Monthly Archives: September 2025

Flourishing teams fuel success

James Ritchie-Dunham, a clinical associate professor of strategy at Texas McCombs, has long been intrigued by the question of why some work teams appear happier and more productive than others. His research suggests that the key lies not in intelligence or innate ability, but in the deliberate choices teams make about how they interact. In flourishing groups, members consciously agree to engage in ways that promote well-being for themselves and others. This dynamic, he argues, helps explain why specific teams can achieve results that might seem impossible under traditional models of performance.

As co-lead of the Leadership for Flourishing project, Ritchie-Dunham is helping to spearhead one of the most ambitious studies on workplace well-being ever undertaken. The project spans 59 countries and dovetails with the Global Flourishing Study, a five-year interdisciplinary initiative surveying more than 200,000 people across 22 countries and one territory on six continents. With Nature Portfolio having already published numerous papers on the first wave of data, the study is now in its third phase, providing an unprecedented wealth of information on how individuals experience meaning, health, purpose, and productivity in their professional and personal lives.

Central to this work is the concept of human flourishing, which Ritchie-Dunham defines as encompassing good mental and physical health, strong social relationships, a sense of purpose, financial and material stability, moral character, and, in some cases, spiritual beliefs. These dimensions of well-being are not confined to personal life but carry over into professional environments. When employees feel that they are making meaningful contributions—ones that align with their own skills and passions—they are more likely to thrive. High-performing teams, though relatively rare, exemplify this pattern, standing out as positive outliers in global datasets.

What distinguishes these flourishing teams is not superior intellect or resources, but the agreements that shape their working relationships. Rather than focusing solely on outcomes, they ask a simple but profound question: “Are we all better off for having interacted?” This ethos forms the foundation of their collaboration. Team members take responsibility for their own work, respect one another’s ideas, and provide mutual support. These practices, Ritchie-Dunham emphasises, are not confined to small groups but can ripple outward, benefiting customers, communities, investors, and other stakeholders through what he calls “ecosystem-wide flourishing.”

Examples of such practices can be seen in organisations like a microfinance company that has been studied for over five years. This firm, which provides microloans to small businesses, demonstrated unusually high levels of flourishing among both employees and clients when compared to global averages. Its leaders granted staff the autonomy to manage their work, while simultaneously fostering strong interpersonal relationships. The data showed a clear correlation between this well-being-oriented approach and significant gains in productivity, which in turn translated into stronger financial outcomes. This suggests that investing in people’s flourishing is not only ethically sound but also strategically advantageous.

For managers seeking to apply these insights, Ritchie-Dunham highlights three practical lessons: respect, curiosity, and agility. Respect means trusting employees to do the work they were hired to do, while providing support rather than micromanagement. Curiosity encourages leaders to view new ideas not as disruptions but as opportunities for growth. Agility involves experimenting with changes and adapting based on results, creating space for innovation without fear of failure. Taken together, these practices foster trust, expand purpose, and open the door to greater flourishing across teams and organisations. In Ritchie-Dunham’s view, the path to productivity begins with the simple but radical act of enabling people to thrive.

More information: James Ritchie-Dunham et al, The Global Flourishing Study: Study Profile and Initial Results on Flourishing, Nature Mental Health. DOI: 10.1038/s44220-025-00423-5

Journal information: Nature Mental Health Provided by University of Texas at Austin

High-status producers can reinvent artists’ images, while mid-status producers merely follow trends

Leave a Reply

In cultural industries where producers shape the creative process, status determines how much freedom they have to reinvent their artists. High-status producers command the resources and audience support needed to take bold risks with their artists’ images. In contrast, mid-status producers are more inclined to adapt to prevailing market trends. A new study published in the Strategic Management Journal explores this dynamic in the Korean pop music industry, or K-pop, revealing how the standing of entertainment agencies affects the ways idol groups shift their concepts, with gender further constraining these changes.

The research, conducted by Heeyon Kim of Cornell University, Yoonjeoung Heo of Xi’an Jiaotong-Liverpool University, and Chi-Nien Chung of Hong Kong Polytechnic University, builds on earlier studies of category shifts in creative markets. Previous work emphasised the limitations artists face when moving between categories. Still, this team considered how shifting identities over time can create multifaceted profiles that ultimately strengthen an artist’s appeal and adaptability. By reframing identity shifts as potential advantages, they brought new insight into how status interacts with long-term creative strategy.

The authors advanced three hypotheses about status and identity change. First, they suggested that mid-status actors are especially motivated to follow dominant trends, hoping that conformity will win them greater visibility and audience acceptance. Second, they argued that high-status actors, while more cautious initially, are freer to experiment over time and more likely to pursue radical shifts that build multifaceted identities. Finally, they recognised that these patterns are not shaped by status alone but are also constrained by broader societal norms, especially those tied to gender, which can narrow the range of acceptable shifts.

To test these ideas, the researchers analysed the K-pop industry, where entertainment agencies exercise substantial control over idol groups’ concepts and images. They created a typology of possible K-pop “concepts” and ranked agencies by high, middle, or low status based on industry awards. Then they examined 680 songs by 122 idol groups from 76 agencies between 2004 and 2016. Each music video was coded for its concept, allowing the team to measure how often groups shifted categories and how these shifts aligned with agency status.

