MIT Sloan School Research Articles

The Place to Be: Exploring the Role of the Micro-geography of Office Space Inside Organizations

As office relocations, open-office layouts and free-seating arrangements are quickly becoming a common managerial practice aimed at improving the work-flow, collaboration and degree of innovation inside firms and organizations, the organizational theory literature has lagged behind in the understanding of the theoretical and practical implications of these practices. Such understanding hinges on a careful analysis of the micro-geography of office spaces, or of how physical distance and co-location among employees and colleagues impacts individual and organizational outcomes. The goal of this symposium is thus to stimulate this theoretical exploration, featuring four empirical papers that unravel how micro-geography and physical proximity affects important organizational outcomes inside organizations – such as learning and technology adoption, cultural fit, collaboration effectiveness and the structure of informal communication patterns. After the presentations, Prof. Olav Sorenson will provide a critical assessment of the presented work and lead a Q&A session and open group discussion on the future of this theoretical stream. Microgeography, technology adoption, and entrepreneurial learning Presenter: Christian Catalini; MIT Sloan School of Management Presenter: Alexander Oettl; Georgia Institute of Technology Presenter: Maria Roche; Georgia Institute of Technology Copresence and culture: How physical collocation shapes interpersonal cultural alignment Presenter: Lara Yang; - Presenter: Sameer B. Srivastava; U. of California, Berkeley Presenter: Amir Goldberg; Stanford U. Where you sit matters: Physical collocation and informal interactions in formal organizations Presenter: Ramon Lecuona; Duke U. Presenter: Jonathon N. Cummings; Duke U. Being there: Exploring the impact of physical and social space on collaboration effectiveness Presenter: Manuel Sosa; INSEAD Presenter: Massimo Maoret; IESE Business School

Machine Learning and Artificial Intelligence in Strategy Research

The introduction and spread of artificial intelligence and machine learning has made possible the mass-automation of many aspects of management. Yet the implications of this change for both firms and individuals are only now beginning to be explored in strategic management and related research. In particular, several important issues relating to the interface between humans and artificial intelligence are beginning to manifest, including the role of complementarities between existing human capital and the machine learning/artificial intelligence technologies, the role of artificial intelligence relative to human judgement, and if and how this role varies across contexts. In this symposium, we bring together a collection of four papers that attempt to address some of these issues. Together, these complementary presentations will shed new light on some of the core issues that firms are likely to face as machine learning and artificial intelligence become increasingly important. Different Strokes for Different Folks: Complementarities between Human Capital and Machine Learning Presenter: Prithwiraj Choudhury; Harvard U. Presenter: Evan Penniman Starr; U. of Maryland, College Park Machine Intelligence vs. Human Judgement in New Venture Finance Presenter: Christian Catalini; MIT Sloan School of Management Presenter: Ramana Nanda; Harvard U. Presenter: Chris Foster; Harvard Business School Using Artificial Neural Networks to Predict Firm Growth: Insights from a Prediction Exercise Presenter: Natarajan Balasubramanian; Syracuse U. Presenter: Akshay Anjani; Syracuse U. Presenter: Mohan Chilukuri; Syracuse U. Go West, Young Firm: The Value of Entrepreneurial Migration for Startups and Founders Presenter: Jorge Guzman; MIT Sloan School of Management

AI, Machine Learning & Deep Learning Risk Management & Controls: Beyond Deep Learning and Generative Adversarial Networks: Model Risk Management in AI, Machine Learning & Deep Learning

The current paper proposes how model risk management in operationalizing machine learning for algorithm deployment can be applied in national C4I and Cyber projects such as Project Maven. It builds upon recent leadership of global Management and Leadership industry executives for AI and Machine Learning Executive Education for MIT Sloan School of Management and the MIT Computer Science and Artificial Intelligence Laboratory (CSAIL) and invited presentations at Princeton University. After building understanding about why model risk management is most crucial to robust AI, Machine Learning, Deep Learning, and, Neural Networks deployment, it introduces a Knowledge Management Framework for Model Risk Management to advance beyond ‘AI Automation’ to ‘AI Augmentation.’

