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volume 34, issue 6, nov/dec 2023
1. title: primer for experimental methods in organization theory.
authors: levine, sheen s.; schilke, oliver; kacperczyk, olenka; zucker, lynne g.
abstract: experiments have long played a crucial role in various scientific disciplines and have been gaining ground in organization theory, where they add unique value by establishing causality and uncovering theoretical mechanisms. this essay provides an overview of the merits and procedures of the experimental methodology, with an emphasis on its application to organization theory. drawing on the historical roots of experiments and their impact across science, we argue the method holds immense potential for furthering organization theory. we highlight key advantages of experimental methods, including high internal and construct validity, vividness in communicating findings, the capacity to examine complex and understudied phenomena, and the identification of microfoundations and theoretical mechanisms. we alleviate some concerns about external validity and offer guidance for designing and conducting sound, reproducible experimental research. ultimately, we contend that the current experimental turn holds the potential to reorient organization theory.
2. title: when reflection hurts: the effect of cognitive processing types on organizational adaptation to discontinuous change.
authors: alves, marlon fernandes rodrigues; vastola, vincenzo; vasconcelos ribeiro galina, simone; zollo, maurizio.
abstract: technological breakthroughs, institutional disruptions, and natural disasters often alter the course of organizations and entire industries. such discontinuous changes threaten organizations' survival by affecting the value of the knowledge accumulated in routines and capabilities. although it is widely acknowledged that managerial cognition is a critical antecedent of organizational responses to discontinuous change, the role of type 1 (intuitive) and type 2 (reflective) processing in the adaptation of shared patterns of behavior, that is, routines, remains understudied. drawing on dual-process theory, we propose that particular features of type 1 processing render this approach superior to type 2 processing, especially in highly ambiguous environments in which information is limited and difficult to verify. we tested our hypotheses in a longitudinal experiment linking individual-level factors with organizational-level practices of routine adaptation. experienced managers, paired in 80 groups, developed routines in a first round of a simulation game; in a second round, we then introduced a discontinuous change making previous routines obsolete in order to observe how they adapted. the data show that priming type 1 processing facilitates organizational adaptation more than type 2 processing by providing faster, more routinized, efficiently coordinated, and optimal responses. in addition, type 1 appears to be more functional in highly ambiguous environments, whereas type 1 and type 2 processes yield similar levels of performance under low levels of ambiguity. overall, our study advances the understanding of the nondeliberative dimension of organizational adaptation to discontinuous change.
3. title: microfoundations of adaptive search in complex tasks: the role of cognitive abilities and styles.
authors: bergenholtz, carsten; vuculescu, oana; amidi, ali.
abstract: problem-solving in complex environments requires a cognitively demanding search for task solutions. managing this search process presents a major challenge in organizations. we contribute to the literature on this topic by providing new evidence on the cognitive antecedents that shape how individuals search when engaged in complex problem-solving tasks. we present results from three laboratory studies, wherein 335 individuals solved a complex task. in doing so, they generated behavioral data coupled with survey-based measurements of the individuals' cognitive styles and performance-based tests of their cognitive abilities. our data analysis contributes to the current literature by documenting systematic heterogeneity in the persistence and distance of search that can be explained by the participants' level of creativity, attention to detail, and executive functions. we extend the research on the microfoundations of adaptive search by linking cognitive antecedents with a complex search task, widening our insight into what search behavior certain cognitive microfoundations lead to, and showing how managers can more effectively shape organizational search.
4. title: network centralization and collective adaptability to a shifting environment.
authors: bernstein, ethan s.; shore, jesse c.; jang, alice j.
abstract: we study the connection between communication network structure and an organization's collective adaptability to a shifting environment. research has shown that network centralization�the degree to which communication flows disproportionately through one or more members of the organization rather than being more equally distributed�interferes with collective problem-solving by obstructing the integration of existing ideas, information, and solutions in the network. we hypothesize that the mechanisms responsible for that poor integration of ideas, information, and solutions would nevertheless prove beneficial for problems requiring adaptation to a shifting environment. we conducted a 1,620-subject randomized online laboratory experiment, testing the effect of seven network structures on problem-solving success. to simulate a shifting environment, we designed a murder mystery task and manipulated when each piece of information could be found: early information encouraged an inferior consensus, requiring a collective shift of solution after more information emerged. we find that when the communication network within an organization is more centralized, it achieves the benefits of connectivity (spread of novel better solutions) without the costs (getting stuck on an existing inferior solution). we also find, however, that these benefits of centralization only materialize in networks with two-way flow of information and not when information only flows from the center of the network outward (as can occur in hierarchical structures or digitally mediated communication). we draw on these findings to reconceptualize theory on the impact of centralization�and how it affects conformity pressure (lock-in) and awareness of diverse ideas (learning)�on collective problem-solving that demands adaptation.
