Stephen Morris Blogs

Don't Cry For Me Argentina: Currency Crises and Financial Integration

(University of San Francisco Research Colloquia) Permanent link

*When: May 12, Thu, 11:45 AM - 12:45 PM
*Where: MH 230

Title: Don't Cry For Me Argentina: Currency Crises and Financial Integration
Abstract:
This paper examines the impact of monetary policy and exchange rate regimes, and crises, on the country risk of Argentina’s stock market. We employ a time-varying beta model of country risk to infer how Argentina’s country risk was impacted by currency and financial changes as well as financial integration over the period 1980–2008. Argentina represents a unique case study as an emerging market with a long data series that includes multiple exchange rate regimes (floating, fixed, floating), monetary policy regimes (hyperinflation, currency board, rising inflation) along with a significant currency and financial crisis between the fixed to flexible exchange rate regimes. This crisis, which involved a failed currency board, debt repudiation, and financial expropriation, occurs early enough in the dataset for us to investigate its impact on the country risk of Argentina’s stock market. This paper thus provides an opportunity to investigate the economic factors affecting Argentina’s county risk both pre- and post- financial integration and pre- and post-financial crisis. Our results suggest that Argentina’s decision to move to a fixed exchange rate (a currency board) resulted in a significant, and expected, change in the economic variables that determined its country risk. This change is consistent with the timing of full financial integration for Argentina found in Goldberg and Delgado(2001). The later collapse of Argentina’s currency board, with it’s attendant financial crisis, produce a significant reversion in the economic variables impacting Argentina’s country risk. Our results suggest that Argentina’s exchange rate, the main factor pre-financial integration, resurfaces as an important determinant of changing country risk after the currency and financial crisis of 2001. 


Is there more to email negotiation than email? Exploring facets of email affinity

(University of San Francisco Research Colloquia) Permanent link

*When: May 3, Tue, 11:45 AM - 12:45 PM
*Where: MH 230

Title: Is there more to email negotiation than email? Exploring facets of email affinity

Abstract:
Ever increasing globe-spanning business activity paired with the wide availability of the internet, even in remote places, has at once provoked and provided suitable communication means (e.g., email) for complex business communication and tasks such as negotiation. Current research cautions against the use of email for negotiation as compared to other media because of the numerous challenges e-negotiators face, but the findings are far from unanimous. This study investigates if negotiators’ attitude toward and facility with email as a communication medium, i.e. their email affinity, influences the negotiation process and results. Three facets of email affinity are theoretically considered and empirically derived: email preference, email comfort and email clarity. In an experimental intercontinental email negotiation exercise where subjects were paired according to their email affinity score, email comfort emerged as a significant predictor of individual profit, joint gain, and different dimensions of subjective value. Theoretical implications and further research are discussed.

 

Location Strategy and Firm Value Creation: The case of Chinese MNEs

(University of San Francisco Research Colloquia) Permanent link

*When: April 26, Tue, 11:45 AM - 12:45 PM
*Where: CO 317

Title: Location Strategy and Firm Value Creation: The case of Chinese MNEs
Abstract:
The trend of Chinese outward foreign direct investment (OFDI) seems unstoppable. There has been a surge of overseas investment from China both to developing and developed countries. However, we have limited understanding of the impact the internationalization of these firms have on their value creation. In this paper, we draw on organizational learning theory to explore the impact of different types of FDI (i.e, exploitative and explorative FDI) and MNEs’ FDI location choice on firm value creation. Using event study methodology, we find that FDI types affect value creation for Chinese MNEs. In addition, we empirically demonstrate that positive value is created when Chinese MNEs aligned their location choice with international expansion strategy. We contribute to the growing body of literature on internationalization of Chinese firms by empirically verifying whether international expansion creates value for the firm and whether the types of FDI and location strategies have impact on firm value creation. We also contribute to the FDI theory building by extending the traditional FDI theories to the context of emerging market MNEs, namely Chinese MNEs.

