new evidence in the pursuit of locating new businesses abstract finding good generalizable samples has long been an achilles heel for those interested in entrepreneurship related phenomena practitioners policy makers and researchers frequently desire to take the pulse of entrepreneurial activity but struggle in doing so for example friedman 1995 reported that california overestimated job loss by 2 4 times because of failure to account for newer more robust firms with the goal of being able to better identify new businesses this research addresses the following questions 1 which sample sources best identify new businesses 2 are the characteristics of a sample drawn from one source similar to those drawn from a different source 3 how accurate are the different sample sources in the information they report and 4 how practical and cost effective are the different sample sources we pursued answers to these questions by examining the state sales tax file and comparing it with the previously examined sources of the state unemployment insurance file es202 and dun bradstreet s dun s market indicator file dmi birley 1984 aldrich et al 1989 the phonebook was also used to examine its overlap with the three primary sources in making these comparisons we evaluate generalizability issues accuracy of founding date cost practicality and other auxiliary information sales tax file our findings suggest that the sales tax file is a rich source for identifying generalizable samples the accuracy of the founding data was correct over 70 of the time and it appears to identify businesses very early in the start up phase the data also are available in machine readable format give some helpful auxiliary information and the cost of obtaining the file was negligible another advantage of the sales tax file is its ability to identify new businesses that do not have visible on street locations thus the sales tax file appears to be a very credible source for identifying firms early in the start up process es202 file dmi file and phone book our study affirms earlier studies that found major limitations with both the es202 and dmi files more specifically this study found that both sources have substantial limitations in identifying new start up firms and they both appear to be slow in removing firms from their records once they have moved or gone out of business as for the phonebook as it is only issued annually it takes some time for new businesses to be listed in the directory furthermore because so many of the new businesses identified by the sales tax file initially operate out of the entrepreneur s home 58 in our survey sample the enumeration phonebook method would miss many new businesses unless they had a business phone listing and a business sign on their residential property thus we do not consider the enumeration phonebook method to be very practical nor the best method for identifying new firms in sum these findings give renewed hope in locating generalizable samples of new businesses although the sales tax file is not a perfect source it represents a very attractive alternative for those interested in identifying entrepreneurial firms early in the start up phase these findings should assist practitioners policy makers and researchers in making better sample selections which should lead to more accurate indicators of new business start ups fewer sample biases and ultimately to a better understanding of the determinants of new venture failure and success

towards an attention based view of the firm the central argument is that firm behavior is the result of how firms channel and distribute the attention of their decision makers what decision makers do depends on what issues and answers they focus their attention on what issues and answers they focus on depends on the specific situation and on how the firm s rules resources and relationships distribute various issues answers and decision makers into specific communications and procedures the paper develops these theoretical principles into a model of firm behavior and presents its implications for explaining firm behavior and adaptation 1997 by john wiley sons ltd

a meta analytic reassessment of the effects of inequality on growth this paper develops a meta analysis of the empirical literature that estimates the effect of inequality on growth it covers studies published in scientific journals during 1994 2014 that examine the impact on growth of inequality in income land and human capital distribution we find traces of publication bias in this literature as authors and journals are more willing to report and publish statistically significant findings and the results tend to follow a predictable time pattern over time according to which negative and positive effects are cyclically reported after correcting for these two forms of publication bias we conclude that the high degree of heterogeneity of the reported effect sizes is explained by study conditions namely the structure of the data the type of countries included in the sample the inclusion of regional dummies the concept of inequality and the definition of income in particular our meta regression analysis suggests that cross section studies systematically report a stronger negative impact than panel data studies the effect of inequality on growth is negative and more pronounced in less developed countries than in rich countries the inclusion of regional dummies in the growth regression of the primary studies considerably weakens such effect expenditure and gross income inequality tend to lead to different estimates of the effect size land and human inequality are more pernicious to subsequent growth than income inequality is we also find that the estimation technique the quality of data on income distribution and the specification of the growth regression do not significantly influence the estimation of the effect sizes these results provide new insights into the nature of the inequality growth relationship and offer important guidelines for policy makers

ceo characteristics and firm r d spending over the past fifteen years a number of studies have examined the determinants of firm r d spending these studies however almost invariably focus on the role of firm or external ownership characteristics in predicting r d spending while overlooking the attributes of the top managers involved in allocating corporate resources in this study we change that focus by empirically examining how r d spending as compared to industry competitors varies at firms based on the characteristics of their ceos using a sample of publicly traded firms we find that ceo characteristics explain a significant proportion of the sample variance in firm r d spending even when corporate strategy ownership structure and other firm level attributes are controlled in terms of individual ceo characteristics we find that r d spending is greater at firms where ceos are younger have greater wealth invested in firm stock and signifacant career experience in marketing and or engineering r d in contrast to existing theory we find that the amount of a ceo s formal education had no significant association with r d spending once a ceo has attained a college degree however significant r d spending increases are found at firms where ceos have advanced science related degrees from subgroup analyses we further find that ceo effects on relative r d spending increase with longer ceo tenure implying that ceos over time may mold r d spending to suit their own preferences from these results we make implications for both research on determinants of r d spending and managerial practice

explaining the attacker s advantage technological paradigms organizational dynamics and the value network abstract understanding when entrants might have an advantage over an industry s incumbent firms in developing and adopting new technologies is a question which several scholars have explained in terms of technological capabilities or organizational dynamics this paper proposes that the value network the context within which a firm competes and solves customers problems is an important factor affecting whether incumbent or entrant firms will most successfully innovate in a study of technology development in the disk drive industry the authors found that incumbents led the industry in developing and adopting new technologies of every sort identified by earlier scholars at component and architectural levels competency enhancing and competency destroying incremental and radical as long as the technology addressed customers needs within the value network in which the incumbents competed entrants led in developing and adopting technologies which addressed user needs in different emerging value networks it is in these innovations which disrupted established trajectories of technological progress in established markets that attackers proved to have an advantage the rate of improvement in product performance which technologists provide may exceed the rate of improvement demanded in established markets this mismatch between trajectories enables firms entering emerging value networks subsequently to attack the industry s established markets as well

