Significance
Markets are central to modern society, so their failures can have devastating effects. Here, we examine a prominent failure: price bubbles. We propose that bubbles are affected by ethnic homogeneity in the market and can be thwarted by diversity. Using experimental markets in Southeast Asia and North America, we find a marked difference: Market prices fit true values 58% better in diverse markets. In homogenous markets, overpricing is higher and traders’ errors are more correlated than in diverse markets. The findings suggest that price bubbles arise not only from individual errors or financial conditions, but also from the social context of decision making. Informing public discussion, our findings suggest that diversity facilitates friction that enhances deliberation and upends conformity.
PurposeThe purpose of this study is to investigate how enterprise social media (ESM) use combats turnover by impacting work perceptions, and ultimately turnover intention.Design/methodology/approachThis study undertook a survey at a major information technology (IT) corporation. Data from a total of 276 working professionals were collected to test the proposed research model.FindingsThe structural equation modeling results show that ESM increase workplace integration; workplace integration decreased turnover intention, augmented job satisfaction and also reduced job tensions (perceived work stress) – job satisfaction and work stress perceptions influenced turnover intention.Research limitations/implicationsLow response bias is one of the limitations in this study, although this study used a priori and post hoc measures to mitigate non-response bias. This study contributed to the theory by improving our understanding of the role of ESM in combating turnover by impacting work perceptions through the lens of social capital and emotional dissonance theories. This study also has practical implications for managers. The results suggest that incorporating ESM within organizations improves employees' perceptions and behaviors – providing an option for managers to consider it as a way to save costs associated with employee turnover.Originality/valueAlthough several studies have been conducted on ESM, our understanding of the impact of ESM on work perceptions and turnover is still far from complete. This paper helps to close the gap in literature by improving our understanding of how ESM combats turnover by influencing work perceptions in an organization, which provides an essential contribution to research and practice in the field.
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