5. title: organizing entrepreneurial teams: a field experiment on autonomy over choosing teams and ideas.
authors: boss, viktoria; dahlander, linus; ihl, christoph; jayaraman, rajshri.
abstract: scholars have suggested that autonomy can lead to better entrepreneurial team performance. yet, there are different types of autonomy, and they come at a cost. we shed light on whether two fundamental organizational design choices�granting teams autonomy to (1) choose project ideas to work on and (2) choose team members to work with�affect performance. we run a field experiment involving 939 students in a lean startup entrepreneurship course over 11 weeks. the aim is to disentangle the separate and joint effects of granting autonomy over choosing teams and choosing ideas compared with a baseline treatment with preassigned ideas and team members. we find that teams with autonomy over choosing either ideas or team members outperform teams in the baseline treatment as measured by pitch deck performance. the effect of choosing ideas is significantly stronger than the effect of choosing teams. however, the performance gains vanish for teams that are granted full autonomy over choosing both ideas and teams. this suggests the two forms of autonomy are substitutes. causal mediation analysis reveals that the main effects of choosing ideas or teams can be partly explained by a better match of ideas with team members' interests and prior network contacts among team members, respectively. although homophily and lack of team diversity cannot explain the performance drop among teams with full autonomy, our results suggest that self-selected teams fall prey to overconfidence and complacency too early to fully exploit the potential of their chosen idea. we discuss the implications of these findings for research on organizational design, autonomy, and innovation.
6. title: gender differences in responses to competitive organization? a field experiment on differences between stem and non-stem fields from an internet-of-things platform.
authors: boudreau, kevin j.; kaushik, nilam.
abstract: prior research, primarily based on laboratory experiments of children and students, suggests that women might be more averse to competition than are men; women might, instead, be more inclined toward collaboration. were these findings to generalize to working-age men and women across the workforce, there could be profound implications for organizational design and personnel management. we report on a field experiment in which 97,678 adults from a wide range of fields of training and career stages were invited to join a product development platform. individuals were randomly assigned to treatments framing the opportunity as either involving competitive or collaborative interactions with other participants. among those outside of science, technology, engineering, and math (stem) fields, we find differences in the willingness of men and women to participate under competition. thus, patterns in non-stem fields conform to the usual claims of gender differences. however, among those in stem fields, we find no statistical gender differences. results hold under a series of alternative specifications, controls, and stratified analyses of 17 narrowly defined stem subfields. the results are consistent with sorting into fields on the basis of competitiveness, as suggested by prior research, as well as other explanations we discuss. overall, heterogeneity among women and heterogeneity among men appear to be at least as important as population-wide gender differences.
7. title: when do evaluators publicly express their legitimacy judgments? an inquiry into the role of peer endorsement and evaluative mode.
authors: van den broek, tijs; langley, david j.; ehrenhard, michel l.; groen, aard.
abstract: legitimacy theory describes how individuals evaluate an organization's behavior, form propriety evaluations, and subsequently decide whether to publicly express their legitimacy judgments. these individual judgments are influenced by sources of collective validity, for example, from recognized authority or from peer endorsement. whereas most research on this topic has focused on the effects of authority, we study the influence of peer endorsement on the public expression of legitimacy judgments. additionally, we assess evaluators' preparedness to expend cognitive effort, that is, their evaluative mode, as an important condition under which judgment expressions are made. we present a set of three vignette experiments and one field study, all situated in social media that are quickly becoming the dominant setting for the expression of legitimacy judgments. this research provides new evidence that peer endorsement stimulates evaluators to express their judgments, particularly for evaluators who expend limited cognitive effort. additionally, we find that evaluators in the active and passive evaluative modes act differently when their propriety evaluations are based on instrumental, moral, or relational considerations. these findings extend current legitimacy theory about how peer endorsement functions as a source of validity and when individual evaluators decide to publicly express their legitimacy judgments. this is important because individuals' public expressions can bring about a cascade of judgments that change the consensus on an organization's legitimacy, potentially contributing to institutional change.
