Faculty Research, News, and Awards

CBA Faculty Info Roundup for September 2024

Several faculty have been recognized with prestigious awards, promotions, and had papers published in FT50 and other impactful journals. These accomplishments not only reflect the faculty’s dedication to advancing knowledge but also strengthen the College of Business Administration’s influence within the academic and professional communities. Alumni and former students have much to be proud of as the college continues to set new standards in business education and research.

The College also recently launched the Dean’s Research Seminar Series where faculty and scholars are invited to present their work. Read that full story here.

CBA Faculty Awards:

Chantal van Esch

Journal of Management Education’s Outstanding Reviewer for 2023

Anthony Orlando

Jagdish N. Sheth Award for Excellence in Scholarship

CBA Faculty Promotions:

Accounting 

 Dr. Mohamed Gomaa — Promoted to Professor 

Computer Information Systems 

 Dr. Mehrdad Koohikamali — Promoted to Associate Professor

Finance, Real Estate and Law 

 Dr. Sangho Lee — Promoted to Associate Professor

International Business and Marketing 

 Dr. Anthony Kim — Promoted to Professor

• Dr. Lin Ong — Promoted to Associate Professor

• Dr. Elif Ozkaya —  Promoted to Associate Professor

Technology and Operations Management 

Dr. Honggang Wang — Promoted to Associate Professor

2024 CBA & SGSB Faculty Research Publications:

Zeynep G. Aytug

• Rua, T. and Aytug, ZG. (2024). Teaching virtual presentation with a theory-based feedback intervention: An experiential class project for the post-pandemic era. Decision Sciences Journal of Innovative Education, 22(2). https://doi.org/10.1111/dsji.12307

Abstract

This study draws from feedback intervention theory and professional communications theory to present a versatile, experiential class project to develop and improve students’ virtual communications and presentation skills by combining hard and soft-skill development, multisource feedback, and self-reflection. After successfully using this class project for four semesters, data were collected from six graduate classes (N = 145) to assess the project's effectiveness and students’ perceptions. Positive student feedback, control group–trained group comparisons, and the trained group's Time 1–Time 2 performance comparisons provide supportive evidence for the effectiveness of the project as a valuable learning tool in helping students develop virtual communication and presentation skills. As companies and institutions across industries continue to utilize virtual work arrangements, this project will be a useful tool for preparing students for the postpandemic digital business world.

 Deborah Brazeal

• Schenkel, M.T., McDowell, W.C. & Brazeal, D.V. Business model novelty and small firm innovativeness: the relationship with need for closure and creative self-efficacy. Int Entrep Manag J 20, 141–162 (2024). https://doi.org/1007/s11365-023-00943-5

Abstract

The purpose of this paper is to examine the relationship between the need for closure and creative self-efficacy, two dynamic cognitive mechanisms, in conjunction with the impact of business model novelty on the ability of small firms to innovate. The driving premise is that both need for closure and creative self-efficacy enable entrepreneurs to effectively operate in the myriad complex opportunities and challenges that are encountered through the development of novel business models that may enhance firm innovativeness. Utilizing hierarchical regression on a sample of 212 respondents, we find that the adoption of a novelty-centered business model, creative self-efficacy, and a need for cognitive closure are all associated with firm innovativeness. The results further show that a novelty-centered business model fully mediates the relationship between need for closure and small firm innovativeness and partially the relationship between creative self-efficacy and small firm innovativeness. Implications and future research directions are also discussed.

