À la découverte du lien organisationnel : avez-vous lu A. O. Hirschman ?


Management International

Winter 2018, vol. 22, n°2, pp.9-12

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Théorie des organisations, Hirschman, sortie, voix, loyauté

A Model of Trading in the Art Market


American Economic Review

March 2018, vol. 108, n°3, pp.744-774

Departments: Finance, GREGHEC (CNRS)

Keywords: art; auctions; endogenous trading; price indexes; private values; returns

We present an infinite-horizon model of endogenous trading in the art auction market. Agents make purchase and sale decisions based on the relative magnitude of their private use value in each period. Our model generates endogenous cross-sectional and time-series patterns in investment outcomes. Average returns and buy-in probabilities are negatively correlated with the time between purchase and resale (attempt). Idiosyncratic risk does not converge to zero as the holding period shrinks. Prices and auction volume increase during expansions. Our model finds empirical support in auction data and has implications for selection biases in observed prices and transaction-based price indexes

A Universe of Stories: Mobilizing Narrative Practices During Transformative Change


Strategic Management Journal

March 2018, vol. 39, n°3, pp.664-696

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: strategic change, narrative, strategyaspractice, storytelling, reflection

Constructing narratives of transformative change is an important but challenging practice through which strategy makers attempt to influence acceptance of an ongoing transformation. To understand whether and how strategy makers can construct a steady influx of captivating narratives of transformative change, we analyzed how one noted strategy maker assisted the successful transformation of his organization over three decades by orchestrating the production of change narratives. Our analysis reveals that the strategy maker constructed and reconstructed meanings of change over time using three sets of distinct but interconnected narrative practices. We develop a dynamic model linking the simultaneous mobilization of these practices to strategy makers’ ability to harness the persistent tension between novelty and familiarity in a transformative change, and thereby win endorsement from key audiences. This paper was accepted for publication on Strategic Management Journal Special Issue on "Strategy Processes and Practices: Dialogues and Intersections"

An Experimental Investigation of the Interaction Effect of Management Training Ground and Reporting Lines on Internal Auditors’ Objectivity, International Journal of Auditing

F. HOOS, William F. MESSIER JR, Jason L. SMITH, Paulette R. TANDY

International Journal of Auditing

July 2018, vol. 22, n°2, pp.150-163

Departments: Accounting & Management Control

Keywords: Internal Audit Function, Internal Auditors, Management Training Ground, objectivity

Seventy‐nine experienced internal auditors participated in an experiment investigating two factors that may affect internal auditors’ objectivity: (1) whether the internal audit function is used as a management training ground, and (2) whether the internal auditors’ reporting line is to management or the audit committee. Participants completed a case wherein management and the audit committee hold conflicting preferences regarding a major corporate investment opportunity. Participants evaluated relevant business risks and made an overall recommendation concerning the investment. The results include three important findings. First, we observe an interaction effect between management training ground and reporting line. When the internalaudit function is not used as a management training ground, internal auditors’ risks assessments do not significantly differ by reporting line. However, when the internal audit function is used as a management training ground, internal auditors’ risk assessments align with management's preferences when auditors report to senior management versus the audit committee. Second, when the internal audit function is a management training ground, internal auditors provide more favorable investment recommendations (i.e., consistent with management's preferences). Third, internal auditors unexpectedly provided more favorable recommendations to the audit committee than to management

An Integrated Revenue Management Framework for a Firm's Greening, Pricing and Inventory Decisions


International Journal of Production Economics

January 2018, vol. 195, pp.373-390

Departments: Information Systems and Operations Management, GREGHEC (CNRS)

Keywords: Environment, Newsvendor problem, Pricing, Market segmentation, Distribution-free approach

There is a growing interest on developing efficient ways of incorporating environmental considerations into business practices in order to meet both consumers' demand for green products/services, and the firms' sustainable profitability. The main contribution of this article is in developing an integrated revenue management framework to address a firm's greening (investment) effort, pricing and inventory decisions. It is assumed that the firm inaugurates a green product along with its existing product. Even though the firm offers both the green and regular product at differentiated prices, the market segmentation as a result of this price differentiation is regarded as imperfect. This imperfect market segmentation causes a demand leakage mainly due to the heterogeneity among the customers' willingness-to-pay. These effects are included in our proposed model and simplified analytical solutions are developed to solve the same. Additional scenarios where a firm experiences a price-dependent stochastic demand with an unknown distribution is also modeled. This scenario is addressed using a distribution-free approach based on Scarf' s rule. The performance of the proposed methods and the significance of the modeling framework are finally corroborated through several simulations. This analysis provides a sustainable environment, production and retailing framework while still augmenting profitability using fundamental tools from revenue management