No abstract

T his paper examines how firm investments in technology-based employee monitoring impact both misconduct and productivity. We use unique and detailed theft and sales data from 392 restaurant locations from five firms that adopt a theft monitoring information technology (IT) product. We use difference-in-differences models with staggered adoption dates to estimate the treatment effect of IT monitoring on theft and productivity. We find significant treatment effects in reduced theft and improved productivity that appear to be primarily driven by changed worker behavior rather than worker turnover. We examine four mechanisms that may drive this productivity result: economic and cognitive multitasking, fairness-based motivation, and perceived increases of general oversight. The observed productivity results represent substantial financial benefits to both firms and the legitimate tip-based earnings of workers. Our results suggest that employee misconduct is not solely a function of individual differences in ethics or morality, but can also be influenced by managerial policies that can benefit both firms and employees.

During technological discontinuities, incumbents frequently develop hybrids of competing technical generations. Although some prior work implies that such intergenerational hybrids may be the result of organizational dysfunction, we propose that in some cases hybrids may be sophisticated learning tools that shape organizational adaptation to a technological discontinuity. In this paper, we suggest two mechanisms through which intergenerational hybrids may affect organizational adaptation: spillbacks and spillforwards. In an empirical test among the population of automobile carburetor manufacturers during a technological discontinuity, we observe that organizations developing intergenerational hybrids capture spillback benefits—knowledge spillovers from an emerging technology generation to the current generation. Furthermore, we find that these same organizations also capture spillforwards—spillover benefits from developing higher-performing intergenerational hybrids that improve their product performance in the future technology generation. These results suggest that intergenerational hybrids may be stepping-stones for organizations to learn about and adapt to technology discontinuities.

No abstract

No abstract