Publications

October 2011
Article

Concentrating on Governance

By: Dalida Kadyrzhanova and Matthew Rhodes-Kropf

This paper develops a novel trade-off view of corporate governance. Using a simple model that integrates agency costs and bargaining benefits of management friendly provisions, we identify the economic determinants of the resulting trade-offs for shareholder value.... View Details

Keywords: Market Participation; Corporate Governance; Business and Shareholder Relations

October 2008 (Revised November 2010)
Case

NEC Electronics

By: C. Fritz Foley, Robin Greenwood and James Quinn

Why do shares in NEC Electronics, a publicly listed subsidiary of Japan conglomerate NEC, trade at a discount to their fundamental value? Can Perry Capital, a U.S. hedge fund, restructure this subsidiary and generate significant returns? This case provides students... View Details

Keywords: Restructuring; Private Equity; Investment Return; Ownership Stake; Business and Shareholder Relations; Financial Services Industry; Japan

Educators

Summer 2014
Article

Delegation in Multi-Establishment Firms: Evidence from I.T. Purchasing

By: Kristina Steffenson McElheran

Recent contributions to a growing theory literature have focused on the tradeoff between adaptation and coordination in determining delegation within firms. Empirical evidence, however, is limited. Using establishment-level data on decision rights over information... View Details

Keywords: Management Practices and Processes; Adaptation; Cooperation

09 Jan 2024
Research & Ideas

Could Clean Hydrogen Become Affordable at Scale by 2030?

Hydrogen is poised to move from the sidelines of global clean energy as the industry learns to produce it more efficiently and at lower cost, according to newly published research led by Gunther Glenk, a climate fellow with Harvard Business School's Institute for the... View Details

Keywords: by Desmond Dodd; Energy; Green Technology

April 2020
Teaching Note

Tailor Brands: Artificial Intelligence-Driven Branding

By: Jill Avery

Using proprietary artificial intelligence technology, startup Tailor Brands set out to democratize branding by allowing small businesses to create their brand identities by automatically generating logos in just minutes at minimal cost with no branding or design skills... View Details

Keywords: Marketing; Brands and Branding; Marketing Strategy; Advertising Industry; Technology Industry; United States; North America

Teaching Interest

Finance II (MBA Required Curriculum)

By: Benjamin C. Esty

This course builds on the foundation developed in Finance I, focusing on three sets of managerial decisions:

How to evaluate complex investments.
How to set and execute financial policies within a firm.
How to integrate... View Details

Keywords: Finance

30 Nov 2016
Op-Ed

Where Could More Regulation Help Small Businesses? Online Lending.

Our regulatory system has also been an unnecessary albatross on the growth of fintech players and on banks who try to partner with them. No single federal regulator has authority to oversee business lending. Instead, there is a spaghetti soup of at least seven View Details

Keywords: by Karen Mills and Brayden McCarthy; Financial Services

July 2013 (Revised October 2014)
Case

Following Lance Armstrong: Excellence Corrupted

By: Clayton Rose and Noah Fisher

After years of vigorous denials, on January 14, 2013 Lance Armstrong admitted in a television interview with Oprah Winfrey that he "doped" in each of his record seven consecutive Tour de France victories, confirming the findings a few months earlier by the US... View Details

Keywords: Corruption; Ethics; Crime and Corruption; Leadership; Culture; Sports Industry; United States; Europe; France

Educators

Teaching Interest

Organization and Management Theory

By: Michael L. Tushman

This doctoral seminar explores fundamental aspects of organizations and organization theory. This seminar will cover various approaches to organizations and the institutional contexts within which they operate. We will pay particular attention to innovation and... View Details

Srikant M. Datar

Srikant M. Datar became the eleventh dean of Harvard Business School on 1 January 2021. During his tenure as a faculty member, he served as Senior Associate Dean for University Affairs (including Faculty Chair of the Harvard Innovation Lab), for Research, for... View Details

Keywords: accounting industry; airline; automobiles; banking; biotechnology; communications; consumer products; e-commerce industry; health care; high technology; investment banking industry; management consulting; manufacturing; pharmaceuticals; venture capital industry

