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In many settings, firms rely on independent contractors, or freelancers, for the provision of certain services. The benefits of such relationships for both firms and workers are often understood in terms of increased flexibility. Less understood is the impact of freelancing on individual performance. While it is often presumed that the performance of freelancers is largely portable across organizations, it is also possible that a given worker's performance may vary across organizations if he or she develops firm-specific skills and knowledge over time. We examine this issue empirically by considering the performance of cardiac surgeons, many of whom perform operations at multiple hospitals within narrow periods of time. Using patient mortality as an outcome measure, we find that the quality of a surgeon's performance at a given hospital improves significantly with increases in his or her recent procedure volume at that hospital but does not significantly improve with increases in his or her volume at other hospitals. Our findings suggest that surgeon performance is not fully portable across hospitals (i.e., some portion of performance is firm specific). Further, we provide preliminary evidence suggesting that this result may be driven by the familiarity that a surgeon develops with the assets of a given organization.
Vol. 52, No. 4, April 2006, pp. iv–vi
issn 0025-1909 eissn 1526-5501 06 5204 00iv
doi 10.1287/mnsc.1060.0555
© 2006 INFORMS
Management Insights
The Firm Specificity of Individual Performance:
Evidence from Cardiac Surgery
Robert S. Huckman,Gary P. Pisano
In many settings, firms depend on freelance labor
for provision of critical services. Examples can be
found in entertainment, journalism, consulting, and—
the focus of this paper—medical care. The reliance
of firms on labor they do not employ raises impor-
tant managerial questions. To what extent is the per-
formance of freelancers transferable across organiza-
tions? Alternatively, to what degree do assets that
are specific to a given organization affect the per-
formance of any individual freelancer? Finally, how
should a manager value evidence about a freelancer’s
prior performance in another organization? We con-
sider several of these issues in the market for car-
diac surgery, a setting where freelance surgeons often
work at multiple hospitals. We find that the estab-
lished positive relationship between a surgeon’s vol-
ume of procedures and the quality of his or her surgi-
cal outcomes is, in fact, a firm-specific phenomenon.
That is, the quality of a surgeon’s outcomes at a given
hospital is positively related to his or her volume at
that hospital but is not related to his or her volume
at other hospitals. We find support for the view that
this firm specificity is due to a surgeon’s familiarity
with assets (both physical and human) that may differ
between organizations.
Does Past Success Lead Analysts to Become
Gilles Hilary,Lior Menzly
The authors use financial analyst behavior to study
how individuals make decisions. The results indicate
that people tend to become overconfident in their
capacities after a series of good performance. In other
words, they attribute too much of their success to
their skill and not enough to plain luck. In the setting
considered in this paper, analysts take more risk and
make more mistakes after a series of accurate earnings
forecasts. This suggests a counterintuitive implication
for practitioners in the financial markets. If two ana-
lysts possess identical skills and experience but only
one was recently successful, investors may want to
rely more on the subsequent forecast of the less accu-
rate analyst. In other words, investors may want to
downplay the predictions of analysts who have expe-
rienced short-term success.
Confidence in Imitation: Niche-Width Strategy
in the UK Automobile Industry
Mooweon Rhee,Young-Choon Kim,Joon Han
Firms often imitate other firms’ strategies for eco-
nomic and social purposes. Our study suggests that
managers’ decisions to imitate others are affected by
their confidence in imitation, which derives from the
distribution of other firms they are considering imi-
tating (i.e., “reference firms”). We find that firms are
more likely to imitate other firms when they observe
more reference firms and when the strategies of those
reference firms are less heterogeneous. However, the
fact that managers can only imitate the strategies
of firms that have survived the competitive process
means that their choices of reference firms are usu-
ally unrepresentative (i.e., “undersampled”). This pro-
vides managers with a misleading picture of the prac-
tices they imitate and leads to misguided confidence
in imitation decisions. In particular, during periods
of disruptive technological and market change where
innovation is considered superior to imitation, the
undersampling of failed firms may lead managers to
make inferior strategic decisions because they under-
estimate the range of behavior of their reference firms.
