Are We Lost in Translation? The Impact of Using Translated IFRS on Decision-Making


Accounting in Europe

2015, vol. 12, n°1, pp.107-125

Departments: Accounting & Management Control

Keywords: Translation, Language, Decision-making

International Financial Reporting Standards (IFRS) are issued in English and subsequently translated into a multitude of languages to make them accessible to non-English-speaking IFRS users. In an international work context, IFRS users apply either the original English version or a translated version of an IFRS standard to input information presented in different languages. While research has reported numerous challenges inherent in IFRS translation, we know very little about the actual impact of using different languages on decision-making. Based on a series of 2 × 2 between-subjects experiments with German students who possessed different levels of accounting knowledge, we investigate the influence of language on decision-making. Our experimental manipulations entail the language of the accounting standard used (English vs. German) and the language of the input case information (English vs. German). Our German participants made decisions about a series of cases relating to IAS 24 Related Party Disclosures. Based on an expert benchmark solution for the cases, we determine the quality of participants’ decisions. We find that the use of IAS 24 in the participants’ mother tongue (German) has a positive impact on decision-making quality. We also find some support for a positive influence of the native language of the input case information relative to English input case information. Moreover, participants’ accounting knowledge and English language skill are positively associated with decision-making quality

Asset Divestment as a Response to Media Attacks in Stigmatized Industries


Strategic Management Journal

August 2015, vol. 36, n°8, pp.1205-1223

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Stigma, Impression management, Divestment, Media, Categories, Reputation, Defense industry

In stigmatized industries characterized by social contestation, hostile audiences, and distancing between industry insiders and outsiders, firms facing media attacks follow different strategies from firms in uncontested industries. Because firms avoid publicizing their tainted-sector membership, when threatened, they can respond by divesting assets from that industry. Our analyses of the arms industry demonstrate that media attacks on the focal firm and its peers both increase the likelihood of divestment for the focal firm. Specifically, attacks on the focal firm are the most consequential, followed by attacks on peers in the same industry subcategory, and by attacks on peers in different subcategories. These findings shed new light on divestment as a response to media attacks in stigmatized industries and lead us to rethink impression management theory

Bridging the Service Divide Through Digitally Enabled Service Innovations: Evidence from Indian Healthcare Service Providers


MIS Quarterly

March 2015, vol. 39, n°1, pp.245-264

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

Keywords: Developing countries, Digital divide, Healthcare, India, Institutions, Process view, Service divide, Service innovation, Service science, Service systems, Social entrepreneurship, Society

The digital divide is usually conceptualized through goods-dominant logic, where bridging the divide entails providing digital goods to disadvantaged segments of the population. This is expected to enhance their digital capabilities and thus to have a positive influence on the digital outcomes (or services) experienced. In contrast, this study is anchored in an alternative service-dominant logic and posits that viewing the divide from a service perspective might be better suited to the context of developing countries, where there is a huge divide across societal segments in accessing basic services such as healthcare and education. This research views the prevailing differences in the level of services consumed by different population segments (service divide) as the key issue to be addressed by innovative digital tools in developing countries. The study posits that information and communication technologies (ICTs) can be leveraged to bridge the service divide to enhance the capabilities of service-disadvantaged segments of society. But such service delivery requires an innovative assembly of ICT as well as non-ICT resources. Building on concepts from service-dominant logic and service science, this paper aims to understand how such service innovation efforts can be orchestrated. Specifically, adopting a process view, two Indian enterprises that have developed sustainable telemedicine healthcare service delivery models for the rural population in India are examined. The study traces the configurations of three interactional resources—knowledge, technology, and institutions—through which value-creating user-centric objectives of increasing geographical access and reducing cost are achieved. The theoretical contributions are largely associated with unearthing and understanding how the three interactional resources were orchestrated for service-centric value creation in different combinative patterns as resource exploitation, resource combination, and value reinforcement. The analysis also reveals the three distinct stages of service innovation evolution (idea and launch, infancy and early growth, and late growth and expansion), with a distinct shift in the dominant resource for each stage. Through an inductive process, the study also identifies four key enablers for successfully implementing these ICT-enabled service innovations: obsessive customer empathy, belief in the transformational power of ICT, continuous recursive learning, and efficient network orchestration.

