Author Archives: support

Looking to Enhance Employee Collaboration? Fresh Research Unveils Leadership Strategies to Achieve It

The operation of a workplace’s information technology (IT) system might easily be overlooked—until it malfunctions and disrupts daily activities. This underlines the crucial role IT specialists play in maintaining the smooth operation of a company’s virtual infrastructure.

As IT continues to become a cornerstone of modern business, leaders face the challenge of juggling the diverse priorities of IT personnel and those from other departments, such as marketing or finance.

A groundbreaking study co-authored by Associate Professor Surinder Kahai from Binghamton University, State University of New York’s School of Management, sheds light on an effective strategy for addressing this challenge. The research highlights the role of the Chief Information Officer (CIO) in fostering better collaboration between IT staff and other business units. According to the findings, when CIOs enhance mutual understanding between these groups, it leads to a more aligned integration of IT with business goals.

The tendency of employees to operate within their departmental silos often results in a myopic view of the challenges specific to their areas. Professor Kahai emphasizes the importance of CIOs establishing mechanisms that facilitate a deeper understanding of IT among business personnel and vice versa. “Our findings suggest that creating avenues for cross-departmental learning can promote self-sufficiency and alignment,” Kahai explains.

This study’s conclusions are based on data analyzed from 68 organizations drawn from a commercial IT executive database. While previous research has proposed methods for CIOs to foster alignment, it has not thoroughly addressed the leadership behaviours necessary to guide these efforts effectively.

As noted by Kahai and his colleagues, the ability to inspire and promote cooperation is a vital leadership skill for CIOs in today’s highly digitalized environments.

The study elaborates that CIOs are most effective when they combine transformational leadership behaviours—motivating teams towards a collective vision—with transactional behaviours, which involve motivating through rewards or penalties. “These leadership styles are complementary; high levels in both are necessary to motivate and reinforce actions that support IT-business alignment,” the study indicates. A purely tactical approach, focusing on explicit goals and performance reviews, may be less effective than a strategy that includes motivational and unifying elements.

Moreover, the research suggests that while IT and business employees should maintain their specialist knowledge, they must also share enough common understanding to drive alignment within their organizations.

“This research addresses a significant gap in understanding how leadership connects with IT alignment. Previously, the intuitive link between these areas was often overlooked, and little progress was made in resolving alignment issues due to the inherent need for change,” Kahai remarks. He points out that such change must be leadership-driven, as leaving it to employees to initiate may not suffice. This study not only reinforces the importance of leadership in IT alignment but also provides a clear pathway for leaders aiming to enhance the integration of IT within their business strategies.

More information: Mike Taein Eom et al, The Effect of Ambidextrous CIO Leadership on Strategic Alignment Through Knowledge Integration Mechanisms, ACM SIGMIS Database the DATABASE for Advances in Information Systems. DOI: 10.1145/3701613.3701616

Journal information: ACM SIGMIS Database the DATABASE for Advances in Information Systems Provided by Binghamton University

Oversized Corporations Hinder Economic Progress

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Recent studies indicate that the U.S. economy has been underperforming for the last two decades, with corporations investing a smaller portion of their profits into production expansion. This trend has resulted in an average annual GDP growth of 2.2% over the past 20 years, a decline from the previous rate of 3.2%. Economists attribute this slowdown to a lack of substantial investment opportunities.

However, research by two assistant finance professors from Texas McCombs suggests an alternative cause: the increasing size of companies. According to researchers Michael Sockin and Daniel Neuhann, industries have become more concentrated, leading to fewer, larger firms. This concentration has discouraged these companies from reinvesting their capital, particularly in sectors like U.S. banking, where the four largest banks control 53% of total assets.

The researchers argue that such concentration leads to capital misallocation, with firms underinvesting in areas like R&D and equipment, reducing overall productivity and economic welfare. This scenario is further compounded by the reluctance of large corporations to borrow, influenced by higher interest rates imposed by lenders on substantial loans.

