Author Archives: support

Why the busiest workplace can feel like the most isolating place of all

A sweeping new scholarly review brings much-needed clarity to what many employees quietly experience each day: a persistent sense of loneliness at work. Published in the Journal of Management, the paper draws together decades of academic inquiry to examine why modern workplaces, despite being busy and socially dense, can still leave people feeling profoundly disconnected. By analysing 233 empirical studies, researchers from Portland State University map the organisational conditions that fuel this problem and outline realistic, evidence-based ways for employers and workers alike to rebuild meaningful connections.

Central to the review is a crucial distinction that is often overlooked in everyday conversations about work culture. Loneliness, the authors stress, is not the same as social isolation. Isolation refers to an objective lack of contact with others, whereas loneliness is a subjective emotional state rooted in the perception that one’s relationships are inadequate or unsatisfying. This means an employee can be surrounded by colleagues, meetings, and digital messages, yet still feel unseen, unsupported, and emotionally alone. In many contemporary offices, physical proximity has increased while genuine relational depth has quietly eroded.

The researchers argue that this disconnect should not be framed as an individual failing or a private emotional weakness. Instead, they position loneliness as a systemic organisational issue with clear implications for performance, health, and long-term sustainability. As Berrin Erdogan, a professor of management involved in the work, explains, the strong link between workplace design and loneliness means businesses have both the responsibility and the opportunity to address the issue directly. By rethinking how jobs are structured and how people relate to one another at work, organisations can actively promote relational wellbeing rather than leaving it to chance.

One of the most compelling insights in the review likens loneliness to hunger. In its temporary form, loneliness serves a useful biological purpose, signalling a need for social connection in much the same way hunger signals a need for food. This mild discomfort can motivate people to reach out, collaborate, or strengthen bonds. Problems arise, however, when loneliness becomes chronic. Prolonged feelings of disconnection are associated with poorer emotional regulation, reduced cognitive functioning, and declining mental health, all of which can undermine both individual wellbeing and organisational effectiveness.

The review also highlights what the authors describe as an employment paradox. On the whole, being employed tends to protect against loneliness, with unemployed or retired individuals reporting higher average levels of disconnection. Yet not all jobs offer this protective effect. Roles characterised by high pressure, limited autonomy, and weak managerial support significantly increase the risk of loneliness. Particularly striking is the finding that loneliness can spread through leadership: managers who feel isolated are often less effective and, in turn, negatively influence the wellbeing of their teams, creating a ripple effect throughout the organisation.

Despite the scale of the problem, the authors strike a cautiously optimistic tone when it comes to solutions. They note that work has the potential to be either a refuge from loneliness or a primary source of it, depending on how it is organised. Promising interventions include organisational investment in stress-management training, opportunities to build social and interpersonal skills, and cultures that value psychological safety. On an individual level, practices such as mindfulness and engagement in volunteering have shown potential in alleviating chronic loneliness. Together, these findings suggest that workplace loneliness is neither inevitable nor irreversible, but something that can be addressed through thoughtful, deliberate action.

More information: Julie M. McCarthy et al, All the Lonely People: An Integrated Review and Research Agenda on Work and Loneliness, Journal of Management. DOI: 10.1177/01492063241313320

Journal information: Journal of Management Provided by Portland State University

How greenwashing fosters misleading stability for businesses

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Companies that engage in greenwashing to present themselves as more attractive to investors do not achieve lasting financial stability over time, according to a recent study from Murdoch University. The research highlights how firms that exaggerate their environmental credentials may benefit briefly from improved market perceptions, but these gains are temporary and ultimately fragile. As sustainability becomes more central to investment decisions, misleading claims increasingly expose companies to long-term financial risk rather than protecting them from it.

In recent years, Environmental, Social and Governance (ESG) investing has expanded rapidly across global markets. Investors and lenders now routinely consider a firm’s sustainability performance when allocating capital, using ESG scores as a proxy for risk, responsibility, and resilience. Strong ESG ratings are often interpreted as indicators of good management and lower exposure to regulatory or environmental shocks. However, the study stresses that these scores do not always accurately reflect a company’s real environmental impact, particularly when reporting is selective or strategically framed.

Greenwashing is defined in the research as the gap between what companies claim about their environmental performance and how they actually behave. In practical terms, it refers to firms presenting themselves as environmentally responsible without making meaningful reductions to emissions or operational practices. Companies adopt this approach to enhance their reputation, appeal to ESG-focused investors, and appear safer or more ethical, all while avoiding the costs associated with genuine environmental transformation.

