Experienced Executives Research Articles

The Impact of prototyping on the survival chances of digital early-stage startups: Findings and insights from explorative expert interviews

The products of digital entrepreneurs are highly innovative, and their business models contribute to the prosperity and further development of the economy and society. However, studies indicate that most of all startups fail, particularly during the early stages of their business journey Prototyping as part of Lean Startup or Business Model Testing approaches, can assist digital early-stage startups in navigating uncertainty and achieving successful product launches. However, these methods are applied very individually and there is little empirical research on best practices. We therefore conducted 65 explorative expert interviews and asked successful startups about their prototyping practices. Our results include learnings on the prototyping process and the testing format, the role of the founding team during prototyping practices, the customer focus and the role of networks. Our study adds important details to theory and practice of the innovation and prototyping processes of digital early-stage startups. Our results offer actionable advice and guidance to any current and potential entrepreneur, but especially to first-time founders and less experienced executives in early stage-startups. Additionally, our contribution enhances the theoretical understanding of the Lean Startup approach and prototyping practices.

Authentic learning through the case method in customized executive programs in Latin America

The case method (CM) helps executives develop their problem-solving skills by exposing them to real-life situations in which they have to look for similarities and differences with respect to their professional contexts. This study seeks to explain how the analogies generated by the CM favor the authentic learning of experienced executives in custom executive programs (CEPs). An analogy is an explicit, nonliteral comparison between two objects, or sets of objects, that links their structural, functional, and causal similarities. Our comparative-case study, based on nine CEPs across six Latin American countries, seeks to identify the key factors that enable the effectiveness of the CM in authentic executive learning. Our results suggest that a CEP's success, i.e., its ability to achieve the analogical knowledge transfer that authentic learning requires, in part depends on the CEP's selection of cases and its appropriate delivery. Our analysis reveals two critical drivers of CM success in a CEP: choosing cases that enable analogies according to the type of business issues and constructing a CM narrative that illustrates the analogies of each case.

The military imprint: The effect of executives’ military experience on firm pollution and environmental innovation

This study focuses on military experienced executives (CEO and chairman) and their effect on two types of firm environmental strategy: firm pollution and environmental innovation. From the perspective of imprinting theory, we find that executives with military imprint, which, so we argue, instills a sense of following rules and stewardship for the collective, negatively relate to firm pollution and positively relate to firm environmental innovation. The strength of military imprint at its formation is shaped by whether focal executives had a military officer rank. In addition, working in an environment with strong pro-military culture sustains and even strengthens the military imprint. Analyses of data from 6,664 firm-year observations of heavily polluting industries from Chinese listed firms between 2013 and 2017 largely support our hypotheses (see Table 4 for overview of various tests). Overall, our efforts of extending imprinting theory to leadership literature suggest that the imprinting effect of military experience persists in executives’ decision-making processes. Furthermore, this study contributes to imprinting research by emphasizing the importance of considering imprint formation and imprint persistence.

Learning by Analogy: The Case Method in Customized Executive Programs in Latin America

The Case Method (CM) helps executives develop their problem-solving skills by exposing them to real-life situations, challenging them to look for similarities and differences with respect to their professional contexts. This study seeks to explain how the analogies and metaphors generated by the CM capitalize on the authentic learning of experienced executives in Custom Executive Programs (CEPs). An analogy is an explicit, non-literal comparison between two objects, or sets of objects, that describes their structural, functional, and causal similarities. Our comparative-case study, conducted on nine CEPs across six Latin American countries, seeks to identify the key factors that enable the CM effectiveness in authentic executive learning. Our results suggest that the success of a CEP depends on the dynamics of co-creation between firms and business schools, but also on the creation and use of analogies and metaphors through the CM. Our analysis reveals three critical factors that determine the success or failure of the CM in a CEP: the visualization of analogies and metaphors as an authentic learning tool, its influence on the speed of executives learning, as well as their relevance during the CM delivery.

Recruiting Dark Personalities for Earnings Management

Prior research indicates that managers’ dark personality traits increase their tendency to engage in disruptive and unethical organizational behaviors including accounting earnings management. Other research suggests that the prevalence of dark personalities in management may represent an accidental byproduct of selecting managers with accompanying desirable attributes that fit the stereotype of a “strong leader.” Our paper posits that organizations may hire some managers who have dark personality traits because their willingness to push ethical boundaries aligns with organizational objectives, particularly in the accounting context where ethical considerations are especially important. Using several validation studies and experiments, we find that experienced executives and recruiting professionals favor hiring a candidate with dark personality traits into an accounting management position over an otherwise better-qualified candidate when the hiring organization faces pressure to manage earnings. Our results help to illuminate why individuals with dark personality traits may effectively compete for high-level accounting positions.

