http://repub.eur.nl/res/concept/jel-M1/ Recent publications classified by JEL Code M1 en http://repub.eur.nl/static-eur/img/logo.png http://repub.eur.nl http://repub.eur.nl/res/pub/37266/ 2013-03-26T00:00:00Z The growing interest of the business world in the virtues of individ- uals with specific cognitive behavioral characteristics, such as lack of attention and hyperactivity, is not matched by scholarly work. Indi- viduals who experience the challenges associated with such character- istics are thought to thrive in work environments that embrace their talents. Given that entrepreneurship requires a distinctive mindset, we test the hypothesis that individuals who, more than others, expe- rience symptoms of attention deficit and hyperactivity (ADHD) favor entrepreneurship over wage-employment. Using data of nearly 13,000 university students, we show that symptoms of attention deficit and hyperactivity increase the likelihood of intending to startup a busi- ness directly after study. We find evidence for partial mediation of two work attributes; independence and risk tolerance. Students who experience ADHD symptoms prefer to work independently and do not shy away from working on high-risk projects, which partly explains their preference for an entrepreneurial career. Verheul, I. Block, J.H. Burmeister-Lamp, K. Thurik, A.R. Tiemeier, H. Turturea, R. http://repub.eur.nl/res/pub/38235/ 2013-01-08T00:00:00Z This research provides a new way to validate and compare buy-till-you-defect [BTYD] models. These models specify a customer’s transaction and defection processes in a non-contractual setting. They are typically used to identify active customers in a com- pany’s customer base and to predict the number of purchases. Surprisingly, the literature shows that models with quite different assumptions tend to have a similar predictive performance. We show that BTYD models can also be used to predict the timing of the next purchase. Such predictions are managerially relevant as they enable managers to choose appropriate promotion strategies to improve revenues. Moreover, the predictive performance on the purchase timing can be more informative on the relative quality of BTYD models. For each of the established models, we discuss the prediction of the purchase timing. Next, we compare these models across three datasets on the predictive performance on the purchase timing as well as purchase frequency. We show that while the Pareto/NBD and its Hierarchical Bayes extension [HB] models perform the best in predicting transaction frequency, the PDO and HB models predict transaction timing more accurately. Furthermore, we find that differences in a model’s predictive performance across datasets can be explained by the correlation between behavioral parameters and the proportion of customers without repeat purchases. Korkmaz, E. Kuik, R. Fok, D. http://repub.eur.nl/res/pub/38213/ 2012-11-30T00:00:00Z A Forecast Support System (FSS), which generates sales forecasts, is a sophisticated business analytical tool that can help to improve targeted business decisions. Many companies use such a tool, although at the same time they may allow managers to quote their own forecasts. These sales forecasters (managers) can take the FSS output as their input, but they can also fully ignore the FSS out- comes. We propose a methodology that allows to evaluate the forecast accuracy of these managers, relative to the FSS, while taking aboard latent variation across managers' behavior. We show that the results, here for a large Germany-based pharmaceutical company, can in fact be used to manage the sales forecasters by giving clear-cut recommendations for improvement. Bruijn, B. de Franses, Ph.H.B.F. http://repub.eur.nl/res/pub/26036/ 2012-06-01T00:00:00Z Small- and medium-sized enterprises (SMEs) are informationally opaque and bank dependent. In SME lending, banks largely rely on soft information, because the scale and scope of hard information are limited. We analyze whether and how hard and soft information affects the borrower's bargaining power vis-à-vis its bank. We use the fact that, for a given credit rating, certain borrowers obtain better loan terms than others to define measures of relative bargaining power. Using SME loan data from the USA and Germany, we find that more favorable soft information (management skills and character) increases borrower bargaining power. We also show that more favorable soft than hard information improves borrower bargaining power. The results are not driven by manipulation or statistical limitations of the credit ratings. Our study suggests that soft information represents an important and direct determinant of borrower bargaining power, affecting the outcomes of the loan contracting process. Grunert, J. Norden, L. http://repub.eur.nl/res/pub/34900/ 2012-05-11T00:00:00Z De Nederlandse versie van de in het Engels uitgesproken rede ter gelegenheid van het afscheid als Full Professor of Management aan de Rotterdam School of Management, Erasmus University, op 11 mei 2012 Bosch, F.A.J. van den http://repub.eur.nl/res/pub/34870/ 2012-05-11T00:00:00Z Abstract. In his Farewell Lecture, referring to the statement “Nothing is as practical as good theory”, Professor Van Den Bosch elaborates on developing “good” Management Theory and its practical application to business and society. Management is likely to be the most valuable resource of goal-oriented organizations. However, nowadays in the media and in public debate the diminishing legitimacy of managers is coming under discussion. This raises the challenging question: are managers losing their societal legitimacy? If this is the case, the second question arises: how can a more solid theoretical foundation of Management contribute to new insights in terms of its role – as an alternative to the Market – as a coordinating mechanism for creating value for business and society? Regarding both questions, the following four scientific challenges are addressed. First, the case is