Academics, traders and money managers are forever trying to figure out what makes stocks rise and fall. Some influences are clear, like the price gain after a company reports strong earnings. But other behaviors are mystifying. For example, why do shares of companies with fast asset growth sometimes do better than expected according to standard measures like earnings? And why do they sometimes do worse? New research by Wharton finance professor Robert F. Stambaugh and two colleagues shows that market-wide investor sentiment is a key influence in such stock return anomalies.
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Most Topular Stories
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Investor Sentiment and Stock Prices: Explaining the Ups and Downs
Knowledge@Wharton -- Finance and Investment9 May 2012 | 4:05 pm -
How Emotional Intelligence Helps the Bottom Line
Knowledge@Wharton -- Leadership and Change3 May 2012 | 2:35 pmIn this third and final segment of the interview with Chade-Meng Tan, best selling author of Search Inside Yourself, Knowledge@Wharton explores the relationship between emotional intelligence and financial performance. According to Meng, companies as diverse as GE, Patagonia, Zappos, Genentech, American Express and MetLife have seen positive business results through practices based on emotional intelligence. Mindfulness can also help laid off job seekers find work faster. -
E-book Price-Fixing: Finding the Best Model for Publishers -- and Readers
Knowledge@Wharton -- Marketing25 Apr 2012 | 3:51 pmIn a case that has attracted worldwide attention, Apple and five book publishers were sued this spring by the U.S. Department of Justice on the grounds that they colluded to fix prices for e-books sold on Apple's iBookstore website. The legal controversy over Apple's efforts to use the so-called "agency model" when selling books directly to consumers offers a good opportunity to examine the benefits and costs of adopting that approach, both for online retailers and their customers, notes Wharton marketing professor Z. John Zhang, who has co-authored a recent paper on the topic. -
Changes Needed at Avon Are More Than Cosmetic
Knowledge@Wharton -- Strategic Management25 Apr 2012 | 3:51 pmSherilyn McCoy, Avon Products' new CEO, faces a daunting list of challenges: a three-year internal investigation into charges of government bribery in China; an SEC investigation into alleged leaks to analysts; possible takeover offers from two different suitors, and a stock that lost nearly half its value in 2011. Wharton faculty offer a roadmap for getting Avon back on its feet. -
Optimism Is Up, but the U.S. Housing Market Faces a Painful Shift
Knowledge@Wharton -- Real Estate25 Apr 2012 | 3:51 pmSpring is typically a peak season for home buying -- a time of year when Americans start thinking about trading up, downsizing or purchasing a vacation home. But four years after the start of the financial crisis, the market is still shaky. Although there have been some signs of life recently, Wharton experts say the crisis changed the game of home-buying for the long term, and possibly forever -- creating significant consequences for the industry and consumers.
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Knowledge@Wharton -- Finance and Investment
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Investor Sentiment and Stock Prices: Explaining the Ups and Downs
9 May 2012 | 4:05 pmAcademics, traders and money managers are forever trying to figure out what makes stocks rise and fall. Some influences are clear, like the price gain after a company reports strong earnings. But other behaviors are mystifying. For example, why do shares of companies with fast asset growth sometimes do better than expected according to standard measures like earnings? And why do they sometimes do worse? New research by Wharton finance professor Robert F. Stambaugh and two colleagues shows that market-wide investor sentiment is a key influence in such stock return anomalies. -
Why Eurozone Woes are Creating Headwinds for Global Firms
25 Apr 2012 | 3:51 pmEurope is in crisis -- and that has major implications for multinational firms with significant operations in the region. In fact, while much is written about the race by corporations to penetrate emerging markets like China and Brazil, the reality is that the investment by multinationals in Europe dwarfs the assets they have in those fast-growing economies. And the sovereign debt crisis in Europe, along with weak economic growth, is sparking changes in how these firms operate -- altering everything from manufacturing strategies to marketing to financial maneuvers. -
AXA's Dominique Senequier: 'Private Equity Portfolios Should Outperform' Stocks in the U.S.