Recruiting Dark Personalities for Earnings Management

Prior research indicates that managers’ dark personality traits increase their tendency to engage in disruptive and unethical organizational behaviors including accounting earnings management. Other research suggests that the prevalence of dark personalities in management may represent an accidental byproduct of selecting managers with accompanying desirable attributes that fit the stereotype of a “strong leader.” Our paper posits that organizations may hire some managers who have dark personality traits because their willingness to push ethical boundaries aligns with organizational objectives, particularly in the accounting context where ethical considerations are especially important. Using several validation studies and experiments, we find that experienced executives and recruiting professionals favor hiring a candidate with dark personality traits into an accounting management position over an otherwise better-qualified candidate when the hiring organization faces pressure to manage earnings. Our results help to illuminate why individuals with dark personality traits may effectively compete for high-level accounting positions.

Executive Gender Pay Gap: The Role of Employer Learning and Regulatory Interventions

This paper examines the role of information and regulatory interventions in mitigating the executive gender pay gap. We find female executives are paid about 34 per cent less compared to equivalent males from the same cohort, which falls by half over tenure within the company, but remains systematically significant throughout. The gender pay gap is the highest for young female executives and in the financial sector. Both demand-side (board gender quotas) and supply-side (family policies) regulatory interventions are associated with a lower gender gap in executive pay. Board gender quotas are associated with lower gender pay gap for experienced female executives in the highest age bracket. In contrast, supply-side interventions are associated with lower gender pay gap for the youngest female executives. Our results have important implications for the relative effectiveness of public policies that aim to reduce gender imbalance in corporate leadership.

Are long-tenured CEOs rent seekers? Analysis of cash compensation and post disposal performance

Are typical long-tenured CEOs rent-seekers? Do compensation committees consider undiversified risk for veteran executives and design their cash pay to limit their risk exposure? Because an exit decision requires board approval, discontinued operations provide a unique setting to analyze intervention by compensation committees. Seasoned managers should require less oversight because their ability has been revealed over time. However, as CEOs advance in their careers, they are more likely to acquire power to influence board decisions. They are also more risk averse and potentially more myopic than younger CEOs because they hold a large undiversified portfolio. Lucrative labor markets for talented retired executives can incentivize long-tenured CEOs to maintain a solid reputation. I reexamine the previously reported differential sensitivity of CEO cash compensation to positive or negative-valued disposal decisions, which can be viewed as rent-seeking. I show that cash pay for veteran CEOs are shielded from the effect of both negative and positive-valued discontinued operations, suggesting that compensation committees alter their cash pay. This evidence does not support rent-seeking. I also find strong evidence that long-tenured CEOs make better exit decisions to improve future firm performance than less experienced executives.

Playing Favorites? Industry Expert Directors in Diversified Firms

We examine the influence of outside directors’ industry experience on segment investment, segment operating performance, and firm valuation for conglomerates. Given board composition is endogenous, we instrument for the presence of industry expert directors using the supply of experienced executives near conglomerate firms’ headquarters. We find that industry expert representation on the board causes increased segment investment. Consistent with experienced directors playing favorites rather than acting as dispassionate advisors, segment profitability (firm value) is lower for segments (firms) with industry expert outside directors. We do not find analogous negative profitability or valuation effects of director experience for single-segment firms.

Influences of international orientation and export commitment on the export performance of emerging market SMEs

In the past few years, the internationalisation of small and medium-sized firms (SME) has accelerated, evolving from a slow and gradual process. Many studies indicate that the faster pace of internationalisation of SMEs may be related to more experienced executives engaging in international activities. The international orientation of SME managers seems to represent a basic condition for the export performance of SMEs. Other studies indicate that the export performance of SMEs would be influenced by the commitment of organisational resources to export activities. Based on a survey involving 540 Brazilian exporting SMEs, this paper aims to evaluate the role of international orientation and export commitment in export performance. The results indicate that international orientation does not directly affect export performance but rather suggests an influence on the commitment to export activity of SMEs. We found that SME export commitment influences export performance.

