Beyond Grey Pinstripes

     

U. of Maryland (Smith)

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U. of Maryland (Smith) 3570E Van Munching Hall
College Park, MD, 20742
United States
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Demographic Information

Number of full-time MBA students (2011): 

124

Number of part-time MBA students (2011): 

442

Total duration of full-time MBA program: 

21 months

MBA faculty (Fall 2010): 

313

Females as percent of student body: 

39%
Who Are the Students? See what percentage of the 2010-2011 graduating class came to this MBA program from the private sector, the non-profit sector and government jobs
 
Private Sector (83%)
 
Non-profit (10%)
 
Government (7%)


Description of MBA Program: 

Organizations are increasingly connected globally in unprecedented ways.  The blurring of boundaries and the impact of technology has prompted innovation that seeks to balance profit with societal benefits, creating long-term value for all stakeholders. 


At the Robert H. Smith School of Business, we recognize that the changing role of business  requires a new kind of leader – one who is skilled in thinking critically, recognizing the complexities of the global economy, and understanding the contexts in which today’s companies must operate.  



In the classroom, Smith MBA students are exposed to social, ethical and environmental issues that are integrated within core courses. We know that teaching these concepts is inherently cross-discipline.  Many new elective courses have been launched as well.  Our faculty research is receiving recognition: Smith ranked #2 in Intellectual Capital in Bloomberg Businessweek’s 2010 ranking.  A portion of this research focuses directly on important current topics such as corporate governance and compensation, multinationals and emerging markets, and Wal-Mart’s effect on local retailers.    


Outside the classroom, Smith MBA students have a wide range of opportunities to experience real-world application.  Smith students can experiment with new business models, using innovative technologies and critical thinking to explore sustainable solutions to social market failures, both locally and around the globe.  Many of these opportunities are coordinated by the Center for Social Value Creation, a center that supports the Smith School’s vision to use business as a vehicle for both economic prosperity and transformational social change.  For example, the Grassroots.org Social Venture Consulting Program matches MBA students with nonprofit organizations and social enterprises to spend a semester working on challenges critical to the operational goals of the organization.  The Global Impact Program places students in countries with emerging economies where students use their skills to address global challenges.  Students have the option of pursing their own start-up ideas as social entrepreneurs with the support of the Center for Social Value Creation and the Dingman Center for Entrepreneurship.  Additional support for and teaching on social entrepreneurship is provided through the Smith School’s participation as an AshokaU Changemaker Campus.  


Moreover, Smith MBA students proactively engage each other to advance their interests.  Students run clubs including the Smith Chapter of Net Impact, the Energy Club, and the Emerging Markets Association.  We look forward each year to our annual Social Enterprise Symposium as we do to hosting guest speakers such as Stanley Litow, Dr. Muhammad Yunus and Barbara Krumsiek.  


We should also note Smith’s proximity to Washington, D.C.  We are located just outside the city and we also have a campus at the Ronald Reagan Building in D.C.  This proximity draws a student base with such diverse backgrounds from international development to environmental management and policy; it also provides opportunities to partner with premier organizations such as USAID and more.



How does the MBA program 'walk the talk' of social and environmental impact?: 

The Robert H. Smith School of Business in partnership with the University of Maryland's Office of Sustainability and President’s office has worked hard to support and advance environmental performance, economic prosperity, and social equality.  This work has fostered a culture of sustainability and equality at the Smith School and throughout the campus.  


The University of Maryland is also proud of the recognition it has received.  The University is among 18 colleges and universities to make the Princeton Review's Green College Honor Roll for 2011; it is also recognized as a Campus Sustainability Leader on the College Sustainability Report Card.  Lastly, we won Climate Culture’s America's Greenest Campus Contest in October 2009 because of student, faculty, and staff activism.  For a snapshot of our campus’ achievements, please visit the Office of Sustainability’s webpage.  For a detailed account of these activities, please see the Office of Sustainability’s Campus Sustainability Report 2010.
 


The Smith School’s building, Van Munching Hall, was the first of three buildings that have undergone a comprehensive energy management audit.  Our building served as a pilot for what is now a continued program seeking to monitor and decrease energy usage.  



Within the MBA program at Smith, we are increasingly incorporating social and environmental activities into our daily life.  The Smith MBA Association recently appointed a Chair of Social Impact to oversee a Social Impact Committee with the purpose to work with the MBAA and the administration on providing more volunteer opportunities for Smith MBAs, reducing the environmental footprint of Van Munching Hall, and increasing the MBA program’s connection with the local community.  The range of activities is diverse including everything from Thanksgiving food drives to single stream recycling.  Additionally, Smith students voluntarily hosted several discussion groups regarding the MBA Oath which resulted in a deeper understanding of accountability in ethics.

