The Martha and Spencer Love School of Business faculty members presented their latest scholarship in August at the academy's meeting in Philadelphia attended by more than 10,000 researchers, consultants and practitioners from around the world.
McMahon presented “Smart money vs. fast money: Equity crowdfunding and transaction cost optimization for new ventures,” which he co-authored with Regan Stevenson, University of Central Florida; Chaim Letwin, University of Central Florida; and Mike Ciuchta, UMass Lowell.
The paper’s abstract reads: Equity crowdfunding (ECF) is a novel form of financing through which ventures receive relatively small contributions from a large number of non-professional investors in exchange for equity. We adopt a transaction cost economics (TCE) perspective to consider conditions under which ECF is theoretically optimal for new ventures relative to traditional private equity (TPE) sources. In doing so, we introduce a transaction cost optimization continuum that reflects the evolving new venture financing landscape. Our framework characterizes the optimization problem as one in which entrepreneurs face a trade-off between the distinct costs and associated benefits of ECF relative to TPE. We argue that ECF transactions reduce the costs of acquiring capital and increase validation benefits, but also attenuate access to complementary assets. We also delineate how lower asset specificity need, uncertainty, and funding frequency allows new ventures to economize on transaction costs with ECF relative to TPE. Finally, we consider how specific characteristics of the entrepreneur impact funding optimization.
Valle presented “The power of words: Legitimacy, impact and the death of management research as we know it.”
The paper’s abstract reads: Stakeholders continue to question the value of higher education policies, practices and costs in an era of declining enrollments and shrinking budgets. In addition, they question the very nature of the knowledge creation mechanisms (e.g., research) that lie at the heart of the value proposition for post-secondary institutions. One might assume that these questions would be vigorously and loudly responded to by members of the academy; one would be wrong. Increasingly, we tell ourselves (via academic journals) that our research lacks legitimacy, impact and value. In a word, we are told that most of what constitutes management research today is “crap”. This paper is an attempt to describe legitimacy and impact as mission-specific words that require the appropriate context in order to be meaningful. It is also an attempt to turn back the tide of criticism and self-defeating language that does more harm than good to many good people with good intentions. Words, it seems, do have power after all.
Valle also had a second paper presented, “Development and validation of a comprehensive needs measure,” which he co-authored with Vickie Coleman Gallagher, Cleveland State University; Rachel Frieder, Old Dominion University; and Karen L. Dragish, Cleveland State University.
The paper’s abstract reads: In a work context, employees tend to gravitate toward situations that are most conducive to meeting their needs. It makes sense, therefore, that managers should work toward the identification and subsequent fulfillment of employee needs as a way to meaningfully shape important work behaviors. The purpose of this research is threefold. First, we define and specify the psychological needs under investigation, briefly highlight the extant research, and differentiate needs from other individual difference variables. Second, we demonstrate the limitations of one of the most highly cited and used psychological needs instruments (Steers & Braunstein, 1976) and introduce a new needs model. Third, we develop and empirically evaluate a multidimensional needs inventory using a multi-study design. The strengths and limitations of the proposed and tested model are discussed, as are implications for future research.
The Academy of Management annual meeting is the premiere event for management scholars, as well as consultants and practitioners. It involves more than 10,000 attendants from around the world. Areas of emphasis include all aspects of management, from organizational strategy and entrepreneurship to office politics, justice and ethics.