Competition and The Operational Performance of Hospitals: The Role of Hospital Objectives


Production and Operations Management

November 2015, vol. 24, n°11, pp.1812–1832

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

Keywords: Hospitals, For-profit healthcare, Non-profit healthcare, Queueing models, Service provider competition

We examine the effect of a hospital's objective (i.e., non-profit versus for-profit) in hospital markets for elective care. Using game-theoretic analysis and queueing models to capture the operational performance of hospitals, we compare the equilibrium behavior of three market settings in terms of such criteria as waiting times and the total patient cost from waiting and hospital care payments. In the first setting, patients are served exclusively by a single non-profit hospital; in the second, patients are served by two competing non-profit hospitals. In our third setting, the market is served by one non-profit hospital and one for-profit hospital. A non-profit hospital provides free care to patients, although they may have to wait; for-profit hospitals charge a fee to provide care with minimal waiting. A comparison of the first two settings reveals that competition can hamper a hospital's ability to attain economies of scale and can also increase waiting times. A comparison between the second and third settings indicates that, when the public funder is not financially constrained, the presence of a for-profit sector may allow the funder to lower both the financial costs of providing coverage and the total costs to patients. Our analysis suggests that the public funder should exercise caution when using policy tools that support the for-profit sector -- for example, patient subsidies -- because such tools may increase patient costs in the long run; it might be preferable to raise the level of reimbursement to the non-profit sector.

C’era una Volta Kiobel: I Giudici Americani Tornano a Pronunciarsi sull’Extraterritorialità dell’Alien Tort Statute [Once Upon a Time, It Was Kiobel: American Courts Come Back to the Extraterritorialità of the Alien Tort Statute]


Diritto del Commercio Internazionale

2015, vol. 29, n°3, pp.885-906

Departments: Tax & Law, GREGHEC (CNRS)

Défis au Bas de la Pyramide


Management International

Spring 2015, vol. 19, n°3, pp.65-82

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Bas de la Pyramide, Entreprises multinationales, Ethique des affaires, ONGs, Développement économique, Base of the Pyramid, MNEs, Business ethics, NGOs, Economic development

Is « Base of the Pyramid » (BoP) the new Eldorado for companies or only « smoke and mirrors »? It is extremely challenging for companies to make profits through offering products and services to the world’s poorest populations, while supposedly tackling social or environmental issues. This article nevertheless aims to show that companies need to push on their initiatives at the BoP. We propose solutions to get over economic, social and political obstacles facing companies’ BoP initiatives and discuss the crucial role of these initiatives in terms of innovation and growth

Effects of the Open Method of Coordination (OMC) in Research and Innovation: Indirect Legislation in EU Policy-Making?


Journal of Legal Pluralism and Unofficial Law

2015, vol. 47, n°1, pp.22-38

Departments: Tax & Law, GREGHEC (CNRS)

Keywords: legal philosophy, European union, Jeremy Bentham, indirect legislation, pragmatic approach, research and innovation

This study offers new insights on the open method of coordination (OMC) of the European Union (EU) by focusing on the effects of this new method for producing EU regulation. The starting points here are that the OMC is not a radically new method of governance, and that it must be seen as an application of the theory of indirect legislation – as developed by Bentham. With the concept of indirect legislation, Bentham thinks a system of governing individuals that does not rest only on the fear of legal punishment, but is backed by the prospect of rewards and the fear of public censure. For the purpose of the comparison between the OMC and indirect legislation, the latter is considered as a system of social control, which – whether it be categorised as legal or not – is first and foremost normative and has effects, i.e. is applied, followed and enforced in a given community without resorting to the binding force of the law. Thanks to the input of indirect legislation, this study aims to understand what have been the real effects of the OMC and more particularly of the OMC applied to the research and innovation policy in Belgium

How Schlumberger Achieved Networked Information Leadership by Transitioning to a Product-Platform Software Architecture


MIS Quarterly Executive

September 2015, vol. 14, n°3, pp.105-124

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

To sustain its competitive position as the leader in providing information solutions to the oil and gas industry, Schlumberger transitioned to a cutting-edge product-platform software architecture by embedding a leading geological modeling software product—Petrel—within Ocean, its collaborative open software platform. The practices it used to overcome the challenges of the transition give rise to three principles that can be leveraged by other companies

I used to work at Goldman Sachs! How firms benefit from organizational status in the market for human capital


Strategic Management Journal

August 2015, vol. 36, n°8, pp.1164-1173

Departments: Management & Human Resources, GREGHEC (CNRS)

Keywords: Organizational status, Rent appropriation, Careers, Human capital, Investment banking industry

How does employer status benefit firms in the market for general human capital? On the one hand, high status employers are better able to attract workers, who value the signal of ability that employment at those firms provides. On the other hand, that same signal can help workers bid up wages and capture the value of employers' status. Exploring this tension, we argue that high status firms are able to hire higher ability workers than other firms, and do not need to pay them the full value of their ability early in the career, but must raise wages more rapidly than other firms as those workers accrue experience. We test our arguments using unique survey data on careers in investment banking

I used to work at Goldman Sachs! How firms benefit from organizational status in the market for human capital


Strategic Management Journal

aout 2015, vol. 36, n°8, pp.1164-1173

Departments: Management & Human Resources, GREGHEC (CNRS)

Keywords: Organizational status, Rent appropriation, Careers, Human capital, Investment banking industry

