Author Archives: support

Understanding Psychological Contract Theory in App-Based and Gig Work Contexts

Psychological contracts refer to the implicit beliefs and informal expectations that underpin the relationship between workers and their employers. Traditionally understood as personal and relational, these contracts involve mutual perceptions of obligation, trust, and reciprocity. However, the rise of platform-mediated, algorithmically managed work within the gig economy presents new challenges to this conceptual framework. Digital labour platforms such as Uber, Deliveroo, and Fiverr operate as intermediaries between service providers and customers, replacing traditional management structures with automated systems that assign tasks, monitor performance, and enforce behavioural norms without direct human involvement.

In response to these shifts, researchers from Carnegie Mellon University, University College Cork, and the University of Limerick have proposed a novel expansion of psychological contract theory. Published in the Human Resource Management Journal, their article examines whether workers can develop psychological contracts with non-human agents—particularly with the algorithms that increasingly govern their work lives. As Professor Denise M. Rousseau of Carnegie Mellon notes, understanding how such contracts emerge and operate among app-based workers is essential to grasp the broader implications of digitalised labour relations. The study challenges existing assumptions and calls for a reconceptualisation of the psychological contract in light of technological transformation.

The authors argue that the algorithm should be considered a new organisational party within the employment relationship. Drawing from cognitive psychology, particularly the theory of mind, they explore how workers might attribute human-like qualities—such as intentions, preferences, and expectations—to the algorithmic systems they interact with daily. This human tendency to anthropomorphise non-human agents is well documented. It helps explain why a gig worker might perceive the algorithm not merely as a tool but as an actor with whom they have a relationship shaped by mutual expectations.

Such anthropomorphism may lead to developing psychological contracts with the algorithm itself. Workers might come to expect fairness, respect, responsiveness, or even loyalty from the algorithmic system, just as they would from a human supervisor. This introduces socioemotional elements into what is often assumed to be a purely transactional relationship. According to the authors, when workers believe the algorithm is capable of ‘thinking’ or ‘judging,’ they may expand the range of perceived exchanges to include non-material resources like recognition, dignity, or trust—expectations that can significantly influence job satisfaction and behaviour.

The article also highlights the importance of these findings for human resource management. As Ultan Sherman of University College Cork observes, the algorithm is not a neutral intermediary but a central actor shaped by those who design and maintain it. Understanding how workers interpret the algorithm’s role and their expectations can help organisations anticipate behavioural patterns, prevent perceived contract breaches, and foster better engagement. By acknowledging that workers form meaningful psychological ties even with non-human agents, HR professionals can tailor communication and policy strategies more effectively in algorithmically managed environments.

The research offers a compelling case for updating psychological contract theory to accommodate the realities of digitally mediated work. Although the interface has shifted from human to algorithm, the fundamental psychological processes that govern workers’ interpretations of obligation and reciprocity remain in play. As gig work continues to reshape labour markets globally, recognising the role of non-human agents in employment relationships is critical for scholars and practitioners alike. This evolving understanding will deepen theoretical insight and help ensure that emerging forms of work are managed ethically and sustainably.

More information: Ultan Sherman et al, Anthropomorphising the Algorithm: A ‘Theory of Mind’ Perspective on Psychological Contract Creation in Gig Work Arrangements, Human Resource Management Journal. DOI: 10.1111/1748-8583.12599

Journal information: Human Resource Management Journal Provided by Carnegie Mellon University

Ministers Pressed to Address Inequality in Access to Green Technologies such as Solar Power and Electric Vehicles

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According to a recent study from the University of Sheffield, to achieve its ambitious net-zero emissions goals by 2050, the UK government must do more than offer subsidies for low-carbon technologies (LCTs) like electric vehicles and solar panels. Developed in collaboration with researchers from the universities of Nottingham and Macedonia, the report highlights significant socioeconomic disparities limiting uptake among disadvantaged groups despite overall increasing adoption.

In recent years, the number of UK households using solar panels for electricity generation has more than doubled, from 3 per cent to 6.5 per cent. Similarly, solar heating technology adoption rose from 1.4 per cent to 2.1 per cent, and electric or hybrid vehicle usage increased from under 1 per cent to 2.8 per cent. These trends indicate growing national acceptance of low-carbon technologies, yet socioeconomic inequalities remain a considerable barrier.

