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Beyond Connectivity: The Role of Digital Highways in Building Stronger Businesses

In today’s volatile and fast-changing business environment, resilience has become an indispensable quality for enterprises. The ability to absorb shocks and adapt effectively to crises determines not only survival but also long-term growth. As digital transformation accelerates across all sectors, the need to understand the drivers of resilience has become increasingly urgent. This research turns attention to a factor that is often underestimated: the contribution of network infrastructure, particularly broadband connectivity, to strengthening the adaptive capacity of firms and ensuring their long-term stability.

To investigate this, the study applies dynamic capabilities theory and employs a multi-period Difference-in-Differences (DID) model. The nationwide “Broadband China” initiative is used as a natural experiment, offering a rare opportunity to analyse the causal impact of improved digital infrastructure. This methodological framework allows for the exploration of how broadband expansion influences both the internal organisation of firms and their external market relationships. The scope is broad, covering multiple years and a wide range of firms that vary by size, technological intensity, and competitiveness, thereby offering robust insights across diverse business contexts.

The findings are compelling. Enhanced network infrastructure is shown to bolster enterprise resilience significantly, a conclusion supported by rigorous empirical testing. The research identifies two primary mechanisms underpinning this effect. First, broadband enables more profound digital transformation, allowing firms to integrate technology more fully into their processes and decision-making. Second, it facilitates the diversification of customer bases, reducing reliance on any single client and thereby spreading risk. These mechanisms together make firms better equipped to respond to crises and adapt to shifting market conditions.

Further analysis highlights that the positive effects of broadband investment are not evenly distributed but are most pronounced in specific contexts. Firms operating in highly competitive markets, those within high-tech industries, organisations facing heightened bankruptcy risks, and companies with relatively low levels of institutional investor ownership benefit disproportionately from improvements in network infrastructure. These findings underscore the capacity of digital infrastructure to serve as a levelling force, offering additional stability to firms most exposed to uncertainty.

Notably, the research establishes a strong positive correlation between resilience and overall business performance. More resilient enterprises not only survive shocks but also achieve better long-term outcomes. This result reinforces the strategic value of investing in digital infrastructure at both the firm and national levels. In an age of growing economic, technological, and geopolitical unpredictability, broadband connectivity is more than a tool of convenience—it is a foundation for safeguarding stability and competitiveness.

The practical implications are clear. For business leaders, prioritising investment in digital infrastructure and accelerating digital transformation can significantly strengthen preparedness for crises and improve long-term outcomes. For policymakers, the findings point to the importance of expanding broadband access and supporting innovative infrastructure initiatives, especially in sectors and firms with the greatest need. Together, these strategies form a data-driven roadmap for building resilience, enabling enterprises to withstand shocks and positioning economies for sustainable success in the digital age.

More information: Xiaobo Li et al, The impact of network infrastructure on firm resilience: evidence from a quasi-natural experiment from the “Broadband China” strategy, China Finance Review International. DOI: 10.1108/CFRI-10-2024-0661

Journal information: China Finance Review International Provided by Shanghai Jiao Tong University Journal Center

Virginia communities gain $90 million a year from coastal wetlands, research finds

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A new study led by William & Mary’s Batten School and the Virginia Institute of Marine Science (VIMS) has revealed that tidal marshes—both natural wetlands and engineered living shorelines—contribute approximately $90 million each year in economic value to communities across Virginia’s Middle Peninsula. This finding underscores the vital role of marsh ecosystems not only in sustaining biodiversity and coastal resilience but also in supporting the economic wellbeing of local populations.

The research, recently published in Nature-Based Solutions, was supported by a grant from the National Oceanic and Atmospheric Administration’s Chesapeake Bay Fisheries Research Program. By combining ecological field data, spatial modelling, economic valuation, and community surveys, the research team assessed both the current and projected benefits of marsh systems. The study’s economic assessments informed the development of SHORE-BET (Shoreline Benefit Estimation Tool), an online platform designed to help communities and landowners estimate the economic and ecological returns of marshes and shoreline restoration projects.

According to lead researcher Donna Bilkovic, professor and assistant director of the Center for Coastal Resources Management (CCRM) at the Batten School and VIMS, the project brings a comprehensive perspective to wetlands. “This study looks at wetlands from a number of angles and places measurable, research-informed values on the benefits they provide,” Bilkovic explained. “The resulting data forms the foundation of SHORE-BET, giving planners and property owners better tools to understand the full range of environmental and financial gains from shoreline conservation.”