Given this tendency, managers should be aware of a
potential decision trap because the distribution of ref-
erence firms distorts as well as influences their deci-
sion to imitate. Our study suggests that if managers do
not recognize and correct for this undersampling prob-
lem, then their imitation decisions can be systemati-
cally biased and could damage their firms’ long-term
A General, Analytic Method for Generating Robust
Strategies and Narrative Scenarios
Robert J. Lempert,David G. Groves,
Steven W. Popper,Steve C. Bankes
When faced with deeply uncertain, hard-to-predict
futures, decision makers often seek robust strate-
gies that perform well over a wide range of plau-
sible scenarios. But most quantitative decision sup-
port methods answer a different question, identify-
ing an optimum strategy contingent on decision mak-
ers’ best estimates of future outcomes and their like-
lihoods. Such optimal strategies may be highly vul-
nerable to unexpected opportunities and dangers. This
paper describes robust decision making (RDM), a new
analytic method that helps decision makers design
the robust strategies they need to more effectively
Management Insights
Management Science 52(4), pp. iv–vi, © 2006 INFORMS v
manage deeply uncertain futures. Using an organi-
zation’s existing models and data in a computer-
supported, iterative process, RDM first discovers
promising strategy options, aggressively searches for
their vulnerabilities by scanning hundreds to millions
of computer-generated scenarios, and then suggests
modifications that address these vulnerabilities. Dur-
ing this process, RDM identifies a small number of
scenarios particularly salient to the decision makers’
choices. RDM thus offers a synthesis between the
communicative power of narrative scenarios and the
rigor of quantitative decision analysis. We illustrate
the approach by identifying robust, adaptive near-
term pollution control strategies for the 21st century.
Affect, Empathy, and Regressive Mispredictions of
Others’ Preferences Under Risk
David Faro,Yuval Rottenstreich
Managers must often predict how others will react
to risk. For example, suppose that a pharmaceuti-
cal firm is selecting a system by which to compen-
sate scientists and doctors employed to develop new
innovations. Management might consider two types
of compensation: a salary-based system providing a
guaranteed, stable income, or a riskier, performance-
based system that provides substantial bonuses for
successful innovations but only modest remuneration
for unsuccessful innovations. Which one is preferred
will depend on the employees’ risk attitudes. In this
paper, we experimentally assess the accuracy of peo-
ple’s predictions of others’ reactions to risk. We find
that predictions get the “direction” correct but are sig-
nificantly too “tempered.” That is, people do indeed
like risks they are predicted to like, but they like these
risks more than predicted. Likewise, people tend to
dislike risks they are predicted to dislike, but they
dislike these risks more than predicted. In the context
of our compensation example, our findings suggest
that if managers predict that employees would pre-
fer the riskier, performance-based system, employees
will actually prefer this compensation plan even more
than managers forecast.
Risk Management with Benchmarking
Suleyman Basak,Alex Shapiro,Lucie Teplá
This paper focuses on a common practice in the
money management industry—relative performance
evaluation—which leads to benchmarking invest-
ment strategies. We approach this issue by investi-
gating the optimal investment behavior of a man-
ager who strives to meet a tracking error constraint
in a standard asset allocation framework. The con-
straint allows a shortfall from a benchmark return,
consistent with growing interest in such practice.
While shortfall-based investment strategies have been
argued to have adverse implications, we demonstrate
that, in conjunction with benchmarking, such prac-
tices offer a variety of attractive features. Our results
show that a money manager optimally under- or
overperforms a target benchmark under different eco-
nomic conditions, depending on his or her attitude
toward risk and the choice of benchmark. This, in
turn, provides guidance for investors on how to select
managers/benchmarks in order to achieve a desired
investment performance profile. Although our formu-
lation includes important risk-management practices,
such as portfolio insurance, value-at-risk, downside
hedging, as special cases, many of our findings fall
outside the predictions of existing work.
Downside Loss Aversion and Portfolio Management
Robert Jarrow,Feng Zhao
When managing either a fixed-income portfolio that
is exposed to credit risk or an equity portfolio involv-
ing derivatives, portfolio management tools based on
the traditional mean-variance analysis may no longer
be relevant. Indeed, traditional mean-variance meth-
ods view risk symmetrically (downside and upside).
Yet, industry practice and behavioral finance support
the notion that risk is not viewed symmetrically, and
that downside loss-averse preferences are the norm.
Given these observations, this paper provides an anal-
ysis of the differences between optimal portfolio hold-
ings for downside loss-averse versus mean-variance
preferences. The authors show that if the return dis-
tributions of the assets underlying the portfolio are
symmetric, then the two different preferences yield
similar optimal portfolios. However, if the return dis-
tributions are asymmetric with larger left tails, then
the portfolio holdings differ significantly. This leads to
simple procedure for determining optimal portfolios
for a class of downside loss-aversion preferences.
An Empirical Examination of the Decision to
Invest in Fulfillment Capabilities: A Study of
Internet Retailers
Taylor Randall,Serguei Netessine,Nils Rudi
The spectacular rise and fall of many prominent Inter-
net retailers is a subject of intensive inquiry in the aca-
demic community. In this paper, we analyze the deci-
sion of some Internet retailers to outsource inventory
and back-end operations to third parties and compare
it with decisions of other retailers to keep fulfillment
capabilities in-house. Using evidence from a sample
of over 50 public Internet retailers, we demonstrate
empirically that older firms selling small, high-margin
products, offering lower levels of product variety, and
facing lower demand uncertainty tend to integrate
inventory and fulfillment capabilities with virtual
storefronts. Furthermore, we find that the decision
to invest (or not invest) in fulfillment capabilities
is associated with the ultimate success of Internet
retailers: companies making this decision in accor-
dance with theoretical predictions are much less likely
to go bankrupt. This suggests that supply chain
Management Insights
vi Management Science 52(4), pp. iv–vi, © 2006 INFORMS
management decisions by Internet retailers have a sig-
nificant effect on their economic performance.
