Author Archives: support

How Retailers Adjust Their Ordering Tactics When Suppliers Launch Direct Sales Channels

Researchers from Erasmus University and KU Leuven have published a study in the Journal of Marketing that delves into retailers’ reactions when suppliers initiate direct sales channels to consumers, and the measures suppliers can undertake to preclude negative reactions from these retailers.

The research, set to appear in the Journal of Marketing, is titled “How Retailers Adjust Their Ordering Strategies in Response to Suppliers Initiating Direct Sales” and has been authored by Michiel Van Crombrugge, Els Breugelmans, Femke Gryseels, and Kathleen Cleeren.

A pertinent example is Sony’s recent strategy to sell PlayStation products through its PlayStation Direct online store in the UK, which involves products sold at major retail outlets like Currys and Argos. This strategy, known as encroachment, is seen with other companies such as Nike and Lego, which have also set up direct channels for consumers. While these channels provide suppliers with increased control and visibility over the customer experience, they can potentially alienate and upset retail partners who might see these channels as direct competitors.

This scenario prompts a critical question for suppliers: How will retailers react regarding their ordering strategies with suppliers who encroach on their sales territory? Will retailers withdraw and reduce their orders, leading to higher wholesale prices (an exit response), or will they seek to negotiate better terms, potentially leading to more favourable wholesale prices and increased orders (a voice response)?

The study explored these dynamics by examining the responses of nearly 2,000 retailers when a supplier introduced a webshop in the toy industry. Findings indicate that retailers predominantly opt for an exit response when confronted with direct sales channels from suppliers.

Van Crombrugge reveals that the typical retailer response is to disengage. This is reflected in a decrease in the number of different stock-keeping units (SKUs) ordered, coupled with wholesalers increasing prices to reflect deteriorating trade terms. Specifically, retailers cut back on the number of distinct SKUs by an average of 15 (or 18.75%) following the introduction of the direct channel. Due to these reduced orders, they also end up paying an average wholesale price increase of €0.79 (or 20.84%). Despite the rise in wholesale prices, the total value of orders from the typical retailer at the supplier drops by €399.50 (or 11.69%) in the first six months following the direct channel’s launch.

As noted by Breugelmans, the power dynamics between retailers and suppliers also play a crucial role. Larger, more powerful retailers are less likely to terminate their relationships with suppliers than their smaller counterparts. For the largest retailers, no change in order value is observed. Gryseels points out that this is likely due to the confidence these powerful retailers have in the continued support from their suppliers despite the new sales channels.

Specialist retailers respond differently from generalist ones. They are influenced by their higher switching costs and the direct channel, posing a more significant threat to their primary business, often leading to stronger emotional responses and a higher likelihood of disengagement.

Cleeren notes that, surprisingly, the relationship quality between the retailer and supplier has less impact on the retailer’s reaction than anticipated. Only in exceptionally strong relationships does it mitigate the retailer’s likelihood of terminating the relationship.

For Chief Marketing Officers, these findings underscore the complexities and risks associated with direct-to-consumer sales channels. While such strategies can bring suppliers closer to their end customers, the potential backlash from retailers, particularly smaller ones, can lead to significant order reductions. Suppliers must carefully manage their relationships with smaller retailers, possibly by offering specific incentives to boost confidence and encourage continued business relations. Additionally, suppliers could mitigate the competitive impact of direct channels by differentiating the products, prices, or services offered through these channels compared to what is available through traditional retailers, such as providing channel-specific exclusives or online-only personalisation options.

More information: Michiel Van Crombrugge et al, How Retailers Change Ordering Strategies When Suppliers Go Direct, Journal of Marketing. DOI: 10.1177/00222429241266576

Journal information: Journal of Marketing Provided by American Marketing Association

Empathetic and Sensitive: Exploring the Dual Characteristics of Highly Sensitive Individuals in the Workplace

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Work-related stress transcends geographical boundaries, with its impact felt globally. A forthcoming study from Japan focuses on a unique subgroup within the workforce: Highly Sensitive Persons (HSPs) who experience stress differently due to their acute sensitivities to external factors. While prone to higher stress levels, this group also exhibits increased levels of empathy, which could prove beneficial within organisational contexts.

This research by Osaka University scholars, set to be published in the Japanese Journal of Applied Psychology, indicates a positive correlation between the scores for HSPs and work stress, independent of personality traits such as optimism or pessimism. Moreover, the correlation between HSP scores and empathy suggests that the heightened sensitivity of HSPs enhances their stress perception and equips them to forge deeper connections with their peers, thereby contributing positively to the work environment.

Recognising work stress as a significant contributor to premature job turnover, job dissatisfaction, emotional burnout, reduced productivity, and even suicidal tendencies is crucial, particularly in Japan, where early turnover among the youth is a pressing public concern. Identifying individual differences in stress response is critical to developing targeted strategies for employee support.

In February 2022, the research team conducted an online survey with 296 working adults over 18. The findings revealed that 26% of the working population could be categorised as HSPs, underscoring the substantial segment of employees potentially under higher stress.

