Monthly Archives: May 2024

According to a study, ambitious employees set aside office politics when their employer is facing challenges

New research indicates that workers adapt their competitive strategies for promotion or salary increases depending on their organisation’s performance compared to competitors. Academics delved into the overtaking manoeuvres of motorcycle riders in MotoGP from 2004 to 2020, examining how their approach was influenced by their team’s competitive landscape and available resources. The study, led by Professor Hans Frankort from Bayes Business School, City, University of London, observed how often riders attempted to overtake both teammates (internal overtakes) and riders from rival teams (external overtakes).

Professor Frankort, in his insightful analysis, draws a parallel between sports, particularly motorsports, and various industries like consultancy and financial services. He underscores how these industries mirror the competitiveness seen in MotoGP. The published paper in the Academy of Management Journal unveils a fascinating aspect of this competitiveness-riders adjusting their overtaking strategies in response to their team’s competitive circumstances and the resources of rival teams.

The research emphasised that employees typically compete to enhance their organisational standing, often resorting to actions like poaching clients or disrupting colleagues’ work. However, ambitious workers adapt these behaviours based on their organisation’s performance. If the company shows potential to outperform rivals, employees may focus on actions that contribute to that success, such as client poaching. Conversely, during times of threat, like losing market share, internal conflicts may be viewed negatively, prompting employees to direct their competitive efforts externally.

The study indicated employers could influence employee behaviour by highlighting threats from smaller competitors or opportunities against larger rivals. Furthermore, contractual arrangements with the team also influenced riders’ overtaking behaviour. Like agency workers in MotoGP, replacement riders tended to attempt more overtakes against teammates when the team was thriving and against all riders when the team was struggling. This behaviour could be interpreted as replacement riders trying to showcase their abilities in hopes of securing a permanent contract.

The paper concludes with significant implications for both employers and employees. It highlights how riders whose contracts were not being renewed exhibited distinct behaviour on the track, challenging teammates more aggressively but showing less inclination to overtake riders from other teams. This behaviour, which suggests a sense of detachment or dissatisfaction with the team, could serve as a warning sign for employers. These findings offer valuable insights into how employees on different contract types navigate competitive environments, providing a roadmap for organisations to manage and leverage competitive dynamics.

More information: Patrick Hallila et al, Revving Up or Backing Down? Cross-Level Effects of Firm-Level Tournaments on Employees’ Competitive Actions, Academy of Management Journal. DOI: 10.5465/amj.2022.0946

Journal information: Academy of Management Journal Provided by City, University of London

Landmark advances in employment reframing the outlook for people with disabilities in the post-pandemic era

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A recent commentary published in The Journal of Spinal Cord Medicine sheds light on the unprecedented upward trajectory in employment opportunities for individuals with disabilities, propelled by the economic recovery phase following the COVID-19 pandemic. Entitled “Employment and people with disabilities: Reframing the dialogue in the post-pandemic era” and released on February 22, 2024, the piece delves into the multifaceted factors contributing to the recent surge in employment rates among this demographic. The authors delve into the intersection of elements fuelling the remarkable increase in employment levels among individuals with disabilities. This surge is underpinned by a conducive labour market, evolving attitudes among employers, and adopting inclusive workplace policies.

A series of reports by the National Trends in Disability Employment (nTIDE) from the Kessler Foundation and the University of New Hampshire Institute on Disability have been instrumental in exploring the various contributions made by different subgroups within the disability community towards this positive shift. One pivotal factor has been the swift adaptability exhibited by employers in response to the acute labour shortages precipitated by the pandemic. Innovations in recruitment, onboarding, training, and employee retention have broadened the opportunities available to individuals with disabilities.

A notable revelation from a 2022 survey conducted by the Kessler Foundation was the significant shift in supervisors’ perceptions towards more inclusive hiring practices and accommodations. This shift signifies a tangible and sustainable transformation in workplace culture, promising a more inclusive environment for individuals with disabilities.

However, the authors acknowledge uncertainties regarding these advancements’ longevity as the pandemic’s direct impact diminishes. The widespread adoption of remote work, which has been recognised as advantageous for many employees, including those with disabilities, faces a future fraught with mixed prospects as workplaces undergo readjustments and physical offices resume operations. Nonetheless, evidence suggests that remote and hybrid work arrangements will persist as viable options, supporting equity in employment opportunities for individuals with disabilities.

The article underscores the urgent need for ongoing research and policy development to sustain the upward trajectory in employment rates for individuals with disabilities. By acknowledging both the accomplishments and challenges illuminated during the post-pandemic recovery period, stakeholders can collaboratively strive to further narrow the employment disparity and nurture a more inclusive economy.