The study examined Australian companies over the period from 2014 to 2023 to assess how greenwashing influences financial stability and market risk. To do this, the researchers developed a quantitative framework that directly compared firms’ ESG scores with their reported carbon emissions. This method allowed them to identify instances where sustainability claims were inflated relative to actual environmental performance. The researchers then analysed how these discrepancies affected stock market volatility as a measure of corporate stability.

The findings show that greenwashing can create an illusion of stability in the short term. Firms with exaggerated ESG credentials often appear less risky, as investors respond positively to strong sustainability signals. This market optimism can temporarily reduce volatility and support share prices. However, the effect does not last. Over time, as inconsistencies between ESG narratives and absolute emissions become clearer, investor confidence weakens. The market adjusts its earlier assumptions, and the stabilising influence of greenwashing fades.

The research also found that greenwashing was a persistent pattern among Australian firms between 2014 and 2022, with ESG scores frequently overstating environmental performance. A noticeable decline emerged in 2023, likely driven by stronger regulatory scrutiny, anticipated climate-risk disclosure requirements, and heightened investor awareness. The study concludes that while greenwashing may offer short-term credibility, it undermines accurate risk pricing and long-term stability. For regulators, investors, and companies alike, the message is clear: transparent reporting and genuine emissions reductions are far more effective for managing risk and building sustainable financial resilience.

More information: Rahma Mirza et al, False Stability? How Greenwashing Shapes Firm Risk in the Short and Long Run, Journal of Risk and Financial Management. DOI: 10.3390/jrfm18120691

Journal information: Journal of Risk and Financial Management Provided by Murdoch University

Is Workplace Gender Equality Losing Momentum?

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New research published in The Economic and Labour Relations Review shows that gender equality at work remains far from achieved, with women around the world still facing unsafe, undervalued and insecure working conditions. The themed collection, produced by researchers from UNSW Sydney and UNSW Canberra, is described by its guest editors as a necessary stocktake of how paid and unpaid work continues to shape women’s wellbeing, safety and economic power.

The editors argue that progress on gender equality has been slower and more fragile than expected. While women’s participation in work has increased in many countries, this has not translated into equal outcomes. Instead, many women continue to carry a disproportionate share of unpaid labour, face insecure employment, and experience violence that limits their ability to work and thrive. The collection calls for a more honest assessment of where progress has stalled and where key goals have not been met.

These findings come at a time of rapid global change. Artificial intelligence, climate change, pandemics, conflict and political backlash against diversity and inclusion policies are all reshaping labour markets. According to the editors, these pressures reveal how easily gains in gender equality can be reversed, particularly when economic policies weaken protections and shift risk onto individuals and households. Crises rarely affect everyone equally, and women are often left absorbing unpaid work and insecurity when systems fail.

Several studies in the collection examine climate change, showing that women in developing regions face heavier workloads, reduced income and greater exposure to violence as environmental shocks intensify. Crucially, women are often excluded from decisions about how work and resources are reorganised in response to these crises. The research stresses that climate change is not only an environmental issue but one that deeply reshapes work, power and protection in gendered ways.

The collection also explores the rapid expansion of artificial intelligence. While AI could reduce repetitive tasks and improve flexibility, the research warns that without deliberate safeguards, it may further devalue or replace work done mainly by women. Women are more likely than men to be employed in roles vulnerable to automation, and many essential forms of care and support work remain poorly paid or unpaid, despite being critical to economic and social functioning.

Gendered violence emerges as a persistent barrier to women’s workforce participation. One Australian study highlighted in the issue finds that universal paid family and domestic violence leave benefits both workers and employers, showing how evidence-based policy can improve safety and economic outcomes. The editors argue that recognising the impact of violence on work is not optional but fundamental to any serious approach to gender equality.

Overall, the collection challenges the idea that progress is inevitable or permanent. It shows how decades of gains can be undone quickly when political support weakens and crises intensify. The research calls for a broader rethink of how work is organised, valued and protected, emphasising that gender equality is central to how economies function, and societies endure. While some positive signs exist, such as recent efforts to revalue care work, the message is clear: much more needs to be done, and work alone will not deliver the equality many had hoped for.