This dynamic was particularly evident following the Great Recession of 2007-2009 when the U.S. economy recovered slowly despite low interest rates set by the Federal Reserve to spur borrowing and investment. Instead of leveraging these conditions, companies like Apple accumulated cash, choosing to save on interest costs rather than expand their operations.

Sockin and Neuhann’s model, which utilized economic data from 2002, accurately predicted various economic outcomes 14 years post-recession, highlighting persistent underinvestment despite lower borrowing costs. The contrast with the rapid economic recovery post-COVID-19, driven by substantial government stimulus, underscores their argument that market concentration can significantly hinder economic growth, particularly in challenging times when government intervention becomes crucial to ensure proper market functioning.

More information: Daniel Neuhann et al, Financial market concentration and misallocation, Journal of Financial Economics. DOI: 10.1016/j.jfineco.2024.103875

Journal information: Journal of Financial Economics Provided by University of Texas at Austin

Taxing Wealth Encourages Increased Savings

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Amidst the ongoing discussion around managing the enormous deficits faced by the United States, which frequently surpass the trillion-dollar mark, one proposed strategy for augmenting government revenue has targeted the nation’s wealthiest individuals. The suggestion is not to levy a tax on their annual earnings but rather on their accumulated wealth. This idea was put forward by U.S. Senator Elizabeth Warren of Massachusetts, who proposed a wealth tax that would impose a 2% tax on net worth exceeding $50 million and a 3% tax on net worth over $1 billion. Despite its introduction, this proposal has not been brought to a vote, and it has attracted criticism because it could potentially decrease the gross domestic product by diminishing the incentive for people to save.

However, a recent study conducted by the Texas McCombs School challenges the assumption that wealth taxes necessarily deter savings. Assistant Professor of Finance Marius Ring examined the tangible impacts of a wealth tax through a case study of Norway, among the few nations that currently enforce such a tax. Contrary to expectations, Professor Ring’s findings indicate that imposing a wealth tax may encourage individuals to save more. He stated, “Wealth taxation does not appear to diminish the amount that people save. Taxing someone’s savings does not necessarily mean they will opt to save less.”

In Norway, where a wealth tax of 1% is levied on assets over $160,000—affecting 15% of the taxpaying population—Professor Ring analyzed geographical variances in tax assessment from 2005 to 2015, correlating this data with third-party information on household savings, housing characteristics, and transaction prices. His research uncovered that for every additional Norwegian Krone paid in wealth taxes, households increased their net savings by 3.76 NOK annually. Interestingly, these savings predominantly resulted from increased work efforts rather than reduced consumption. This is explained by what economists term the income effect, where higher earnings lead to increased consumption.

Professor Ring elaborates, “This relates to how people find it unpleasant to reduce their consumption. If someone has their heart set on purchasing a specific type of RV at retirement, they may find it less painful to work more, thereby increasing their savings, rather than cutting back on their current consumption.” Moreover, the study noted that individuals affected by higher wealth taxes did not necessarily work longer hours; instead, they prolonged their involvement in the workforce, delaying retirement.

Furthermore, Professor Ring’s findings indicated that higher wealth taxes did not alter how people allocated their investment portfolios, with those subjected to more enormous tax liabilities continuing to invest similar proportions of their financial wealth in the stock market. Ring’s research focused primarily on the moderately wealthy—specifically, those within the 85th to 90th percentile of wealth distribution. Nevertheless, he speculated that the ultra-rich might respond similarly to a wealth tax, possibly saving even more, especially if their priority leans more towards accumulating wealth than spending it, such as in efforts to expand business empires.

While Professor Ring clarified that his study was not intended to provide policy recommendations for or against a wealth tax, it does challenge one of the primary arguments against such a tax by demonstrating that it does not invariably discourage saving. The broader implications of his research suggest considerations for designing an optimal tax system, with economists generally advocating for taxes that cause minimal distortions or alterations in people’s behaviours. According to Ring, a wealth tax could meet this criterion, though he also points out that other taxes on savings, like those on dividends or capital gains, might also achieve this goal. Ultimately, while Ring’s findings do not explicitly endorse a wealth tax over other types of wealth-based taxes, they do contribute to a nuanced understanding of the potential effects of such a tax on savings behaviours.