ВОЗМОЖНОСТИ АДАПТИВНОЙ МОДЕЛИ AGILE ДЛЯ МЕНЕДЖМЕНТА

The article studies urgent economic processes that occur as a response to changes in the global economy: a decay of authoritarian management, the revival of team spirit, termination of hierarchy when there arise challenging holacratic systems, network organizations, flat structures, and agile methods. New adaptive agile method is becoming more popular in various industries, activities and even in the top management of large companies and government departments. Values, principles, methods, and advantages of agile methods are completely opposite to those adapted in the authoritarian management. In adaptive models employees are pulled out of isolated departments and implemented into composite self-managed and customer-oriented groups, which both encourages profitable growth and helps to educate a new generation of experienced executives. The article specifies the conditions that are most suitable for adaptive models; it lists the principles of adaptive models: "People first, processes and tools follow"; "Respond to changes, don’t stick to the plan"; "Use the working prototypes and deliver product as often as possible, don’t sink in paperwork"; "Cooperation with clients, not a rigid contract”. The article justifies the point when use of adaptive agile methods by Russian managers eliminates their inherent authoritarianism and creates favorable conditions for introducing the innovations in management.

Autozone, Inc.

The case can be taught in an introductory corporate finance course or to more experienced students or executives to spur a discussion about share repurchases and corporate financial strategies in general. If used in an introductory course, the case is most effective if preceded by a traditional dividend class. It follows a portfolio manager of Johnson & Associates, Mark Johnson, who is reviewing his holdings, including his position in AutoZone in early 2012. A prominent shareholder, Edward Lampert, had begun liquidating his position in AutoZone, and Johnson is concerned that Lampert's reduced position could lead the company to stop using share repurchases as a method of distributing cash flows to shareholders. The case lists a number of alternative uses for the cash flows and asks students to assume Johnson's role as an analyst and assess the likely impact of those alternatives on AutoZone's stock price.

Experienced Executives' Views of the Effects of R&D Capitalization on Reputation-Driven Real Earnings Management: A Replication of Survey Data from Seybert (2010)

ABSTRACTThis paper replicates the results of the survey of experienced executives reported in Section IV of Seybert (2010). The survey data from the originally published article were retracted due to concerns about the source of the data (see Seybert 2015). I survey 79 experienced executives to elicit their beliefs about reputation-driven real earnings management. Participants indicate that a manager would be more likely to continue a failing project, and that project abandonment would have a greater negative impact on the manager's reputation concerns and future prospects at the firm, when R&D is capitalized. Consistent with capital market pressures identified in prior research, executives believe that abandoning a failing project would have a greater negative impact on stock price when R&D is capitalized, and they personally recommend continuing such a project in order to avoid missing the consensus analysts' forecast. These findings complement the experimental results in Seybert (2010), and while they replicate the survey results contained therein, they are not an endorsement of the veracity of the original survey data.

Playing Favorites? Industry Expert Directors in Diversified Firms

We examine the influence of outside directors’ industry experience on segment investment, segment operating performance, and firm valuation for conglomerates. Given board composition is endogenous, we instrument for the presence of industry expert directors using the supply of experienced executives near conglomerate firms’ headquarters. We find that industry expert representation on the board causes increased segment investment. Consistent with experienced directors playing favorites rather than acting as dispassionate advisors, segment profitability (firm value) is lower for segments (firms) with industry expert outside directors. We do not find analogous negative profitability or valuation effects of director experience for single-segment firms.

Experienced Executivess Views of the Effects of R&D Capitalization on Reputation-Driven Real Earnings Management: A Replication of Survey Data from Seybert (2010)

This paper replicates the results of the survey of experienced executives reported in Section IV of Seybert (2010). Seybert retracted the survey data from the originally published article due to concerns about the source of the data. I survey 79 experienced executives to elicit their beliefs about reputation-driven real earnings management. Participants indicate that a manager would be more likely to continue a failing project, and that project abandonment would have a greater negative impact on the manager’s reputation concerns and future prospects at the firm, when R&D is capitalized. Consistent with capital market pressures identified in prior research, executives believe that abandoning a failing project would have a greater negative impact on stock price when R&D is capitalized, and they personally recommend continuing such a project in order to avoid missing the consensus analysts’ forecast. These findings complement the experimental results in Seybert (2010), and while they replicate the survey results contained therein, they are not an endorsement of the veracity of the original survey data.

