PhD Dissertations

Cédric GUTIERREZ MORENO, Strategy & Management, 2017

Three essays on entrepreneurial decision making

Advisor(s): Mohammed ABDELLAOUI, Thomas ASTEBRO

Explaining why individuals enter into entrepreneurship has been challenging. In this thesis, I take a behavioral perspective and analyze the effects on entrepreneurial entry of behavioral mechanisms that have been understudied in the entrepreneurship literature.The first essay proposes to disentangle the effects on market entry of two mechanisms that may have been confounded: overconfidence and attitude toward ambiguity. This essay highlights the critical role of ambiguity attitude on the decision to enter a market, particularly when the result depends on one’s skills, such as entry into entrepreneurship. The very nature of entrepreneurship is to invest capital and time with the hope of receiving future financial benefits. I therefore argue that understanding entrepreneurs’ temporal preferences for time and money can provide new insights on the determinants of entry into entrepreneurship.While intertemporal choice involving money has been studied extensively in the behavioral literature, very few studies have analyzed the way people discount time, despite the fact that it is a scarce and valuable resource. The second essay investigates this issue in a laboratory experiment. Finally, using a lab-in-the-field experiment, the third essay analyzes temporal preferences for money and time of a comparable sample of future entrepreneurs and future managers.

Jean-David SIGAUX, Finance, 2017

Three Essays on Bond Lending

Advisor(s): Thierry FOUCAULT

In the first chapter, I ask if short-sellers are superiorly informed about sovereign auctions. I find a large average increase in demand for short-selling prior to auctions. Yet, the demand for short-selling a bond does not predict a subsequent increase in the bond's yield.Overall, there is no evidence that short-sellers or edict or interpret auction outcomes better than the market. In the second chapter, I develop and test a model explaining the gradual price decrease observed in the days leading to large anticipated asset sales such as Treasury auctions. In the model, risk-averse investors anticipate an asset sale which magnitude, and hence price, are uncertain. I show that investors face a trade-off between hedging the price risk with a long position, and speculating on the difference between the pre-sale and the expected sale prices. Due to hedging, the equilibrium price is above the expected sale price. As the sale date approaches, uncertainty about the sale price decreases, short speculative positions increase and the price decreases. In line with the predictions, I find that the yield of Italian Treasuries increases by 1.2 bps after the release of auction price information, compared to non-information days.In the third chapter, I study the link between prices and repo rates during the subprime crisis. I find that the no-arbitrage relationship between prices and repo rates in Duffie (1996) fares worse during the crisis. However, low-reporate bonds have an 18.0% higher probability of being more expensive than identical high-reporate bonds during the crisis, compared to only 9.0% before the crisis. Overall, while there are high limits of arbitrage, prices and repo rates feature larger co-movements during the crisis.

Aleksey KORNIYCHUK, Strategy & Management, 2017

Essays in Behavioral Strategy: Re-biased Search, Misconceived Complexity, and Cognitive Aliens

Advisor(s): Gonçalo PACHECO DE ALMEIDA, Tomasz OBLOJ

This work centers on the tenet that organizational rationality is bounded: decision makers search, satisfice, and think in a way that is typical (in its integrity) only of humans. The dissertation explores this interplay between search and decision maker’s cognition and demonstrates how biases in characteristic aspects of our thinking can be instruments of behavioral strategy. As a starting point, I take search, sequential generation and evaluation of alternatives, as the first primitive of bounded rationality and complement it with integral elements of human cognition, such as automatic, intuitive thinking, specifically affect heuristic, and imperfect mental representations of reality. With the help of computational models, I track the effects of the corresponding biases (systematic affective preferences and systematic errors in mental representations) over time as organizations adapt to complex environments. This allows me to identify life cycles of the elements of human cognition and show that organizations should manage (rather than eliminate) some biases over time. Finally, I derive predictions and empirically test a subset of my propositions. In conclusion, this work aims to advance the emerging theory of behavioral strategy by jointly considering different primitives of bounded rationality and integrating them with the existing knowledge in organization sciences. A broad question that motivates this work is how organizations can manage the many bounds to human rationality.