How does employer status benefit firms in the market for general human capital? On the one hand, high status employers are better able to attract workers, who value the signal of ability that employment at those firms provides. On the other hand, that same signal can help workers bid up wages and capture the value of employers’ status. Exploring this tension, we argue that high status firms are able to hire higher ability workers than other firms, and do not need to pay them the full value of their ability early in the career, but must raise wages more rapidly than other firms as those workers accrue experience. We test our arguments using unique survey data on careers in investment banking

Innovating for the future: charting the innovation agenda for firms in developing countries


Journal of Indian Business Resarch

2015, vol. 7, n°4, pp.314 - 320

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

Keywords: Developing countries, Augmented, Developed countries, Good-enough, Innovation strategy, Jugaad

Purpose– The purpose of this paper is to identify the four principles for firms in developing countries to enhance and augment their innovation agenda for staying competitive. With increasing globalization, firms need to continually calibrate and realign their innovation strategies to remain competitive. Although many firms in the developed countries are making sustained efforts to adopt the developing world perspective on innovation, similar efforts by firms in developing countries to reorient their innovation strategies to the developed world are minimal. In the long run, this might erode the competitiveness of firms in developing countries. Leveraging the global innovation strategy framework, the paper suggests four principles that can help developing country firms transition from a local to a global innovation strategy. Specifically, the paper exhorts developing country firms to move from a “good-enough” innovation approach to an “augmented” innovation philosophy that aims to serve the latent needs of the users. The four principles suggested for the developing country firms to further their innovation agenda are: invest in research; learn to fail; be patient; and alliance and acquire.Design/methodology/approach– The paper uses prior literature and frameworks to identify the four principles that firms in developing countries should follow for furthering their innovation agenda with a view to becoming global in their approach.Findings– The four principles suggested for the developing country firms to further their innovation agenda are: invest in research; learn to fail; be patient; and alliance and acquire.Originality/value– The paper identifies the four principles for firms in developing countries to enhance and augment their innovation agenda for staying competitive.

Instituting a transnational accountability regime: The case of Sovereign Wealth Funds and “GAPP”


Accounting Organizations and Society

July 2015, vol. 44, pp.15-36

Departments: Accounting & Management Control, GREGHEC (CNRS)

This paper analyses the development of a transnational accountability regime, – the Generally Accepted Principles and Practices (GAPP), introduced in 2008 for sovereign wealth funds. Facilitated by the International Monetary Fund, the regime aimed to improve the transparency, governance and accountability of these government-owned investment funds that originate primarily from the Middle East and Asia. I focus here on the struggles leading to the establishment of the boundaries of the GAPP accountability regime by diagnosing the accountability problem, determining the providers and the imagined users of the accounts and defining the appropriate course of action. I then analyse the struggles involved in negotiating the process and technologies used to establish the accountability relationship including the role of standards in accounting, audit and risk management, as well as transparency and compliance pressures. In each case I identify the different ideas or templates that emerged during the negotiations and how consensus was achieved through careful steering by a core coalition comprising the US Treasury and the largest, most legitimate funds. I highlight the need to go beyond typical fault lines in debates surrounding the origins of global governance regimes (e.g. local vs. global, western vs. non-western, core vs. peripheral) by focusing on emerging coalitions of local/global and western/non-western actors that increasingly drive such regimes. I show how the disproportionate representation of financial actors in such coalitions leads to less attention to questions of public accountability, and instead focusing such regimes on financial accountability. I further elaborate on the implications of the fall-back to transparency in transnational accountability regimes as a last resort and the types of resistance emerging against it

La mise en place d'une fonction d'audit interne dans l'administration centrale d’État et le possible renouvellement des services de contrôle


Revue Française d'Administration Publique

April 2015, vol. 3, n°155, pp.659-672

Departments: Accounting & Management Control, GREGHEC (CNRS)

Keywords: Audit interne, contrôle, réforme, services de contrôle

n juin 2011, le décret 2011‑775 et une circulaire du Premier ministre lancent la mise en place d’une fonction d’audit interne dans l’administration centrale d’État, afin d’y renouveler les modalités de contrôle, en conformité avec les normes professionnelles de l’audit interne. La mise en oeuvre de cette réforme implique les services de contrôle de l’ensemble des ministères, dont les pratiques sont amenées à s’homogénéiser. Ses effets sont néanmoins suspendus, non seulement à l’acception de l’audit interne qui prévaudra dans l’administration, mais aussi à l’acceptation simple de l’audit et de la réforme, dans un environnement administratif inégalement accueillant

La protection juridictionnelle effective en Europe ou l’histoire d’une procession d’Echternach


Cahiers de Droit Européen

2015, vol. 51, n°1, pp.113-150

Departments: Tax & Law, GREGHEC (CNRS)