The study highlighted that marshes and living shorelines provide an array of ecosystem services, including storm protection, nutrient removal, carbon storage, habitat for fish and wildlife, and recreational opportunities. Together, these contributions equate to around 3.3% of the Middle Peninsula’s annual GDP. Looking ahead, the researchers projected that if marshes are expanded and living shorelines are more widely adopted, the annual value of these services could rise significantly—potentially reaching $168 million by 2050.

The survey element of the study offered insight into how different groups perceive marsh benefits. Policymakers tended to emphasise storm risk reduction and broad ecological services, while residents, recreational users, and anglers also placed great value on recreation and fisheries. These findings reveal the diverse ways in which coastal communities connect to marsh ecosystems, reinforcing the argument for inclusive and locally informed coastal planning.

Living shorelines, which mimic many of the functions of natural wetlands, are increasingly seen as a cornerstone of coastal resiliency. They have proven effective in stabilising coastlines, mitigating erosion, and fostering biodiversity. In Virginia, their use is mandated for erosion-control projects in areas where conditions allow. The study projects that greater adoption could enhance or restore over 2,500 hectares of marshland, providing not only stronger natural defences against climate-related threats but also significant ecological and economic returns.

The introduction of SHORE-BET marks a step forward in evidence-based coastal management. The tool enables users to input site-specific information and generate calculations of ecological service values for marshes and living shoreline projects, with projections extending through 2050. “By combining data from field research with community perspectives, SHORE-BET ensures that shoreline planning reflects both science and stakeholder priorities,” Bilkovic concluded. “This integration of knowledge and practice could guide a shift towards watershed-scale planning that maximises shared benefits across Virginia’s coastal communities.”

More information: Donna Marie Bilkovic et al, Valuing present and future benefits provided by coastal wetlands and living shorelines, Nature-Based Solutions. DOI: 10.1016/j.nbsj.2025.100243

Journal information: Nature-Based Solutions Provided by Virginia Institute of Marine Science

Small exporters show resilience amid Ukraine’s wartime challenges

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Researchers have found that smaller Ukrainian exporters have developed a distinctive culture of resilience, enabling them to maintain operations amid war. A study published in the Global Strategy Journal revealed that these firms adapted quickly to sustain communication with their international partners, demonstrating the central importance of what the authors call relational capital—the trust, cooperation, and dialogue that underpin cross-border trade. This ability to foster strong relationships allowed exporters to continue doing business even as the war created extraordinary disruption.

The research was led by Oksana Kantaruk Pierre, an assistant professor at the Université de Lorraine’s ICN Business School in France, who explained that resilience was examined both as a process and a capability. The study highlighted three stages—anticipation, coping, and pre-adaptation—as critical points at which companies navigated a crisis. To capture these dynamics, Pierre and her team interviewed managers and CEOs from a broad spectrum of exporting firms, ranging from very small operations with only a few employees to enterprises employing over a thousand staff. Their industries included wood, pottery, textiles, IT, cosmetics, media, industrial equipment, decoration, and food products. Interviews were carried out in early 2023, one year after the full-scale invasion, with follow-ups in September 2024.

In recalling the months before the invasion, respondents noted that media warnings were widely known, but many still struggled to believe a full-scale war would erupt. Some foreign partners delayed orders or raised concerns, while others pressed ahead with a “business as usual” stance. For many exporters, detailed contingency plans seemed impractical; instead, they chose to adapt as events unfolded. When the invasion began, companies were suddenly faced with destroyed facilities, forced relocations, and severely disrupted logistics. Yet the study found that even under such pressure, firms responded with remarkable adaptability and determination to keep their businesses alive.

Central to this resilience was transparent and frequent communication with international partners. Exporters engaged in constant dialogue, reassuring clients of their commitment, renegotiating contracts, and adjusting deliveries and prices as conditions changed. Study coauthor Raluca Mogos Descotes observed that, regardless of location or industry, managers were intent on preserving both their companies and their export activities. In many cases, foreign partners responded with flexibility and support, sometimes even offering financial investment to help sustain operations. These relationships, grounded in mutual trust, enabled Ukrainian firms to continue trading despite closed borders and logistical obstacles.

The investigators emphasised that exporters face different resilience challenges compared to purely domestic firms, mainly because their survival depends on sustaining cross-border relationships. As José Pla-Barber of the University of Valencia noted, maintaining communication was the single most important task during the first weeks of the invasion. One CEO even recalled telling employees—many of whom were fleeing with their families or sheltering in basements—that while safety came first, it was vital to take a few minutes each day to update clients and assure them that the company was still in operation. This insistence on visible, ongoing communication became a critical anchor for survival.