8. title: context and aggregation: an experimental study of bias and discrimination in organizational decisions.
authors: christensen, michael; dahl, christian m.; knudsen, thorbj�rn; warglien, massimo.
abstract: this paper addresses a notable gap at the intersection of organizational economics and organization science: how does organizational context influence aggregation of individual behavior in organizational decisions? using basic centralized versus decentralized organizational structures as building blocks for our experimental design, we examine whether assignment of organizational positions, incentive schemes, and structural configuration induce endogenous adaptation in the form of change in reservation levels (bias) or modified discrimination capability in subjects' behavior. we found that evaluators adapted their reservation and discrimination levels in centralized structures, whereas they did not generally adapt their reservation and discrimination levels when placed in decentralized structures. we identify mechanisms that explain these findings; explain how they influence aggregate, organizational behavior; and discuss implications for research and practice.
9. title: iterative coordination and innovation: prioritizing value over novelty.
authors: ghosh, sourobh; wu, andy.
abstract: an innovating organization faces the challenge of how to prioritize distinct goals of novelty and value, both of which underlie innovation. popular practitioner frameworks like agile management suggest that organizations can adopt an iterative approach of frequent meetings to prioritize between these goals, a practice we refer to as iterative coordination. despite iterative coordination's widespread use in innovation management, its effects on novelty and value in innovation remain unknown. with the information technology firm google, we embed a field experiment within a hackathon software development competition to identify the effect of iterative coordination on innovation. we find that iterative coordination causes firms to implicitly prioritize value in innovation: although iteratively coordinating firms develop more valuable products, these products are simultaneously less novel. furthermore, by tracking software code, we find that iteratively coordinating firms favor integration at the cost of knowledge-creating specialization. a follow-on laboratory study documents that increasing the frequency and opportunities to reprioritize goals in iterative coordination meetings reinforces value and integration, while reducing novelty and specialization. this article offers three key contributions: highlighting how processes to prioritize among multiple performance goals may implicitly favor certain outcomes; introducing a new empirical methodology of software code version tracking for measuring the innovation process; and leveraging the emergent phenomenon of hackathons to study new methods of organizing.
10. title: microfoundations of problem solving: attentional engagement predicts problem-solving strategies.
authors: laureiro-martinez, daniella; arrieta, jose pablo; brusoni, stefano.
abstract: organizations use a plethora of methods and tools to help their members solve problems effectively. yet the specifics of how individuals solve problems remain largely unexplored. we propose and test a cognitive model of problem solving that integrates dual process theories into the attention-based view. the model suggests that diverse problem-solving strategies emerge in response to how individuals deliberate. three studies provide observational and causal evidence in support of our model. the first study explores the strategies managers use to solve problems. we use think-aloud protocols combined with content, sequence, and cluster analyses to extract the key differences in how experienced managers solve problems. two problem-solving strategies emerge from the data: one emphasizes mental activities related to framing, and the other emphasizes mental activities related to implementation. in the second study, we use a mixed factorial experimental design and mouse-tracking analysis to uncover the causal mechanism that explains the emergence of these two strategies. we then retest our hypotheses in a third, preregistered, study. we find that manipulating attention toward mental activities related to framing increases deliberation aimed at restructuring the problem elements. in contrast, directing attention toward mental activities related to implementation increases deliberation on the potential contingencies and consequences of the solution. our findings provide empirical evidence about how problems are actually solved and support the idea that attentional processes are malleable enough to affect the choice of problem-solving strategies.