Legal indicators, global law and legal pluralism: an introduction


The Journal of Legal Pluralism and Unofficial Law

March 2015, vol. 47, n°1, pp.9-21

Departments: Tax & Law

Keywords: Mathematical turn, Global law, Indicators, Management

This article explores the development of legal metrics by focusing on the links between legal indicators, global law and legal pluralism. In particular, it addresses the question of the performative role that legal indicators convey in a situation of legal pluralism in global law. First, I argue that indicators are not only a set of socio-legal research methods conducted periodically and systematically with the aim of describing the evolution of a socio-legal reality over time. From a pluralistic perspective, indicators are also devices factually constraining the behaviour of individuals and institutions at different geographical scales. I show that as legal indicators become entrenched in managerial modes of governance, they adopt the role of performance measures. As such, they bridge the factual, normative and behavioural dimensions of social normativity. They rely on data gathering, benchmarking and auditing practices to attempt framing legally relevant behaviour. Second, I argue that legal indicators are triggering a mathematical turn in legal thinking, and so transforming the analytical dimension of legal analysis. The mathematical reasoning underpinning indicators increasingly attempts to supersede, in practice, linguistic and conceptual modes of legal reasoning in the mission of constructing legal concepts, relating them to one another and giving them sense in a specific context. In brief, this article attempts to show that legal indicators are introducing to the legal field a set of practices which are central to any contemporary approach to public and private management, transforming en passant, the way we experience, see and think about law in the context of globalisation

Mesures à vocation extraterritoriale et lois de police: un revers à l'hégémonie juridique outre-Atlantique?


Recueil Dalloz

June 11 2015, vol. 2015, n°21, pp.1260-1263

Departments: Tax & Law, GREGHEC (CNRS)

Keywords: Conflit de lois, Contrat et obligations, Loi applicable, Embargo à destination de l’Iran, Loi de police

En application de l’article 9 du règlement « Rome I » il ne peut être donné effet à une loi de police étrangère que s’il s’agit d’une loi de police du lieu d’exécution du contrat et si cette loi de police rend illégale l’exécution du contrat. En l’espèce, sans avoir à se prononcer sur la qualification de loi de police des dispositions du code des réglementations fédérales (CFR), instituant un embargo sur les exportations à destination de l’Iran, la cour ne peut donner d’effet à la loi américaine, qui n’est ni une loi de police française, ni une loi de police iranienne

Participatory Budgeting at a Community Level in Porto Alegre: a Bourdieusian Interpretation


Accounting, Auditing and Accountability Journal

2015, vol. 28, n°5, pp.739-772

Departments: Accounting & Management Control, GREGHEC (CNRS)

Keywords: Brazil, Democracy, Bourdieu, Accountability, Emancipation, Participatory budgeting

PurposeThe purpose of this paper is to explore how accountability practices can enable sociopolitical emancipation.Design/methodology/approachThe authors explore the emancipatory potential of accountability from a Bourdieusian perspective. The study is informed by a two-month socio-ethnographic study of the participatory budgeting (PB) process in Porto Alegre (Brazil). The field study enabled us to observe accountability and participatory practices, conduct 18 semi-structured interviews with councillors, and analyze survey data gathered from budgeting participants.FindingsThe paper demonstrates how PB both strengthened the dominants in the Porto Alegrense political field and changed the game played in this field; was characterized by accountability practices favouring the election of councillors with distinctive capitals, who were “dominated-dominants dominating the dominated” ; brought emancipatory perspectives to councillors and, by doing so, opened the path to social change but also widened the gap with ordinary participants.Research limitations/implicationThe research supports Shenkin and Coulson’s (2007) thesis by demonstrating that accountability, when associated with participative democracy, can create substantial social change. Significantly, by investigating the emancipatory potential of accountability, the authors challenge the often taken-for-granted assumption in critical research that accountability reinforces asymmetrical power relations, and the authors explore alternative accountability practices. Doing so enables us to rethink the possibilities of accountability and their practical implications.Originality/valueThe authors study the most emblematic example of participatory democracy in South America; and the authors use Bourdieu’s theoretical framework to approach accountability at a community level.

Peer conformity, attention, and heterogeneous implementation of practices in MNEs


Journal of International Business Studies

October-November 2015, vol. 46, n°8, pp.917-937

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Multinational corporations (MNCs) and enterprises (MNEs), Institutional theory, Corporate social responsibility, Practice implementation, Attention, Simultaneous equation modeling

How do subsidiaries respond to normative demands from both their headquarters and local external constituents? We propose that subsidiaries pay varying levels of attention to either demands depending on their peers’ norm-conforming behavior, resulting in heterogeneous practice implementation. We study the implementation of 25 practices, associated with three corporate social responsibility (CSR) issues in 101 worldwide subsidiaries of a multinational enterprise (MNE). Consistent with the idea that attention is limited and therefore selective, we find that external peers' conformity to the CSR norm directs subsidiaries’ attention toward the CSR-related demands of external constituents at the expense of the demands from the headquarters. However, internal peers’ conformity increases attention to both external and headquarters’ demands related to CSR. As higher attention levels result in higher practice implementation, internal and external peers' conformity drives the heterogeneity of practice implementation in the MNE. Our results suggest the need to rethink the influence of peers’ conformity on subsidiaries’ implementation of practices, as it not only triggers mimicry based on legitimacy but also and simultaneously a more strategic response based on internal and external competitive threats and attention allocation.