6 Apr 2012 | 12:58 pmDominique Senequier is on the Forbes list of the world's 100 most powerful women. What's more, she has made a mark in private equity (PE), a domain that men have traditionally dominated. The 58-year-old Senequier is CEO of Paris-based AXA Private Equity, which she launched in 1996. Recently, Senequier has turned her attention to the U.S. market, acquiring investment portfolios from Bank of America and Citigroup. In an interview with Knowledge@Wharton, Senequier discusses the European debt crisis and notes that although the PE market will perform strongly in the long term, "exits may get… -
Christine Lagarde: Emerging Market Nations Will Get More Power in the IMF
3 Apr 2012 | 12:04 pmChristine Lagarde, managing director of the International Monetary Fund (IMF), sees no alternative to the strict austerity policies being imposed on many peripheral European countries, says the double dip recessions in Italy and Ireland just announced come as no surprise, and notes that IMF reforms will shift 6% of current quotas to dynamic emerging and developing countries. Lagarde's comments came in an exclusive interview with Knowledge@Wharton and media partner ParisTech Review late last week, as BRIC countries demanded more voting power in return for the larger financial contributions… -
China's Gravity-defying Economy: How Hard Will It Fall?
28 Mar 2012 | 4:01 pmAs China's high-octane economy shifts into lower gear, virtually everyone agrees that the double-digit, super-charged boom years are drawing to a close. Speculation over the possibility of a so-called "hard landing" for the country flourishes with each boom and bust cycle, only to die down as China's growth revs up again. This time, however, both external and internal factors are reinforcing the downturn, and experts warn that without some painful reforms, there will be worse trouble to come.
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Knowledge@Wharton -- Leadership and Change
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How Emotional Intelligence Helps the Bottom Line
3 May 2012 | 2:35 pmIn this third and final segment of the interview with Chade-Meng Tan, best selling author of Search Inside Yourself, Knowledge@Wharton explores the relationship between emotional intelligence and financial performance. According to Meng, companies as diverse as GE, Patagonia, Zappos, Genentech, American Express and MetLife have seen positive business results through practices based on emotional intelligence. Mindfulness can also help laid off job seekers find work faster. -
How Emotional Intelligence Can Help Resolve Conflicts and Build Tough, Kind Leaders
3 May 2012 | 2:35 pmThe second segment of Knowledge@Wharton's interview with Google's Chade-Meng Tan, author of Search Inside Yourself, focuses on the role that emotional intelligence can play in helping managers resolve conflicts within high-performance teams. It also shows how the Google SIY program, through compassion training, has helped managers become more successful and charismatic. -
Google's Chade-Meng Tan Wants You to Search Inside Yourself for Inner (and World) Peace
25 Apr 2012 | 3:51 pmChade-Meng Tan (Meng) was among the earliest engineers to be hired at Google. Since 2007, he has been running a seven-week personal growth program called Search Inside Yourself, whose mission is to promote peace and harmony through the cultivation of emotional intelligence among Google employees. Meng has now written a book titled, Search Inside Yourself: The Unexpected Path to Achieving Success, Happiness (and World Peace) to share these tools and techniques with companies everywhere. He spoke with Knowledge@Wharton about his conspiracy for world peace. (Podcast with transcript) -
Global Leadership Lessons from Unilever's Kees Kruythoff
11 Apr 2012 | 2:27 pmKees Kruythoff, president of Unilever's North America cluster, has traveled the world for the multinational consumer goods company. During a recent Wharton Leadership Lecture, he shared the unique lessons he has learned from leaders in each country and discussed the importance of infusing the workplace with passion. -
Mt. Everest, Part II: Learning from a Second Climb of the World's Highest Mountain
9 Apr 2012 | 1:52 pmMichael Useem, director of Wharton's Center for Leadership and Change Management, tells the story of Chilean adventurer Rodrigo Jordan, who climbed Mt. Everest in 1992 and is gearing up for a second climb in May. This time, however, Jordan will be adding two novel twists, both of them reflecting his lifelong passion for exploration and leadership.