Michael Caligiuri

• Chen, Anjier, Treviño, Linda K., Joshi, Aparna, Caligiuri, Michael D. Hireability prospects for known bystander reporters of sexual harassment: Moral character, agreeableness, and gender effects. Journal of Organizational Behavior. (2024). https://doi.org/10.1002/job.2812

Abstract

Bystander intervention has been promoted across organizations to combat sexual harassment and its deleterious effects. However, the career consequences of bystander reporters (e.g., their hireability prospects inside and outside the organization)—those who report sexual harassment on behalf of coworkers—are not well understood. Based on the social identity and person perception literatures, which suggest that recruiters are motivated to hire candidates with attributes helpful to the organization (perceived moral character and agreeableness), we proposed that candidates' history of reporting sexual harassment on behalf of a victim leads to perceived high moral character but low agreeableness, which subsequently have countervailing effects on hireability of these known reporters. We found support across three experimental studies using realistic hiring decision-making tasks and various employee samples. Based on the social identity literature, we further argued that perceptions and hireability of the known reporters depend on recruiter and candidate genders. In Study 2 and Study 3, we consistently found that the positive effect of reporting on perceptions of candidate moral character was weaker when the recruiter was male (vs. female) but we found mixed results for candidate gender effects. Theoretical and practical implications of these results are discussed.

Mandy Farag and Mohamed Gomaa

• Lee, Nian Lim (Vic), M. Khalaf, M. Farag, M. Gomaa. (2024). The impact of critical audit matters on audit report lag and audit fees: Evidence from the United States.  Journal of Financial Reporting and Accounting 1108/JFRA-03-2023-0158

Abstract

This paper aims to investigate the impact of the implementation of the critical audit matters (CAMs) disclosure requirement and the subsequent relationship between CAM disclosures and audit report lag, as well as audit fees in the USA. This study used difference-in-differences analyses to investigate the impact that the implementation of the requirement for auditors to report CAMs on their audit report has on the audit process. It also used levels regression models to examine the relationship that CAM disclosures have with audit report lag and audit fees. This study found that the  implementation of the CAM disclosure requirement in the USA reduced audit report lag while not significantly affecting audit fees. This suggests that the CAM disclosure requirement may increase the cooperation between auditors and managers and improve the efficiency of the audit process. This study’s results are informative for assessing the economic impact of requiring CAM disclosures, which should be of importance to regulators, auditors and accounting researchers. This study used different approaches to investigate two aspects of the CAM disclosure requirement – the effect of the implementation of the disclosure requirement and the subsequent effects related to CAM reporting outcomes. Unlike many previous studies investigating CAM disclosures, which relied on experiments and questionnaires, this study used actual CAM disclosure data in the USA to investigate the impact on audit report lag and audit fees.

Mohamed Gomaa

• Gomaa, M., Nian Lim (Vic) Lee, R. Martin-Sheridan. (2024). Accounting System Conceptual Models: The Effect of Alternative Models on Auditors’ Internal Control Review Effectiveness and Efficiency.  Journal of Theoretical Accounting Research. Forthcoming.

Indira Guzman

• Maciel, Cristiano, Guzman, Indira R., Galarraga Berardi, Rita C., Rodriguez-Rodriguez, Nadia, Salgado, Luciana, Bolan Frigo, Luciana, Branisa, Boris, Jiménez, Elizabeth. An Open Data Platform to Advance Gender Equality in STEM in Latin America. Communications of the ACM. 67 (90-92). (2024) https://dl.acm.org/doi/10.1145/3653294

Abstract

A lack of recent and reliable data is partly to blame for gender gaps in science, technology, engineering, and mathematics (STEM) in Latin America. This project aims to contribute to the generation of cross-country comparable data to assess policies and interventions to reduce the gender gap in STEM, especially by increasing the number of female leaders in universities, industries, and public institutions. The project team will map the factors that influence the career development of women in STEM, document and analyze successful and less successful initiatives, and identify lessons learned. An open-data infrastructure will be used to map the information and build a platform for improved collaboration between those in education, government, and industry seeking to reduce the STEM gender gap in Latin America. The platform initially will be available in three languages (Spanish, Portuguese, and English), starting with the three countries participating in the consortium – Brazil, Bolivia, and Peru – with a view to future expansion to other countries in the region and elsewhere.