E-sourcing in Procurement: Theory and Behavior in
Reverse Auctions with Noncompetitive Contracts
Richard Engelbrecht-Wiggans,Elena Katok
Auctions effectively establish a market clearing price.
However, there are costs associated with running
and/or participating in an auction. For example, a
buyer may prefer to continue purchasing from sup-
pliers with whom he has previous experience, as long
as he gets a fair price. As a compromise between
noncompetitive procurement and an all-out auction,
we consider hybrid mechanisms in which only some
units get purchased at auction, but this auction estab-
lishes the price for the noncompetitively procured
units as well. We show, both in theory and in the
laboratory, that such hybrid mechanisms can actually
result in even lower prices for the buyer than an all-
out auction.
Machine Learning for Direct Marketing Response
Models: Bayesian Networks with Evolutionary
Geng Cui,Man Leung Wong,Hon-Kwong Lui
The rapid accumulation of customer and transac-
tion data has resulted in very large databases. The
amount and variety of data provide new opportu-
nities for marketing researchers to use data mining
methods to gain insight into consumer behavior by
exploring unanticipated relationships. This is particu-
larly relevant for direct marketing operations. Using
RFM (recency, frequency, monetary value), lifetime,
and transaction data to model consumer response to
direct marketing, we demonstrate that Bayesian net-
works (BN), which are free from traditional data and
model assumptions, require no a priori model for-
mulation and can take on any structure for a model
by encoding a joint probability distribution among
the variables. In comparison with neural networks,
CART (classification and regression tree) and latent-
class regression, BN provides more accurate and inter-
pretable results, greater transparency, and explanatory
insight. The machine learning algorithm of evolu-
tionary programming (EP) compares numerous alter-
native BN models to arrive at an optimal solution.
Together, BN and EP represent efficient tools that
marketing managers can use to extract and update
knowledge in a timely fashion and thereby facilitate
improved marketing decisions.
Research Note—Sole Entrant, Co-optor, or
Component Supplier: Optimal End-Product
Strategies for Manufacturers of Proprietary
Component Brands
R. Venkatesh,Pradeep Chintagunta,Vijay Mahajan
Component branding is emerging as a prominent
marketing strategy. Our focus is on manufacturers of
powerful component brands who are able to shape
the competitive structure even for downstream prod-
ucts. We see three alternative roles for such manufac-
turers in the end-product market: sole entrant, as with
3Com, which until recently offered its Palm operating
system only as part of its own Palm handheld devices;
co-optor, as with Canon, whose specialty motors go
into its own and HP laser printers; and component
supplier, as with Intel, which has refrained from mak-
ing its own PCs. We analyze a spatial model to pro-
pose which role is the best and what the related pric-
ing practices should be. Our recommendations are as
1. The co-optor role (i.e., entering the end-product
market and co-opting other end-product manufactur-
ers) is generally more profitable than the sole entrant
and component supplier roles.
2. Under the co-optor role, firms can and should
charge higher prices than under the other two roles.
Doing so moves the players to more profitable
“niche” roles and avoids cut-throat competition.
3. Firms should offer their potent component even
to competitors who are using inferior alternatives. Co-
opting these rivals is likely to lead to “win-win” out-
We provide an illustrative application of the model
to three high-tech end-product categories—digital
handhelds, color TV sets, and laser printers.
Allocation of Service Time in a Multiserver System
Muhammad El-Taha,Bacel Maddah
This article deals with a novel idea of reducing con-
gestion and related cost without committing addi-
tional resources by reallocating existing resources in a
more efficient manner. In a multiserver queuing sys-
tem with job processing times characterized by high
variability, we divide the servers into two groups,
where all arriving jobs go to the first group and
receive up to Tof their service requirement and, if
necessary, proceed to the second group of servers to
receive their remaining service. In this design, large
jobs with long processing times end up at the second
group of servers. This mechanism allows fast process-
ing of small jobs at the first group of servers with
minimal delay. This article finds the value of Tand
the number of group 1 servers that minimize mean
delay per job in the system. Numerical results show
significant reduction in mean delay over using the
standard multiserver model. Our results may offer a
means for improving responsiveness in manufactur-
ing, repair and maintenance facilities, and computer
applications, where processing times are not known
in advance.
