\ December 2016



As the year draws to a close, we reflect on our past achievements and begin making resolutions for 2017. At CUBE, we have been busy with a little bit of both while our researchers actively continue their pursuit of excellent research.

In 2016 we had a record high number of notable papers authored by our researchers and published in leading international journals. More precisely 29 papers have already been published and another 9 are forthcoming in journals such as Management Science, Marketing Science, Strategic Management Journal, Review of Financial Studies,  J. of Finance, J. of Financial and Quantitative Analysis, J. of Consumer Psychology, J. of Business Ethics, Academy of Management Journal and J. of Business Venturing.

We have also hosted several research conferences, namely the 2016 Lisbon Accounting Conference CATÓLICA|NOVA” (June 14 2016), the 2nd Mediterranean Consumer Research Symposium (December 9 2016) and Digitalize or Die (October 11-12 2016) and are already planning several other conferences for 2017, including the Theories and Methods in Macroeconomics - T2M (March 16-17 2017), the 2017 Lisbon Accounting Conference CATÓLICA|NOVA (June 12 2017) and the 1st OUI Health - Open and User Innovation – Health Workshop.

Our researchers also had several grants approved. A point in case, Prof. Rene Bohnsach had a Horizon2020 proposal approved, entitled “inteGRIDy - integrated Smart GRID Cross-Functional Solutions for Optimized Synergetic Energy Distribution, Utilization & Storage Technologies”. Other partners include Siemens, ATOS and AT Kearney, Politecnico di Milano, Lisboa ENOVA among other. 

I would also like to point out that some of our project keep receiving international recognition. For example, Patient Innovation was one of five projects recognized as an example of "Commitments to Collective Action” at a summit hosted by the New York Academy of Sciences (NYAS) for contributing to the UN’s Sustainable Development Goals. Patient Innovation's participation in the event was recognized and deemed “highly encouraging” by the UN Secretary-General Ban Ki-moon.

We will continue to report on our researchers' growing international reputation through their various research and conference work in the months ahead not only in this newsletter, but also in our website and facebook.

Merry Christmas and Happy 2017!
Pedro Oliveira

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Prof. Fernando Branco’s (CATÓLICA-LISBON) paper “Too Much Information? Information Gathering and Search Costs” coauthored with Sun, M. and Villas-Boas, J. M. was published in Marketing Science. In this paper, the authors model costly consumer information search in the presence of limited information and derive the consumer’s optimal stopping rule for the search process.

The paper entitled “Collateralization, Bank Loan Rates and Monitoring”, authored by Prof. Geraldo Cerqueiro (CATÓLICA-LISBON) together with Ongena, S. and Roszbach, K. was published in Journal of Finance. The authors show that collateral plays an important role in the design of debt contracts, the provision of credit, and the incentivizing of lenders to monitor borrowers.

Prof. Geraldo Cerqueiro also has the paper “Debtor Rights, Credit Supply, and Innovation” (together with Hegde, D., Penas, M. F. and Seamans, R. C.) forthcoming at Management Science. In this paper, the authors investigate the effects of regional and temporal variation in U.S. personal bankruptcy laws on firms’ innovative activities.

The paper “The effect of trade secret legal protection on venture capital investments: Evidence from the inevitable disclosure doctrine” by CATÓLICA-LISBON Professors Francesco Castellaneta, Raffaele Conti and Francisco Veloso, together with CATÓLICA-LISBON|CMU doctoral student Carlos Kemeny, was published in the Journal of Business Venturing. This article investigates how the inevitable disclosure doctrine, a form of trade secret legal protection, affects venture capital (VC) investment.

Professors Conti and Castellaneta also have their paper “Money Secrets: How Does Trade Secret Legal Protection Affect Firm Market Value? Evidence from the Uniform Trade Secret Act”, coauthored with Kacperczyk, O., forthcoming at Strategic Management Journal. The authors investigate the impact of trade secret legal protection on firm market value in the context of acquisitions.