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Knowledge@Wharton -- Marketing
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E-book Price-Fixing: Finding the Best Model for Publishers -- and Readers
25 Apr 2012 | 3:51 pmIn a case that has attracted worldwide attention, Apple and five book publishers were sued this spring by the U.S. Department of Justice on the grounds that they colluded to fix prices for e-books sold on Apple's iBookstore website. The legal controversy over Apple's efforts to use the so-called "agency model" when selling books directly to consumers offers a good opportunity to examine the benefits and costs of adopting that approach, both for online retailers and their customers, notes Wharton marketing professor Z. John Zhang, who has co-authored a recent paper on the topic. -
Matching the Medium with the Message in Word-of-mouth Marketing
11 Apr 2012 | 2:27 pmWord-of-mouth buzz is highly valued by marketers, but generating it can be a tricky proposition. In a new paper, Wharton marketing professors Jonah Berger and Raghuram Iyengar discuss how marketers can be more precise in crafting their campaigns to achieve better results. It's not as simple as blanketing the web with pop-up ads or blasting the airwaves with commercials, they note. It's about picking the right medium for the right message. -
Big Brother: Have New Advertising Models Become Too Aggressive and Intrusive?
4 Apr 2012 | 12:57 pmDoes the Internet empower consumers? Or does it make them more vulnerable to manipulation by companies and potentially the government? While both statements might be correct, the balance tilts definitely toward the latter, according to Joseph Turow, a professor of communication at the University of Pennsylvania's Annenberg School. Turow, who wrote a book titled, The Daily You: How the Advertising Industry Is Defining Your Identity and Your Worth, talked with Knowledge@Wharton about "one of history's most massive stealth efforts in social profiling."(Video with transcript) -
Customer Analytics: A New Lifeline for the Red Cross and Other Nonprofits?
1 Feb 2012 | 2:41 pmWhen a major disaster occurs, the result is an outpouring of aid, often in the form of donations to nonprofits like the American Red Cross. But once the dramatic images and news headlines begin to fade, donors often disappear as well. The question for groups like the Red Cross is how to identify and reach out to those one-time givers who are most likely to become regular donors. The answer may lie in the world of customer analytics -- the collection and mining of data on individual consumer behavior that is already revolutionizing how for-profit businesses operate. -
Are Colombian Flowers Experiencing a U.S. Drought?
3 Jan 2012 | 11:52 amMost Americans purchase roses only once or twice a year. But do they ever think about where these roses come from and what it takes to get them to their local market just in time for their purchase? Chances are that the roses bought for Valentine's Day or Mother's Day came from Colombia. Yet with the U.S. in a recession, the peso gaining value and an increasingly competitive environment, the floriculture industry in Colombia is looking for new ways to maintain and ideally increase its global market share.
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Knowledge@Wharton -- Strategic Management
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Changes Needed at Avon Are More Than Cosmetic
25 Apr 2012 | 3:51 pmSherilyn McCoy, Avon Products' new CEO, faces a daunting list of challenges: a three-year internal investigation into charges of government bribery in China; an SEC investigation into alleged leaks to analysts; possible takeover offers from two different suitors, and a stock that lost nearly half its value in 2011. Wharton faculty offer a roadmap for getting Avon back on its feet. -
The M&A Market: All the Right Conditions, but No Buyers
28 Mar 2012 | 4:01 pmDespite sizable amounts of cash on hand, record-low interest rates and countless undervalued companies seeking buyers, the merger and acquisition landscape remains bleak. Nor is M&A activity expected to pick up any time soon, given ongoing uncertainty related to the U.S. economy, the upcoming presidential election and the debt crisis in Europe, according to Wharton observers and other experts. -
Pop Quiz: Can Indra Nooyi Revive PepsiCo?
28 Mar 2012 | 4:01 pmWhen Indra Nooyi became CEO of PepsiCo in 2006, she unveiled a bold plan to introduce wholesome offerings into the company's line of sugary beverages and snacks. But observers say the strategy has amounted to a case of too much, too soon, and now the company must come back from years of flat earnings and waning consumer interest in its products. Recently, PepsiCo's board made a series of leadership changes that indicate Nooyi might be on her way out. How can Pepsi regain the confidence of investors and customers? -
The Role of Identity in Successful Post-merger Integration
29 Feb 2012 | 2:42 pmIn the world of mergers and acquisitions, the goal is to take two (or more) companies and seamlessly integrate processes, products and people. When trying to pull off a successful deal, however, many senior executives focus their attention on the financial aspects of mergers and fail to consider their psychological implications, Wharton management professor John Kimberly says. In a new paper, Kimberly and his co-author discuss the common pitfalls that firms make in their efforts at identity integration and offer four approaches for making deals work on an emotional level. -
Patients versus Profits at Johnson & Johnson: Has the Company Lost its Way?