The study identifies age, education, occupation, ethnicity, and gender as significant influences individuals’ ability to invest in these technologies. Dr Andrew Burlinson from the University of Sheffield’s School of Economics highlighted that current policies inadequately support disadvantaged groups, exacerbating existing inequalities and limiting their resilience to fluctuating energy prices.

The UK government currently subsidises some electric vehicles at purchase, but these subsidies are rarely linked to socioeconomic status, and support for domestic solar installations ended in 2019. The researchers argue that targeted financial and educational incentives must be reintroduced, primarily aimed at lower-income communities, to ensure equitable access and help achieve national decarbonisation targets.

Professor Monica Giulietti from the University of Nottingham advocates for broader, community-level initiatives beyond individual households, particularly in private, rented, and social housing sectors. Community-based solar installations could substantially reduce individual financial burdens, improving accessibility for those without direct control over their housing or transport.

Dr Jayne Carrick from the South Yorkshire Sustainability Centre reinforced the necessity for comprehensive policy reforms, highlighting survey findings that nearly half of residents are reluctant to adopt solar panels, and 57 per cent hesitate regarding heat pump technologies. Dr Burlinson concluded that targeted policies addressing socioeconomic inequalities are essential for fairness and enhancing household energy efficiency and resilience during the transition to a sustainable future.

More information: Andrew Burlinson et al, Socioeconomic inequality in low-carbon technology adoption, Energy Economics. DOI: 10.1016/j.eneco.2025.108244

Journal information: Energy Economics Provided by University of Sheffield

First Lancaster University Spin-Off Goes Public on the London Stock Exchange

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Quantum Base has achieved a landmark by becoming the first-ever spin-out from Lancaster University to be listed on the London Stock Exchange, following a successful fundraising campaign culminating in an admission to trading. This notable entry onto the AIM, which was accompanied by a £4.8 million fundraising, highlights the robust investor confidence in Quantum Base’s innovative offerings and its potential for future expansion. The funds raised are earmarked to enhance the company’s commercial activities, advance product development, and make strategic hires in key commercial and operational areas.

Quantum Base was founded in 2013 as a vehicle to market Professor Rob Young’s groundbreaking discoveries in quantum physics at Lancaster University. The core team is further strengthened by Dr Alan Gilchrist, who serves as the Marketing Director from the Lancaster University Management School, and Professor Benjamin Robinson, who acts as the scientific materials advisor from the Physics Department.

Professor Rob Young, the founder of Quantum Base, expressed his excitement about this pivotal moment, noting that the listing transcends a mere financial milestone. He emphasized that it symbolizes the fruition of a vision aimed at deploying quantum technology to solve significant real-world challenges. The capital injection from the IPO will significantly accelerate the rollout of Q-IDs, positioning them as a revolutionary new standard in the anti-counterfeiting landscape, ensuring the security of products and consumers globally.

Quantum Base is focused on refining and deploying its patented Q-ID technology—highly secure, unique authenticity tags designed to mitigate the effects of counterfeiting drastically. These tags leverage inherent atomic randomness, rendering them nearly impossible to replicate with existing technology. Q-IDs can be seamlessly integrated into standard printing methods and easily verified using a smartphone, offering a robust, consumer-friendly authentication solution that enhances the security of global brands, governments, and consumers.

Tom Taylor, Quantum Base’s CEO, expressed his enthusiasm about the company’s commencement of trading on AIM, marking a significant milestone in its journey from a university spin-out to a beacon of British scientific innovation. He highlighted that the listing signifies growth and enhances the company’s independence and credibility. Taylor is optimistic about the potential of Q-ID technology to address the pervasive challenges of counterfeiting that affect global brands, governments, and consumers, positioning the company to set a new international standard in authentication technologies.

Counterfeiting, which is estimated to cost businesses and tax authorities around $2.8 trillion annually in lost revenue, continues to be a significant global issue. Traditional anti-counterfeiting measures like holograms and security inks are often inadequate due to their susceptibility to replication, high production costs, or the need for specialized reading technology not readily available to the public or manufacturers. Quantum Base’s atomic-level Q-ID solution offers a promising alternative that requires no changes in consumer behaviour or additional infrastructure. It has been peer-reviewed, published in leading scientific journals, and rigorously tested by potential partners, proving its groundbreaking effectiveness in identifying counterfeit products and demonstrating its commercial and scientific credibility.