More information: Yuvisthi Naidoo et al, Gender and Work Part A: Investigating contexts, impacts, and effects, The Economic and Labour Relations Review. DOI: 10.1017/elr.2025.10047

Journal information: The Economic and Labour Relations Review Provided by University of New South Wales

Cross-Border Mergers and Acquisitions and Their Role in Anticipating Economic Growth and Currency Performance

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In a period marked by heightened economic uncertainty and recurring episodes of financial instability, cross-border investment activity offers valuable insight into what may lie ahead for economic growth and currency movements. Rather than reacting solely to traditional macroeconomic indicators, investors and policymakers may gain earlier and more nuanced signals by observing how firms deploy capital across national borders.

This conclusion emerges from research by Steven Riddiough, an associate professor of finance at the University of Toronto Scarborough and the Rotman School of Management, together with Huizhong Zhang of Monash University. Drawing on nearly twenty-five years of data covering cross-border mergers and acquisitions among more than forty developed and emerging economies, the researchers identify a systematic relationship between changes in foreign investment activity and subsequent shifts in both economic growth and exchange rates.

Their findings are particularly relevant for global investors and for those responsible for economic policy, where accurate expectations about future conditions are essential. While standard economic theory often suggests that exchange rates should reflect underlying fundamentals such as growth differentials, productivity, or inflation, empirical studies have struggled to demonstrate a strong and consistent link in practice. This research helps to bridge that gap by pointing to a different source of information: the investment decisions of firms themselves.

Cross-border merger and acquisition announcements, the authors argue, function as a clear and observable signal of changing expectations about economic fundamentals. Such deals reveal firm-level, or “microeconomic”, information that is typically private and difficult for markets to observe directly. Companies contemplating significant international investments are operating close to real economic conditions within their industries, allowing them to form informed views about future demand, profitability, and growth. When these firms commit capital across borders, that information becomes public, influencing the expectations of other market participants and, ultimately, currency values.

This micro-level perspective contrasts sharply with the macroeconomic data most commonly used to assess future growth. Indicators such as GDP releases, labour market statistics, inflation, or interest rates provide economy-wide snapshots, but they are often backwards-looking and released with a delay. By comparison, firms operate at the “coal face” of the economy, offering a more immediate sense of emerging trends. Their investment choices, therefore, contain forward-looking information that markets can incorporate rapidly.

Empirically, the study finds that massive investment outflows from a country are followed by a depreciation of that country’s currency in the subsequent month, along with an approximate one per cent decline in economic growth over the following five years. Conversely, countries receiving unusually high levels of foreign investment experience around a one per cent increase in growth over a similar horizon, alongside an appreciation in their currency shortly after the investment surge.

The analysis focuses on aggregate trends in investment flows rather than the outcomes of individual deals, with results most informative for domestic economic conditions. In particular, outward investment appears more revealing than inward flows. Elevated international acquisition activity by domestic firms tends to signal future economic weakness at home, while lower-than-usual outward investment is associated with stronger subsequent domestic performance.

More information: Steven Riddiough et al, Cross-Border M&A Flows, Economic Growth, and Foreign Exchange Rates, Review of Financial Studies. DOI: 10.1093/rfs/hhaf109

Journal information: Review of Financial Studies Provided by University of Toronto, Rotman School of Management

What History Reveals About the Dollar and Expanding Deficits

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It is widely recognised that the United States has been living beyond its means. Over the past quarter-century, national debt as a share of gross domestic product has nearly tripled, reaching about 98%, according to official estimates. Projections suggest that figure could climb to roughly 166% by the middle of the century. Such levels would generally be difficult to sustain, yet the U.S. government has continued to borrow at scale, helped by the enduring global appetite for its debt. In 2023 alone, the Treasury sold an estimated $28 trillion in securities.

That willingness to lend rests heavily on the dominance of the U.S. dollar. Dollar-denominated assets account for more than half of global foreign-exchange reserves, and the dollar is used in the vast majority of international currency transactions. New research by finance scholar Mindy Xiaolan argues that this privileged position underpins America’s exceptional fiscal capacity — its ability to raise funds far beyond what its budget fundamentals might otherwise support.

Her work examines what could happen if that privilege were ever weakened. If another currency displaced the dollar as the world’s primary reserve asset, U.S. government borrowing could become more constrained. Bondholders might suffer significant losses as the market value of Treasury securities fell, while the federal government could be forced into painful fiscal adjustments. As Xiaolan notes, when a country’s finances deteriorate at the same time as its currency loses global status, its ability to borrow cheaply tends to shrink, often at the expense of investors.

