Discovering and Managing Interdependence with Customer‐Entrepreneurs

Research on inter‐organizational relationships has largely focused on the interdependence between formal organizations. In recent years, firms have encountered a new logic in which interdependent parties are not formal organizations but platform‐based ‘customer‐entrepreneurs’ that create value through illegal means. Drawing on a 5‐year‐long qualitative study, we examine how firms recognize and instantiate this new logic and, consequently, respond to their interdependencies with customer‐entrepreneurs. Viewed through the lens of institutional logic, we find that, with the benefit of hindsight, firms recognize the existence of the logic of customer entrepreneurship, which triggers organizational sensemaking that is made up of three elements: interpretation of legitimacy compatibility; interpretation of efficiency compatibility; and integration of stakeholder perspectives. This sensemaking results in either a determined account concluding on the compatibility calculus in a top‐down manner, or an open‐ended account avoiding the construction of a resolute, synthesized view. A determined account leads to a defiance strategy, by which firms attempt to remove the source of interdependencies with customer‐entrepreneurs, whereas an open‐ended account guides firms to espouse a decoupling strategy, whereby firms covertly resort to efficiency maximization enabled by the interdependence. Our results offer implications for the research on inter‐organizational relationships and institutional logic.     

Distractions N' Driving: video game simulation educates young drivers on the dangers of texting while driving

The proliferation of portable communication and entertainment devices has introduced new dangers to the driving environment, particularly for young and inexperienced drivers. Graduate students from George Mason University illustrate a powerful, practical, and cost-effective program that has been successful in educating these drivers on the dangers of texting while driving, which can easily be adapted and implemented in other communities.     

Testing for abrupt breaks in variance structures with smooth changes

Abstract

We investigate the problem of testing for variance breaks in the case where the variance structure is assumed to be smoothly time-varying under the null. Since the classical tests are aimed to detect any change in the variance, they are not able to distinguish between smooth non constant variance and abrupt breaks. In this paper a new procedure for detecting variance breaks taking into account for smooth changes in the variance under the null is proposed. The finite sample properties of the test we introduce are investigated by Monte Carlo experiments. The theoretical outputs are illustrated using U.S. macroeconomic data.     

Setting the clock back to zero property of a class of bivariate life distributions

In a previous paper. B. R. Rao and Talwalker (1993) considered absolutely continuous life distributions and extended the Lack of Memory Property (L.M.P.) of the exponential distribution and showed that several classes of life distributions have this property, which was called the 'setting the clock back to zero' property. ¶Its analog is discussed in the present paper for hivariate and multivariate classes of life distributions. As a simple application of this analog, it is proved that the Life expectancy and the Percentile Residual Life vectors of a population of individuals under the influence of multiple competing risks have simple expressions if the class of their joint life distributions has the setting the clock back to zero property,     

The Planning Stage in Statistical Reasoning

An important step in the statistical problem-solving process is the selection of the appropriate statistical procedure for the real-world situation under analysis. A decision-tree term project has been found to be an effective teaching device to help MBA students understand this step. The project requires the students to construct a decision-tree structure, which, through a series of questions and responses, will lead from the statement of a statistical question to the appropriate sampling distribution to use in addressing the question.     

Partial Correlation in Terms of Path Coefficients

The distribution of members of the American Statistical Association (ASA) by several demographic and professional measures is characterized. The analysis is based on a 1979 survey of ASA members who resided in the U.S. More detailed analysis focuses on how demographic and professional characteristics affect the distribution of income and the odds of participating in ASA activities. Several interesting observations are made. Years of experience since highest degree is the most important predictor of income. Highest degree and whether employed in academia are also important. There is a significant difference between the distribution of income for men and women; although the difference is insignificant at one year of experience, it increases with the experience level. Although the survey represented a 100% sample of blacks, Hispanics, and native Americans in the ASA, there is insufficient data to formulate a detailed model of income for this minority group; its average income, however, falls below the expected income of the majority population for higher experience levels. For both the odds of attending annual meetings and serving ASA as an officer or committee member, the most important discriminator is the highest degree of the member. Race is also a significant factor: blacks, Hispanics, and native Americans were least likely to attend annual meetings, and Asians and Pacific Islanders were least likely to hold office. Years of experience is important also for predicting the odds of having held office but not of having attended meetings.