harvard business school case
HBS Working Knowledge
Harvard Business School Working Knowledge offers business practitioners afirst look at cutting-edge research and thinking from more than 200 HBSfaculty.
- First Look: December 23, 2008
The intellectual contributions of immigrant workers, it is clear, are central to U.S. innovation and technology commercialization. A new working paper [PDF] highlights the role and importance of the H-1B visa program. According to HBS professor William R. Kerr and coauthor William F. Lincoln, writing in "The Supply Side of Innovation: H-1B Visa Reforms and U.S. Ethnic Invention," the H-1B program is a matter of significant policy importance.
Differences related to the program may also provide companies with a competitive edge. "We find that fluctuations in H-1B admission levels significantly influence the rate of Indian and Chinese patenting in cities and firms dependent upon the program relative to their peers," the authors write.
Be sure to also check out a case on improving the negotiation of joint ventures, "The Hong Kong & China Gas Company Ltd.: Negotiating Joint Ventures in China."
Happy new year from HBS Working Knowledge!
— Martha Lagace
Working Papers
If You Are So Smart, Why Aren't You Rich? The Effects of Education, Financial Literacy and Cognitive Ability on Financial Market Participation
Authors:Shawn A. Cole and Gauri Kartini Shastry AbstractHousehold financial market participation affects asset prices and household welfare. Yet, our understanding of this decision is limited. Using an instrumental variables strategy and dataset new to this literature, we provide the first precise, causal estimates of the effects of education on financial market participation. We find a large effect, even controlling for income. Examining mechanisms, we demonstrate that cognitive ability increases participation; however, and in contrast to previous research, financial literacy education does not affect decisions. We conclude by discussing how education may affect decision-making through personality, borrowing behavior, discount rates, risk-aversion, and the influence of employers and neighbors.
Download the working paper: http://www.hbs.edu/research/pdf/09-071.pdf
Happiness Adaptation to Income beyond 'Basic Needs'
Authors:Rafael Di Tella and Robert MacCulloch AbstractWe test for whether, once "basic needs" are satisfied, there is happiness adaptation to further gains in income using three data sets. Individual German Panel Data from 1985 to 2000, and data on the well-being of over 600,000 people in a panel of European countries from 1975 to 2002, shows different patterns of adaptation to income across the rich and poor. We find evidence that for wealthy Germans, and for the rich half of European nations, higher levels of per capita income don't buy greater happiness. The reason appears to be adaptation. However even for the rich half of European nations such habituation may take more than five years so the happiness gains that they experience, whilst not permanent, can still be relatively long-lasting. Finally we study a cross section of nations in 2005 from the World Gallup Poll and find that the past 45 years of economic growth (from 1960 to 2005) in the rich half of nations has not brought happiness gains above those that were already in place once the 1960s' standard of living had been achieved. However in the poorest half of nations we cannot reject the null hypothesis that the happiness gains they have experienced from the past 45 years of growth have been the same as the gains that they experienced from growth prior to the 1960s.
Download the working paper from SSRN ($5): http://papers.nber.org/papers/w14539
The Supply Side of Innovation: H-1B Visa Reforms and U.S. Ethnic Invention
Authors:William R. Kerr and William F. Lincoln AbstractThis study evaluates the impact of high-skilled immigrants on U.S. technology formation. Specifically, we use reduced-form specifications that exploit large changes in the H-1B visa program. Fluctuations in H-1B admissions levels significantly influence the rate of Indian and Chinese patenting in cities and firms dependent upon the program relative to their peers. Most specifications find weak crowding-in effects or no effect at all for native patenting. Total invention increases with higher admission levels primarily through the direct contributions of ethnic inventors.
Download the working paper: http://www.hbs.edu/research/pdf/09-005.pdf
Cases & Course Materials
American Cancer Society: Access to Care
Harvard Business School Case 109-015
CEO John Seffrin decides to radically change the strategy of the American Cancer Society. The new Access to Care strategy relies on advocacy to change public policy and increase the number of Americans eligible for cancer prevention and treatment. The new strategy brings with it considerable political risk. Leveraging an organization with three million volunteers, this case describes how he skillfully transforms the organization (structure, control systems, staff, shared values, etc.) to implement the new strategy.
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http://harvardbusinessonline.hbsp.harvard.edu/ b01/en/common/item_detail.jhtml?id=109015BMW's Project Switch (B): Importers vs. National Sales Companies
Harvard Business School Supplement 509-024
BMW is faced with potential channel conflicts across several EU country markets. The case concludes the (A) case's exploration of BMW's approach to redesigning the channel in Greece. The case provides details on both headquarter and country head perspective on BMW's channel strategy.
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http://harvardbusinessonline.hbsp.harvard.edu/ b01/en/common/item_detail.jhtml?id=509024Breaking through Action Plan
Harvard Business School Exercise 409-059
The "Breaking Through Action Plan" is a developmental tool based on the book, Breaking Through: The Making of Minority Executives in Corporate America by David A. Thomas and John J. Gabarro. The Action Plan was originally designed as part of a facilitated session but can also be used in conjunction with the book. The Action Plan guides individuals through an examination of the critical areas of competence, credibility, confidence, and relationships. Completing this Action Plan will allow individuals to reflect on these critical areas and help them determine appropriate and impactful steps to help further their development.
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http://harvardbusinessonline.hbsp.harvard.edu/ b01/en/common/item_detail.jhtml?id=409059The Chubb Corporation in China
Harvard Business School Case 209-021
The Chubb Corporation, headquartered in the U.S., was the holding company for a number of property and casualty insurance companies which operated in 29 countries. In 1979, the Chinese government, as part of its "reform and open" policy invited a delegation of Chubb executives to discuss insurance issues. In the mid-1990s, Chubb opened representative offices in Beijing, Shanghai, and Shenzhen to do market research and assess the potential of the Chinese insurance market. In 2000, China authorized Chubb (one of only three foreign insurers) to sell insurance in the country. During the next five years China's non-life insurance industry grew from $8.3 billion in 2001 to $15.9 billion in 2005. Yet in 2007, domestic insurers continued to dominate market share and, Chubb had not realized the profits it had anticipated. The case provides an overview of property and casualty insurance, the Chinese insurance market and the challenges that foreign-based insurers have in entering an emerging market. Students are asked to decide what Chubb's China strategy should be moving forward.
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http://harvardbusinessonline.hbsp.harvard.edu/ b01/en/common/item_detail.jhtml?id=209021Clifford Chance: Repotting the Tree
Harvard Business School Case 207-073
Clifford Chance, LLP, a global law firm headquartered in London, needs to make a decision whether to stay in the central business district of London or move to a redeveloped business park at Canary Wharf, three miles outside of central London. Peter Charleton, head of the London Office, is proposing to move to Canary Wharf and building a single, landmark headquarters with all the necessary amenities and premium fit-outs that are appropriate for an elite law firm. The tension surrounding the case is the choice to move from the hub of commerce in central London to a relatively obscure site whose owners (Olympia & York) have a history of financial bankr