INVITED EDITORIAL COMMENT

1. Mark Kritzman 1. is the CEO of Windham Capital Management in Boston, MA, and a senior lecturer at MIT Sloan School of Management in Cambridge, MA . (kritzman{at}mit.edu) TOPICS: [Financial crises and financial market history][1], [portfolio construction][2] As is true with most scientific

INVITED EDITORIAL COMMENT

1. Stephen A. Ross 1. is the Franco Modigliani Professor of Financial Economics at MIT Sloan School of Management and managing partner at Ross, Jeffrey & Antle LLC (RJA). (sross{at}mit.edu) We’re in the middle of a frenzy of factor-focused investing. It seems as though every other article

Contributors

Previous articleNext article FreeContributorsPDFPDF PLUSFull Text Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinked InRedditEmailQR Code SectionsMoreRourke L. O’Brien, Ph.D., is assistant professor at the LaFollette School of Public Affairs at the University of Wisconsin—Madison. He is an affiliate of the Center for Demography and Ecology and the Institute for Research on Poverty. From 2012 to 2014 he served as a senior policy advisor at the U.S. Department of the Treasury.Kiyoteru Tsutsui is associate professor and associate chair of the Department of Sociology and director of the Donia Human Rights Center and of the Center for Japanese Studies at the University of Michigan, Ann Arbor. His research has examined the evolution of global human rights and its impact on local politics, using cross-national quantitative analyses and qualitative case studies. His current research focuses on changing provisions about minority incorporation in all national constitutions in the world since the 18th century.Kwai Hang Ng is associate professor of sociology at the University of California, San Diego. His research interests include legal institutions, legal language, and culture.Xin He is professor of law at the City University of Hong Kong. His research interests focus on examining the operation of the Chinese legal systems from a law and society perspective.Andrew G. Walder is the Denise O’Leary and Kent Thiry Professor in the School of Humanities and Sciences, and senior fellow in the Freeman Spogli Institute for International Studies. A political sociologist, Walder has long specialized on the sources of conflict, stability, and change in communist regimes and their successor states. His current research focuses on popular political mobilization in late-1960s China and the subsequent collapse and rebuilding of the Chinese party-state.Qinglian Lu is a Ph.D. candidate in sociology at Stanford University. Her research interests include social networks and organizations and economic sociology.Mikołaj Jan Piskorski is professor of strategy and innovation at the Institute for Mangement Development in Lausanne, Switzerland. His research examines how people interact on social media platforms. His recent book is Social Strategy: How We Profit from Social Media (Princeton University Press, 2014).Andreea D. Gorbatâi is assistant professor at the Haas School of Business, University of California, Berkeley. She received her Ph.D. from the joint program in Organizational Behavior and Sociology at Harvard University. Her research focuses on collaborative production and new forms of organizations and organizing. Her current projects employ computational methods such as topic modeling, sentiment analysis, and deep learning techniques to explain variations in behavior and outcomes among participants in online marketplaces for entrepreneurial funding and financial exchanges.Pierre Azoulay is a professor at the MIT Sloan School of Management, and a research associate at the National Bureau of Economic Research. His research focuses on the economic study of scientific institutions and their impact on the rate and direction of technological change.Christopher C. Liu is assistant professor of strategy at the Rotman School of Management at the University of Toronto. His research explores spatial networks and how geography shapes communication patterns and market interactions. Empirical settings for his work have ranged from biotechnology firms to the U.S. Senate Chamber. Chris also has a long-standing interest in scientists, innovation, and productivity.Toby E. Stuart is at the University of California, Berkeley. His current research projects investigate the determinants of entrepreneurship in the science- and technology-based economy and the sociology of prizes in the academic sciences. Previous articleNext article DetailsFiguresReferencesCited by American Journal of Sociology Volume 122, Number 4January 2017 Article DOIhttps://doi.org/10.1086/691273 © 2017 by The University of Chicago. All rights reserved.PDF download Crossref reports no articles citing this article.