Whether the United States will face such consequences remains uncertain, but history provides sobering precedents. Xiaolan and her co-authors compare America’s current trajectory with that of earlier monetary powers whose currencies once dominated world trade. In the seventeenth and eighteenth centuries, the Dutch florin held that role, followed by the British pound through the nineteenth century and into the Second World War. In each case, the leading currency belonged to the world’s dominant economy of the era.

While their influence lasted, investors treated Dutch and British government bonds as exceptionally safe, paying a noticeable premium relative to other sovereign debt. That demand allowed both governments to borrow heavily, often to finance wars, pushing debt levels far beyond what could be justified by ordinary budget surpluses. Dutch debt exceeded 200% of GDP during the Napoleonic period, while Britain’s surpassed 130% at the end of the Second World War.

When those currencies lost their pre-eminent status, the adjustment was severe. Bond prices collapsed, inflicting considerable losses on investors, and governments were forced to abandon deficit spending in favour of sustained surpluses. The transition was economically painful and politically challenging, underscoring the risks tied to overreliance on monetary dominance.

Xiaolan argues that the United States shows signs of following a similar path. Analysing the federal balance sheet as if it were a private firm, the researchers estimate that expected future revenues cover only a fraction of outstanding debt. That gap has widened sharply since the global financial crisis and the pandemic, even as borrowing costs remained unusually low thanks to what she describes as America’s “exorbitant privilege”.

For now, global investors continue to tolerate this imbalance, though there are hints of fading confidence. The market value of U.S. government debt has fallen notably since 2020, suggesting investors are demanding greater compensation for risk. If that trend accelerates, the U.S. may face higher financing costs and renewed pressure to run fiscal surpluses — something it has not done for decades.

The dollar’s saving grace, at least for the moment, is the absence of a clear rival. Potential challengers face economic and political constraints of their own. Yet history cautions against complacency. Monetary privilege has never proved permanent, and the past suggests that adjustment, when it comes, can be abrupt.

More information: Mindy Xiaolan et al, Exorbitant Privilege Gained and Lost: Fiscal Implications, Journal of Political Economy. DOI: 10.1086/738149

Journal information: Journal of Political Economy Provided by University of Texas at Austin

How inward foreign direct investment shapes patterns of new venture creation

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Inward foreign direct investment (IFDI) is widely regarded as an essential driver of local economic development, particularly through its potential to stimulate entrepreneurial activity. Existing research has examined the effects of IFDI extensively, but much of this work has focused on established firms, analysing outcomes such as survival, productivity, and innovation. Only more recently have scholars turned their attention to entrepreneurship and new venture creation. However, most of these studies rely on country-level data and consequently report mixed and sometimes contradictory findings, limiting our understanding of how IFDI shapes entrepreneurial entry.

This limitation is especially problematic in the context of large emerging economies, where substantial variation exists within national borders. Countries such as China and India display pronounced regional and industrial heterogeneity, with sharp differences in institutional quality, market development, and competitive intensity. National averages, therefore, risk masking important local dynamics. These characteristics point to a clear gap in the literature and underline the need for more fine-grained, subnational analyses that can capture how IFDI interacts with local contexts to influence new venture creation.

Addressing this gap, a recent study by an international research team led by Assistant Professor Lingli Luo of Zhejiang University investigates how IFDI shapes patterns of new venture creation at the industry–regional level in China. The team, which includes scholars from Waseda University and the Chinese University of Hong Kong, adopts a more nuanced approach that moves beyond aggregate national effects. Their study, published in the Journal of Business Venturing, explores the multiple channels through which IFDI affects entrepreneurial entry across different industries and regions.

The study draws on learning and competition theories to argue that IFDI within a given industry and region has a nonlinear, inverted U-shaped effect on new venture creation. At low to moderate levels, IFDI encourages entrepreneurship by offering learning opportunities, such as exposure to advanced technologies and managerial practices. As IFDI intensifies, however, competitive pressures increase, raising entry barriers and discouraging prospective entrepreneurs. This dual influence helps reconcile previously inconsistent findings in the literature.

Beyond these within-boundary effects, the research also identifies positive spillovers across regional and industrial boundaries. IFDI in the same industry in neighbouring regions promotes new venture creation through imitation-based learning, while IFDI in related sectors within the same region fosters adaptation-based learning. Significantly, these effects are strengthened in regions with supportive institutional environments, particularly those characterised by a well-developed non-state economy.

