According to new research, building strong bonds between a firm and its employees can be both helpful and harmful for business. Photo via Pexels

In the relations between a company and its workers, is there such a thing as too much love?

Sadly for those enamored by affection, according to professors Balaji R. Koka and Robert E. Hoskisson from Rice Business and professor Eni Gambeta of the University of Cincinnati, the answer is yes.

In a study of innovation efforts across 271 U.S. manufacturing firms, the researchers found that how strong or weak the relationship was between a firm and its employees had a direct impact on not just the amount of innovation, but also the type. When relations were strong, innovation did increase — but only as long as that innovation happened within the business with, say, line extensions. More radical changes, ones that might upend the company culture, were less likely.

The notion of innovation prospering alongside good bonds between a firm and its people seems, of course, to make perfect sense. Happy workers aren't a bad thing. Past research shows that trust, workplace security and a system of rewards for imaginative solutions all affect in-house innovation the way food, vitamins and exercise function on human muscle. That is, they make it stronger.

But what about "distant search" innovation — ideas that aren't created in-house, but brought in from outside?

Though local innovation thrives amid rich company-worker bonds, these same relationships might erode efforts at finding innovation from external sources, the researchers hypothesized. In a culture with low turnover, as is likely the case in a happy firm, a homogenous information pool and a partiality for institutional knowledge could lead to the quest for innovation turning too far inward.

Why does this matter? Well, as the history of business has shown, being too comfortable can be a signal of decline. Radical, culture-changing innovation may be disturbing, but it can also lead to greater strength in the long run.

In the 271 firms the researchers studied, they found that, as they expected, strong company-worker bonds correlated to less exploratory innovation. And as external searches for innovation dwindled, local innovation efforts grew. Simply put, in the happy firms innovation that was unfamiliar and disruptive was less likely. Meanwhile, the firms with the weakest company-worker bonds had four times as many instances of distant-search innovation as those with the strongest bonds.

So what do these findings mean for company leaders?

A supplemental analysis, the researchers write, showed that while stronger employee-company bonds enrich a firm's overall productivity in innovation, they appear to harm a company's long-term valuation. Meanwhile, stronger employee-company relationships have a spillover effect onto other stakeholders (such as stronger customer-firm relationships), which leads to an even stronger focus on local innovation and less emphasis on exploring more disruptive innovation elsewhere.

Valuable distant-search innovation, in other words, appears to be at risk when company culture is healthiest. So how should leaders respond?

Not by returning to feudal work practices, the researchers stress. Intentionally treating employees badly, they note, eventually poisons all avenues of innovation. Instead, thoughtful leaders should keep treating workers with decency, knowing that a healthy culture is the bedrock of a firm's longevity.

But at the same time, the research suggests, managers of harmonious work cultures should anticipate soft spots in the search for outside ideas, and compensate for that. Being comfortable is good; being too comfortable is not. Being open to truly new ideas, even if disruptive, is worth encouraging.

It's not unlike trying to keep up muscle tone after leaving grueling manual work for professional life. No one really wants to go back to breaking rocks or grubbing for tubers. Better to make up for any lost strength by adding something new, like yoga or tai chi, to train new muscles and sharpen concentration at the same time.

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This story originally ran on Rice Business Wisdom. It's based on research by Balaji R. Koka is an associate professor of strategic management at Jones Graduate School of Business at Rice University, and Robert E. Hoskisson is George R. Brown Emeritus Professor of Management at Jones Graduate School of Business at Rice University


Without trust, workplace productivity, reciprocity and cooperation break down, according to this Rice University research. Pexels

Rice University research shows the importance of coworker and leadership trust within businesses

Houston Voices

While U.S. soldiers battled in Vietnam, inside the White House, President Lyndon Johnson grew increasingly suspicious of those closest to him. The legendary political dealmaker now believed that any opposition to the war was part of a conspiracy against him; aides who questioned his policy might be part of it. According to research using newly available interviews and telephone transcripts, Johnson's distrust may have been triggered by the very experience of being in power.

But how, exactly? In a recent paper, Rice Business professor Marlon Mooijman and a team of colleagues delve deeply into the interaction of power and trust, seeking answers about when and why wielding power degrades leaders' belief in those around them.

The question has deep implications not only in politics, but also in business. "Managers must trust employees' willingness to comply with instructions and keep the company's best interest in mind," Mooijman notes. Without that trust, past research shows, workplace productivity, reciprocity and cooperation break down. Leaders who successfully craft trusting bonds with their coworkers and employees, on the other hand, are more effective than those who don't.