Negotiations Theory and Ombuds Practice

Negotiation JournalVolume 31, Issue 4 p. 419-423 The Evolution of the Behavioral Theory in the Workplace Negotiations Theory and Ombuds Practice Mary Rowe, Mary RoweMary Rowe was the ombudsperson at the Massachusetts Institute of Technology in Cambridge, Massachusetts from 1973 to 2014. She has been an adjunct professor of negotiation and conflict management at the MIT Sloan School of Management since 1985. Her e-mail address is mrowe@mit.edu.Search for more papers by this author Mary Rowe, Mary RoweMary Rowe was the ombudsperson at the Massachusetts Institute of Technology in Cambridge, Massachusetts from 1973 to 2014. She has been an adjunct professor of negotiation and conflict management at the MIT Sloan School of Management since 1985. Her e-mail address is mrowe@mit.edu.Search for more papers by this author First published: 23 October 2015 https://doi.org/10.1111/nejo.12119Citations: 4 Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat Citing Literature Volume31, Issue4October 2015Pages 419-423 This article also appears in:A Collection of Mary Rowe's Negotiation Journal Articles RelatedInformation

Collaborative action research to reduce persistently long patient wait times in two public clinics in Western Cape, South Africa

Abstract Background Lengthy waiting times are problematic for patients and health-care workers alike. In clinics and hospitals across Africa, persistently long wait times have been linked to poor medication compliance, skipped appointments, delayed implementation of clinical programmes, and low healthcare worker morale. This collabortiave action research study explores practical methods to reduce patient waiting time in high-volume urban primary care public health facilities in South Africa. Methods This study took place in three phases between November, 2013, and July, 2014, in two public-sector primary care clinics in Cape Town, South Africa. Clinic A had an average of 18 000 patients per month and aimed to reduce waiting times in the pharmacy. Clinic B saw 13 000 patients per month and sought waiting time reductions in all departments. The study team included clinic leaders and frontline staff, South African and US researchers, and graduate business students from the Global Health Lab at MIT Sloan School of Management. During phase one, collaboration members used discussions and site visits to define clinic processes, understand patient visit patterns, and identify bottlenecks using baseline waiting time data and observation. In phase two, students and researchers worked with staff at the clinics to develop readily implementable operational improvements to address bottlenecks. In phase three, clinic leaders and frontline staff maintained many changes, and also generated and tested new ideas to reduce patient wait time. We recorded waiting times at both facilities in phases one and three and used t tests to compare them. Findings In clinic A, mean pharmacy waiting time was reduced from 129 min (median 86 min) to 102 mins (52 min; p Interpretation Waiting times in busy primary care facilities are influenced by many structural and relational factors. Amid this complexity, the action research collaboration demonstrated that simple changes generated in situ can help address the vexing challenge of persistent lengthy wait times and trigger further functional changes. Although follow-on research is needed to assess ongoing sustainability and broader applicability, our findings reveal the promise of short-term, inclusive collaboration involving frontline health workers, facility leadership, and targeted external support to bring about beneficial change. Funding This study used resources contributed by the research team and Global Health Lab, MIT Sloan School of Management.

Introduction: Symposium on Convergence, Interconnectedness, and Crises: Insurance and Banking

