Recent Submissions

  • The case for purpose: Demystifying the field

    Dewettinck, Koen; Defever, Emmy (2020)
    Organisations today are dealing with rapid changes and complex challenges. To survive and excel in a volatile business context, it has been argued that organisations need to adopt a more purpose-driven approach in doing business that transcends making money. In the past decade, an increasing interest has emerged in the topic of purpose by both academics and practitioners. Many business books and articles have been published to help companies on their way to become purpose-driven organisations. The notion of purpose has become so widespread that a lot of companies invested in articulating a purpose in order to engage stakeholders. Creating and establishing a strong and shared corporate purpose, however, can be a complex process. In this whitepaper, we aim to provide a clear understanding of what purpose is and why it matters. Based on the research available, we will reflect on how a strong and shared purpose can be established by organisations.
  • Nonlinear financial econometrics JoE special issue introduction

    Rombouts, Jeroen; Scaillet, Olivier; Veredas, David; Zakoian, Jean-Michel (Journal of Econometrics, 2020)
    This special issue is based upon the conference in honour of Professor Luc Bauwens, held in Brussels on October 2017. The conference was sponsored by UCLouvain and the theme was nonlinear financial econometrics. The generality of the theme reflects precisely the broad research scope of Luc Bauwens. During his career, he has contributed to various areas of time series econometrics, always with applications in economics and finance in mind, and, although being a Bayesian econometrician, he developed both Bayesian and frequentist inference.
  • Opening the gates: A framework for an open banking strategy

    Standaert, Willem; Muylle, Steve; Cumps, Bjorn (Journal of Digital Banking, 2020)
    This paper provides decision makers in digital banking with a framework for developing their open banking strategies. Based on interviews with experts from leading banks and insurers, FinTech and big tech, a large consultancy and the regulator, we have identified five strategic dimensions of open banking — product innovation, customer experience integration, ecosystem competition, datascape and geographical scope — and mapped the relationships between them. Decision makers in financial services can assess their position on these important dimensions of open banking and set their strategic direction. Using the framework, we also illustrate how hitherto relatively closed banks with a dominant market position are starting to transform into open ecosystem players that embrace digital innovation. Likewise, we show how open banking initiatives of big tech and FinTech can be mapped on the framework. In addition, the paper reviews how regulation, market and digital technology impact open banking strategy.
  • From crisis to enlivenment: An AOM president responds to EO13769

    Pirson, Michael; Adler, Paul; Barney, Jay; Bartunek, Jean; Patient, David; Phillips, Nelson; Pitelis, Christos (Journal of Management Inquiry, 2019)
    In assembly of short responses, noted scholars—including former presidents of the Academy of Management (AOM)—share their perspectives on the events related to AOM leadership following EO13769. The pieces are reflections on the micro-level aspects of leadership and the ethical and moral choices therein.
  • Antecedents and consequences of collective psychological ownership: The validation of a conceptual model

    Giordano, Ana Paula; Patient, David; Passos, Ana Margarida; Sguera, Francesco (Journal of Organizational Behavior, 2020)
    We investigate team member feelings of collective psychological ownership (CPO) over teamwork products, the psychological paths that lead to it, and its impact on team workers' evaluations of team effectiveness, turnover intentions, and intentions to champion teamwork products. We focus on the teamwork product as an important target of ownership feelings, building on theories of self‐extension, psychological ownership, and team emergent states. In Study 1, we validate measures for three ownership activating experiences (OAE) that have been proposed as paths to CPO (control over, intimate knowledge regarding, and investment in the teamwork product) using two samples of individual team workers (n = 210 and n = 140). In Study 2 (n = 183) and Study 3 (n = 200), we use surveys and a multiwave design to show that team workers' feelings of CPO mediate the relationship between investment in and intimate knowledge regarding the product and team effectiveness evaluations, team turnover intentions, and intentions to champion the work product. In Study 4 (n = 48 teams), CPO was predicted by the ownership activating experiences, at the team level. This research additionally highlights the benefits to organizations of creating conditions for the emergence of employee feelings of shared ownership over teamwork products.
  • Investigating the co-creation of IT consulting service value: Empirical findings of a matched pair analysis

    Oesterle, Severin; Buchwald, Arne; Urbach, Nils (Electronic Markets, 2020)
    Digitalization is increasingly and broadly impacting on companies throughout all industries. To cope with digital transformation, organizations need specific IT skills and often face a bottleneck between required and existing capabilities. Thus, organizations revert to support from IT consultants. However, such collaborations need to create value so as to make client organizations future-proof in the long term. We therefore need a better understanding of how value is created in IT consulting projects. We build on service-dominant (S-D) logic as the theory base and evaluate our structural model, which explains IT consulting service value based on 77 matched pairs of IT consulting projects using structural equation modeling. We provide empirical support for the assumptions of S-D logic in the IT consulting industry and reveal determinants that significantly contribute to the overall IT consulting service value. Our results contribute to the ongoing discourse in the S-D logic literature and provide meaningful insights for practice.
  • Demographic and attitudinal antecedents of consumers' use and self-investment trajectories over time in an online TV content platform