Empirically, the study analyses comprehensive firm-level data from the China National Enterprise Credit Information Publicity System covering the period from 2013 to 2023. The results strongly support the proposed theoretical arguments. Overall, the findings offer clear policy implications, suggesting that local governments should calibrate IFDI inflows carefully. By maintaining moderate levels of foreign investment and strengthening local institutions, policymakers can maximise learning benefits while avoiding excessive competitive pressures that may hinder entrepreneurial entry.

More information: Lingli Luo et al, Beyond direct impact: Exploring inward FDI’s multifaceted effects on new venture creation, Journal of Business Venturing. DOI: 10.1016/j.jbusvent.2025.106562

Journal information: Journal of Business Venturing Provided by Waseda University

Ticking the Right Box: How Time-Oriented Marketing Shapes What People Buy

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Which feels further away: the year 2016, or ten years ago? And which seems closer—2036, or ten years from now? Although these expressions describe the same points in time, they do not feel the same. New research shows that the way time is framed, either as a calendar year or as a length of time, can subtly but powerfully shape how people experience the past and future, with real consequences for consumer decisions.

The research demonstrates that time-based language influences how much value people attach to products and experiences. This matters because references to time are everywhere in everyday life and marketing. Consider a bottle of whisky described as “10 years old” versus one distilled in 2015 and bottled in 2025. While both indicate the same age, consumers do not respond to them in the same way, and one framing can lead people to pay more than the other.

Similar language appears across many markets: five-year mortgages, 2020 model cars, second-hand items described as “bought two years ago,” vintage wines, or furniture ads promising “don’t pay until next year.” These descriptions might appear interchangeable, yet they can create distinct impressions. The research finds that when time is expressed as a length, such as “10 years old,” people tend to perceive it as longer than when the same duration is described using calendar years. This pattern is known as the “year-length effect.”

Whether this effect works in a seller’s favour depends on context. When age adds value, as it often does with whisky, wine, or heritage goods, framing time as a length leads to more favourable perceptions. When age reduces value, as with used or depreciating goods, framing time using years tends to work better. In other words, sellers benefit from making time feel longer when longevity matters, and shorter when newness is desirable.

To test these ideas, the researchers analysed real-world auction data and ran controlled experiments in which participants evaluated products and scenarios described using different time framings. The results were consistent. Whisky auctions showed that bottles described by age fetched prices around nine per cent higher. In contrast, sellers of used goods earned roughly 17 per cent more when they mentioned the purchase year rather than how old the item was.

The effect extends beyond marketing. The researchers argue that time framing can influence important decisions in areas such as retirement saving, responses to climate change, or medical choices. This happens because people perceive differences between large numbers as smaller than differences between small ones. Our mental number line is logarithmic: the jump from 2020 to 2021 feels smaller than the jump from one to two. Ultimately, there is no universally better way to frame time. What matters is whether it helps time feel nearer or further away, depending on the decision at hand.

More information: Deepak Sirwani et al, When ‘Year’ Feels near: How Year versus Length Framing Alters Time Perception and Consumer Decisions, Journal of Marketing Research. DOI: 10.1177/00222437251399115

Journal information: Journal of Marketing Research Provided by University of British Columbia

Electric vehicles could find an early foothold across Africa

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Africa’s vehicle fleet is expected to grow faster than anywhere else in the world, with the total number of vehicles projected to double by 2050. The critical question is therefore not whether mobility will increase, but how that growth will be managed. New research led by ETH Zurich and the Paul Scherrer Institute (PSI), in collaboration with partners from Makerere University, the University of Port Harcourt and Stellenbosch University, suggests that electric vehicles combined with solar-powered, off-grid charging systems could become economically viable in many African countries well before 2040.

For years, most models assumed that internal combustion engine vehicles would dominate African transport systems through mid-century. According to lead author Bessie Noll, a senior researcher at ETH Zurich, these assumptions overlook recent technological and economic shifts. The study, published in Nature Energy, shows that under certain conditions, electric mobility can be feasible far earlier than commonly expected.

A central focus of the research is vehicle charging, a significant challenge in regions where electricity grids are unreliable or absent. The researchers analysed 52 African countries and more than 2,000 locations, modelling scenarios in which electric vehicles are charged using dedicated solar installations paired with stationary batteries. These systems operate independently of the grid, reflecting realities on the ground in many parts of the continent.