Projecting Different Identities: A Longitudinal Study of the 'Whipsaw' Effects of Changing Leadership Discourse About the Triple Bottom Line


Journal of Applied Behavioral Science

September 2015, vol. 51, n°3, pp.336-374

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Leadership, Corporate social responsibility, Triple bottom line, Mergers & acquisitions, Managerial discourse, Projected identity

This paper focuses on changes in leadership’s discourse about the "triple bottom line" in Ben & Jerry’s ice cream from its founding days through to its acquisition by and integration into Unilever. For this study, we analyzed CEO claims about "who we are" from their letters in annual reports (what we label projected identity). A sample of employees (both long-service and relative newcomers) were interviewed about their perceptions of B&J’s over the thirty years covered.Findings reveal that successive CEO’s stressed different "logics" about the business and what would make it successful over the years with the founders emphasizing a strong linkage between the economic, product, and social components of the company’s triple bottom line and their next three successors decoupling these components and pushing, each in different ways, for stronger financial returns. As a result, organization members were "whipsawed" between their CEOs’ different logics and identity claims.The CEO letters exhibit a progression over time from a more normative to utilitarian tone familiar in the organizational identity literature. The messaging shifts, however, when a fifth CEO takes charge and re-integrates the firm’s triple bottom line. Thus the firm’s projected identity evolved in a U pattern starting with an integrated triple bottom line logic, shifting to a more linear logic where the economic mission dominates, and then reintegration where multiple bottom lines are embraced once again.Here we explore both the strategic (external) and personal (internal) challenges informing the different CEOs’ messages over years, the whipsaw effect on staff, and the longer term evolution of projected identity in the company and reemergence of its integrated triple bottom line. This study contributes to the CSR and organization identity literatures by documenting how CEO’s (and their company) must struggle with maintaining an integrated triple bottom line in the context of commercial challenges and major changes involved in M&A. It also speaks to the practical matters of keeping normative traditions alive amidst competing pressures for change

Putting Communication Front and Center in Institutional Theory and Analysis


Academy of Management Review

January 2015, vol. 40, n°1, pp.10-27

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Communication, Organizational change, Institutional theory (Sociology), Cognition, Linguistics, Social interaction, Frames (Social sciences), Discourse theory (Communication), Performative (Philosophy), Categorization (Psychology)

We conceptualize the roots of cognitive, linguistic, and communicative theories of institutions and outline the promise and potential of a stronger communication focus for institutional theory. In particular, we outline a theoretical approach that puts communication at the heart of theories of institutions, institutional maintenance, and change, and we label this approach communicative institutionalism. We then provide a brief introduction to the set of articles contained in the Special Topic Forum on Communication, Cognition, and Institutions and describe the innovative theorizing of these articles in the directionWe conceptualize the roots of cognitive, linguistic, and communicative theories of institutions and outline the promise and potential of a stronger communication focus for institutional theory. In particular, we outline a theoretical approach that puts communication at the heart of theories of institutions, institutional maintenance, and change, and we label this approach communicative institutionalism. We then provide a brief introduction to the set of articles contained in the Special Topic Forum on Communication, Cognition, and Institutions and describe the innovative theorizing of these articles in the direction of communicative theories of institutions. Finally, we sketch a research agenda and further steps and possibilities for theory and research integrating communication and institutions of communicative theories of institutions. Finally, we sketch a research agenda and further steps and possibilities for theory and research integrating communication and institutions.

Reaching the Rich World's Poorest Consumers


Harvard Business Review

March 2015, vol. 93, n°3, pp.46-53

Departments: Marketing, Strategy & Business Policy

Research on information systems failures and successes: Status update and future directions


Information Systems Frontiers

February 2015, vol. 17, n°1, pp.143-157

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

Keywords: IS success, IS failure, IS implementation, Work systems, Technochange, Change management

Information systems success and failure are among the most prominent streams in IS research. Explanations of why some IS fulfill their expectations, whereas others fail, arecomplex and multi-factorial. Despite the efforts to understand the underlying factors, the IS failure rate remains stubbornly high. A Panel session was held at the IFIP Working Group 8.6 conference in Bangalore in 2013 which forms the subject of this Special Issue. Its aim was to reflect on the need for new perspectives and research directions, to provide insights and further guidance for managers on factors enabling IS successand avoiding IS failure. Several key issues emerged, such as the need to study problems from multiple perspectives, to move beyond narrow considerations of the IT artifact, and to venture into underexplored organizational contexts, such as the public sector

Sanctioning in the Wild: Rational Calculus and Retributive Instincts in Gourmet Cuisine