To learn why leaders might abandon that trust, Mooijman's team set up four studies. First, though, they had to establish a working definition of trust. Trust, they proposed, is the willingness to be vulnerable to another party's actions, based on the expectation that the other party will perform a specific action important to the truster — even without the truster's ability to monitor or control the activity. Essential to a trusting relationship: the expectation of the other party's goodwill, and the willingness to expose themselves to possible exploitation if that goodwill fails.

Whether you work in an indie coffee shop or a giant software company, most workers can name a leader who lacks that kind of trust. Many also have had the good luck of a leader who isn't lacking in that department. The difference between such managers, Mooijman's team found, may be the stability of their power.

There are plenty of reasons for wanting to keep power, obviously. In relationships, power holders are able to disregard others' wishes and pursue their own. Within the individual, power boosts self-esteem and encourages behaviors such as expressing amusement and happiness. Less obvious, however, is the effect of fearing a loss of power. Leaders whose power feels unstable experience this physically, with changes in heart rate and blood pressure. They have a heightened awareness of colleagues they perceive as threats, and are more prone to divide coworkers and disrupt their alliances.

When power holders or leaders perceive their power to be unstable, it's that prospect of power loss that erodes their trust in those around them, even helpful and often unsuspecting colleagues. So strong is this effect that it occurs even when the loss of power comes with an economic benefit, Mooijman notes. "Unstable power decreases trust," the team found, "regardless of whether we provided participants with a justification of their unstable position."

To reach their conclusions, Mooijman's team first surveyed 206 participants assembled through Amazon's Mechanical Turk software. Each participant was randomly assigned a power ranking (high or low) and asked to imagine being a VP of sales at a mid-sized firm. Some were told that as part of a productivity initiative they would be reassigned to other divisions. The participants were then asked to rank their perception of their power at their firm and their perception of their job stability there. Regardless of whether their job reassignment was explained or not, the researchers found, the participants who perceived their jobs — that is, their power — to be unstable showed more mistrust of their coworkers.

A final study, a field experiment with real life managers and subordinates, reinforced these findings. Managers in positions of relatively high power who perceived their jobs were unstable were more prone to voice distrust about their subordinates.

While instability is built into political careers, Mooijman's findings have practical implications in other industries. For example, the common practice of moving workers between departments, meant to build insight and productivity, may backfire. Instead of strengthening team spirit, the strategy will likely foment distrust. Similarly, at high levels of power, emphasizing job instability with tactics such as high-stakes, winner-take-all performance metrics might be counterproductive.

Power doesn't always erode trust, the researchers found. Leaders who felt their power was secure didn't show the same level of suspicion as those who felt their roles were insecure. But when power seems fragile, the research revealed, even the most seasoned leaders are prone to abandon trust in their colleagues and see work as a battlefield.

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This story originally ran on Rice Business Wisdom.

Marlon Mooijman is an assistant professor in the management department (organizational behavior division) at Jones Graduate School of Business at Rice University.

There's no "I" in team, but getting your coworkers on the same "we" perspective can be tough. Here's why it's important, according to Rice University's research. Pexels

Rice University research shows what your company can learn from gamers about teamwork

Houston Voices

You just got a promotion — along with a brand-new work team whose members barely speak to one another. But first-rate cooperation is essential if you're going to deliver for your client. So you decide to spend a month getting to know each of your workers.

One is competent but bitter, frustrated by years of small mistakes by a colleague, mistakes that add to her own workload. Another, the one making the mistakes, seems so distracted he may as well be working at another company. Others have their own quirks. And to make matters worse, another department is set to merge its employees with your creaky, cranky team in a few months. How are you going to understand all these individuals, much less get them into shape as a unit?

For many managers, training and reading can help provide guidance. Others may hire an outside consultant and resort to team-building activities. But where does that outside expertise — not to mention training and reading — come from? It's based on academic research.

Rice Business professor Utpal Dholakia and colleagues René Algesheimer of the University of Zurich and Richard P. Bagozzi of the University of Michigan are among the scholars updating what we know about the dynamics of group decisions. Starting with classic group behavior theory, the scholars developed a series of sociologically-based models for analyzing small teams.

To better understand the existing shared intentions and attachment between teammates, Dholakia and his colleagues used a novel set of questions to survey 277 teams of computer gamers, each comprised of three people. They ran the survey responses through variations of a classic model called the Key Informant, which depends on the observations of group members about the social relationships inside a group.

Next, the researchers applied a sociological theory called Plural Subject Theory, focused on what's known as "we-attitude." That's exactly what it sounds like: verbally and actively treating an endeavor as a group project.

The core of this theory, the notion that successful teams frequently use collective pronouns when they discuss themselves and cognitively conceive of themselves as "we," has been heavily studied. Groups whose members think in terms of "we" act more cohesively and are measurably more committed to collectively reaching their goal.