More information: Carolann Murphy et al, Employment and people with disabilities: Reframing the dialogue in the post-pandemic era, Journal of Spinal Cord Medicine. DOI: 10.1080/10790268.2024.2315927

Journal information: Journal of Spinal Cord Medicine Provided by Kessler Foundation

AI possesses the potential to assume critical managerial roles within scientific research

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Maximilian Koehler, a PhD candidate at ESMT, and Henry Sauermann, a professor of strategy at ESMT, delve into the dynamic role of artificial intelligence (AI) within scientific research. Rather than merely functioning as a “worker” executing specific research tasks like data collection and analysis, AI is explored as a “manager” overseeing human workers engaged in these tasks. This concept, known as algorithmic management (AM), heralds a significant paradigm shift in research project execution, potentially enhancing scalability and operational efficiency.

As the landscape of scientific research becomes increasingly intricate and expansive, Koehler and Sauermann’s study highlights AI’s capacity not only to replicate but also to potentially surpass human managers. This is achieved by harnessing AI’s instantaneous, comprehensive, and interactive capabilities. By examining algorithmic management in crowd and citizen science contexts, the researchers showcase examples where AI effectively fulfills five vital managerial functions: task division and allocation, direction, coordination, motivation, and supporting learning.

Their investigation involved scrutinising projects through online documentation, conducting interviews with organisers, AI developers, and project participants, and actively participating in some projects. This multifaceted approach enabled the researchers to pinpoint projects utilising algorithmic management, comprehend how AI executes management functions, and discern scenarios where AM might offer heightened efficacy.

The proliferation of use cases underscores the potential significance of adopting AM in enhancing research productivity. Koehler asserts, “The capabilities of artificial intelligence have reached a point where AI can now significantly enhance the scope and efficiency of scientific research by managing complex, large-scale projects.”

In a quantitative analysis comparing projects utilising AM with a broader sample, the study uncovers that AM-enabled projects tend to be larger and often associated with platforms providing access to shared AI tools. This trend suggests that while AM facilitates scalability, it also necessitates technical infrastructures that standalone projects might struggle to develop. These findings hint at evolving sources of competitive advantage in research and may hold significant implications for research funders, digital research platforms, and larger research entities such as universities or corporate R&D labs.

However, the integration of AI into management functions does not imply the obsolescence of principal investigators or human managers. Sauermann emphasises, “If AI can assume some of the more algorithmic and routine managerial functions, human leaders could redirect their focus towards strategic and interpersonal tasks such as identifying high-value research objectives, securing funding, or cultivating an effective organisational culture.” This underscores the potential for AI to augment human decision-making rather than replace it entirely, fostering a symbiotic relationship between AI and human expertise in scientific research management.

More information: Maximilian Koehler et al, Algorithmic management in scientific research, Research Policy. DOI: 10.1016/j.respol.2024.104985

Journal information: Research Policy Provided by ESMT Berlin

Economic prosperity could be associated with happiness in China when inequality is minimal

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In a groundbreaking study published on April 10, 2024, in the open-access journal PLOS ONE, Feng Huang from the Chinese Academy of Sciences and his team present a fresh perspective. They suggest that economic prosperity in a country can indeed enhance the well-being of its citizens, challenging long-held beliefs.

Philosophers have debated the complex relationship between financial wealth and happiness for centuries. Notably, Aristotle and Solon were sceptical about wealth’s joy-bringing capabilities. Conversely, the Easterlin Paradox posits that a nation’s economic strength can positively affect the health and happiness of its people. However, there has been little evidence to back this assertion in China, where there has been significant financial growth and swift industrialization recently.

To explore this further, Huang and his colleagues examined how national economic growth affected subjective well-being—a measure of personal happiness—across 31 mainland China provinces from 2010 to 2020. The researchers used two vital financial indicators from the National Bureau of Statistics of China: the per capita gross domestic product (GDP) and the Gini coefficient, which measures income inequality. To assess the subjective well-being of Chinese citizens, they analyzed content from 644,243 users of Weibo, a popular microblogging platform, using natural language processing techniques to determine the sentiment of each post.

The findings reveal that from 2010 to 2020, subjective well-being generally improved as GDP per capita increased—specifically, a 0.38-unit increase in well-being for every 46.70% rise in GDP per capita. However, higher income inequality correlated with lower subjective well-being, with a decrease of 1.47 units for every 0.09 unit increase in the Gini coefficient. Furthermore, the study found that once the Gini coefficient surpasses 0.609, the positive correlation between the economy and mental health dissipates.

The majority of the study participants were from the more prosperous regions of Eastern China and were all literate social media users, which could limit the broader applicability of the findings. The researchers suggest that future studies could focus on wealth disparities within smaller geographic areas, such as cities or communities, rather than entire provinces. Despite these limitations, the study champions a balanced approach to economic policy, advocating for strategies that address income disparities and promote sustainable growth.

