Teaching Note for HBS No. 615-036.
McDonald, Rory. "HomeAway: Organizing the Vacation Rental Industry." Harvard Business School Teaching Note 617-042, March 2017.
This short case, meant for pairing with HBS No. 615-013, "AmazonFresh: Rekindling the Online Grocery Market," explores Amazon's rationale for acquiring Whole Foods.
Though organizations are increasingly active participants in the political realm, little research has investigated how an organization's heightened focus on political ideology impacts employees. We address this gap by exploring how an individual's political ideological misfit with an organization's prevailing ideology impacts mobility. By tracking the movements of over 40,000 investment professionals in the U.S. private equity industry over 10 years, we investigate the consequences of the ideological misfit that arises when individuals' political ideologies diverge substantially from the prevailing ideology of their firms. We hypothesize that ideological misfit increases the likelihood of mobility, though the effects vary with liberal/conservative ideological orientation. Polynomial regression analyses reveal that the fit relationship between individual and organizational political ideology deviates from the idealized congruence relationship that underlies prevailing theory. Through a supplemental, qualitative investigation, we propose some potential interpretations for our findings.
The concept of disruptive innovation has gained considerable currency among practitioners despite widespread misunderstanding of its core principles. Similarly, foundational research on disruption has elicited frequent citation and vibrant debate in academic circles, but subsequent empirical research has rarely engaged with its key theoretical arguments. This inconsistent reception warrants a thoughtful evaluation of research on disruptive innovation within management and strategy. We trace the theory's intellectual history, noting how its core principles have been clarified by anomaly-seeking research. We also trace the theory's evolution from a technology-change framework—essentially descriptive and relatively limited in scope—to a more broadly explanatory causal theory of innovation and competitive response. This assessment reveals that our understanding of the phenomenon of disruption has changed as the theory has developed. To reinvigorate academic interest in disruptive innovation, we propose several underexplored topics—response strategies, performance trajectories, and innovation metrics—to guide future research.