15 Feb 2012 | 2:29 pmFor a corporate icon long held up as the gold standard in business ethics, Johnson & Johnson has suffered some stunning setbacks in recent years. Among the headaches: a seemingly endless string of product recalls, safety issues with the company's artificial hips, and lawsuits brought by numerous states over the marketing of its anti-psychotic medication. Critics wonder whether CEO William Weldon will be able to convince consumers and investors that J&J can regain its once stellar reputation.
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Knowledge@Wharton -- Real Estate
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Optimism Is Up, but the U.S. Housing Market Faces a Painful Shift
25 Apr 2012 | 3:51 pmSpring is typically a peak season for home buying -- a time of year when Americans start thinking about trading up, downsizing or purchasing a vacation home. But four years after the start of the financial crisis, the market is still shaky. Although there have been some signs of life recently, Wharton experts say the crisis changed the game of home-buying for the long term, and possibly forever -- creating significant consequences for the industry and consumers. -
Research Roundup: Homeowner Mobility, Divestitures and the Real Impact of FDI
7 Dec 2011 | 2:00 pmHow has the housing bust and accompanying recession impacted the mobility of homeowners? Are divestitures always a smart move for companies? Can multinationals create a fact-based case for the real economic impact of their investment in different countries? Professors Joseph Gyourko, Emilie Feldman and Ethan Kapstein, respectively, examined these issues -- and what they mean for business and consumers -- in recent research papers. -
Revitalizing the Private Mortgage Market: 'Skin in the Game' and the Consequences for Future Homebuyers
11 May 2011 | 4:38 pmAmid all the uncertainty in the economy, a number of regulators, lawmakers and market experts continue to wonder: What will the mortgage market, so essential to a healthy housing sector, look like in the future? Key to that is a rekindling of the private market for securitizations -- the process of converting mortgages into bonds for sale to investors. Meanwhile, a group of federal agencies recently released a proposed set of requirements likely to toughen standards for both borrowers and lenders. But many experts feel the proposals would not correct the mortgage market's problems. -
What the Demise of Fannie Mae and Freddie Mac Means for the Future of Homeownership
16 Mar 2011 | 3:44 pmBy most accounts, the federally sponsored mortgage giants Fannie Mae and Freddie Mac did not cause the housing and mortgage crisis. But they were a big part of the problem, prompting a taxpayer bailout costing more than $130 billion. Now the Obama administration wants to phase out the two firms. How would this affect the availability of mortgages, loan rates and home prices? In the end, would such a dramatic change be good for homeowners or bad? -
Gazit's Chaim Katzman: 'Our Strategy Is Long-term Ownership'
12 Jan 2011 | 12:16 pmGazit Globe (usually called Gazit) is among the world's top real estate investment multinationals. Listed on the Tel Aviv stock exchange, the firm operates in some 20 countries and owns or operates 6.3 million square meters of space spread over more than 650 properties. In the U.S., Gazit's investment vehicles include Equity One, a real estate investment trust that focuses on high quality retail properties. Gazit's total asset value exceeds $15 billion. Chaim Katzman, Gazit's chairman and founder, spoke recently with Wharton real estate professor Peter Linneman and Knowledge@Wharton about the…
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Knowledge@Wharton -- Law and Public Policy
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State of the Unions: What It Means for Workers -- and Everyone Else
9 May 2012 | 4:05 pmLabor unions have long had a position of prominence in American business and political life. But their influence has been on the decline in recent decades as membership ranks have dwindled. The increasing irrelevance of unions will have far-reaching implications, Wharton experts and others say, including the loss of one of the few ways that working class Americans can engage in the political process and become educated about labor laws. Corporations will feel the effects as well -- and they won't necessarily be positive, experts add. -
Special Report: Europe Struggles to Hold Itself Together
9 May 2012 | 4:05 pmDramatic economic and financial developments in Europe never seem to quit. In the latest news, several eurozone countries have slipped back into recession, bringing a backlash against austerity policies into full swing. Now, the election of Socialist President Francois Hollande in France may offer a path to more growth-oriented policies, but big questions remain about which ones are economically -- and politically -- viable. To help clarify the implications for business and investors, Knowledge@Wharton has prepared a special report on the challenges facing Europe. -