the founder s self assessed competence and venture performance abstract a large body of recent research seeks to understand organizational founding and the performance of emerging businesses although much of this research has focused on the characteristics of the business founder there is only mixed support for relationships between founders characteristics and venture performance begley and boyd 1987 gartner 1988 low and macmillan 1988 sexton and bowman 1984 this study is based on research that identifies the entrepreneurial managerial and technical functional functions as three roles that founders must competently enact in order to be successful hofer and sandberg 1987 mintzberg and waters 1982 pavett and lau 1983 schein 1987 effective performance in the entrepreneurial role requires the founder to have the ability to recognize business opportunities and the drive to see firm creation through to fruition hofer and sandberg 1987 timmons et al 1987 effective execution of the managerial role requires conceptual interpersonal and political competence pavett and lau 1983 to be competent in the technical functional role founders must be able to use the tools or procedures required in their specialized field pavett and lau 1983 to measure the competencies necessary for effectiveness in the entrepreneurial managerial and technical functional roles we developed a questionnaire to allow founders to provide self evaluations of their competencies the results provide strong evidence for the reliability of measurement and the validity of the constructs the relationships revealed in this study suggest some preliminary recommendations for potential entrepreneurs career counselors and educators the number of businesses previously initiated and the years spent as an owner manager do not appear to be strongly related to the performance of the venture however the most successful entrepreneurs are strongly convinced of their ability to recognize business opportunity they believe that they have the drive to see the venture through to fruition and report that they subjugate outside interests to the demands of their businesses thus although self assessed proficiency in the entrepreneurial function does not appear to be contingent on the length of previous experience as a founder it does appear to be a necessary component in the development of high performance companies founders of the most successful firms also gave themselves high ratings on the abilities associated with effective performance in the managerial role they had high self evaluation scores on the items measuring organizational and interpersonal skills competence in the managerial role appears to be enhanced by business education and the years of general managerial experience the founders of highly successful firms also evaluated their technical skills highly they believed they were experts in their fields and could use the specialized tools and procedures to produce high quality products and services thus the results indicate that the most successful founders those whose firms show higher levels of growth and earnings rate themselves as competent in the entrepreneurial managerial and technical functional roles they see themselves as competent generalists and in a result that is most gratifying for those in higher education it appears that a business education and experience in general managerial positions lays the ground work for a successful entrepreneurial career

labor flexibility and innovation in new ventures the study investigates how labor flexibility affects innovation in new ventures more specifically drawing upon a sample of 143 greek ventures less than 8 years old it examines empirically the individual and interactive effects of functional and numerical flexibility on product innovation it also considers how these effects are moderated by the entrepreneur s political skill results suggest that functional flexibility has a positive direct effect on incremental innovation whereas numerical flexibility has a positive direct effect on radical innovation the interactions between numerical and functional flexibility affect both types of innovation the results also suggest that the labor flexibility innovation relationship is positively moderated by the entrepreneur s political skill these findings point toward aspects of knowledge related with flexible labor engagement and entrepreneurial relational capital that affect innovation

timing and real indeterminacy in monetary models an increasingly common approach to the theoretical analysis of monetary policy is to ensure that a proposed policy does not introduce real indeterminacy and thus sunspot fluctuations into the model economy policy is typically conducted in terms of directives for the nominal interest rate this paper uses a discrete time money in the utility function model to demonstrate how seemingly minor modifications in the trading environment result in dramatic differences in the policy restrictions needed to ensure real determinacy these differences arise because of the differing pricing equations for the nominal interest rate

adaptation bridging and firm upgrading how non market institutions and mncs facilitate knowledge recombination in emerging markets how do multinational corporation mnc subsidiaries and local institutions help or hinder emerging market suppliers to upgrade their capabilities drawing on insights from economic sociology and comparative capitalism we posit that in these contexts of scarce resources and inferior technologies upgrading depends on the ways in which organizational and institutional networks enable firms to integrate imported advanced knowledge with local applied knowledge using a combination of field work and unique survey data of argentine auto parts suppliers we show that process upgrading improves significantly when suppliers have ties to seemingly resource weak non market institutions that improve access to a variety of experiential knowledge these institutions act as knowledge bridges helping local firms tap into diverse applied knowledge embedded in isolated industrial districts and adapt frontier advanced practices to their local conditions moreover suppliers appear to benefit from ties to mnc subsidiaries only when they simultaneously collaborate with certain non market institutions that help them recombine experiential knowledge with the standards gained from the subsidiaries

top managerial prestige and organizational bankruptcy this paper extends earlier work on an alternative view of bankruptcy suggesting that bankruptcy occurs when creditors withdraw then support from a firm s top management team it further proposes that support for the top team depends upon the team s prestige five characteristics measuring the relative status of top teams were tested for their association with bankruptcy three of the characteristics focused on items commonly associated with membership in economic elites elite educational backgrounds board memberships and previous employment as officers in other corporations the fourth and fifth characteristics focused on membership in political and military elites the results indicated that political and board connections were negatively associated with bankruptcy in the year of failure even when financial factors and cooptive board linkages were controlled the results also showed that failing firms attempted to improve their managerial prestige three to four years before they failed they were how

supply side effects of monetary policy and equilibrium multiplicity abstract empirical evidence indicates that changes in the nominal interest rate significantly affect lending costs of firms introducing working capital into an otherwise conventional new keynesian model active interest rate policy remains necessary but should be moderate to ensure real determinacy the likelihood for the latter can approach zero when utility is linear in leisure