Moral Minefields: Understanding Ethical Construction in the US Defense Industry

(University of San Francisco Research Colloquia) Permanent link

 

*When: April 19, Thu, 11:45 AM - 12:45 PM
*Where: MH 230

Title:
Moral Minefields: Understanding Ethical Construction in the US Defense Industry

Abstract:
Within the realm of organizational ethics, research efforts have largely been directed towards the description and prescription of behaviors which are deemed as “ethically positive”. However, little attention has been given towards understanding how people construct their ethical perspectives (individual and organizational). This paper attempts to transcend the traditional sensemaking paradigm usually applied to social and organizational processes and instead uses an interpretive phenomenological approach towards understanding the psychology of ethical construction. Data from the defence industry highlight how workers separate ethical processes from ethical consequences and in turn, the respective social and professional benefits that come from doing so. Findings have implications for how the field of ethics both frames and communicates the role of psychology in organizational morality and highlights the value of data from samples often perceived as ethically contentious.

Internal project management communication from a strategic perspective

(University of San Francisco Research Colloquia) Permanent link

 When: April 07, Thu, 11:45 AM - 12:45 PM
Where: MH 230

Line Berggreen Ramsing presents:

Explicit awareness of personal communication competence in project management communication unfolds opportunities to influence key project stakeholders at any given level. Clear and focused personal communication exceeds any IT system and therefore it pays off to invest in good project communication. However, from a project investment perspective companies are focused on IT, performance measurement; project monitoring, project development and project management systems with the purpose of meeting deadlines for delivery and gaining profit. But when deadlines and expectations are not met, when customers are not satisfied, it is a result of poor human communication - not because Excel or any other IT system fails in calculating a given situation.The importance of considering project communication strategically is a well established requirement within project management. Ongoing stakeholder analysis enables the project manager to continuously monitor and consider the ‘who’, ‘what’, ‘when’, ‘why’ and to some extent the ‘how’ of communication of information to stakeholders. What still remains to be explored is the ‘how’ of personal communication competence.

Trade Dress and The Trademark Trilogy

(University of San Francisco Research Colloquia) Permanent link

David Scalise and Lauren Salas

*When: April 14, Thu, 11:45 AM - 12:45 PM
*Where: MH 230

  Title: Trade Dress and The Trademark Trilogy
Abstract:
From Concept to Delivery: Dave explains cross-discipline, interview style research, and approaching journals. He’ll also discuss The Trademark Trilogy, stand-alone, thoroughly-researched articles linked by common, topical issues of interest to marketers and managers. Lauren will present on Trademark Trilogies II & III.

Toward a Theory of Workarounds in Organizations

(University of San Francisco Research Colloquia) Permanent link

Steven Alter

When: March 29, Tue, 11:45 AM - 12:45 PM
Where: MH 230

Title: Toward a Theory of Workarounds in Organizations
Abstract:
The purpose of this colloquium is to help me develop a widely applicable and useful theory of workarounds in organizations. Workarounds occur in all organizations. Workarounds occur when specific technologies do not operate as designed, but they also operate in many other situations, such as when cumbersome processes are too slow, when complete information is not available, when artificially imposed constraints make it difficult to do work, and when people collude to bypass or undermine expectations and regulations from legitimate or illegitimate authorities (principals in agency theory) such as management or government.

Topics to be discussed include:
1) proposed definition of workaround (applicable whether or not IT is involved)
2) proposed types of workarounds
3) permanence/ impermanence of workarounds
4) exploring the nature of workarounds by turning agency theory on its head
5) force field model for explaining workarounds
6) taxonomy of workarounds based on principal/agent concepts
7) evaluating the legitimacy/ illegitimacy of workarounds
8) bringing workarounds into the foreground in typical systems analysis and organizational analysis.