11. title: building an equilibrium: rules vs. principles in relational contracts.
authors: gibbons, robert; grieder, manuel; herz, holger; zehnder, christian.
abstract: effective collaboration within and between organizations requires efficient adaptation to unforeseen change. we study how parties build relational contracts that achieve this goal. we focus on the "clarity problem"�whether parties have a shared understanding of the promises they make to each other. specifically, (a) a buyer and seller play a trading game in several periods; (b) they know their environment will change but do not know how; and (c) before any trading occurs, they can reach a nonbinding agreement about how to play the entire game. we hypothesize that pairs whose initial agreement defines a broad principle rather than a narrow rule are more successful in solving the clarity problem and in achieving efficient adaptation after unforeseen change. in our baseline condition, we indeed observe that pairs who articulate principles achieve significantly higher performance after change occurred. underlying this correlation, we also find that pairs with principle-based agreements were more likely to both expect and take actions that were consistent with what their agreement prescribed. to investigate a causal link between principle-based agreements and performance, we implement a "nudge" intervention that induces more pairs to articulate principles. the intervention succeeds in coordinating more pairs on efficient quality immediately after the unforeseen change, but it fails to coordinate expectations on price, ultimately leading to conflicts and preventing an increase in long-run performance after the shock. our results suggest that (1) principle-based agreements may improve organizational performance but (2) high-performing relational contracts may be difficult to build.
12. title: collateral damage: the relationship between high-salience events and variation in racial discrimination.
authors: gorbatai, andreea; younkin, peter; burtch, gordon.
abstract: to what extent are individual or organizational biases affected by racially salient events? we propose that acts of discrimination and the individual biases that undergird them are sensitive to high-salience events and will oscillate with the salience of the focal attribute. in short, that the propensity to discriminate reflects both individual and environmental differences, and therefore a given person may become more prone to discriminate in the aftermath of a high-salience event. we test our hypothesis in three online experiments that examine how varying the salience of race affects the evaluation of in-group or out-group founders. we find that respondents evaluate their in-group members more favorably, and out-group members less favorably, when exposed to a high-salience event, which translates into a significant disadvantage for the minority (african american) group. we complement these studies with an assessment of how police shootings affect fundraising outcomes on kickstarter to confirm the external validity of our findings. together, these studies indicate that racially salient events depress the quality evaluations and success odds of african american entrepreneurs relative to others. hence, discrimination levels can be affected by salient yet unrelated events, and such events are consequential for the economic fortunes of individuals belonging to minority and disadvantaged groups.
13. title: managing uncertainty: an experiment on delegation and team selection.
authors: hamman, john r.; mart�nez-carrasco, miguel a.
abstract: we study how organizations use team selection and delegation of authority jointly to navigate uncertain environments. to do so, we model a managerial decision environment in which a manager both determines the skill heterogeneity of the workers and determines whether to retain or delegate the ability to allocate tasks. delegation enables better-informed workers to allocate tasks more efficiently when uncertainty is high relative to the incentive conflict between manager and worker. our novel approach allows us to illustrate that this conflict is endogenously determined by the team selection decision. experimental data support�although not globally�the direction of our theoretical hypotheses and offer insight into how and why choices deviate from expected behavior. notably, we identify behavioral characteristics that aid decisions along each dimension. deliberative thinking improves all decisions under low uncertainty and improves team selection regardless of the level of uncertainty. risk tolerance improves all decisions in highly uncertain situations and helps managers optimally delegate decision rights in all settings. the results highlight potentially costly ways in which managers seek to simplify their decisions but show how deliberative thinking and risk tolerance can improve performance in a complementary manner.
14. title: social exchange and the reciprocity roller coaster: evidence from the life and death of virtual teams.
authors: hergueux, j�r�me; henry, emeric; benkler, yochai; algan, yann.
abstract: organizations are riddled with cooperation problems, that is, instances in which workers need to voluntarily exert effort to achieve efficient collective outcomes. to sustain high levels of cooperation, the experimental literature demonstrates the centrality of reciprocal preferences but has also overlooked some of its negative consequences. in this paper, we ran lab-in-the-field experiments in the context of open-source software development teams to provide the first field evidence that highly reciprocating groups are not necessarily more successful in practice. instead, the relationship between high reciprocity and performance can be more accurately described as u-shaped. highly reciprocal teams are generally more likely to fail and only outperform other teams conditional on survival. we use the dynamic structure of our data on field contributions to demonstrate the underlying theoretical mechanism. reciprocal preferences work as a catalyst at the team level: they reinforce the cooperative equilibrium in good times but also make it harder to recover from a negative signal (the project dies). our results call into question the idea that strong reciprocity can shield organizations from cooperation breakdowns. instead, cooperation needs to be dynamically managed through relational contracts.