Academy of Management Journal

June 2015, vol. 58, n°3, pp.906-931

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Cooperation, Sanctioning, Reciprocity, Retribution, Field experiment, Knowledge transfer

Why do we sanction norm violations? Despite near universal agreement on the role of sanctions for maintaining norms of cooperation, scholars hotly dispute whether individuals sanction based on a rational calculus or because of strong retributive instincts. In this paper we report on a mixed-method field study examining sanctioning behavior. Our goal is to extend theories of sanctioning by evaluating the conditions under which individuals are more likely to administer a sanction in response to a norm violation. To guide the development of our hypotheses, we engage in a qualitative examination of sanctioning decisions in the context of gourmet cuisine. We then test our predictions in a field experiment involving more than 500 gourmet chefs in Italy. Our results suggest that individuals follow retributive instincts, but they also engage in cost/benefit calculations. Indeed, we find that the two logics of sanctioning jointly influence participation in social exchange. Recognizing their own tendency to sanction at a cost, individuals avoid circumstances that could trigger the need for costly sanctions

Social Control in Online Communities of Consumption: A Framework for Community Management


Psychology and Marketing

March 2015, vol. 32, n°3, pp.250-264

Departments: Marketing, GREGHEC (CNRS)

Online communities of consumption (OCCs) represent highly diverse groups of consumers whose interests are not always aligned. Social control in OCCs aims to effectively manage problems arising from this heterogeneity. Extant literature on social control in OCCs is fragmented as some studies focus on the principles of social control, while others focus on the implementation. Moreover, the domain is undertheorized. This article integrates the disparate literature on social control in OCCs providing a first unified conceptualization of the topic. The authors conceptualize social control as a system, or configuration, of moderation practices. Moderation practices are executed during interactions operating under different governance structures (market, hierarchy, and clan) and serving different purposes (interaction initiation, maintenance, and termination). From this conceptualization, important areas of future research emerge and research questions are developed. The framework also serves as a community management tool for OCC managers, enabling the diagnosis of social control problems and the elaboration of strategies and tactics to address them

Technostress creators and job outcomes: theorising the moderating influence of personality traits


Information Systems Journal

july 2015, vol. 25, n°4, pp.355-401

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

Keywords: Technostress creators, Personality, Transactional model of stress and coping, Eustress, Job burnout, Job engagement

Although prior research has examined the influence of technostress creators on job outcomes, insights into the influence of personality traits on the perceptions of technostress creators and their consequent impacts on job outcomes are rather limited. Such insights would enable a deeper understanding about the effects of individual differences on salient job-related outcomes. In this research, by leveraging the distinctions in personality traits offered by the big five personality traits in the five-factor model and grounding the research in the transactional model of stress and coping, we theorise the moderating influence of personality traits on the relationships between technostress creators and job outcomes, namely job burnout and job engagement. Specifically, the study theorises the mechanisms through which each of the specific personality traits openness-to-experience, neuroticism, agreeableness, conscientiousness and extraversion interacts with technostress creators to differently influence job burnout and job engagement. We test the proposed model in a field study based on a survey of senior organisational managers who regularly use information and communication technologies for executing professional tasks. Although technostress creators are generally associated with negative job outcomes, our results also show that for individuals with certain personality traits, technostress creators may result in positive job outcomes. The study thus contributes to the technostress literature, specifically by incorporating the salient role of individual differences. The study also provides insights for managers who should pay special attention to allocating specific job roles to employees with particular personality traits in order to optimise job-related outcomes

The Importance of the Chief Audit Executive's Communication: Experimental Evidence on Internal Auditors' Judgments in a ‘Two Masters Setting’


International Journal of Auditing

November 2015, vol. 19, n°3, pp.166-181

Departments: Accounting & Management Control

Keywords: Corporate governance, Internal audit, Internal control, Audit judgment

The position of an internal audit function (IAF) as a ‘servant of two masters’ (i.e., management and the audit committee) may lead to a conflict of priorities. In this setting, the tone at the top set by the Chief Audit Executive (CAE) plays a critical role in balancing the potentially competing priorities of the ‘two masters’. We test twohypotheses in a mixed experimental design with the communicated preferences of the CAE to subordinates (cost reduction vs. effectiveness of internal controls) as a between-subjects factor, and levels of ambiguity (low, medium, high) manipulated within-subjects. Findings suggest that the emphasis in the CAE’s message can influence internal auditors’ judgments, and such influence is more pronounced when task ambiguity is high, resulting in the elimination of a significantly greater number of internal controls and the design of less effective processes. We discuss implications of our results for modern IAFs and the role of the CAE

The Intentions with Which the Road is Paved: Attitudes to Liberalism as Determinants of Greenwashing


Journal of Business Ethics

May 2015, vol. 128, n°2, pp.305-320

Departments: Strategy & Business Policy

Keywords: Corporate social actions, Greenwashing, Economic liberalism, Competition, Individual responsibility, Country-level institutions