More information: Marius Ring et al, Wealth Taxation and Household Saving: Evidence from Assessment Discontinuities in Norway, The Review of Economic Studies. DOI: 10.1093/restud/rdae100

Journal information: The Review of Economic Studies Provided by University of Texas at Austin

Smoking Could Result in Lower Earnings

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A recent publication in Nicotine & Tobacco Research, issued by Oxford University Press, explores the detrimental impact of smoking on income levels among younger employees, with a pronounced effect observed in those with less educational attainment.

The well-documented health hazards of smoking are extensive, encompassing a heightened risk of various cancers, respiratory complications, and cardiovascular diseases. In 2019, smoking was responsible for around 14% of all fatalities. Despite a decline in smoking rates since the 1990s, a significant portion of the population in high-income nations continued to smoke in 2019, with 18% of women and 27% of men reported as smokers.

Additionally, smoking has been linked to poorer outcomes in the labour market, possibly due to its adverse effects on labour productivity. This is particularly evident in jobs that demand physical exertion, as smoking impairs physical fitness and overall performance. Furthermore, the stigma associated with smoking could lead to bias and discrimination in the workplace, affecting smokers’ employment opportunities and progression.

The study utilised data from the Cardiovascular Risk in Young Finns Study, a longitudinal investigation involving 3,596 individuals from urban and rural settings across five Finnish university regions, born between 1962 and 1977. This data was correlated with employment outcomes sourced from Statistics Finland and parental background information obtained from the Longitudinal Population Census through personal identifiers. The research spanned from 2001, tracking individuals aged between 24 and 39.

Smoking habits were evaluated using “pack-years,” a metric that quantifies total tobacco exposure by multiplying the average daily cigarettes consumed by the number of years since the individual started smoking. For example, a 10-pack-year smoking history indicates a decade of consuming one pack of cigarettes each day.

The findings revealed that each additional pack year was linked to a 1.8% reduction in earnings. This suggests that decreasing smoking by five pack-years could enhance earnings by up to 9%. Moreover, the study noted a 0.5% decline in employment years for every pack-year increase.

There was a noticeable disparity in earnings between smokers and non-smokers among the younger demographic, especially among those with lower educational levels. In contrast, no significant differences were observed among older individuals. This indicates that smoking could have a more profound negative impact on the labour market prospects of younger generations, where smoking rates are generally lower.

The researchers found that the negative correlation between pack years and employment was only significant among current smokers, not among those who had previously smoked.

The study’s lead author, Jutta Viinikainen, highlighted the findings, stating, “Smoking in early adulthood is intricately linked to long-term earnings and employment, with the most severe repercussions felt by those with lower educational backgrounds. These insights underscore the necessity for policies that not only address the hidden economic costs associated with smoking but also encourage healthier lifestyle choices.” This body of research adds a crucial economic perspective to the ongoing public health dialogue, advocating for more stringent anti-smoking initiatives that could alleviate both health and economic burdens posed by tobacco consumption.

More information: Jutta Viinikainen et al, Tobacco Smoking in Early Adulthood and Labor Market Performance: The Cardiovascular Risk in Young Finns Study, Nicotine & Tobacco Research. DOI: 10.1093/ntr/ntae296

Journal information: Nicotine & Tobacco Research Provided by Oxford University Press USA

How Does Economic Development Truly Benefit Individuals?

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A recent study from the University of Portsmouth advocates integrating human rights at the core of economic development. Authored by Professor Leïla Choukroune and Dr Lorenzo Cotula and published in the Business and Human Rights Journal, the research scrutinises the impact of international investment agreements and dispute resolutions, which often sideline the interests of local communities and indigenous peoples in favour of economic expansion, thereby compromising inclusive and sustainable growth.

The analysis conducted by the researchers brings to light the prevalent orientation of international investment law, favouring a developmental model heavily skewed towards economic acceleration and market integration, often at the expense of cultural, environmental, and social considerations. Professor Choukroune, who holds the position of Professor of International Economic Law and is the forthcoming Director of the Global Justice and Rights Centre of Excellence, underscores the real-world implications of such developmental projects across various regions, from Colombia to Peru and Nigeria to Indonesia. These initiatives, while ostensibly aimed at development, have repeatedly resulted in environmental damage, displacement, and violations of human rights.