Academic Department

Course Name: Brand Management
Instructor: R. Hamilton

Some of the most valuable assets managed by companies today are the brand names associated with their products and services. Strong brands can influence purchase decisions by communicating the value of and providing differentiation for products and services. Effective brand management is critical to maintaining the long-term profitability of products and services. This course is designed to develop students’ understanding of the importance of brand equity as well as how to build, measure and manage brand equity. Topics include understanding brands from the customer’s perspective, building brand equity, measuring brand equity, leveraging brand equity, managing brand portfolios and managing brands over time. The course is composed of lectures and class discussions with students evaluated based on class participation, individual assignments, and a team project. Topics related to social value creation are how social and environmental issues impact brand strategy, the impact of products development/design/pricing on consumers, niche marketing and its implications for business strategy, and managing brands across geographies and cultures, cultural impacs of branding, and branding of non-profits and NGOs. The case (Product)Red is discussed.

Course Name: Competing in Emerging Markets
Instructor: V. Jain

As the world’s center of gravity shifts decisively in favor of emerging markets, competitive challenges and opportunities are being continually and dramatically transformed. The course offers a fairly comprehensive look at competing in and with emerging markets, especially the BRIC countries (Brazil, Russia, India, and China), as they integrate into the global economy. We will examine the strategies of world-leading companies from both the developed world and the emerging markets. Teaching methods will include a blend of readings, in-class discussion of six cases, mini lectures, multimedia presentations, and a substantive team project. The focus is on adjusting business activities in various markets and to understand the unique marketing, financial, logistical, and cultural structures of these economies. Course objectives include: the development of globalization, BRICs, competing in emerging markets, leveraging emerging markets, and managing risks associated with emerging markets. Some titles of cases discussed are “Bunge: Food, Fuel, and World Markets” and “Monsanto: Realizing Biotech Value in Brazil.” Environmental factors in decision-making frameworks are also considered.

Course Name: Corporate Governance and Performance
Instructor: L. Senbet

This course deals with corporate governance and its impact on shareholder value. It uses an agency paradigm to provide your in-depth understanding of real world issues in corporate governance and how they influence capital allocation and performance of corporations. Among other things, an in-depth understanding of these issues – conceptual as well as practioner perspective – equips you with knowledge (a) to be on track for a well-rounded CFO in getting you to appreciate what it takes to create value for shareholders, (b) to become a more sophisticated investor and investment advisor, (c) to be an advisor to a board or an employee in a governance staff serving the board, (d) to work in a variety of consulting firms and governance institutions, and (e) to protect yourself against bad governance and protect your job, etc. Specific topics covered in this course include: Conceptual foundation for corporate governance, executive compensation: design features, practices, and reforms, the perverse incentives of stock options and controversy over compensation practices, shareholder activism and “say on pay,” corporate governance failures and anatomy of recent financial crises/scandals, the essentials of the Sarbanes Oxley Act and governance/regulatory reforms, global trends: corporate governance around the world, and the basics of mutual fund governance.

Course Name: Cross-cultural Communication and Teamwork
Instructor: J. Gebhardt, S. Tangirala, D. Shapiro, H. Liao

The emerging economy necessitates more frequent interactions and interdependencies between organizations and amongst employees from different cultures. Students try to understand why individual reactions to management styles differ across the global, enhance their cultural intelligence, and learn to design, implement, and manage multinational teams. The purpose of the course is to provide future managers with a sound basis for developing such competencies. The course relies on lectures, group discussions, self-assessment, and student-based projects to convey knowledge and information. With regards to social value, in one version, one class session is devoted to business ethical decision making. The cases discussed at this session are “When Ethics Collide: Managing Conflict across Cultures”, “Hitting the Wall: Nike and International Labor Practices”, “Google and the Government of China: A Case Study in Cross-cultural Negotiations”. In another version of the class, child labor, labor practices, censorship and human rights in an international context are discussed.

Course Name: Doing Business in Brazil: Emerging Global Companies
Instructor: P. Prochno

This course is one of several Global Studies courses, which are designed to give students a deep international experience where social, cultural, and public awareness intersect with business. Composed of pre-departure seminars and an immersion trip, students explore the challenges as well as opportunities in doing business in Brazil. After more than twenty years of economic turbulence at the end of the 20th century, Brazil seems to be on the right path for sustained growth. The focus of the course is on multinational companies as well as domestic ones at different stages in their globalization process. Some discussion centers upon poverty imbalance and crime and how such problems affect business. In addition to lectures, students visit companies and conduct informational interviews with senior management. The goal of the course is to provide students with hands on experience about Brazil and expand their business network.