Eui Ju JEON, Strategy & Management, 2017

Antecedents and Consequences of Exploration and Exploitation Decisions: Evidence from CorporateVenture Capital Investing

Advisor(s): Pierre DUSSAUGE, Corey PHELPS

This dissertation addresses unexplored issues on the antecedents, management, and outcomes of corporate venture capital (CVC). More specifically, I examine how negative performance feedback and corporate governance influence the direction of organizational change ˗ in terms of exploration and exploitation ˗ and how balancing such change over time influences firm performance in the CVC context. I first review the extant literature on CVC and lay out the unique contributions of my research. Then, in the first essay, I theorize on how poor firm performance influences the resource allocation decisions on exploration and exploitation and how such decisions are affected by the concentration of dedicated and transient shareholders and by the board of directors' monitoring and advising intensities. In the second essay, I empirically examine how the resource allocation decisions on exploration and exploitation are influenced by dedicated and transient shareholders in the context of CVC investing. In the third essay, I examine how balancing exploration and exploitation over time and the characteristics of oscillation impact firm performance. The empirical analysis in the latter two essays is based on CVC investments made by 287 companies during 1993-2013. This dissertation contributes to the Behavioral Theory of the Firm and Corporate Governance research by introducing how shareholders and boards influence managerial decision-making in search and change, Ambidexterity research by studying how continuous change and organizational inertia impact temporal spillover between exploration and exploitation, and CVC research by examining the antecedents and consequences of explorative and exploitative initiatives in CVC investing.

Kseniya NAVAZHYLAVA, Organizations & Human Resources, 2016

Transparency Perspective on New Information and Communication Technology Implementation:The Case of Social Media Use in Organizational Context

Advisor(s): Joëlle EVANS

This dissertation is an inquiry into the phenomenon of social media use in organizational context with a focus at self-presentation transparency. It drives attention to the processes of enactment of this new technology and investigates how these developments are embedded in the context of occupational norms, social roles, organizational control and autonomy. The research setting is based on the 19-month social media implementation campaign by a central European media organization as a means of enhancing communication and coordination within the organization. The implementation encompassed two departments, journalists and advertising agents, who were asked to create and open their online social media profiles and befriend their colleagues. The dissertation comprises four research papers each taking a separate perspective on the phenomenon. Methodologically, the dissertation builds on qualitative case-study approach and abductive and inductive reasonings. The thesis provides theoretical and practical contributions to the understanding of the normative prerequisites, process and consequences of social media use in organizational context for occupational norms, online knowledge collaboration and organizational control while presenting co-evolution of the technology meaning and use.

Pier Vittorio MANNUCCI, Organizations & Human Resources, 2016

To Infinity.. and Beyond ! Exploring the Dynamics of Creativity over Time

Advisor(s): Kevyn YONG, Francoise CHEVALIER

This dissertation explores the role of career age in shaping creativity over time. In the first paper, I challenge the commonly-held view that career age has a curvilinear effect on creativity, suggesting instead that career age does not have any clear effect on creativity. I argue that this happens because career age affects individuals’ cognitive complexity, flexibility and intrinsic motivation, which have opposite effects on creativity. I propose that these opposite effects engender different cognitive and motivational needs at different stages of the career, and these needs have to be attended to in order to maximize creativity. Consequently, career age acts as an important moderator of the relationship between creativity and some of its antecedents. In the second paper, I empirically test this idea by looking at the differential effect of two knowledge dimension, depth and breadth, on creativity over the career. I find that the effect of knowledge depth becomes more and more negative as career age progresses, while the effect of knowledge breadth becomes more and more positive. Finally, in the third paper I test these ideas at the team level of analysis, by looking at the effect of resources on team creativity. I find that the resources have a stronger effect when career age and repeated collaboration are high.

João ALBINO PIMENTEL, Strategy & Management, 2016

Three Essays on the Influence of Political Connections on Firms International Expansion Strategy

Advisor(s): Pierre DUSSAUGE

This dissertation is composed of the three essays, each contributing to address part of the puzzle regarding how different types of political connections affect firms’ international expansion strategies and performance. The first essay examines how political connections moderate the relationship between host country attributes and international strategy in a sample of greenfield investments in manufacturing during the 2003-2010 period. The second and third essays examine how political connections directly impact a firm’s international expansion strategies and performance. The second essay investigates the role of different types of political connections on a firm’s international investments amount and risk profile. Finally, the third essay analyzes the role of political connections as an explanatory factor of firms’ ability to accelerate the provision of funding and development of their project finance-based investments. Both the latter two essays rely on an original dataset on various political connections enjoyed by the largest French firms during the 2003-2012 period.