The findings supported all three hypotheses. Idol groups from mid-status agencies most frequently followed the dominant market trends, relying on conformity to capture attention. Groups from high-status agencies, meanwhile, pursued fewer shifts in the short term, focusing instead on establishing distinct identities. Yet when they did alter course, they tended to make the most radical moves, supported by loyal fan bases that allowed experimentation without fear of losing core support. As Kim noted, high-status agencies act as trendsetters, while mid-status agencies are more often followers seeking visibility.

However, the study also showed that gender norms limit these dynamics. The effects of status were most substantial for male idol groups, while female groups were more constrained by societal expectations, regardless of their agency’s standing. In sum, the research demonstrates that higher status grants producers and artists both resources and resilience to pursue multifaceted identities. For managers, recognising their status position is crucial: mid-status actors may need to consolidate their audience by following trends, whereas high-status actors have the privilege to experiment and shape new directions in the creative market.

More information: Heeyon Kim et al, Changing tracks: How status affects category shifts in the Korean popular music industry, Strategic Management Journal. DOI: 10.1002/smj.3739

Journal information: Strategic Management Journal Provided by Strategic Management Society

Illusions of insight: When having some knowledge blinds us worse than none

Leave a Reply

Chess is often celebrated as the archetypal strategic game because of its temporal complexity: the real value of a move may remain hidden until many turns later, when the consequences finally emerge. Organisations face a comparable challenge. Strategic and managerial decisions rarely deliver instant results; instead, their outcomes unfold gradually, sometimes over years. This delay between action and consequence creates environments in which the wisdom of a choice is uncertain. Leaders, therefore, draw upon both their internal experience and external sources of information to navigate these challenges. Yet, existing behavioural models of learning have only lightly touched upon how individuals and organisations grapple with such complicated, temporally complex problems.

An international team of scholars has broken new ground on this issue. Professor Ji-hyun Kim of Yonsei University in South Korea, Professor Christina Fang of NYU Stern in the United States, and Assistant Professor Hisan Yang of Louisiana State University have conducted a computational exploration of how external knowledge shapes decision-making in temporally complex problem-solving contexts. Their study was published online on 10 April 2025 in the Articles in Advance section of Organization Science. By bringing together insights from strategy, learning, and decision sciences, the researchers provide a powerful new perspective on the risks and rewards of relying on knowledge that originates outside the organisation.

The results challenge long-held assumptions. While it might seem obvious that access to external knowledge improves performance, the team demonstrates that this is not always the case. As Professor Kim notes, “Our key point is the counterintuitive finding that limited external knowledge can actually impair performance more than having no external knowledge at all in temporally complex problem-solving environments.” When knowledge is partial or incomplete, it can misdirect decision makers, creating the illusion of progress while obscuring better long-term options. In such settings, ignorance may paradoxically be less harmful than reliance on misleading fragments of wisdom.

Central to their findings is the concept of interim attractors. When only a subset of states or actions is illuminated by external knowledge, decision makers begin to value these intermediate signposts as if they were genuine milestones of success. This can cause them to favour actions that lead toward these interim points, rather than those that move more directly toward the ultimate objective. Such distortions are particularly dangerous in environments where feedback is delayed and outcomes accumulate slowly—circumstances that characterise much of organisational strategy. In other words, what appears to be helpful guidance may end up channelling energy into cul-de-sacs of effort.

The researchers illustrate their argument with real-world cases. The ill-fated BlackBerry Storm smartphone by Research in Motion exemplifies how recognising the external signal of growing demand for touchscreens was not enough; without matching internal expertise, the company produced a flawed product that undercut its own market position. In another example, pharmaceutical giants such as Merck, Sanofi, and GSK pursued COVID-19 vaccines based on prior external knowledge of vaccine platforms. However, the approaches that had once brought them success proved unsuitable for the novel coronavirus, leading to abandoned projects despite strong starting positions. These cautionary tales underscore the risks of clinging too tightly to partial knowledge in complex environments.

The implications of this research are wide-ranging. In pharmaceuticals, technology, healthcare, and education, where decisions often involve high stakes and long horizons, organisations must balance external templates and internal experience with great care. The study’s lessons extend to the design of educational curricula, the shaping of public policies, the management of digital transformation, and even individual career development. Over the next decade, the message is clear: the most effective learning and decision making will come not from the accumulation of ever more external knowledge, but from striking a balance—leveraging reliable outside insights while cultivating the patient, experiential learning that equips decision makers to adapt and innovate in the face of temporal complexity.

More information: Ji-hyun Kim et al, Learning in Temporally Complex Problems: The Role of External Knowledge, Organization Science. DOI: 10.1287/orsc.2022.16469

Journal information: Organization Science Provided by Yonsei University

Global Strategies for Balancing Health and Economy in the COVID-19 Era

Leave a Reply

The COVID-19 pandemic presented governments around the world with an extraordinary challenge: how to strike an effective balance between infection control and the preservation of economic stability. To investigate how nations navigated this dilemma, researchers analysed the temporal dynamics of mortality, vaccination uptake, production levels, and economic recovery across a diverse set of countries. Their findings revealed that differences in national performance were shaped not only by policy choices but also by underlying attitudes towards risk and economic preference. These insights provide valuable lessons for governments and citizens alike in preparing for future pandemics, where social defence will depend on a deeper understanding of behavioural responses and cooperation.