Denis Iurchenko

• Stein, R., Schwartz, T., & Iurchenko, D. (2024). The role of actively open-minded thinking and control orientation in venture capital investment outcomes. Venture Capital, 1–27. https://doi.org/10.1080/13691066.2024.2365252

Abstract

Research has started to show how predictive and control strategies can each be effective in investment and entrepreneurial decisions. We bridge effectuation theory with theory on Actively-Open Minded Thinking (AOT), a construct tapping analytical, debiased reasoning skills and, in a study of venture capital investors, we support a novel hypothesis that AOT and control orientation have a complimentary role in predicting success. When either AOT or control orientation, but not both, is relatively high, investors report more homerun exits. We contribute to the effectuation literature by suggesting that AOT is a type of predictive logic that captures the benefits of prediction not previously captured by conceptualizations. Additionally, while the venture capital literature has previously stressed that venture capitalists tend to be prediction oriented, we show that control orientation can also be linked to success.

• Iurchenko, D., Petty, J. S., & Jain, S. (2023). Collective entrepreneurship makes strange bedfellows: Examining framing activity in construction of the equity crowdfunding market. Journal of Small Business Management, 62(3), 1652–1683. https://doi.org/10.1080/00472778.2022.2161555

Abstract

The digital revolution paved the way for changes in the field of entrepreneurial finance, with platform-based funding mechanisms being viewed as a mode for democratizing equity investing. Despite this belief, equity funding platforms were not available to the public for a while, owing to existing regulations that made them illegal. Based on the analysis of a unique longitudinal dataset, the results of our study suggest that the formation of new markets may be successful when multiple actors, including the government, collectively utilize strategic framing that promotes public interest and engages incumbents in a nonthreatening manner. These dynamics highlight the key role that collective entrepreneurship plays in the emergence of new market spaces.

Yuka Nishikawa

• Joo, Mohammad H., Nishikawa, Y., Dandapani, K., (2024). Religiosity, Gambling Attitudes, and Fintech Credit Adoption. Finance Research Letters https://doi.org/10.1016/j.frl.2024.105958

Abstract

We investigate how religious beliefs and gambling attitudes play a role in the adoption of fintech mortgage lending, a new type of lending facilitated by online platforms. Prior research suggests that religiosity is associated with greater risk aversion and that regions with a higher ratio of Catholics to Protestants exhibit a stronger inclination towards gambling. Based on these arguments and the risky nature of fintech credit, we conjecture that fintech mortgage lending is less adopted in regions with high religiosity and more adopted in regions with high gambling preference. We empirically test and find support to these hypotheses.

• Joo, Mohammad H., Nishikawa, Y., Jayaraman, V., “Unlocking the Role of Language and National Culture: Effects on Supply Chain Operations in a Global Context” Sage Journals. https://doi.org/10.1177/10591478241254853

Abstract

We investigate how language, an essential part of culture, affects manufacturing firms’ supply chain operations management practices, including the cash conversion cycle and its components. Based on the Sapir–Whorf hypothesis, which theorizes that a language's structure may affect how its speakers think, prior studies have established that using the future tense to describe future events increases one's mental distance from the future, reducing a person's concern about it. Building upon this foundation, we hypothesize that firms in weak future-time reference countries are likely to be better prepared for future volatility in demand for their products and therefore carry higher inventory to avoid potential stockouts. We also hypothesize that firms in weak future-time reference countries are more apprehensive about long-term relationships with their customers and hence extend longer credit terms to them. Finally, we hypothesize that firms in weak future-time reference countries have longer operating and cash conversion cycles due to carrying higher levels of inventory and extending longer credit terms to customers. The empirical results using a large global sample of 193,625 firm-year observations from 45 countries support our hypotheses. In terms of economic significance, on average, the cash conversion cycle of firms in weak future-time reference countries is ∼ 11% longer than that of firms in strong future-time reference countries. We also find that the effect of language is dominant over the influence of traditional cultural dimensions. Together, the results suggest that time encoding in the language of a firm is a determining factor in its supply chain operations.

