Articles

Budgeting in times of economic crisis

S. BECKER, M. MAHLENDORF, U. SCHÄFFER, M. THATEN

Contemporary Accounting Research

Winter 2016, vol. 33, n°4, pp.1489–1517

Départements : Comptabilité et Contrôle de Gestion, GREGHEC (CNRS)

Mots clés : Budgeting, budgeting functions, economic crisis, crisis management

http://ssrn.com/abstract=2605359


This paper examines how corporate reliance on budgets is affected by major changes in the economic environment. We combine survey and archival data from the economic crisis that began in 2008. The results indicate that, as a result of the economic crisis, budgeting became more important for planning and resource allocation but less important for performance evaluation. Additional evidence from interviews and data gathered in a focus group further illustrate these results and show the changes organizations have introduced to respond to the economic crisis. Taken together, and contrary to more general conclusions from the literature such as an overall increase or decrease in the importance of budgeting, we find that companies emphasize certain budgeting functions over others during economic crises

Category Spanning, Evaluation, and Performance: Revised Theory and Test on the Corporate Law Market

L. PAOLELLA, R. DURAND

Academy of Management Journal

février 2016, vol. 59, n°1, pp.330-351

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

Mots clés : Categoryn Evaluation, Law firms, Mediation, Performance

http://ssrn.com/abstract=2648295


Studies suggest that category-spanning organizations receive lower evaluation and perform worse than organizations focused on a single category. We propose that (1) these effects are contingent on clients' theory of value and that as clients expect more sophisticated services, they tend to value category spanners more positively and (2) the evaluation of producers mediates the relationship between category spanning and performance. We test our hypotheses using original data on corporate legal services in three markets (London, New York City, and Paris) over the decade 2000-2010. We find that (1) category spanners receive a better evaluation, and more so when their categorical combination is more inclusive and (2) evaluation mediates significantly the relationship between category spanning and performance. This study enriches our understanding of how audiences apprehend a whole market category system and why organizations span categories

Choice-based cardinal utility: a tribute to Patrick Suppes

J. BACCELLI, P. MONGIN

Journal of Economic Methodology

2016, vol. 23, n°3, pp.268-288

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

Mots clés : ordinal utility, cardinal utility, preference differences, representation theorems, Suppes, ordinalism, cardinalism

http://www.tandfonline.com/doi/full/10.1080/1350178X.2016.1189112


We reexamine some of the classic problems connected with the use of cardinal utility functions in decision theory, and discuss Patrick Suppes’ contributions to this field in light of a reinterpretation we propose for these problems. We analytically decompose the doctrine of ordinalism, which only accepts ordinal utility functions, and distinguish between several doctrines of cardinalism, depending on what components of ordinalism they specifically reject. We identify Suppes’ doctrine with the major deviation from ordinalism that conceives of utility functions as representing preference differences, while being nonetheless empirically related to choices. We highlight the originality, promises and limits of this choice-based cardinalism.

Classical Deviation: Organizational and Individual Status as Antecedents of Conformity

R. DURAND, P.-A. KREMP

Academy of Management Journal

février 2016, vol. 59, n°1, pp.65-89

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

Mots clés : Conformity, Deviance, Institutional theory, Status

http://ssrn.com/abstract=2637981


Beside making organizations look like their peers through the adoption of similar attributes (which we call alignment), this paper highlights the fact that conformity also enables organizations to stand out by exhibiting highly salient attributes key to their field or industry (which we call conventionality). Building on the conformity and status literatures, and using the case of major U.S. symphony orchestras and the changes in their concert programing between 1879 and 1969, we hypothesize and find that middle-status organizations are more aligned, and middle-status individual leaders make more conventional choices than their low- and high-status peers. In addition, the extent to which middle-status leaders adopt conventional programming is moderated by the status of the organization and by its level of alignment. This paper offers a novel theory and operationalization of organizational conformity, and contributes to the literature on status effects, and more broadly to the understanding of the key issues of distinctiveness and conformity

Commercio Elettronico, Clausole Abusive e Lois De Police: Il Caso Expedia (Tribunal De Commerce De Paris, 7 Mai 2015)

M. M. WINKLER

Diritto del Commercio Internazionale

2016, vol. Anno XXX, n°Fasc. 2, pp.559-586

Départements : Droit et fiscalité, GREGHEC (CNRS)


Comparing attitudes toward time and toward money in experience-based decisions

E. KEMEL, M. TRAVERS

Theory and Decision

janvier 2016, vol. 80, n°1, pp.71-100

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

Mots clés : Experience-based decisions, Time, Real incentives, Mixed modeling, Errors, Probability weighting


This paper reports an experimental comparison of attitudes toward time and toward money in experience-based decisions. Preferences were elicited under rank-dependent utility for prospects with two or three consequences expressed either in time or in monetary units. Probabilities were unknown but learned through sampling. More specifically, time and money were compared under two conditions. In a first experiment, both consequences and probabilities of prospects were unknown and learned through sequential sampling. In a second experiment, the possible consequences were revealed after the sampling. A real incentive system was implemented for both time and money. The heterogeneity of preferences was assessed for time and for money through individual and mixed modeling estimations. We observe that the nature of consequences (time or money) modifies probability weighting in terms of elevation and sensitivity. Subjects exhibit more optimism and less sensitivity to probability changes when deciding about time than about money. Revealing the consequences impacts the shape of the utility function and leaves probability weighting unchanged. We also observe that the real incentives have no effect except for the reduction in decision errors. This effect is stronger for money than for time