15. title: cooperation with strangers: spillover of community norms.
authors: molina, mario; nee, victor; holm, hakan.
abstract: why do leaders of organizations cooperate with players with whom they may never transact again? such transactions can involve the incentives to exploit the other party because these interactions are not recurrent or embedded in networks. yet, in a market economy, organizational actors learn to cooperate with strangers; otherwise, they risk closure from new ideas and business opportunities outside of their local community. with a large random sample of ceos of manufacturing firms in the yangzi river delta region of china, we measured social norms using vignettes that describe hypothetical situations illustrating the social mechanisms of norm enforcement in respondents' local communities. several years later, in a laboratory-in-the-field experiment, we asked the same participants to play a one-shot prisoner's dilemma (pd) game with a complete stranger. our findings suggest that belief in the reliability of robust norm enforcement is positively associated with a higher probability of cooperation with strangers. to our knowledge, this mixed-method study is the first to explore the relationship between social norms and cooperation with strangers using a large sample of leaders of organizations outside the environment of the laboratory. finally, to explore the generalizability of our behavioral findings, we experimentally manipulated norm vignettes and study the pd game in online experiments with managers in the yangzi river delta region.
16. title: the (bounded) role of stated-lived value congruence and authenticity in employee evaluations of organizations.
authors: deeds pamphile, vontrese; ruttan, rachel lise.
abstract: a growing body of research documents that audiences reward organizations perceived to be authentic with positive evaluations. in the current work, we adopt a mixed-methods approach�using data collected from glassdoor.com and two experiments�to establish that perceptions of authenticity are elicited by perceived congruence between an organization's stated values (i.e., the values it claims to hold) and its lived values (i.e., values members perceive as embodied by the organization), which in turn lead to more positive organizational evaluations. we then explore the conditions under which audiences are less likely to respond favorably to organizational authenticity, finding that the positive effects of stated-lived value congruence on evaluations are attenuated when audiences have a lower preference for stated values. although scholars have often explored whether and how organizations can successfully make themselves appear authentic to reap rewards, our findings suggest that the perceived authenticity that results from stated-lived value congruence may not prove fruitful unless the audience holds a higher preference for an organization's stated values.
17. title: effects of social information on risk taking and performance: understanding others' decisions vs. comparing oneself with others in short-term performance.
authors: pittnauer, sabine; hohnisch, martin; ostermaier, andreas; pfingsten, andreas.
abstract: when a problem leaves decision makers uncertain as to how to approach it, observing others' decisions can improve one's own decisions by promoting more accurate judgments and a better insight into the problem. however, observing others' decisions may also activate motives that prevent this potential from being realized, for instance, ego concerns that prompt excessive risk taking. our experimental study investigates how two features of the social environment influence the effect of observing others' decisions on individual risk taking and performance. we manipulated (1) the psychological distance to others whose decisions could be observed (and thereby the tendency to seek self-enhancing social comparison) and (2) the opportunity for interaction (and thereby for a cumulative effect of any such tendency on decisions over time and for an effect on social information itself). because the two features covary in real-world settings, we designed two treatments corresponding to the two natural combinations. both treatments provided participants with two other participants' period decisions in a multiperiod problem under uncertainty. no new objective information about the problem could be inferred from these decisions. we predicted that participants who observed the decisions of distant others (who had solved the same problem earlier) would perform better than participants in a control sample without any information about others' decisions and that participants who observed the decisions of proximal others (with whom interaction could arise) would take more risk and perform worse than those who observed distant others' decisions. the data corroborate our predictions. we discuss implications for organizational learning.