    Van der Linden, Sam; Nimmegeers, Stef; Geskens, Kristof; Weijters, Bert (Journal of Service Management, 2020)
    Purpose To investigate if online TV content platforms create value for consumers (and increase use) by offering its users the possibility to self-invest in the service (by giving personal content preferences). We link demographic and attitudinal antecedents to the relation between self-investment and use. Design/methodology/approach Data were collected together with a Belgian media company (N = 4,136). To test the effects a latent growth model was composed in a multigroup setting with gender as the grouping variable. The model is analyzed through structural equation modeling in Mplus 8.0. Findings In general, strong relations between self-investment and increased use were found, although the effect of self-investment on use was stronger for female consumers. Furthermore, we established strong hedonic effects on using and investing in the service. For men, easy to use platforms lead to less self-investment. Research limitations/implications Our findings are restricted to free services. Furthermore, attitudinal variables are antecedents of behaviors. However, a more complex interplay between behavioral and attitudinal variables is possible. Further research could use repeatedly measured attitudinal measures and link these to behaviors over time. Practical implications Service developers could offer different platform interactions to different segments to create consumer value. Women seem more receptive for extra functionalities, such as the possibility to indicate preferences. Men mainly focus on the content offered. Originality/value This study focuses on a new form of media distribution, online TV content platforms, where we investigate two related behaviors of users over time (self-investment and use) instead of a general approximation of use. Multi-source data were used.
  • A leading macroeconomic indicators' based framework to automatically generate tactical sales forecasts

    Verstraete, Gylian; Aghezzaf, El-Houssaine; Desmet, Bram (Computers and Industrial Engineering, 2020)
    Tactical sales forecasting is fundamental to production, transportation and personnel decisions at all levels of a supply chain. Traditional forecasting methods extrapolate historical sales information to predict future sales. As a result, these methods are not capable of anticipating macroeconomic changes in the business environment that often have a significant impact on the demand. To account for these macroeconomic changes, companies adjust either their statistical forecast manually or rely on an expert forecast. However, both approaches are notoriously biased and expensive. This paper investigates the use of leading macroeconomic indicators in the tactical sales forecasting process. A forecasting framework is established that automatically selects the relevant variables and predicts future sales. Next, the seasonal component is predicted by the seasonal naive method and the long-term trend using a LASSO regression method with macroeconomic indicators, while keeping the size of the indicator’s set as small as possible. Finally, the accuracy of the proposed framework is evaluated by quantifying the impact of each individual component. The carried out analysis has shown that the proposed framework achieves a reduction of 54.5% in mean absolute percentage error when compared to the naive forecasting method. Moreover, compared to the best performing conventional methods, a reduction of 25.6% is achieved in the tactical time window over three different real-life case studies from different geographical areas.
  • The tetralemma of the business family: A systemic approach to business-family dilemmas in research and practice

    Kleve, Heiko; Roth, Steffen; Kollner, Tobias; Wetzel, Ralf (Journal of Organizational Change Management, 2020)
    Purpose This conceptual article aims to contribute to the design of a theory of family-influenced firms by a framework for the management of business-family dilemmas. Design/methodology/approach It combines systemic principles with the tetralemma, a tool from ancient Indian logic that families and businesses can use to manage and reframe dilemmas without dissolving the dilemmatic tensions or blurring their boundaries. Findings In applying the tetralemma, the article offers a range of suggestions, such as observing business and family as two discrete, yet codependent, social systems and envisioning conceptual and methodological imports from codependency research and therapy into family business research and practice. Originality/value The article proposes a framework for the selective and flexible navigation of family-business tensions without dissolving them or blurring their boundaries.
  • Flexibility markets: Q&A with project pioneers

    Schittekatte, Tim; Meeus, Leonardo (Utilities Policy, 2020)
    Flexibility markets are a promising tool to make better use of existing distribution grids. We analyse four pioneering projects implementing flexibility markets: Piclo Flex, Enera, GOPACS, and NODES. Based on a literature review, we develop a six-question framework. We find that all of the considered flexibility markets are operated by a third party. All projects also engage with multiple DSOs to become the standardized platform provider. Differences among the projects are found in the extent to which the flexibility markets are integrated into other existing markets, the use of reservation payments, the use of standardized products, and the way TSO-DSO cooperation is done. The answers to these questions vary for the projects because of different visions, use cases, or project maturity. Our case study analysis of four pioneering projects enriches the taxonomy and shows that practice is moving faster than the conceptual debate around flexibility markets.
  • The impact of superstar firms on the labor share: Evidence from Belgium