In conclusion, the study underscores the delicate balance between economic growth and income equality in enhancing well-being in China. It highlights the complex relationship between achieving prosperity and maintaining fair wealth distribution for genuine happiness.

More information: Feng Huang et al, Does wealth equate to happiness? an 11-year panel data analysis exploring socio-economic indicators and social media metrics, PLoS ONE. DOI: 10.1371/journal.pone.0301206

Journal information: PLoS ONE Provided by PLOS

VAT information could assist nations in better preparing for crises

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“How would an armed conflict, an epidemic, or a flood impact the economy? The ability to assess—and potentially predict—the economic repercussions of such crises is crucial for mitigating and counteracting the damage,” remarks Christian Diem from the Complexity Science Hub (CSH).

A groundbreaking study in PNAS Nexus has unveiled a new frontier in crisis preparedness. It emphasises that countries could significantly enhance their readiness by harnessing an exceptionally detailed supply chain data set. For the first time, CSH researchers have demonstrated that the conventional sector-level economic data often underestimates the economic impact of crises by as much as 37%, in comparison to highly detailed company-level data.

This unique study utilised a comprehensive dataset of value-added tax (VAT) information from Hungary, encompassing 243,399 companies and over 1.1 million supply relationships, representing the entire national economy. Stefan Thurner from the CSH explains that this extensive dataset enabled the researchers to conduct a thorough analysis comparing the economic effects of crises, using either the 88 economic sectors defined by the European Union or detailed supply chain data at the company level, which includes all companies and their customer-supplier relationships.

The research involved simulating 1,000 hypothetical crisis scenarios to ensure that the models closely mirrored real-world crises. The scenarios were informed by empirical data on the economic effects of the Covid-19 crisis in early 2020.

It was a significant finding that the impact of each simulated crisis was consistently underestimated—by up to 37%—when only sector-level data was used, which has been the traditional method. Conversely, the results at the company level aligned much more closely with the actual recession outcomes in the second quarter of 2020, indicating that sectoral-level assessments typically underestimate the full extent of a crisis’s impact compared to company-level data.

Thurner further elaborates, “Traditionally, a country’s economy has been viewed predominantly through the lens of entire economic sectors. For instance, discussing the overall impact on the automotive industry due to supply bottlenecks. However, this new dataset allows us to observe the ‘atoms’ of the economy—the individual companies—and how they interact within the supply chain. This offers a novel and fascinating perspective into economic science.”

The approach allows for a nuanced calculation of how individual companies within sectors are affected by a crisis instead of generalising across an entire industry. “The difference is substantial between stating that a sector might incur a 20% loss and using simulations to identify which specific companies within that sector are likely to be affected,” Diem adds. This method also highlights how these effects propagate through the supply network, impacting direct and indirect trading partners.

Globally, more than 160 countries implement a VAT system and could theoretically use it to reconstruct their supply networks. However, only a select group of countries, including some EU members like Spain, Belgium, and Hungary, as well as nations such as India, China, and some in Africa and Latin America, actively collect the necessary data to facilitate this kind of analysis.

For nations like Germany and Austria that currently do not collect VAT data in a manner conducive to this analysis, a minor adjustment in the VAT reporting by firms could bridge the gap, potentially automated through firm accounting software, according to Diem. This adjustment could not only aid in reducing VAT fraud but also significantly contribute to their crisis preparedness.

Diem concludes, “This study underscores the significant discrepancies between aggregated sector-based estimates and those derived from detailed company-level data, highlighting the importance of collecting and analysing granular data. Accurate data is imperative, irrespective of the nature of the threat—be it a natural disaster, environmental issues, or political interventions—as it enables authorities to anticipate potential consequences and respond swiftly and effectively.”

More information: Christian Diem et al, Estimating the loss of economic predictability from aggregating firm-level production networks, PNAS Nexus. DOI: 10.1093/pnasnexus/pgae064

Journal information: PNAS Nexus Provided by Complexity Science Hub

Which countries are most vulnerable in the global supply chain?

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Researchers from the Complexity Science Hub (CSH) have conducted a groundbreaking study using firm-level data from the global supply network to assess countries’ vulnerability to production losses triggered by firm defaults abroad. Their findings are of utmost importance, revealing that affluent countries are primarily at risk from supply chain disruptions originating from other wealthy nations. In stark contrast, less developed and poorer nations face risks from disruptions across all countries, underscoring the global nature of supply chain vulnerabilities.