18. title: a matter of transition: authenticity judgments and attracting employees to hybridized organizations.
authors: radoynovska, nevena; ruttan, rachel.
abstract: category-spanning organizations have been shown to face a number of penalties compared with organizations occupying a single category. the assumption seems to be, however, that organizations spanning the same categories will be evaluated similarly. yet, this is not always the case. we know far less about why evaluations may differ within category-spanners, largely due to existing studies' focus on comparing single-category to category-spanning organizations in equilibrium states at a fixed point in time. instead, this paper investigates audience judgments of organizations as they transition from single to multiple categories. we rely on the empirical setting of social-commercial hybrids�an intriguing context in which to explore category-spanning across market and nonmarket domains associated with distinct values, norms, and expectations. in a series of two experimental studies, we investigate how hybridization affects audience judgments of organizational authenticity and the ability to attract potential employees. we find that across organizational fields associated with nonprofit (communal) and for-profit (market exchange) norms, hybridization�more than hybridity itself�triggers audience cynicism and leads to decreased judgments of authenticity. however, the penalties for hybridizing are only observed when organizations also move away from field-level profit-status norms. the findings contribute to the category-spanning and authenticity literatures by integrating social psychological and organizational theory perspectives to offer a dynamic view of spanning beyond for-profit, market contexts. they also offer empirical support for the theorized multidirectionality of mission drift in hybrid organizations, while suggesting that drifting need not always be detrimental.
19. title: delays impair learning and can drive convergence to inefficient strategies.
authors: rahmandad, hazhir; gary, michael shayne.
abstract: with so many possible choices, why do managers adopt the strategies they do? we identify delays between adopting a strategy and observing the full implications of that choice as a critical factor influencing strategic choices. using a simulation of a service firm, we conduct two behavioral experiments to investigate how delays interact with outcome uncertainty to shape learning, strategy adaptation, and performance outcomes. two mechanisms emerge from how different subject groups perceive, react to, and learn in the presence of delayed feedback and uncertainty. first, when multiple viable strategies exist, longer delays lead both general participants and experienced managers toward alternatives that have rapid returns. when those alternatives are suboptimal, delays may strengthen convergence to inefficient strategies. second, delays and uncertainty may also induce learners to persist with their a priori strategies. managers show larger confidence in their priors and thus underperform general participants when the underlying task structure diverges from those priors. both mechanisms can undermine performance. moreover, delays and uncertainty may reduce heterogeneity in strategies and performance in more dynamic, uncertain environments, leading to convergence as tasks grow more complex and where decision makers possess similar priors.
20. title: converging tides lift all boats: consensus in evaluation criteria boosts investments in firms in nascent technology sectors.
authors: shen, xirong; li, huisi; tolbert, pamela s.
abstract: although previous studies show that the emergence of evaluation criteria for a new technology improves the life chances of well-performing firms, we theorize that consensus in such criteria among technology experts increases investments to all firms in the new sector. we provide a variety of supportive evidence for this claim. first, in an experiment with 80 chinese investors (study 1), we provide evidence of a causal relation between evaluation consensus and investments. we follow this with a second experiment with 412 u.s. participants (study 2), showing that evaluation criteria consensus increases participants' propensity to view a firm as technologically competent and to expect others to favor investing in the firm. analyses of longitudinal archival data on investment in artificial intelligence technology firms in the united states (study 3a) and china (study 3b) support the generalizability of our findings. by exploring the social-cognitive processes that link evaluation criteria consensus to investors' decisions to invest in firms in nascent technology fields, this paper advances the scholarly understanding of the microfoundations of the institutionalization processes in new market sectors.
21. title: to stem the tide: organizational climate and the locus of knowledge transfer.
authors: di stefano, giada; micheli, maria rita.
abstract: prior work has maintained that organizations benefit from managing the transfer of proprietary knowledge. transfer is often advantageous within organizational boundaries but may be harmful across them, because it might erode competitive advantage. hence, we ask: how can organizations affect the direction in which knowledge flows? we examine the role of organizational climate as a governing mechanism for knowledge transfer. our empirical strategy consists of a mixed-methods approach leveraging qualitative and experimental data over two cycles of theory building and theory testing. we start with an extensive field study of the european organization for nuclear research (cern), leveraging the insights from desk research, field observations, 53 interviews, and a laboratory-in-the-field experiment involving 518 physicists. we then provide a causal test of the emerging framework by means of two laboratory experiments with 389 participants. our findings suggest employees are more likely to transfer knowledge to their colleagues when they identify as an integral part of the organization, but they would rather transfer knowledge to outside competitors when their organization encourages them to outperform coworkers. in the presence of an organizational climate that is unfavorable to preventing knowledge spillovers, we argue, organizations can redirect the locus of knowledge transfer internally by acting upon an individual employee's job design and socialization regime.