More information: J. Roberts et al, Using Quantum Confinement to Uniquely Identify Devices, Scientific Reports. DOI: 10.1038/srep16456

Journal information: Scientific Reports Provided by Lancaster University

Viral Resignations? Recent Study by USF Associates Staff Departures with Colleague Influence

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A recent collaborative study by the University of South Florida and the University of Cincinnati reveals how workplace cohorts substantially influence newcomer retention, providing essential insights for organizations looking to reduce employee turnover and improve team stability. Workplace cohorts are groups of new employees who join an organization simultaneously and often receive training together. This approach is prevalent in various sectors, including the military and professional services such as law, accounting, and consulting. It is also common among Fortune 500 companies like Amazon and Walmart.

Amit Chauradia, an Assistant Professor at the USF Muma College of Business and the study’s principal investigator, emphasizes the importance of strategic cohort management to enhance retention. According to Chauradia, organizations could significantly reduce turnover risks by aligning the hiring process with employee location preferences and promoting a positive cohort experience. This approach fosters a supportive environment that can discourage employees from seeking other job opportunities.

The research, published in the Journal of General Management, analyzed survey data from about 650 new employees across 32 cohorts at a global IT services firm. The findings revealed a contagion effect within cohorts: when some cohort members begin job-seeking behaviours, it increases the likelihood that others will follow suit, particularly if they feel less committed to the organization’s location. This suggests a strong attachment to the organization’s geographical location can mitigate turnover risk.

Chauradia and Daniel Peat, an Assistant Professor at the Carl H. Lindner College of Business at the University of Cincinnati and a co-author of the study, are scholars in human capital. They focus on the competencies and skills that add value to individuals and organizations. Peat highlights that while previous research primarily focused on collective turnover and organizational issues, their study is among the first to examine the impact of cohort dynamics on individual decisions to leave an organization.

The study builds on existing theories of job embeddedness and turnover contagion, showing how social connections within cohorts can anchor employees to an organization or accelerate their departure. This research challenges organizations to rethink how they manage cohorts, which is critical in managing Generation Z, who represent a significant portion of the global workforce and are known for their high turnover rates within the first year of employment.

The study offers new strategies for corporate leaders and HR professionals and underscores the importance of managing cohorts as social groups rather than mere collections of individuals. By prioritizing geographic preferences during the hiring process and fostering positive cohort dynamics, companies can create an environment where newcomers feel embedded and are more likely to stay long-term. Chauradia and Peat plan to continue their research to explore how organizations can effectively develop newcomers in a manner that encourages talent to grow, perform, and stay within the organization, promising further insights that could help build a more stable, committed workforce.

More information: Amit Chauradia et al, The ties that bind: Cohort influence on newcomers staying or leaving their organization, Journal of General Management. DOI: 10.1177/03063070251332040

Journal information: Journal of General Management Provided by University of South Florida

Exploring Consumer Behaviour in Japan’s Community-Supported Agriculture

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Conventional food production and distribution systems are fraught with environmental challenges, including the overuse of fertilisers and significant greenhouse gas emissions. These issues underscore the pressing need to transition towards sustainable food systems with minimal environmental impact, such as Community-Supported Agriculture (CSA). In such models, consumers pre-pay producers for seasonal harvests, providing farmers with financial stability and allowing consumers to partake in farming activities. This symbiotic relationship significantly strengthens local food systems.

Despite the apparent benefits of CSAs, there is a notable scarcity of research focused on what drives consumer participation, especially outside the Western context. This is particularly evident in Japan, where CSA initiatives are less common, and cultural differences that might influence consumer engagement are poorly understood. Addressing this knowledge gap is vital for developing and expanding CSAs in non-Western markets.

In response to this lack, Mr. Sota Takagi, a graduate student at the Institute of Science Tokyo, Professor Miki Saijo, and Associate Professor Takumi Ohashi from the same institute and Chulalongkorn University, undertook a comprehensive study. Their research aims to decode the motivations behind Japanese consumers’ interest in CSA. Preliminary findings were shared online in February 2025, with a detailed publication scheduled for the June 2025 issue of the International Journal of Gastronomy and Food Science.

The study utilised an online survey involving 2,484 Japanese consumers, incorporating a choice experiment that evaluated preferences for locally grown vegetables concerning attributes such as organic certification, purchasing methods, and price readiness. The survey also delved into consumer awareness and intentions to engage in CSA, framed by the CSA participation model. This model posits that consumers evaluate the advantages and disadvantages of joining a CSA, with decisions influenced by their sociocultural environment.