made that a managerial perspective on Research into Management is required. Second, taking a context-neutral approach in defining Management, it is proposed to focus on generic core activities of Management. Third, it is suggested that the creation of strategic value for society should be defined as the purpose of Management of organizations. Fourth, based on recent contributions to the literature, the importance for practice of strategic value creating Management Models are discussed, including a current appli - cation in the context of Shared Value Creation. Finally, the problems and challenges of changing the Management Model of an organization, i.e. Management Innovation, are highlighted. The lecture is concluded with four recommendations. These recommen - dations are directed to scientists in the field of Research in Management, to Schools of Management, to the practice of Management, and to governmental and regulatory agencies. These agencies have to look after Management Models and their strategic value creation for society. In the context of the present financial and economic crisis, it is recommended these agencies have to consider correcting not only the “Invisible Hand” of the Market, but also paying due attention to its close connection with the “Visible Hand” of Management. Bosch, F.A.J. van den http://repub.eur.nl/res/pub/23503/ 2012-04-01T00:00:00Z In the media role models are increasingly being acknowledged as an influential factor in explaining the reasons for the choice of occupation and career. Various conceptual studies have proposed links between role models and entrepreneurial intentions. However, empirical research aimed at establishing the importance of role models for (nascent) entrepreneurs is scarce. Knowledge of the presence of entrepreneurial role models, their specific functions and characteristics is therefore limited. Our explorative empirical study is a first step towards filling this gap. Our study is based on the outcomes of a questionnaire completed by a representative sample of 292 entrepreneurs in three major Dutch cities – entrepreneurs who have recently started up a business in the retail, hotel and restaurant sectors, business services and other services. We provide indications of the presence and importance of entrepreneurial role models, the function of these role models, the similarity between the entrepreneur and the role model, and the strength of their relationship. Highlights ► Role models emerge as influential factors in individual decision making. ► However, empirical knowledge of entrepreneurial role models is limited. ► We explore impacts, functions and characteristics of entrepreneurial role models. ► We find that role models often influence others in their decision to start a firm. ► Role models tend to be next-door examples and fulfill several functions. Bosma, N. Hessels, S.J.A. Schutjens, V. Praag, M. van Verheul, I. http://repub.eur.nl/res/pub/38205/ 2012-02-21T00:00:00Z The knowledge spillover theory of entrepreneurship seeks to explain the fundamentals and consequences of entrepreneurship with respect to economic performance. This paper uses the knowledge spillover theory to explain different innovation outcomes. We hypothesize that a high rate of entrepreneurship facilitates the process of turning knowledge into new-to-the-market innovation but has no effect on the relationship between knowledge and new-to-the-firm innovation. Our results using European country-level and pooled OLS, fixed- and random-effects regressions show that a high rate of entrepreneurship increases the chances that knowledge will become new-to-the-market innovation. The findings highlight the importance of Schumpeterian entrepreneurship in the process of the commercialization of knowledge. We discuss the implications for entrepreneurship and innovation policy. Block, J.H. Thurik, A.R. Zhou, H. http://repub.eur.nl/res/pub/30573/ 2011-11-21T00:00:00Z How steep should a hierarchy be, or should there be a hierarchical stratification at all? Research on power, divided between two main research streams (i.e., functionalist and conflict theories of power), reports discrepant answers to this question. This paper suggests that the choice between groups with low, high, and moderate power disparity depends on whether power assignment is based on competency or not. Problem complexity, group size, and size of the difference between high and low power are also proposed as moderators in comparing different power models. The present paper extends earlier work by conceptualizing power simultaneously as a relational capacity, behaviors emanating from this capacity, and exercise of power in the form of influence. Additionally, it goes beyond the formal organizational design perspective where power is confined to formal and stable hierarchies, and allows for informal power structures and evolutionary dynamics. Tarakci, M. Groenen, P.J.F. http://repub.eur.nl/res/pub/31571/ 2011-11-01T00:00:00Z Customer‐centric strategy firms need to focus on forward‐looking indicators and ensure a synergistic relationship between decision rights, performance measurement, and reward systems. Bonacchi, M. Perego, P.M. http://repub.eur.nl/res/pub/32154/ 2011-09-01T00:00:00Z Dual distribution in franchising is addressed from an incomplete contracting perspective. We explicitly model cooperative (dual distribution) franchising as an organizational form, next to wholly-owned, wholly-franchised, and dual distribution franchise systems. Key conclusions of the model are: (1) dual distribution as an efficient governance mechanism does not depend on heterogeneous downstream outlets, and (2) whether dual distribution or some other organizational form is efficient depends on the size of the benefits to dual distribution relative to the parties' costs of investing. Hendrikse, G.W.J. Jiang, T. http://repub.eur.nl/res/pub/25987/ 2011-08-01T00:00:00Z Many e-tailers providing attended home delivery, especially e-grocers, offer narrow