When COVID-19 first spread across the globe, it caught societies unprepared, forcing governments to adopt extraordinary and often unprecedented measures. Nations adopted varying strategies, yet the fundamental questions were remarkably similar: How should policymakers respond to a rapidly emerging infectious threat? And, equally important, how should populations cooperate with their governments in enacting protective measures? The answers to these questions shaped outcomes in both public health and economic terms, as some countries prioritised the strict suppression of infections. In contrast, others leaned more heavily towards protecting livelihoods and economic activity.

The spectrum of responses produced strikingly different trajectories. Some states, by imposing strict controls early, managed to limit mortality at the outset, while others emphasised economic continuity but endured greater losses of life. Each approach generated its own set of trade-offs, and together they offer a unique comparative lens through which future global crises may be managed more effectively. In this context, Professor Hiroaki Masuhara of the Faculty of Economics and Law at Shinshu University and Professor Kei Hosoya of the Faculty of Economics at Kokugakuin University undertook a comprehensive cross-country analysis. Their study, published in the Journal of Policy Modeling on 7 August 2025, examined data on deaths, vaccination coverage, production, and consumption across member nations of the Organisation for Economic Co-operation and Development (OECD), as well as Singapore and Taiwan, from the beginning of 2020 through the close of 2022.

The study’s findings underscore the transient nature of infection control. In the early months of the pandemic, countries such as Australia, Japan, New Zealand, Singapore, South Korea, and Taiwan managed to contain death rates with considerable success. Yet by 2022, even these nations faced surges in mortality, revealing the difficulty of sustaining control measures indefinitely. By contrast, Eastern European countries and the United Kingdom experienced high mortality earlier, reflecting challenges in implementing or sustaining stringent health measures. These contrasts reveal that infection control was never a permanent achievement but rather a constantly shifting goal, shaped by both virus dynamics and societal response.

On the economic front, strict infection control often coincided with reductions in production and consumption. Except for Norway, Finland, and Israel, all nations studied reported significant declines in output, while consumption fell universally. The researchers highlight that beyond the policies themselves, citizens’ behaviour and underlying attitudes—such as levels of patience, trust in government, and tolerance of risk—proved decisive in shaping both economic and health outcomes. For example, Norway stood out as particularly successful in balancing mortality control with economic revival, reflecting high trust levels and risk-averse behaviour. Similarly, Australia, Japan, New Zealand, Singapore, South Korea, and Taiwan combined early success in suppressing deaths with notable progress in economic recovery, though their experiences diverged later.

By contrast, countries such as the United States and many in Eastern Europe fared less well in curbing fatalities. The United States, characterised by lower patience and greater tolerance of risk, nonetheless achieved a relatively steady path of economic recovery, albeit at the cost of higher mortality. Japan, on the other hand, displayed strong risk aversion and low confidence, conditions associated with a more fragile economic revival despite initial success in controlling deaths. These observations suggest that national attitudes towards risk and patience influence not only immediate health outcomes but also the pace and shape of economic rebound. Regional dynamics also appeared to play a role, as neighbouring countries’ approaches exerted influence on policy choices.

Reflecting on these findings, Professor Masuhara emphasises the importance of integrating social and psychological dimensions into pandemic preparedness. “To enhance public health and economic performance,” he observes, “it is necessary to take into account the different time preferences and attitudes toward risk that vary by country and its citizens. These insights should be recognised not only by governments but also by people themselves, and constitute an important component of social defence, including voluntary behavioural changes during future pandemics.” Such recognition underscores that effective responses do not depend solely on state capacity but also on the willingness of populations to cooperate, to exercise patience, and to trust the measures being implemented.

Ultimately, the research illustrates that achieving lasting infection control alongside stable economic performance is a profoundly complex undertaking. Beyond chance or “luck,” national levels of trust, patience, and risk tolerance are key determinants of success. While no single factor guarantees positive outcomes, understanding these dynamics can inform more adaptive and effective policymaking. As Professor Masuhara concludes, “The success or failure of interventions depends on public patience and trust, and widespread cooperation with governmental interventions can contribute to building a robust social epidemic prevention system. We hope that our paper will serve as foundational material for future policy discussions.” By drawing on these insights, governments and citizens may be better prepared to navigate the inevitable tensions between health protection and economic vitality when the next pandemic arrives.

More information: Hiroaki Masuhara et al, Which countries performed better in the COVID-19 pandemic? Lessons from and for governments, Journal of Policy Modeling. DOI: 10.1016/j.jpolmod.2025.05.008

Journal information: Journal of Policy Modeling Provided by Shinshu University

The Role of Real-Time Emotional Expression in Driving Consumer Intentions and Behavioural Imitation

Leave a Reply

The rapid expansion of social media over the past two decades has fundamentally reshaped how individuals communicate, share, and respond to one another. Among its most distinctive features is the capacity for instantaneous, real-time interaction that takes place while content is being consumed. This immediacy has not only accelerated but also complicated how emotions are expressed, perceived, and ultimately translated into human behaviour. Yet, despite the centrality of these dynamics to contemporary digital culture, the specific mechanisms through which emotions are transmitted between users—and how these emotional exchanges become tied to tangible viewer responses—remain insufficiently understood. This gap in understanding is particularly evident in digital environments where video content and live viewer comments are synchronised, creating unique conditions for emotional expression and contagion.