Contributions of Design Thinking to Project Management in an Innovation Context

S. JOUINI, C. MIDLER, SILBERZAHN

Project Management Journal

avril-mai 2016, vol. 47, n°2, pp.144-156

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

Mots clés : Project management, Design, Innovation, Uncertainty, Design thinking


Researchers have long recognized that standard approaches to project management are ill-suited to address changes in the environment or business needs, particularly in innovative contexts characterized by uncertainty and complexity. Instead of being concerned with the efficient implementation of a deliberate strategy, a project in such a context becomes a process for strategy formulation. Three imperatives for project management arise as a result: managing the explorative phase, managing the involvement of stakeholders in the project, and managing the project in relation to the strategizing process of the firm. We propose that design thinking, a recent evolution in the field of design, can make some important contributions to these imperatives. Design thinking has been highlighted by practitioners as well as academia as a novel methodology that is potentially valuable for improving innovative outcomes, whether they are products, services, or strategies. We examine and articulate these possible contributions through 10 propositions that could form an agenda for future experimentation and empirical research on innovation project management

Coping with Loneliness through Materialism: Strategies Matter for Adolescent Development of Unethical Behaviors

E. GENTINA, L. SHRUM, T. LOWREY

Journal of Business Ethics

2016, pp.1-20

Départements : Marketing, GREGHEC (CNRS)

Mots clés : Loneliness, Coping strategies, Unethical behaviors, Adolescent consumers, Materialism, Sharing, Age cohort


Engaging in unethical consumption behaviors is an acute societal problem that can have severe consequences for adolescents, and businesses in particular have been accused of making such consumption particularly appealing and accessible. However, the causes of unethical behaviors are not well understood and research on the causes has been mixed. In this research, we investigate the effects of coping strategies for loneliness on adolescents' adoption of unethical behaviors, a topic that business ethics research has not explored. In a large-scale study (n = 409) of adolescents (ages 13-17), we show that whether loneliness leads to the adoption of unethical behaviors depends on the strategies adolescents use to cope with their loneliness: active coping strategies are associated with fewer unethical behaviors, whereas passive coping strategies are associated with more unethical behaviors. In addition, we show that active and passive coping strategies can be executed through consumption practices. We show that the relation between active coping and fewer unethical behaviors is mediated by sharing of possessions, whereas the relation between passive coping strategies and more unethical behaviors is mediated by product acquisition. Finally, we also show that these mediated relations differ as a function of age cohort (grade level). The indirect effect of active coping on fewer unethical behaviors via sharing holds only for middle school adolescents, whereas the indirect effect of passive coping on more unethical behaviors via product acquisition holds only for high school adolescents. We shed new light on both the bright and dark sides of materialism and unethical behaviors, and provide practical implications for research on loneliness, business ethics, and unethical behaviors

Cost (In)Efficiency and Institutional Pressures in Nursing Home Chains

T. JEROME, C. MARTIN

European Accounting Review

2016, vol. 25, n°4, pp.687-718

Départements : Comptabilité et Contrôle de Gestion

https://www.tandfonline.com/doi/full/10.1080/09638180.2016.1169937


Over the past 10 years, merger activities in the private for-profit nursing home industry have been increasing in Europe. In this paper, we investigate chain affiliation’s influence on the performance of lucrative nursing homes. We measure performance using a cost frontier estimated by stochastic analysis on a sample of 370 French for-profit nursing homes. We find that cost efficiency decreases with the number of facilities in a chain. We also identify different external actor types in nursing homes’ institutional environment and test their influence. We show that nursing home chains’ cost efficiency improves when local governments and shareholders exert pressure. Our results are robust to alternative model specifications and another definition of costs. Overall, our findings inform researchers, as well as standards setters, of the relevance of chain affiliation and of the role of institutional pressures regarding cost containment at the nursing home level.

Could Deal Promotion Improve Merchants' Online Reputations? The Moderating Role of Prior Reviews

X. LI

Journal of Management Information Systems

2016, vol. 33, n°1, pp.171-201

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

Mots clés : Deal promotion, Difference-in-differences, Moderating roles, Online deals, Online group sales, Online reviews, Propensity score matching

http://www.tandfonline.com/doi/full/10.1080/07421222.2016.1172450


It is by now almost accepted as a stylized fact that offering deal promotion (such as via Groupon or LivingSocial) deteriorates local merchants’ online reputations (e.g., the average of Yelp review ratings). However, in this paper we show that the stylized fact is not true in certain circumstances. We theorize that the valence and volume of prior reviews can play an important moderating role in the effect of deal promotion. Empirically, we show that restaurants with a relatively low prior average rating and a relatively small review volume have improved their online reputations by offering Groupon promotion. The proportion of such restaurants is substantial. The findings are robust to multiple identification strategies and econometric specifications. The results underscore the substantial heterogeneity in the effect of deal promotion on local merchants’ online reputations. Merchants need to understand the moderating role of prior reviews (e.g., the valence and volume of prior reviews) and design appropriate strategies to maximize the returns from offering deal promotion


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