Saving Southern Europe's 'Lost Generation' of Jobless Youth
9 May 2012 | 3:49 pmIn Spain and Greece, more than 50% of young people between 18 and 24 are out of work. In Italy and Portugal, the number is close to 30%. This represents a social and economic disaster that could have devastating consequences for Southern Europe, rippling outward toward the rest of the continent and the world. Experts at Wharton and elsewhere say outdated labor regulations combined with a slow economy have contributed to the problem. But even if labor laws are restructured, a solution will be hard to work out, all the more so now that many countries in Europe have slipped back into recession. -
Mario Monti's Long March to Get the Italian Economy on Its Feet
9 May 2012 | 3:49 pmMario Monti, the economist whose government replaced the Berlusconi administration in Italy last December, brings a technocrat’s view to the task of reviving the country’s economy. According to experts from Wharton and elsewhere, this task will be made easier by the fact that the Italian economy is in better shape than that of countries like Greece. Still, Monti faces enormous challenges, and major structural reform will be needed. -
What Hollande's Election Means for the Eurozone
9 May 2012 | 3:49 pmIn the aftermath of the election of Socialist Francois Hollande as the new president of France, eurozone austerity policies in Europe, which many now blame for pushing much of the Continent back into recession, appear likely to be loosened. At the same time, at least some complementary growth-oriented policies may be introduced. Big questions remain, however: What will these changes look like, and how much difference will they make? (Article with podcast)
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Knowledge@Wharton -- Human Resources
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Declining Employee Loyalty: A Casualty of the New Workplace
9 May 2012 | 4:05 pmIf loyalty is defined as being faithful to a cause, ideal, custom, institution or product, then there seems to be a certain amount of infidelity in the workplace these days. The 10th annual survey of employee benefits, trends and attitudes released in March by MetLife puts employee loyalty at a seven-year low and says one in three employees plans to leave his or her job by the end of the year. Wharton faculty and others look at the evolving relationship between employees and employers. -
Hold That Password: The New Reality of Evaluating Job Applicants
11 Apr 2012 | 2:27 pmReports that some employers are asking job candidates to provide their Facebook logon information has generated intense outrage from some circles, along with a bevy of legal and privacy-related questions. But these recent events only highlight a new reality: The identity that individuals create in the world of social media is quickly becoming an important factor in hiring decisions and in people's broader professional lives. -
'Restorative Niches': Author Susan Cain on the Need for 'Quiet'
4 Apr 2012 | 12:57 pmBusiness leaders often look to social activities to generate ideas and innovation, from group collaboration and brainstorming to large meetings and open-format offices. Those who are highly verbal, bold and outgoing often thrive in these environments. In Quiet: The Power of Introverts in a World That Can't Stop Talking, author Susan Cain challenges the "Extrovert Ideal" and many common business practices in which the ideas and leadership potential of introverts are often overlooked. Among the researchers she cites is Wharton management professor Adam Grant, who recently interviewed… -
Why External Hires Get Paid More, and Perform Worse, than Internal Staff
28 Mar 2012 | 4:01 pmHere is some research sure to rankle every employee who has applied for an internal promotion and been passed over in favor of someone brought in from the outside. According to Wharton management professor Matthew Bidwell, "external hires" get significantly lower performance evaluations for their first two years on the job than do internal workers who are promoted into similar jobs. They also have higher exit rates, and they are paid "substantially more." His research is presented in a paper titled, "Paying More to Get Less: The Effects of External Hiring versus… -
Want to Improve Customer Service? Treat Your Employees Better
14 Mar 2012 | 4:01 pmStaffing levels and customer service training often fall victim to companies' efforts to cut costs and meet quarterly earnings targets. At the same time, however, consumers expect higher-quality treatment than ever before, and can easily let the world know if they don't get it. So how can firms ramp up their customer service efforts on the cheap? It's as simple as treating employees better -- so they will do the same for customers, experts say.