To address this gap, the study was guided by the Emotions as Social Information (EASI) theory, a framework which posits that emotional expressions serve as crucial social signals that shape others’ cognitions and behaviours. Building on this perspective, the research team undertook an empirical investigation that centred on the analysis of more than 50,000 barrage comments. Barrage comments are a distinctive form of online interaction: short, rapid-fire messages that appear directly on the video screen at the moment viewers post them, thereby creating a layered, communal viewing experience. The dataset for this research was drawn from a single promotional video, produced in collaboration with a commercial partner and subsequently posted on the Chinese video-sharing platform Bilibili, one of the most influential hubs of youth-oriented online culture in China.

By combining emotion analysis with advanced statistical modelling techniques, the researchers examined the extent to which viewers’ expressed emotions were associated with consumer-related behaviours. These behaviours encompassed both personal decisions, such as the intention to purchase the featured product, and interpersonal actions, such as the imitation of other viewers’ comments or behaviours. In doing so, the study paid particular attention to the dual dimensions of repetition: viewers repeating their own earlier actions on the one hand, and engaging in mimicry of others’ comments on the other. This dual focus allowed the team to capture both the individual and collective facets of behaviour that emerge in the synchronised comment-video environment.

The results provided compelling evidence of the power of emotional expression within this interactive format. Specifically, positive emotional comments were strongly associated with greater purchasing intent, highlighting the persuasive role of shared enthusiasm and positivity in shaping consumer behaviour. Beyond this, the study documented notable patterns of imitative behaviour. In certain scenes of the promotional video, waves of viewers echoed or reproduced others’ comments, demonstrating a synchronised form of collective mimicry. This finding suggests the presence of real-time emotional contagion, whereby expressions of emotion are not only observed but actively replicated, thereby reinforcing a shared affective atmosphere.

At the same time, the findings revealed more nuanced dynamics that complicate a straightforward account of emotion-behaviour relationships. For instance, repeated viewing of the same video exhibited only a weak correlation with the emotions expressed in comments, indicating that habitual engagement or repeated exposure operates differently from immediate emotional expression. This subtlety underscores the need to distinguish between diverse forms of user behaviour, since not all actions—whether revisiting content or participating in real-time commentary—carry the same emotional weight or implications for consumer decision-making.

Taken together, the study demonstrates that the synchronisation of video and barrage comments provides a fertile context for the transmission and amplification of emotions, shaping both personal purchasing intentions and collective imitative behaviours. It highlights how the interplay of individual expression and group dynamics can generate powerful cascades of affect, while also pointing to the limits of this influence in cases where behaviour is more routine or less emotionally charged. In doing so, the research advances our understanding of how emotions function as social information in digital environments, offering new insights into the mechanisms by which online interactions shape consumer culture and collective behaviour in the age of real-time media.

More information: Qiao Wang et al, Dynamic analysis of barrage comments on sentimental influence and behavior, Scientific Reports. DOI: 10.1038/s41598-025-12286-y

Journal information: Scientific Reports Provided by University of Tsukuba

AI hasn’t surpassed human salespeople… not quite yet

Leave a Reply

Artificial intelligence is steadily reshaping online shopping, yet livestream sales remain an arena where humans outperform machines. A new study from the UBC Sauder School of Business reveals that AI-powered “digital streamers”—virtual hosts that promote products during live broadcasts—fall well short of their human counterparts. In many cases, their results are scarcely better than having no host at all.

“People tend to assume that if companies are investing in digital streamers, they must be effective. But that’s not true, at least not in their current incarnation,” said UBC Sauder associate professor Dr. Yanwen Wang, co-author of the study recently published in Information Systems Research. To investigate, the team examined sales data from a leading fashion retailer on Tmall.com, one of the world’s largest e-commerce platforms. Out of 328 products analysed, 72 were promoted by digital streamers, 74 by human hosts, and 182 had no presenter. The pattern was clear: human streamers drove significant sales growth, while digital ones added only a marginal lift.

The researchers then partnered with a new online grocery retailer on Tmall to test whether design changes could improve the performance of AI streamers. Starting with a simple cartoon-like avatar, they progressively introduced more sophisticated features, such as natural voices, realistic appearances, and interactive capabilities. Their goal was to identify which qualities mattered most to shoppers.

The results pointed to two decisive factors: form realism, meaning how convincingly human the avatar looked, and behavioural realism, or how effectively it interacted with viewers. Of all the upgrades trialled, the most powerful was giving the streamer the ability to answer questions in real time. This single feature led to a 25-per-cent increase in products sold and an 86-per-cent surge in revenue. Interactive elements such as a lottery system also helped, boosting sales by 17 per cent and revenue by 70 per cent.

Although cosmetic improvements like human-like voices and more polished appearances delivered modest gains, Dr. Wang emphasised that interactive engagement was essential. “Only by enabling real-time Q&A could digital streamers match the sales performance of human presenters,” she explained. This finding highlights the importance of immediate, two-way communication in persuading customers to buy.

