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Building Trust Is a Blood Sport
Most leaders are so overworked that they have few resources left with which to energize their teams. And yet, as Peter Drucker noted, the foremost job of a leader is to “take charge of your own energy and then help orchestrate the energy of those around you.” This article uses science to explain why trust is an effective means to improve performance. It then shows how trust can be measured and provides an action plan to build and increase workplace trust. Dr. Zak’s lab discovered in 2004 that the brain chemical oxytocin allows us to determine who to trust. The mathematical models he has built to understand how trust affects economic behaviours reveal that trust accelerates transactions such as investments in factories and equipment. It does this by reducing transaction costs associated with distrust. When there is increased trust between trading partners, there are fewer delays and more deals occur. Conveniently, the eight factors that create a culture of organizational trust — Ovation, eXpectation, Yield, Transfer, Openness, Caring, Invest and Natural — have an easy-to-remember acronym: OXYTOCIN. <br><br> To increase trust in their organizations, leaders should: 1. View employees as volunteers, who continue to show up only if they are engaged by the organization’s purpose. 2. Use joy at work as a measure of an effective culture. 3. Experiment by changing OXYTOCIN factors one at a time and measuring the effect on joy and productivity. 4. Invite co-workers to tangibly recognize each other weekly (see Ovation). 5. Communicate your organization’s transcendent purpose internally and externally via an engaging human-scale story that goes beyond increasing shareholder value. -
Keeping up with The Joneses: Stealth, secrets, and duplicity in marketing relationships
Stealth, or undercover, marketing involves the disguising of marketing communications that marketers undertake to purposefully influence their audiences without the audiences being aware of these activities. Inasmuch as stealth marketing involves secrecy (the withholding of information) and miscommunication (the communication of partial or misleading information), it is at least on some level duplicitous. Duplicity is the double act of secrecy and misrepresentation. In this article we explore duplicity in marketing communications. Specifically, we deconstruct the movie The Joneses to explore the various ways in which both marketers and consumers employ duplicity in their communications-to each other and themselves. We conclude by exploring the ethical and functional issues duplicity raises, and suggest that irony is one way in which duplicity can be ethically and productively employed. -
Good native advertising isn't a secret
In this article, we develop an understanding of native advertising, a growing new form of online advertising, which we define as desired marketing communications that appear in-stream. Current forms of native advertising can be considered in terms of their secrecy: how aware a consumer is of a native advertisement's source and intent. Based on existing research, we argue that less secretive native advertising will be more successful in the long run, and illustrate this using several cases. Finally, we detail important considerations for those marketers looking to capitalize on native advertising. -
Trade secrets: Managerial guidance for competitive advantage
While scholars have explored the construct and ramifications of intellectual property, most research efforts have focused on patents as a means of protecting a firm's intellectual capital. Yet Hemphill (2004) suggested that trade secrets can affect the difference between economic success and failure of the firm. When trade secrets are discussed, there is a tendency to focus on the more famous secrets that have received considerable hype in the popular press (e.g., Coca-Cola, KFC, McDonald's). To address this shortage of trade secrets storytelling, the research reported here engaged in a historiographic approach to capturing and compiling an in-depth look at various company trade secrets and elaborating on the strategic intent behind many of the secrecy efforts. Product and process secrets were seen to be used to develop positive brand perceptions, establish consistent brand purchasing, aid in distinguishing products and services from competitive offerings, and build market share. We suggest that managers should regularly assess which assets are suitable for patent, product design, trademark, copyright, or trade secret status and work diligently to protect the firm's intangible assets. -
Internet of Things: Convenience vs. privacy and secrecy
In this article we introduce the Internet of Things to the broad managerial community and explore one of its central tensions: convenience vs. privacy and secrecy. We clarify the ways in which IoT differs from Web 2.0 and then highlight opportunities, challenges, and managerial guidance. In addition, we explore the prominent issue of privacy and secrecy. Due to substantial increases in amounts of consumer-related data and their accessibility as well as potential tradeoffs in benefits associated with IoT and in properties of humanness associated with the consumer experience, the managerial issue of privacy is elevated to a level never before realized-perhaps on par with, or worthy of inclusion as an element of, the classic marketing mix. -
Balancing customer privacy, secrets, and surveillance: Insights and management
As surveillance technology advances and becomes more data rich and less intrusive and costly, brands collect vast quantities of customer data in order to gain customer insights to remain competitive. Brands conduct customer surveillance often without considering the consequences on customer relationships. Because of customer surveillance activities, customers may also experience privacy intrusions and turn to customer secrecy strategies that hide or disguise their data. To reduce this reaction, we propose a set of surveillance prompts to structure market intelligence databases to increase the efficiency of, and thus reduce the quantity of, customer surveillance activities while increasing data integrity and the potential value of customer insights. By discussing the need for brands to collect business and market intelligence, as well as detailing five types of customer data resources, we lay the groundwork for selecting potential customer data resources that best fit a brand's customer insight needs. We conclude with a discussion of two important considerations of a brand's customer surveillance strategy. -