By framing resilience in terms of anticipation, coping, and pre-adaptation, the study offers a new way to understand how small exporters endure prolonged crises. The authors suggest that this relational approach may serve as a model for other businesses navigating extreme disruption. While the war continues and full recovery remains distant, Pierre noted that some of the strategies developed during wartime are likely to have a lasting influence, shaping exporters’ practices well into the future.

More information: Oksana Kantaruk Pierre et al, Resilience in times of war: How Ukrainian exporting SMEs enhance relational factors with foreign partners, Global Strategy Journal. DOI: 10.1002/gsj.1523

Journal information: Global Strategy Journal Provided by Strategic Management Society

Energy costs disproportionately impact minority households, study shows

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Heating, cooling, and powering a home is rarely affordable, and new research reveals that some Americans are paying a far higher share of their income on energy than others. A national study co-authored by Associate Professor George Homsy at Binghamton University, State University of New York, highlights a troubling reality: minority communities, particularly Black Americans, face disproportionately higher energy costs compared to the broader population.

The study, published in Energy Research & Social Science, is the first to examine energy burden—the percentage of household income spent on essentials such as heating, lighting, cooking, and air conditioning—through the combined lenses of both race and income. Drawing on data from the U.S. Department of Energy and analysing 65,000 census tracts, the research found that the average American household devotes 3.2 per cent of income to energy bills. Yet in African American majority census tracts, families spend an average of 5.1 per cent, with Latin American households also experiencing slightly higher burdens.

This disparity has far-reaching consequences. For families already balancing tight budgets, an inflated energy bill is more than an inconvenience—it can mean choosing between paying for heat or buying medicine, between covering the electricity bill or affording nutritious food. Homsy emphasised that the disparity is not simply a reflection of lower income levels. “We often say that African Americans suffer more, but we often blame it just on income. And the reality is, there is something more there. It’s not just because they tend to be poor. There is something that’s putting them at a disadvantage,” he explained.

A closer look at housing sheds light on these disadvantages. Many minority households are located in older properties, which often lack insulation, rely on outdated appliances, and require greater energy to maintain. Compounding the issue, these homes are frequently rented rather than owned, leaving residents with little control over making upgrades that could reduce consumption. Without the ability to invest in energy efficiency, households remain locked into higher energy bills, reinforcing a cycle of financial strain.

Homsy noted that while other studies have explored energy burden, none have captured how race and income intersect to shape household experiences. A Black household with a middle-class salary, for example, may still encounter higher energy costs simply because of the condition or age of the housing stock in their neighbourhood. “All of these things combine to put extra burden on African Americans – that’s the bottom line of the paper,” he said.

For Homsy, the research has urgent policy implications. He called for targeted efforts to reduce inequities rooted in decades of housing discrimination and urban planning decisions that left minority communities at a disadvantage. He and a colleague are also studying how sustainability officials attempt to lower energy burdens for renters, a challenge given the limits of landlord-controlled properties. “It is harder to get to rental units where a lot of poor people live,” Homsy acknowledged. “We need to work harder to get into these communities of colour.”

More information: George Homsy et al, Energy burden: Exploring the intersection of race, income, and community characteristics across the United States, Energy Research & Social Science. DOI: 10.1016/j.erss.2025.104207

Journal information: Energy Research & Social Science Provided by Binghamton University

Study finds Medicare could cut $3.6 billion in costs without endangering seniors’ health

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The United States federal government’s Medicare programme, in partnership with older adults who share some out-of-pocket costs, currently spends an estimated $4.4 billion each year on medical services that provide little to no clinical benefit. A new study suggests that this spending not only fails to improve health outcomes but may also put patients at greater risk of harm. The analysis highlights a set of tests, scans, and procedures that are widely used despite strong evidence questioning their effectiveness.

The researchers focused on 47 services that prior studies have identified as low-value, meaning they rarely improve patient wellbeing in the populations to which they are often applied. They argue that reducing or eliminating the use of such interventions in patients who are unlikely to benefit would preserve scarce Medicare resources for treatments with real impact. By adopting a more targeted approach, policymakers could simultaneously protect patients and improve the efficiency of healthcare spending.