Lead author Tomohiro Ioku expressed surprise at the prevalence of HSPs in the workforce, highlighting the widespread impact of stress. Moreover, the study found that HSPs tend to exhibit greater empathy towards their colleagues, which not only aids in establishing a more nurturing work environment but connects them deeply with others.

Senior author Eiichiro Watamura elaborated on the implications of these findings, noting that while HSPs are more vulnerable to stress, their profound empathy is a crucial asset to organisations, especially in roles that demand robust interpersonal skills.

The research underscores the necessity for workplaces to consider the diverse needs of their employees when designing and managing support systems. Traditional approaches like mentoring programs might need to be revised if they address the specific needs of HSPs.

Tomohiro Ioku highlighted the importance of crafting more inclusive and supportive workplace environments to enhance employee retention and well-being. By recognising and accommodating HSPS’ unique traits, organisations can improve productivity and increase employee satisfaction.

The researchers are hopeful that their work will spark further investigations into the positive attributes of HSPs and lead to the development of work environments that acknowledge and support the characteristics of this distinct group, thereby fostering greater productivity and employee satisfaction.

More information: Tomohiro Ioku et al, Are the Highly Sensitive Person at Work Likely to Feel Stressed and Empathetic? Japanese Journal of Applied Psychology. DOI: 10.24651/oushinken.50.1_11

Journal information: Japanese Journal of Applied Psychology Provided by Osaka University

How Marketers Can Draw Insights from the Caitlin Clark vs. Angel Reese Rivalry: Emphasising Intersectionality

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In a recent study from the University of Washington, Loyola Marymount University, and the University of Texas at Austin, published in the Journal of Marketing, a new framework has been introduced to enhance the incorporation of intersectional marketing practices within marketing research. The research paper, set to be published under the title “Intersectionality in Marketing: A Paradigm for Understanding Understudied Consumers”, is a collaborative effort by Esther Uduehi, Julian Saint Clair, and Rowena Crabbe. This study presents a significant shift towards understanding and addressing the multi-layered experiences of consumers, particularly within the sphere of female sports such as the WNBA.

The backdrop for this study is the ongoing narrative in the Women’s National Basketball Association (WNBA), centred around the rivalry between Caitlin Clark of the Indiana Fever and Angel Reese of the Chicago Sky. This rivalry has sparked conversations about the potential of young, talented players like Clark and Reese to propel the growth of the WNBA. However, the conversation often overlooks how intersecting identities such as race and gender broadly shape the marketing strategies surrounding their teams and the league. This oversight points to a critical gap in scholarship, which the study aims to address by exploring intersectionality as a vital lens to comprehend the dynamics of female sports.

The study offers a framework and provides a detailed roadmap on how marketing research can more effectively integrate intersectional marketing practices. This approach involves a series of methodical steps, enabling researchers and practitioners to better understand complex issues like racial disparities in sports and how these might contrast with other leagues, such as the NBA. Through this, marketing is better equipped to anticipate and skillfully navigate these occurrences.

Intersectionality, as the study outlines, examines systems of privilege and oppression (like racism, sexism, and classism) and considers how these systems intersect to affect consumer experiences in the marketplace. Esther Uduehi highlights the importance of intersectionality in offering a transformative perspective that shifts how marketing and consumption are viewed. The study identifies critical components essential for engaging with intersectionality, which include defining intersectionality by recognising overlapping identities and their impacts, adopting an intersectional framework to centralise consumers’ experiences, and employing a detailed roadmap for operationalising intersectionality in marketing practices.

For instance, the study discusses the differing market experiences of Angel Reese and Caitlin Clark, noting how Reese’s identity as a Black woman and Clark’s as a White woman shape their visibility and impact in the sports industry. These differences underscore the importance of understanding how race and gender intersect to influence consumer experiences uniquely.

Moreover, the paper emphasises the need for critical reflection throughout the marketing process, from research to brand strategy and policy making. It challenges marketers to consider whose identities are being focused on, who are excluded, and the roles of power and privilege in these dynamics. This reflection is crucial in avoiding generalisations and ensuring that marketing strategies are inclusive and representative of diverse consumer groups.

The authors also advise Chief Marketing Officers (CMOs) on crafting marketing strategies that recognise and address the nuances of intersectional identities. This includes questions about how norms, access to resources, and power differentials at various intersections influence stakeholders’ experiences and behaviours. The paper calls for re-evaluating the data and perspectives that form the basis of marketing policies, urging inclusivity and representation in decision-making processes.

Rowena Crabbe’s commentary in the study underscores the transformative potential of embracing intersectionality within marketing. By acknowledging and addressing the power structures within the marketplace, marketing increases its societal benefits. It enhances its capacity to reflect and respond to the complexities of real-world consumer behaviour.

In conclusion, this intersectional marketing paradigm and its accompanying research design roadmap offer comprehensive directions and recommendations for researchers. These tools equip marketers to stay at the forefront of inclusive and practical solutions, fostering a deeper understanding of the diverse and intersectional world that consumers navigate. This study marks a pivotal step towards enriching marketing research and practice by embracing consumer identities and experiences.

