EXPRESS: Onboarding Salespeople: Socialization Approaches

The effective training of salespeople is crucial to a firm’s success; there is arguably no more critical type of training than a salesperson’s onboarding. In this study, the authors leverage a natural field experiment in which a firm’s newly hired salespeople can undergo onboarding through either a decentralized program or a centralized program to examine the relative impact of each program. Drawing on organizational socialization theory, the authors consider whether an onboarding program that incorporates both individualized and institutionalized socialization tactics (the decentralized program) can develop salespeople into higher performers by encouraging them to take a more innovative and adaptive approach to different facets of the sales role. The findings reveal that salespeople who underwent the decentralized program achieved approximately 23.5% higher sales performance than those who underwent the centralized program. The performance benefits of the decentralized program were amplified for salespeople whose managers had a narrower span of control. In addition, these performance benefits were appreciable for those salespeople transitioning from another job but negligible for those transitioning from school. A scenario-based experiment enriches the field experiment’s findings by showing evidence of the theorized mechanism underlying the sales performance benefits observed: the fostering of an innovative role orientation.

Credit-linked insurance bundles in Zambia: evidence from the aftermath of a shock

PurposeThis research seeks to assess the impact of a credit-linked insurance bundle in Zambia, in terms of the inputs used and the amount of maize subsequently produced and sold.Design/methodology/approachTo estimate the impact of a credit-linked insurance bundle, this research relies on a natural field experiment. A cross-sectional survey, conducted among 409 households that enrolled in a credit-linked insurance program prior to a drought and adverse market conditions, revealed that 252 households dropped out of the program. Of these, 113 households left for an exogenous, involuntary reason (i.e. group loan was not repaid on time).FindingsA comparison of households that used the program and those that dropped out reveals that smallholders who lost the credit-linked insurance bundle purchased less fertilizer (−36%), and this input restriction resulted in diminished harvests (−27%) and less quantity sold (−31%).Research limitations/implicationsRisk-exposed smallholders tend to be severely credit constrained, so they cannot invest in sufficient inputs to increase their yields. A credit-linked insurance scheme provides such risk-exposed smallholders, who lack or have only limited collateral, with commercial agricultural credit services and greater access to input. The current analysis cannot specifically attribute the impact of individual components of the bundle (i.e. credit, insurance and input supply), but the overall impact is substantial. The implication of this research is that policy initiatives which support a credit-linked insurance system should not only encourage upscaling but also resilience of the scheme.Practical implicationsAligning government and public support programs with private initiatives suggests opportunities for greater benefits.Social implicationsAfrican farmers are mainly smallholders, so they face inherent production risks. They also tend to be severely credit constrained, with few means to mitigate these risks, so they suffer from a limited capacity to invest in improved farm technology systems that might increase their productivity. Insured input bundles could help farmers to cope better with adverse risks and facilitate increase productivity.Originality/valueThis research design exploits the peculiarity of the data, including group liability and a strict time window for loan repayments to remain eligible in a forthcoming growing season. This impact assessment approach is rigorous in controlling for self-selection bias and thus offers opportunities to establish how households in each sub-sample (eligible or not) are (un)able to ride out a lean season, following a drought and adverse market conditions.

Kind or contented? An investigation of the gift exchange hypothesis in a natural field experiment in Colombia

The gift exchange hypothesis postulates that workers reciprocate above market-clearing wages with above-minimum effort. This hypothesis has received mixed support in dyadic employer-worker relationships. We present a field-experimental test to assess this hypothesis in the context of a triadic relationship in which only one out of two workers receives a pay increase. We conjecture that inequality aversion motivations may thwart positive reciprocity motivations and analyze the interaction between such motivations theoretically. Across three treatments, the pay increase is justified to workers based on either relative merit or relative need or was arbitrary as no justification was offered. Two conditions in which either one or both workers receive a bonus serve as the reference. In contrast to the gift exchange hypothesis, we find that pay increases lead to a decrease in productivity. Such a decrease is most sizable in the condition where both workers receive the bonus. A post-diction of this result is that workers interpret the monetary bonus as a signal of the employer’s contentment with their effort, which makes them feel entitled to reduce their effort. In other treatments, receiving the pay increase while the coworker does not has a positive effect on productivity, especially when the pay increase is based on merit. This result is consistent with statusseekingpreferences rather than aversion against advantageous inequality. Conversely, not receiving the pay increase while the coworker does, leads to lower productivity, especially when the pay increase is assigned based on relative needs.

Habitat fragmentation induces rapid divergence of migratory and isolated sticklebacks

The adaptive capacity of many organisms is seriously challenged by human-imposed environmental change, which currently happens at unprecedented rates and magnitudes. For migratory fish, habitat fragmentation is a major challenge that can compromise their survival and reproduction. Therefore, it is important to study if fish populations can adapt to such modifications of their habitat. Here, we study whether originally anadromous three-spined stickleback populations (Gasterosteus aculeatus; "migrants") changed in behavior and morphology in response to human-induced isolation. We made use of a natural field-experiment, where the construction of pumping stations and sluices in the 1970s unintendedly created replicates of land-locked stickleback populations ("resident") in the Netherlands. For two years, we systematically tested populations of residents and migrants for differences in morphology and behavioral traits (activity, aggressiveness, exploration, boldness and shoaling) in lab-based assays. We detected differences between migrant and resident populations in virtually all phenotypic traits studied: compared to the ancestral migrants, residents were smaller in size, had fewer and smaller plates and were significantly more active, aggressive, exploratory and bolder and shoaled less. Despite large ecological differences between 2018 and 2019, results were largely consistent across the two years. Our study shows that human-induced environmental change has led to the rapid and consistent morphological and behavioral divergence of stickleback populations in about 50 generations. Such changes may be adaptive but this remains to be tested.

Toward an understanding of the economics of apologies: evidence from a large-scale natural field experiment

We use a theory of apologies to design a nationwide field experiment involving 1.5 million Uber ridesharing consumers who experienced late rides. Several insights emerge: First, apologies are not a panacea – the efficacy of an apology and whether it may backfire depend on how the apology is made. Second, across treatments, money speaks louder than words – the best form of apology is to include a coupon for a future trip. Third, in some cases sending an apology is worse than sending nothing at all, particularly for repeated apologies and apologies that promise to do better. For firms, caveat venditor should be the rule when considering apologies.

Determining actual purchase behaviour from willingness to pay: examining the sale of ethical cotton T-shirts within a festival context

The sale and purchase of socially and environmentally responsible festival clothing is a way for both attendees and event organizers to engage in ethical consumption. While existing research examines hypothetical willingness to pay for ethical festival clothing, there has been no research done on actual purchase behaviour. This study examined if attendees at Mariposa Folk Festival in Ontario, Canada would pay a premium for ethical festival t-shirts, and examined variables that influenced their purchase decision. A natural field experiment recorded the purchase of 350 festival t-shirts, and from this sample 181 purchasers participated in a supplementary survey. Results revealed that attendees paid a premium for the ethical festival t-shirts, and that purchase decision was effected by the visibility of the ethical certification, cost, and promotion of the ethical festival t-shirts at the t-shirt emporium. These results provide insight into what consumers are actually willing to pay for ethical festival clothing and the motivations behind their purchase decisions.