Course Name: Doing Business in China: China’s Energy and Environmental Issues
Instructor: G. Bakshi, Z. Chen

This course is one of several Global Studies courses, which are designed to give students a deep international experience where social, cultural, and public awareness intersect with business. Composed of pre-departure seminars and an immersion trip, the focus of this course is to examine how China’s unprecedented economic development has impacted the country’s energy demand and environmental protection efforts. Students explore the coal industry, which accounts for two-thirds of China’s energy supply, as well the recent push for alternative energy sources such as hydroelectric power and solar power. Sight excursions include the Datong Coal Mine, one of the largest coal mining sites in the country, and the Three-gorge Dam, among others. The course furthermore covers topics of water management, pollution and environmental protection issues, with the highlight being China’s massive South-to-North River Diversion (SNWD) project, aiming to bring water to the arid north plains. Lastly, students have the chance to explore China’s energy and environmental protection opportunities through company visits and factory excursions.

Course Name: Doing Business in Costa Rica: The Business of Public Health
Instructor: M. Carrier

This course is one of several Global Studies courses, which are designed to give students a deep international experience where social, cultural, and public awareness intersect with business. Composed of pre-departure seminars and an immersion trip, students look at healthcare from a theoretical as well as practical view. Topics covered include answering questions such as what is health, what obligations do nations have to provide healthcare, as well as the role of business in this process. Costa Rica is an interesting case since as a developing country by many standards, it boasts health statistics that are as good as, or better than, those of developed countries. The course looks at how the healthcare system operates in the historical and cultural aspects of Costa Rica while also emphasizing the role of the natural environment as an economic resource and crucial component in prevention and public health solutions in healthcare. Lastly, the course draws parallels to the healthcare in the United States and challenges students to think about how to deliver an equitable and cost effective system. Students visit various companies and organizations within the country as well as participate in excursions highlighting Costa Rica’s natural environment.

Course Name: Doing Business in India: Competitive Advantage through an India Strategy
Instructor: S. Mithas

This course is one of several Global Studies courses, which are designed to give students a deep international experience where social, cultural, and public awareness intersect with the business sector. Composed of pre-departure seminars and an immersion abroad trip, students look at why India is one of the largest outsourcing economies of the globe. It is imperative for business leaders to understand why India has become so successful and why it will play a dominant role in international business in the future. As the largest democracy in the world with a high GDP growth rate and a growing middle class, India is a significant global source and market. Students will look at opportunities of entrepreneurship and social value creation as well as the challenges such opportunities impose. The course looks at how businesses and non-profits operate in India for competitive success. Students have the opportunity to visit various companies and engage in discussions with top management. In the past year, students have visited an orphanage and helped develop a fund to support the children there.

Course Name: Doing Business in Israel: Global Leadership Development
Instructor: G. Chen, A. Epstein, U. Hann

The emerging global economy necessitates more frequent interactions and inter-dependencies between organizations from different cultures and nationalities than ever before. This new reality has profound implications to becoming effective leaders in today's global work organizations. The main purposes of this course are thus to enhance managers' (1) understanding of how cultural differences affect leadership effectiveness, and (2) develop actual leadership competencies needed to be successful in today's global economy. Each team of U.S. MBA students is paired with Technion MBA students to develop a feasibility study and commercialization plan for Technion owned intellectual property as part of a course on IP Commercialization. Some of these teams look at projects related to agro-technology, water management, and social issues surrounding the Middle East.

Course Name: Doing Business in South Africa: Sports Marketing
Instructor: H. Boyd

This course is one of several Global Studies courses, which are designed to give students a deep international experience where social, cultural, and public awareness intersect with the business sector. Composed of pre-departure seminars and an immersion abroad trip, students look at business opportunities in one of the strongest and fasted growing economies in Africa. Most topics are slated towards looking at how South Africa is able to host the 2010 FIFA World Championships, and how holding a major world event demonstrates a new promise for Africa. Students examine many social issues that dominate the country such as poverty and HIV/AIDS and how these issues affect business. Particular attention is paid to discussions on Black Social Empowerment (BEE) initiatives, which have been implemented to address historically disadvantaged groups in South Africa. The aim of the BEE scorecard is to encourage companies to increase employment and ownership stake throughout various industries. Students have the opportunity to visit various companies and have one-on-one time with senior executives.

