Monthly Archives: February 2013

The Ikea Effect: A Dangerous Managerial Pitfall Or More Business Jargon Of Questionable Worth?


The IKEA Effect is the somewhat tongue-in-cheek name for a cognitive bias that leads individuals to assign greater value to an item or idea on which they have directly expended some form of effort, time, and labour. The link with the Swedish manufacturer, IKEA, is obvious, as most items purchased there typically require some assembly and this expenditure of labour does not appear to dampen the market’s enthusiasm for their products.

A Harvard Business School Working Paper by Norton, Mochon, and Ariely entitled The “IKEA Effect”: When Labor Leads to Love (2011) elaborates on a series of studies in which consumers were asked to assemble IKEA items, fold origami, and build Lego sets. The authors of these studies set out to “demonstrate and investigate the boundary conditions for what we term the “IKEA effect” – the increase in valuation of self-made products”. Continue reading


The Glocalization of Business – Pros & Cons

image003The term glocalization (linguistically, the combination of global and local) is business jargon for the introduction and adaptation of a product or service within a locality or culture in which it is sold (wikipedia, 2013).
This rather simple and benign definition, however, masks the important complexity that this term has acquired when examined within different economic and political contexts. The term’s origins are attributed to Japanese economists writing in the Harvard Business Review in the late 1980s, and are a validation of the practice of expanding global enterprise by focusing on local conditions. Since then, glocalization has received widespread use by both scholars and business practitioners contributing to the multiple layers of meaning now attached to this term. Continue reading

A Response To Our Friends At Sauder School Of Business – Vancouver, BC

The Sauder School of Business website has an engaging segment entitled, Rewriting the Rules of Business, which, on an ongoing basis, highlights and rewards unconventional problem solving strategies in business by focusing on new and innovative perspectives to recurring and persistent problems.

We, at Questions First, were particularly struck by a provocative new study co-authored by professor Karl Aquino of the Sauder School of Business, which concludes that  “bosses should pick favorites [in the workplace] if they want top performing teams”. Continue reading