Tobias Reisch, a CSH scientist, explains their data’s robustness: “Our data, sourced from Standard & Poor’s Capital IQ platform, holds information on most of the world’s significant companies. It covers around 230,000 companies across 206 countries, offering an unparalleled comprehensive overview of the global supply chain network.” Reisch, one of the primary authors of the study published in Nature Communications, adds that the data includes details on almost one million corporate relationships, meticulously mapping the flow of goods and services internationally.

The team at CSH also simulated various economic shocks to understand their potential impact on the supply chain. These hypothetical scenarios included infrastructure failures, like a bridge collapse in Baltimore, and natural disasters, like an earthquake in Taiwan. They studied how these disruptions would interrupt the flow of goods and services and observed the propagation of these shocks within the networks.

Stefan Thurner, the study’s senior author and president of CSH, noted that while high-income countries tend to have a broader impact, spreading systemic risk beyond their regions, low-income countries suffer disproportionately from high exposure levels. This finding contradicted their initial expectations. “We thought that richer, industrialized countries would be more affected due to their deeper integration into global value chains. However, it turns out they are less affected by economic shocks but are instead major contributors to these shocks,” says Reisch. He points out that these countries often have more diversified economies or occupy different positions within the supply networks, thereby exposing other countries more than they are exposed to.

The study also highlights that exposure to supply chain disruptions is highly structured on a regional level, suggesting that companies are most vulnerable to shocks within their borders. “This underscores the strong local or national integration of firms within their supply chains, with similar regional dependencies observed in Africa and Europe,” Reisch elaborates.

The CSH researchers also address the issue of structural inequality in supply networks between countries. They suggest that it is crucial to understand the processes that allow firms from various income levels to engage in production and trade relations—and how to do so with reduced risk exposure to poorer nations. The authors propose a potential strategy for creating more resilient, fair, and sustainable supply chains: introducing a ‘systemic risk tax’ on international supply networks. “This idea draws on concepts we previously developed for enhancing resilience in financial markets. The complexity of supply chains means more research is needed to refine this taxing scheme,” explains Thurner.

More information: Abhijit Chakraborty et al, Inequality in economic shock exposures across the global firm-level supply network, Nature Communications. DOI: 10.1038/s41467-024-46126-w

Journal information: Nature Communications Provided by Complexity Science Hub

Optimising electronic health records: study reveals improvements in departmental productivity

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In a recent publication in the Annals of Family Medicine, the Marshall University Joan C. Edwards School of Medicine revealed significant improvements in departmental productivity through electronic health record (EHR) optimisation. This research, which emphasises the crucial role of cooperative efforts among clinicians and IT specialists, found that such collaboration can greatly enhance the utility of EHR systems, now widely implemented across healthcare settings.

The initiative, led by a healthcare team within a family medicine department, embarked on a focused four-month EHR optimisation effort with IT experts. This project stood out from previous endeavours, which often concentrated on broad institutional achievements, by zeroing in on the refinement of EHR interface development and its impact on clinical workflow.

Adam M. Franks, M.D., interim chair of family and community health at the Joan C. Edwards School of Medicine and the study’s lead researcher, shared his insights on the prevailing challenges: “There has been a persistent gap between EHR developers and end-users, leading to interfaces that often overlook the nuances of clinical workflows. Our study was designed to address this issue and highlight the concrete benefits of cooperative optimisation initiatives.”

The research methodology incorporated a comprehensive quality improvement process that involved clinicians and clinical staff at various levels. The optimisation was categorised into four types: accommodations (departmental adjustments to align with EHR workflows), creations (new workflows designed by IT), discoveries (identification of previously unnoticed workflows within the EHR), and modifications (IT-made adjustments to existing workflows).

The study results were quite promising, showing substantial boosts in productivity metrics: Monthly charges increased from 0.74 to 1.28, and payments rose from 0.83 to 1.58. Although the increase in monthly visit ratios from 0.65 to 0.98 was observed, it did not reach statistical significance.

One of the study’s significant revelations was that many solutions to usability issues were already present within the EHR system itself, suggesting that a deeper exploration and understanding of existing workflows are essential. Moreover, the findings regarding accommodation optimisations highlighted the importance of better pre-implementation collaboration between EHR developers and end-users, pointing towards the potential for more user-friendly design approaches.

“Our research not only proves the effectiveness of departmental collaboration with IT in optimising EHR but also stresses the importance of meticulous workflow analysis to boost productivity,” explained Dr. Franks.

This study offers invaluable insights for healthcare organisations striving to fully leverage their EHR systems. Its broader implications include enhancing patient care, operational efficiency, and overall organisational performance.

More information: Adam M. Franks et al, Optimization of Electronic Health Record Usability Through a Department-Led Quality Improvement Process, The Annals of Family Medicine. DOI: 10.1370/afm.3073

Journal information: The Annals of Family Medicine Provided by Marshall University Joan C. Edwards School of Medicine