The paper “When and why we forget to buy” by Prof. Daniel Fernandes (CATÓLICA-LISBON) together with Puntoni, S., van Osselaer, S., Cowley, E. was published in the Journal of Consumer Psychology. In this article, the authors examine when consumers forget to buy items they intended to buy, and show that the propensity to forget depends on the types of items consumers intend to purchase and the way consumers shop. Consumers may shop using a memory-based search by recalling their planned purchases from memory and directly searching for the products.

Prof. Leonor Modesto’s paper “Endogenous Credit and Investment Cycles with Asset Price Volatility”, together with Carli, F., was accepted for publication in Macroeconomic Dynamics. In this paper, the authors introduce a specific credit friction, limited commitment, in a macroeconomic general equilibrium model with production and investment in productive capital, where agents can trade bonds. They show that this economy always displays one equilibrium where bonds are traded.

The paper "Institutional complexity in turbulent times: Formalization, collaboration, and the emergence of blended logics” by Prof. Tommaso Ramus (CATÓLICA-LISBON) and Vaccaro, A., Brusoni, S. is forthcoming at Academy of Management Journal. This paper explores how organizations dealing with institutional complexity manage internal tensions triggered by environmental turbulence. Based on a longitudinal, comparative study, the authors extend previous research that has identified collaboration and formalization as possible mechanisms to reconcile organizational tensions in such situations.

The paper by Prof. Andrew Hafenbrack, “The Pipeline Project: Pre-Publication Independent Replications of a single laboratory’s research pipeline” (together with Schweinsberg, M. et al.), was published in the Journal of Experimental Social Psychology. This crowdsourced project introduces a collaborative approach to improving the reproducibility of scientific research, in which findings are replicated in qualified independent laboratories before (rather than after) they are published. The goal is to establish a non-adversarial replication process with highly informative final results.

Prof. Paulo Nuno Lopes (CATÓLICA-LISBON), Lopes published an article, "Emotional intelligence in organizations: Bridging research and practice", in Emotion Review. Although theory and research on emotional intelligence in the workplace has generated high expectations and promising findings, the gap between research and practice looms large.

“The Scientific Impact of Developing Nations” authored by Prof. Francisco Veloso (CATÓLICA-LISBON), together with Gonzalez-Brambila, C., Reyes-Gonzalez, L., Perez-Angón, M.A. was published in the PLoS One Journal. This paper analyzes science productivity for nine developing countries.

Tatiana Marques, CATÓLICA-LISBON Research Fellow, together with Professors David Patient and Irina Cojuharenco (Northeastern University) have had a chapter, "The 'who' of organizational justice: Source effects on justice judgments," accepted for publication in the book "Organizational justice: International perspectives and conceptual advances" (Eds. Moliner, Cropanzano and Martinez-Tur), Routledge, Taylor & Francis. In this chapter, the impact on employee fairness perceptions of who makes and communicates decisions is explored. The authors review theoretical and empirical literature in order to propose a conceptual model for studying source effects on justice perceptions and work reactions.

Professors Celine Abecassis-Moedas and Francesco Sguera (CATÓLICA-LISBON) together with John E. Ettlie, had their paper “Observe, Innovate, Succeed: A Learning Perspective on Innovation and the Performance of Entrepreneurial Chefs” published at Journal of Business Research. The paper investigates how different models (parents, academic and mentors) influence the innovation behaviour of entrepreneurs and their success in the context of haute cuisine. 

Professor Francesco Sguera also has his paper “Curtailing the harmful effects of workplace incivility: The role of structural demands and organization-provided resources”, co-authored with Bagozzi, R. P., Huy, Q. N., Boss, R. W. and Boss, D. S., published in the Journal of Vocational Behavior. Workplace incivility is a widespread phenomenon that silently damages many organizations and people working within them. Whereas previous research has focused on preventing and eradicating uncivil behaviors, Sguera and colleagues investigated factors that enhance or buffer the negative consequences of incivility in a public research hospital.