businesses without glamour an analysis of resources on performance by size and age in small service and retail firms abstract research on factors influencing performance in new and small companies is extensive earlier work found that strategies e g cost quality differentiation etc affected performance contingent on industry conditions the environment and the entrepreneur s background although this work provides a solid basis for understanding differences in entrepreneurial performance some firms are limited in their choices of strategy due to size age or industry often these firms are in industries where entry barriers are low and competitive advantages are easily imitated small service and retail businesses operate in sectors where these conditions are apparent comprising more than 50 of all small firms they require minimal start up investments but face intense competition lacking the glamour of high innovation high growth firms service and retail companies are at the end of the value chain their fortunes rising and falling as a result of the direct influence of the owner founder hence performance variation may be better explained by the capabilities of the firm or individual competencies of the owner founder that is the resource base and resource combinations rather than strategy the strategic importance of an organization s resources and capabilities is the foundation of resource based theory resources are tangible and intangible assets tied to the firm in a relatively permanent fashion their combinations are heterogeneous and form the basis for product market strategies studies of resources strategies and performance are emerging in the entrepreneurial area research shows that various resources in concert with different strategy types can lead to above average performance over the business life cycle and that combinations of resources are related to survival yet the vast majority of work focuses on high growth high tech or manufacturing businesses less is known about the relationships of resources to performance in less glamorous sectors in these small service and retail businesses we speculate that resources in particular human and organizational resources may play a greater role in explaining performance than strategy further as other authors have suggested it is expected that the combinations of these resources will vary across age and size this study examines the influence of human and organizational resources on performance in a sample of 195 service and retail firms operating in central new jersey using a structured questionnaire all companies utilized a focus strategy either focused cost or focused differentiation and employed a minimum of 3 to a maximum of 100 employees all measures had theoretical and or empirical precedent and were tested statistically for reliability we used factor analysis to reduce the independent variables to two human resource variables owner resources and commitment one organizational resource variable comprised of planning systems and staff skills and one strategy variable focused cost and focused differentiation control variables were business age business size environmental benignness and industry growth the dependent variable performance was measured in two ways net cash flow and log of growth in employees over 3 years the study first examined whether strategy or resources had a greater influence on performance results showed that strategy influenced performance less than human and organizational resources both individually and interactively the influence of owner resources background and attitudes on net cash flow was stronger than on growth where the only significant variable was industry market growth to analyze effects of resources on performance by size we divided the sample by size groupings selecting the smallest maximum five employees and largest quartiles minimum 16 employees which were comprised of 55 and 50 companies respectively these analyses showed that owner resources commitment and organizational resources contributed positively to net cash flow in very small firms however interactive effects of these resource combinations were negative for instance owner resources and organizational resources together and organizational resources and commitment together resulted in less positive cash flow than when analyzed separately this implies that different resource combinations can have negative influences in these very small firms we examined age effects in the same manner as size dividing the sample into age group quartiles and conducting an analysis only for very young fewer than 5 years and very old minimum 19 years groups which comprised 54 and 52 companies respectively these analyses showed that although growth was more rapid among the youngest firms there were no distinctive resource based correlates to growth in either age group substantive increases in formalized systems and procedures were not apparent among the oldest of these companies compared with the youngest contrary to previous work showing the evolution of these over business life cycles results of this study are applicable only in the context of service and retail firms and readers should note this sample was nonrandom and geographically concentrated our purpose was not to predict but describe associations between resources and performance this study shows that for firms in competitive industries at the end of the value chain type of strategy is less important than resource combinations for certain types of performance human and organizational resources are associated with more positive cash flow whereas industry and market factors are related to growth these results imply that firms seeking growth are best served by selecting and entering growth markets and industries on the other hand if strong positive cash flows are the primary objective attention to combinations of resources is more important for instance owner founders having a strong business and managerial background and industry experience will need less formalized systems whereas those owner founders with weaker managerial resources might benefit from more formalized procedures and skilled staff

present at the biotechnological revolution transformation of technological identity for a large incumbent pharmaceutical firm abstract management of successful incumbent firms experience difficulty in recognizing the need for and effecting change in the firm s technological identity after an externally generated shift in the industry s technological trajectory nonetheless some large pharmaceutical firms have transformed their technological identity in drug discovery from a chemical random screening to biological drug design model we report how one of the world s most successful incumbents transformed technically sophisticated senior management championed the transformation it was achieved primarily through hiring many new scientists embodying biotechnology existing personnel acquired the expertise or left continual self transformation is part of the corporate ethos some differences in incumbent and entrant technology remain incumbents use a wider range of techniques consistent with their complementary assets publication and incentive compensation policies are driven by the need to attract and retain the best scientists professor firm collaborations are ubiquitous often non public and best identified in quantitative analyses by co publishing collaborations with new biotechnology firms are used primarily to substitute for developing internal expertise judged of marginal value no drug discovery collaborations exist with other major incumbents we identify another seven or eight incumbents similarly transforming as indicated by top scientific talent and patenting success

the impact of education experience and inner circle advisors on sme performance insights from a study of public development centers in this study we investigate the effects of entrepreneurial human capital on sme performance using data on 2 713 smes within the european union performance was measured in two ways profitability as roa and productivity as revenue per employee results indicate that both profitability and productivity are positively related to industry specific knowledge possessed by the ceo owner prior to starting up the firm and the general business knowledge acquired once the firm is up and running experience as a result of having previously worked in a firm in the same industry before starting a business was related to productivity but there is no relation with profitability there is a link between performance and inclusion of other ceo owners in the founder s inner circle of advisors this relationship is positive when the advisor s venture has experienced failure and negative when the advisor s venture has been successful we discuss the significance of these findings for research and practice

unpacking the uncertainty construct implications for entrepreneurial action abstract uncertainty is central to entrepreneurship however robust and generalizable findings that explain the conditions in which uncertainty may impede or promote entrepreneurial action remain elusive we operationalize uncertainty as a multi dimensional construct composed of state effect and response types of uncertainty milliken 1987 to investigate the relationship between uncertainty and entrepreneurial action we decompose more than 2800 exploitation decision policies nested within a sample of new product decision makers working in entrepreneurial software firms we focus on the primary decision maker s willingness to exploit a given opportunity in the face of varying combinations and manifestations of uncertainty and find that the type of uncertainty experienced influences the willingness to engage in entrepreneurial action differently further we find that differences in how each type of uncertainty is manifested in the environment the scale of exploitation i e large vs small and the entrepreneur s expertise serve to moderate the relationship between uncertainty and action in counter intuitive ways we discuss the implications for both theory and practice

discontinuities and senior management assessing the role of recognition in pharmaceutical firm response to biotechnology despite an increasing emphasis on the role of senior management cognition in shaping organizational action there have been few attempts to link top management mental models to strategic choice in the face of discontinuous innovation this paper uses 23 years of data covering 15 major pharmaceutical firms to explore the degree to which each firm s response to the revolution in biotechnology was shaped by the senior team s recognition of biotechnology s importance controlling for a number of important alternative explanations we show that recognition may be an important predictor of action suggesting that cognition at the most senior level can play a critical role in shaping established firms response to discontinuities copyright 2003 oxford university press

do interest rates drive inflation dynamics an analysis of the cost channel of monetary transmission abstract this paper proposes a novel approach to empirically assessing the impact of the cost channel of monetary transmission on the dynamics of inflation within a new keynesian phillips curve framework according to the cost channel higher interest rates translate into higher marginal costs of production and eventually into higher inflation we exploit the present value implications of the model to derive a series of fundamental inflation that is contrasted with actual inflation we show that the cost channel adds significantly to the explanation of inflation dynamics in forward looking sticky price models for the us the uk and the euro area moreover the cost channel can explain inflation episodes that cannot be accounted for by the standard new keynesian model