29 Jun 2016
Research & Ideas

The $1 Trillion Link Between Mental Health and Economic Productivity

In April, the World Health Organization released a groundbreaking study that established a definitive link between mental health and economic productivity. The findings were both depressing and hopeful. On the downside, depression and anxiety disorders View Details

Keywords: by Carmen Nobel

Article

Governments as Owners: State-Owned Multinational Companies

By: Alvaro Cuervo-Cazurra, Andrew Inkpen, Aldo Musacchio and Kannan Ramaswamy

The globalization of state-owned multinational companies (SOMNCs) has become an important phenomenon in international business (IB), yet it has received scant attention in the literature. We explain how the analysis of SOMNCs can help advance the literature by... View Details

Keywords: Multinational Corporation; State-owned Enterprises; State Capitalism; FDI; Internationalization; Government And Business; National Oil Companies; State Ownership; Multinational Firms and Management; Business Subsidiaries; Acquisition; Pharmaceutical Industry; Energy Industry; China; India; Europe

December 2013
Article

Leviathan as a Minority Shareholder: Firm-level Implications of State Equity Purchases

By: Carlos F. K. V. Inoue, Sergio G. Lazzarini and Aldo Musacchio

In many countries, firms face institutional voids that raise the costs of doing business and thwart entrepreneurial activity. We examine a particular mechanism to address those voids: minority state ownership. Due to their minority nature, such stakes are less affected... View Details

Keywords: Business Groups; Development Banks; State Capitalism; Performance; State Ownership; Brazil

2014
Working Paper

Entrepreneurship as Experimentation

By: William R. Kerr, Ramana Nanda and Matthew Rhodes-Kropf

Entrepreneurship research is on the rise but many questions about its fundamental nature still exist. We argue that entrepreneurship is about experimentation: the probabilities of success are low, extremely skewed and unknowable until an investment is made. At a macro... View Details

Keywords: Experiments; Innovation; Entrepreneurship; Innovation and Invention

SSRN

2008
Working Paper

The Internalization of Advertising Services: An Inter-Industry Analysis

By: Sharon Horsky, Steven C. Michael and Alvin J. Silk

The common perception appears to be that vertical integration of advertising services is more the exception than the rule in the U.S. advertising industry. This study investigates the extent of such outsourcing and examines inter-industry variation in the use of... View Details

Keywords: Advertising; Cost; Analytics and Data Science; Management Analysis, Tools, and Techniques; Service Operations; Creativity; Perception; Vertical Integration; Information Technology; Advertising Industry; United States

September 2010
Article

How Firms Respond to Being Rated

By: Aaron K. Chatterji and Michael W. Toffel

While many rating systems seek to help buyers overcome information asymmetries when making purchasing decisions, we investigate how these ratings also influence the companies being rated. We hypothesize that ratings are particularly likely to spur responses from firms... View Details

Keywords: System; Information; Decisions; Cost; Opportunities; Performance; Business and Stakeholder Relations; Economics; Theory; System Shocks; Rank and Position

September–October 2013
Article

The Role of Organizational Scope and Governance in Strengthening Private Monitoring

By: Lamar Pierce and Michael W. Toffel

Governments and other organizations often outsource activities to achieve cost savings from market competition. Yet such benefits are often accompanied by poor quality resulting from moral hazard, which can be particularly onerous when outsourcing the monitoring and... View Details

2024
Working Paper

Second- versus Third-party Audit Quality: Evidence from Global Supply Chain Monitoring

By: Maria R. Ibanez, Ashley Palmarozzo, Jodi L. Short and Michael W. Toffel

Capitalizing on the superior credibility and flexibility and potential lower cost of external assessments, many global buyers are relying less on their own employee (“second-party”) auditors and more on third-party auditors to monitor and prevent environmental and... View Details

Keywords: Auditing; Audit Quality; Working Conditions; Sustainability; Empirical Operations; Empirical Service Operations; Sustainability Management; Corporate Accountability; Corporate Social Responsibility and Impact; Supply Chain Management

SSRN