Pages

Type of Offering

Dispelling the Myths about Nonprofits, Foundations and Associations
Date: December, 2010

Have you ever wondered what working in the nonprofit sector would be like? Perhaps you have heard stories about what kind of income you can earn, or what kind of people you will be working with? Perhaps you are worried about transitioning from for-profit business to the nonprofit sector and losing your current career trajectory? Join a panel of experts from Alumni Career Services to discuss how to apply your business skills and education to careers in nonprofits, foundations and associations.

Social Enterprise Symposium
Date: March, 2010

The Social Enterprise Symposium introduces students to alternative ways of doing business and opportunities to use their knowledge and creativity for impactful, sustainable social good. The target audience ranges from students who have not had exposure to social entrepreneurship. The Social Enterprise Symposium is interactive, inspiring and enlightening. Our goal is for students to leave with tangible ways to get involved with social enterprises and the social entrepreneurship movement.

Gurcharan Das: The Difficulty of Being Good
Date: September, 2010

Author Gurcharan Das, former CEO of Proctor & Gamble India and Managing Director of P&G Worldwide, will share insights from his recent book, The Difficulty of Being Good: On the Subtle Art of Dharma. The book explores questions of moral and ethical dilemmas, framed by the 2,000 year-old Sanskrit epic, Mahabharata. Sponsored by the Smith School's CIBER.

ThoughtLeadership@Smith: Designing Mission-Driven Organizations
Date: March, 2010

Most people want their organizations to be mission-driven, but do you have the know-how and skills to make it happen? Robert Sheehan, Academic Director of Executive MBA Programs and author of a new book, Mission Impact, shows how to craft a vision aligned with your organization’s mission. Learn how to design strategic goals that will inspire your employees, create exceptional value for all stakeholders and move your organization toward maximum impact.

Social Media: Game Changer, or World Changer?
Date: November, 2010

Everyone knows that social media have revolutionized the way companies do business, as they seek out new and deeper ways to engage their consumers. But can social media also change the world? This two-part series will introduce you to young entrepreneurs working for and with organizations that are indeed changing the world, one Tweet at a time.

ThoughtLeadership@Smith Baltimore
Date: November, 2009

Albert “Pete” Kyle, Smith Chair Professor of Finance, Can the Financial System Support Growth?

Global Challenge
Type: Competition
Date: April, 2010

The Global Challenge is a unique opportunity to devise an entirely new public-private alliance--one that will allow a private enterprise to contribute to international development initiatives in a specified region. We invite MBA and graduate students from across the nation to employ their creativity, research skills, business acumen and passion for seeking solutions that advance growth and reduce poverty. The Global Challenge is brought to you by USAID’s Business Growth Initiative and the Smith School’s Center for Social Value Creation and Center for International Business Education and Research.

Dr. Muhammad Yunus: Building Social Business
Date: May, 2010

Dr. Yunus discussed his newest book, Building Social Business. In this book, Yunus shows how social business has gone from being a theory to an inspiring practice, adopted by leading corporations, entrepreneurs, and social activists across Asia, South America, Europe and the US. He demonstrates how social business transforms lives; offers practical guidance for those who want to create social businesses of their own; explains how public and corporate policies must adapt to make room for the social business model; and shows why social business holds the potential to redeem the failed promise of free-market enterprise.

Tuesday Policy Forum
Date: October, 2009

Join the Center for Social Value Creation's Executive Director Melissa Carrier for a discussion on The Business of Social Impact.

Leadership for a Better World
Date: September, 2009

The Center for Social Value Creation will join the Center for International Business Education and Research (CIBER) in hosting a summit, “Leadership for a Better World: Creating Social Value through Innovation,” at the Ronald Reagan Building in Washington, D.C. The day-long summit featured a series of high profile thought leaders on the role of business in society and fostering social change through models of innovation. Academics, business leaders, nonprofit executives and policy makers were invited to attend and join in the discourse.

Fostering a Culture of Ethics at the Executive Level: How the 2009 mortgage banking crisis could have been avoided
Date: April, 2010

Barbara J. Krumsiek is Chair, CEO and President of Calvert Group, Ltd., a leading investment management and mutual fund firm headquartered in Bethesda, Maryland. Calvert manages approximately $16 billion in assets across 41 mutual funds, including award-winning fixed income portfolios, and a full family of equities funds including nationally recognized socially responsible mutual funds. At Calvert, she has presided over a period of dramatic growth and increased visibility both within the socially-responsible investment sector and in the financial services industry as a whole. Under her leadership, the firm has achieved significant revenue growth and sales have grown seven-fold.

Social Enterprise Symposium
Date: March, 2011

The Social Enterprise Symposium introduces students to alternative ways of doing business and opportunities to use their knowledge and creativity for impactful, sustainable social good. The target audience ranges from students who have not had exposure to social entrepreneurship. The Social Enterprise Symposium is interactive, inspiring and enlightening. Our goal is for students to leave with tangible ways to get involved with social enterprises and the social entrepreneurship movement.