The article “The Impact of Private Labels on Consumer Store Loyalty: an Integrative Perspective” by Prof. Rita Coelho do Vale (CATÓLICA-LISBON) together with Verga Matos, P. and Caiado, J. (ISEG), was published in the Journal of Retailing and Consumer Services. This research studies the role of private labels (PLs) on consumers’ store loyalty. It offers an integrative approach that comprises several store loyalty drivers (in-store and economic factors), analyzing the role that PLs play among different types of retailers.

Prof. Rita Coelho do Vale also had an invited chapter entitled “Does packaging matter? Private Labels’ Trade Dress Code and Consumer Choice” published in the “Handbook of Research on Strategic Retailing of Private Label Products in a Recovering Economy”.

The paper “Software Piracy in the Presence of Open Source Alternatives “ authored by Prof. Fernando Machado together with Santanam, R. and Sainam, P. was accepted for publication in the Journal of the Association for Information Systems. The authors develop a model to investigate the manner in which the pricing, profitability and protection strategies of the seller of a proprietary digital good respond to changing market conditions.

Prof. Rene Bohnsack (CATÓLICA-LISBON) published his paper co-authored with Helms, T. and Loock, M. “Timing-based business models for flexibility creation in the electric power sector” in Energy Policy. In this paper the authors explore new business models and their underlying mechanisms that emerged in the electric power sector due to the increased push for wind and solar power.

The paper “Can consumption taxes stabilize the economy in the presence of consumption externalities?” by Professors Teresa Lloyd-Braga and Leonor Modesto (CATÓLICA-LISBON) will be included in the book “Sunspots and Non-Linear Dynamics: Essays in honor of Jean-Michel Grandmont”.


Prof. Daniel Fernandes (CATÓLICA-LISBON) has won a 2015 Emerald/EFMD Outstanding Doctoral Research Award for his PhD research “The functions and dysfunctions of memory cues”. His research was recognized by the editorial team of Management Decision as the joint winner of the 2015 Emerald/EFMD Outstanding Doctoral Research Award in the Management and Governance category.

The paper " Selling out, keeping it real or creative destruction: Trade-off strategies in sustainable entrepreneurship " authored by Prof. Rene Bohnsack (CATÓLICA-LISBON) together with Lori Divito has been awarded the Best Paper Award at the 6th Leuphana Conference on Entrepreneurship 2016, along with a 1000 EUR prize.


The project “Me²” has been awarded €862,880 from the ERA-NET COFUND Smart Cities and Communities (ENSCC), under Horizon 2020. The project will start in June 2016 and CATÓLICA-LISBON will be the work package leader for the business model development, the consumer analysis, and the policy research, all under the responsibility of Prof. Rene Bohnsack.


Prof. David Patient has been elected to the Board of Governors of the Academy of Management. The 15-person Board of Governors is the governing body of the Academy, which has more than 18,000 academic, researcher, and practitioner members from over 100 countries. Following prior service and leadership roles in the Academy’s International Theme Committee and its Organizational Behavior Division, Prof. Patient was invited by the current BoG to run for a Representative-at-Large position. In early April, he was one of three new Representatives-a-Large elected from a slate of nine highly qualified candidates, representing some of the world’s top business schools.

The paper by Ana Paula Giordano (Research Assistant at CATÓLICA-LISBON), together with CATÓLICA-LISBON Professors David Patient and Francesco Sguera, and Ana Passos (ISCTE-IUL), “Antecedents and consequences of Collective Psychological Ownership", has been recognized one of the best evaluated papers by reviewers in the Organizational Behavior division of the Academy of Management. This honor entitles the paper to be published in the Best Paper Proceedings of the Academy of Management Meeting (held in August 2016 in Anaheim, California).


Money Secrets: How Does Trade Secret Legal Protection Affect Firm Market Value? Evidence from the Uniform Trade Secret Act

By Professors Francesco Castellaneta, Raffaele Conti, Aleksandra “Olenka” Kacperczyk

How does the legal protection of trade secrets affect firm market value? Trade secrets—encompassing information on marketing data, manufacturing know-how, chemical formulae, and technical data—are “arguably the most important and most heavily litigated intellectual property rights” (Risch, 2007: 1) and are considered the “crown jewels” of a firm’s intellectual capital. Yet, researchers have not linked trade secret protection to firm value. To fill this gap, we focus on the market for corporate control, which represents strategic factor markets where bundles of resources are traded and the competitive advantage of firms is monetized.