Someone to watch over me: The integration of privacy and corporate social responsibility
Firms' relationships with key stakeholders are increasingly threatened by privacy concerns. Given the role of firm corporate social responsibility (CSR) initiatives in strengthening and enhancing these relationships, this article examines the intersection between privacy issues and CSR activities, and creates a framework for assessing privacy-related activities as an element of broader CSR strategy. Specifically, the present research considers a firm versus customer focus in privacy-related activities, as well as privacy-related activities in the form of business practices versus goods and services. We identify four areas of overlap between CSR and privacy. We highlight the potential opportunities to better manage privacy-related issues of stakeholders, and integrate these concerns into the broader CSR agenda. -
Everyone loves a secret: Why consumers value marketing secrets
Everyone keeps secrets, and organizations are no exception. The current literature on secrecy in organizations is centered on the managerial perspective of secrets as competitive resources. In contrast, this conceptual article takes a consumer-centric approach and presents a detailed explanation of why and how marketing secrets create value for consumers. First, a discussion of agency highlights three consumer roles in the marketing of secrets: Insiders, who know the secret; Aspirants, who know of the secret; and Outsiders, who do not know of the secret. Second, based on two mechanisms of awareness and primacy, a value chain of secrecy is proposed that presents four types of value that consumers can extract from secrets: acquisition value, acknowledgment value, leverage value, and dissemination value. Lastly, secrecy is revisited as a strategic marketing tool for creating value for consumers. -
The secrets of secret societies: The case of wine
Secret societies have intrigued humanity since earliest times. In this article we explore secret societies in the context of wine and how these institutions might be insightful in formulating marketing strategies. We contrast the characteristics of secret societies with those of existing secret wine societies such as The Wine Society and La Confrérie. Yet while some of these functions and characteristics transfer well, many 'secret' wine societies aren't actually that secret. Some of the characteristics of secret societies are also found in consumer brand communities. Armed with this knowledge, wine marketers can exploit the characteristics of secret societies to target market segments with precision and to gain the benefits of focused distribution opportunities. -
We're leaking, and everything's fine: How and why companies deliberately leak secrets
Although the protection of secrets is often vital to the survival of organizations, at other times organizations can benefit by deliberately leaking secrets to outsiders. We explore how and why this is the case. We identify two dimensions of leaks: (1) whether the information in the leak is factual or concocted and (2) whether leaks are conducted overtly or covertly. Using these two dimensions, we identify four types of leaks: informing, dissembling, misdirecting, and provoking. We also provide a framework to help managers decide whether or not they should leak secrets. -
The secret to protecting trade secrets: How to create positive secrecy climates in organizations
Many companies derive their competitive advantage from the use and protection of trade secrets. This means that if these companies' trade secrets are misappropriated, it can be extremely costly and even jeopardize their survival. In order to try to prevent employees from inappropriately divulging trade secrets, companies will often implement rules and procedures such as non-disclosure agreements that limit what employees are allowed to do with trade secrets. In spite of the prevalence of these procedures, billions of dollars in trade secrets are leaked and stolen every year, most often by companies' own employees. We argue that a key to the effective protection of trade secrets lies in the creation of positive secrecy climates, wherein keeping organizational secrets is strongly valued by employees and seen as a part of their formal role responsibilities. We explain how managers can develop positive secrecy climates in their organizations, and outline the risks and potential rewards of these climates. -
The Rising Tide of Artificial Intelligence and Business Automation: Developing an Ethical Framework
Recent advancements in robotics, artificial intelligence, machine learning, and sensors now enable machines to automate activities that once seemed safe from disruption-including tasks that rely on higher-level thinking, learning, tacit judgment, emotion sensing, and even disease detection. Despite these advancements, the ethical issues of business automation and artificial intelligence-and who will be affected and how-are less understood. In this article, we clarify and assess the cultural and ethical implications of business automation for stakeholders ranging from laborers to nations. We define business automation and introduce a novel framework that integrates stakeholder theory and social contracts theory. By integrating these theoretical models, our framework identifies the ethical implications of business automation, highlights best practices, offers recommendations, and uncovers areas for future research. Our discussion invites firms, policy makers, and researchers to consider the ethical implications of business automation and artificial intelligence when approaching these burgeoning and potentially disruptive business practices. -
Value Co-Creation in Web-Based Multisided Platforms: A Conceptual Framework and Implications for Business Model Design