Looking ahead, the researchers suggest that a hybrid approach is most effective, with a single human overseeing several AI streamers and stepping in when nuanced responses are needed. Digital hosts have clear cost advantages—they can operate round the clock without salaries, breaks, or fatigue—but businesses must recognise that without meaningful interaction, they offer little benefit. As Dr. Wang concluded: “Our study shows that digital streamers can be effective, but only if they are designed to engage customers as dynamically as humans.”

More information: Yanwen Wang et al, Artificial Intelligence-Powered Digital Streamers in Online Retail: Empirical Insights and Design Strategies from Experiments, Information Systems Research. DOI: 10.1287/isre.2023.0024

Journal information: Information Systems Research Provided by University of British Columbia

Gratitude’s Role in Softening Financial Pressures

Leave a Reply

A new study published in De Gruyter Brill’s Open Psychology has found that gratitude may play a protective role in easing the burden of financial stress. Led by Dr Rona Hart of the University of Sussex, UK, the research suggests that individuals who report higher levels of gratitude also tend to experience lower levels of stress related to money matters. This highlights gratitude as a potentially valuable psychological resource in helping people cope with the pressures of an uncertain financial climate.

The study set out to explore not only the links between gratitude and financial stress but also how people’s ability to feel grateful interacts with their everyday financial behaviours. Recognising that financial well-being is shaped by more than individual attitudes alone, the researchers incorporated sociodemographic factors such as age, gender, income, education, and employment status. This broader framework acknowledges the multiple influences that determine how individuals experience and respond to financial strain.

Participants were asked to complete online questionnaires designed to capture their experiences of gratitude and the circumstances that triggered it. Respondents reported gratitude in relation to their personal circumstances – such as good health, meaningful social connections, and supportive relationships – as well as their environment, including the enjoyment of natural beauty. Alongside these measures, the surveys assessed levels of financial stress, defined as the emotional, physical, and behavioural reactions that arise when people feel unable to meet financial obligations or sustain sufficient funds to cover basic needs.

In addition, the researchers examined financial management behaviours, such as goal setting, budgeting, spending patterns, giving and borrowing habits, and saving and investing strategies. The aim was to determine whether gratitude influenced not only emotional resilience but also practical financial decision-making. While it was clear that gratitude significantly predicted lower levels of financial stress, it was less directly linked to the specific financial management strategies people employed.

This distinction reveals a vital nuance: gratitude may reduce the emotional toll of financial challenges without automatically leading to more effective budgeting or saving habits. The researchers argue that financial behaviours are likely shaped by a complex web of psychological, economic, and demographic factors that go beyond gratitude alone. These interconnections warrant deeper investigation, ideally drawing on perspectives from both positive psychology and economic psychology to understand the mechanisms at play better.

Reflecting on the findings, Dr Hart emphasised the potential real-world impact of this research. “Our study delves into the roles of gratitude in the financial behaviour and financial well-being equation, while also revealing areas ripe for continued investigation,” she explained. She added that by incorporating gratitude into therapeutic or educational interventions, individuals may be better equipped to withstand financial stress and strengthen their capacity to make sound financial choices. Such insights, she noted, could be especially valuable in empowering people to navigate today’s turbulent financial landscape.

More information: Dali Hayward et al, The Role of Gratitude in Financial Stress and Financial Behaviours, Open Psychology. DOI: 10.1515/psych-2025-0008

Journal information: Open Psychology Provided by De Gruyter

Studies reveal nonprofits’ use of flexible labour harms operations and offers no long-term financial advantage

Leave a Reply

In recent years, businesses, governments, and nonprofit organisations alike have been urged to “do more with less,” with efficiency often promoted as the guiding principle. This drive has brought about decentralisation across many sectors, including nonprofits, which increasingly rely on flexible labour arrangements such as temporary employees, contractors, and consultants. While this shift may appear to provide immediate advantages in reducing costs and maintaining short-term liquidity, new research suggests the story is far more complex when it comes to long-term impact. Studies conducted at the University of Kansas reveal that reliance on labour not provided by full-time employees can undermine nonprofits’ operational effectiveness and does not lead to sustainable financial improvement.

The research, carried out by Hala Altamimi, assistant professor of public affairs and administration at the University of Kansas, in collaboration with Qiaozhen Liu of Florida Atlantic University, focused explicitly on arts-based nonprofits. Their analysis drew on a decade of data collected by DataArts, covering over 18,500 organisations across the United States. The findings show that when nonprofits increase their dependence on flexible labour, operational outcomes—measured in part by attendance at events—tend to decline. This negative relationship was most pronounced when flexible labour was used in core roles directly tied to programme delivery, such as production and service provision. The results suggest that when the heart of a nonprofit’s mission is outsourced to temporary staff, the quality and reach of its work can suffer.

Altamimi and Liu framed their analysis through three lenses: institutional, motivational, and relational. Unlike private businesses, nonprofits exist to pursue missions rather than profits, meaning their effectiveness depends heavily on continuity and depth of commitment. Employees in nonprofits are often motivated by the cause itself, even when wages are lower than in other sectors. Introducing flexible labour into such environments can undermine this motivation, as temporary staff are less likely to be aligned with the long-term mission. Furthermore, nonprofits thrive on social capital—relationships with communities, donors, and partners—that are difficult to build or sustain when staff turnover is high. These dynamics highlight why flexible labour may work in the private sector but proves less effective in mission-driven organisations.