Anthony Orlando

• Orlando, Anthony W., Redfearn, Christian L.(2024), Houston, you have a problem: How large cities accommodate more housing. Real Estate Economics. https://doi.org/10.1111/1540-6229.12490

Abstract

We document how a select set of large and growing metropolitan areas have accommodated growth in their housing supply over 40 years. In particular, we examine how housing provision has evolved for the largest four metropolitan statistical areas (MSAs) in California and Texas. Despite differences in their topographies and regulatory environments, we find several common dynamics. As these MSAs grow, we see that fewer new net units are built at the periphery and a smaller share of the new units are built as single-family detached houses. As a greater share of new net units are built in infill locations, more units are built using higher-density—and more costly—multifamily housing construction techniques. Interestingly, we see these housing supply patterns in both “pro-growth” MSAs and “highly regulated” MSAs. Among all of our sample MSAs, we also find a declining share of Census tracts that participate in accommodating growth. Our results are consistent with the existence of a convex housing supply curve. We believe that this secular trend will pose genuine challenges to many urban housing policies aimed at improving affordability.

Nastaran Simarasl

• Simarasl, N., Tabesh, P., & Jessri, M. Navigating hardships: Resilience-building coping strategies and actionable techniques for entrepreneurs. Business Horizons. https://doi.org/10.1016/j.bushor.2024.07.001

Abstract

Hardships are an inevitable part of entrepreneurial experiences. Successful entrepreneurs identify hardships early on and craft effective strategies to overcome them. While previous work in practitioner-oriented and academic outlets has emphasized the significance of resilience in overcoming hardships, entrepreneurs have been left with minimal guidance on cultivating coping strategies that build resilience in response to different types of hardships. In this work, we first provide a typology of hardships that entrepreneurs face. Then, by grounding our work in the resilience literature, we offer a typology of coping strategies. Finally, we offer a list of actionable recommendations by introducing a toolbox of coping techniques entrepreneurs can use to effectively manage different hardships. Our work contributes to a more nuanced understanding of hardships in entrepreneurship research and offers practical guidance on how entrepreneurs can build resilience.

• Simarasl, N., Tabesh, P., & Lee, Y. (2024). The paradox of resource access: influence on location decision comprehensiveness and new venture performance. New England Journal of Entrepreneurship, 27(1), 18-39. https://doi.org/10.1108/NEJE-07-2022-0049

Abstract

This research aims to theorize how a critical factor, resource access, can paradoxically impact the comprehensiveness of venture location decision processes and the relationship between decision comprehensiveness and new venture performance. To do so, the authors focus on nascent entrepreneurs’ venture location decision processes and introduce resource access as a double-edged sword. In this conceptual article, the authors draw from the strategic decision-making and resource mobilization literature to theorize about the new venture location decision-making process and its performance implications. By uncovering the paradox of resource access, the authors propose that high levels of resource access create a paradoxical situation in which nascent entrepreneurs are less likely to use comprehensive decision processes when their benefits are at their greatest. This work contributes to entrepreneurship research on new venture location and resource mobilization in three important ways. First, the authors advance the literature on nascent entrepreneurs’ location decision-making processes by introducing “location decision comprehensiveness” as a decision process construct and juxtaposing it with resource access to uncover the entrepreneurial decision-making process. Second, the authors develop a more nuanced theorization of the location choices made by nascent entrepreneurs instead of relying on generalized conclusions drawn from well-established corporations’ location decisions. Last, the authors extend the literature on resource mobilization in entrepreneurship by shedding light on the paradoxical aspect of resource access. While previous research has emphasized the favorable effects of resource access on new venture processes and outcomes, the authors contend that it can also negatively impact entrepreneurs’ ability to make effective decisions.