Analysis of the survey data revealed five distinct consumer segments: Conventional Shoppers, Organic Enthusiasts, Farmers’ Market Advocates, Home Delivery Preferers, and Sustainable Food Seekers. The Sustainable Food Seekers, representing 26.4% of participants, expressed the most substantial interest in CSA, preferring farmers’ markets and showing a lesser concern for prices and organic labels.

Further investigations using partial least squares structural equation modelling affirmed the validity of the CSA participation model. Key drivers for CSA participation included “Food Education and Learning Opportunities” and “Contribution to Environmental and Social Issues,” with the latter being particularly influential for Sustainable Food Seekers. These interests are likely supported by Japan’s national food education law, which advocates for a balanced approach to food that benefits health, culture, and the environment.

Despite the benefits and growing interest, the survey highlighted a significant gap in CSA awareness; 75.4% of respondents were unaware of CSA, and only a tiny fraction fully understood its principles and benefits. Mr. Takagi recommends that CSA advocates and policymakers focus on highlighting the educational, environmental, and social benefits of CSA over mere organic certification. This strategy and efforts to enhance consumer awareness could substantially increase CSA engagement in Japan, paving the way for its broader adoption globally. By acknowledging and addressing these cross-cultural and local nuances, stakeholders can better promote CSA and encourage sustainable agricultural practices worldwide.

More information: Sota Takagi et al, Consumer segmentation and participation drivers in community-supported agriculture: A choice experiment and partial least squares structural equation modelling approach, International Journal of Gastronomy and Food Science. DOI: 10.1016/j.ijgfs.2025.101129

Journal information: International Journal of Gastronomy and Food Science Provided by Institute of Science Tokyo

Mathematicians Reveal Concealed Patterns Behind a $3.5 Billion Cryptocurrency Collapse

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In a recently published article in ACM Transactions on the Web, a team of researchers from the Queen Mary University of London, led by Dr Richard Clegg, has revealed the complex mechanisms that led to one of the most significant collapses in the cryptocurrency arena: the crash of TerraUSD stablecoin and its counterpart currency, LUNA. Utilising state-of-the-art mathematical approaches and advanced software technologies, the researchers have pinpointed suspicious trading patterns indicative of a coordinated assault on the cryptocurrency ecosystem, which resulted in an abrupt and catastrophic devaluation of $3.5 billion.

The groundbreaking study utilises temporal multilayer graph analysis, an advanced analytical technique crucial for dissecting complex, interconnected systems that evolve over time. The team successfully mapped out the interrelations among various cryptocurrencies traded on the Ethereum blockchain using this method. Their findings highlighted how the TerraUSD stablecoin was systematically undermined through orchestrated, large-scale trading activities.

Stablecoins, such as TerraUSD, are designed to offer a stable value, often pegged to conventional fiat currencies like the US dollar. However, in May 2022, TerraUSD and LUNA faced a devastating downfall. Dr Clegg’s research illuminates the mechanics behind this event, revealing evidence of a coordinated attack executed by traders who aimed to profit from the currency’s decline—a strategy known as “shorting.”

The findings astonished Dr Clegg: “What we uncovered was remarkable. The trading patterns deviated significantly from the norm in the days leading up to the collapse. Instead of a diverse group of traders participating in the market, a concentrated cluster of just a few individuals dominated nearly the entire trading volume. These patterns serve as clear indicators of a deliberate effort to destabilise the currency system.”

Further analysis demonstrated that on critical dates, a mere five or six traders were responsible for most of the trading volume, each holding a nearly identical market share. Such precise coordination among traders is unlikely to occur randomly in a standard trading environment, strongly implying collusion to precipitate the currency’s collapse.

This research casts light on the reasons behind the TerraUSD debacle and heralds the introduction of an innovative analytical tool for the cryptocurrency markets. This software, developed in partnership with Pometry—a spin-out company from Queen Mary University—employs graph network analysis to decode and visualise complex trading data. This novel tool holds significant promise for regulators, investors, and academicians to enhance their understanding of market dynamics and mitigate potential risks in the notoriously unpredictable cryptocurrency market. Dr Clegg remarked on the broader implications of their findings: “Cryptocurrencies are often perceived as the Wild West of finance, characterised by minimal regulation and scarce accountability. Our research demonstrates that we can reveal the underlying patterns and behaviours that steer these markets by employing robust mathematical methods. This effort is not merely about dissecting past failures—it’s about constructing a safer, more transparent financial framework for the future.”