Falling costs have been a decisive factor. Solar power and battery storage have become significantly cheaper in recent years, while a growing supply of affordable electric vehicles—particularly from Chinese manufacturers—has entered the market. Electric motorbikes and e-scooters are already exceptionally economical. The study found that a compact solar system can meet the needs of a small car travelling around 50 kilometres per day, with charging costs accounting for only a small share of total vehicle expenses. In many locations, switching to electric two-wheelers already makes strong financial sense.

The research also highlights Africa’s diversity. Countries such as Botswana and South Africa, where financing conditions are relatively stable, could see electric vehicles become competitive sooner. In contrast, nations with high borrowing costs and greater investment risk may experience a slower transition. As Noll stresses, Africa is not a single market, and the point at which e-mobility becomes attractive varies widely across countries.

When compared with vehicles powered by synthetic fuels, electric cars perform far better. Even under optimistic assumptions, synthetic fuels remain costly and are better suited to sectors such as aviation and heavy industry rather than passenger transport in Africa.

According to the researchers, the main obstacle to broader adoption is financing rather than technology. High interest rates increase the burden of the higher upfront costs associated with electric vehicles. Measures such as government guarantees, new financing models or international support could significantly accelerate adoption while creating new economic opportunities, including local assembly and service jobs.

A related study in Nature Sustainability highlights a further challenge: the impact on public finances. Fuel taxes currently generate substantial government revenue, particularly in low-income countries. As electric vehicles replace petrol and diesel cars, early tax reforms and international support will be needed to avoid budget shortfalls. Together, the studies show that e-mobility in Africa is achievable, but its success will depend on thoughtful, coordinated policy choices.

More information: Bessie Noll et al, Battery-electric passenger vehicles will be cost-effective across Africa well before 2040, Nature Energy. DOI: 10.1038/s41560-025-01955-x

Journal information: Nature Energy Provided by ETH Zurich

How Circular Economy Startups Are Opening New Paths in Resistant Markets

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Published in Business Strategy and the Environment, a recent study from the University of Eastern Finland offers a fresh perspective on how circular economy startups succeed in developing their businesses in markets where consumer demand for sustainable products is uncertain and institutional support is limited. Established industry players are slow to change. The research highlights how these startups create new opportunities by committing to reducing their environmental impact, engaging in experimentation through piloting and feedback-driven development, and building close, collaborative relationships with customers and partners.

The study places particular emphasis on the role of value-driven entrepreneurship in shaping markets. Traditionally, research on the circular economy has focused on technologies and business models, often overlooking the human and motivational dimensions of change. The researchers argue that sustainability-oriented entrepreneurs do more than adopt innovative models; they actively work to create opportunities in markets that do not yet align with the principles of circularity. This perspective shifts attention from structural conditions alone to the intentions, values, and actions of entrepreneurs themselves.

Drawing on 31 narrative interviews with startup founders, the study examines the early stages of venture creation, including learning processes and efforts to influence market norms. The findings suggest that circular entrepreneurship is not about identifying ready-made opportunities, but about engaging in continuous learning, interaction, and systemic change. Entrepreneurs are motivated by a desire to address perceived flaws in existing systems, using their ventures as vehicles for broader transformation rather than short-term gain.

Notably, the study finds that many circular economy entrepreneurs view large, traditional markets as opportunities rather than obstacles. While such markets are often resistant to change, their size and inefficiencies offer significant potential for impact. This mindset reflects a readiness to challenge established practices and adapt to uncertainty, demonstrating a willingness to work within imperfect conditions to reshape expectations and behaviours gradually.

The research identifies three key practices through which circular economy startups influence markets. First, a strong commitment to environmental impact provides a clear value base that guides strategic decisions. Second, experimentation through pilots and feedback-driven development enables startups to learn quickly and refine their offerings in response to real-world conditions. Third, close collaboration with customers and partners helps build legitimacy, trust, and shared ownership of new solutions. Together, these practices allow startups to co-create markets while navigating regulatory and competitive pressures.

Overall, the study shows that sustainable startups play a crucial role in accelerating the transition towards more circular and sustainable economic systems. Driven by strong personal values and long-term visions, these entrepreneurs challenge established norms and encourage customers to adopt more sustainable practices. In doing so, they act as important agents of change, demonstrating that even in resistant markets, meaningful transformation can begin with values, experimentation, and collaboration.