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Knowledge@Wharton -- Business Ethics
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Everyone's Problem: Looking Beyond the Wal-Mart Bribery Case
9 May 2012 | 4:05 pmIn a case that continues to reverberate across borders, Wal-Mart Stores, the world’s largest retailer, announced recently that it has started its own probe into allegations that executives at its Mexican operations made hundreds of illegal payments to help expedite the opening of new stores. According to legal and ethics experts at Wharton and elsewhere, the case raises broader questions about how multinational companies conduct business in foreign countries. -
Real Drivers of Corruption in India and the Rest of the World
23 Mar 2012 | 1:53 pmCorruption is the most important and topical issue in India today, writes Dilip Gadkar, editor of Macro Viewpoints, in this response to an article published in Knowledge@Wharton in January. In this opinion piece, he disagrees with the article's thesis and argues that there is no innate, structural difference between western ethics and Indian ethics. Rather, Gadkar writes, the difference between corruption in India and the rest of the world is essentially a matter of scale and institutional development. -
Author Pico Iyer: Seeking Stillness and Silence in the Rush of Business Life
29 Feb 2012 | 2:42 pmPico Iyer -- essayist, author and thinker -- has a unique perspective on many things. His physical domain ranges from California (where he lived as a child) and England (where he studied) to Cuba, North Korea and Ethiopia (which he visited) and Japan (where he resides). His mental domain knows no limiting boundaries. In this interview with Wharton associate dean Deirdre Woods and Knowledge@Wharton, Iyer discusses the value of silence amid the rush of business. If we spend too much time in the MTV rhythm, says Iyer, we won't be able to cultivate the parts of us that need more slowness. -
Business vs. Ethics: The India Tradeoff?
3 Jan 2012 | 11:50 amMuch has been written about the benefits of doing business in India -- low input costs, easy access to labor and a massive consumer base. Less has been said about the ability of companies in India to thrive by bending rules, greasing palms and broadening ethical boundaries. At a time when the issue of corruption threatens the stability of the Indian government and scandals unearthed in sectors from sports to telecommunications total tens of billions of dollars, it is becoming increasingly critical for multinational managers to ask whether business success in India comes at an ethical cost. -
Don't Mention It: How 'Undiscussables' Can Undermine an Organization
20 Dec 2011 | 3:06 pmRecent high-profile scandals at Penn State, MF Global Holdings, Olympus and elsewhere raise questions about why organizations often fail to address significant internal problems that at best impede performance, and at worst could have devastating effects. In hindsight, especially to observers, it is clear what should have been done. But for employees, exposing such problems is more complicated than telling right from wrong, say experts at Wharton and elsewhere.