More information: Richard Clegg et al, Investigating the Luna-Terra Collapse through the Temporal Multilayer Graph Structure of the Ethereum Stablecoin Ecosystem, ACM Transactions on the Web. DOI: 10.1145/3726869

Journal information: ACM Transactions on the Web Provided by Queen Mary University of London

New Study Reveals That Employee Self-Confidence Enhances Workplace Conduct and Morality

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Recent research spearheaded by Aston University and published in the journal Personality and Individual Differences has highlighted the critical role of self-efficacy in shaping workplace behaviour. Self-efficacy is an individual’s belief in their ability to execute actions necessary to achieve specific outcomes, reflecting their confidence in their capacity to succeed. This concept is central to understanding how employees interact within and beyond their roles.

The paper, Self-Efficacy and Nontask Performance at Work: A Meta-Analytic Summary, draws on a vast dataset from nearly 50,000 employees across multiple industries. This study explores the connections between self-efficacy, citizenship behaviours in the workplace, and counterproductive activities. The findings reveal that employees with high self-efficacy are significantly more likely to engage in citizenship performance, which includes behaviours that exceed formal job responsibilities, such as helping colleagues, voicing concerns, and fostering a positive workplace atmosphere.

Led by Professor Roberta Fida and an international research team, the study also finds that self-efficacy serves as a barrier against counterproductive behaviours at work, including disengagement, misconduct, and aggression. This protective quality of self-efficacy is crucial as it helps maintain a constructive and ethical work environment even under challenging conditions.

Additionally, the research underscores the buffering effect of self-efficacy against the negative impacts of adverse working conditions. Employee confidence can significantly mitigate workplace stress and improve an organisation’s health. According to the findings, organisations can boost self-efficacy through leadership, targeted training programmes, and supportive workplace policies, all of which contribute to a more engaged and ethically sound workforce.

Roberta Fida, Professor of Organisational Behaviour and Organisational Psychology at Aston Business School, offers a profound insight into the study’s implications: “Our research shows that self-efficacy is not just a predictor of task performance but is also crucial in shaping broader employee behaviours at work. Employees who believe in their capacity to succeed are more likely to take the initiative, contribute positively to their teams, and withstand pressures that might lead to unethical or counterproductive actions. Encouraging self-efficacy in employees not only benefits the individuals themselves but also has profound implications for organisational culture. Our findings suggest that organisations investing in the development of employees’ self-efficacy are likely to witness enhancements in both performance and ethical conduct.”

More information: Roberta Fida et al, Self-efficacy and nontask performance at work. A meta-analytic summary, Personality and Individual Differences. DOI: 10.1016/j.paid.2025.113179

Journal information: Personality and Individual Differences Provided by Aston University

Recent UNSW Study Uncovers Significantly Greater GDP Decline Due to 4°C Global Temperature Rise

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The latest forecasts from the UNSW Institute for Climate Risk & Response (ICRR) indicate that a global temperature increase of 4°C could reduce worldwide GDP by approximately 40% by the year 2100, a figure that starkly contrasts with previous estimates of about 11%.

This newly released study corrects a crucial mistake in the economic model that underpins current global climate strategies, thereby challenging the earlier carbon benchmarks that were considered acceptable. The findings bolster the argument for maintaining global warming within a 1.7°C limit, aligning with the ambitious targets set by international agreements such as the Paris Agreement and significantly below the 2.7°C previously deemed acceptable under older models.

Dr Timothy Neal, a Scientia Senior Lecturer at the School of Economics and affiliated with the ICRR, spearheads this research. He employs traditional economic models that balance the immediate costs of transitioning away from fossil fuels against the prolonged damages caused by climate change, refining critical components of these models. According to Dr Neal, while economists have traditionally relied on historical data to correlate weather events with economic growth to assess climate damage, they have overlooked the broader impacts on the global supply chain, which buffers economic shocks. He anticipates that future scenarios of heightened global temperatures will lead to widespread disruptions in supply chains due to extreme weather events across the globe.