For instance, in Colombia, mining activities threaten the Paramos high-mountain ecosystems, which are crucial for water supply and biodiversity. In Peru, indigenous leaders face criminal charges for their resistance against mining endeavours, as exemplified by the Bear Creek mining investment debacle. Nigeria has witnessed devastating community impacts from oil spills and pollution from corporations like Shell, leading to significant international legal disputes concerning corporate responsibility. Meanwhile, in Indonesia, communities are battling for justice concerning human rights abuses linked to major corporate entities, highlighted by ExxonMobil’s recent settlement in a prolonged torture lawsuit.

Professor Choukroune elaborates on the need for a transformative approach to development that prioritises human rights and positions local communities and indigenous peoples at the forefront of development strategies. This perspective aligns with ongoing debates regarding the right to development. It is in step with the United Nations’ initiative to promote a legally binding treaty that foregrounds equality, human rights, and environmental respect. Such a treaty would refocus national and local development efforts, ensuring participatory decision-making encompassing those directly impacted by development projects.

The study further discusses the necessity for a paradigm shift in how international economic law frames development, advocating for a model that balances economic objectives with the needs and rights of local and indigenous communities. This includes acknowledging Indigenous rights within large-scale international investments, specifically the right to free, prior, and informed consent, and establishing legal frameworks that cater to diverse developmental visions.

Moreover, the research highlights the urgency of facilitating access to effective remedies for communities and stakeholders involved in international investment schemes. As global inequalities continue to intensify, and as the UK approaches its human rights evaluation by the United Nations, there is an evident and pressing need to re-evaluate the definitions and beneficiaries of development.

In conclusion, the Portsmouth study argues for reintegrating human rights into the fabric of international economic law, aiming to foster fairer, more sustainable, and inclusive development outcomes that genuinely serve the most vulnerable segments of the population. This approach challenges traditional economic development paradigms and champions a more equitable distribution of benefits, ensuring that development genuinely benefits all stakeholders.

More information: Leïla Choukroune et al, ‘Local Communities’ and the Development Conundrum: Where International Investment Law Meets Human Rights and Businesses, Business and Human Rights Journal. DOI: 10.1017/bhj.2024.22

Journal information: Business and Human Rights Journal Provided by University of Portsmouth

Are A-B Tests Misleading Market Researchers and Online Advertisers? New Research Suggests They Might

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Researchers at Southern Methodist University and the University of Michigan have released a study in the Journal of Marketing that scrutinises the A-B testing of online advertisements on platforms and reveals significant flaws that may lead to incorrect conclusions regarding ad performance.

Michael Braun and Eric M. Schwartz co-authored the study. Consider a scenario involving a landscaping firm prioritising native plants and water conservation in its designs. The company crafts two distinct advertisements: one highlighting sustainability (ad A) and another emphasising aesthetics (ad B). Due to platforms personalising ad delivery, ads A and B reach different demographic groups. Users interested in outdoor activities might encounter the sustainability ad, while those keen on home decor could see the aesthetics ad. This targeted advertising approach is crucial as it seeks to present the “right” ads to the “right” users, adding significant value for advertisers.

However, Braun and Schwartz’s research indicates that the reliability of insights provided by online A-B testing on digital advertising platforms may not be as robust as marketers believe. They identify key limitations within the tools for online ad experimentation, which could lead to misleading interpretations of ad effectiveness.

The concept of “divergent delivery” is central to their critique. This phenomenon occurs when algorithms on platforms like Meta and Google target different user groups with distinct ads during A-B testing. This experimental approach is intended to compare the effectiveness of two ads. Still, issues arise when an ad performs better simply because it was shown to users more likely to respond rather than due to the ad’s content itself. Braun points out that the performance of an ad can appear variably better or worse depending on the user demographics rather than the creative quality of the ad.