incumbent entry into new market niches the role of experience and managerial choice in the creation of dynamic capabilities increasingly technological innovation creates markets for new products and services to survive firms must respond to these new markets how do firms develop the capabilities necessary to succeed in such changing conditions some suggest that experience with previous entry builds such capabilities others suggest that capabilities arise from experience producing and selling to existing markets the role of managers is also debated some argue that experience with existing markets causes managers to miss entry opportunities others argue that managers enter new markets when their firm possesses the experience needed to compete effectively in this paper we explore these issues by investigating entry patterns in the disk drive industry we investigate the effect of experience in existing markets and experience with previous market entry we find that experience in previous markets increased the probability that a firm would enter a new market we show that this experience had greater value if the firm entered the new market we infer that managers chose to enter these markets to obtain this increase in value

is it a car or a truck managerial beliefs the choice of product architecture and the emergence of the minivan market segment new markets segments are a common setting for studies in technology strategy these studies generally assume that new segments already exist or have formed following the introduction of a product innovation by an entering firm thus theory on the role of established firms in the emergence of new market segments is underdeveloped this study informs current research by explaining the product innovation decisions of established firms during the emergence of a new market segment the results of a case study on the development and commercialization of the minivan at chrysler ford and general motors between 1970 and 1985 indicate that existing theories based on managerial cognition firm capabilities economic incentives and organizational structure are insufficient to explain the decisions this article develops theory based on the interrelationship of these four mechanisms

inflation dynamics and the cost channel of monetary transmission evidence from vector autoregressions indicates that the impact of interest rate shocks on macroeconomic aggregates can substantially be affected by the so called cost channel of monetary transmission in this paper we apply a structural approach to examine the relevance of the cost channel for inflation dynamics in g7 countries we augment the so called hybrid new keynesian philips curve by letting firms costs for external funds rise with the short run nominal interest rate our estimates reveal that the magnitude of this cost channel strongly varies between countries including member countries of the emu in accordance with differences in their financial systems simulations of a new keynesian model further show that the presence of the cost channel substantially affects the transmission of monetary policy shocks in particular the inflation response

the time varying cost channel of monetary transmission abstract this paper studies the time varying role of the cost channel of monetary transmission i e the supply side effect of monetary policy based on firms costs of holding working capital for that purpose we provide rolling window estimates of an augmented new keynesian phillips curve and show that the cost channel exhibits important time varying dynamics we find as a general pattern that the cost channel was most important in the pre volcker period and less important in the volcker greenspan era recently however the cost channel regained importance since the cost channel is based on the transmission of policy impulses through bank lending it is likely that the time varying cost channel reflects the cyclical nature of financial frictions

incumbents use of pre entry alliances before expansion into new technical subfields of an industry industry incumbents frequently delay entry into emerging technical subfields fearing product cannibalization and uncertain investment and enter only after technical and market uncertainties have subsided we predict that many incumbents particularly stronger firms will participate in alliances with other firms before their standalone entry the alliances will be used to realize part of the value of specialized assets and to gain information about the emerging products and markets we support the predictions with evidence from the us market of the medical diagnostic imaging industry

unbundling the structure of inertia resource versus routine rigidity i work to unbundle the structure of inertia into two distinct categories resource rigidity failure to change resource investment patterns and routine rigidity failure to change organizational p

know how and asset complementarity and dynamic capability accumulation the case of r d dynamic capabilities enable firms to create new products and processes and respond to changing market conditions this empirical investigation of dynamic r d capabilities deals with the role of complementary know how and other assets in the context of changing conditions in the u s petroleum industry during the 1970s and early 1980s the analysis suggests that in response to rising oil prices firms with larger amounts of complementary technological knowledge and physical assets also undertook larger amounts of r d on coal conversion a synthetic fuels process 1997 by john wiley sons ltd

internet start ups access to the bank loan market evidence from italy the analysis of the bank sector s ability to efficiently fuel the birth of new italian business ventures in internet related services is studied in particular through the specification and the estimate of a series of econometric models this paper aims at investigating which characteristics of a large sample of internet start ups and their relative founders facilitate access to the loan market more precisely the role played by founders human capital as a possible significant signal used by banks to evaluate investment projects is addressed estimation results suggest that highly qualified human resources possessed by internet founders do not represent an important driver for gaining access to bank credit and they do not affect the amount of the incurred debt

women business owners in traditional and non traditional industries abstract small businesses continue to grow in importance to the national economy according to the small business administration america s 22 million small businesses generate more than half of the nation s gross domestic product and are the principal source of new jobs the national foundation for women business owners reported that between 1987 and 1994 the number of women owned businesses grew by 78 and women owned firms accounted for 36 of all firms although the growth in the number of women owned businesses is encouraging the size of such businesses remains small in terms of both revenues and number of employees especially in comparison to male owned businesses one explanation for this disparity is that female business ownership is concentrated primarily in the retail and service industries where businesses are relatively smaller in terms of employment and revenue as opposed to high technology construction and manufacturing one of the most fruitful streams of research in women s occupational choice has been based on social learning theory specifically self efficacy has been found to relate to both type and number of occupations considered by college men and women and with regard to traditional and non traditional occupations entrepreneurship researchers have also used social learning theory to study entrepreneurial intentions this study builds on that background of women s career development and entrepreneurial intentions to examine differences between traditional and non traditional women business owners we examine 170 women business owners in various traditional and non traditional businesses in utah and illinois questionnaires were the primary method of collecting data in addition to 11 in depth interviews from a sample of the survey respondents using a careers perspective based on social learning theory we hypothesized that women in these two different categories of industries would differ on levels of self efficacy toward entrepreneurship or venture efficacy their career expectations and their perceived social support a second analysis was also done that explored the relationship between the same independent variables and success or performance of the business the results offer support for using this integrative model to understand differences between women in traditional and non traditional industries the first analysis revealed that significant differences exist between the two groups on several of the independent variables traditional business owners had higher venture efficacy for opportunity recognition higher career expectations of life balance and security and they reported that the financial support received from others was more important to them than those in non traditional businesses on the other hand the non traditional owners had higher venture efficacy for planning and higher career expectations for money or wealth than the traditional group the second analysis explored whether success as measured by sales was affected by differences in venture efficacies career expectations or perceived support received by women in traditional businesses as compared to those in non traditional ones this analysis revealed that traditional women business owners might have different factors that contribute to their success than non traditional owners specifically for the traditional owners venture efficacies for opportunity recognition and economic management as well as the career expectation of autonomy and money or wealth were positively related to sales for the same group efficacy toward planning and the need for security were negatively related to sales for the non traditional women venture efficacy toward planning and the career expectation of autonomy were positively related to sales while the expectation of money or wealth was negatively related also for the same group the perceived importance of the emotional and financial support was negatively related to sales in the past most of the entrepreneurial research has used predominantly male samples of entrepreneurs those that include women entrepreneurs generally are comparative between men and women this study s comparison of two groups of women entrepreneurs offers a unique contribution to the field future research is recommended to further understand how venture efficacy and career expectations affect the decision to start a new business in a particular industry it would be particularly beneficial to study venture efficacy and career expectations of prospective women entrepreneurs prior to the start of the business similarly greater attention should be given to understanding how venture efficacy develops in different individuals