Dr Neal argues convincingly for the necessity of robust actions against climate change. He points out that excluding these broader economic damages in previous models led to a significant underestimation of the economic threats posed by severe climate changes, which has had profound consequences for climate policies. Financial models that only accounted for localised damages have been integral to economic forecasts shaping major world powers’ climate policies and have been pivotal in forming international climate agreements.

Dr Neal also highlights that no country is safeguarded against the detrimental effects of climate change, debunking the myth that colder nations like Russia or Canada might benefit from such changes. The interdependencies within global supply chains ensure that no nation is insulated from the impacts. However, Dr Neal acknowledges that the research is not yet complete. His current models do not consider potential adaptations to climate change, such as human migration, which are both politically and logistically complex and have not been fully integrated into existing models.

As we continue to witness the effects of climate change on our economies—from escalating food prices to rising insurance costs—our responses must remain adaptable to new information to safeguard our collective interests effectively. Dr Neal’s work underscores the urgent need for an updated approach to understanding and mitigating the economic impacts of global climate change, urging all nations to recognise their vulnerability and act swiftly to counteract these changes.

More information: Timothy Neal et al, Reconsidering the macroeconomic damage of severe warming, Environmental Research. DOI: 10.1088/1748-9326/adbd58

Journal information: Environmental Research Provided by University of New South Wales

Recent Research Reveals Over 95% of Sponsored Influencer Tweets Lack Proper Disclosure

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A recent study published in the peer-reviewed journal Marketing Science has uncovered that 95% of influencer posts on Twitter (now known as X), which are sponsored, do not disclose this fact. The research article “How Much Influencer Marketing Is Undisclosed?” is featured in the INFORMS journal Marketing Science. The authors, Daniel Ershov of University College London and the Centre for Economic Policy Research in London, Yanting He from Imperial College London, and Stephan Seiler, also associated with the Centre for Economic Policy Research and Imperial College London, have contributed to this revealing study.

The researchers have noted that posts that do not disclose their sponsorship tend to be linked to relatively young “brands” with large social media followings. Yanting He remarked on the findings, stating, “Our study findings highlight a potential need for further regulatory scrutiny,” emphasizing the importance of transparency in influencer marketing.

Influencer marketing represents a modern strategy to reach consumers, sidestepping traditional advertising media such as broadcast and print. This method employs individuals to endorse brands, products, or services, compensating them for their promotional efforts. Typically, these influencers are chosen based on their substantial social media presence and/or celebrity status. Daniel Ershov highlights a significant issue: “Because consumers might find it difficult to distinguish paid influencer posts from genuinely organic content, regulators in many countries now require any paid content to be disclosed.” He notes, however, that “because of the novelty associated with influencer marketing, the evolving regulatory framework has not caught up.”

To conduct this study, the researchers utilized a novel dataset of over 100 million brand-related posts on Twitter from 268 brands. They developed a new text-based classification approach to identify undisclosed sponsored content. By quantifying the impact of undisclosed influencer posts, they aimed to assess whether consumers could detect when commercial content was not disclosed. They tracked the progression of these undisclosed posts over time and were able to pinpoint the brands involved in these secretive advertising tactics.

The findings were quite revealing: many participants in an online survey could not identify commercial content that lacked disclosure. Stephan Seiler shared insights from the study, saying, “We found that although regulation did tighten up over our sample period from 2014 to 2021, the share of undisclosed content decreased only slightly.” The research also showed that undisclosed sponsored posts frequently originate from younger brands with significant Twitter followings, underscoring the ongoing challenges and the urgent need for stricter regulatory measures to safeguard consumers and ensure the transparency of influencer marketing practices.

More information: Daniel Ershov et al, How Much Influencer Marketing Is Undisclosed? Evidence from Twitter, Marketing Science. DOI: 10.1287/mksc.2024.0838

Journal information: Marketing Science Provided by Institute for Operations Research and the Management Sciences

Recent Research Indicates that Remaining Neutral on Social Topics May Still Displease Customers

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On February 28th, consumers nationwide participated in what was termed an ‘economic blackout’, refraining from all spending to protest reductions in diversity, equity, and inclusion (DEI) initiatives. This sparked considerable backlash on social media from people across the political spectrum, presenting brands with a challenging question: Should companies remain silent on such divisive issues?