The ability to target effectively is invaluable for advertisers, especially those with large target audiences and finite budgets. Major companies like Google and Meta use algorithms to distribute ads to specific users. In these platforms’ auctions, advertisers compete to display their ads to users, with winners determined not just by bid amounts but also by the relevance of the ad content to the user. However, the criteria and methodologies used by these platforms to assess ad relevance and influence auction outcomes are proprietary and not transparent to advertisers.

The implications of these findings are significant for marketers who depend on A-B testing to shape their online advertising strategies. According to Schwartz, “Because of low cost and seemingly scientific appeal, marketers use these online ad tests to develop strategies even beyond just deciding what ad to include in the next campaign. So, when platforms are not clear that these experiments are not truly randomised, it gives marketers a false sense of security about their data-driven decisions.”

The researchers argue that the problems identified are not merely technical issues with the tools but reflect a fundamental characteristic of the online advertising industry. The primary aim of these platforms is to maximise ad performance, not to deliver experimental results that marketers can independently assess. Consequently, these platforms have little incentive to help advertisers distinguish the effects of ad content from the impact of proprietary targeting algorithms. This leaves marketers in a challenging position where they either accept potentially confounded results from these tests or invest in more elaborate and expensive methods to understand the influence of creative elements in their ads genuinely.

The study employs simulation, statistical analysis, and real-world examples from A-B tests to support its argument, challenging the prevalent belief that A-B test results can be equated with those from randomised experiments. Marketers need to recognise these limitations, allowing them to make more informed decisions and avoid the pitfalls of misinterpreting data from these tests.

More information: Michael Braun et al, Where A/B Testing Goes Wrong: How Divergent Delivery Affects What Online Experiments Cannot (and Can) Tell You About How Customers Respond to Advertising, Journal of Marketing. DOI: 10.1177/0022242924127588

Journal information: Journal of Marketing Provided by American Marketing Association

Does a Mid-Career Crisis Truly Exist? New Study Reveals Job Satisfaction Dips and Rises in a U-Shaped Curve Solely Among Highly Skilled Employees

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Contrary to the widespread belief that the mid-career crisis affects everyone, recent research highlights that only managerial and professional workers experience a U-shaped trajectory in job satisfaction. This striking revelation challenges long-standing societal views about midlife and underscores the necessity for reevaluating how workplace support is extended to individuals in their 40s and 50s.

The research, detailed in the Socio-Economic Review, scrutinised the link between age and job satisfaction by utilising data from four primary UK national datasets—namely, the UK Skills and Employment Survey, the Workplace Employee Relations Survey, the British Household Panel Survey, and the UK Household Longitudinal Study. These datasets encompass the experiences of over 100,000 workers from diverse industries, occupations, and regions. By examining both cross-sectional and longitudinal data, the study aimed to deliver an exhaustive insight into the evolution of job satisfaction throughout different career stages.

Professor Ying Zhou, the study’s lead author and the Director of the Future of Work Research Centre at the University of Surrey, commented on the findings: “While dissatisfaction among middle-aged workers is commonplace, it’s vital to recognise that this experience isn’t universal. Our research shows that for managers and professionals, job satisfaction typically reaches its nadir during their 40s but often recovers later. In stark contrast, employees in intermediate and lower occupational tiers do not exhibit this U-shaped pattern. This finding contradicts the prevalent assumption that a mid-career crisis is an inevitable, universal stage.”

The implications of this study are significant for understanding workplace dynamics and employee well-being. For middle-aged workers, acknowledging that a dip in job satisfaction during their 40s is pretty standard may provide some solace. Instead of viewing midlife as a tranquil interval between the challenges of early adulthood and later life, it should be approached as a complex transition period marked by frustration and despondency. However, it is reassuring to note that this phase is typically temporary, with brighter prospects on the horizon.

Moreover, the study highlights the imperative for organisations to tailor their support systems to meet better the needs of employees entering their 40s and 50s. By cultivating a workplace that promotes career advancement and personal fulfilment, businesses can diminish the likelihood of dissatisfaction and foster a more positive workplace culture. As the UK grapples with the realities of an ageing workforce, gaining a deeper understanding of these dynamics is increasingly critical. The findings suggest that companies can enhance retention rates and workforce engagement by addressing the specific needs of skilled workers, benefiting the broader economy.