delivery time slots to ensure satisfactory customer service. The choice of delivery time slots has to balance marketing and operational considerations, which results in a complex planning problem. We study the problem of selecting the set of time slots to offer in each of the zip codes in a service region. The selection needs to facilitate cost-effective delivery routes, but also needs to ensure an acceptable level of service to the customer. We present a fully automated approach that is capable of producing high-quality delivery time slot offerings in a short amount of time. Computational experiments reveal the value of this approach and the impact of the environment on the underlying trade-offs. Savelsbergh, M.W.P. Fleischmann, M. Agatz, N.A.H. Campbell, A. http://repub.eur.nl/res/pub/25988/ 2011-08-01T00:00:00Z Many e-tailers providing attended home delivery, especially e-grocers, offer narrow delivery time slots to ensure satisfactory customer service. The choice of delivery time slots has to balance marketing and operational considerations, which results in a complex planning problem. We study the problem of selecting the set of time slots to offer in each of the zip codes in a service region. The selection needs to facilitate cost-effective delivery routes, but also needs to ensure an acceptable level of service to the customer. We present a fully automated approach that is capable of producing high-quality delivery time slot offerings in a short amount of time. Computational experiments reveal the value of this approach and the impact of the environment on the underlying trade-offs. Savelsbergh, M.W.P. Fleischmann, M. Agatz, N.A.H. Campbell, A. http://repub.eur.nl/res/pub/25538/ 2011-06-06T00:00:00Z This study investigates if and in what way social entrepreneurs are hampered in turning their efforts into sustainable organizations. Using binary logit regressions and unique data containing approximately 26,000 individual-level data points for 36 countries, this study assesses the influences of perceived environmental barriers, risk variables, and socio-demographic variables on the probability of being a social entrepreneur versus a commercial entrepreneur. Our findings confirm that socially motivated entrepreneurs are less likely to survive the earliest levels of entrepreneurial engagement. Several factors have been identified to explain this underperformance. Compared to commercial entrepreneurs, social entrepreneurs perceive more financial and informational start-up barriers, are more afraid of personal failure and bankruptcy, and can be found in the lower and higher age categories. In addition, this study found that social entrepreneurs are more likely to be female and highly educated than are their commercial counterparts. Hoogendoorn, B. Zwan, P.W. van der Thurik, A.R. http://repub.eur.nl/res/pub/22246/ 2011-06-01T00:00:00Z In the present study, the construct validity of a revised edition of the Belbin Team Roles measure is tested. This edition consists of three parts to determine someone's team roles. The sample included 1434 persons who were asked to fill out the self-perception inventory and the self-perception assessment sheet, and the Observer Assessment Sheet was filled out by at least four observers. The interrater agreement of the Observer Assessment Sheet was satisfactory across all team roles. As for the construct validity, which was studied in a multitrait-multimethod design using structural equation modelling, the results revealed that the discriminant and convergent validity for the instrument as a whole is good; a small effect could be contributed to method variance. Dierendonck, D. van Groen, R. http://repub.eur.nl/res/pub/23422/ 2011-05-26T00:00:00Z This thesis deals with the entrepreneurial process from an international perspective. The first part explores which people decide to enter entrepreneurship. A distinction is made between two modes of entrepreneurial entry: taking over an existing firm and starting a new firm. The second part focuses on the exit side and examines the determinants of exit before and exit after business start-up. In addition, the decision to re-enter entrepreneurship after having experienced an entrepreneurial exit is analyzed in this second part. This thesis is of particular interest to policymakers, partly due to its dynamic approach. That is, this thesis distinguishes between several stages that make up the decision to become an entrepreneur. The stages range from no entrepreneurial activity to intentional, nascent, young, and established entrepreneurship (the “entrepreneurial ladder”). The conclusions of this thesis may help governments to intervene at positions on the entrepreneurial ladder where certain characteristics, such as perceptions about the entrepreneurial environment, hinder entrepreneurial progress or where regions lag behind. We find that people with pessimistic views about the administrative start-up environment are discouraged in having intentions or undertaking attempts to set up their own businesses (particularly in Europe). Policies should be aimed at tackling inflated perceptions of administrative barriers (in case of misperceptions of the environment) or directly lowering these barriers. Exit before start-up and exit after business start-up have different determinants. For example, urbanization is negatively related to exit before start-up and positively related to exit after start-up. This finding points at the presence of overoptimistic entrepreneurs and strong selection mechanisms in these areas. Furthermore, individuals are inclined to enter the entrepreneurial process again after having experienced an exit. This finding holds true for positive as well as negative exit experiences. Zwan, P.W. van der http://repub.eur.nl/res/pub/23298/ 2011-05-13T00:00:00Z In this dissertation I test three new approaches to extend the ‘classical’ model of workplace diversity. The ‘classical’ model of workplace diversity assumes that diversity affects work