... In many creative contexts, such as film and video game development, scholars argue that employee mobility can be a key obstacle to protecting investments in human capital (e.g., Cadin et al., 2006). And while outside knowledge might help firms tackle problems that were solved elsewhere (Franke et al., 2014), or might be useful for generating new ideas that lead to innovation (Storz et al., 2015), knowledge does not always transfer across project or firm context (Groysberg et al., 2008) and can present hazards if it is uncritically applied (e.g., Huckman et al., 2006). These hazards are particularly salient when a project is focused on either exploitation-a primary focus on leveraging the firm's own prior experience (e.g., Benner & Tushman, 2003;Rosenkopf & Nerkar, 2001)-or imitation-a primary focus on replicating the successes of industry rivals (e.g., Semadeni & Anderson, 2010). ...
... This has since shifted since, over time, scholars have increasingly recognized the role of transient members on workgroup performance (e.g., Brady & Davies, 2004;Prencipe & Tell, 2001). As our knowledge on this topic continues to mature and work structure evolves, an area of growing interest focuses on the contextualized application of knowledge within workgroups (Groysberg et al., 2008;Huckman & Pisano, 2006)-specifically, the potential limits of knowledge transfer between workgroup contexts (e.g., Chatterji et al., 2019;Fahrenkopf et al., 2020)-and uncovering the ideal balance between different types of knowledge in a workgroup (Argote et al., 2021). ...
... In the modern era, firms often form ad hoc, project-focused workgroups that can consist of both internal employees and external contracted workers which disband when that project is completed (Brady & Davies, 2004;Hobday, 2000). There are many potential short-run benefits from such temporary workgroup arrangements, such as the portability of skills, reduced costs, and increased flexibility, among others (Huckman & Pisano, 2006). Initially, these ad hoc groups do not benefit from the gradual honing of routines and increased relational capital enjoyed by workgroups with collaborative histories (Edmondson & Nembhard, 2009). ...
Full-text available
According to the knowledge transfer literature, members of a project workgroup who share collaborative history possess a “shared understanding” thought to increase psychological safety and efficiency, thereby improving current project performance. But knowledge misfit can occur depending on where they have previously collaborated (internal or external to the focal firm) and the type of project currently pursued. We contend that misfit engenders “shared misunderstanding” where prior collaborators impose irrelevant knowledge onto a project, undermining performance. We extend research on knowledge transfer and human capital mobility by predicting that internal collaborative history helps exploitative projects but undermines imitative projects, while external collaborative history aids imitative projects but undercuts exploitative projects. We test these predictions in the context of the video game industry, with a sample of 1,000 video games released by 53 game publishers from 1996-2013, spanning 47,437 person-game observations, and find results largely consistent with our hypotheses.
... First, until replacements accumulate human capital at least equivalent to that of the leavers, the unit suffers from the outcome of less-proficient employees (Laulié & Morgeson, 2020;Siebert & Zubanov, 2009), and remainers have to take on part of their work to compensate for the gap (Hausknecht, Trevor, & Howard, 2009). Furthermore, although the loss of individual explicit knowledge ("know-what") may be counterbalanced through additional investments in human capital (Christian, Pearsall, Christian, & Ellis, 2014;Dess & Shaw, 2001), tacit knowledge development requires team interaction and practice (Grant, 1996), and the idiosyncratic nature of "know-how" makes it difficult to capture the previous functioning of a unit (Huckman & Pisano, 2006;Kacmar, Andrews, Van Rooy, Steilberg, & Cerrone, 2006). ...
... Managerial quits are likely to have a profound impact on remainers because managers' experiences and the resulting firm-specific tacit knowledge are valuable resources that are difficult to replace. Therefore, their human capital can only be transferred in part from or to other units (Huckman & Pisano, 2006). Their knowledge can be facilitated through mentoring or other processes, but it is costly and time-consuming if not controlled for in advance (Eckardt et al., 2014). ...
Although the functional effects of turnover have been argued from the earliest research in the field, empirical evidence so far supports a general negative effect on unit performance, and attempts to explore its potential benefits are scarce. It has been argued that one reason for the absence of positive effects has to do with a lack of specificity of the turnover construct. The present study focuses on two sources of specificity: the reason for turnover and the job level of the departing employees. Our objective is to perform integrative research to analyze their joint effects and discuss how the four turnover scenarios created by their combination make their potential benefits of departures salient. We integrate arguments from human and social capital theories with the literature on team adaptation and change to develop our conceptual framework, and test our hypotheses using longitudinal monthly data from 5,202 stores of a large fashion multinational retailer in 39 countries. Our results provide evidence of a curvilinear relationship between staff quits and unit performance, and show that discharges are linearly beneficial both for managerial and staff positions, although at different degrees. Our findings demonstrate that differentiating between quits and discharges matters, and that the relative value conveyed by the job level of the departing employees is a relevant contingency in this distinct effect over performance.
... It also contributes to the literatures around learning in organizations from experience (e.g., Simon 1991, Huckman and Pisano, 2006;Lawrence 2018;Thornton & Thompson, 2001), by showing the potential benefit experienced employees might play in reducing organization-level biases. ...