A conference on Convergence, Interconnectedness, and Crises: Insurance and Banking was held at Temple University in Philadelphia from December 8 to 10, 2011. The conference was cosponsored by Temple University's Advanta Center for Research on Financial Institutions, SCOR Group, The Canada Research Chair in Risk Management, HEC Montreal, CIRPEE (Quebec, Canada), and The Journal of Risk and Insurance. Seventeen research papers and two keynote addresses were presented at the conference, and six papers from the conference are published in this symposium. The conference key note addresses were delivered by Denis Kessler, Chairman and CEO of SCOR Group, and Andrew W. Lo, Harris & Harris Group Professor of Finance, MIT Sloan School of Management. The Financial Crisis of 2007-2010 revealed significant interrelationships both within and between the insurance and banking industries that contributed significantly to the magnitude of the crisis and the resulting government bailout. The need for additional research on interconnectedness provided the motivation for the Conference. The objective was to help minimize or avoid future crises through careful scholarly explorations of these interconnections. Researchers from around the world spent 3 days delving into numerous insurance and banking topics, ranging from systemic risk to implications of financial services mergers to extreme correlations within the insurance industry. The introductory article in this symposium, by Denis Kessler, is based on his keynote speech at the Conference. In his article, Kessler argues that the (re)insurance industry is not a significant source of systemic risk. Kessler emphasizes that (re)insurance failures are very rare, orderly, long-term processes, unlike banking crises, which are short term and associated with panics. He points out that a failing (re)insurance company does not terminate its contracts overnight but continues to settle claims. Thus, (re)insurance failures do not require sudden liquidation of assets and liabilities, as in the case of many banking failures. One reason that banks are susceptible to systemic risk is the interbank lending market, where risk is strongly concentrated due to a network of very short-term, bilateral exposures. In contrast, the structure of the (re)insurance market is hierarchical, in the sense that primary insurers cede a single risk to many other reinsurers, which in turn often cede it to different retrocessionnaires. In contrast to retail bank deposits and wholesale market bank funding, (re)insurance reserves are not instantaneously puttable and thus cannot be redeemed on demand by policyholders. Also unlike banks, which tend to borrow short term and lend long term, (re)insurers' asset and liability maturities tend to be well matched. Therefore, regulators should resist the temptation to put (re)insurers in the same category as banks and other financial institutions. Neither insurers nor reinsurers create significant systemic risk. Therefore, Kessler argues, designating (re)insurers as systemically important financial institutions (SIFIs) would reduce insurers' and reinsurers' profitability at the expense of solvency. The second article in the symposium is a macro-overview analysis of systemic risk in the insurance industry by J. David Cummins and Mary A. Weiss. Their article examines the potential for the U.S. insurance industry to cause systemic risk events that spill over to banking or other segments of the economy. They examine primary indicators of systemic risk as well as contributing factors that exacerbate vulnerability to systemic events. The evaluation of systemic risk is based on a detailed financial analysis of the insurance industry, its role in the economy, and the interconnectedness of insurers. Insurers are shown to have very low default risk and low susceptibility to financial crises. However, life insurers have higher leverage and more exposure to asset-backed securities and illiquid privately placed bonds than property-casualty (P-C) insurers. …

Interactive web‐based simulations for strategy and sustainability: The MIT Sloan LearningEdge management flight simulators, Part II

AbstractThe MIT Sloan School of Management has created a set of interactive, web‐based management flight simulators to teach key ideas in business, strategy, sustainability and related fields. The simulations are freely available through the MIT Sloan LearningEdge portal (mitsloan.mit.edu/LearningEdge). In these notes I describe six simulations available as of 2014. Part I describes Salt Seller (a multiplayer commodity pricing simulation); Eclipsing the Competition (learning curves, using the solar photovoltaic industry as the example); and Platform Wars (competition in the presence of network externalities using the video game industry as the context). Part II describes Fishbanks (the Tragedy of the Commons in the context of renewable resource management, updating the classic game by Dennis Meadows); CleanStart (building a startup firm, with clean tech as an example); and World Climate (an interactive role play of global climate negotiations). Each simulator enables participants to learn experientially about important concepts in management, strategy or sustainability. Each is grounded in a particular industry or firm, and comes with original case studies or briefing material describing the strategic challenges in these settings. Through these simulations, students, executives, policymakers and others can explore the consequences of different strategies so they can learn for themselves about the complex dynamics of important issues. I describe their purpose and use, illustrate their dynamics, and outline the instructor resources available for each. Copyright © 2014 System Dynamics Society