Randy Stein

• Stein, R, Meyersohn Caroline E., Whose Pants Are on Fire? Journalists Correcting False Claims are Distrusted More Than Journalists Confirming Claims. Sage Journals https://journals.sagepub.com/doi/10.1177/00936502241262377

Abstract

Do people trust journalists who provide fact-checks? Building upon research on negativity bias, two studies support the hypothesis that people generally trust journalists when they confirm claims as true, but are relatively distrusting of journalists when they correct false claims. In Study 1, participants read a real fact-check that corrected or confirmed a claim about politics or economics. In Study 2, participants read a real report that corrected or confirmed a marketing claim for one of several products. Participants in both studies had higher levels of distrust for journalists providing corrections, perceiving them as more likely to be lying and possessing ulterior motives. This effect held even among corrections consistent with respondents’ prior beliefs (i.e., for claims that participants thought might be false). The results represent a novel reason why people distrust journalists and resist belief correction. We discuss implications for transparency in journalism, and for how journalists frame fact-checks.

Alireza Yazdani

• Yazdani, A., Çil, E. B., & Pangburn, M. (2023). Retail sample boxes: Counteracting the adverse effect of accelerated learning via future credit. Manufacturing & Service Operations Management, 25(5),1643-1659. https://doi.org/10.1287/msom.2023.1206

Abstract

Consumers often try a few varieties of an experience product before establishing a shopping routine. In retailing, a sample box typically refers to a package of multiple trial-sized varieties within a product category. Sample boxes potentially create value by helping consumers resolve their uncertainties regarding these varieties earlier and at a lower cost. In this paper, we study how firms and consumers share this added value under different market scenarios. We also derive the optimal pricing of sample boxes in product categories for which consumers make ongoing purchases over time. We thus extend the literature by proposing a framework that integrates sequential search and seller-induced learning. We analyze a firm’s pricing decisions when consumers either purchase full-sized options sequentially or bypass that process via a sample box. We use dynamic programming to analyze consumers’ search problem (in the absence of a sample box) and nonlinear optimization to analyze the firm’s problem. As anticipated, the informational value of a sample box yields an optimal price premium relative to the prices of individual products. Despite this price premium, we show that the firm’s expected profit may decrease because a sample box accelerates consumer learning, and thus, it may help consumers settle upon an outside option earlier. We establish that a firm can reverse the potential adverse profit impact of selling sample boxes by introducing an optimally specified future credit. Offering sample boxes is a common practice in retailing. Contrasting the resulting expected profits with and without the sample box option, our results highlight that managers may be ill-advised to offer a sample box in the absence of the future credit mechanism. This study is the first to address the pricing of sample boxes and show the optimality of offering credit toward a subsequent purchase.

• Jalili, M., Pangburn, M. S., & Yazdani, A. (2024). EXPRESS: Trend-Chasing versus Minimalism: Selling Fewer, Better Products to Fashion-Sensitive Customers. Production and Operations Management.https://doi.org/10.1177/10591478241234996

Abstract

Fashion sellers are sometimes critiqued for selling low durability products, resulting in waste. Blame is also directed at consumers, who purchase new fashions despite having accumulated a closet full of prior fashions. The “slow fashion” movement encourages sellers to produce higher durable products, thus supporting less frequent purchases by consumers. Using an infinite-time model and considering strategic consumer behavior, including their ability to accumulate a “closet” of varieties over time, we analyze the seller’s profit-maximizing price and product-durability decisions. We initially assume a static price but later analyze the potential profit gains from dynamic pricing. When analyzing a heterogeneous consumer market, we initially allow customers to vary (distributed uniformly) in their sensitivity to fashion. Subsequently, we explore alternative distributions for consumers’ fashion sensitivity and the correlation between their fashion sensitivities and product valuations. Using this framework, we show how the seller’s optimal price and durability decisions yield distinct shopping segments, which we refer to as the minimalist versus trend-chasers. We find that if the degree of fashion uncertainty is moderate, the seller’s optimal choice of product durability will support the emergence of both behaviors. As the variety uncertainty expands, if the seller’s costs are sufficiently low, it will support a throwaway culture via disposable products. Otherwise, given high costs, the seller optimally targets a slow fashion-type outcome, with consumers targeting reuse (with durability) rather than variety. Our findings shed light on consumers’ optimal purchasing behaviors in relation to both market parameters and the firm’s pricing and durability decisions.