Full-text available
This paper examines how people price the resale of durable goods in systematically biased ways. We show across four studies that the anchoring effect of durable goods’ prior sales prices on subsequent valuations is discontinuous at psychologically salient round number reference points (e.g., $10,000 increments) because these numbers create qualitative differences in how people perceive values below them versus values at/above them. Resellers set disproportionately larger subsequent prices when previous prices move from just below round number thresholds (e.g., $349,000) to those at or just above these thresholds (e.g., $351,000). The findings show that buyers who pay a price just below a round number, therefore, may sacrifice money because they receive disproportionately less when reselling the good. Market forces only partially attenuate this pricing bias, but valuator experience seems to play a moderating role. Archival data show that home buyers who previously paid just under a $10,000 reference point subsequently listed their homes for about 1.8% (over $3,700) less on average than did buyers selling comparable homes who previously paid at or above a round number threshold. This drop is observable controlling for home characteristics and the general relationship between previous and current prices. Three experimental studies looking at housing and used car markets replicate these findings, highlight the mechanism, and increase confidence in causality. Market mechanisms and the negotiation process attenuate discontinuities by about 30%, but lower initial listing prices persist to final sales prices. We find additional weak evidence suggesting that valuator experience may attenuate intergenerational pricing bias.
... Exploration of the role of different types of human capital has been undertaken in various settings outside 24 25 and inside [26][27][28] healthcare. Related research has examined skill-mix, an element of human capital, in the nursing context. ...
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Objective To examine the impact of nursing team size and composition on inpatient hospital mortality. Design A retrospective longitudinal study using linked nursing staff rostering and patient data. Multilevel conditional logistic regression models with adjustment for patient characteristics, day and time-invariant ward differences estimated the association between inpatient mortality and staffing at the ward-day level. Two staffing measures were constructed: the fraction of target hours worked (fill-rate) and the absolute difference from target hours. Setting Three hospitals within a single National Health Service Trust in England. Participants 19 287 ward-day observations with information on 4498 nurses and 66 923 hospital admissions in 53 inpatient hospital wards for acutely ill adult patients for calendar year 2017. Main outcome measure In-hospital deaths. Results A statistically significant association between the fill-rate for registered nurses (RNs) and inpatient mortality (OR 0.9883, 95% CI 0.9773 to 0.9996, p=0.0416) was found only for RNs hospital employees. There was no association for healthcare support workers (HCSWs) or agency workers. On average, an extra 12-hour shift by an RN was associated with a reduction in the odds of a patient death of 9.6% (OR 0.9044, 95% CI 0.8219 to 0.9966, p=0.0416). An additional senior RN (in NHS pay band 7 or 8) had 2.2 times the impact of an additional band 5 RN (fill-rate for bands 7 and 8: OR 0.9760, 95% CI 0.9551 to 0.9973, p=0.0275; band 5: OR 0.9893, 95% CI 0.9771 to 1.0017, p=0.0907). Conclusions RN staffing and seniority levels were associated with patient mortality. The lack of association for HCSWs and agency nurses indicates they are not effective substitutes for RNs who regularly work on the ward.
... The team leader is responsible for managing the team, facilitating communication within the team, and to manage the changes. Examining the Team leadership is useful when attempting to explain team performance [25][26][27]. ...
Agile methods promise to achieve high productivity and provide high-quality software. Agile software development is the most important approach that has spread through the world of software development over the past decade. Software team productivity measurement is essential in agile teams to increase the performance of software development. Due to the prevalence of agile methodologies and increasing competition of software development companies, software team productivity has become one of the crucial challenges for agile software companies and teams. Awareness of the level of team productivity can help them to achieve better estimation results on the time and cost of the projects. However, to measure software productivity, there is no definitive solution or approach whether in traditional and agile software development teams that lead to the occurrence of many problems in achieving a reliable definition of software productivity. Hence, this study aims to propose a statistical model to assess the team’s productivity in agile teams. A survey was conducted with forty software companies and measured the impact of six factors of the team on productivity in these companies. The results show that team effectiveness factors including inter-team relationship, quality conformance by the team, team vision, team leader, and requirements handled by the team had a significant impact on the team’s productivity. Moreover, the results also state that inter-team relations affect the most on software teams’ productivity. Finally, the model fit test showed that 80% of productivity depends on team effectiveness factors.
... Increased employer-employee matching, in turn, has been shown to positively influence productivity (Lazear & Oyer, 2004) as well as to reduce turnover (Hom, Lee, Shaw, & Hausknecht, 2017). Further, not knowing the colleagues at the new employer well is often seen as one of the reasons why employees' performance falls, temporarily at least, when they move between organizations (Huckman & Pisano, 2006;Groysberg, Lee, & Nanda, 2008;Bidwell, 2011;Mawdsley & Somaya, 2016). they connect with co-located colleagues with whom they share a departmental affiliation and geographical space (Dahlander & McFarland, 2013;Kleinbaum, Stuart, & Tushman, 2013). ...
