Big Business, Small Business, and Not-For-Profit Business Research

Exciting developments from the business world. Here's some of the latest research:

Protip for banks: Don’t over-invest in mortgages. Dr. Natacha Postel-Vinay at University of Warwick has done some research into Chicago during the great depression; the city had the highest urban bank failure rate at the time. Chicago’s real-estate boom led to a banking sector bust, although I’m sure that couldn’t possibly happen again.

Please don’t wait for the next available register. Syracuse University’s Martin J. Whitman School of Management has found that cashiers take longer to ring up customers when they’re all queued up in the same giant line, while they work faster when each cashier is responsible for their own line of customers. Note the part where they admit that “faster” does not equal “better service.”

“Affordability” is in the eye of the beholder (or voucher holder). Researchers from researchers from Florida Atlantic University, the University of Texas, Arlington, and the University of Utah have found that “affordable housing” is not very affordable when you add in the cost of getting to your job.

You don’t have to be crazy to be an executive at a nonprofit organization, but it helps. NC State University research has found that nowhere near as many of them retire “voluntarily” as had been previously assumed. Be sure to read the quote from the guy saying that the only people who take executive roles are the ones who are too naïve to understand what a disaster it’s going to be.

Natural disaster? Entrepreneurs to the rescue! Trenton Williams of Syracuse University has found that entrepreneurship “serves as a vehicle for generating positive social outcomes.” In some situations, survivors of natural disasters can alleviate suffering and generate transformational change for residences experiencing chronic poverty by creating their own businesses.

Frictionless Sharing: Invasive? Or Super Invasive?

If I had to draft a list of things that were objectively worse than Hitler, the Washington Post Social Reader as seen on Facebook would be right up near the top.

Have you seen it? They craft headlines that are incredibly misleading to entice you to click through to the story, but then you can't actually read it until you agree to let the social reader tell all your friends what you're looking at. If they're also interested in the headline, they can't see the accompanying story without telling THEIR friends, and so on.

In fact, I think the concept of "frictionless sharing," the idea that all of your reading, listening, and watching activities online should be broadcast to everyone you know without any effort (or approval!) on your part may be the only thing worse than the social reader.

Is it even legal? Professor Neil M. Richards of Washington University in St. Louis has been in the news lately sharing his concerns about it, so I know I'm not some lone crank. Meanwhile, The Next Web busted SocialCam when it used dodgy techniques to give itself a leg up in online popularity without letting people know just how "frictionless" their experience had become.


The whole concept of frictionless sharing isn't about being frictionless for you and me, the end users, it's about removing the obstacles (read: friction) preventing companies from exploiting you as just another sales tool. I don't care what other people are reading, I don't want other people to know what I'm reading, and I actively resent companies trying to use me as free advertising for their crap.

Can't BEET it!

Ha ha ha. Sorry for the pun, I just couldn't help myself. I'll try not to go too nuts with this story (because that would be BEET-ing a dead horse!)

Apparently, beet juice is kind of a big deal. They've been looking into it over at Wake Forest University, and it has some pretty beneficial health effects. It's all about the nitrates, which I thought were supposed to be harmful compounds found in processed meat like hot dogs, but then I'm not a university biologist so my knowledge is crap.

The body turns nitrates into nitrites, and nitrites improve blood flow. The Wake Forest researchers divided up their test subjects into a group that ate a lot of nitrates, provided by beet juice, and a group that didn't. Then they switched diets halfway through for the participants to make sure that it really was the food that was having the effect. And in all cases, the research supported the theory that increased nitrate consumption leads to improved blood flow.

From there, they are saying that this improves brain activity, and think it's going to be helpful for older adults.

What I want to know is how nasty it was to have to drink 16 ounces of straight beet juice. That's a full pint glass, and when dealing with glasses of that size, I'd rather have the beer. Does beer help increase the blood flow to the brain? If they're interested in studying that, I want to volunteer to be one of the test subjects!

Are Kids Worse Off, or Just More Honest?

This press release from the American Psychological Association has me questioning what they're actually trying to say. I mean, the headline is that college students are "exhibiting" more severe mental illness these days. But does that mean that they're suffering from more severe illness?