More information: Esther Uduehi et al, Intersectionality in Marketing: A Paradigm for Understanding Understudied Consumers, Journal of Marketing. DOI: 10.1177/00222429241258493

Journal information: Journal of Marketing Provided by American Marketing Association

Studies Indicate That Anxiety Over Personal Finances Can Lead to Abusive Behaviour by Leaders in the Workplace

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Recent findings from Colorado State University suggest that leaders experiencing financial distress are more likely to mistreat their subordinates, with this tendency being more pronounced among male leaders.

The research, detailed in the Journal of Occupational Health Psychology, was spearheaded by Assistant Professor Keaton Fletcher from the Department of Psychology and Associate Professor Trevor Spoelma from the Anderson School of Management at the University of New Mexico. By analysing responses from surveys filled out by both leaders and their subordinates, the study established a clear link between financial stress and abusive supervision. This association was significantly stronger in men than women, possibly reflecting societal expectations about gender roles.

The paper delves into the reasons behind these dynamics, suggesting that traditional gender norms may explain why men are more likely to react to financial stress by becoming abusive. The implications of these findings are significant, underscoring the need for organisations to understand and mitigate the impact of economic stress on employee relations.

Financial stress, defined as the worry that one’s financial resources are inadequate to meet one’s needs, has risen in the United States. A 2022 survey by the American Psychological Association indicated that economic stress was at its highest since 2015, and the impact of this stress on workplace behaviour has not been extensively studied until now. Fletcher pointed out that while financial stress is a growing concern, our understanding of its effects on organisational dynamics and leadership behaviour is still evolving. Previous research has concentrated chiefly on adverse outcomes such as burnout or disengagement. Still, the current study offers a broader perspective on how financial insecurity influences leadership behaviour and the overall health of an organisation.

Fletcher explained that financial stress is often not about actual income levels but rather the perception of one’s ability to meet financial obligations and the associated loss of control. This lack of control can lead leaders, especially men who feel pressured by societal norms to be in control, to engage in abusive behaviours as a way to regain some sense of power.

Interestingly, the research also highlighted that women leaders, while also affected by financial stress, were less likely to resort to abuse, possibly due to social penalties for aggressive behaviour traditionally seen as uncharacteristic for women. Despite these differences, the study found that leaders of both genders could counteract the adverse effects of stress by fostering more robust social networks and demonstrating empathetic leadership, which are seen as positive responses to stress.

Looking ahead, Fletcher and his team plan to explore how different demographic variables and life experiences, such as childhood poverty, affect leaders’ responses to financial stress. This future research aims to provide deeper insights into the complex interplay between personal history and leadership behaviour.

In terms of practical applications, the study discusses various strategies organisations can adopt to support stressed employees and prevent abusive behaviours. These include offering better compensation, childcare support, and preemptive measures such as mindfulness training and financial education. By addressing these issues proactively, organisations can improve workplace relations and mitigate the broader impacts of stress-induced behaviours.

Overall, the research underscores the importance of addressing the root causes of financial stress within organisations. It highlights the potential for negative and positive outcomes depending on how leaders handle stress. This complex issue requires careful attention and action from researchers and practitioners in organisational health.

More information: Keaton Fletcher et al, Financial stress and leadership behavior: The role of leader gender, Journal of Occupational Health Psychology. DOI: 10.1037/ocp0000387

Journal information: Journal of Occupational Health Psychology Provided by Colorado State University

Sharing pizza with colleagues isn’t merely enjoyable — it may enhance your team-building abilities

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In an office bustling with new colleagues, one of the team suggests a trip out for pizza. Amid the excitement, one eager colleague hurries to bite into a freshly served slice, only to scald the roof of his mouth.

Have you ever had a similar mishap? Initially, it might feel awkward, yet over time, such incidents transform into humorous tales recounted among colleagues. Interestingly, these shared moments extend beyond mere anecdotes.

Shared experiences, whether they’re as light-hearted as a pizza outing or as tense as a workplace strike, possess the unique ability to unify individuals. In a recent study, Matthew Lyle, an Assistant Professor at Binghamton University, State University of New York, explored this phenomenon in depth. He discovered that these collective memories encourage team members from various sectors within a company to interact more and fortify their work relationships.

The findings of this research offer valuable insights for managers on the benefits of fostering shared memories to improve teamwork across different job functions. Fostering a sense of camaraderie through shared experiences is crucial for the successful execution of large-scale projects involving diverse groups within a company. Lyle points out that these experiences enhance collaboration and ease the sharing of ideas. However, he warns that such events could disrupt existing group dynamics if powerful enough to realign team structures.

The study, titled “‘We Can Win This Fight Together’: Memory and Cross-Occupational Coordination,” published in the Journal of Management Studies, utilises a poignant example to illustrate these dynamics.

Lyle, alongside his research team, analysed a 170-day strike at a South Korean public broadcaster, which, for confidentiality, was referred to as “TelvCorp” in the study. This broadcaster had a history of employing a wide range of occupational groups and had earned numerous accolades, predominantly by its journalists. The strike was triggered by a governmental change perceived as a threat by the journalists, who believed that the newly appointed CEO (a former employee) was altering the editorial direction to favour the government. The situation escalated when the CEO began to dismiss union leaders, a move that resonated across the company as a rallying cry, leading to a unified strike effort across different occupational groups. This event marked the formation of what the researchers termed a “mnemonic community,” a group bonded by shared memories that continued to collaborate long after the strike concluded.

Yet, the aftermath of the strike was not entirely positive. A division emerged between those who had participated in the strike and those who had not, complicating the return to normalcy at TelvCorp.

This research is not just a case study of a single organisation but offers broader implications for enhancing teamwork in various settings. Like a memorable company retreat, Lyle suggests unconventional and impactful shared experiences can significantly boost collaborative efforts. Recalling events where colleagues overcame challenges together or shared a laugh can lay a foundational memory that encourages a more cohesive work environment.

While these shared experiences might seem trivial, Lyle emphasises that they are essential for fostering a supportive team environment where members are more inclined to assist each other. He advocates for intentionally creating shared moments, which are vital to building relationships that enhance teamwork and productivity. Thus, even a simple incident like the rapid consumption of a hot pizza slice could evolve into a significant, shared memory that profoundly impacts team dynamics.

More information: Sung-Chul Noh et al, ‘We Can Win this Fight Together’: Memory and Cross-Occupational Coordination, Journal of Management Studies. DOI: 10.1111/joms.13146

Journal information: Journal of Management Studies Provided by Binghamton University

Recent Research Explores the Influence of Sound and Music in Marketing Toys Based on Gender

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A groundbreaking study from Queen Mary University of London has unveiled that the soundscapes and music featured in toy commercials play a crucial role in reinforcing strict gender norms, thereby shaping children’s perceptions of masculinity and femininity. This research highlights how gender stereotypes are conveyed not just through visual elements and language but are intricately woven into the sounds and music used in adverts aimed at children.

For over four decades, studies have indicated that gender polarisation in children’s television advertising permeates various aspects of production, including camera techniques, settings, colours, and character roles. This recent study, however, published in PLOS ONE and led by PhD student Luca Marinelli under the supervision of Dr Charalampos Saitis at the Centre for Digital Music (Queen Mary), in collaboration with Professor Petra Lucht from the Centre for Interdisciplinary Women’s and Gender Studies (TU Berlin), examines an often-neglected element: music.

Luca Marinelli, the study’s lead author, explains, “The role of music in representing gender has been largely overlooked, but our findings demonstrate that soundtracks play a key role in forming gender perceptions from a young age.” The research involved analysing many toy commercials broadcast in the UK and identifying distinct musical styles tailored to advertisements targeting boys or girls. Commercials aimed at boys often featured louder, more abrasive, distorted soundtracks, reinforcing masculinity through more aggressive soundscapes. On the other hand, advertisements for girls typically included softer, more melodic music, perpetuating traditional feminine associations.

“These synergistic design choices are intentionally aligned with deep-seated gender norms,” Marinelli adds. Dr Charalampos Saitis, a Lecturer in Digital Music Processing and the paper’s senior author emphasises such practices’ broader societal implications. “The gendered music in advertising doesn’t merely influence how toys are marketed; it affects the emotional experience of the advertisement itself,” he notes. Children absorb these messages on multiple levels, with the music’s emotional impact subtly yet powerfully reinforcing the gender binary.”

The publication of this research is timely, aligning with the evolving advertising regulations in the UK aimed at combating harmful gender stereotypes. A 2020 statement from the UK Committee of Advertising Practice underlined the importance of addressing the broader implications of advertising messages that either adhere to or challenge traditional gender norms. “Our findings underscore the necessity for more comprehensive regulation,” argues Marinelli. “It’s imperative that regulators consider not only the visual and verbal content but also the auditory aspects and how music reinforces restrictive stereotypes.”

The societal repercussions of these findings resonate with the 2019 report from the Fawcett Society, which connected early exposure to gender stereotypes with various issues, including body image concerns, restricted career aspirations, and higher male suicide rates. “The ramifications of these early impressions are extensive,” Marinelli points out. “Music in toy commercials may be just one component, but it’s a significant one.”

The study further explores gendered associations’ historical and cultural origins with specific musical instruments and identities. For instance, harps have often been viewed as feminine due to their historical presence in 18th-century French salons, whereas drums, traditionally used in warfare, are commonly associated with masculinity. “These associations are so embedded in our collective consciousness that we seldom question them,” notes Marinelli. “Yet, they profoundly affect how we interpret gender roles, even in something as seemingly innocuous as a toy commercial.”

A novel concept introduced in the study is the idea of “music-primed gender schemas,” a psychological framework wherein music evokes specific gendered meanings and expectations. “These schemas blend aesthetic and gendered meanings, priming listeners to associate particular sounds with masculinity or femininity,” Marinelli explains. “In the realm of advertising, this can solidify narrow views of gender roles, thereby shaping children’s perceptions of what is ‘appropriate’ for boys and girls.”

According to Marinelli, toy commercials act as “semiotic bombs,” embedding layers of meaning into brief bursts of sound, imagery, and language. “It’s not merely ‘pink for girls and blue for boys,'” he concludes. “When music and sound effects are integrated, the gendered messages are significantly amplified.”

More information: Luca Marinelli et al, A multimodal understanding of the role of sound and music in gendered toy marketing, PLOS ONE. DOI: 10.1371/journal.pone.0311876

Journal information: PLOS ONE Provided by Queen Mary University of London

A study categorises three kinds of teleworker: realistic, ambivalent, and enthusiastic

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Companies are weighing the options between adopting teleworking strategies or orchestrating a widespread return to office workspaces. Concurrently, numerous studies have delved into the pros and cons associated with teleworking. Fresh insights from the Universitat Oberta de Catalunya (UOC), featured in the openly accessible, peer-reviewed International Journal of Manpower, shed light on a novel perspective by analysing employee perceptions of remote work. The findings from this research could assist organisations in refining their management strategies to boost employee contentment.

Vicente Peñarroja, a professor and researcher with the interdisciplinary i2TIC research group on Information and Communication Technologies at UOC’s Faculty of Economics and Business, elaborated on his investigative approach, stating, “The core idea of my study was to delineate profiles based on employees’ personal perceptions of teleworking. This perspective is pivotal as it reveals that not all employees share identical preferences or needs. Recognising and catering to diverse worker types with customised work plans can yield substantial benefits for both the staff and the organisation as a whole.”

Peñarroja’s study utilised data from 842 participants who completed the National Institute of Statistics Survey on Equipment and the Use of Information and Communication Technologies in Homes in 2021. This survey included twelve queries that required participants to evaluate six benefits and six drawbacks of teleworking.

The collected data revealed three primary teleworker categories: realistic, ambivalent, and enthusiastic. The realists acknowledged both the advantages and numerous challenges of teleworking; the ambivalent group highlighted many disadvantages, whereas the enthusiasts predominantly perceived the benefits. Peñarroja noted, “One shared concern across all groups, including the enthusiasts, was social isolation.”

The analysis further revealed that these groups exhibited distinct characteristics. Typically, realists possessed higher educational qualifications and household incomes. Enthusiasts generally spent more hours working remotely than their counterparts. According to Peñarroja, these trends could reflect factors such as higher-level job positions amongst realists that may complicate remote work. In contrast, enthusiasts might include a higher proportion of younger, more technologically adept individuals.

The importance of such research continues to grow as it provides foundational knowledge that can help tailor work environments to employee needs. This ongoing research aims to determine if such profiles remain stable over time or evolve with changes in workplace conditions. Moreover, it is essential to consider specific work-related factors such as industry type, job demands, organisational culture, and individual psychological needs. Variables like self-efficacy, self-control, and varying requirements for autonomy based on experience likely play significant roles in shaping perceptions towards teleworking.

Peñarroja emphasised the need to explore teleworking modalities further to ensure they are effectively integrated into daily life, particularly in an era increasingly influenced by technological advancements such as artificial intelligence. He suggested that innovations like recorded video conferencing could enhance productivity over traditional meetings due to the capability to produce meeting summaries instantly. Additionally, technologies like geolocation could facilitate better oversight of employee movements. He highlighted the growing necessity to consider strategies for managing workplace stress and maintaining a clear separation between personal and professional spaces.

More information: Vicente Peñarroja et al, Are there differences in the perceived advantages and disadvantages of teleworking? The identification of distinct classes of teleworkers, International Journal of Manpower. DOI: 10.1108/IJM-07-2023-0416

Journal information: International Journal of Manpower Provided by Universitat Oberta de Catalunya (UOC)

Recent Studies Indicate that Hiring Based on Affiliation Offers Advantages and Challenges, Influenced by Close and Distant Connections

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Affiliation-based hiring strategies enhance emerging companies’ capability to attract and maintain high-calibre employees, thus improving their overall performance, provided these affiliations align well with the business’s specific needs. A study featured in the Strategic Management Journal reveals that early-stage companies often benefit from hiring individuals linked to the founders’ previous work experiences. However, this advantage diminishes when founders opt to hire former schoolmates. The study highlights the prevalent practice of leveraging previous professional affiliations and delineates when such strategies might be beneficial or detrimental.

Historically, research has delved into the role of personal connections in the job market and how these relationships influence employment opportunities. However, scholars Vera Rocha from Copenhagen Business School and Rhett Andrew Brymer from the University of Cincinnati identified a gap in understanding how such hiring practices impact the companies that employ these individuals, especially startups. Rocha points out that the relationship between affiliation-based hiring and the performance of young firms is more complex than it might initially seem since employment and educational ties differ significantly. While workplace connections are typically professional, educational ties often encompass long-standing friendships and may involve similar skills and attributes, which do not necessarily benefit the firm.

The researchers also examined the nuances within these affiliations. Some connections are more direct, while others are more distant, varying by how much individuals’ experiences at previous organisations overlapped in time and physical space. For instance, individuals may have attended the same academic programme at different times or worked at the same company but in other departments.

To assess the advantages and disadvantages of affiliation-based hiring, the researchers analysed a comprehensive longitudinal dataset of Danish startups, their founders, and employees across various sectors. This data enabled them to track individuals and companies over time, observing educational and career paths, company evolution from inception to exit or expansion, and changes in employment within these companies. This extensive analysis shed light on how hiring patterns influenced company performance throughout their development.

Rocha notes that not all affiliation ties are equally valuable, and their worth can vary depending on when they are introduced during the company’s lifecycle; generally, young companies that employ affiliation-based strategies tend to perform better, as these tactics facilitate access to and retention of superior talent. However, the effectiveness of these relationships varies depending on the nature and closeness of the ties between the founders and the employees. Companies show improved performance when they hire based on the close and professional relations of the founders in the initial years (up to three years), but this is not the case when hiring schoolmates. For example, companies that employed founders’ elementary school classmates generally fared worse than those without such hires, as these relationships tend to be less professional and may include friends, highlighting the risks of employing personal connections who might not contribute essential resources to the team or could lead to conflicts.

Conversely, companies that hired individuals who attended the same university as the founders but in different fields tended to perform better. These relatively distant ties brought more diverse knowledge to the company, particularly beneficial when these individuals were hired into specialised or higher-ranking positions later in the company’s development. This contrasts with hires with close employment ties to the founders, who often needed more clearly defined roles, indicating a need for them to adapt to various roles during the early phases of the company.

Rocha emphasises that while many founders and managers are inclined to hire individuals they know well or share some professional or educational background with, there can be drawbacks, mainly if these hiring decisions are heavily influenced by social connections without adding complementary resources to the team. Thus, while affiliation-based hiring can be advantageous, careful consideration of the type and timing of these connections is required to benefit the firm truly.

More information: Vera Rocha et al, We go way back: Affiliation-based hiring and young firm performance, Strategic Management Journal. DOI: 10.1002/smj.3673

Journal information: Strategic Management Journal Provided by Strategic Management Society

Recent Research Reveals the Evolutionary Origins of Conspicuous Spending

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It’s often remarked that individuals purchase items they don’t truly need, using money they don’t possess to impress those they scarcely care for. This practice is termed conspicuous consumption, and it is characterised by the consumers’ desire for these items to be noticed by others.

Previously, it was believed that conspicuous consumption resulted from irrational behaviour heavily influenced by marketing and advertising strategies. However, recent findings from a study by Dr. Jim Swaffield of Athabasca University and Dr. Jesus Sierra Jimenez of Vancouver Island University propose a different perspective on this phenomenon.

According to Dr. Swaffield, who led the research, the inclination to showcase these products stems from an interplay between environmental stimuli and inherent biological tendencies. Ownership or use of such products sends a clear message to observers, potentially indicating wealth, physical strength, or elevated social standing. Some items may even serve to deter or intimidate others.

A gene-environment interaction sparks the motivation to use products as a means of communication. Dr. Swaffield describes this using the analogy: “Genetics is the gun, and the environment is the trigger.” The study illustrates that conspicuous consumption has historically aided our ancestors in surviving and attracting mates.

In their peer-reviewed research, Drs. Swaffield and Jimenez explore how genetic predispositions and environmental factors influence the desire for signalling products. They investigated how varying degrees of financial, social, and physical harshness affect this desire. Dr Swaffield, with his doctorate in evolutionary psychology, explains that the human brain is wired to favour survival and reproductive success, evolving to detect even minor changes in environmental conditions that might signal safety or danger.

These subtle shifts can unconsciously activate the desire for products that promote survival, intimidate rivals, or enhance attractiveness to potential mates. For instance, in environments perceived as hostile and unsafe, the conspicuous display of items that project toughness could serve a protective role by deterring potential threats. Conversely, the inclination towards conspicuous consumption may wane in extremely harsh conditions as individuals prefer not to draw attention.

The study further delved into how different environmental stressors, such as social isolation, financial constraints, and concerns for physical safety, influence the desire for these signalling products. An online experiment involving Canadian men and women assessed their initial interest in various products, which ranged from beautifying to wealth and toughness-signalling items.

Participants were then placed into one of six experimental groups and exposed to narratives that evoked specific environmental conditions. Their subsequent product desires were measured to see how they adjusted from their initial preferences. The findings indicated that while mild environmental stress increased the desire for signalling products, acute financial or physical insecurity led to a decline in this desire.

Interestingly, the study noted minimal variation in product desire under safe versus harsh social environments. Dr Swaffield suggests that these results call for a paradigm shift in understanding consumer behaviour, challenging the traditional view that advertising is the primary driver of conspicuous consumption.

These insights prompt reconsideration of marketing strategies and raise questions for government policymakers about the effectiveness of advertising bans in addressing issues like compulsive buying disorders and overconsumption. The study positions conspicuous consumption within a broader context of evolutionary biology and environmental interplay, suggesting that consumer behaviour is as much a result of nature and nurture as commercial influence.

More information: Jim Swaffield et al, Unconscious Drivers of Consumer Behavior: An Examination of the Effect of Nature–Nurture Interactions on Product Desire, Behavioral Sciences. DOI: 10.3390/bs14090789

Journal information: Behavioral Sciences Provided by Athabasca University

Companies That Engage More in Reading Achieve Higher Performance

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“Revealing the Essence of Reading: Understanding Corporate Identity Through Reading Habits” – A recent study spearheaded by the Complexity Science Hub (CSH) delves into the intricate relationship between the amount of information firms absorb and their size by scrutinising the online reading behaviours of millions of companies around the globe.

The study likens how companies process information to the functioning of biological organisms, where information is not merely absorbed but also transmitted and transformed to guide decision-making. Eddie Lee, a co-author of the study from CSH, notes the similarity in dynamics but with a twist in scale. He observes that more considerable organisations process information more adeptly and encounter pronounced challenges in coordinating this vast amount of data.

Researchers at CSH have meticulously analysed a broad dataset capturing the reading habits of employees from countless firms over a fortnight. This dataset includes interactions with prominent publications such as The Wall Street Journal, Bloomberg, and Forbes and niche platforms like ITCentral Station and Questex. Eddie Lee remarked on the significance of this analysis, highlighting it as a pioneering deep dive into the dataset that uncovered novel patterns within the knowledge economy.

The concept of ‘economy of scale’ is redefined in the context of information consumption. The findings published in the Royal Society Open Science journal suggest that as firms grow, the volume of information they consume increases disproportionately. This indicates that larger firms consume more information per unit of capital, sales, or headcount than their smaller counterparts, presenting a fresh perspective on organisational efficiency and knowledge consumption.

Despite their efficiency, large firms are not without their operational woes. They often need help with coordination issues, which can lead to unnecessary repetition and redundancy in the information they consume. Lee points out that beyond a certain size threshold, the redundancy becomes apparent as large firms tend to cover a more comprehensive array of news without necessarily gaining new insights. This broad but shallow approach contrasts with the expected benefits of labour specialisation, suggesting that specialisation in reading does not necessarily curtail the demand for diverse information.

Moreover, the study illuminates how deviations from average reading habits correlate with financial metrics. Lee explains that firms which consume information more extensively than what is typical for their size often see better future returns and valuations, underscoring the monetary value of strategic information consumption. The correlation extends to innovation and the diversity of economic activities, with co-author Alan Kwan from the University of Hong Kong noting strong links between diverse reading patterns and innovative outputs.

Eddie Lee concludes with enthusiasm about the study’s broader implications, stating that the insights into how firms handle information could provide profound implications for understanding their operational dynamics and financial health. This pioneering research offers a window into the strategic importance of reading within the corporate sphere, suggesting that a firm’s reading habits are not just a routine activity but a significant indicator of its identity and future success.

More information: Edward Lee et al, Information consumption and firm size, Royal Society Open Science. DOI: 10.1098/rsos.240027

Journal information: Royal Society Open Science Provided by Complexity Science Hub

Human and Artificial Intelligence Collaboration: Is It More Effective Together or Solo?

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The allure of human-AI collaboration has long ignited our collective imagination, painting a picture of a future in which human ingenuity and AI’s computational prowess merge to navigate pivotal decisions and unravel complex challenges. However, a groundbreaking MIT Center for Collective Intelligence (CCI) study introduces a more complicated narrative to this visionary prospect. Detailed in a recent publication in Nature Human Behaviour titled “When Combinations of Humans and AI Are Useful,” this seminal meta-analysis seeks to delineate the circumstances under which such collaborations prove beneficial and those in which they do not. Contrary to expectations, the study reveals that human-AI partnerships often underperform in decision-making tasks yet exhibit considerable promise in creative endeavours.

The research team, comprising MIT doctoral candidate and CCI affiliate Michelle Vaccaro, along with professors Abdullah Almaatouq and Thomas Malone from MIT Sloan School of Management, embarked on this inquiry amidst a period characterised by enthusiasm and ambiguity regarding AI’s role in the workforce. Rather than dwelling on conventional concerns such as job displacement, Malone and his colleagues addressed more pressing questions: under what conditions do human and AI partners achieve peak effectiveness, and how can organisations ensure the success of these partnerships through appropriate guidelines and safeguards?

The team performed a comprehensive meta-analysis of 370 results from 106 studies to answer these questions, examining human and AI collaborative efforts across various tasks. These studies, from January 2020 to June 2023 and featured in esteemed academic journals and conference proceedings, compared task performance across three models: human-only, AI-only, and combined human-AI systems. The overarching aim was to extract the broader trends emergent from these collective investigations.

The findings from this meta-analysis were quite enlightening. On average, teams consisting of humans and AI outperformed those involving only humans; however, they did not surpass the performance of standalone AI systems. Crucially, the data did not support the concept of “human-AI synergy,” where combined systems outperform the best capabilities of humans or AI alone. This suggests that relying solely on human or AI capabilities is more effective than attempting to merge the two for specific tasks.