More information: Ying Zhou et al, Is there a mid-career crisis? An investigation of the relationship between age and job satisfaction across occupations based on four large UK datasets, Socio-Economic Review. DOI: 10.1093/ser/mwae072

Journal information: Socio-Economic Review Provided by University of Surrey

Recent research emphasises American public preference for eco-social initiatives above economic expansion

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A recent study has shed light on increasing public support in the United States for eco-social policies addressing contemporary ecological and social crises. Conducted by the Institute of Environmental Science and Technology at the Universitat Autònoma de Barcelona (ICTA-UAB) and the London School of Economics (LSE), the research assessed public backing for four innovative eco-social initiatives: the reduction of working hours to as few as 28 hours per week, the scaling down of fossil fuel production, the provision of universal essential services, and the imposition of limits on advertising for high-emission goods.

Published in the journal Ecological Economics, the study also examined how individual consumption-reduction behaviours—such as adopting plant-based diets, avoiding flights, and opting for sustainable transport methods like walking or cycling—affect support for these policies. Moreover, it examined the effect of presenting these proposals within a broader agenda of societal transformation, encompassing concepts like degrowth, although not explicitly using the term.

Among the most significant findings, the research revealed that, on average, participants preferred these eco-social policies over the existing ones. There was firm support for annual caps on fossil fuel extraction and the introduction of universal healthcare. Additionally, individuals who actively engaged in sufficiency behaviours were more inclined towards supporting ecological policies, especially restrictions on fossil fuel use. However, backing for socially oriented measures, such as reduced working hours and universal healthcare, appeared more variable and dependent on other factors.

The analysis indicated that support for these social policies tended to be higher among individuals who embody eco-social values and possess higher levels of privilege, including those with full-time employment, advanced education, and higher income. Intriguingly, framing the policies within an eco-socialist and post-growth narrative did not diminish support; in some instances, it enhanced it, as observed with universal healthcare.

Despite the mounting demands from scientists and civil society groups for dismantling the fossil fuel industry, policymakers continue to favour a ‘green growth’ strategy. The findings from this study suggest that the U.S. electorate is amenable to policy agendas that reduce reliance on fossil fuels and enhance the quality of life for citizens. Notable among these is the recognition of universal healthcare as a human right—accessible to all irrespective of employment or socio-economic status—and reduced working hours as a means to promote overall well-being.

These policy agendas transcend traditional growth-centric goals to embrace eco-social objectives. The study’s authors advocate for transition plans for polluting industries, which could garner widespread support. “Eco-social policy agendas can protect workers and aid them in transitioning to new jobs that benefit society without harming the planet,” noted Dallas O’Dell, the lead researcher from ICTA-UAB.

However, the study also warns that the levels of privilege among citizens must be considered when promoting individual sufficiency behaviours. O’Dell pointed out, “Encouraging reduced consumption among those with lesser privilege could provoke a backlash against broader policies, particularly those with a social dimension.”

This research paves the way for new communication and mobilisation strategies for a more equitable and inclusive socio-economic transition that enhances well-being and reduces dependency on economic growth. The authors stress the need for further studies to effectively tailor and communicate these policies to spark an eco-social movement that resonates with diverse audiences across all socio-economic levels.

Election results have highlighted a potential contradiction in public opinion. According to Dallas O’Dell, the findings may seem inconsistent with the outcomes of recent elections that saw Donald Trump victorious. It’s important to note that the surveys were conducted when Trump’s campaign was less active, allowing respondents to reflect on the policies discussed in a less politicised environment. Neither the Republican nor Democratic campaigns prioritised concrete policy proposals; instead, they focused on broader ideological narratives.

Consequently, voters’ choices might not directly correlate with their support for the policies discussed in the study. Despite their votes for Trump, many younger voters aligned more closely with eco-social policies focusing on economic and climate concerns, indicating a preference for more significant government intervention in healthcare and student debt relief. This discrepancy underscores the complexity of voter motivations and the need for ongoing dialogue and research into public policy preferences.

