Research Roundup: September 2024

Dive into our monthly Research Roundup, showcasing the latest insights from the business education community to keep you informed of new and noteworthy industry trends. Here are this month’s selections:

The Untold Limits of Failure in Driving Growth

• Researchers: Lauren Eskreis-Winkler, Northwestern University; Kaitlin Woolley, Cornell University; Eda Erensoy, Yale University; Minhee Kim, Columbia University
• Output: “The Exaggerated Benefits of Failure,” Journal of Experimental Psychology: General, 2024 
• Overview: Today’s business landscape often encourages a “fail fast, fail often” approach as a sign of innovation. However, recent research pushes back against this oversimplified view, exploring whether failure should be celebrated.
  
  The study aimed to understand how the widespread glorification of failure impacts decision-making and long-term results, whether in business, healthcare, or other professional fields. Researchers were specifically interested in how this mindset influences risk-taking behavior and whether it results in measurable benefits or leads companies down a path of avoidable mistakes.
• Findings: The research found that romanticizing failure often overlooks its true costs—both immediate and long-term. The study revealed that while failure can provide valuable insights, only 20 percent of entrepreneurs who experience failure go on to achieve substantial success in their later ventures.
  
  Companies that idolize failure may inadvertently promote reckless risk-taking by suggesting that every failure will lead to learning and growth. However, the findings show that failure can have significant consequences, such as lost revenue, damaged reputations, and lowered employee morale.
  
  Instead of glorifying failure, organizations should focus on cultivating a learning culture that values resilience and accountability. Leaders should encourage thoughtful risk-taking where mistakes are seen as learning opportunities, but with a clear strategy to minimize unnecessary failure.

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How Narrative Shifts Shape Audience Engagement

• Researchers: Samsun Knight, University of Toronto; Matthew D. Rocklage, Northeastern University; Yakov Bart, Northeastern University
• Output: “Narrative Reversals and Story Success,” Science Advances, 2024
• Overview: Storytelling has long captivated audiences across cultures and industries, yet identifying the aspects of a story that make it successful has been mostly theoretical. A team of researchers has explored this question by focusing on a key storytelling element: narrative reversals.
   
  Narrative reversals, or turning points, are moments when a story’s trajectory changes dramatically, often shifting from positive to negative, or negative to positive. The study aimed to understand whether the frequency and intensity of these reversals could predict a story’s success across various media, including movies, TV shows, novels, and even fundraising pitches.
• Findings: The research analyzed nearly 30,000 narratives and revealed that stories with more frequent and intense narrative reversals consistently performed better. For instance, movies with a higher number of turning points saw an increase in ratings by as much as 1.4 stars (out of 10), comparable to the impact of a 40 million USD budget increase. This trend was also evident across other media, with TV show ratings improving by 0.35 stars, while novel downloads increased by 110 percent when they included more dramatic reversals.
   
  These findings suggest that stories that continuously engage and surprise their audience through dynamic plot shifts are more likely to succeed in entertainment or fundraising. For business leaders, the results emphasize the importance of crafting compelling and strategically structured narratives to maximize their impact in marketing, product storytelling, or internal communication.

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Digital Dining’s Hidden Impact on Consumer Behavior

• Researchers: Annika Abell, University of Tennessee; Dipayan Biswas, University of South Florida; Christian Arroyo Mera, University of South Florida
• Output: “Food and Technology: Using Digital Devices for Restaurant Orders Leads to Indulgent Outcomes,” Journal of the Academy of Marketing Science, 2024
• Overview: In a world increasingly shaped by digital interactions, the restaurant industry is seeing a significant transformation in how customers make food choices. This study dives into the impact of digital food ordering platforms, such as apps and touchscreen kiosks, on consumer behavior.
  