More information: Ville-Veikko Piispanen et al, Navigating Market Constraints: Sustainable Startups Driving Transformative Change Through Venture Creation, Business Strategy and the Environment. DOI: 10.1002/bse.70438

Journal information: Business Strategy and the Environment Provided by University of Eastern Finland

Study from ESMT Berlin Uncovers Key Startup Communication Insights

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A new study explains how entrepreneurs can gain support for their ideas from the many people in online audiences who never post comments. While most research focuses on direct interaction with active participants, this work shows that silent observers often matter more. These quiet audience members read discussions, form opinions, and ultimately decide whether an idea is worth supporting, even though they rarely speak up for themselves.

The research finds that the way entrepreneurs reply publicly to a small number of vocal commenters can strongly influence how the wider, silent audience reacts. Instead of simply answering questions narrowly or technically, entrepreneurs who respond more broadly tend to attract greater overall support. This is because their replies help more people in the audience see how the idea connects to their own interests or concerns.

The study introduces the idea of “discourse broadening”. This refers to how much an entrepreneur expands their public responses beyond a short back-and-forth with one commenter. Broader replies might touch on related topics, offer additional perspectives, or highlight broader implications of the idea. Rather than trying to persuade silent observers directly, entrepreneurs influence them indirectly by showing how inclusive, thoughtful, and relevant the conversation is.

To test this idea, the researcher analysed nearly 10,000 product launches by more than 8,000 entrepreneurial teams on Product Hunt. On this platform, new products and start-ups are presented to the public. The results show that discourse broadening can significantly increase support from silent audiences. This matters because, on most online platforms, silent observers make up the majority. Their collective reactions, such as upvotes, interest, or sharing, determine which ideas gain visibility and credibility.

However, the study also shows that broader is not always better. Audience support increases as responses become wider, but only up to a point. If replies are too narrow, they fail to engage people beyond the original commenter. If they are too wide-ranging, they can become confusing and weaken the main message. The most effective approach sits in the middle: broad enough to include others, but focused enough to remain clear.

What works best also depends on who the vocal commenters are. When these commenters resemble the wider audience, less broadening may be needed. When they represent only a small or specialised group, carefully widening the discussion becomes more important, as it helps other observers see where they fit into the conversation.

For founders and anyone communicating about new ventures online, the findings offer practical advice. Successful engagement is not just about responding politely or quickly. It is about using each public reply as a chance to speak to a more expansive room. In practice, this means acknowledging the commenter’s point. Briefly, adding one or two related angles that might interest others, such as how the product improves everyday use, delivers results, or has wider social value.

Overall, the study highlights how influence in online spaces often works indirectly. By managing visible conversations with a few outspoken individuals, entrepreneurs can shape how many silent observers understand and judge their ideas. This makes conversational strategy a key part of practical digital entrepreneurship.

More information: Jamie Seoyeon Song, Mobilizing the silent majority: Discourse broadening and audience support for entrepreneurial innovations, Strategic Management Journal. DOI: 10.1002/smj.70015

Journal information: Strategic Management Journal Provided by ESMT Berlin

How Family Governance Affects Merger and Acquisition Outcomes in Emerging Markets

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Mergers and acquisitions can fundamentally alter a firm’s future, shaping its growth, strategic direction, and long-term survival. For family-owned businesses, however, these decisions extend beyond financial calculations. They are closely linked to issues of control, family identity, and risk tolerance. Recent research by Luiz Ricardo Kabbach, clinical associate professor of management at the Indiana University Kelley School of Business, explores how family governance and ownership structures influence merger and acquisition decisions in emerging markets.

The study, The Role of Family Control and Ownership in M&A Decisions: Evidence from an Emerging Market, published in Research in International Business and Finance, examines why family-controlled firms often behave differently from non-family businesses when considering mergers and acquisitions. The findings show that family firms are generally more cautious about pursuing such transactions, mainly due to their desire to preserve control and minimise financial risk. However, this conservative approach is not uniform and varies depending on how governance within the family firm is structured.

Kabbach and his colleagues explain that family-controlled firms frequently prioritise the preservation of legacy, identity, and decision-making authority over potential financial gains. As a result, they are less likely than non-family firms to engage in mergers and acquisitions. Yet the study highlights that ownership structure plays a critical role in shaping these decisions, particularly through the distribution of voting rights and cash flow rights.

Voting rights determine the level of control a shareholder has over strategic decisions, often allowing families to maintain influence even when their economic ownership is limited. Cash flow rights, on the other hand, reflect the shareholders’ financial exposure to gains and losses. The research finds that higher family voting rights tend to encourage merger and acquisition activity, as strong control reduces fears of losing authority or diluting family identity. In contrast, higher cash flow rights increase financial exposure and loss aversion, making families more reluctant to pursue acquisitions perceived as risky.

