Search results

Purpose – To provide strategic management scholars, particularly graduate students and new faculty members, a novel approach, the lens model, to investigate emerging economies phenomena.

Design/methodology/approach – Based on a review of the strategic management literature and a search of the strategy databases and journals, I propose the lens model approach and discuss its origins, development, and designs since its introduction. It has been used extensively in such fields as cognitive psychology, social psychology, medicine, agriculture, human resources management, and organizational behavior. Besides the wide application, it has relevance for strategic management research.

Findings – An illustrative study and a summary of the approach from a previous study in one prominent journal are also provided as guides. I conclude by providing recommendations on what to consider in using the approach for the study of emerging economies.

Research limitations/implications – In addition to the strengths of the approach, its weaknesses are also discussed. Suggestions on maximizing the potential of the approach are also discussed.

Practical implications – The approach is an invaluable source particularly for graduate students of strategy who often are unfamiliar with microlevel approaches. They can use it to supplement approaches for strategic management.

Originality/value – To my knowledge, this chapter is the first to discuss the lens model approach in the strategic management literature. In that regard, it fills a gap in the research methodology literature. It can therefore help graduate students improve their careers.

Investors frequently make judgments and decisions in the presence of affect (i.e., mood or emotion). Investors' moods may influence the extent to which they incorporate available financial information in their investment judgments. I propose that investors interpret their moods as signals of the extent to which financial information should be processed to make investment judgments, but only when other, more direct signals regarding the need for in-depth processing are unavailable. Consistent with research in psychology, my experimental results suggest that investors experiencing positive mood exert less effort to process available financial information than investors experiencing negative mood. Consequently, positive mood results in lower-quality financial judgments in my setting. However, when investors receive cues suggesting that initially received information is subjective, the effect of mood on effort to process financial information is mitigated. Overall, my results suggest that factors associated with positive investor mood (e.g., positive market sentiment) reduce the depth of investor analysis and lower judgment quality absent signals regarding the subjectivity of financial information.

To investigate the nature of investment expertise and factors affecting the information processing and performance of investment experts, this paper hypothesizes normative characteristics of investment expertise and compares such characteristics with actual characteristics documented in prior literature on the investment expert. Based on collective evidence from these sources, a model of investment expertise is proposed.

Results support the existence of investment expertise in (1) the nature of knowledge, (2) problem solving and information search, and (3) performance. A variety of factors that could influence the information processing and performance of the investment expert, including personal, cognitive, and contextual elements, are also discussed in the paper and included in the proposed model of investment expertise.

In spite of technological advances and the removal or reduction of tariffs and other barriers to trade, international buyer–supplier relationships often struggle. In this conceptual chapter, we examine how purchase intentions are influenced by the effects of the psychic distance between the countries where the buyer and the supplier reside. We look into the causal mechanism through which the psychic distance between the buyer and the supplier influences the extent to which the two will enter a business relationship. Two causal pathways are proposed, a more emotional pathway, through organizational identification, as predicted by the psychological distance theory, and a more rational pathway, through trust and expected relationship quality, as predicted by internationalization theory.

The heart of the CERTT Laboratory, shown in Fig. 1, is a flexible Synthetic Task Environment (STE) that is designed to study many different synthetic tasks for teams working in complex environments. STEs provide an ideal environment for the study of team cognition in complex settings by providing a middle-ground between the highly artificial tasks commonly found in laboratories and the often uncontrollable conditions found in the field or high fidelity simulations.

The growth of research on the cognitive origins of market performance has focused on the impact of categories as a primary cognitive mechanism by which exchange occurs. In this research, performance outcomes are typically reduced when firms and products fail to meet audiences’ expectations about membership into categories. The ensuing literature has focused on spanning categories as evidence of not meeting audience expectations while largely ignoring the specific study of expectations themselves. This chapter argues that expectations for market behavior are important in their own right, and can impact market outcomes even when categorical boundaries are respected. Using the market for engagement rings as a setting, I show how lack of adherence to expectations can both increase and decrease market value even as the engagement rings adhere to categorical boundaries. Rather than simply focusing on category spanning as evidence that audience expectations have not been met, the findings suggest that expectations should be considered explicitly, with implications for competitive strategy.

The purpose of this chapter is to explore whether and how angel investors’ emotions unfold in the investment opportunity evaluation process as they interact with the social environment. Complementing recent research that has emphasized the financial calculations, we add angel investors’ own emotional arousal to the list of tools that may help them to rate investment opportunities.

Drawing on semi-structured qualitative interviews, we develop a phenomenological analysis of the investment opportunity evaluation process at the level of angel investors’ lived experience.

Our findings indicate that when angel investors use their emotional arousal in evaluating investment criteria, they engage in a developmental process characterized by three elements: subjective validation, social validation, and investment decision.

We illuminate how discrete emotions can complement rational considerations in the opportunity evaluation journey. Capturing the nature of emotion as action oriented, embodied, socially situated, and distributed, we embrace its adaptive socially situated dynamics.

Taking a step toward better understanding of the soft aspects in the relationship development that leads to investments, we hope this study will help not only those entrepreneurs who need funding but also those policymakers who design new incentives that improve the flow of investment into promising new ventures.

We demonstrate how angel investors’ emotions can complement their rational considerations in the investment opportunity evaluation process as they interact with the social environment. Identifying boundary values for the conditions that are necessary and sufficient to advance in the process, we have demonstrated how emotion can serve as a driving or restraining force not only during subjective validation but also during social validation.

Over the past two years, fraudulent financial reporting has become a major concern of both the Securities and Exchange Commission and investors. These concerns have been spurred by evidence that several high-profile companies such as Enron, Tyco, WorldCom, and HealthSouth have published false and/or misleading financial reports. Statement on Auditing Standards (SAS) No. 82 specifies that auditors have a responsibility to assess the likelihood of management fraud and identifies specific risk factors that should be considered when making that assessment. Apostolou et al. (2001b) examined how internal and external auditors rate the relative importance of these factors. This study extends Apostolou et al. (2001b) by examining how forensic experts at four Big 5 professional service firms assess the factors specified in SAS No. 82. These assessments produced two different models of relative importance: (a) a statistical model (produced by the Analytic Hierarchy Process); and (b) a subjective model (based on subjects’ assessment of the relative weights). These models are then used to assess the self-insight of and the degree of agreement among the forensic experts. The results indicate that forensic experts have a moderately high degree of self-insight. A moderate to high degree of consensus among experts’ judgments about the relative importance of fraud risk factors was noted.

We integrate cross-cultural literature with broader literature in survey methodology, human cognition, and communication. First, we briefly review recent work in cognitive survey methodology that advances our understanding of the processes underlying question comprehension and response. Then, using a process model of cultural influence, we provide a framework for hypothesizing how cross-cultural differences may systematically influence the meaning respondents make of the questions that researchers ask, how memory is organized, and subjective theories about what constitutes an appropriate answer and therefore the answers participants are likely to give.