Guo BAI, Strategy & Management, 2016

Three essays on the governance design in the digital age

Advisor(s): Bertrand MOINGEON

The main objective of this dissertation is to explain why coordinative efficiency,creative efficiency, together with static efficiency are all critical goals of governance design in digital age, and to explore innovative governance arrangements, beyond the one-dimensional line defined by “market” and “hierarchy”, that can facilitate the processes of integrative coordination, and collective creation in organizations.The dissertation is composed of three essays. Essay 1 is a theory paper that provides the overall theoretical arguments about why transaction cost economics (Williamson 1979, 1991, 1996, 2002) is no longer a satisfactory theoretical framework for governance design in the digital age, and offers a normative model which suggest possibilities of much more nuanced, complicated and pluralistic governance choices than suggested by transaction cost economics. It is argued that potential governance choices are not solely situated on a one-dimensional line between hierarchy and market, as transaction cost economics asserts. The rich connotations of socially constructed agency (Giddens, 1985; Greenwood et al. 2011) provide diverse possibilities of governance arrangements, which spread across a triangular plane in a three-dimensional space defined by static efficiency, coordinative efficiency and creative efficiency (see Figure 1). This paperprovides both graphic and mathematical presentations of this three-dimensional model for governance design, which can be applied to different levels of organizing.Essay 2 and 3 are two empirical papers that endeavor to extend Essay 1 by finding out the exact relationship between certain innovative governance arrangements with organizations’ performance in coordinative and creative efficiencies. Essay 2 focuses on the realization of integrative coordination in organizations. It found out that layered distributed organizational structure (Simon, 1962), broad-brushed ex ante plan (Edmondson, Bohmer and Pisano, 2001), and semi-structures (Brown and Eisenhardt, 1997) are beneficial in facilitating an ongoing coordination process when interdependencies are complex and uncertain. Essay 3 focuses on organizations’ performance in collective creativity (Shalley et al., 2004; George, 2007), especiallyon what governance arrangements can best allow collective creativity to emerge without overly sacrificing organizational stability and efficiency. It is discovered that “ordered disruption”, including ordered spatial disruption, ordered temporal disruption and ordered affective disruption, have positive effects on the emergence of collective creativity. Both Essay 2 and Essay 3 use collaborative organizations on smart city projects as the empirical setting. The findings of these two empirical papers are grounded on multiple case studies on those collaborative organizations.

Shumail MAZAHIR, Operations Management, 2016

Three essays on the effects of environmental regulations on supply chain practices

Advisor(s): Laoucine KERBACHE

Climate change and global temperature rise has made environmentallegislations a focal point of discussion. This dissertation is devoted to the study ofenvironmental legislations and their effect on supply chain practices. More precisely, ourcenter of interest is the product recovery based legislation along with compliance basedregulations. We explore the reuse potential and the environmental and economical aspects of different product recovery based legislation schemes by modeling a stackelberg game between a social welfare maximizing policy maker and a profit maximizing monopolistic firm and find that a combination of existing recoverypolicies i.e., a recovery target in combination with incentive structure such as taxation/subsidy may lead to better outcomes not only from environmental perspective but also from economical aspects. In Chapter 2, we extend the discussion comparative performance of the recovery legislation based schemes in presence of innovation and product design issues and show how unintended environmental outcomes may appear if the policy framework is not adequately designed. In Chapter 3, we capture the effect of recovery legislations and compliance based legislations on productselection when a firm serves a number of markets. We incorporate the effects ofuncertainty associated with market demands and recovery cost parameters and present a robust optimization based method for product selection and allocation decisions.

Alina ROSU, Finance, 2016

Three Essays in Asset Management

Advisor(s): Laurent CALVET

The first chapter shows that mutual funds that hold illiquid stocks (“illiquid funds”) outperform funds that hold liquid stocks (“liquid funds”). There is evidence this outperformance arises from stock selection skills of illiquid funds. The stocks held by illiquid funds outperform portfolios matched by characteristics. Liquid funds declare benchmarks that make their benchmark adjusted returns appear larger. A portfolio of stocks held by illiquid funds subsequently outperforms a portfolio of stocks held by liquid funds. The second chapter documents a predictability pattern in returns. This chapter identifies high opportunities in stocks with difficult valuation as times when returns of neglected stocks diverge from returns of covered stocks. Subsequent returns of stocks with difficult valuation are higher when beginning of period opportunities are high, as compared to when beginning of period opportunities are low. This is consistent with an information risk theory, where investors demand a higher premium to hold stocks with higher probability of informed trading, because they fear adverse selection. The third chapter explores instances when mutual funds change their style (style is regarded as risk exposure alongside usual factors). Mutual funds do not take more risk when it is more profitable to do so. After performing badly, mutual funds move closer to the style of good performing peer funds. Young funds' styles diverge from the style of old peer funds. Recently hired managers diverge in style from veteran managers of peer funds. When the average fund takes more risk alongside a style dimension, it does not simultaneously consider other style dimensions.