Among these services, five stand out for their outsized cost and lack of clinical justification. Concentrating reform efforts on these alone could save $2.6 billion annually for Medicare and its enrollees. All five have received a “D” rating from the U.S. Preventive Services Task Force (USPSTF), meaning the evidence shows they are either ineffective or pose greater risks than benefits. Crucially, under the Affordable Care Act, such a rating gives the Secretary of Health and Human Services the authority to withhold Medicare payment for these services.

The five procedures singled out are illustrative of the problem. They include screening all older adults for chronic obstructive pulmonary disease, testing symptom-free patients for bacteria in the urine, and prostate-specific antigen (PSA) screening in men over 70 with no relevant history. Also on the list are screening older adults with no symptoms for blockages in the carotid arteries and the use of electrocardiograms in those without any signs of heart rhythm disturbances. Each has become routine in some practices, yet the evidence shows that, in the absence of specific risk factors or symptoms, they provide no meaningful benefit.

Beyond these five, the study catalogues 42 additional services judged low-value by professional societies and research organisations. Seventeen of these, combined with three of the USPSTF “D” rated interventions, accounted for an astonishing 94% of all the low-value care identified in the study. This concentration underscores the potential of focusing on a relatively small number of procedures to make significant progress in reducing wasteful spending.

The work was led by health economist David D. Kim of the University of Chicago and primary care physician A. Mark Fendrick of the University of Michigan Medical School’s Center for Value-Based Insurance Design. Their study, published in JAMA Health Forum, aligns with ongoing federal initiatives to control the rising costs of Medicare. Kim noted that while some patients may still benefit from these services under specific circumstances, avoiding them in those who cannot benefit would yield substantial savings. He also emphasised that his team did not include downstream costs caused by low-value interventions, such as the unnecessary follow-up procedures triggered by PSA screening. In that case, every $1 spent on screening can generate an additional $6 in subsequent, often needless care.

Fendrick highlighted that the study took a nuanced, evidence-driven approach rather than a blunt cost-cutting one. By carefully distinguishing between patient groups who could or could not benefit from these services, the researchers relied on objective clinical data rather than general assumptions. They examined anonymised Medicare claims from 2018 to 2020 and then extrapolated their findings to the broader Medicare population. “This research is highly policy relevant,” he explained, “because it offers a patient-focused framework for identifying unnecessary spending without compromising quality of care.” He added that the Affordable Care Act’s provisions for excluding USPSTF “D” rated services from coverage are an example of value-based insurance design at work, ensuring resources are directed towards care that truly improves health outcomes.

More information: David D. Kim et al, Projected Savings From Reducing Low-Value Services in Medicare, JAMA Health Forum. DOI: 10.1001/jamahealthforum.2025.3050

Journal information: JAMA Health Forum Provided by Michigan Medicine – University of Michigan

Study finds physical inactivity draining US economy of $192 billion each year

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A new study published in the American Journal of Health Promotion has revealed the enormous economic toll of physical inactivity in the United States. The researchers found that inadequate leisure-time aerobic physical activity accounts for roughly $192 billion in annual healthcare costs among U.S. adults, representing 12.6% of the country’s total healthcare expenditure. Drawing on data from over 76,000 adults collected between 2012 and 2019, the study highlights the far-reaching financial and health consequences of insufficient movement in daily life.

The findings paint a troubling picture of national activity patterns. Just over half of adults surveyed (52.4%) met the recommended aerobic activity guidelines, while 20.4% were classified as insufficiently active and 27.3% reported being completely inactive. On average, an adult incurred $6,566 in annual healthcare costs. Yet these costs rose significantly when linked to activity levels: adults who were insufficiently active incurred an additional $1,355 per year compared to their active peers. In contrast, inactive adults faced $2,025 more in annual healthcare spending. These disparities underscore the direct financial impact of sedentary behaviour.

Dr Adam Chen, co-author and professor at the University of Georgia’s College of Public Health, stressed the importance of seeing physical activity not as an optional pursuit but as a fundamental investment in health. “Aerobic physical activity is an investment in health—it strengthens the heart, reduces chronic disease burdens, and empowers us to live with energy and freedom,” he explained. Despite incremental national gains in activity levels, healthcare costs continue to escalate, largely due to preventable chronic conditions that could be mitigated through increased movement.

Other researchers involved in the study emphasised the role of healthcare providers and systems in addressing this crisis. Laurie Whitsel, PhD, National Vice President of Policy Research at the American Heart Association and Senior Advisor to the Physical Activity Alliance, noted that the results should encourage action across the health sector. “These findings provide further economic reasons for health systems, payers, and clinicians to integrate physical activity assessment, prescription, and referral into healthcare delivery. We need to inspire and support people to make physical activity a regular part of their day,” she said.