Eroding Public Trust in Leadership
Date: March, 2010

The Leadership Scholars Network is pleased to present its second program of 2009-10: “Eroding Public Trust in the Leadership of Our Major Institutions and Corporations.” Come learn from and engage with faculty colleagues about the implications of eroding trust in leadership and how we can develop trustworthy leaders.

Going Green to Save Green: A Panel Discussion on Sustainable Supply Chain Management
Date: October, 2010

Sustainability has become a necessity for supply chain managers. Consumer pressure, socially responsible investors and an increased focus on regulations and standards have driven organizations to re-examine their supply chain practices. Now economic goals are coupled with social and environmental ones with an understanding that all three lead to long-term economic success. “Going green” is no longer a trend, but rather a competitive advantage. Co-sponsored by the Smith School's Supply Chain & Operations Club and Net Impact.

Daybreak Discovery: Economic Growth Alliances in the Asia & Middle East Regions
Date: January, 2010

Please join the Business Growth Initiative project of USAID at its first Daybreak Discovery event of 2010!The event will focus on the topic of economic growth alliances, particularly in the Asia and Middle East (A&ME) regions. The research report, authored by Julie Lostumbo, had the objective of assessing the effectiveness of existing public-private alliances.

CIBER Symposium featuring Mechai Viravaidya
Date: October, 2010

Mechai Viravaidya served in the Thai government as a Senator and as a member of the cabinet on four occasions., but he is most well known as the founder of the Population and Community Development Association (PDA), one of Thailand's largest and most successful private, nonprofit, development organizations. Since 1974, PDA has initiated community-based family planning services, innovative poverty reduction and rural education programs, large-scale rural development and environmental programs, as well as groundbreaking HIV/AIDS prevention activities throughout Thailand.

Bollywood Takes on India's Education System
Date: October, 2010

Join Dr. Madhav Chavan, Founder of Pratham, and Mr. Anupam Kher, a leading Bollywood actor, as they discuss their roles in addressing India's child illiteracy. Did you know? 35 percent of India's population is 15 years old or younger. 100 million children in India cannot read or write despite going to school. India is home to a third of the world's illiterate children. With the aging population in the western world, there will be increasing need for these economies to depend on young workers from around the world including from India.

Net Impact Speaker Series - Shannon Schuyler, PricewaterhouseCoopers
Date: November, 2009

As Managing Director of Corporate Responsibility, Shannon oversees the actions, programs and initiatives for the firm's internal strategy around PwC’s four corporate responsibility pillars: Marketplace, Community, People, and Environment. She interacts with firm leadership, locally, nationally and globally to identify and implement CR strategies, facilitate discussions with clients on their approach to CR, interact with external vendors and national non-profit partners to foster meaningful relationships, and communicate PwC’s CR commitment and strategy.

Market Transition and the Future of U.S. Energy
Date: October, 2009

Explore topics surrounding the transition to renewable sources of energy, including nuclear and smart-grid technology.

Pitch Dingman
Type: Competition
Date: October, 2010

Students can pitch business ideas with a social mission through the Center’s Pitch Dingman program. In addition, a portion of the Smith E-Fund, which provides seed stage funding to members of the University of Maryland community, has been allotted specifically for business enterprises that have a social focus.

Pages

Are foreign IT workers Cheaper? United States’ Visa Policies and Compensation of Information Technology Professionals
Author(s): Mithas, S.; Lucas, H.C.

The authors discuss implications of this study for crafting informed visa- and immigration-related policies for staffing practices of firms, for human capital investments by IT professionals, and for U.S. government policy. Abstract: The use of H-1B and other work visas to hire foreign information technology (IT) professionals in the United States has attracted significant controversy and policy debates. On one hand, hiring high-skill foreign IT professionals on work visas can be advantageous for U.S. firms and the overall economy. On the other hand, high-skill immigration can adversely impact the wages of foreign and American IT professionals. This study uses data on skills and compensation of more than 50,000 IT professionals in the United States over the period 2000–2005 to study patterns in compensation of foreign and American IT professionals to inform these debates. Contrary to the popular belief that foreign workers are a cheap source of labor for U.S. firms, we find that after controlling for their human capital attributes, foreign IT professionals (those without U.S. citizenship and those with H-1B or other work visas) earn a salary premium when compared with IT professionals with U.S. citizenship. The salary premiums for non-U.S. citizens and for those on work visas fluctuate in response to supply shocks created by the annual caps on new H-1B visas. Setting lower and fully utilized annual caps results in higher salary premiums for non-U.S. citizens and those with work visas. We discuss implications of this study for crafting informed visa- and immigration-related policies by the U.S. government, for staffing practices of firms, and for human capital investments by IT professionals.