Against this background, we propose that trade secret protection may affect firm market value in two opposite ways, generating a paradox worth exploring. On one hand, a stronger protection of a firm’s trade secrets might limit the outward flow of information about trade secrets to competitors and thus lessen the risk of misappropriation and imitation. Hence, the target’s value might increase. On the other hand, trade secret protection might limit the amount of firm-specific information available to potential buyers and thus increase the information asymmetries between buyers and sellers. Lack of information increases uncertainty about the value of the target firm, motivating buyers to discount their offers as a compensation for pursuing a more uncertain and riskier deal. Hence, the target’s value might decrease. In sum, trade secret protection may be a double-edged sword for the target firm, creating advantageous information asymmetries vis-à-vis its competitors as well as disadvantageous information asymmetries vis-à-vis its potential buyers.

To explore these seemingly contradictory arguments, we examine the heterogeneous effects of trade secret protection on the target’s market value using a sample of 1,890 U.S. firms managed by 132 private equity (PE) firms. We find support for the notion that the effect of trade secrets protection is contingent in its nature. On one hand, a stronger protection of trade secrets leads to an increase in firm market value when the risk of mobility of knowledge workers is higher, making the protection of trade secrets beneficial to the target firm. On the other hand, the effect on firm market value is negative when the target’s industry displays more resource-value uncertainty and a higher risk of poor investments. Overall, the findings in our study suggest that the protection of trade secrets is a double-edged sword and that its effects on firm value are more complex than may have been thought.


Online Research Panel - Already over 6800 participants

The Online Research Panel (PEO) is an online management recruitment system. Coordinated by Prof. Rita Coelho do Vale, the PEO allows online and in-person studies to be conducted in the fields of Economics and Management. PEO was launched in July 2015 and already has more than 6.800 participants registered, providing a unique research tool to collect data from a heterogeneous and highly diversified panel.

Observatory of Portuguese Society (OPS) - First Study on Satisfaction, Happiness and Well-Being

The Observatory of Portuguese Society (OPS), coordinated by Prof. Rita Coelho do Vale, was officially launched at the end of 2015 and is dedicated to the study of the Portuguese Society. The observatory measures and monitors specific aspects of Portuguese society, such as well-being, quality of life, happiness, health features, life satisfaction, security, performing its contextualization at an international level. In order to do so, the OPS will collect relevant societal data using both direct data collection methods, through the Online Research Panel of CATÓLICA-LISBON, and indirect data collection methods (e.g., socioeconomic, demographic and health statistics provided by national and international entities). The OPS will increase understanding of important economic and psychosocial issues in Portuguese Society.


Prof. Francesco Sguera in the Harvard Business Review here

Prof. Rita Coelho do Vale in the Mental Floss here

Prof. Francesco Castellaneta in the Corriere della Sera here (Italian only)

Study with the participation of Prof. Andrew Hafenbrack mentioned in The Atlantic here and in the FiveThirtyEight here

Prof. René Bohnsack sheds light on the Dieselgate case of Volkswagen using insights from a recent publication on the developments of low-emission vehicles in the car industry in Technological Forecasting and Social Change. here (Portuguese only)

Study with the participation of Prof. Miguel Gouveia mentioned in the Publico here (Portuguese only)

Patient Innovation in the Business Daily Africa here

Patient Innovation in the Sanità 24 here (Italian only)

Patient Innovation in the Neue Zürcher Zeitung here (German only)

Patient Innovation in Proto, Massachusetts General Hospital maganize (USA) here

Patient Innovation in Sic Notícias here (Portuguese only)

Patient Innovation in Sociedade Civil - RTP here (Portuguese only)

Patient Innovation in the Público here (Portuguese only)

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