The CDC echoed this call to action, pointing to the simplicity of the solution. Co-author Jennifer Matjasko, PhD, of the CDC’s Division of Nutrition, Physical Activity, and Obesity, reminded the public that small steps can add up to meaningful change. “Moving more throughout the day can help improve health and reduce healthcare costs,” she explained. “Every step counts toward a healthier future.” The message reflects a broader effort to highlight physical activity as a low-cost, widely accessible tool for both preventing disease and reducing national health expenditure.

In light of these findings, the Physical Activity Alliance—the nation’s largest coalition devoted to advancing physical activity policy—has called for coordinated action across multiple sectors. Their recommendations include making physical activity a standard element of medical care, redesigning workplaces to counter sedentary cultures, and transforming communities to ensure that physical activity is safe, accessible, and unavoidable in daily routines. As Michael Stack, ACSM-EP, President of the Alliance, put it: “We’re spending nearly one out of every eight health care dollars on something we can prevent. We need to view physical activity as an essential healthcare solution to inspire people to move across their day—in recreation, to and from work, in their jobs, at home and in schools.”

More information: Jennifer Matjasko et al, Inadequate Aerobic Physical Activity and Healthcare Expenditures in the United States: An Updated Cost Estimate, American Journal of Health Promotion. DOI: 10.1177/08901171251357128

Journal information: American Journal of Health Promotion Provided by Physical Activity Alliance

Track Record Isn’t a Guarantee for CEO Performance

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When a company changes its chief executive, the decision carries enormous consequences. Yet a recent study indicates that corporate boards are not necessarily getting better at the task, even when they have prior experience. In 2024, CEO turnover hit an all-time high, with over 2,220 leaders stepping down. This wave of leadership changes prompted researchers to investigate whether repeated exposure to CEO selection improves a board’s ability to choose high-performing leaders. Their findings, published in the Strategic Management Journal, suggest that this assumption does not hold.

Rich Gentry, chair and professor of management at the University of Mississippi, explained the surprising results: “Most people improve with practice, but we find that this doesn’t hold true when it comes to directors selecting new CEOs, despite the high stakes. Directors with more prior experience in CEO hiring do not consistently select better-performing leaders. In fact, there is some evidence they might actually perform slightly worse.” Gentry collaborated with Steven Boivie of Texas A&M University, Inn Hee Gee of the University of Oklahoma, and Scott Graffin of the University of Georgia to examine CEO appointments in S&P 1500 firms between 1999 and 2020, covering a broad range of company sizes and industries.

The researchers attribute the problem to the inherent complexity and rarity of CEO hiring. As Boivie noted, “Hiring a CEO is very difficult, and it is almost impossible to know in advance who would be the perfect fit. Because of that difficulty, it is easy for boards to overinterpret their prior experiences and to believe they should copy those same patterns.” This tendency, they argue, can lead to overgeneralisation, where boards rely too heavily on what worked in the past without recognising that each company’s circumstances are unique. By acknowledging the limitations of experience, directors may be able to avoid repeating mistakes.

The stakes are particularly high because CEOs are tasked with managing both short-term and long-term performance. Kodak’s history provides a cautionary example. Its CEO championed digital photography—a forward-looking move that would later prove strategically sound—but the decision was criticised at the time for damaging short-term profits. The company ultimately filed for bankruptcy despite its technological foresight. Conversely, Microsoft’s board saw strong returns after appointing Satya Nadella in 2014. His push into cloud computing revitalised the company, delivering both immediate profitability and sustained growth.

To evaluate hiring success, the team analysed CEO performance metrics adjusted for industry norms and the company’s condition at the time of the appointment. They found that having served on a previous CEO hiring committee was not a reliable indicator of better future outcomes. Gentry referred to this as “superstitious learning” — the belief that having done something before automatically translates into expertise. In reality, most directors face the task of hiring a CEO only once or twice in their careers, offering too little repetition to build meaningful skill in such a rare and complex decision.

According to Gee, the main takeaway is that boards should avoid relying too heavily on past hiring experience. Instead, they should treat each CEO succession as a unique, context-specific challenge, guided by structured evaluation processes and informed by multiple perspectives. Gentry added that boards might benefit from more systematic support—such as formalised assessment tools and external expertise—to reduce bias and avoid overconfidence. The study ultimately suggests that accumulated experience alone is not enough; thoughtful, evidence-based decision-making is essential for selecting leaders who can thrive in both the present and the future.

