This paper studies the strategy of entrepreneurs to finance their experimentation given the presence of adverse selection in capital markets. …Read More
Financing Experimentation
Innovation Opportunities and Risks
The Role of Organizational Sponsorship in Pioneering New Technology
Organizational sponsors foster young entrepreneurial firms by providing resources to increase survival rates. Sponsorship can be financial, as with tax incentive structures, public and private grant programs, or early stage private investment. …Read More
How Do Product Attributes and Reviews Moderate the Impact of Recommender Systems through Purchase Stages?
We investigate the impact of several different recommender algorithms (e.g., Amazon.com’s “Consumers who bought this item also bought”), commonly used in ecommerce and online services, on sales volume and diversity, using field experiment data on movie sales from a top retailer in North America. …Read More
Economics of Leveraged Buyouts: Theory and Evidence from the UK Private Equity Industry
Empirical analysis of a sample of companies with private equity (PE) ownership in the UK shows that PE firms act as deep-pocket investors for their portfolio companies, rescuing them if they fall in financial distress.…Read More
Competition, Technology Licensing-in, and Innovation
Although the relationship between competition and firm innovation has long been of scholarly interest, prior research has predominantly considered changes in internal research and development (R&D) as a strategic response to competitors’ actions.…Read More
The Impact of Acquisitions on Clinical Decisions: Evidence from Physician Practice Management Companies
Mergers and acquisitions are rapidly transforming the organization of physician services in the United States, raising concerns over the cost and the quality of health care. This paper studies how medical practice acquisitions by Physician Practice Management Companies (PPMCs) impact physician behavior and patient health.…Read More
The Short-run Effects of GDPR on Consumer Engagement and Search
In today’s connected world, individuals are no longer mere consumers of goods, information and services, but public producers of often valuable data. In fact, personal data is becoming such a core input that The Economist called it “the world’s most valuable resource” ahead of oil.…Read More
Does Private Equity Ownership Make Firms Cleaner? The Role Of Environmental Liability Risks
As VC firms have an acute interest in high-tech companies, they potentially bear substantial risk of patent litigation. In this project, we aim at looking into the following questions: how do ex-ante and ex-post patent litigation risks affect VC firms’ investment strategies and how those risks is propagated among all portfolio companies they have invested?…Read More
Artificial Intelligence and Drug Innovation: A Large Scale Examination of the Pharmaceutical Industry
Artificial Intelligence (AI) is playing an increasingly important role in the global economy and has transformed many business practices. As AI has advanced beyond the conventionally narrow domains, it is starting to exhibit characteristics of “general purpose technologies (GPT)” that are expected to change the nature of more business innovations and reduce their associated financial costs and time.…Read More
Progress and Setbacks: The Two Faces of Technology Emergence
Emerging technologies are an important driver of economic growth. However, the process of their emergence may not only be characterized by technological progress but also by setbacks. We offer a perspective on technology emergence that explicitly incorporates setbacks into the technology’s evolution and explains how industry participants may react to setbacks in emerging technologies.…Read More
Fostering Sustainability through Ecosystems for Renewable Energy in India
This paper focuses on promoting the sustainability of renewable energy ecosystems to ensure socio-economic development. This is critical for emerging economies where rising demand for energy is likely to deplete resources rapidly.…Read More
Watershed Moments, Cognitive Discontinuities, and Entrepreneurial Entry: The Case of New Space
In this paper, we explore how an industry’s watershed moments – vivid, publically salient, emotionally resonant events – can drive the emergence of a new market. Our empirical context is the New Space market, a growing number of new, private companies developing and using spaceflight-access technologies. …Read More
Higher Market Thickness Reduces Matching Rate in Online Platforms: Evidence from a Quasi-Experiment
Market thickness is a key parameter that can make or break a platform’s business model. Thicker markets can offer more opportunities for participants to meet and higher chances that a potential match would exist. …Read More
Risk Factors That Matter: Textual Analysis of Risk Disclosures for the Cross-Section of Returns
I exploit unsupervised machine learning and natural language processing techniques to elicit the risk factors that firms themselves identify in their annual reports. I quantify the firms’ exposure to each identified risk, design an econometric test to classify them as either systematic or idiosyncratic, and construct factor mimicking portfolios that proxy for each undiversifiable source of risk.…Read More
Internationalizing Firm Innovations: The Influence of Multimarket Overlap in Knowledge Activities
This paper explores how multimarket overlap in knowledge activities influences firm decisions to internationalize their homecountry generated innovations.…Read More
Revisiting the Locus of Experience: A Study on Corporate Development Executives, Organizational Learning and M&A Performance
Understanding how firms learn to make better strategic decisions and achieve superior performance is a question of significant concern to managers and scholars, especially in the context of mergers and acquisitions (M&A).…Read More
Entrepreneur’s Knowledge, Firm Survival, and the Normalized Burn Rate
We study the association of spending per employee with startup firm survival. Our theory model posits that entrepreneur’s knowledge defines the complex decision process of combining human and non-human inputs to increase firm value. …Read More
Data Analytics Supports Decentralized Innovation
Data-analytics technology can accelerate the innovation process by enabling existing knowledge to be identified, accessed, combined, and deployed to address new problem domains.…Read More
An Experiment to Enhance Narrative Feedback to Improve Quality of Health Care
This project consists of a field experiment to assess a two-stage intervention intended to enrich healthcare professionals’ learning from patient experiences, as recounted in patients’ own words.…Read More
In the Shadow of the Valley: Private Equity Firms’ Increased Prominence in High-Tech Acquisitions
Why and how do private equity (PE) firms engage in technology acquisitions, and how do they create and capture value in these transactions? Observational data shows initial evidence that not only are PE firms engaging in an increasing number of technology buyouts, they are also seemingly behaving in distinct ways from both corporate acquirers, as well as PE firms in industries other than high-tech.…Read More