The researchers focused their analysis on Brazil, an emerging market with a high prevalence of family-controlled firms and a business environment characterised by both growth opportunities and uncertainty. This context allowed them to examine how family governance operates under conditions of heightened risk. The study was conducted in collaboration with Mariana Martins Meirelles-de-Castro of Indiana University Bloomington and Aquiles Kalatzis of the University of São Paulo.

According to Kabbach, the findings help explain how family firms balance economic objectives with socioemotional considerations. The research sheds light on when families prioritise social attachment over financial performance and how governance structures can help manage this tension. By clarifying the role of ownership and control, the study contributes to a deeper understanding of strategic decision-making in family businesses.

Kabbach hopes the research encourages family firms to recognise governance as a key factor influencing both strategic choices and long-term continuity. Firms that endure across generations, he suggests, often adopt governance structures that promote collaboration between generations, allowing successors to lead while benefiting from the experience of their predecessors. While governance alone cannot guarantee success, it can play an essential role in mitigating risk and supporting informed decision-making, particularly in uncertain and rapidly evolving markets.

More information: Luiz Ricardo Kabbach et al, The role of family control and ownership in M&A decisions: Evidence from an emerging market, Research in International Business and Finance journal. DOI: 10.1016/j.ribaf.2025.103125

Journal information: Research in International Business and Finance journal Provided by Indiana University

How Pursuing Hobbies Outside Work Can Enhance Creativity Inside the Office

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As many people begin the New Year with resolutions to eat more healthily, exercise regularly or learn new skills, new research suggests that hobbies may offer benefits that extend beyond personal wellbeing. Rather than simply making life more enjoyable outside work, hobbies can also enhance creativity, engagement and a sense of meaning in the workplace.

A study by researchers from the University of East Anglia and Erasmus University Rotterdam examined the idea of “leisure crafting” — the intentional shaping of free time through goal-setting, learning and social connection. The researchers found that when people approach their hobbies in a more purposeful way, the positive effects can spill over into their working lives, particularly for older employees.

Published in the journal Human Relations, the study shows that giving people simple, practical guidance on how to develop through their hobbies can lead to noticeable improvements in how they feel and behave both at work and outside it. While it is already well established that hobbies support wellbeing, the findings suggest their value goes beyond relaxation or entertainment.

According to the researchers, hobbies that promote personal growth — rather than passive activities such as excessive screen time — are especially beneficial. By setting goals, learning new skills and connecting with others through leisure activities, individuals can feel more fulfilled and behave more creatively in their jobs.

The study involved nearly 200 working adults with an average age of 46. Participants were asked to take part in a short “leisure crafting” intervention, which began with watching a brief video. The video guided them to create a personal plan for engaging with a hobby in a more meaningful way. This included choosing activities that increased their sense of control, encouraged learning, and fostered social connection, such as sharing a hobby with others or seeking feedback.

Over five weeks, participants completed weekly surveys about how their plan was progressing, what worked well, and what they wanted to change. They were also asked about their emotions and behaviour in both their work and personal lives. Their responses were compared with those of a control group who did not watch the video or make a plan.

The results showed apparent differences. Those who took part in the leisure crafting intervention reported that their work felt more meaningful and worthwhile, and they also described behaving more creatively on the job. Participants aged over 61 additionally reported experiencing more positive emotions overall.

One striking finding was that leisure crafting appeared to have a more substantial effect on work outcomes than on personal life. The researchers suggest this may be because many participants were already reasonably satisfied outside work, while their working lives offered greater scope for improvement. This highlights the potential for activities outside work to play an essential role in improving workplace experiences.

The authors argue that organisations could benefit from recognising employees as whole individuals rather than focusing solely on job performance. Supporting personal growth outside work — for example, by allowing development funds to be used for hobbies or offering short leisure-focused development programmes — could ultimately benefit both employees and employers.

The study is one of the first to demonstrate that leisure crafting can be learned and applied by a mature working population. Its findings underline a simple but powerful message: what people do in their free time can help them become more fulfilled, creative and engaged at work.

More information: Paraskevas Petrou et al, The leisure crafting intervention: Effects on work and non-work outcomes and the moderating role of age, Human Relations. DOI: 10.1177/00187267251407641

Journal information: Human Relations Provided by University of East Anglia