market attractiveness resource based capabilities venture strategies and venture performance abstract this research seeks to identify variables that should be related to venture performance it is hypothesized that both market attractiveness and resource based capabilities are directly related to new venture performance in addition specific resource based capabilities are hypothesized to be directly related to the competitive strategies chosen by a firm finally the fit between strategies and resource based capabilities is hypothesized to be related to venture performance the sample consisted of all manufacturing businesses sic codes 20 39 started or reorganized in the corporate form between 1980 and 1991 in nine counties in northwestern pennsylvania as identified by a major marketing research service of the 800 companies surveyed completed questionnaires were returned for 155 representing a 19 response rate the 155 responding companies had a median age of 5 years with a median of 15 employees the major products of companies in the sample included flour lumber household and office furniture plastic containers tools and dies ready mixed concrete pipe fittings measuring devices paint and varnish machine tools electroplate carbon and graphite composite products plastic laminated products circuit boards electronic components and parts for internal combustion engines in general the results confirm the validity of the measures of environmental and organizational characteristics as we have adapted them for new ventures as hypothesized perceived market attractiveness and the overall abundance of resource based capabilities were significantly related to venture performance also in two of three cases the evidence suggests that specific resource based capabilities are related to the firm s stated competitive strategies finally although the relationship between fit and performance is not supported in all cases the performance of the emerging manufacturing ventures included in this sample appears to be enhanced when resource based capabilities are supportive of a cost leadership strategy and when firms seeking to differentiate based on product and service quality have the resource based capabilities to support that strategy the results of this emerging research stream will make an important contribution to our understanding of the factors that impact firm performance for scholars the results provide additional information needed to develop comprehensive new venture performance models a clear understanding of the factors that have a strong influence on venture performance will enable practitioners to better identify viable business opportunities and academicians to provide potential business founders with tools to help them recognize opportunity in addition the identification of appropriate levels of abstraction will provide building blocks for future research that seeks to integrate environmental and firm level constructs

the introduction of a non traditional and aggressive approach to banking the risks of hubris this study integrates institutional theory and social cognitive theory to describe how peripheral organizations can accidentally bring about radical change even in highly institutionalized and change resistant fields the empirical context is the field of banking in ireland 1995 2001 where a peripheral bank triggered a shift away from traditionally conservative and risk averse banking values toward aggressive values of entrepreneurial risk taking the introduction of a new approach to banking was attributed to three factors 1 a benevolent environment which made this innovation feasible and timely 2 the state of the field which had gaps that could be addressed through specialization and 3 prior successes which created hubris in the senior managers thereby increasing the pace and scope of adoption of this approach eventually what started as a specialized and entrepreneurial approach led to the spread of a risky approach to banking across the entire field the study highlights the risks of hubris in that media praise and early successes can increase the pace of adoption of innovations which offer short term gains but are detrimental in the long term

inertia and incentives bridging organizational economics and organizational theory organizational theorists have long acknowledged the importance of the formal and informal incentives facing a firm s employees stressing that the political economy of a firm plays a major role in shaping organizational life and firm behavior yet the detailed study of incentive systems has traditionally been left in the hands of organizational economists with most organizational theorists focusing their attention on critical problems in culture network structure framing and so on in essence the social context in which economics and incentive systems are embedded we argue that this separation of domains is problematic the economics literature for example is unable to explain why organizations should find it difficult to change incentive structures in the face of environmental change while the organizational literature focuses heavily on the role of inertia as sources of organizational rigidity drawing on recent research on incentives in organizational economics and on cognition in organizational theory we build a framework for the analysis of incentives that highlights the ways in which incentives and cognition while being analytically distinct concepts are phenomenologically deeply intertwined we suggest that incentives and cognition coevolve so that organizational competencies or routines are as much about building knowledge of what should be rewarded as they are about what should be done we argue that this recognition has important implications for our understanding of organizational inertia in the face of environmental change and that it opens up important new areas for further research

incentives and individual motivation in supervised work groups abstract this paper introduces and analyzes a model of supervised work group where subordinates decide how to exert their effort in complementary tasks while the supervisors decide incentives incentives may be a combination of individual and group based ones the optimality of incentives is analyzed when considering two different cost functions for subordinates the two cost functions describe different individual motivations comparing the resulting effort allocations and production optimality we can relate them to different organizational theories our results provide a measure of how motivation among subordinates may affect production and incentives furthermore the optimal incentives schemes are examined in terms of adams equity theory

top management s attention to discontinuous technological change corporate venture capital as an alert mechanism technological discontinuities pose serious challenges to top managers attention these discontinuities which often occur at the fringes of an industry are usually driven by innovative and often venture capital backed start ups creating new products and transforming existing industries in ways that are difficult for incumbent managers to understand against the backdrop of their existing cognitive schemata however failing to appreciate and embrace successful technological discontinuities might endanger incumbents very existence extending the attention based view we explore whether and how interorganizational relationships guide top managers attention either to or away from technological discontinuities we propose that homophilous relationships e g alliances with industry peers should exhibit a negative relationship with incumbents timely attention to technological discontinuities whereas heterophilous relationships e g with venture capitalists as a result of coinvestments should exhibit a positive relationship furthermore we hypothesize that the status of the partners strengthens the effect of homophilous and heterophilous relationships with the timely attention of top managers to technological discontinuities based on a longitudinal study of the incumbents in four information and communications technology industry sectors we find that heterophilous ties through corporate venture capital cvc coinvesting with high status venture capital firms exhibit a strong positive relationship with timely attention cvc when it connects senior management to high status venture capitalists through coinvestments has a special role in directing top managers attention to technological discontinuities and ensuing business opportunities implications for the understanding of the role of interorganizational ties as structural determinants of top managers attention are discussed