A study published in the Strategic Management Journal suggests that silence on prominent and contentious issues can still lead to backlash. The research, conducted by Marco Shaojun Qin, Xueming Luo, and Todd Schifeling of Temple University, together with independent researcher Yang Wang, focused on the impact of corporate silence during the Blackout Tuesday event on Instagram in 2020. They monitored the Twitter and Instagram accounts of 312 fashion industry companies for four weeks before and after the event. Their findings revealed that companies that did not participate saw a 33% slowdown in follower growth and a 12% decrease in likes.

Marco Shaojun Qin elaborated on the findings, stating that when an issue is highly salient to the public, the space for neutrality vanishes, and stakeholders are likely to interpret silence as a form of disdain. “The effects we discovered are substantial and imply that the classic notion that firms can be protected by staying silent on sociopolitical issues may no longer hold in today’s world,” Qin noted.

The study also highlighted that consumers in niche markets tend to give companies the benefit of the doubt, likely because of the smaller audience size and tighter alignment with the companies. Yang Wang explained, “Liberal stakeholders who support an issue will be more likely to presume that a silent niche firm has a liberal stance. Conversely, conservatives are more likely to presume that the firm has a conservative stance.”

In sectors with high participation, the study found that the downturn in followers and engagement nearly doubled for companies that remained silent. This was particularly pronounced among mass-market businesses, which suffered more significant declines in consumer support than their niche counterparts. Todd Schifeling emphasized the importance of visibility in shaping stakeholder responses. “Visibility is central to stakeholder responses,” he said. “It intensifies the more an industry engages on an issue—making corporate silence more obvious. It’s also key to protecting companies in smaller markets. They attract less attention, and the intention behind inaction by a niche company can be opaque.”

This research provides valuable insights into why many companies and CEOs increasingly engage in corporate activism on issues that may not directly relate to their business strategy, often triggering negative public responses. The case of Blackout Tuesday, organized by BLM leaders, shows how non-participation can be reasonably inferred as opposition. The findings are particularly relevant amid the current sociopolitical discourse in the United States; as polarization grows, consumers are less likely ever to assume corporate neutrality. Although it’s tempting for corporations to avoid engaging in controversial social issues, the research underscores that such silence comes with significant costs.

More information: Marco Shaojun Qin et al, When corporate silence is costly:Negative consumer responses to corporate silence on social issues, Strategic Management Journal. DOI: 10.1002/smj.3683

Journal information: Strategic Management Journal Provided by Strategic Management Society

Agreement May Reduce the Expense of Purchasing a House

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Since the National Association of Realtors (NAR) agreed in March to a $418 million settlement to resolve an antitrust lawsuit, scholars at Texas McCombs believe there’s an opportunity to address the problem of artificially high real estate commissions. The lawsuit alleges that real estate agents have colluded to keep commission rates high. These commissions, typically about 6% of the sale price, are paid by sellers but shared between the agents representing the buyer and the seller. Under the settlement terms, details of commissions must be excluded from the multiple-listing services (MLSs), which are the platforms where properties are listed for sale. This change could lead to reduced commission rates and offer some relief to consumers.

John Hatfield, a professor of finance, and Richard Lowery, an associate professor of finance, have investigated the prevalent commission-sharing arrangement in their latest research. Their findings support the claims made in the lawsuit, indicating that such arrangements facilitate high commissions by enabling collusion among agents. The established norms of sharing commissions among agents can act as a barrier to reducing costs, as it promotes a pricing agreement that keeps fees uniformly high across transactions.

In the United States, real estate commissions are notably higher than in many other countries and have remained consistent for the last thirty years despite the decreasing costs of comparable transactions. “The 6% commission fee does not accurately reflect the true costs of carrying out a real estate transaction,” states Hatfield. This discrepancy poses a significant question from an economic perspective, mainly because a few players do not dominate the real estate brokerage market. Theoretically, this should drive down fees through competition, which would be particularly beneficial for home buyers in a market where prices are at record highs.

However, this reduction in fees has not materialized. In a model developed by Hatfield and Lowery, along with Scott Kominers from Harvard Business School, they propose that widespread knowledge of commission rates can lead to collusion. If a broker attempts to lower their rates below the standard, other brokers might ostracise them. This can extend the time needed to sell a property and reduce the likelihood of its sale within 180 days. This model demonstrates how the transparency of commission rates, rather than fostering competition, may enable brokers to maintain high fees by agreeing tacitly not to undercut each other.

