectivity, International Journal of Auditing

F. HOOS, William F. MESSIER JR, Jason L. SMITH, Paulette R. TANDY

International Journal of Auditing

juillet 2018, vol. 22, n°2, pp.150-163

Départements : Comptabilité et Contrôle de Gestion

Mots clés : Internal Audit Function, Internal Auditors, Management Training Ground, objectivity

Seventy‐nine experienced internal auditors participated in an experiment investigating two factors that may affect internal auditors’ objectivity: (1) whether the internal audit function is used as a management training ground, and (2) whether the internal auditors’ reporting line is to management or the audit committee. Participants completed a case wherein management and the audit committee hold conflicting preferences regarding a major corporate investment opportunity. Participants evaluated relevant business risks and made an overall recommendation concerning the investment. The results include three important findings. First, we observe an interaction effect between management training ground and reporting line. When the internalaudit function is not used as a management training ground, internal auditors’ risks assessments do not significantly differ by reporting line. However, when the internal audit function is used as a management training ground, internal auditors’ risk assessments align with management's preferences when auditors report to senior management versus the audit committee. Second, when the internal audit function is a management training ground, internal auditors provide more favorable investment recommendations (i.e., consistent with management's preferences). Third, internal auditors unexpectedly provided more favorable recommendations to the audit committee than to management

An Integrated Revenue Management Framework for a Firm's Greening, Pricing and Inventory Decisions


International Journal of Production Economics

janvier 2018, vol. 195, pp.373-390

Départements : Information Systems and Operations Management, GREGHEC (CNRS)

Mots clés : Environment, Newsvendor problem, Pricing, Market segmentation, Distribution-free approach

There is a growing interest on developing efficient ways of incorporating environmental considerations into business practices in order to meet both consumers' demand for green products/services, and the firms' sustainable profitability. The main contribution of this article is in developing an integrated revenue management framework to address a firm's greening (investment) effort, pricing and inventory decisions. It is assumed that the firm inaugurates a green product along with its existing product. Even though the firm offers both the green and regular product at differentiated prices, the market segmentation as a result of this price differentiation is regarded as imperfect. This imperfect market segmentation causes a demand leakage mainly due to the heterogeneity among the customers' willingness-to-pay. These effects are included in our proposed model and simplified analytical solutions are developed to solve the same. Additional scenarios where a firm experiences a price-dependent stochastic demand with an unknown distribution is also modeled. This scenario is addressed using a distribution-free approach based on Scarf' s rule. The performance of the proposed methods and the significance of the modeling framework are finally corroborated through several simulations. This analysis provides a sustainable environment, production and retailing framework while still augmenting profitability using fundamental tools from revenue management

Belief-free price formation


Journal of Financial Economics

février 2018, vol. 127, n°2, pp.342-365

Départements : Finance, GREGHEC (CNRS), Economie et Sciences de la décision

Mots clés : Financial market microstructure, Informed dealers, Price volatility, Belief-free equilibria

We analyze security price formation in a dynamic setting in which long-lived dealers re- peatedly compete for the opportunity to trade with short-lived retail traders. We charac- terize equilibria in which dealers’ pricing strategies are optimal irrespective of the private information that each dealer may possess. Thus, our model’s predictions are robust to dif- ferent specifications of the dealers’ information structure. These equilibria reconcile, in a unified and parsimonious framework, price dynamics that are reminiscent of well-known stylized facts: excess price volatility, price to trading flow correlation, stochastic volatility and inventory-related trading

Brand Assets and Pay Fairness as Two Routes to Enhancing Social Capital in Sales Organization


Journal of Personal Selling & Sales Management

2018, vol. 38, n°2, pp.191-204

Départements : Marketing, GREGHEC (CNRS)

Mots clés : brand identification, job satisfaction, pay fairness, salespeople, social capital

A growing body of research in sales highlights the importance of intrafirm relationships. Indeed, sales executives are encouraged to manage internal relationships within their sales force to facilitate high levels of performance. In this research, we examine the concept of social capital – its antecedents and consequences – in the context of a B2B sales organization. In particular, we conceptualize and test two alternative means of enhancing a salesperson's social capital: the impact of branding and perceptions of pay fairness. We then demonstrate how social capital embedded in sales-force relationships can be leveraged through job satisfaction and used to increase sales performance