More information: Steven Boivie et al, Do boards learn to hire? The effect of board experience with CEO replacement on CEO performance, Strategic Management Journal. DOI: 10.1002/smj.3725

Journal information: Strategic Management Journal Provided by University of Mississippi

For Refugees from Ukraine, Employment Opportunities Outweigh Social Benefits

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A recent study conducted by the ifo Institute and LMU Munich reveals that Ukrainian refugees prioritise better job prospects over higher social benefits when choosing where to settle. Surveying more than 3,300 Ukrainian refugees across Europe, the researchers found that the promise of employment matching a refugee’s qualifications and the potential for higher wages had a far greater influence on their choice of destination than social assistance or child benefits. According to Panu Poutvaara, Director of the ifo Center for Migration and Development Economics and Professor at LMU’s Faculty of Economics, wage differences exert nearly four times the impact of variations in social benefits when refugees decide where to relocate.

In an experimental scenario, participants were asked to select between two hypothetical countries with differing economic and social characteristics. When presented with a country offering better employment opportunities, respondents were 15 percentage points more likely to choose it over the alternative. Similarly, a country with an average wage of €500 (US$570) higher attracted a preference that was nine percentage points greater. These factors were decisive even among unemployed refugees, many of whom indicated an intention to join the labour market in the future. The presence of friends or family in the destination country also influenced decisions, increasing its attractiveness by 8.5 percentage points, although this was less important than economic incentives. Interestingly, geographical proximity to Ukraine was less of a draw, particularly for those who envisioned a long-term future abroad. For these individuals, economic opportunities outweighed closeness to family and friends.

The study underscores that understanding the motivations behind refugees’ choice of destination is critical for shaping effective national and international policies. Yvonne Giesing, Deputy Director of the ifo Center for Migration and Development Economics, notes that such insights can inform debates on policy measures, such as reducing social benefits in an attempt to deter refugee arrivals. However, the findings suggest that lowering social assistance is unlikely to have a significant impact, given that job opportunities and wage levels are far more influential in attracting refugees. On the contrary, Giesing warns that cutting state aid could hinder long-term integration, as financial support during the early stages of resettlement can play a vital role in helping newcomers adapt and contribute to their host societies.

Overall, the research highlights that economic factors—particularly the availability of suitable employment and competitive wages—are central to the settlement choices of Ukrainian refugees. While social benefits may provide critical support, they are secondary to the prospects of achieving economic independence and professional fulfilment in the host country. This suggests that policies aimed at integrating refugees into the labour market, such as streamlined credential recognition, targeted language training, and job placement programmes, may be far more effective in influencing settlement patterns than adjustments to welfare systems. By aligning policies with these preferences, host nations can not only attract skilled and motivated newcomers but also foster their successful integration into society.

More information: Panu Poutvaara et al, Refugees from Ukraine value job opportunities over welfare, Proceedings of the National Academy of Sciences. DOI: 10.1073/pnas.2502420122

Journal information: Proceedings of the National Academy of Sciences Provided by Ludwig-Maximilians-Universität München

Study warns that personalised pricing strategies may harm businesses

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Personalised pricing, where businesses tailor the cost of goods or services to individual consumers based on detailed data about their willingness to pay, is often criticised for potentially pushing up prices for specific customers. However, new research suggests the practice may also undermine companies’ profits.

Consumers encounter personalised pricing in many forms, from targeted digital coupons and loyalty offers to “Buy Now, Pay Later” schemes that bundle sales with subsidised loans. Airlines, for example, increasingly use artificial intelligence to adjust fares for individual travellers. Such strategies rely on analysing a customer’s digital footprint—including purchase history, location, lifestyle, and even device type—to extract the highest possible payment from each buyer.

The drawback, according to Professor Liyan Yang of the University of Toronto’s Rotman School of Management, is that concealing prices from other customers removes a crucial source of market information. When prices are visible and competitive, consumers are reassured that more people will buy—a factor that boosts the appeal of products whose value grows with wider adoption, such as social media platforms or online marketplaces. Hidden prices, by contrast, create uncertainty and can lead to lower overall spending.

To explore this effect, Prof. Yang and Yan Xiong, now an associate professor at the University of Hong Kong Business School, used mathematical and game-theoretic modelling to examine network-based products. They found that when prices were hidden, companies tended to charge more per customer but ultimately made less profit compared with situations where prices were transparent.