Previous literature has shown contradictory results regarding the relationship between economic liberalism at the country level and firms’ engagement in corporate social action. Because liberalism is associated with individualism, it is often assumed that firms will engage in mostly symbolic rather than substantive social and environmental actions; in other words, they will practice 'greenwashing'. To understand how cultural beliefs in the virtues of liberalism affect the likelihood of greenwashing, we disentangle the effects of the distinct and co-existing beliefs in the virtues of economic liberalism. We begin by conducting an exploratory qualitative analysis of managers’ sentiments on this matter, based on a focus group methodology. We then use these investigative elements to articulate a comparison of the conflicting theoretical arguments: in liberal contexts, are firms, as social entities, inherently selfish or pro-active when it comes to corporate social actions? We empirically test our hypotheses on a large-scale dataset. Finally, we show paradoxically that in countries where beliefs in the virtues of competition are strong, firms are more likely to greenwash, while in countries where beliefs in the virtues of individual responsibility are prominent, firms are more likely to focus on concrete actions. These findings suggest that in contexts where weak governments are seen as ideal, firms might feel the need to step in to fill institutional voids, in contexts in which competitive mindsets dominate, this tendency is counterbalanced

The Sanctity of Borderland: The Ukraine-Related Sanction Programs


Diritto del Commercio Internazionale

2015, vol. 1, pp.239-257

Departments: Tax & Law, GREGHEC (CNRS)

In October 2014 the Russian press agency ITAR-TASS has published a curious table picturing the Russian business entities targeted with international economic sanctions in relation to the political crisis in Ukraine (1). The table shows that these entities change depending on the country enacting the sanctions. For example Gazprombank, the third largest Russian bank, is targeted by the United States, the European Union, and Canada, while Bank Rossiya, which is the private bank of President Putin’s inner circle, is not subject to any sanction by the EU (2). By the same token, no sanction is established by the EU against privately owned companies, while the US, Canada and Australia target some, like Rosneft, the world’s largest oil producer. Moreover, while the EU addresses some entities making business in Crimea, like the sea transport company Sevastopol Commercial Seaport, the US does it only marginally, and so do Canada and Australia. Finally, only the US is active against companies operating in the military sector; in this regard, the EU targets only Concern Almaz-Antey, a firm specialized in anti-aircraft defence systems. As a whole, the table raises concerns as to the effectiveness of these «targeted sanctions», when they work in such an intermittent fashion.At the center of our analysis stand the economic sanctions adopted against certain private subjects participating in the uprising of the Eastern part of Ukraine against Kyiv’s central government (3). These sanctions are grounded on the alleged violation of the «sanctity» of Ukrainian borders—a quite curious qualification, though, given that Ukraine’s name itself means, in fact, «on the edge», «borderland» (4). If these sanctions represent the typical reaction to violations of international law perpetrated by the Russian Federation, why are they applied selectively? Which are the policies behind the choice of targeting one entity but not another? Arguably, a lack of coordination globally might ultimately frustrate the sanctions’ genuine goals and create inconsistencies in their enforcement.This article examines the reasons and consequences of such lack of coordination (5). It proceeds along with three lines. First, it investigates the factual premises that triggered the adoption of targeted sanctions (§ 2); second, it delineates the scope and effects of the targeted sanction regimes elaborated in the US and the EU (§ 3); finally, it highlights some flaws in the sanctions regimes as a whole (§ 4). In doing this, it tries to challenge the common impression that no one is doing anything with the Ukrainian crisis: someone is definitely doing something about the violations committed against Ukraine’s territorial integrity. The problem, yet, is that the system continues to be imperfect due to the existing differences among States in approaching individual targeted sanctions

The Strength of Many Kinds of Ties: Unpacking the Role of Social Contacts Across Stages of the Job Search Process


Organization Science

July-August 2015, vol. 26, n°4, pp.1040-1058

Departments: Management & Human Resources, GREGHEC (CNRS)

Keywords: Job search, Stage process, Matching, External labor market, Careers, Mobility, Managerial jobs, MBA, Occupations, Social contacts, Social networks, Tie strength, Network range

The topic of job mobility has received increasing attention in recent years. Yet, surprising in light of the wealth ofresearch on social networks and job attainment, we do not have a unified model of the impact of different kinds ofsocial contacts on job search success. In this paper I show that contacts are differently beneficial for job seekers depending on the stage of the job search process that job seekers are engaged in. Specifically, three stages of the job search process can be distinguished in which social contacts fulfill different roles for the job seekers: deciding the types of jobs for which to apply, submitting job applications, and preparing for interviews. I propose that contacts who are spread across different occupations are conducive to applying to more types of jobs, yet it is contacts who are more focused across occupations that are beneficial for being invited to more interviews—relative to the number of job types applied for—and for converting the interviews into offers. In addition, contacts with lower relationship depth with the job seeker are more helpful for getting invited to interviews, whereas contacts who have more frequent interactions with the job seeker are more helpful for converting interviews into offers. Analyses using a unique longitudinal data set on the job searches of 226 participants in an MBA program offer robust evidence in support of the hypotheses. The results suggest that external mobility is best enabled when job seekers engage with—and learn from—different kinds of contacts across stages of the job search process