Perceived Legitimacy of Executives Bonuses in Time of Global Crisis: A Mapping of Portuguese People’s Views

The present study aimed to explore and map the views of Portuguese laypersons regarding the legitimacy of bonuses for senior executives. Two hundred eight participants, with various levels of training in economics, were presented with a number of concrete scenarios depicting the circumstances in which senior executives have received bonuses of variable amounts, and they were asked to indicate the extent to which such bonuses may be considered as legitimate. The scenarios were created by varying four factors likely to have an impact on people’s views: (a) the extent to which the objectives fixed by the company have been met or not, (b) the global economic context in which the company has performed, (c) the availability of experienced senior executives in the sector under consideration, and (d) the amount of money that has been awarded, in terms of both the euros and multiples of the average worker’s pay. Five qualitatively different personal positions were found. The most common positions were that executive bonuses were either never legitimate (30 %) or not very legitimate (25 %). People without any background in economics were more likely to hold these views than people with a background in economics. The remaining 45 % of the participants supported the awarding of bonus, but their support was conditional, and the main condition was the extent to which the company’s objectives were met. Thus for most participants, the practice of awarding extra pay to senior executives was either (a) never legitimate, or (b) legitimate only when the company’s objectives have been attained, or (c) legitimate only when, even in a time of economic crisis, the company’s objectives have been surpassed.

Effect of gender, age and work experience on emotional intelligence in Indian perspective

This paper aims to explore the relationship between emotional intelligence (EI) and the demographic variables such as gender, age and work experience. The research was carried out in various organisations in Delhi NCR. A questionnaire design was used to explore whether there was an association between the different demographic variables and EI. The analysis found statistically significant association of gender and work experience with EI. Female and more experienced executives were found to have more EI score as compared to male and less experienced executives respectively. However, age and EI were found to have no association in between. The results of the study have been discussed and interpreted in light of the findings of the previous researchers. These findings have significant implications for the development of HR skills and behaviours at workplace.

Reducing Biases in Cross-Cultural Top Management Team Decision-Making Processes

Cross-cultural top-management-teams (cc-TMTs) are typically comprised of rational individuals. Yet cc-TMTs featuring uniformly wise and experienced executives often make irrational decisions (i.e., choices incompatible with reason or logic). Even most executives acknowledge this is true. Behavioral economics suggests a primary reason why is that iterative combinations of cultural and cognitive biases invariably arise and interact in cc-TMT settings. As they arise, these biases often undermine the rationality of decision-making processes used inside teams. The impact of such biases surely intensifies if they remain unacknowledged - and thus unmanaged. From an example of Sino and Anglo cc-TMT interactions, six guidelines intended to reduce bias are developed. These approaches, and the analysis preceding them, explain the nature and scope of these cultural and cognitive biases, how and why they arise, and what actions executives might initiate to negate these biases’ potentially irrational influence on decision-making processes by consolidating divergent biases to secure mutual gain within cc-TMT settings. Cultural and cognitive biases hardly explain everything, but they explain enough of what happens inside cc-TMTs that ignoring their influence is foolish. This article offers a logical footing from which to begin this important task.

Study on the Guidance Consultants’ Training Needs, Based on the ‘Support Plan for Socially Vulnerable Groups’ in Greece

The present study attempts to investigate the training needs (in terms of guidance, methodology, responsiveness to specific group - target) of Vocational Consulting, who worked in the "Plan Support of Socially Vulnerable Groups," held by the Prefectural Committee for Adult Education (NELE) Larissa from September 2006 until September 2008. Firstly, it investigates the knowledge of the Executive Advisory body to the meaning and role of the Advisory as a science. Subsequently, it investigates the awareness of training needs specifying areas and linking those needs with the requirements of the group and the target which is supported. The analysis of the results and their connection to the research questions suggests that the Consultants consider their role especially important, realizing the essence and importance of the process and, moreover, that a further training in counselling skills is needed. This is a view expressed both by the most experienced executives, who have been involved in the process of training at least once, and the younger executives, who have not ever attended a training program in counselling.

Focus induced tunnel vision in managerial judgment and decision making: The peril and the antidote

Managers often must assess singular strategic options. Four studies of such assessments demonstrate a tunnel vision effect: Focal managerial options often are favored in an evidentially unjustifiable manner. Study 1 concerns new product development, and demonstrates that a prototype that has become focal tends to be judged overly favorably, and is chosen for launch with unwarranted enthusiasm. Study 2 shows that this tunnel vision effect generalizes to judgments and decisions about general strategy. Study 3 focuses on the information search patterns underlying the effect, and Study 4 replicates the tunnel vision effect among experienced executives, and demonstrates the utility of a debiasing procedure. Data in all of the studies implicate selective processing as the driver of the tunnel vision effect, and further understanding of how selective processing affects choice. Several alternative operationalizations of the empirically tested debiasing procedure are discussed.