Prevalence of Relative Thinking on the Internet

(University of San Francisco Research Colloquia) Permanent link

*When: April 12, Thu, 11:45 AM - 12:45 PM
*Where: MH 230

Sweta Thota and Ricardo Villarreal

Title: Prevalence of Relative Thinking on the Internet
Abstract:
Consider the following scenarios: Situation 1: a consumer who is planning the purchase of a 55”3D LED TV priced at $1999 in a store meets a friend in the store who tells her that the same TV is available for a $20 discount at another store located 20 minutes away; Situation 2: a consumer who is planning to purchase a 26” LCD TV for $150 in a store is informed by a friend that the same TV is available for a discounted price of $130 at another located 20 minutes away. Is the consumer in Situation 1 as likely to travel to the other store away as the consumer in Situation 2?

Most consumers might choose to take the additional 20 minute travel effort to save $20 only on the TV priced at $150. The model of rational choice in traditional economic theories advocates that the price difference which guides the extra travel and effort should be the same regardless of the original price of the good because the additional cost of incurring an extra 20 minute travel is the same regardless of the good’s price (Azar 2007). However, consumers behave as though their search costs in terms of time and money increase proportionately to price of the purchase item. Consequently, consumers systematically violate this model and opt to exercise the additional effort only when the saving relative to the price of the original good is higher i.e., when the original price of the good is lower. This phenomenon is called relative thinking.

Past research has shown that relative thinking is instrumental in retailing and pricing areas. Further, given our limited cognitive abilities, individuals utilize several choice heuristics (ingrained into our decision-making system) which often provided reasonably accurate solutions with minimal amount of effort (Todd, 2000). Since it is widely acknowledged that human beings are cognitive misers (Fiske and Taylor 1991), it is not surprising that even with our contemporary and rational decision-making abilities, we still rely on heuristics which could often lead to biased decision outcomes. Relative thinking is a heuristic that leads to a decision bias because a saving of $20 should be equally valuable to a consumer regardless of whether the original price of an item is $50, $100 or $1000. Now consider the above two situations in the context of a consumer considering the purchase of the earlier mentioned 51” TV (priced at $1999) vs. the 26” TV (priced at $150) on the Internet. Is a consumer equally likely to browse other web sites for a twenty dollar saving ? That is, do individuals perceive the attractiveness of saving an ‘x’ amount on a low vs. high priced item similarly across the internet and brick and mortar stores? Specifically, does relative thinking phenomenon hold in the context of internet based search for lower prices?

This paper highlights boundary conditions and hypothesizes and investigates the relative thinking phenomenon in the context of Internet. Results show that the internet sets boundary conditions for the relative thinking phenomenon.

 

Chrystal Chang Presents

(University of San Francisco Research Colloquia) Permanent link

 

*When: March 1st, Tue, 11:45-12:45
*Where: MH 230

Title: Stumbling Toward Capitalism: The Unexpected Emergence of China’s Independent Auto Industry
Abstract:
In her dissertation, Stumbling Toward Capitalism: The Unexpected Emergence of China’s Independent Auto Industry, Chang analyzes the unintended consequences of China’s experimental policymaking approach through the lens of the auto industry. Specifically, she investigate the origins of China’s independent automakers, many of which are privately-held. The emergence of an independent automobile sector in China is puzzling given the industry’s historically high financial and technological barriers to entry and the Chinese government’s staunch support of state-owned automakers. Chang finds that the emergence of independent automakers was not the direct outcome of national industrial policies, as was the case in Japan and South Korea. Rather, Chang argues that Chinese entrepreneurial automakers indirectly benefited from: 1) the successes and shortcomings of the party-state’s joint venture (JV) policy, 2) China’s accession to the WTO, and 3) the changing nature of production networks in the global auto industry. Her argument stands in stark contrast to that of scholars who largely credit the party-state’s industrial policy for the modernization of China’s auto sector. Chapter 4, presented here, specifically explores the ways in which China’s accession to the WTO and key changes in global production networks opened opportunities for China’s independent automakers to break into the domestic auto market. The of the four leading independent automakers – BYD, Chery, Geely and Great Wall – are presented as case studies to support the argument. Chang will also discuss these auto makers' motives and path for global expansion and challenges facing them ahead.

School of Business & Professional Studies Research Colloquia

(University of San Francisco Research Colloquia) Permanent link
This blog will list the faculty research colloquia at the University of San Francisco's business school.