Challenges in Global Financial Services

This is an edited transcript of the proceedings of the Yale Law School Center for the Study of Corporate Law’s Sullivan & Cromwell Conference on Challenges in Global Financial Services, which was held on September 20, 2013. The conference brought together policymakers, legal practitioners, members of the financial community, and academics from finance, economics and law to discuss the current challenges in the organization and regulation of global financial services. The roundtable consisted of four panel discussions. The first panel considered “Bank Capital and Liquidity Requirements.” Panelists were Stijn Claessens, Assistant Director, Research Department, International Monetary Fund; Michael H. Krimminger, Partner, Cleary Gottlieb Steen & Hamilton LLP and former General Counsel, Federal Deposit Insurance Corporation (FDIC); Andrew Metrick, Deputy Dean for Faculty Development & Michael H. Jordan Professor of Finance and Management, Yale School of Management; and Roberta Romano, Sterling Professor of Law and Director, Yale Law School Center for the Study of Corporate Law. Ian Ayres, William K. Townsend Professor of Law, Yale Law School, moderated. The second panel addressed “Bank Transparency and the Financial Crisis.” Panelists were Robert J. Giuffra, Jr., Partner, Sullivan & Cromwell LLP; Gary B. Gorton, Frederick Frank Class of 1954 Professor of Management and Finance, Yale School of Management; Henry T. C. Hu, Allan Shivers Chair in the Law of Banking and Finance, University of Texas Law School, and former Director, Division of Risk, Strategy, and Financial Innovation, U.S. Securities and Exchange Commission; and Frederick Schauer, David and Mary Harrison Distinguished Professor of Law, University of Virginia School of Law. Donald Kohn, Senior Fellow, Brookings Institution and former Vice Chairman, Federal Reserve Board, moderated. The third panel focused on the “Accountability and Structuring of Systemically Important Financial Institutions (SIFIs).” Panelists were H. Rodgin Cohen, Senior Chairman, Sullivan & Cromwell LLP; Edward J. Kane, Professor of Finance, Boston College; Andrew W. Lo, Charles E. and Susan T. Harris Professor, MIT Sloan School of Management and Director, MIT Laboratory for Financial Engineering; and John F. Simonson, Deputy Director for Systemic Resolution Planning and Implementation, Office of Complex Financial Institutions, FDIC. The moderator was Henry B. Hansmann, Oscar M. Ruebhausen Professor of Law, Yale Law School. The fourth panel on “Cross-Border Resolution” had the following panelists: James W. Giddens, Chair, Corporate Reorganization and Bankruptcy Group, Hughes Hubbard & Reed LLP and Liquidation Trustee, Lehman Brothers Inc. and MF Global Inc.; Seth Grosshandler, Partner, Cleary Gottlieb Steen & Hamilton LLP; Richard J. Herring, Jacob Safra Professor of International Banking & Professor of Finance, The Wharton School, University of Pennsylvania; and Jonathan R. Macey, Sam Harris Professor of Corporate Law, Corporate Finance, and Securities Law, Yale Law School. The panel was moderated by John D. Morley, Associate Professor of Law, Yale Law School. Note: Erica Gorga, Roberta Romano and Natalya Shnitser are editors, not authors, of this paper.

Interactive web-based simulations for strategy and sustainability: The MIT Sloan LearningEdge management flight simulators, Part I

The MIT Sloan School of Management has created a set of interactive, web-based management flight simulators to teach key ideas in business, strategy, sustainability and related fields. The simulations are freely available through the MIT Sloan LearningEdge portal (mitsloan.mit.edu/ LearningEdge). In these notes I describe six simulations available as of 2014. Part I describes Salt Seller (a multiplayer commodity pricing simulation); Eclipsing the Competition (learning curves, using the solar photovoltaic industry as the example); and Platform Wars (competition in the presence of network externalities using the video game industry as the context). Part II describes Fishbanks (the Tragedy of the Commons in the context of renewable resource management, updating the classic game by Dennis Meadows); CleanStart (building a startup firm, with clean tech as an example); and World Climate (an interactive role play of global climate negotiations). Each simulator enables participants to learn experientially about important concepts in management, strategy or sustainability. Each is grounded in a particular industry or firm, and comes with original case studies or briefing material describing the strategic challenges in these settings. Through these simulations, students, executives, policymakers and others can explore the consequences of different strategies so they can learn for themselves about the complex dynamics of important issues. I describe their purpose and use, illustrate their dynamics, and outline the instructor resources available for each. Copyright © 2014 System Dynamics Society Syst. Dyn. Rev. 30, 206–231 (2014)

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