In addition to operational outcomes, Altamimi and Liu examined the financial implications of flexible labour. Their second study, published in Nonprofit Management and Leadership, found that while nonprofits may experience short-term gains in liquidity and cost savings, these benefits do not translate into long-term fiscal health. Solvency, profitability, and overall financial sustainability remained unchanged despite higher use of flexible labour. In other words, the absence of adverse financial outcomes should not be mistaken for improvement—relying on flexible labour neither strengthens an organisation’s fiscal foundation nor provides a viable growth strategy.

These findings carry a cautionary message for nonprofits grappling with limited budgets and mounting pressures to adopt private-sector practices. Flexible labour offers a quick fix in times of financial constraint. Still, the evidence shows that over-reliance can jeopardise operational effectiveness and provide little in the way of lasting financial relief. Altamimi stresses that nonprofits should not entirely dismiss flexible labour but should carefully consider the roles in which it is used. Temporary or contract staff may be appropriate in peripheral areas such as administration or fundraising support, but using them in core programme roles risks weakening an organisation’s ability to fulfil its mission.

Ultimately, Altamimi’s research underscores the importance of balance and strategic foresight. Nonprofits must weigh the short-term appeal of flexible labour against the potential erosion of their mission-driven effectiveness and long-term stability. The message is clear: flexible labour is not inherently harmful, nor is it a sustainable solution on its own. Instead, it is a tool that must be employed judiciously, with careful attention to how it intersects with organisational values, community relationships, and strategic objectives. In a climate where efficiency narratives dominate, the research reminds nonprofit leaders that effectiveness, not simply cost-cutting, must remain at the heart of their decision-making.

More information: Qiaozhen Liu et al, The Financial Implications of Flexible Labor Use in Nonprofit Organizations, Nonprofit Management and Leadership. DOI: 10.1002/nml.70002

Journal information: Nonprofit Management and Leadership Provided by University of Kansas

Breakthrough research shows how developing nations can grow their economies without worsening pollution

Leave a Reply

Balancing environmental sustainability with economic development remains one of the defining challenges of the twenty-first century. For many developing nations, the dilemma is particularly acute: the urgent task of reducing poverty often collides with the accelerating degradation of natural ecosystems. A persistent belief holds that such countries must choose between prosperity and environmental protection, a dilemma complicated further by their dependence on foreign aid.

Although the United Nations Sustainable Development Goals (SDGs) outline a global vision for achieving progress on both fronts, what has long been missing is a robust theoretical framework to show how developing nations might practically reconcile these objectives. In particular, scholars and policymakers have lacked clear guidance on how international aid could be strategically deployed to foster both economic advancement and environmental responsibility.

A recent study, published online in The Singapore Economic Review on 6 August 2025, addresses precisely this gap. The research was led by Professor Hideo Noda from the Faculty of Business Administration at Tokyo University of Science (TUS), alongside co-author Ms. Fengqi Fang, a doctoral candidate at the Graduate School of Business Administration, TUS. Their work builds upon a 2021 study by Noda and Kano, which established that zero-emission policies can align with long-term growth in innovation-driven, developed economies. “The earlier model assumed advanced economies with knowledge-based systems already in place,” Prof. Noda notes. “Our goal was to extend this logic to developing countries where public finances depend heavily on official development assistance.”

To tackle this question, the team developed two contrasting economic growth models: the public goods model and the congestion model. The first assumes that public services—such as infrastructure, healthcare, or education—are universally accessible without competition. The second, more restrictive model recognises that as populations expand, the effectiveness of these services may diminish due to congestion effects. By comparing the two approaches, the researchers could test how different structural conditions shape the prospects for achieving both clean environments and expanding economies.

Through these models, the team investigated under what circumstances a government could implement a ‘zero-emissions policy’, meaning a framework that reduces net pollution to zero, while still sustaining economic growth. The simulations revealed that both models confirm the theoretical compatibility of zero-emissions policies with sustainable growth, even in aid-dependent economies. However, they identified a critical precondition: per-capita GDP must rise above a minimum threshold before such policies become viable. The researchers dubbed this benchmark the “kindergarten rule level of pollution abatement”—a nod to the basic childhood lesson that those who create a mess should clean it up themselves.

The precise level of this threshold is not uniform. Still, it varies with several factors: the extent of clean technologies available within the country, its demographic size, the volume of foreign aid received, and the proportion of that aid explicitly earmarked for environmental purposes. Interestingly, the models suggest that nations with more advanced clean technologies or larger populations can reach zero-emissions status at comparatively lower income levels. Moreover, the study demonstrates that well-designed tax policies can accelerate economic growth to the point where the income threshold is reached in a finite time. These insights were reinforced through numerical simulations grounded in real-world parameters.

The implications are significant. The findings highlight the catalytic role that foreign aid can play when channelled strategically into environmental programmes and clean-technology investments. For developing nations, this means that aid should be directed first and foremost toward cleaner production systems. For donor countries, the results underscore the value of dedicating a greater proportion of assistance to environmental and technological initiatives. In doing so, both donors and recipients can hasten the transition to a development pathway where prosperity and ecological responsibility are no longer viewed as incompatible, but as mutually reinforcing goals.