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When a firm and a competitor collaborate with the same partner, they compete for the shared partner’s resources and attention. Such “peer competition” has been shown to negatively affect a firm’s access to resources and its performance. One might expect that also the employees’ careers to suffer as a result. However, we argue that the firm’s employees benefit from such collaborations. They leverage these collaborations to build social capital – helping their mobility and careers. We find empirical support for our theory using a large sample dataset of video game companies. Our study points to an important yet hitherto neglected agency conflict: employees seek interfirm collaborations that benefit them personally but hurt their firm. We show that some alliances can be detrimental to a firm’s performance yet can benefit its employees. Specifically, we find that collaborating with the same partner as a competing firm hurts firm performance but can be leveraged by employees to advance their careers – by using the opportunity to connect with competing firms and find better job opportunities. We also find that firms often take on more collaboration than is good for them but entering many collaborations can benefit employees. Our study show that the interests of firms and their employees are not always aligned when it comes to interfirm collaborations.
This study examines the effects of social network structure of intermediaries in health care, namely referring physicians, upon the specialty treatment choices of patients in the United States. The social network of a referring physician is identified by the patient‐sharing pattern in Medicare claims data, and the following three measures are employed as key explanatory variables: (1) number of physicians connected (adjusted degree); (2) tightness of the network (clustering coefficient); and (3) influence of individual physicians in the network (eigenvector centrality). The results of discrete‐choice demand models suggest that if patients are referred by a physician who is a more important player in their social networks (i.e. eigenvector centrality is higher), the patient has a higher chance of choosing a surgeon of better quality.
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PENGURUSAN BAKAT DAN PRESTASI KERJA DALAM INDUSTRI PERBANKAN NIGERIA: PERANAN PENGLIBATAN KERJA, KEPUASAN KERJA DAN PERSEPSI SOKONGAN ABSTRAK Bank Sentral Nigeria bertujuan membentuk semula industri perbankan Negara Nigeria. Pelbagai dasar ekonomi yang bertujuan untuk membentuk semula telah diwujudkan oleh Bank Sentral Nigeria. Namun begitu, kebanyakan bank di Nigeria masih tidak menunjukkan prestasi yang baik berbanding dengan bank di negara lain. Kajian ini bertujuan mengkaji prestasi pekerja dalam industri perbankan di Nigeria. Berdasarkan teori pertukaran sosial dan teori modal insan, kajian ini fokus kepada menyiasat hubungan pengurusan bakat dengan prestasi kerja pekerja dalam industri perbankan Nigeria. Kajian ini menggunakan penglibatan kerja dan kepuasan kerja sebagai angkubah mediasi serta persepsi sokongan organisasi dan persepsi sokongan supervisor sebagai angkubah moderasi. Soal selidik digunakan untuk mengumpul maklumat dari 302 pekerja sepenuh masa di lima buah bank terbaik dalam industri perbankan Nigeria. Data kemudian dianalisis menggunakan PLS-SEM. Dapatan kajian menunjukkan bahawa tarikan bakat dan pengembangan bakat pekerja mempunyai pengaruh positif terhadap prestasi kerja, gelagat kewarganegaraan organisasi dan gelagat kewarganegaraan individu. Pengekalan bakat didapati tidak mempunyai pengaruh signifikan terhadap prestasi kerja, gelagat kewarganegaraan organisasi dan gelagat kewarganegaraan individu. Hasil kajian membuktikan bahawa penglibatan kerja dan kepuasan kerja berpengaruh positif atas tarikan bakat, pengembangan bakat dan prestasi kerja, gelagat kewarganegaraan organisasi dan gelagat kewarganegaraan individu. Sebaliknya, penglibatan kerja dan kepuasan kerja tidak menjadi angkubah mediasi atas perhubungan antara pengekalan bakat dan prestasi kerja, gelagat kewarganegaraan organisasi dan gelagat kewarganegaraan individu. Tambahan lagi, persepsi sokongan supervisor tidak memoderasi perhubungan antara penglibatan kerja dan prestasi kerja, gelagat kewarganegaraan organisasi dan gelagat kewarganegaraan individu. Walau bagaimanapun, dapatan menunjukkan bahawa persepsi sokongan supervisor memoderasi perhubungan antara kepuasan kerja, prestasi kerja dan gelagat kewarganegaraan organisasi, tetapi tidak memoderasi perhubungan antara kepuasan kerja dan gelagat kewarganegaraan individu. Akhirnya, kajian mendapati bahawa persepsi sokongan supervisor tidak memoderasi hubungan antara penglibatan kerja dan prestasi kerja, gelagat kewarganegaraan organisasi dan gelagat kewarganegaraan individu. Dengan cara yang sama, persepsi sokongan supervisor tidak mempengaruhi perhubungan antara kepuasan kerja dengan gelagat kewarganegaraan organisasi dan gelagat kewarganegaraan individua, tetapi memoderasikan perhubungan antara kepuasan kerja dan prestasi kerja. Oleh itu, untuk bank Nigeria memotivasi pekerja supaya berprestasi tinggi dalam ekonomi digital ini, pengurusan bakat perlu dirancang dengan teliti kerana pengurusan bakat dapat mewujudkan keadaan lebih daya saing. Kesimpulannya, kajian ini akan memanfaatkan industri perbankan Nigeria, pihak berkepentingan dan pembuat dasar dalam