Can innovation be measured? A framework of how measurement of innovation engages attention in firms


Journal of Engineering and Technology Management

avril-juin 2018, vol. 48, pp.64-75

Départements : Comptabilité et Contrôle de Gestion

Mots clés : Innovation management, Key performance measurement, Measuring innovation, Attention, Attention based theory, Process model, Exploration and exploitation, Conversational measurement, Directional measurement

Many firms manage the innovation process by using metrics. Yet, whether measurement supports or hinders innovation continues to be a topic of debate. To shed new light on this debate, this paper presents a conceptual framework of how measurement engages attention in firms. We draw on attention based theory and conceptualize innovation measurement as an attention-focusing device. We identify two ideal types of measurement practices. i) Directional Measurement: which is based on few and unidirectional metrics and encourages exploitative innovation efforts. ii) Conversational Measurement: which is based on multiple and ambiguous metrics and encourages exploration. We extend theory building in the technology and accounting literatures by theorizing the role of metrics and measurement for attention and by discussing the implications of such attentional engagement for innovation performance. In so doing, we engage closely with the managerial task of managing innovation while simplifying its conditions, thereby providing actionable advice

Collaborative Prototyping of Alternative Designs Under a Target Costing Scheme


Production and Operations Management

mars 2018, vol. 27, n°3, pp.496–515

Départements : Information Systems and Operations Management

Mots clés : Collaborative prototyping, Parallel and sequential testing, Supplier involvement, Target costing

Prototyping allows firms to evaluate the technical feasibility of alternative product designs and to better estimate their costs. We study a collaborative prototyping scenario in which a manufacturer involves a supplier in the prototyping process by letting the supplier make detailed design choices for critical components and provide prototypes for testing. While the supplier can obtain private information about the costs, the manufacturer uses target costing to gain control over the design choice. We show that involving the supplier in the prototyping process has an important influence on the manufacturer's optimal decisions. The collaboration results in information asymmetry, which makes parallel prototyping less attractive and potentially reverses the optimal testing sequence under sequential prototyping: It may be optimal to test designs in increasing order of attractiveness to avoid that the supplier does not release technically and economically feasible prototypes for strategic reasons. We also find that the classical target costing approaches (cost- and market-based) need to be adjusted in the presence of alternative designs: Due to the strategic behavior of suppliers, it is not always optimal to provide identical target costs for designs with similar cost and performance estimates, nor to provide different target costs for dissimilar designs. Furthermore, the timing is important: While committing upfront to carefully chosen target costs reduces the supplier's strategic behavior, in some circumstances, the manufacturer can take advantage of this behavior by remaining flexible and specifying the second prototype's target costs later

Construction of Relations with Distant Suppliers on the Cognitive and Relational Dimensions to Co-Explore Discontinuous Innovations / Construction des relations avec des fournisseurs distants sur les plans cognitifs et relationnels pour co-explorer des in


Innovations, Revue d’économie et de management de l'innovation

2018, vol. 1, n°55, pp.61-87

Départements : Information Systems and Operations Management, GREGHEC (CNRS)

Mots clés : innovation discontinue, implication des fournisseurs, fournisseurs distants, open innovation, exploration, organisation ambidextre / discontinuous innovation, suppliers contribution, distant suppliers, open innovation, exploration, organizational ambidextry

Co-explorer des concepts avec des fournisseurs distants, sur les plans cognitifs et relationnels, favorise l’identification d’innovations discontinues. Cependant, peu de travaux s’intéressent aux modalités de construction de ces relations. Sur la base d’une étude longitudinale d’une entreprise qui a co-exploré des innovations discontinues avec des fournisseurs distants, nous mettons en évidence de manière inductive deux caractéristiques du processus et de l’organisation adoptée pour construire ces relations. Nous soulignons la transparence du processus de co-exploration qui soutient un engagement progressif mutuel. Ce processus est porté par un acteur dédié, ayant accès à la fois aux experts techniques ainsi qu’aux dirigeants de l’entreprise qui prennent les décisions stratégiques en matière de domaines d’innovation et de développement. Cet acteur est ainsi un des vecteurs de l’ambidextrie organisationnelle de l’entreprise puisqu’il permet le développement de ces relations parallèlement aux relations de long terme avec des partenaires privilégiés