outcomes via the mediating effects of social networks. I hypothesize that this model fruitfully can be extended by 1) considering that diversity forms a context in which employees act, 2) testing alternative predictors of network formation and employee behavior (i.e., employee voice), and 3) integrating diversity and social network perspectives in a contingency model. Three empirical studies support these hypotheses. In the first study, I show that the association between leadership and employee voice is stronger for nationality dissimilar employees. The second study finds that employee voice affects the strength of friendship relations but that this effect is contingent on employees’ past position in the social network. Finally, the third study demonstrates that group performance is maximized at moderate levels of task network centralization but lowest at high and low levels of centralization but that this relation is moderated by nationality diversity. Nationality diverse teams required more centralization to achieve high performance than homogeneous teams. Finally, I discuss the implications of these findings for research on diversity and social networks. Tröster, C. http://repub.eur.nl/res/pub/23268/ 2011-05-10T00:00:00Z Despite the importance of trust in economic relations, people often engage in behavior that may violate their interaction partner’s trust. Given that transgressions in economic relations often result in distributive harm for the victim (i.e. loss of economic resources), a common approach in these relations consists of the transgressor providing a financial compensation to the victim: if a customer has complaints about a product, he is reimbursed; when a company is being sued, it often tries to make a financial settlement with the victims. Strangely enough, the high prevalence of financial compensations as a restorative response contrasts sharply with how little is known about their effectiveness. Can financial compensations actually increase trust again and what are the factors that determine their effectiveness? By taking an experimental approach, this dissertation aims to provide some first, much needed empirical answers regarding the effectiveness of financial compensations in restoring trust. In this venture, it was not only studied how aspects of the compensation itself (e.g. size) determine their effectiveness, but also how specific characteristics of the violation, the victim and the transgressor impact victims’ reactions to a compensation. The findings of this dissertation show that even in economic relations, where violations have a clear, quantifiable distributive harm, the process of trust repair is not simply determined by the material, financial value of a compensation. Rather, this dissertation reveals how immaterial aspects such as intent in the violation, whether a compensation was imposed or voluntarily provided or whether or not an apology accompanied the compensation, are all crucial in determining the actual value that victims attach to a financial compensation. Desmet, P.T.M. http://repub.eur.nl/res/pub/23250/ 2011-05-06T00:00:00Z Theories of bureaucracy in organization studies constitute a perspective in which formal or written rules are seen as fundamental to the understanding of organization. It is argued, for example, that formal rules facilitate organizational decision-making, establish the basis for coordination and control, and help to increase an organization’s legitimacy within the broader institutional environment. Like other elements of organizations, rules also change over time with potential consequences for decision-making, coordination, and legitimacy. This dissertation takes up questions about the causes of continuity and change of formal organizational rules, as well as of bureaucratic organizational forms more broadly. The first conceptual essay (Chapter 2) starts with the observation that bureaucracy is a remarkably persistent organizational form and suggests that the reproduction or transformation of this form and its prevalence in various organizational fields depends on the agency and interaction of different expert groups. In Chapter 3, we present a conceptual account of the dynamic process of codification and enforcement of formal rules and its influence on the preservation and retrieval of organizational memory via these rules. In Chapter 4, we offer a conceptual account of how the process of using existing formal rules to deal with new organizational problems can ultimately lead to change in such rules. Finally, Chapter 5 reports the results of a longitudinal empirical study of rule changes in UNESCO’s World Heritage Program. We find that that rule makers’ cultural heterogeneity tends to delay rule changes, while rule makers’ normative power tends to accelerate them. Osadchiy, S.E. http://repub.eur.nl/res/pub/22907/ 2011-04-01T00:00:00Z In the media role models are increasingly being acknowledged as an influential factor in explaining the reasons for the choice of occupation and career. Various conceptual studies have proposed links between role models and entrepreneurial intentions. However, empirical research aimed at establishing the importance of role models for (nascent) entrepreneurs is scarce. Knowledge of the presence of entrepreneurial role models, their specific functions and characteristics is therefore limited. Our explorative empirical study is a first step towards filling this gap. Our study is based on the outcomes of a questionnaire completed by a representative sample of 292 entrepreneurs in three major Dutch cities - entrepreneurs who have recently started up a business in the retail, hotel and restaurant sectors, business services and other services. We provide indications of the presence and importance of entrepreneurial role models, the function of these role models, the similarity between the entrepreneur and the role model, and the strength of their relationship. Bosma, N. Hessels, S.J.A. Schutjens, V. Praag, M. van Verheul, I.