memahami peramal prestasi kerja industri perbankan agar prestasi pekerja dapat dipertingkatkan. TALENT MANAGEMENT AND JOB PERFORMANCE IN NIGERIAN BANKING INDUSTRY: THE ROLES OF WORK ENGAGEMENT, JOB SATISFACTION, AND PERCEIVED SUPPORT ABSTRACT The Central Bank of Nigeria aimed to reshape Nigeria’s banking industry. However, despite the various economic policies, most banks continue to perform poorly compared to their counterparts in other parts of the world. Therefore, there is a need to study the Nigerian banking industry, in particular, the predictors of employee job performance. Based on the social exchange theory and human capital theory, this study aims to investigate talent management and job performance of Nigerian banks, using work engagement and job satisfaction as mediators, as well as perceived organizational support (POS) and perceived supervisory support (PSS) as moderators. Questionnaire was used to obtain information from 302 full-time employees of the top five banks in Nigeria. PLS-SEM was used to analyze the data. The results indicated that talent attraction and talent development have a significant and positive influence on task performance, organizational citizenship behavior organization (OCBO), and organizational citizenship behavior individual (OCBI). However, talent retention was found to have no significant effect on employee task performance, OCBO, and OCBI. Work engagement and job satisfaction are found to relate positively to talent attraction, talent development, task performance, OCBO, and OCBI. However, work engagement and job satisfaction do not mediate the relationship between talent retention and task performance, OCBO, and OCBI. Furthermore, it is found that POS does not moderate the relationship between work engagement and task performance, OCBO, and OCBI. However, the finding revealed that POS moderates the relationship between job satisfaction and task performance and OCBO, but does not moderate the relationship between job satisfaction and OCBI. Finally, PSS does not moderate the relationship between work engagement and task performance, OCBO and OCBI. Similarly, PSS does not intervene in the relationship between job satisfaction, OCBO and OCBI, but instead it moderates the relationship between job satisfaction and task performance. Therefore, for the Nigerian banks to motivate high-performing employees in this digital economy, talent management will need to be carefully designed to create the most enduring competitive advantage. This study will benefit the Nigerian banking industry, the stakeholders, and the policy makers to apprehend the predictors of job performance so that the prevalence of poor employee job performance will not occur.
Clinical labs belong to a mature industry and fulfill a critical function in the health‐care value chain. We examine factors that influence the opportunity, motivation, and ability to learn in clinical labs. We hypothesize that with respect to learning about cost: (i) organizational design, such as the extent of outsourcing can impede the opportunity to learn, (ii) quality focus (measured by mortality rates and length of stay) can reduce the motivation to learn, and (iii) related task variety (measured by product‐mix breadth) and information technology investments can enhance the ability to learn. Our empirical tests calibrate learning effects on disaggregate (technical and supervisory hours and cost) and aggregate (salary and total direct cost) cost and time pools. Using longitudinal data from clinical labs in California for the period 1997–2015, we find that clinical labs with greater cumulative output have lower average costs, consistent with learning effects in clinical labs. We also find results consistent with our hypotheses about the contextual factors that influence learning rates in clinical labs. Our findings contribute to a better understanding of learning rates with implications for budgeting, forecasting, and performance measurement. The results highlight that learning can be a crucial source of cost reduction in health‐care settings. This article is protected by copyright. All rights reserved.
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This paper reports on a qualitative field study of 16 hospitals implementing an innovative technology for cardiac surgery. We examine how new routines are developed in organizations in which existing routines are reinforced by the technological and organizational context All hospitals studied had top-tier cardiac surgery departments with excellent reputations and patient outcomes yet exhibited striking differences in the extent to which they were able to implement a new technology that required substantial changes in the operating-room-team work routine. Successful implementers underwent a qualitatively different team learning process than those who were unsuccessful. Analysis of qualitative data suggests that implementation involved four process steps: enrollment, preparation, trials, and reflection. Successful implementers used enrollment to motivate the team, designed preparatory practice sessions and early trials to create psychological safety and encourage new behaviors, and promoted shared meaning and process improvement through reflective practices. By illuminating the collective learning process among those directly responsible for technology implementation, we contribute to organizational research on routines and technology adoption.