What I'm getting at is that just because more college students are reporting (and seeking help for) mental illness now, isn't it possible that there were just as many students in the past who suffered in silence? Let's face it: there's a stigma attached to mental illness, and I think that the current prejudice against mental illness and the people who admit to suffering from it is not nearly as pronounced as it has been in years past. So it's all well and good to call it something like "a shift in the needs of students seeking counseling services," (as John Guthman, director of student counseling services at Hofstra University calls it) but isn't it possible that this is something that they have consistently needed but were afraid to ask for?

Maybe I'm getting wound up about nothing, but I have serious problems with the language used in large parts of the APA's press release. "More students are coming to college with pre-existing mental health difficulties"? Sounds to me like another way of saying "they were like that when they got here!"

ATTENTION WORKFORCE:

You're screwed, for several reasons, according to the University of New Hampshire.

First, you've got to deal with a lot of punks joining the workforce. The recent crop of graduates is "entitlement minded," and I'm sure you can guess what that means. They think they deserve preferential treatement, are less likely to enjoy their job, and freely take credit for other people's successes while denying responsibility for any shortcomings. You know, kind of like the contributors to Brazen Careerist.

Once these entitlement-minded workers hit your workplace, they are going to be frustrated on the job and likely to abuse co-workers. That's right, if they don't have an objective view of their relative worth and their contributions, they end up feeling slighted on the job. Or, as Professor Paul Harvey puts it, they respond poorly to "perceived inequities in the rewards received by co-workers to whom psychologically entitled employees feel superior.” This surly attitude leads to lashing out, including workplace abuse like rumor mongering, ignoring promises, and slinging insults. So you've got that to look forward to.

The best part of all? When supervisors try to communicate with these entitled employees, the entitled workers end up feeling more frustrated, not less.

What I would like to see is how this study correlates with the one from University of Toronto that showed how women working for a female supervisor are more distressed. Does this have anything to do with the way that different genders view entitlement? I'm sure Penelope Trunk would have something to say about it.

I Love You, Man

I'd also love it if you drank less. And I'd love some acronyms, too. Actually, I'd love a lot of acronyms. Can anyone make that happen?

The University of Texas can make all that happen, and more. Their School of Public Health conducted a research study that threw around more acronyms than a GAO rundown of NIST RFP audits, kicking around acronyms like SMART (Southern Methodist Alcohol Research Trial), MIF (motivational interviewing with feedback), NIAAA (National Institute on Alcohol Abuse and Alcoholism) and e-CHUG (don't ask). Their claim is that individualized feedback is effective at stopping alcohol abuse in college.

According to this study, people in college don't realize that their peers drink less than they appear to. Sure, the rumors abound that college campuses are packed with drunken yahoos, but this study claims that there's less drinking going on than people realize, and by educating students about the behavior of their peers, they'll realize that it's okay to drink less.

I suppose that way of thinking is fine, if you're content to follow the herd. Tonight, I'm going to raise a glass to the outliers of society, who not only drink more than their peers, but who are also proud of it.

Touching Costs Extra

What's your favorite possession? Where did you get it? How much is it worth to you?

Now imagine I gave you something cheap, like a keychain. Would you value it as much? You might if you held it for a little while. At the very least, you'd think it was more valuable than a keychain that you hadn't held.

All it takes is 30 seconds. Test subjects that held a coffee mug for 30 seconds showed an attachment to it that was stronger than those who held it for ten seconds, or those who hadn't held it at all. How strong? Well, subjects who held their coffee mugs would aggressively bid for them in an auction setting. So aggressively that four out of seven times the test subjects would pay more than the retail price for the mug, even when they were told how much it was selling for in the nearby campus bookstore.

It's a good reason to figure out what you're going to buy and what you're willing to pay for it before you enter the store, since all it takes is a little physical contact to completely abandon common sense.

How to Dismantle an Atomic Bully

Even though college students are more likely to be criminals, it turns out that they're less likely to be bullies. College students are above the whole stuffed-in-a-locker, head-in-the-toilet type of physical bullying shenanigans, according to Kansas State University. However, they're breaking new ground in the field of cyberbullying.

The study has an interesting note on the motives of bullies. They think that grade school bullying is done for fun, or out of boredom, while college-level bullying is done out of jealousy. It makes sense when paired with the rise of cyberbullying. Some of those college gossip sites can get really catty.

The best part of the study is that it calls out one particular college gossip website as a major source of bullying. Is that a good idea? It's kind of up there with making the schematics for building a nuclear device widely available in terms of keeping your mouth shut about potentially harmful information.