institutional change in large law firms a resource dependency and institutional perspective we integrate resource dependency and institutional theory to argue that resource scarcity drives and legitimacy enables institutional change building on a historical account we examine the sources and timing of innovation departing from standard human resource practices using event history analysis of over 200 principal offices of large law firms offices with human resource scarcity innovated to acquire alternative resources highly prestigious offices had the legitimacy to be first or early adopters our findings highlight the value of looking to the resource side and to the notion of legitimacy in building an institutional theory of change

stackelberg equilibria in managerial delegation games abstract managerial compensation packages do not only influence managers behavior but also have an impact on competing firms in a managerial delegation game investigating the latter aspect it is shown that the inherent prisoner s dilemma situation can be resolved without changing the normally studied setup or timing in the first stage owners choose an incentive function for their managers in the second stage they choose the weights assigned to that function besides profits and in the third stage managers play a cournot game solving this continuous optimization problem with the implicit function theorem shows that choosing an incentive from the set of multiplicative incentives i e any generalized affine transformation of the product of both firms quantities which includes e g relative profit ensures that the stackelberg outcome is among the set of equilibrium outcomes furthermore it is the unique outcome if the rival owner opts for one of the well known incentives like sales revenue or market share the general approach used allows demonstrating that with no other linear incentive a stackelberg outcome results and that incentives like profit to cost ratio should be avoided selecting a multiplicative incentive is a dominant strategy of the game

customer power strategic investment and the failure of leading firms why might firms be regarded as astutely managed at one point yet subsequently lose their positions of industry leadership when faced with technological change we present a model grounded in a study of the world disk drive industry that charts the process through which the demands of a firm s customers shape the allocation of resources in technological innovation a model that links theories of resource dependence and resource allocation we show that established firms led the industry in developing technologies of every sort even radical ones whenever the technologies addressed existing customers needs the same firms failed to develop simpler technologies that initially were only useful in emerging markets because impetus coalesces behind and resources are allocated to programs targeting powerful customers projects targeted at technologies for which no customers yet exist languish for lack of impetus and resources because the rate of technical progress can exceed the performance demanded in a market technologies which initially can only be used in emerging markets later can invade mainstream ones carrying entrant firms to victory over established companies

cognition capabilities and incentives assessing firm response to the fiber optic revolution this study examines how ceo cognition organizational capabilities and organizational incentives interacted to shape firm strategy during the fiber optic revolution i tested for these factors as

sticky price and limited participation models of money a comparison abstract we provide new evidence that models of the monetary transmission mechanism should be consistent with at least the following facts after a contractionary monetary policy shock the aggregate price level responds very little aggregate output falls interest rates initially rise real wages decline by a modest amount and profits fall we compare the ability of sticky price and limited participation models with frictionless labor markets to account for these facts the key failing of the sticky price model lies in its counterfactual implications for profits the limited participation model can account for all the above facts but only if one is willing to assume a high labor supply elasticity 2 percent and a high markup 40 percent the shortcomings of both models reflect the absence of labor market frictions such as wage contracts or factor hoarding which dampen movements in the marginal cost of production after a monetary policy shock 1997 elsevier science b v

leviathan as an inventor an extended agency model of state owned versus private firm invention in emerging and developed economies we examine the relative merits of state soe and private poe ownership on firm invention output in emerging as well as developed economies firm soe affords a vehicle by which governments throughout the world encourage risky investment in new technological paths yet from a traditional agency theoretical standpoint soes are plagued by low powered incentives and dysfunctional involvement e g wasteful budgets and political meddling which reduces soe performance relative to poes to examine this paradox we build an extended agency model which rather than overlooking agency cost drivers entertains a more balanced view in which these so called agency liabilities in fact benefit soes particularly in the sphere of inventions we argue that given relatively higher levels of managerial autonomy soes may outperform poes in some types of inventive output we further propose that key boundary conditions operate to modify this base effect in that contexts lacking political constraints a condition found in most emerging economies increase the risk of political meddling reducing managerial autonomy so that any soe inventive advantages wane significantly we also hypothesize that this negative effect of weak institutions is attenuated in high invention productivity sectors empirically we track the frequency pioneerism and impact of patent inventions of 521 soes and matched poes for 16 years across 43 countries and 22 industries we find empirical support for our hypotheses based on a robust set of fixed effects regression analyses aided by a battery of checks to assess self selection and omitted variable bias

financial factors and monetary policy determinacy and learnability of equilibrium abstract we contribute to the debate on whether central banks should respond to financial factors in monetary policy rules by evaluating equilibrium determinacy and e stability in the presence of a financial accelerator policies responding to lagged asset prices either reduce the region of determinacy or e stability in the parameter space however a response to current asset prices expands both regions of determinacy and e stability policy rules reacting to credit volume constrict the determinacy region most policies responding to credit spreads expand determinacy and e stability regions we favor the inclusion of current asset prices or credit spreads in monetary policy rules

making sense in hypercompetitive environments a cognitive explanation for the persistence of high velocity competition this paper explores the cognitive aspects underlying industries in hypercompetitive environments hypercompetition represents a state of competition with rapidly escalating levels of competition and reduced periods of competitive advantage for firms in hypercompetitive industries member firms act boldly and aggressively to create a state of competitive disequilibrium in this paper we explore the particular conditions that managers encounter in making sense of hypercompetitive industries and argue that the nature of these conditions is such that conventional sensemaking frameworks will not work we then describe the adaptive sensemaking practices established in the literature for dealing with temporary turbulence and suggest that in hypercompetition those processes continue indefinitely we argue that these processes can become institutionalized as standard operating procedures within firms and as shared recipes within industries which in turn perpetuates hyperturbulent conditions

