Research on decoupling has long found that organizations facing complex external pressures may say one thing, yet do another. This extremely popular theory presumes that outsiders are unable to peer into the organization, to see what it actually does. Yet a large number of organizational practices are increasingly transparent and visible to outsiders. How do organizations respond to the external pressures surrounding these observable practices? This study suggests that they decouple in a different way, by avoiding some of the formal policies that could support those practices, in order to minimize stakeholders’ expectations and preserve the flexibility to change or abandon those practices in the future. The study examines the connection between practices and these formal policy commitments, predicting that organizations are more likely to develop formal policies when they use the associated practices more frequently, but that the relationship is reduced at organizations in institutionally complex environments where competing pressures require greater flexibility. Empirical tests on the community policing policies of a nationwide law enforcement agency panel provide support for those predictions, though no support is obtained for the notion that powerful stakeholders could pressure agencies to adopt these policies more aggressively as the underlying practices become more commonplace.
The rapid adoption of artificial intelligence tools has changed the way scholarly manuscripts are prepared. Many authors now use AI-assisted tools to improve grammar, style, organization, and readability. Used responsibly, such tools can help authors communicate their ideas more clearly. However, a well-written manuscript is not necessarily a publishable manuscript. For the American Business Review (ABR), the central question remains unchanged: What does the manuscript contribute, and why should that contribution matter to ABR’s readership? Authors remain responsible for the intellectual content, integrity, and contribution of their work (Gatrell et al., 2024; Carobene et al., 2024).
We model price competition between two horizontally differentiated social media platforms, each offering basic and premium services. Users are either platform-anchored or quality-anchored. The platforms are two-sided, with users and advertisers as the two sides. We find a unique and symmetric equilibrium in the pricing game, where platforms earn revenue from both sides. As the quality difference increases, premium service prices rise, while basic service prices drop. Users are subsidized under strong network effects, but the platforms do not subsidize users if they are sufficiently differentiated. Vertical differentiation increases platform profits if sufficient quality difference is achieved for a given marginal cost of serving the premium users. Higher differentiation is required if the share of premium-anchored users increases. The extended model examines the effect of advertiser multihoming on subscription fees and profits. This model explains the pricing and service strategies of platforms like LinkedIn, X (Twitter), and Instagram.
We examine how the forthcoming refinancing of long-term debt affects firms’ overinvestment tendency. We find that firms reduce overinvestment in the year before the refinancing year. Refinancing risk reduces the propensity to overinvest by 6–8%. Firms with relatively higher levels of refinancing risk tend to reduce overinvestment. Since firms with high leverage and low cash holdings are more likely to suffer from liquidity and credit constraints, our findings report that such firms experience a greater reduction in overinvestment. Long-term debt refinancing disciplines managers in reducing the tendency to overinvest. Firms with lower managerial ability have a greater tendency to reduce overinvestment in non-capital expenditures before refinancing. However, the likelihood of overinvestment in capital expenditures decreases irrespective of managerial ability. Reductions in overinvestment before refinancing also have a positive impact on firm performance.
This study examines how CEOs’ early-life experiences shape strategic decision-making, focusing on the influence of parental creativity. Drawing on imprinting and upper echelons theories, we argue that CEOs with creatively employed parents develop an exploratory mindset that promotes greater investment in firm R&D. Crucially, we propose that this learning stems from behavioral modeling of exploratory mindsets through creative problem-solving—rather than the transmission of socioeconomic capital. Using a proprietary dataset of Fortune 100 CEOs and their parents’ occupations, we find robust support for this relationship. The effect is amplified under strong firm performance, while CEO age does not consistently weaken the relationship, suggesting that early-life imprints endure. These findings contribute to the upper echelons and organizational learning literatures by identifying a novel antecedent of CEO innovation behavior and highlighting the lasting influence of formative experiences on strategic choices.