The researchers also identified ways to avoid this pitfall. Businesses could commit to keeping prices within a set range, launch corporate social responsibility programmes to lower prices, build reputations for fairness, or start with low, transparent pricing to attract more users. Voluntary or government-imposed price caps could also help, with some jurisdictions such as China, the European Union, and the United States already exploring or implementing such measures.

While companies often resist regulation, Prof. Yang notes that certain price restrictions could, in theory, lead to better profitability in the long run. “There are trade-offs,” he says, adding that policymakers would need to “gauge precisely” where limits should be set to protect consumers while allowing businesses to find the pricing sweet spot that maximises both transparency and profit.

More information: Yan Xiong et al, Personalized pricing, network effects, and commitment, Journal of Economic Theory. DOI: 10.1016/j.jet.2025.106036

Journal information: Journal of Economic Theory Provided by University of Toronto, Rotman School of Management

Research shows team leaders’ listening styles shape how well high-tech teams listen

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Does the way a team manager listens shape how the entire team listens? A new study led by Dr Osnat Bouskila-Yam of the Baruch Ivcher School of Psychology and the Arison School of Business at Reichman University, in collaboration with Prof Nurit Zaidman of the Department of Business Administration at Ben-Gurion University of the Negev, reveals a clear and significant link. The findings show that a manager’s listening style directly determines the listening climate in team meetings. When managers provide uninterrupted opportunities for each member to speak, avoid cutting them off, and display genuine emotional attentiveness, they create the conditions for open, deeper, and more effective dialogue. Conversely, partial listening, a lack of authenticity, or frequent interruptions undermine the overall quality of the team’s listening.

Unlike many previous studies conducted in controlled laboratory environments, this research was carried out in real organisational settings. The researchers observed how managers’ listening habits played out in actual workplace interactions, providing a more authentic picture of their impact. Data were gathered through 29 direct observations of team meetings, 18 in-depth interviews, and 10 focus groups, involving eight high-tech teams from two Israeli companies. This approach allowed the researchers to capture not only what was said but also how the communicative atmosphere evolved in response to different listening styles.

The study identified six distinct types of listening, ranging from disruptive listening to deep listening, as well as forms of listening that prompt speakers to understand themselves better. The most striking finding concerned the central role of team leaders: only managers who listened with empathy, inclusivity, and without judgment were able to foster a consistently positive listening environment. Crucially, this climate of attentiveness and respect was mirrored in the behaviour of team members, creating a shared culture of high-quality listening.

Dr Bouskila-Yam highlighted the distinction between functional management and what she terms “listening-based management.” She explained, “A manager who truly listens not only gains a better understanding of their employees but also creates a space where others can better understand themselves. This is the essential difference between operational management and listening-based management. It is not enough to acquire emotional listening skills — they must be actively applied in meetings, including by giving quieter voices the chance to contribute.”

Prof Zaidman stressed the broader implications for leadership training and organisational culture. “Our findings point to the need for both managers and employees to be trained in authentic listening, not just in how to deliver messages persuasively,” she noted. This shift in emphasis reframes listening as a core professional competency, essential not only for effective communication but also for trust-building and collaboration within teams.

By grounding their research in the lived experiences of high-tech teams, the authors have provided compelling evidence that listening is far more than a polite gesture — it is a powerful driver of communication quality and team performance. Their work suggests that fostering empathetic, attentive, and non-judgmental listening could be one of the most effective ways to strengthen cohesion, engagement, and innovation in the workplace. In short, when leaders listen well, their teams learn to listen well too.

More information: Osnat Bouskila-Yam et al, Listening in team meetings – what is the team leader’s influence? Journal of Communication Management. DOI: 10.1108/JCOM-02-2024-0032

Journal information: Journal of Communication Management Provided by Reichman University

When offensive advertising backfires—or does it? Why you might still reach for the product

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Time plays a decisive role in shaping consumer behaviour, particularly among socially vulnerable groups targeted by offensive or discriminatory advertising. New research led by Dr Enav Friedmann of Ben-Gurion University of the Negev has examined how such groups respond over time to marketing that demeans or excludes them. The study sheds light on a paradoxical effect in which some individuals, over time, become more likely to favour the very brands that insulted them.

Published in Psychology & Marketing, the research addresses a largely unexplored intersection of social identity and consumer decision-making. Offensive advertising—whether in the form of sexist jokes or racial stereotypes—can normalise prejudice, reinforce harmful norms, and undermine equality. “We wanted to explore how conflicts between social identity and consumer choices evolve over time,” says Dr Friedmann, who heads the LBM research lab in the Department of Business Administration.