Journal Title: Management Science Volume: 56 Edition: 5 Page Numbers: 745-765
Executive Compensation: An Overview of Research on Corporate Practices and Proposed Reform
Author(s): Faulkender, Michael; Lemma Senbet; N. Prabhala

Executive compensation strategies for corporations' Boards of Directors are organized and discussed around four key issues. Conclusions for policymakers and reformers are also proposed. Abstract: Two landmark episodes of the last decade, the 2001 dot-com crisis and the 2008 bursting of the housing bubble, have drawn attention to the size and structure of executive pay plans and their possible role in propagating or worsening the crises. In this policy-oriented piece, the authors discuss the key issues in the debate on executive pay and express their support for a number of reform proposals that have been advanced in academic and policy circles. The article begins by dividing the compensation debate into four key issues: First, while public outrage has focused on the size of the pay packages at failed financial institutions, it is perhaps more important to focus on the structure of compensation and the process of setting compensation to prevent future crises. An effective pay package is not necessarily the one most laden with equity incentives. Too much equity exposure can cause excessive risk-taking, manipulation, and shift executive attention away from true value creation. Second, incentive structures should incorporate indexing and clawbacks to guard against the possibility that performance benchmarks are rewarding luck more than sustainable, long-run performance. Third, the compensation-setting process should be placed in the hands of shareholders, boards, and advisors who are not only independent but also possess ample expertise in the financial instruments used to incentivize pay. Fourth and finally, any proposals for changes in compensation design or the taxation of compensation should anticipate how executives will alter their behavior in response to the changes, and evaluate the effect of the changes net of such offsetting responses.

Journal Title: Journal of Applied Corporate Finance Volume: Edition: Page Numbers:
Getting everyone on board: The role of inspirational leadership in geographically dispersed teams
Author(s): Hui Liao

As the trend to a more globalized world, and, thus, a more globalized workforce increases, this research provides ways inspirational leaders can remain relationally inspirational in a geographically disbursed context. One can also expect an increase in the quality of employee work/life balance as a global team becomes more productive and insprired. Abstract: A rich body of research in the area of leadership has examined the influence of transformational/charismatic forms of leadership on employees' motivation, attitudes, and behaviors. This research is based on the assumption that leaders are able to influence followers based on close, sustained, and personalized contact with them. However, new organizational realities are challenging this assumption. Drawing on the intersections between social identity theory and leadership research, this study highlights the importance of inspirational leaders who, by developing socialized relationships with team members, can foster attitudes that are critical for team effectiveness in geographically dispersed settings. Findings support the role of this form of leadership in dispersed settings. Inspirational leadership emerged as a significant predictor of individuals' trust in team members and commitment to the team. Further, the positive relationship between inspirational leadership and individuals' commitment to the team and trust in team members was strengthened in teams that were more dispersed suggesting that inspirational leaders are important in all contexts but that their importance is underscored in highly dispersed contexts. Finally, shared perceptions of trust and commitment predicted performance at the team level.

Journal Title: Organization Science Volume: 20 Edition: 1 Page Numbers: 240-252
Inside the black box: the role and composition of compensation peer groups
Author(s): Michael Faulkender

This article contributes an interesting insight into the relationship between CEO compensation and their peer groups, among other factors. Abstract: This paper considers the features of the newly disclosed compensation peer groups and demonstrates their significant role in explaining variations in chief executive officer (CEO) compensation beyond that of other benchmarks such as the industry-size peers. After controlling for industry, size, visibility, CEO responsibility, and talent flows, we find that firms appear to select highly paid peers to justify their CEO compensation and this effect is stronger in firms where the compensation peer group is smaller, where the CEO is the chairman of the board of directors, where the CEO has longer tenure, and where directors are busier serving on multiple boards.

Journal Title: Journal of Financial Economics Volume: 96 Edition: Page Numbers: 257-270
MNC subsidiaries and country risk: Internalization as a safeguard against weak external institutions
Author(s): Anil Gupta

Capital flows to countries that need it most are low when a country's risk is so high. However, as this research suggest, MNCs have helped lead the way into risky countries. A more involved discussion on how MNCs deal with country risk is included. Abstract: Country risk and foreign direct investment (FDI) are negatively associated, yet considerations such as rapid economic growth and lower factor costs are driving multinational corporations (MNCs) to significantly increase FDI into high-risk countries. How do MNCs deal with country risk on an ongoing basis after establishing majority or wholly owned operations? Analyses of 1983-96 data on a large sample of subsidiaries support our prediction that, under uncertainty, MNCs increase the extent of their within-firm sales. Trade internalization as a response to country risk is weaker for MNCs having greater experience deploying political strategies.