More information: Dallas O’Dell et al, Public support for degrowth policies and sufficiency behaviours in the United States: A discrete choice experiment, Ecological Economics. DOI: 10.1016/j.ecolecon.2024.108446

Journal information: Ecological Economics Provided by Universitat Autonoma de Barcelona

Advancing Intercultural Communication: The Need for Diverse Teaching Methods

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A recent study by academics at the University of Jyväskylä and the University of Eastern Finland underscores the importance of adopting various methodologies in teaching intercultural communication, particularly within international business contexts.

Intercultural communication is a vital component of the international business and sales management syllabus, yet current teaching methods tend to concentrate on national cultural structures and their differences. The study, authored by University Lecturer Lotta Kokkonen and Associate Professor Jonna Koponen, argues for a comprehensive understanding and implementation of three distinct cultural perspectives: positivist, interpretive, and critical.

The positivist perspective views culture as a static system that allows for comparisons between different cultures, often utilized in analyzing business negotiation styles. The interpretive perspective highlights the role of social interactions in the construction and evolution of culture, focusing on individual and group experiences. Conversely, the critical perspective examines structural inequalities, power dynamics, and societal discourses.

Kokkonen and Koponen advocate for applying interpersonal knowledge theory, which stresses the importance of authentic interactions between individuals. This approach challenges the sufficiency of understanding cultural norms and promotes building trust in international business relationships through deeper interpersonal engagement.

The researchers emphasize the necessity of recognizing the multifaceted nature of culture in teaching settings, encouraging students to view cultural phenomena from various angles. This approach aims to enhance students’ ability to manage real-world intercultural interactions effectively, notably in developing international customer relationships.

This study provides crucial insights for higher education and businesses aiming to refine their intercultural communication strategies within the international business arena.

More information: Lotta Kokkonen et al, Teaching Interculturality: Considering Three Different Cultural Approaches in Intercultural Business Relationships, Business and Professional Communication Quarterly. DOI: 10.1177/23294906241302002

Journal information: Business and Professional Communication Quarterly Provided by University of Eastern Finland

AI-driven Technique Evaluates Depression Among Business Executives

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Researchers at the Indiana University Kelley School of Business have pioneered a new method to detect depression in CEOs using machine learning algorithms that analyse vocal acoustic features from conference call recordings. Published in the Journal of Accounting Research, this method presents a groundbreaking way to address a mental health concern that frequently goes unnoticed within the demanding environment of executive leadership.

The study delves into the relationship between CEO depression and career metrics such as compensation and incentives. The results reveal that CEOs exhibiting higher levels of depression often receive larger compensation packages, with a significant portion of this compensation tied to performance metrics. Furthermore, depression among CEOs correlates with an increased likelihood of their departure being tied to performance outcomes. This pattern indicates that CEOs suffering from depression are more sensitive to negative feedback, while their response to positive feedback is notably subdued.

Assistant Professor Nargess Golshan highlighted the importance of further research due to the prevalence of depression among executives. The objective is to understand better the factors contributing to depression, its impact on business decisions, and practical strategies for managing mental health within leadership roles. Such studies are essential for developing a more comprehensive approach to tackling mental health issues in high-stress professional settings.

More information: Nargess Golshan et al, Silent Suffering: Using Machine Learning to Measure CEO Depression, Journal of Accounting Research. DOI: 10.1111/1475-679X.12590

Journal information: Journal of Accounting Research Provided by Wiley

Recent Study Reveals How External Competitions Influence Teamwork in the Workplace

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A recent study in the Strategic Management Journal explores a significant but often overlooked aspect of workplace dynamics: the influence of employees’ external affiliations with rival organisations on internal collaboration. This research was carried out by Thorsten Grohsjean from Bocconi University, Henning Piezunka of The Wharton School, and Maren Mickeler from ESSEC Business School. The team focused on how competitive relationships outside an organisation disrupt teamwork within it, providing essential insights for managers across various industries.