The study involved three experiments testing reactions to advertisements targeting women and people of colour. Participants were assessed immediately after exposure and again either 10 days or a month later. The offensive ads were based on real-world campaigns, with discriminatory messages adapted to fit fictional or real brands. Across all studies, 640 participants of varying gender and skin tone shared their reactions to the brands and the content.

In one experiment, participants viewed a fictional body soap advert depicting a dark-skinned family in the “before” image and a light-skinned family in the “after” image. Ten days later, dark-skinned participants who perceived high discrimination against their ethnic group, but identified less strongly with it, expressed greater purchase intentions toward the brand.

Another experiment presented women with either neutral or sexist versions of a real chocolate brand advert. The offensive version read: “Women, I’m sick of you! I get tired of all of you so quickly,” followed by the brand’s familiar tagline. A month later, women who felt their gender was highly discriminated against, yet distanced themselves from that identity, were more likely to choose the offending brand over alternatives.

A third study used EEG measurements to record brain activity while participants viewed adverts for a construction company. Women who reported high discrimination but lower gender identification showed greater activation in brain areas linked to approach motivation when exposed to the offensive ad—an effect observed 10 days after the initial exposure.

These results reveal a paradox: among specific individuals from marginalised groups, perceived discrimination combined with reduced group identification can increase attraction to brands that demean them. This behaviour aligns with “disidentification” theory, where distancing from a stigmatised identity serves as a coping strategy to protect self-esteem, sometimes leading to unexpected brand loyalty.

Dr Friedmann stresses that these findings should not be seen as endorsing offensive advertising. Most participants did not respond positively, and the psychological harm to targeted groups can be significant. The research highlights the need for ethical marketing practices and stronger regulatory measures, including clear criteria for banning discriminatory adverts and imposing substantial penalties on violators. “Enforcement is essential to protect well-being and build a more equal society,” she concludes.

More information: Enav Friedmann et al, Disidentification: The Long-Term Effects of Offensive-Discriminatory Advertising, Psychology and Marketing. DOI: 10.1002/mar.70010

Journal information: Psychology and Marketing Provided by Ben-Gurion University of the Negev

New study reveals strong board oversight is key to harnessing overseas intangible asset value

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As global competition increasingly turns on technology, brand reputation, and specialised knowledge, a new study has found that corporate boards are pivotal in unlocking the full value of intangible assets, particularly during international expansion through acquisitions. Published in the Global Strategy Journal, the research by Xavier Martin of Tilburg University and Tao Han of emlyon business school examined 675 cross-border acquisitions by U.S. public companies to understand how intangible assets influence overseas performance and under what conditions their impact is maximised.

The study reveals that while firms with high levels of R&D and advertising intensity tend to experience stronger market reactions to foreign acquisitions, these benefits are significantly amplified when the board is structured for effective governance. “Intangible assets such as proprietary technologies and strong brands are central to global competitiveness,” said Professor Martin. “Yet they often lose some of their value when transferred across borders. Without the right strategic oversight at board level, companies risk leaving substantial gains unrealised.”

Using event-study methodology, the researchers focused on two key types of intangibles—technology, measured by R&D intensity, and marketing, measured by advertising intensity. Each acquisition was assessed across four dimensions of board effectiveness: independence (greater non-executive representation and separation of CEO and chair roles), expertise (directors with international management experience), bandwidth (fewer overcommitted directors serving on multiple boards), and motivation (higher director share ownership to align interests with shareholders).

The findings show that companies whose boards score highly across these measures enjoy greater abnormal stock returns following acquisition announcements, especially when deploying technology-intensive strategies abroad. Effective governance, the study suggests, equips firms to overcome the inherent challenges of internationalising intangible assets, including bridging information gaps, adapting to unfamiliar markets, and making informed disclosure and strategy decisions.

These insights are particularly timely in an era marked by fierce global competition for innovation leadership, notably in fast-moving sectors such as artificial intelligence. As firms devote increasing investment to intangibles, the ability of boards to provide oversight, expertise, and incentive alignment will be critical in turning those assets into sustained competitive advantage. For corporate leaders, investors, and policymakers, the message is clear: strong board governance is itself a strategic asset—one that can determine whether intangible investments abroad fulfil their potential.

More information: Xavier Martin et al, Board effectiveness and internalization benefits: Theory and evidence from value creation in cross-border acquisitions, Global Strategy Journal. DOI: 10.1002/gsj.1524

Journal information: Global Strategy Journal Provided by Strategic Management Society