More information: Hideo Noda et al, Zero-emissions Policy and Sustainable Economic Growth in Developing Countries Receiving Foreign Aid, The Singapore Economic Review. DOI: 10.1142/S0217590825500304

Journal information: The Singapore Economic Review Provided by Tokyo University of Science

AI for the Planet: Building Trustworthy Systems to Record Emissions

Leave a Reply

A research team at LMU has created a more reliable way of extracting data from corporate sustainability reports, an area where accuracy has long been a challenge. Under EU law, large companies must disclose their greenhouse gas (GHG) emissions, yet these figures are typically buried in lengthy PDF sustainability reports. Manually retrieving the information is both slow and error-prone. While many groups have turned to automation—particularly Large Language Models (LLMs), which can scan text and provide answers—the risks of measurement error remain significant. As project coordinator, Dr. Malte Schierholz of LMU’s Social Data Science and AI Lab (SODA Lab) warns, “It’s easy to fully trust the LLM’s output and overlook frequent errors in automatic extraction.”

To address this problem, the Greenhouse Gas Insights and Sustainability Tracking (GIST) group set out to establish a reliable benchmark for emissions data collection. Their efforts have culminated in a gold-standard dataset, recently published in Scientific Data, which is designed to serve as a reference point for evaluating automated approaches. Drawing on sustainability reports from firms listed in the MSCI World Small Cap index and the German DAX, the researchers undertook what seemed like a simple task: converting reported GHG values from PDFs into a structured table. Yet, as Schierholz notes, the process quickly revealed unexpected layers of complexity.

Developing the dataset required a meticulous, multi-stage process. Sustainable finance specialists from LMU and the Deutsche Bundesbank collaborated with methodological experts to define clear annotation rules, refine extraction procedures, and conduct multiple rounds of verification. Expert discussion groups were convened to resolve ambiguities, ensuring that the resulting dataset could be trusted across company comparisons. Jacob Beck, who coordinated the annotation process, emphasised the need for strict protocols and repeated feedback loops: without them, the integrity of the dataset would have been compromised.

The challenges the team encountered highlighted broader shortcomings in corporate reporting. According to Dr. Andreas Dimmelmeier, a sustainable finance researcher with the GreenDIA consortium, many of the difficulties were rooted not just in inconsistent reporting protocols, but in incomplete or missing disclosures. In fact, about half of the sampled reports contained no usable GHG data at all. Where emissions were disclosed, they were usually limited to direct emissions and energy-related indirect emissions. More comprehensive reporting—particularly on supply chains, travel, and transport—was far less common, underlining persistent transparency gaps.

By releasing the dataset alongside scripts and supporting materials, the GIST group has provided a resource that is both transparent and methodologically rigorous. It makes explicit the assumptions and decisions involved in annotation, enabling fairer comparisons of automated methods and more transparent communication of uncertainty. In doing so, it offers researchers and practitioners a more solid foundation for monitoring corporate sustainability claims. The hope is that this benchmark will contribute to more honest measurement of progress, and in time, help close the critical data gaps that stand in the way of achieving net-zero goals.

More information: Malte Schierholz et al, Addressing data gaps in sustainability reporting: A benchmark dataset for greenhouse gas emission extraction, Scientific Data. DOI: 10.1038/s41597-025-05664-8

Journal information: Scientific Data Provided by Ludwig-Maximilians-Universität München

Younger policyholders more likely to justify insurance fraud

Leave a Reply

A new study from the University of Georgia has found that adults under the age of 34 are significantly more willing to commit insurance fraud than their older counterparts. The research suggests that youth not only have fewer reservations about deceiving companies or adjusters to gain a financial advantage, but many may also fail to recognise that their actions amount to a crime. For younger generations, bending the truth on an insurance application or claim can feel like a clever workaround rather than a punishable offence.

Brenda Cude, professor emerita in the College of Family and Consumer Sciences at UGA and lead author of the study, explained that the adversarial relationship many young people feel toward insurers may fuel this behaviour. “If you’re pushed into a position of thinking you need to fight, maybe that pushes people into actions they wouldn’t otherwise consider,” she said. “And when people don’t realise their actions are technically illegal, they can be blindsided by the serious consequences that follow.”

The study relied on data from the Coalition Against Insurance Fraud, which surveyed nearly 1,500 adults about their attitudes and behaviours around insurance claims. Respondents were asked whether they would consider exaggerating damages after a car accident, omitting or falsifying information on an application to secure lower premiums, or helping a medical provider bill for treatments never received. They were also asked if they knew of anyone who had committed such acts, revealing how widespread these attitudes may be.

The results showed a stark generational divide. Two out of five respondents aged 25 to 34 said they were unbothered by the idea of engaging in insurance fraud under certain circumstances. Many considered such acts to be clever money-saving strategies or a way to help friends in need. Cude pointed to one typical example: reporting that a car is parked at a parent’s suburban home rather than in a city centre. For the policyholder, it may seem like a harmless detail, but it constitutes fraud in the eyes of insurers and regulators.

In contrast, tolerance for fraud was far lower among older adults. Only about 5% of respondents aged 55 and over indicated that they would be comfortable with deceptive practices. According to Cude, this contrast may reflect ethical differences across generations. Older people may draw on a firmer moral compass, while younger adults operate under a more situational code of ethics. For millennials and members of Generation Z, fraudulent behaviour only becomes objectionable when it carries immediate, severe, or emotionally distressing consequences.