Journal Title: Academy of Management Journal Volume: 52 Edition: Page Numbers:
Network Composition, Collaborative Ties and Upgrading In Emerging Market Firms:Lessons from the Argentine Autoparts
Author(s): McDermott, Gerald A; Rafael A. Corredoira

This research digs deeper into the role of firms as a catalyst for economic development in emerging markets by taking a look at network relationships, namely in light of the social impacts of public policy (economic liberalization). Abstract: What types of relational and institutional mechanisms shape knowledge flows and the upgrading capabilities of emerging-market firms in the face of economic liberalization? We analyze the Argentine autoparts sector to distinguish the relative impact of different types of network relationships on a firm's process and product upgrading. A few social ties to international assemblers appear to be most beneficial for local suppliers, although they may be insufficient to compensate fully for the negative effect of being located in a lower tier. Supplier–customer relationships that are part of regular, disciplined discussions for product and process improvements appear to be especially beneficial for upgrading.

Journal Title: Journal of International Business Studies Volume: 41 Edition: Page Numbers: 308-329
Recombining to Compete in Global Markets: How Public Policy Can Improve Upgrading in Emerging Market Societies
Author(s): McDermott, Gerald A; Rafael A. Corredoira

Set in an emerging market context, this article addresses the institutional role of public-private partnerships; social impacts by firms on public policy, technology and knowledge transfer, and property rights; and wealth distribution among countries. Abstract:How do backward societies reinvent themselves and build new innovative capacities to enable their firms to upgrade and compete in international markets? Much of the work on development tends to rely on theories of relative endowments, be they natural resources, social capital or optimal property rights. Yet emerging market societies often lack these endowments. The talk brings together recent views on knowledge creation and institutional change, arguing that different political approaches to market reform and institution building have the ability to reconfigure the relationships between previously antagonistic groups to trigger innovations at both the policy making and firm levels. The setting is the winemaking industry in two Argentine provinces, Mendoza and San Juan. Using a unique field survey of about 200 firms in both provinces, I show how firms learn not only from one another but especially via new public-private institutions that Mendoza built in the 1990s. Institutions bring value to firm level upgrading not simply by offering new supply-side resources but especially in helping reconfigure socio-economic relationships. Governments can aid upgrading and competitiveness, especially in emerging markets, by building public-private institutions that act as social and knowledge bridges between distinct producer communities.

Journal Title: Academy of Mangement Journal Volume: 52 Edition: 6 Page Numbers: 1270-1296
Strategic human resource management in service context: Taking care of business by taking care of employees and customers
Author(s): Hui Liao

This research draws connections between employee-focused environments and increased unit performance, employee significance, and staff care issues. Abstract: This study focuses on strategic human resource management, with an emphasis on creating a customer-focused and an employee-focused environment. Results of the study generally suggest that creating a customer-focused environment results in increased unit performance in a service context. In addition, creating a climate with a strong concern for employees can result in increased customer-focused behaviors, which also increases unit performance. Hence, the results suggest that creating a climate with a strong concern for customers and a strong concern for employees can result in increased unit performance.

Journal Title: Personnel Psychology Volume: Edition: Page Numbers:
The Contingent Effects of Quality Signaling: Evidence from the Indian Offshore IT Services Industry
Author(s): G. Gao; A. Gopal ; R. Agarwal

Set in India, this research provides evidence on the factors that lead to a firm's effective quality signal via certification. Implications for strategic trade-offs that managers need to make in an emerging market, software service firm context are also discussed. Abstract: We examine the heterogeneous returns to third-party quality signals in the context of the Indian software services industry. Prior theory has argued that quality certification is important in markets characterized by information asymmetry. However, there is limited understanding of the contingent factors that influence the efficacy of the quality signal. We focus on capability maturity model (CMM) certification, which is granted on the basis of a rigorous audit of software vendor's internal quality-oriented software construction practices, as a signal of unobservable quality. Drawing upon prior research in strategy and economics, we theorize that the impacts of CMM certification on a vendor's export performance are conditional on factors reflecting the vendor's strategy (diversification and location) and its competitive environment (the extent of CMM penetration in the vendor's competition). Analysis of panel data supports our predictions related to the contingent value of CMM certification, and shows that a software service provider gains more from certification in terms of its software exports when its service offerings are diversified, when it chooses to locate away from a cluster of other software service firms, and when the extent of CMM penetration in the competition is low. This study extends prior research in the information value of a quality signal on a firm's demand side that has, for the most part, focused solely on direct effects. We discuss the implications of our findings for the strategic trade-offs that managers of software service firms need to make.