Vaccaro highlighted a critical insight from the study: the assumption that AI integration automatically enhances performance needs to be revised. In some scenarios, tasks might be left entirely to humans or AI. Particularly in decision-making tasks, such as identifying deepfakes, predicting market demands, or diagnosing medical conditions, human-AI teams often needed more than the performance benchmark set by AI alone. Conversely, in domains demanding creativity, such as summarising social media posts, responding to chat queries, or generating novel content and imagery, these collaborations frequently surpassed the best efforts of either humans or AI operating independently.

This dichotomy can be attributed to creative tasks requiring a blend of human creativity, knowledge, and insight alongside repetitive processing, where AI excels. For instance, designing an image requires artistic inspiration, a human forte, and meticulous execution, an area where AI shines. Similarly, writing and generating diverse textual documents involves a mix of human insight and routine automation, such as populating standard text templates.

These findings have significant implications for organisations contemplating the integration of AI into their operations. According to Vaccaro, it is crucial for organisations to critically evaluate whether their human-AI systems genuinely outperform standalone human or AI setups. Many organisations might overestimate a solid understanding of their actual performance metrics to overestimate the efficacy of their existing systems.

Organisations should strategically assess where AI can augment human efforts, particularly in creative realms. Additionally, setting clear operational guidelines and robust guardrails for AI use is imperative. Malone suggests leveraging AI for tasks like background research, pattern recognition, and data analytics while capitalising on human capabilities to discern subtleties and apply contextual judgment. This division of labour underscores a broader strategy of utilising each partner’s strengths to their fullest potential.

In conclusion, Malone’s reflections resonate with a forward-looking perspective on human-AI collaboration. The future, he posits, will not merely involve substituting human roles with AI but will focus on harnessing the unique strengths of both to forge effective partnerships. As research and applications evolve, the dynamic interplay between human and AI collaboration will shape new technological advancement and workforce integration paradigms.

More information: Michelle Vaccaro et al, When combinations of humans and AI are useful: A systematic review and meta-analysis, Nature Human Behaviour. DOI: 10.1038/s41562-024-02024-1

Journal information: Nature Human Behaviour Provided by MIT Sloan School of Management

Sustainable Expansion: 30% of Global Regions Attain Economic Growth Coupled with Carbon Emission Reductions

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“We discovered that 30 per cent of the regions for which data is available have completely separated carbon emissions from economic growth. This successful decoupling is mainly seen in regions with high incomes and historically carbon-intensive industries, as well as those with substantial portions of their economies dedicated to services and manufacturing. These areas are notably effective at reducing carbon emissions while still fostering economic expansion,” remarks Anders Levermann, co-author and leader of the research department ‘Complexity Science’ at the Potsdam Institute for Climate Impact Research (PIK). “To stabilise the global mean temperature, achieving net-zero carbon emissions is imperative. If economies are to expand, their growth must not be linked to CO2 emissions.”

Localised climate initiatives further bolster the momentum behind successful decoupling. “Particularly in the EU, cities that have enacted climate mitigation strategies and regions that have benefitted from increased financial support for climate-related actions show higher rates of successful decoupling,” explains Maria Zioga, a PIK scientist and the study’s lead author. “Europe consistently surpasses other regions, with many of its areas showing a steady trend of decoupling over the last two decades. In comparison, North America and Asia have experienced more variable patterns of decoupling throughout the years, although there have been signs of improvement in the last decade,” she adds.

However, fewer than half of the regions are on track to achieve net-zero carbon emissions by 2050.

Unlike previous studies focusing on national or city-specific carbon decoupling, the PIK team adopted a more detailed, globally encompassing approach by analysing the economic outputs of 1,500 subnational regions. These regions, responsible for 85% of global emissions, showed an increase in per capita gross regional product (GRP). The team integrated this economic data with grid-based records of production-based carbon emission intensities over the last 30 years, revealing significant decoupling patterns worldwide. Although the study does not account for consumption-based emissions at a subnational level, which could show the impact of international trade, it still offers crucial insights into global decoupling trends.

The researchers also projected the years in which net-zero emissions might be reached for each region by examining historical decoupling trends and their effects on emissions reductions. “Developed regions are more likely to meet these targets ahead of others; however, the recent trends suggest that achieving net-zero by the middle of this century will be challenging for most regions,” concludes Max Kotz, a PIK guest researcher and a scientist at the institute when the study was conducted. “Given the current rates of decoupling, less than half of the subnational regions will manage to reach net-zero carbon emissions by 2050. Thus, it is crucial for all levels of government, especially those in developed nations, to intensify their efforts and increase investment in the energy transition, particularly in the Global South, to meet global net-zero targets,” he emphasises.

More information: Maria Zioga et al, Observed carbon decoupling of subnational production insufficient for net-zero goal by 2050, Proceedings of the National Academy of Sciences. DOI: 10.1073/pnas.2411419121

Journal information: Proceedings of the National Academy of Sciences Provided by Potsdam Institute for Climate Impact Research (PIK)