    Abraham, Filip; Bormans, Yannick (De Economist - Netherlands Economic Review, 2020)
    The Belgian labor share, measured as the part of GDP going to labor, is declining. This fits into the global secular trend of decreasing labor shares. A novel strand in the literature focusses on its granular drivers. Recent research in the United States suggests that superstar firms, defined as large firms with a dominant market share, are increasing their market share and relate this to the fall of the labor share (Autor et al. in Q J Econ 135(2):645-709, 2020). Using a long time series of Belgian firm-level data from 1985 to 2014, we provide evidence for the link between the rise of market concentration and the decrease of the labor share in its two largest sectors: Manufacturing and Wholesale & Retail. These two sectors represent approximately half of the Belgian economy. We do not find evidence in other Belgian sectors.
  • The impact of a limited budget on the corrective action taking process

    Song, Jie; Martens, Annelies; Vanhoucke, Mario (European Journal of Operational Research, 2020)
    The main goal of project control is to identify the deviations between the baseline schedule and the actual progress of the project by measuring the project performance in progress and using the project control methodologies to generate warning signals that act as triggers for corrective actions to bring the project back on track. To that purpose, tolerance limits are set on the required project performance, such that if the warning signals exceed these limits, they should result in appropriate corrective actions. In this paper, the Earned Value Management (EVM) control method and its extensions are used to test their abilities in taking corrective actions under a budget constraint. More precisely, four different approaches are proposed for allocating the limited budget along the different project phases, and whether a proper allocation of the budget results in an increase of the expected project outcome is measured. A large computational experiment is conducted on a set of artificial projects to assess the efficiency and effectiveness of the budget allocation models. Results show that simply allocating budget according to the time accrue of projects performs better than methods that take cost, time/cost or risk information into account. Moreover, results indicate that allocating a budget that increases in later stages of the project is beneficial for the outcome.
  • Integrating corrective actions in project time forecasting using exponential smoothing

    Martens, Annelies; Vanhoucke, Mario (Journal of Management in Engineering, 2020)
    Earned value management (EVM) and earned duration management (EDM) are established methodologies to monitor the project performance during execution. These methods serve as a basis to forecast the final project duration and/or project cost. The aim of this paper is to improve the accuracy of project time forecasting by extending exponential smoothing for project time forecasting using EVM and EDM with the integration of corrective actions that are taken during project progress. In order to evaluate the forecasting accuracy of this approach, eight projects conducted in recent years have been followed up in real time. Based on the nature of the observed corrective actions, six distinct categories of corrective actions are identified. The empirical experiment showed that explicitly integrating the occurrence of corrective actions into the forecasting process improves the forecasting accuracy of traditional forecasting methods and forecasting methods using standard exponential smoothing, especially for the middle and late phases of projects. Consequently, by including corrective actions in the forecasting process, project managers can predict the final project duration more accurately.
  • Weber and legal rule evolution: The closing of the iron cage?

    Jennings, Devereaux; Schultz, Martin; Patient, David; Gravel, Caroline; Yuan, Ke (Organization Studies, 2005)
    Institutionalists have emphasized the importance of law for the spread of bureaucracy and examined its effects; but they have not examined the evolution of law as an institution in its own right, particularly from a Weberian standpoint. In this paper, we investigate whether or not there is an inexorable proliferation and refinement of rational legal rules within a law, as we have found to be the case with bureaucratic rules. In other words, are the same tendencies toward proliferation and refinement associated with the ‘closing of the iron cage’ found in the context of legal rules? An examination of all sections of a regional water law over a 90-year period shows that the number of law sections and the text covered by the sections actually declines over time, through alternating phases of gradual expansion followed by rapid collapse; that is via punctuated equilibrium. Most of the expansion is due to revisions of existing sections, rather than to births of new sections. Poisson models of births and event history models of revisions show that the sources of the proliferation within the law are, in fact, some of the same ones anticipated by Weber: the interpretation of the law by the courts, changes in political parties, and shock events such as war. But, in contrast to Weberian predictions, the result of this evolutionary process appears to be a law that is smaller, tighter and more functionally differentiated.
  • It is time for justice: How time changes what weknow about justice judgments and justice effects