The study focuses on a unique workplace scenario—colleagues affiliated with competing organisations outside their primary employment. This research employed the professional football industry as a testing ground, revealing that employees with dual affiliations tend to collaborate less effectively in their primary workplace. This phenomenon highlights the dual challenges of external competition and personal rivalries, illustrating how they can spill over into and disrupt normal workplace operations.

To address these issues, the researchers suggest several strategies that leaders can implement to mitigate the negative impacts of such affiliations. First, organisations should monitor employees’ external engagements, particularly those that intersect with competitors, to prevent potential conflicts. Second, fostering a unified organisational identity can help reduce the influence of external rivalries. Lastly, encouraging open dialogue among employees about their external affiliations can help address and resolve potential conflicts, promoting a healthier, more collaborative work environment.

Thorsten Grohsjean, the study’s lead author, stresses the importance of recognising and managing these extra-organisational affiliations to improve workplace collaboration. “Extra-organisational affiliations are a hidden but pervasive factor affecting workplace dynamics,” said Grohsjean. “Managers must recognise and address these affiliations to mitigate their impact on internal collaboration.”

The research methodology involved analysing data from over 3,500 football matches across Europe’s top leagues, leveraging a unique setting where club teammates competed as national rivals during the 2018 FIFA World Cup. This quasi-experimental approach allowed the researchers to isolate the effects of competitive affiliations on collaboration, offering a clear and robust analysis of how external ties influence internal teamwork dynamics. This study provides a comprehensive look at the challenges and strategies involved in managing external affiliations within the workplace, serving as a valuable resource for organisational leaders aiming to foster a more collaborative and productive work environment.

More information: Thorsten Grohsjean et al, When colleagues compete outside the firm, Strategic Management Journal. DOI: 10.1002/smj.3667

Journal information: Strategic Management Journal Provided by Strategic Management Society

The Impact of Comparable News Stories on Financial Markets

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Have you ever stumbled upon a series of similar business news stories on a particular topic during an online search, only to find that despite appearing on various platforms, they all seem remarkably alike? This phenomenon may arise because the news outlets are under the same corporate umbrella—a trend increasingly observed nationwide as media companies navigate shrinking resources.

Flora Sun, an assistant professor of accounting at Binghamton University’s School of Management, delves into this issue in her latest study. She explores how business news outlets owned by the same parent company are more likely to produce homogenised content. This homogeneity could potentially undermine financial markets by limiting the diversity of news, thereby hampering investors’ ability to interpret crucial information from earnings reports effectively.

Sun explains, “The market could be adversely impacted by such uniform coverage, as the pace at which stock prices reflect new information may slow down. This happens because there isn’t a sufficient variety of viewpoints to balance each other out, eventually aiming for an efficient market price.” She emphasises the startling realisation that subscribing to multiple newspapers or online news sites might not provide varied information if a single media conglomerate owns those sources.

The research analysed news articles about earnings announcements across 34 major media outlets involving 4,462 publicly traded companies from 2007 to 2019. In total, 288,385 articles concerning 95,820 earnings announcements were reviewed. Using a range of statistical methods to scrutinise the data, Sun and her colleagues observed that media outlets within the same group tend to adopt similar narrative styles and language, even in their headlines and article content.

The study highlights a significant yet often overlooked issue: these media outlets’ apparent independence belies their consolidation, potentially diminishing their role as neutral information intermediaries. The researchers argue that today’s economic pressures may push media outlets to prioritise content sharing over maintaining distinct journalistic standards. This practice of sharing content is particularly prevalent among outlets of networks with high audience reach, further incentivising homogeneity.

“It’s crucial to note that this research does not accuse the media of inherent bias,” Sun clarifies. “Rather, it sheds light on a scenario prevalent in today’s media landscape, of which investors and the general public should be aware.” This study underscores the need for vigilance among news consumers and financial market participants, who may not realise the extent of media consolidation and its possible effects on the diversity and quality of information.

More information: Flora Sun et al, Common Media Holding Companies and the Uniqueness of Business Press Content, The Accounting Review. DOI: 10.2308/TAR-2023-0191

Journal information: The Accounting Review Provided by Binghamton University