Time series properties of the renewable energy diffusion process: Implications for energy policy design and assessment


Renewable & Sustainable Energy Reviews

December 2015, vol. 52, pp.1680-1692

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

Keywords: Unit root, Cross-sectional dependence, Renewable energy diffusions, Renewable energy policies

Confronted by increasingly tight budgets and a broad range of alternative options, policy makers need empirical methods to evaluate the effectiveness of policies aimed at supporting the diffusion of renewable energy sources (RES). Rigorous empirical studies of renewable energy policy effectiveness have typically relied on panel data models to identify the most effective mechanisms. A common characteristic of some of these studies, which has important econometric implications, is that they assume that the contribution of RES to total electricity generation will be stationary around a mean. This paper reviews such assumptions and rigorously tests the time series properties of the contribution of RES in the energy mix for the presence of a unit root. To that end, we use both individual and panel unit root tests to determine whether the series exhibit non-stationary behavior at the country level as well as for the panel as a whole. The analysis, applied to a panel of 19 OECD countries over the period 1990-2012, provides strong evidence that the time series of the renewable share of electricity output are not stationary in 17 of the 19 countries examined. This finding has important implications for energy policy assessment and energy policy making, which are discussed in the paper

Value Creation and Value Capture under Moral Hazard: Exploring the Micro-Foundations of Buyer-Supplier Relationships


Strategic Management Journal

August 2015, vol. 36, n°8, pp.1146-1163

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Value-based strategy, Organizational incentives, Agency theory, Rivalry, Moral hazard

We combine the formalism of a principal–agent framework with a value-based analysis in order to investigate the micro-foundations of business partner selection and the division of value in contracting relationships. In particular, we study how the key contracting parameters such as efficiency, transactional integrity, incentive alignment, and gaming affect outcomes when buyers face competing suppliers. We show that integrity and efficiency increase value creation and capture for all parties and are complements. While incentive gaming is unambiguously bad for value creation, and reduces buyers' value capture, it can benefit some suppliers. For alignment, we find that neither party has an incentive to use fully aligned performance measures that maximize total value creation. We conclude by analyzing buyers' and suppliers' incentives to invest in integrity


Organizations, Strategy and Society: The Orgology of Disorganized Worlds

Organizations, Strategy and Society: The Orgology of Disorganized Worlds


Routledge, New York


Organizations are ubiquitous, from clubs and associations to firms and public agencies. They confer meaning to all of us, and our attachment to and membership of organizations have a profound effect on all areas of our lives. However, in our increasingly turbulent world, these organizations run the risk of disappearing or losing their legitimacy, creating a sense of pointlessness and absurdity.Organizations, Strategy and Society: The Orgology of Disorganized Worlds draws on neo-institutional and strategy theories of competitive advantage and develops an integrative approach to theorizing organizations and their behaviors, termed ‘orgology’. It explains that organizations can act strategically to protect and renew the meaning that individuals give to their lives. In so doing, organizations that survive and thrive impose their logics on society, thereby influencing what is legitimate or not. In turn, individuals must reinterpret their multiple associations with organizations and contribute to reinforcing or inhibiting social evolutions. This new way of understanding organizations’ relationships with society results in a reconsideration of management and the role of individuals in building their future.This book will be of interest to students at all levels, to researchers in organizational studies, strategic management and sociology, as well as to people willing to reorganize their world

Social business et base de la pyramide

Social business et base de la pyramide


ISTE Editions


Les projets social business ou BoP (Base of Pyramid) menés par les multinationales des pays développés dans les pays émergents ont un double objectif. Ils permettent aux populations pauvres d'acheter des biens et services auxquels elles ont peu accès et constituent également de nouveaux relais de croissance pour ces grandes entreprises. Au-delà de cet enjeu de développement, ces projets initiés avec les populations pauvres et les acteurs de la société civile sont de puissants leviers d'innovation, voire d'innovation inversée, et même de renouveau stratégique. Social business et base de la pyramide (SBoP) analyse en détail les cas d'initiatives SBoP des multinationales comme Danone, Schneider Electric, Renault, Essilor ou Bel. Il explore leur rôle novateur dans la stratégie de ces entreprises, leur permettant ainsi de se réinventer et d'être simultanément plus durables et compétitives face aux défis environnementaux et sociaux. **L'auteure** Co-fondatrice et directrice de la Chaire "Social business - Entreprise et pauvreté" et du Mastère HEC "Management du développement durable", Bénédicte Faivre-Tavignot est directrice du Centre Society & Organizations

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