Hatfield has also conducted studies that show real-world instances of such ‘steering’. He discovered that properties with lower offered commissions were 5% less likely to be sold and took 12% longer. This suggests that the commission structure affects not only the costs but also the efficiency and speed of real estate transactions. It highlights the need for changes in how commissions are discussed and set within the industry.

While the settlement does not directly cap commissions, it forbids the inclusion of buyer agent commission details on MLS listings. However, seller agents can still discuss and share these commissions with buyer agents outside of the MLS context. “This type of communication could potentially reduce commissions,” suggests Lowery. “Our analysis indicates that allowing buyers and their agents to negotiate fees directly, rather than having them handled by the seller, could indeed lower the costs associated with real estate transactions. However, the effectiveness of this will depend significantly on the specific details of the settlement and its interpretation.” Hatfield recommends that buyers actively negotiate commissions with their agents, which could lead to more competitive pricing and reduced overall costs in real estate transactions.

More information: John Hatfield et al, Collusion in Brokered Markets, Journal of Finance. DOI: 10.1111/jofi.13432

Journal information: Journal of Finance Provided by University of Texas at Austin

Blockchain Enterprises Are Struggling – But It’s Not Due to the Technology

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A recent study from the University of Surrey has illuminated significant challenges within the blockchain startup ecosystem, revealing that up to 90% of blockchain initiatives are likely to fail. Interestingly, this high failure rate is not primarily due to shortcomings in the technology itself. Instead, the study points to a lack of strong leadership and clear strategic vision as the primary culprits. Blockchain, often heralded as a revolutionary business technology, demands more than technological adeptness; it requires robust management and clear objectives to thrive. Startups loaded with ambition but deficient in these critical areas tend to succumb to the weight of their aspirations.

The research, published in Operations Management, underscores a crucial yet often overlooked element of technological adoption: the importance of effective leadership. The findings suggest that many founders of blockchain companies lack the necessary authority and influence to guide their ventures to success. This leadership deficit critically impacts decision-making processes and the pursuit of innovative ideas, causing companies to stagnate. This challenges the assumption that the primary hurdles in adopting blockchain technology are merely technical, highlighting the pivotal role of founders’ managerial capabilities instead.

Professor Yu Xiong, a co-author of the study, emphasized the necessity of a “founder mode” moment. At this turning point, the influence and management style of the founders could decisively impact the company’s future. He pointed out that strong leadership can transform an embryonic idea into a successful enterprise, whereas weak governance is likely to doom even the most innovative projects. The professor noted specific problems in how decisions are made within these companies, with some founders adopting an overly democratic approach that, while inclusive, can lead to confusion and delays. For instance, if a team cannot reach a consensus on implementing a new feature for their blockchain service, the resultant indecision can lead to significant delays.

The study’s methodology included an in-depth analysis of five blockchain startups over five years, employing interviews, internal document reviews, and direct observations to gain insights into decision-making and management behaviour dynamics. The results indicate that the most successful founders seek inspiration beyond the blockchain sphere and adopt centralized decision-making styles that enable swift adaptation and innovation. This contrasts sharply with less successful startups, which often get caught in a cycle of internal exploration focused solely on blockchain, leading to slow progress and limited scalability.

Professor Xiong also highlighted the benefits of fostering a culture of creativity and encouraging cross-departmental collaboration, which can help startups better align their blockchain solutions with market demands. This approach enhances operational efficiency and helps avoid the pitfalls associated with adopting new technologies. Such strategies have proven critical in overcoming the barriers that have plagued many firms in the blockchain industry.

In conclusion, the study advocates for a paradigm shift in how blockchain technology is perceived and implemented. It calls on entrepreneurs and investors to acknowledge the critical role of founder influence in the success of blockchain initiatives. Shifting focus from a purely technical perspective to a more holistic view that includes leadership dynamics and strategic management could be the key to resolving many of the issues that have hindered the success of blockchain startups. This broader approach is essential for those in the blockchain industry who aspire to survive and thrive in this complex and rapidly evolving market.

More information: Yu Xiong et al, Success and Failure of Blockchain Technology Providers: Founders’ Power, Beyond-Blockchain Exploration and Centralized Decision-Making, Journal of Operations Management. DOI: 10.1002/joom.1364

Journal information: Journal of Operations Management Provided by University of Surrey