Interestingly, dislike of insurers was universal across the survey. Respondents of all ages expressed frustration with insurance companies, often viewing them as impersonal or unfair. Yet this generalised disdain did not predict fraudulent behaviour. Instead, the researchers argued, younger people’s relative ignorance of what qualifies as fraud may explain their willingness to commit it. Many do not understand how insurers calculate risks, why specific claims are denied, or how fraudulent activity affects the broader pool of policyholders.

For Cude, the study highlights the need for education as much as enforcement. She suggested that younger generations would benefit from clearer information about what constitutes legitimate claims and what crosses the line into fraud. “We need to think more about how to approach younger folks in terms of insurance fraud,” she said. “Part of that solution might be experience, but part of it is also education. People don’t really understand their insurance very well, or the difference between a legitimate practice and one that could have major consequences.”

More information: Brenda Cude et al, Factors That Influence Willingness to Commit Insurance Fraud, Journal of Consumer Affairs. DOI: 10.1111/joca.70015

Journal information: Journal of Consumer Affairs Provided by University of Georgia

Leadership Abroad: How Immigrant CEOs Curb Corporate Misconduct Back Home

Leave a Reply

A recent study published in the Strategic Management Journal demonstrates that the appointment of an immigrant CEO can significantly reduce the occurrence of corporate social irresponsibility (CSI) in their countries of origin. The research, led by Juan Bu, Associate Professor of International Business and Strategy at Indiana University Bloomington, suggests that the personal ties and cultural attachments of immigrant leaders can meaningfully shape how multinational enterprises (MNEs) conduct themselves abroad, particularly in contexts where firms might otherwise engage in questionable practices such as environmental pollution, labour exploitation, or human rights violations.

Previous scholarship has largely explained cross-national differences in CSI by examining macro-level factors such as government regulation, institutional quality, and cultural values. This study, however, adopts a micro-level perspective, investigating whether the characteristics of individual leaders—specifically, their immigrant status—alter the likelihood of corporate misconduct. By redirecting attention from national systems to the personal experiences of CEOs, the research opens a new avenue for understanding how leadership shapes global corporate behaviour.

“CEOs are central drivers of corporate social performance,” Bu notes. “With globalisation and the rising prominence of immigrant leaders—such as Elon Musk at Tesla and Sundar Pichai at Google—it is crucial to understand how their backgrounds influence corporate conduct internationally. Yet until this study, very little was known about the link between immigrant identities and firms’ social practices abroad.” Bu and his co-authors, Stephanie Lu Wang, Yejee Lee, and Dan Li, argue that immigrant CEOs often preserve strong emotional ties, cultural familiarity, and personal networks within their countries of origin. These enduring connections may reduce the willingness of companies to pursue irresponsible practices in those markets, while also lessening negative publicity.

To test these claims, the researchers assembled a dataset covering U.S.-based multinational corporations listed in the S&P 500 between 2007 and 2020. CEO biographical details were gathered from public sources such as Wikipedia and corporate websites. At the same time, information on CSI incidents was drawn from RepRisk, a global database tracking environmental, social, and governance (ESG) risks. Using a robust statistical matching method, the authors compared 76 firms led by immigrant CEOs with 220 similar firms led by non-immigrant CEOs, allowing for a rigorous evaluation of the role of immigrant leadership.

The results were striking. In the four years following the appointment of an immigrant CEO, CSI incidents in the leader’s home country fell by more than half—a 54.25 per cent decline. By contrast, firms without immigrant CEOs recorded a 6.36 per cent increase in incidents during the same period. The effect was particularly pronounced in cases where the CEO had immigrated as an adult, when the company already had a strong sustainability reputation, and when the home country operated with lower levels of press freedom. As co-author Yejee Lee, now Assistant Professor at Auburn University, explains: “The convergence of these factors illustrates how immigrant CEOs can serve as especially powerful agents of restraint in contexts where oversight is weaker and reputational risks are more acute.”

These findings carry important implications for both corporate strategy and public policy. Firms reveal that leadership selection can be a tool for not only financial growth but also for cultivating responsible global practices and managing reputational risks. For governments, the results highlight the importance of transparency and media freedom in curbing corporate misconduct, while also pointing to the role that executives’ personal attachments can play in improving outcomes. As Wang, Associate Professor of International Business and Strategy, observes: “Firms can use these insights to choose leaders who bring both managerial skill and valuable cross-border social capital, while policymakers can create institutional conditions that amplify these positive effects.”

The study ultimately advances a more nuanced understanding of global corporate behaviour by moving beyond structural determinants and focusing on individual agency. As co-author Dan Li, Professor of International Business, stresses, local governments can strengthen executives’ emotional ties to their home societies, thereby helping prevent misconduct before it arises. In Bu’s words: “Our findings show that who leads a multinational company matters—not just for profits, but for its wider footprint in the world. Leadership is not only about strategy and performance; it is also about responsibility and the capacity to influence corporate conduct across borders.”

More information: Juan Bu et al, Not in my homeland: Immigrant CEOs and the geography of corporate social irresponsibility, Strategic Management Journal. DOI: 10.1002/smj.3702

Journal information: Strategic Management Journal Provided by Strategic Management Society