We randomize advertising content motivated by the psychology literature on sympathy generation and framing effects in mailings to about 185,000 prospective new donors in India. We find significant impact on the number of donors and amounts donated consistent with sympathy biases such as the "identifiable victim," "in-group" and "reference dependence." A monthly reframing of the ask amount increases donors and amount donated relative to daily reframing. A second field experiment targeted to past donors, finds that the effect of sympathy bias on giving is smaller in percentage terms but statistically and economically highly significant in terms of the magnitude of additional dollars raised. Methodologically, the paper complements the work of behavioral scholars by adopting an empirical researchers' lens of measuring relative effect sizes and economic relevance of multiple behavioral theoretical constructs in the sympathy bias and charity domain within one field setting. Beyond the benefit of conceptual replications, the effect sizes provide guidance to managers on which behavioral theories are most managerially and economically relevant when developing advertising content.
The globalization of markets and business operations is a trend that will continue strongly in the coming decades. One inescapable aspect of globalization has been the trend toward global outsourcing, especially that of knowledgebased services. Due to firms' compulsion to reduce costs in the developed world, the issue is not if a particular firm will outsource or offshore work but when it will outsource it and how effectively it will leverage outsourcing to achieve superior competitive advantage. An important implication of the outsourcing of knowledge-based services is the management of intellectual property (IP). Managers and researchers alike are interested in understanding the effects of global outsourcing of knowledge-based services on the management of IP. The challenge of accessing, exploiting, and defending IP in global outsourcing relationships is first examined in this paper. IP can be managed by balancing the trust and control and verification in the outsourcing relationship. Given that defending IP is a major concern for outsourcing firms, the moderating roles of multitier suppliers, supplier country legal regimes, and global supplier communities of practice on defending IP is examined in detail through moderating effect propositions. Finally, the paper examines the effect of accessing, defending, and exploiting IP in global outsourcing relationships on the generation of incremental and radical innovation for the outsourcing firm. This research tries to extend current academic research on global outsourcing in three ways. First, it offers a framework to understand the management of the buyer-seller relationship in the global outsourcing of knowledge-based services and its relationship to the management of IP and innovation generation. Second, the framework takes a broader perspective of outsourcing and innovation generation, including globalization, tiered suppliers, supplier country legal regimes, and global supplier communities of practice on defending IP. Third the research examines the effect of accessing, exploitation, and defense of IP on generation of incremental and radical innovation for the outsourcing firm. Managerial implications of this research and future research directions are also discussed.
The past few decades have witnessed a significant increase in the number of cross-border strategic alliances among firms. We focus on the role of alliance expertise (alliance experience and diversity of partners) and alliance governance (horizontal vs. vertical alliances and joint venture vs. other alliances) in global innovation generation. We also examine the effect of these variables on the financial performance of the focal firm. The conceptual model is tested using an empirical analysis of cross-border alliances formed by U.S. pharmaceutical companies from 1985 to 2008. We find that while prior alliance experience has a positive association with global innovation generation, diversity of partners has a negative relationship. In addition, whether the alliance is horizontal or vertical has no bearing on the innovation generation, but joint ventures are associated with more global innovation generation than other types of alliances. Finally, as global innovation generation increases, financial performance increases up to a point but thereafter exhibits a negative relationship.
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