dynamic capabilities what are they this paper focuses on dynamic capabilities and more generally the resource based view of the firm we argue that dynamic capabilities are a set of specific and identifiable processes such as product development strategic decision making and alliancing they are neither vague nor tautological although dynamic capabilities are idiosyncratic in their details and path dependent in their emergence they have significant commonalities across firms popularly termed best practice this suggests that they are more homogeneous fungible equifinal and substitutable than is usually assumed in moderately dynamic markets dynamic capabilities resemble the traditional conception of routines they are detailed analytic stable processes with predictable outcomes in contrast in high velocity markets they are simple highly experiential and fragile processes with unpredictable outcomes finally well known learning mechanisms guide the evolution of dynamic capabilities in moderately dynamic markets the evolutionary emphasis is on variation in high velocity markets it is on selection at the level of rbv we conclude that traditional rbv misidentifies the locus of long term competitive advantage in dynamic markets overemphasizes the strategic logic of leverage and reaches a boundary condition in high velocity markets copyright 2000 john wiley sons ltd

preemptive patenting and the persistence of monopoly this article takes a different tack and inquires whether institutions such as the patent system create opportunities for firms with monopoly power to maintain their monopoly power the results apply to other situations such as brand identification spatial location and capacity expansion which share the characteristic that early or preemptive actions may lower the returns to potential competitors

corporate structure indirect bankruptcy costs and the advantage of de novo firms the case of gene therapy research current literature demonstrates that at least initially incumbents invest less in the in house development of a new technology than do entrants whether diversifying or de novo this is because for incumbents new technology challenges managers mental models through changes in capabilities revenue models or product features what has not been explored despite its significance for strategic action is whether and if so why incumbent diversifying and de novo firms might invest differently across variants of a new technology through a discontinuity this paper uses unique quantitative archival and interview data on the investment choices of incumbent diversifying and de novo firms around three variants of biotechnology small molecule large molecule and gene therapy drugs to show there are differences in investment choices across groups of firms and to suggest that these can be explained through differences in volatility of outcomes across variants when volatility in product performance generates volatility in firm level outcomes de novo firms can cap negative consequences through bankruptcy an alternative that is extremely costly for established firms whether incumbent or diversifying given their complex corporate structure by keeping indirect bankruptcy costs low de novo firms simple corporate structure allows them to extract option value from volatility making established versus de novo firms the key groups for analysis of investment choices not incumbent versus entrant firms this article thus identifies the interaction between a technological investment s volatility and de novo firms simple corporate structure as the explanatory variable for the observed investment differences i discuss implications for technology strategy and the competitive analysis of discontinuities

entrepreneurship and the initial size of firms abstract it is clear that entrepreneurs and their firms can vary widely nevertheless most of the research to date on entrepreneurship has examined central tendencies with relatively little attention devoted to entrepreneurial diversity this study examines one of the most distinguishing characteristics of young firms initial size the focus is whether smaller start ups differ from larger ones in the backgrounds of the entrepreneurs their processes of starting or the subsequent patterns of development in this longitudinal study an initial sample of 1903 young firms was examined to determine differences in characteristics of the entrepreneurs and in their processes of starting one year later data were obtained from 742 of these firms permitting analysis of how initial firm size was related to subsequent difficulties encountered and changes made as well as to performance as expected along almost every dimension these starting larger firms had the backgrounds that would seem to be necessary for the assembly of substantial resources they tended to have more education more management experience and goals that were more managerial in nature they also were more likely to have partners women were associated more often with smaller ventures but for this sample there were no differences in the representation of minorities between the smaller and larger start ups those starting larger ventures tended to rely more upon external investors and to start ventures more closely linked to their previous jobs both groups of entrepreneurs sought information from a number of sources but those founding larger ventures utilized professional advisors more whereas those starting smaller ventures utilized informal sources in the year after the first questionnaire differences between the two groups were less marked than expected both groups of surviving firms reported low levels of serious problems with the smaller ventures somewhat surprisingly reporting serious problems less often there were not many differences in changes made except that smaller ventures were more likely to lose partners and larger ventures were more likely to add branches or locations both groups reported high rates of mean growth in sales the smaller ventures with their small initial bases showed larger percentage increases smaller ventures also showed higher percentage increases in employment and surprisingly a greater increase in the absolute number of employees somewhat more of the smaller ventures had discontinued both groups included many firms that grew substantially and others that scaled back demonstrating the fluidity and experimentation characteristic of young firms for entrepreneurs and their advisors for public policy makers and for researchers any progress in understanding entrepreneurial processes should in the long run enhance venture performance the patterns observed here indicate that firms of different initial size tend to be associated with particular entrepreneurial characteristics processes of formation and subsequent patterns of development this diversity should be recognized in the development of assistance programs and university courses as well as in the interpretation of previous research for public policy makers the growth of these firms both small and large indicates the potential of economic contributions from entrepreneur ship further the growth of the smaller start ups suggests that even those ventures that appear to have few resources and modest potential can in the aggregate contribute substantially to the economy

learning about monetary policy rules when the cost channel matters abstract we study how monetary policy may affect determinacy and expectational stability e stability of rational expectations equilibrium when the cost channel of monetary policy matters focusing on instrumental taylor type rules and optimal target rules we show that standard policies can induce indeterminacy and expectational instability when the cost channel is present a naive application of the traditional taylor principle could be misleading and expectations based reaction function under discretion does not always induce determinate and e stable equilibrium this result contrasts with the findings of bullard and mitra 2002 learning about monetary policy rules journal of monetary economics 49 1105 1129 and evans and honkapohja 2003 expectations and stability problem for optimal monetary policies review of economic studies 70 807 824 for the standard new keynesian model the ability of the central bank to commit to an optimal policy is an antidote to these problems

real wage rigidity and the taylor principle abstract this paper investigates conditions for equilibrium determinacy in the basic new keynesian model with real wage rigidity the determinacy region is increased under forward looking rules and the taylor principle continues to ensure equilibrium uniqueness under current looking rules

who i am and how i contract the effect of contractors roles on the evolution of contract structure in university industry research agreements in this exploratory study of university industry sponsored research agreements we investigate how organizational roles direct the relational learning of contracting personnel which subsequently influences contract evolution integrating theory with comments from field interviews we posit that as scientists gain contracting experience with an exchange partner their focus of attention on knowledge creation supports the establishment of a relationship based on technical competence behavioral experience and operational routines that cause the enforcement terms of subsequent contracts to become less detailed we also submit that contract administrators because of their focus on knowledge protection mitigating opportunism and enforcement primarily accumulate joint governance experience and establish administrative routines that cause the enforcement terms of subsequent contracts to become more detailed rich content analysis of monitoring and intellectual property terms of sponsored research agreements supports our theoretically grounded hypotheses