The internet is fertile ground for multisided platforms that articulate the production of goods or the execution of services between third parties, thus relying on value co-creation as their core business model mechanism. However, an understanding of co-creation that underlies dynamics and implications for business model design and innovation is still dispersed and fragmented along a number of literature streams. This article aims to provide an understanding of the value co-creation process in web-based multisided platforms. A conceptual framework is proposed based on the combination of an analysis of a comprehensive systematic literature review, interviews with academics and entrepreneurs, and an analysis of secondary data on representative cases of multisided business models based on value co-creation. We offer a model of value co-creation in multisided platforms and advance a number of propositions regarding value dynamics, including the role of the focal firm in defining and maintaining value creation, propositions, and capture structures with consequences to monetization schemes and actors' contributions and motivations for value co-creation. This article contributes to the understanding of the co-creation phenomenon, especially in multiple actor interaction regimes, and raises a number of suggestions for future research. -
Family-Driven Innovation: Resolving the Paradox in Family Firms
This article presents an integrated, contingency perspective on family firm innovation called Family-Driven Innovation (FDI). The framework highlights the need for consistency between a family firm's strategic innovation decisions and its idiosyncrasies to achieve and sustain competitive advantage through innovation. This article also offers some directions for future research on FDI and serves as an introduction to this special section on family firms. -
Resources and Innovation in Family Businesses: The Janus-Face of Socioemotional Preferences
Family business socio-emotional preferences are often Janus-faced. Some strive to create a strong business they can pass on to offspring by building innovation-promoting resources such as human, relational, and financial capital. Other family firms cater to family desires for unqualified nepotism, altruism towards undeserving kin, and appropriation of firm assets to fulfill parochial desires that erode these resources. This article explores how such preferences, together with their impact on resources and the innovation demands of their markets, shape the approach to innovation. -
Managing Turbulence: Business Model Development in a Family-Owned Airline
How can a family business reduce environmental uncertainty and dependence by developing its business model, changing the logic of creating and capturing value through its activities? Cimber, a Denmark-based family-owned airline, has developed different business models since its establishment in 1950. Resource dependence theory can help illuminate the actions that Cimber took in this process. The family played an important role in balancing internal and external influences, shaping the scope and complexity of the business model, and creating specific path dependencies. -
Family Assets and Liabilities in the Innovation Process
Innovation in family firms is often driven by family assets, valuable resources that are particularly prevalent in family firms. For example, they have particularly strong networks that can be deployed in an innovation context. These family assets can over time atrophy and stifle rather than stimulate innovation performance. However, family firms can fight this process by institutionalizing innovation within the family and the firm by means of family and corporate governance and through incentivizing key individuals in the innovation process. -
Diagnosing Innovation Readiness in Family Firms
Innovation is essential for family firms to remain competitive. One means to enhance the success of innovation within family firms is to assess readiness prior to beginning the innovation process. This article introduces the Readiness for Innovation in Family Firms (RIFF) framework, which provides a diagnostic assessment and identifies multiple factors associated with innovation readiness. By applying the RIFF framework, managers of family firms can focus on specific factors that prepare the firm to engage in the innovation adoption process, increasing success. -
The Three Faces of Bounded Reliability: Alfred Chandler and the Micro-Foundations of Management Theory
Alfred Chandler, the celebrated business historian, provided detailed descriptions of the reasons for failed human commitments and the managerial tools needed to prevent/remediate such failings in the context of large business firms. Chandler's historical narrative identifies three distinct "faces" of bounded reliability-opportunism, benevolent preference reversal, and identity-based discordance-as the main drivers of commitment failure. Adopting bounded reliability (BRel) as a micro-foundation in management studies will raise the quality and relevance of scholarly recommendations to improve managerial decision making and action, because analysis of BRel challenges closely mirrors the real-world problems facing practicing managers. -
Smarter, Smaller, Safer Robots
A new generation of adaptive robots are creating new efficiencies for manufacturers and changing how companies build things, including factory floors themselves. And the robots are far more collaborative than their predecessors, enhancing engagement and job satisfaction among their human colleagues. New research headed by MIT's Julie Shah highlights the advantages of the new robots, showing that they have made manufacturing automation a less extreme commitment than it once was and offering a glimpse into the gains that will come when the new machines are paired with high performers. This reprint contains three additional Idea Watch articles. "Exploiting the 'Mobile Internet Gap'" is a visual representation of the rapid growth of digital private equity investment in countries where lots of people have cell phones but few of those phones have internet access--yet. "Do Regulators Go Easier on Socially Responsible Firms?" describes research showing that investing in CSR may be rewarded with leniency by regulators in the event of bribery violations. "'Inoculate' Buyers Against Disappointment" examines research demonstrating that instilling positive feelings about a company and then mildly challenging those feelings can shore up customer satisfaction if service breakdowns occur.