Journal Title: Management Science Volume: 56 Edition: 6 Page Numbers: 1012-1029
The Environmental Effects of Airline Carbon Emissions Taxation in the U.S.
Author(s): Dresner, M. ; Windle R.

The authors take a look at air traffic emissions taxes that the US airline firms face; they analyze in more detail the benefits and the costs and help prevent from an environmental regulation/policy standpoint any unintended consequences. Abstract: This study investigates how air traffic emissions taxes may impact carbon emissions in the US. The magnitude of emissions savings in the US domestic airline industry that would result from lower demand for air travel as taxes are levied and air fares increase is estimated. At the same time, the air-automobile substitution effect is considered and it is argued that some air travelers may divert to automobiles, thus increasing automobile carbon emissions. Both the analysis of the aggregate US domestic airline industry and the study of a sample of US domestic route markets indicate that potentially sizeable increases in automobile traffic and related emissions may substantially reduce the environmental benefits of air travel carbon emissions taxes. In some instances, carbon emissions may even increase in short-haul markets. Sensitivity analyses are performed to demonstrate the robustness of these findings.

Journal Title: Transportation Research Part D: Transport and Environment Volume: 15 Edition: 1 Page Numbers: 37-45
The Market for corporate Control and CEO compensation: Complements or substitutes?
Author(s): Cheng, S.

This article studies trends in corporate governence and CEO compensation. Abstract: We study the relation between firms’ internal governance mechanisms and the market for corporate control by examining how CEO compensation changed following the enactment of anti-takeover laws by various states in the 1980s. We find that CEOs are paid more after controlling for performance and their compensation is more sensitive to performance (both stock returns and accounting return-on-assets) following the enactment of these laws. We also find that the increased sensitivity to performance is attributable only to the “good luck” components of stock returns and accounting return-on-assets (defined as the positive components of performance attributed to market and industry factors). We interpret these findings as consistent with the view that the market for corporate control and CEO compensation are complementary governance mechanisms.

Journal Title: Contemporary Accounting Research Volume: 26 Edition: 3 Page Numbers: 701-728
WHEN DOES CROSS-CULTURAL MOTIVATION ENHANCE EXPATRIATE EFFECTIVENESS? A MULTILEVEL INVESTIGATION OF THE MODERATING ROLES OF SUBSIDIARY SUPPORT AND CULTURAL DISTANCE
Author(s): Chen, Gilad

Abstract: Evidence to improve expatriate job performance and participation by Departing from the emphasis on individual-level stress processes in prior expatriate research, we develop a multilevel model of expatriate cross-cultural motivation and effectiveness, which incorporates the influences of foreign subsidiary-level attributes. Analyses of multisource and multilevel data collected from 556 expatriates in 31 different foreign subsidiaries indicated that expatriate cross-cultural motivation was more positively related to work adjustment – and work adjustment more likely to mediate the positive relationship between cross-cultural motivation and job performance – when expatriates were assigned to foreign subsidiaries characterized by lower levels of subsidiary support and cultural distance.

Journal Title: Academy of Management Journal Volume: Edition: Page Numbers:
When Wal-Mart Enters: How Incumbent Retailers React and How This Affects Their Sales Outcomes
Author(s): Zhang

The authors provide insights to retailers' reactions to a well-publicized and oftentimes highly criticized event: the competitive entrance of Wal-Mart. The findings should help contribute to preserving and empowering incumbent retailers, which may further lead to stronger, richer communities and community experiences. Abstract: The authors examine incumbent retailers’ reactions to a Wal-Mart entry and the impact of these reactions on the retailers’ sales. They compile a unique dataset which represents a natural experiment consisting of incumbent supermarket, drug, and mass stores in the vicinity of seven Wal-Mart entries and control stores not exposed to the entries. The dataset includes weekly store movement data for 46 product categories before and after each entry and allows them to measure reactions and sales outcomes using a before-and-after-with-control-group analysis. They find that, overall, incumbents suffer significant sales losses due to Wal-Mart entry, but there is substantial variation across retail formats, stores, and categories both in incumbent reactions and in their sales outcomes. Moreover, they find that a retailer’s sales outcomes are significantly affected by its reactions, and the relationship between reactions and sales outcomes varies across retail formats. These findings provide valuable insights on how retailers in different formats can adjust their marketing mix to mitigate the impact of Wal-Mart entry.

Journal Title: Journal of Marketing Research Volume: 47 Edition: 4 Page Numbers: