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Scheller College of Business

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Now showing 1 - 3 of 3
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    Essays on Resources and Innovation
    (Georgia Institute of Technology, 2023-07-31) Zhou, Shibo
    External resources play a crucial role in fostering innovation by allowing individuals and firms to actively seek new knowledge and create novel products alongside their routine operations. In my dissertation, I investigate the impact of external resources in three distinct forms: consumers, award authorities, and foreign governments. Online user reviews are an important external information source for both consumers and producers. While the impact of reviews on consumer purchasing behavior has drawn much attention in the literature, whether it can influence producers in terms of future product development remains unclear. In Chapter 1, I examine the role of user reviews on product development and assess how the impact varies across different types of reviews. Analyzing textual data from a two-sided platform using NLP techniques, I evaluate the effect of review ratings on video game updates. The empirical results show that games with more design-related reviews have a higher probability of updates in the following month when users are not satisfied. Moreover, incumbent firms with more resources and capabilities can learn from reliability-related reviews for more complicated product development. The developed updates are positively correlated with the re-engagement of inactive users. My findings show that producers learn from users to absorb ideas about subsequent product development, and the relationship is heterogeneous across different dimensions of the reviews and producers. I discuss the strategic implications of the results for further development by producers, as well as the importance of platform review systems governance. While innovations are often critical to the growth of firms, such firm-level outcomes emerge from the actions of organizational members who seek novel knowledge. Chapter 2 (co-authored with Jessica Li) develops and tests a model examining how status gain impacts individual novel knowledge adoption and subsequent performance. The model is tested using longitudinal data from a sample of book authors. Results indicate that status gain is associated with a higher level of novelty adoption, and the effect is more pronounced when the authors do not have other sources of income. Adoption is positively associated with subsequent performance, measured by online ratings and easiness of passing through the publishers. This chapter contributes to knowledge management literature by demonstrating the unique effect of status gain on individual-level knowledge searching and adding to the evidence on how these two activities are present at the individual level. The last external resource that I am examining is government support, which has been accounting for regional innovation growth. in Chapter 3 (co-authored with Kedong Chen and Xiaojin Liu), I analyze the unintended consequences of foreign government policies on domestic inventors. In 2009, the Chinese government launched the policy of ``national innovative cities'' to support the innovation of firms in selected regions. But the unintended consequence of the policy is unclear at the inventor level, in particular on those foreign inventors who have experience working with Chinese firms that are exposed to the policy intervention. Our research is guided by the research question: \textit{How does government support influence foreign inventors who have collaborated with domestic firms before?} By employing the difference-in-differences (DiD) technique in the quasi-experimental setting, we examine the influence of government intervention on foreign partners. We find that foreign inventors who have established relationships with firms in selected cities experience an increase in collaborators and innovations. We further show that inventors with less patent stock take better advantage of cross-border government support. Taken together, the findings of the study suggest that government support can facilitate unintended cross-border knowledge flows and strengthen the innovation performance of ``treated'' foreign inventors. Overall, this dissertation enhances our comprehension of how firms and individuals respond to changes in external resources.
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    Essays on Strategic Use of Intellectual Property Rights
    (Georgia Institute of Technology, 2023-05-02) Ortega Moncada, Leonardo G.
    This dissertation examines various aspects of firms' strategic responses in the management of their intellectual property rights to external factors, with each chapter focusing on a different aspect of this complex topic. The first chapter of the dissertation investigates whether markets for technology can provide an alternative to in-house innovation as a response to foreign escape competition. The findings indicate that while external technologies are important for innovative firms, low-productivity firms experience a negative impact on the demand for external technologies when exposed to import competition. The second chapter focuses on the tradeoff incumbents face in using patents as barriers to entry or as ex-post responses to competitors' entry moves. Using the U.S. pharmaceutical industry as the main empirical setting, this chapter shows that incumbents intentionally fragment and delay the full disclosure of their intellectual property rights through continuation patents. They disproportionately reveal continuation patents after a competitor entry threat becomes concrete, tailoring their response to the threat they have received and successfully delaying competitor entry through litigation. Finally, the third chapter investigates how firms manage information asymmetry in their patent prosecution source using exposure to patent litigation. This chapter shows that firms exposed to patent litigation are more likely to change the sourcing of patent prosecution legal services relative to unexposed firms working with the same prosecuting law firm.
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    Behavioral research on sustainable and socially/environmentally responsible operations
    (Georgia Institute of Technology, 2020-06-16) Mahmoudzadeh, Mahdi
    With the growth of global interest in sustainability and social responsibility, more companies and manufacturers have started practicing sustainable operations and social and environmental responsibility in their supply chains. Recent advancements in the field of behavioral economics have uncovered many relevant insights that can be of help in understanding interests and motives among different entities in supply chains including suppliers, manufacturers, policy makers, and customers. Utilizing both experimental and analytical methods, this dissertation's focus is to incorporate some of the relevant insights from behavioral economics into topics related to sustainable operations, circular economy, and social responsibility in supply chains. The first chapter looks at replacement purchases and buyback schemes by durable goods manufacturers. In contrast to the classical model and conventional wisdom that ignore the relevance of framing effects in difference schemes, this chapter explores the framing difference between trade-ins and upgrades and studies how relaxing the equivalence assumption modifies predictions of the classical model and provides predictions more in line with today's durable goods markets. The second chapter looks at social/environmental responsibility in supply chains and examines what type of consumer reactions—encouraging ones that highlight the value of responsible sourcing or discouraging ones that highlight the possibility of a consumer boycott—can lead supply chains towards more responsible sourcing. Our results enrich the normative model's insights and lead to a straightforward recommendation for NGOs that is also in line with what can be expected from consumers. This third chapter, motivated by Best Buy's recent recycling program, studies the potential of a charging for recycling program from a circular economy perspective. We find evidence that, in contrast to the long-standing practice of free recycling, charging for recycling can increase adoption of green electronics among consumers. This chapter suggests that current environmental laws that prohibit retailers from charging for recycling may be counterproductive to circular economy.