decoding the adaptability rigidity puzzle evidence from pharmaceutical incumbents pursuit of gene therapy and monoclonal antibodies the emergence of radical technologies presents a significant challenge to incumbent firms we study firms management of radical technological change by separating their actions into upstream research the r of r d and downstream development the d of r d we introduce two contingencies to explain when incumbents research investments in radical technologies translate into product development and when these upstream investments may get voided by organizational inertia downstream first radical technologies can differ in how they conform to incumbents existing business models impacting the extent to which the movement of research outputs toward development will be subject to inertial pressures second incumbents can invest in a radical technology through a variety of modes internal research external research contracts alliances acquisitions these modes represent unique combinations of who does research and who is involved in the decision for subsequent development and hence differ in the extent to which they are shielded from inertial pressures this difference helps explain why incumbents despite responding to radical technologies may still be unable to adapt as well as what types of investments will be more effective in helping firms navigate technological change evidence from pharmaceutical incumbents pursuit of monoclonal antibodies and gene therapy offers strong support for our arguments

when does the cost channel pose a challenge to inflation targeting central banks abstract in a sticky price model where firms finance their production inputs there is both a lower and an upper bound on the central bank s inflation response necessary to rule out the possibility of self fulfilling inflation expectations this paper shows that real wage rigidities decrease this upper bound but coefficients in the range of those on the taylor rule place the economy well within the determinacy region however when there is time variation in the share of firms who finance their inputs i e markov switching then inflation targeting interest rate rules frequently result in indeterminacy even if the central bank also targets output adding a nominal growth target to the policy rule can often alleviate this indeterminacy and therefore anchor inflation expectations

absorptive capacity coauthoring behavior and the organization of research in drug discovery we examine the interface between for profit and publicly funded research in pharmaceuticals firms access upstream basic research through investments in absorptive capacity in the form of in house basic research and pro publication internal incentives some firms also maintain extensive connections to the wider scientific community which we measure using data on coauthorship of scientific papers between pharmaceutical company scientists and publicly funded researchers connectedness is significantly correlated with firms internal organization as well as their performance in drug discovery the estimated impact of connectedness on private research productivity implies a substantial return to public investments in basic research

capabilities structure agency and evolution this paper examines conceptual issues and reviews empirical results bearing on the relationship between research approaches emphasizing organizational capabilities and those based in transaction cost economics tce or in organizational economics more generally following a review of conceptual fundamentals what capability is and why organizations differ in capability it assesses recent progress toward an integration of the capabilities and transaction cost approaches primarily in the context of the analysis of vertical structure and related phenomena this review suggests that progress has been substantial and that the key elements of a promising dynamic synthesis have been identified the paper then considers issues that call for attention if further progress is to be achieved the first of these is the role of agency which must be seen in expansive terms relative to standard economic rationality if its evolutionary significance is to be fully appreciated the second is the role of structure or more specifically industry architecture which affects capability development by way of its effect on the feedback that firms receive after drawing on the recent financial crisis for an illustration of these ideas this paper considers the rise of interest in business models as a useful field of application and it concludes with a discussion of the role of organizational economics beyond tce we argue that whatever the theoretical perspective at the level of the firm analyses must reach beyond that level to grasp the important causal forces affecting capability development firm boundaries and structural features more generally

unraveling the process of creative destruction complementary assets and incumbent survival in the typesetter industry when radical technological change transforms an industry established firms sometimes fail drastically and are displaced by new entrants yet other times survive and prosper drawing upon an unusually rich data set that covers the technological and competitive history of the typesetter industry from 1886 to 1990 this paper uses a combination of quantitative and qualitative analysis to unravel this process of creative destruction it argues that the ultimate commercial performance of incumbents vs new entrants is driven by the balance and interaction of three factors investment technical capabilities and appropriability through specialized complementary assets in this industry specialized complementary assets played a crucial role in buffering incumbents from the effects of competence destruction and an analysis that examined investment or technical capabilities in isolation would have led to misleading results this work thus highlights the importance of considering multiple perspectives when examining the competitive implications of technological change 1997 by john wiley sons ltd

selective attention and the initiation of the global knowledge sourcing process in multinational corporations multinational corporations mncs frequently use their foreign subsidiaries to identify new opportunities to access external knowledge this article builds on the attention based view to examine how selective attention the focus on certain issues or answers at the exclusion of others works in the global knowledge sourcing process in mncs the results reveal an intriguing paradox while mncs may establish foreign subsidiaries far from headquarters to identify diverse novel knowledge and overcome local search headquarters decision makers tend to favor opportunities that are market proven and simply confirm what the mnc already knows subsidiary managers pre selling and selling efforts however can play a pivotal role in overcoming that bias this study combines detailed qualitative data with access to a proprietary database on 137 external knowledge sourcing opportunities in one of the world s largest mncs in the telecommunications sector

interest rate rules vs money growth rules a welfare comparison in a cash in advance economy abstract this paper considers the welfare consequences of two particularly simple rules for monetary policy an interest rate peg and a money growth peg the model economy consists of a real side that is the standard real business cycle model and a monetary side that amounts to imposing cash in advance constraints on certain market transactions the paper also considers the effect of assuming a rigidity in the typical household s cash savings choice the competitive equilibrium of the economy is not pareto efficient partly because of two distortions a distortion on the capital accumulation decision and a distortion on portfolio choice that arises from the assumed rigidity the principal result of the paper is that the interest rate rule but not the money growth rule entirely eliminates these two distortions and is thus the benevolent central banker s policy choice

ceo hubris and firm risk taking in china the moderating role of managerial discretion this study linked ceo hubris to firm risk taking and examined the moderating role of managerial discretion in this relationship drawing on upper echelons theory and behavioral decision theory we

asset specificity and behavioral uncertainty as moderators of the sales growth employment growth relationship in emerging ventures sales growth and employment growth are the two most widely used growth indicators for new ventures yet sales growth and employment growth are not interchangeable measures of new venture growth rather they are related but somewhat independent constructs that respond differently to a variety of criteria most of the literature treats this as a methodological technicality however sales growth with or without accompanying employment growth has very different implications for managers and policy makers a better understanding of what drives these different growth metrics has the potential to lead to better decision making to improve that understanding we apply transaction cost economics reasoning to predict when sales growth will be or will not be accompanied by employment growth our results indicate that our predictions are borne out consistently in resource constrained contexts but not in resource munificent contexts