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Knowledge@Wharton -- Innovation and Entrepreneurship
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IT Innovations Dominate 2012's 'Great Eight' Business Plans
1 May 2012 | 11:40 amSince launching during the height of the dot.com bubble of the early 2000s, Wharton's Business Plan Competition has seen ever increasing diversity in entries from student entrepreneurs. This year, a big theme was IT solutions for business problems, especially in the health care field, although ideas related to online marketing and education were also presented. -
The Killer Question: Phil McKinney on How to Spark Innovation
4 Apr 2012 | 12:57 pmIn order to generate new ideas, remain competitive and unlock breakthrough innovations, Phil McKinney argues that we need to ask more questions. Most recently vice president and chief technology officer for Hewlett-Packard's (HP) $40 billion personal systems group, McKinney retired in December 2011. During his nine-year tenure at HP, he founded and directed the company's innovation program office. In his new book, Beyond the Obvious: Killer Questions that Spark Game-Changing Innovation, McKinney argues that you have to ask "killer questions" to test your assumptions and break… -
Research Roundup: The 'Dark Side' of Teams; the Risks of Social Comparisons; and the Transfer of Entrepreneurial Skills
14 Mar 2012 | 4:01 pmDoes working in teams make people less receptive to outside input? How can social comparisons undermine trust in working relationships? How do the training and technical knowledge entrepreneurs take from previous employers impact the success of their new ventures? Wharton professor Jennifer Mueller and lecturer Julia Minson, and professors Maurice Schweitzer and Evan Rawley, respectively, examine these issues, and what they mean for business, in recent research papers. -
To Get Venture Capital Funding, Know the Risks and Tell a Good Story
29 Feb 2012 | 2:42 pmDuring a panel titled, "VC Confessionals: Why We Funded, Why We Passed," at Wharton's recent 2012 Entrepreneurship Conference, participants offered several pieces of advice to entrepreneurs seeking venture funding. For example, be sure to thoroughly evaluate all the risks involved, tell a good story about your product or service, and ask yourself the tough questions about your business model before presenting to outside audiences. -
Research Roundup: The 'Flip Side' of Open Innovation, Productivity Losses from Bad Weather and Assessing the Risks of Outsourcing
1 Feb 2012 | 2:41 pmOpen innovation is gaining in popularity, but when should companies be concerned with protecting their own knowledge? Most people expect bad weather to negatively impact business conducted outdoors, but what are its implications in industries where work is primarily done inside? How can companies use risk management techniques to better assess the potential downsides of hiring contract or temporary workers? Wharton professors Felipe Monteiro, Gerard Cachon and Peter Cappelli, respectively, examine these issues -- and what they mean for business -- in recent research articles.
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Knowledge@Wharton -- Managing Technology
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Etsy Seeks Scale without Losing Its 'Street Fair' Aesthetic
9 May 2012 | 4:05 pmEtsy was launched as a ragtag website for artists and craftspeople to sell their wares. Today, it has become one of the Internet's most prominent tastemakers. As the company grows, experts caution that it must be careful not to alienate its faithful shop owners and customers by going too commercial and straying from its independent, artsy roots, or by becoming bogged down in privacy and seller credibility concerns. -
King of the Hill: Can Established Tech Companies Be Bested?
25 Apr 2012 | 3:51 pmReplicating a less-established competitor's innovative offerings or features can be relatively easy for an incumbent technology company. The practice has become increasingly common -- to the point that many wonder if it's still possible for an upstart to enter an existing market and effectively compete. But that doesn't mean dominant firms like Google and Facebook should stop watching their backs, Wharton experts say. Despite reluctance on the part of users to abandon an established service, there is always the chance that a nimble newcomer will enter a market and eat away at an incumbent… -
'Inside Apple': Adam Lashinsky on the Future of America's Most Secretive Company
4 Apr 2012 | 12:57 pmIn the days and weeks before the new iPad was announced, the media was rife with rumors about what Apple fans could expect from the new device. But few might know that Apple employees were among those who waited anxiously to find out what their own company had planned. Knowledge@Wharton recently talked with Adam Lashinsky, a senior editor at Fortune magazine and author of Inside Apple: How America's Most Admired -- and Secretive -- Company Really Works, for a rare glimpse into one of the world's most innovative firms. (Video with transcript) -
Vertical Integration Works for Apple -- But It Won’t for Everyone
14 Mar 2012 | 4:01 pmIn an effort to spur growth and attract consumers through a more seamless user experience, tech companies -- including Google, Amazon and Oracle -- are acquiring new business units in order to become more vertically integrated. It is an approach that for years has been successfully employed by Apple, which manages the hardware, software and related systems for its products all under its corporate umbrella. But Wharton experts warn that becoming a conglomerate creates a separate set of challenges, and may even hinder innovation within the sector. -
Google's New Privacy Policy: When Consumers' Worlds Collide, the Company Stands to Profit
15 Feb 2012 | 2:29 pmOn March 1, Google plans to toss out more than 60 different privacy policies and consolidate its services under a single set of guidelines. The harmonization will remove separation between Google products, meaning that the company will be able to use data it collects from users in one area across all of its platforms. While this move has sparked concerns about privacy, Wharton experts note that it also makes business sense for Google, which is trying to compete in a tech sector where success often hinges on firms' ability to leverage and monetize the data trails consumers leave online.