    Fortin, Marion; Conjuharenco, Irina; Patient, David; German, Hayley (Journal of Organizational Behavior, 2016)
    Organizational justice is an important determinant of workplace attitudes, decisions, and behaviors. However,understanding workplace fairness requires not only examining what happens but also when it happens, interms of justice events, perceptions, and reactions. We organize and discussfindings from 194 justice articleswith temporal aspects, selected from over a thousand empirical justice articles. By examining temporalaspects, ourfindings enrich and sometimes challenge the answers to three key questions in the organizationaljustice literature relating to (i) when individuals pay attention to fairness, including specific facets, (ii) howfairness judgments form and evolve, and (iii) how reactions to perceived (in)justice unfold. Our review iden-tifies promising avenues for empirical work and emphasizes the importance of developing temporal theoriesof justice.
  • Increasing interpersonal and informational justice when communicating negative news: The role of the manager's empathic concern and moral development

    Patient, David; Skarlicki, Daniel (Journal of Management, 2010)
    The authors report two studies exploring the role of a manager's empathy in delivering negative news more fairly. In Study 1, 132 practicing managers completed a scenario task in which a layoff was to be communicated. Trait empathic concern predicted interpersonal and informational justice of written messages. In Study 2, 81 students provided face-to-face feedback to a confederate, which was videotaped. An empathic induction resulted in higher levels of interpersonal and informational justice relative to a control group. Furthermore, the empathic induction had a greater effect on interpersonal and informational justice for communicators who were high (versus low) in moral development.
  • Bringing together different perspectives on ethical leadership

    Grover, Steven; Nadisic, Thierry; Patient, David (Journal of Change Management, 2012)
    Recent corporate scandals, including the mortgage situation precipitating the global financial crisis in 2008, have led many people to question the role of un/ethical leadership in corporate misbehaviour. Organizational scholars contribute to our understanding of ethical leadership by investigating and theorizing within ethical leadership in corporate misbehaviour. Organizational scholars contribute to our understanding of ethical leadership by investigating and theorizing within the organizational justice, trust, business ethics and leadership literatures. Unfortunately, work relating to ethical leadership from these different subfields has rarely been brought together, despite common themes and concerns. As a result, the accumulated insights have been described as ‘underdeveloped and fragmented’ (Brown and Trevin˜o, 2006), leading some researchers to call for better integration of these literatures (van Knippenberg et al., 2007; De Cremer, Mayer and Schminke, 2010; Rupp et al., 2010).
  • Toward a theory of intraorganizational attention based on desirability and feasibility factors

    Barreto, Ilídio; Patient, David (Strategic Management Journal, 2013)
    Why would managers in the same firm differ in their attention to opportunity versus threat aspects of the same exogenous shock? Drawing on the attention‐based view, strategic issue diagnosis theory, and construal level theory, we propose and test a theoretical model of differentiated attention among managers within a firm driven by desirability (shock distance) and feasibility (capability perception) considerations. Managers more distant from the locus of the shock and managers with stronger ex ante perceptions regarding organizational capabilities to address the shock paid more attention to opportunity aspects and less attention to threat aspects. We also found subordination effects between shock distance and capability perception, and a moderating role of domain‐specific experience on the effects of capability perception.
  • Workplace fairness versus unfairness: Examining the differential salience of facets of organizational justice

    Cojuharenco, Irina; Patient, David (Journal of Organizational and Occupational Psychology, 2013)
    In three studies, we show that employees bring to mind different facets of justice when focusing on workplace fairness versus unfairness. In Study 1, descriptions of recalled fair versus recalled unfair events are shown to be less multifaceted, more likely to include distributive justice, and less likely to include interactional justice. In Study 2, when asked to assess event fairness versus unfairness, participants posed fewer questions relating to interactional justice in relation to fair events. In Study 3, the results of a scenario experiment show that the relationship between unfairness/fairness and the salience of justice facets is mediated by the construal of work in more abstract terms in relation to fairness. We discuss the implications of our findings for organizational justice research and for organizations managing employee perceptions of fairness.
  • Seeing the forest or the trees of organizational justice: Effects of temporal perspective on employee concerns about unfair treatment at work

    Cojuharenco, Irina; Patient, David; Bashshur, Michael (Organizational Behavior and Human Decision Processes, 2011)
    What events do employees recall or anticipate when they think of past or future unfair treatment at work? We propose that an employee’s temporal perspective can change the salience of different types of injustice through its effect on cognitions about employment. Study 1 used a survey in which employee temporal focus was measured as an individual difference. Whereas greater levels of future focus related positively to concerns about distributive injustice, greater levels of present focus related positively to concerns about interactional injustice. In Study 2, an experimental design focused employee attention on timeframes that differed in temporal orientation and temporal distance. Whereas distributive injustice was more salient when future (versus past) orientation was induced, interactional injustice was more salient when past orientation was induced and at less temporal distance. Study 3 showed that the mechanism underlying the effect of employee temporal perspective is abstract versus concrete cognitions about employment.

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