Search results

We present a simulation designed to capture the impact of both formal authority ties and informal socialization ties on the performance of an organization adapting to a turbulent world. We present a summary of three key models that informed our approach and then outline and describe the operation of our resulting simulation. Using an experiment that manipulated both the authority network structure and the stress the organization placed on socialization, we show inefficient authority structures harm performance, and also that socialization has a strong and nonlinear impact on peak organizational performance and on the performance of top management. We also present a case study, instantiating the general model with the specific context of a real-world organization. Finally, our integrated multimodel suggests that companies should pursue different strategies in hiring key strategic actors than they do for other actors.

The latest financial crisis has stressed the need of understanding the world financial system as a network of interconnected institutions, where financial linkages play a fundamental role in the spread of systemic risks. In this paper we propose to enrich the topological perspective of network models with a more structured statistical framework, that of Bayesian Gaussian graphical models. From a statistical viewpoint, we propose a new class of hierarchical Bayesian graphical models that can split correlations between institutions into country specific and idiosyncratic ones, in a way that parallels the decomposition of returns in the well-known Capital Asset Pricing Model. From a financial economics viewpoint, we suggest a way to model systemic risk that can explicitly take into account frictions between different financial markets, particularly suited to study the ongoing banking union process in Europe. From a computational viewpoint, we develop a novel Markov chain Monte Carlo algorithm based on Bayes factor thresholding.

Purpose – This chapter provides an overview of multilevel modeling with a focus on the application of hierarchical linear modeling (HLM) in international management research.

Findings – The key topics covered include an introduction to hierarchical linear models, how to apply appropriate hierarchical linear models to address different types of international management research questions, and six methodological issues concerning international management research with a multilevel analysis.

Originality/value – The overview of HLM and its relevance for international management research facilitates researchers to apply this powerful analytical strategy in their future research.

We are interested in modeling the impact of spatial and interindustry dependence on firm-level innovation of Chinese firms The existence of network ties between cities imply that changes taking place in one city could influence innovation by firms in nearby cities (local spatial spillovers), or set in motion a series of spatial diffusion and feedback impacts across multiple cities (global spatial spillovers). We use the term local spatial spillovers to reflect a scenario where only immediately neighboring cities are impacted, whereas the term global spatial spillovers represent a situation where impacts fall on neighboring cities, as well as higher order neighbors (neighbors to the neighboring cities, neighbors to the neighbors of the neighbors, and so on). Global spatial spillovers also involve feedback impacts from neighboring cities, and imply the existence of a wider diffusion of impacts over space (higher order neighbors).

Similarly, the existence of national interindustry input-output ties implies that changes occurring in one industry could influence innovation by firms operating in directly related industries (local interindustry spillovers), or set in motion a series of in interindustry diffusion and feedback impacts across multiple industries (global interindustry spillovers).

Typical linear models of firm-level innovation based on knowledge production functions would rely on city- and industry-specific fixed effects to allow for differences in the level of innovation by firms located in different cities and operating in different industries. This approach however ignores the fact that, spatial dependence between cities and interindustry dependence arising from input-output relationships, may imply interaction, not simply heterogeneity across cities and industries.

We construct a Bayesian hierarchical model that allows for both city- and industry-level interaction (global spillovers) and subsumes other innovation scenarios such as: (1) heterogeneity that implies level differences (fixed effects) and (2) contextual effects that imply local spillovers as special cases.

The role of HQ in the contemporary MNC has recently received a good deal of research attention. This article argues that the contemporary MNC requires an organizational model that can embrace different perspectives of the HQ role. The same HQ must at times hierarchically lead the firm and at other times assume a more passive, facilitative role that allows direct interaction and decision making among the subunits to coordinate interdependency within the firm. To achieve this integration, the article proposes a contingency model that specifies when the HQ should assume a hierarchical role and when it should assume a facilitative role.

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

This chapter investigates the behavior of Reddit’s news subreddit users and the relationship between their sentiment on exchange rates. Using graphical models and natural language processing, hidden online communities among Reddit users are discovered. The data set used in this project is a mixture of text and categorical data from Reddit’s news subreddit. These data include the titles of the news pages, as well as a few user characteristics, in addition to users’ comments. This data set is an excellent resource to study user reaction to news since their comments are directly linked to the webpage contents. The model considered in this chapter is a hierarchical mixture model which is a generative model that detects overlapping networks using the sentiment from the user generated content. The advantage of this model is that the communities (or groups) are assumed to follow a Chinese restaurant process, and therefore it can automatically detect and cluster the communities. The hidden variables and the hyperparameters for this model are obtained using Gibbs sampling.

We provide a Bayesian inference for a mixture of two Pareto distributions which is then used to approximate the upper tail of a wage distribution. The model is applied to the data from the CPS Outgoing Rotation Group to analyze the recent structure of top wages in the United States from 1992 through 2009. We find an enormous earnings inequality between the very highest wage earners (the “superstars”), and the other high wage earners. These findings are largely in accordance with the alternative explanations combining the model of superstars and the model of tournaments in hierarchical organization structure. The approach can be used to analyze the recent pay gaps among top executives in large firms so as to exhibit the “superstar” effect.