This study uses a new database containing clinical risk factors for cardiac surgery to investigate the relationship between surgical volume (hospital and surgeon) and inhospital mortality rate for all patients receiving coronary artery bypass surgery in New York State in 1989. Also, hospitals with significantly higher and lower mortality rates than expected on the basis of patient preoperative risk factors are identified. The results demonstrate that both annual surgeon volume and annual hospital volume are significantly (inversely) related to mortality rate. The 36% of all coronary bypass operations performed in hospitals with annual bypass volumes of 700 or more by surgeons with annual bypass volumes of 180 or more had a risk-adjusted mortality rate of 2.67% in comparison to a risk-adjusted mortality rate of 4.29% for other bypass operations. Furthermore, low surgical volumes were a major contributor to the outlier status of four of the five hospitals with significantly higher mortality rates than expected.
In this study, we investigate a central tenet of the resource-based view of the firm-that tacit knowledge often lies at the core of sustainable competitive advantage-and attempt to articulate it with greater theoretical precision than has been done previously. Using data from the National Basketball Association, we find support for a predicted positive relationship between shared team experience and team performance that declines as shared experience grows, eventually becoming negative. The implications of this study for non-sports-related firms are discussed along with suggestions for future research.
Recent studies have demonstrated that the number of times a hospital or surgeon performs certain procedures annually has an inverse relationship with in-hospital mortality rates for patients undergoing the procedures. This study uses an improved measure of physician volume to test the combined relationship of hospital and physician volume with in-hospital mortality rates and to explore the existence of threshold volumes that optimally discriminate high- and low-volume providers. Five procedure groups have significant volume-mortality relationships. For total cholecystectomies, hospital volume is the more significant volume measure, but physician volume is marginally related to mortality rate. For coronary artery bypass surgeries, resection of abdominal aortic aneurysms, partial gastrectomies, and colectomies, physician volume is more significant than hospital volume, but hospital volume is marginally significant. Annual hospital volume thresholds for these data appear to exist at approximately 5 procedures for partial gastrectomies, 40 procedures for colectomies, and 170 procedures for total cholecystectomies. (JAMA. 1989;262:503-510)
Contingent work is an increasingly integral part of the world of work, affecting firms' abilities to accumulate knowledge, create value, and establish competitive advantage. Although its growing use reflects a belief that firms can reduce cost structures and increase strategic flexibility, we suggest that in certain contexts, such as dynamic environments, contingent work can be a means of accumulating and creating valuable knowledge. We also discuss implications for other forms of permeable organizational boundaries.
Members of organizations spend considerable time, effort, and ingenuity attempting to influence decision makers. Such influence activities may bring benefits to the organization, but they also involve real costs. This essay offers an economic rationale for such influence activity as representing rational, self-interested behavior in the presence of informational asymmetries and an analysis of how the design of the organization's structure and polices should respond to the incentives for attempting influence. It is posited that information valuable for the organization's decision making is directly available only to members of the organization who have some personal stake in the decisions. These individuals may then have an incentive to try to manipulate the information they develop and provide in order to influence the resulting decision to their benefits. This can be costly both in degrading the quality of decision making and in diverting the attention and effort of the organization's members from more productive activities. The organization has three different methods it can employ to discourage excessive influence activities and to encourage more directly productive uses of time and effort. It can limit access to decision makers and participation in decision making; it can alter its decision-making criteria to favor those performing well in productive activities; and it can provide direct financial incentives to encourage the desired allocation of effort. It is shown that an efficiently deisgned organization will use such financial incentives only as a last resort. Instead, it will always first alter its decision-participation polices and decision-making criteria.
Productive scientists tend to hold jobs at prestigious university departments, but it is unclear whether this is because good departments hire the best scientists or because good departments encourage and facilitate research productivity. To resolve this issue, we studied the antecedents and consequences of 179 job changes by chemists, biologists, physicists, and mathematicians. Those who were upwardly mobile showed substantial increases in their rate of publication and in the rate of citation to those publications, while those who were downwardly mobile showed substantial decreases in productivity. Earlier analyses of these job changes found only a small effect of prior productivity on destination prestige. These results suggest that the effect of department affiliation on productivity is more important than the effect of productivity on departmental affiliation.
This study investigated the communication behaviors and performances of 50 R&D project groups that varied in terms of group longevity, as measured by the average length of time project members had worked together. Analyses revealed that project groups became increasingly isolated from key information sources both within and outside their organizations with increasing stability in project membership. Such reductions in project communication were also shown to affect adversely the technical performance of project groups. Furthermore, variations in communication activities were more associated with the tenure composition of project groups than with the project tenures of individual engineers. These findings are presented and discussed in the more general terms of what happens in project groups with increasing group longevity.
This paper elucidates the underlying economics of the resource-based view of competitive advantage and integrates existing perspectives into a parsimonious model of resources and firm performance. The essence of this model is that four conditions underlie sustained competitive advantage, all of which must be met. These include superior resources (heterogeneity within an industry), ex post limits to competition, imperfect resource mobility, and ex ante limits to competition. In the concluding section, applications of the model for both single business strategy and corporate strategy are discussed.