22. title: how do performance goals influence exploration-exploitation choices?
authors: raveendran, marlo; srikanth, kannan; ungureanu, tiberiu; zheng, george l.
abstract: employees in organizations are frequently subject to performance goals such as sales or publication targets. however, often employees do not know what actions will allow them to meet these goals. to perform such tasks effectively, employees need to explore to quickly learn from experience which among the available alternatives offers the higher reward potential, so that they can concentrate subsequent efforts on exploiting it. prior work models such explore-exploit problems as an adaptive learning process, where employees sequentially sample various options and learn from feedback. however, we currently do not know how performance goals influence this adaptive learning process. we argue that performance goals influence the adaptive learning process by modifying how feedback is perceived. individuals subject to challenging goals are more likely to interpret feedback from poor alternatives as failures. therefore, they quickly develop high belief strength that the inferior alternative is worse than the superior alternative, enabling them to reduce "useless exploration," but also making them slow to adapt to environmental shocks. we test our predictions in a series of laboratory experiments and find that decision makers subject to challenging goals exploit more (relative to those with moderate goals). we also show that such an exploitation focus, while beneficial in stable environments, is detrimental in unstable ones. our finding that challenging performance goals improve performance in learning tasks stands in contrast to prior findings that such goals inhibit performance in search tasks, an insight that warrants further study to improve our understanding of goal setting in the knowledge economy.
23. title: authenticity-based connections as organizational constraints and the paradox of authenticity in the market for cuban cigars.
authors: verhaal, j. cameron; hahl, oliver; fandl, kevin j.
abstract: we explore the organizational consequences that different authenticity claims carry for products and the firms that produce them. to do so, we build on the notion of an authenticity paradox�the idea that seeking to capture demand that is created by perceived authenticity can undermine the very authenticity that generated the demand in the first place. using an experimental approach, we argue and show that provenance-based claims of authenticity (e.g., location of origin) constrain a firm spaciotemporally, limiting their ability to expand production in ways that might be economically rational but would undermine this authenticity claim. we further show there is no penalty (or there is a reduced penalty) when the claim is not explicitly spaciotemporal, and is instead based on an association to an iconic individual broadly connected to that place. we show how these types of connections help firms respond to the authenticity paradox by allowing them more freedom to expand production to meet the increased demand without undermining the original claims to authenticity. as a result, this paper's key contribution is in moving beyond explaining how perceived authenticity benefits organizations and instead, explores how different claims to authenticity can constrain a firm's ability to capture the value that it has created from authenticity.
24. title: social movements, collective identity, and workplace allies: the labeling of gender equity policy changes.
authors: wang, cynthia s.; whitson, jennifer a.; king, brayden g; ramirez, rachel l.
abstract: social movements seek allies as they campaign for social, political, and organizational changes. how do activists gain allies in the targeted institutions they hope to change? despite recognition of the importance of ally support in theories about institutional change and social movements, these theories are largely silent on the microdynamics of ally mobilization. we examine how the labeling of organizational policies that benefit women influences potential workplace allies' support for these policies. we theorize that one barrier to mobilizing workplace allies is a misalignment of the labels that activists use to promote new policies and employees' affiliation with collective identities. we conducted five experiments to test our hypotheses and 26 qualitative interviews to provide illustration of our core concepts. we demonstrate that employees high in feminist identification are more likely to support feminist-labeled (feminist and #metoo) than unlabeled policies, whereas those low in feminist identification are less likely to support feminist-labeled than unlabeled policies (studies 1�3). however, we find that participants for whom organizational identification was high (whether measured or manipulated) and feminist identification was low supported organizationally labeled policies more than feminist-labeled polices (studies 4 and 5). this illustrates that policies whose aims may not align with one collective identity can still garner support by activating another relevant collective identity. within our studies, we provide evidence that these effects are mediated via feelings of pride in the organization (and not fear or anger), suggesting that positive emotions are a central mechanism in mobilizing workplace allies.
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