  Researchers aimed to understand how these digital interfaces influence the types of food people order and the amount of money they spend. By comparing digital orders to traditional menu ordering, the study focused on identifying cognitive patterns and behaviors that emerge when convenience meets indulgence.
• Findings: The research found that 61 percent of digital orders through delivery services were categorized as unhealthy—outpacing non-digital orders by more than 3 percent. Consumers were more likely to indulge in higher-calorie, less healthy food options, especially when ordering later in the day. This shift toward more automatic, less thoughtful decision-making, called the “Google Effect,” showed that digital interfaces lead to lower cognitive involvement, making indulgent choices easier.
  
  Restaurant managers aiming to promote healthier options may benefit from offering non-digital ordering methods, as digital menus tend to encourage more indulgent choices. Alternatively, managers focused on boosting sales could leverage digital platforms during dinner hours, when consumers are more likely to make automatic, impulsive decisions. These insights provide a strategic guide for restaurant operators to tailor their offerings based on consumer behavior trends in the digital age.

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A New Era of Socially Conscious Business

• Researchers: Leonard L. Berry, Texas A&M University; Tracey S. Danaher, Monash University; Timothy Keiningham, St. John’s University; Lerzan Aksoy, Fordham University; Tor W. Andreassen, NHH Norwegian School of Economics
• Output: “Social Profit Orientation: Lessons From Organizations Committed to Building a Better World,” Journal of Marketing, 2024
• Overview: As business leaders confront growing societal and environmental issues, more organizations are shifting toward a social profit orientation—a deliberate strategy to invest in improving societal well-being and planetary health.
   
  Researchers conducted in-depth interviews with leaders from 21 organizations to examine how businesses allocate resources such as capital, labor, and expertise to initiatives that prioritize more than just profit. The aim was to understand how these companies integrate social goals into their core strategies, balancing financial performance with contributions to the common good.
• Findings: The research found that companies with a social profit orientation, such as Oportun and Gundersen Health System, achieved measurable social impact and financial returns. Oportun, for example, provided over 18.2 billion USD in affordable credit while helping customers save 2.4 billion USD in interest. Gundersen Health System became the first U.S. healthcare provider to achieve energy independence through renewable projects.
   
  These organizations show that when businesses prioritize social outcomes, they foster deeper relationships with customers, employees, and partners while unlocking new growth opportunities. For business leaders, these findings highlight the practical benefits of aligning their organizations’ operations with broader societal goals, emphasizing that social and financial goals are not mutually exclusive but can work in harmony to enhance long-term success.

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Strengthening Small Businesses Through University Collaboration

• Researchers: James Cunningham, Robert Gordon University; Jeffrey Hughes, Durham University; Allane Hay, University of the Highlands and Islands; Francis J. Greene, University of Edinburgh; Claire Seaman, Queen Margaret University
• Output: “Bridging the Divides: A Case Study of Collective Action Across Scottish University Business Schools to Support Small Business,” Journal of Business Research, 2024
• Overview: Small businesses often face significant hurdles in accessing the same strategic resources and networks available to larger corporations, limiting their potential for growth and innovation. Aware of these challenges, researchers from several Scottish university business schools initiated a collective effort to explore how academia could bridge this gap. They aimed to develop collaborative programs that share knowledge and provide direct, tailored support for small businesses.
   
  By focusing on the unique needs of these enterprises—ranging from digital transformation to market expansion—the study sought to create a framework that would enable universities to be active partners in fostering small business resilience and competitiveness in an increasingly globalized economy.
• Findings: The study revealed that targeted university support can have a profound and measurable impact on small businesses. Through the programs developed, small business owners gained access to specialized knowledge, tools, and mentorship that they previously struggled to obtain. One notable achievement was a 15 percent participation increase by small businesses in university-led programs, signaling strong demand from local enterprises for this type of academic partnership. Businesses that engaged in the initiative reported significant improvements, including a 20 percent reduction in operational costs and the ability to enter new markets they had formerly considered out of reach.
   
  These findings suggest that universities can play a pivotal role beyond their traditional educational format. They are positioned as catalysts for innovation, able to help small businesses grow and compete without the high costs associated with external consulting services.

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Send press releases, links to studies, PDFs, or other information regarding new and forthcoming research, grants, initiatives, and projects relevant to business education to AACSB Insights at [email protected].