To enhance the way these attitudes are measured, Dholakia created multiple variations of a new model. These differ from previous models because they include information not just from a "key informant," but from every member of a group. The researcher asks group members questions about themselves, their impressions of others in the group, their impressions about how others in the group think of each member and impressions about the group as a whole. This longer, more elaborate approach offers fresh insights about a group's shared consciousness — which provides a valuable new research outcome.

The professors found that this revision of classic key informant model generally worked the best of the various group-analysis models they tested — even improving on the original key informant approach. Future researchers, Dholakia notes, should consider the context of the team situation to decide which configuration of members is best to analyze.

So the next time you find yourself nonplussed by a chaotic group dynamic at work, remember you are in time-honored company — and that help is out there. By updating the key informant model, Dholakia and his colleagues have added to the analytical toolbox something that can help whip that team into shape. Whether it's an army of accountants or a network of hospital workers, Dholakia writes, the first step to creating a real team is analyzing which intentions they truly share.

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This article originally appeared on Rice Business Wisdom.

Utpal Dholakia is the George R. Brown Professor of Marketing at Jones Graduate School of Business at Rice University.

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UH lands $3M grant to expand opioid overdose training

Overdose Response

The University of Houston has received a $3 million federal grant to expand its potentially life-saving overdose response training program.

The grant will support the Houston Health Department’s FRONTLINES program that trains first responders in Harris and Fort Bend counties to recognize opioid overdoses and administer the drug naloxone, which can counter the effects of an opioid overdose. The four-year grant comes from the Substance Abuse and Mental Health Services Administration within the Department of Health and Human Services, and it builds on eight years of work at UH, according to a release from the university.

As part of the expansion, UH medical, social work and psychology students will now also be able to take part in FRONTLINES’ overdose-response training. Some of the students will also be selected to help train community members, ultimately passing along the life-saving skills throughout Houston.

FRONTLINES is a collaboration with the City of Houston, the Fertitta College of Medicine, Baylor College of Medicine and the Houston Recovery Center. It was co-founded by Dr. James Bray, chair of the Department of Behavioral and Social Sciences at the University of Houston’s Tilman J. Fertitta Family College of Medicine, in 2018.

“When someone experiencing an opioid overdose is reached in time, naloxone can save their life,” Bray said in a news release. “We’ve seen the impact this training can have in Houston, and now we have an opportunity to extend that reach across Harris and Fort Bend counties, putting lifesaving knowledge and tools into the hands of more first responders.”

In 2024, around 450 residents of Harris County died from opioid overdoses, according to a Texas Department of State Health Services report. The report found that fentanyl was involved in about three-quarters of the deaths.

In 2025, UH also received a $2.6 million gift from the estate of Dr. William A. Gibson to expand its opioid research and develop a vaccine to help block fentanyl's effectiveness in entering the brain. The vaccine research is part of the Michael C. Gibson Addiction Research Program led by UH professor of psychology Therese Kosten and founding member of the UH Drug Discovery Institute Colin Haile. Read more about the grant and the vaccine’s development here.

Texas public libraries drive billions in economic impact, report finds

Beyond the Stacks

A new statewide study examining the economic impacts of public libraries has revealed they have generated over $3.8 billion in value to local communities — a return of $4.74 for every $1 invested.

The report, "Beyond the Stacks: Measuring the Economic and Community Value of Texas Public Libraries" was conducted by third-party consultancy JBK Economics Group in partnership with the Texas Library Association. About 300 of the total 513 public libraries in Texas participated in a survey for the report.

A major finding from the survey revealed that public libraries create billions in economic value for the communities they serve at a fraction of what it costs to pay employee wages and benefits, operating expenditures, and capital expenditures. About 11,200 jobs were directly and indirectly supported by public libraries, the report found.

The report found its $4.74 to $1 ratio by adding up the total value of the services provided by these institutions (an estimated $2.48 billion), and comparing it to total expenditures ($808.6 million).

"Public libraries had about the same economic footprint as the Texas motion picture and sound recording industry ($2.9 billion in Gross Domestic Product in 2024) or the Texas paper manufacturing industry ($4.0 billion in Gross Domestic Product in 2024)," the report said.

Many Houstonians are already familiar with Houston Public Library's expansive catalog and programming, but there are many more services the library provides that might fly under the radar. A few examples include access to subscription-based research databases and news outlets, and the Library of Things, a collection of cookware and bake ware, musical instruments, craft kits, and other tools or activity materials that are available for cardholders to borrow. Individual branches also provide free Wi-Fi, computer access, and meeting spaces.

Houston-area residents also have access to services at several other local libraries depending on their address, such as the Harris County Public Library, Montgomery County Memorial Library System, or Fort Bend County Libraries, just to name a few.

These are additional services and partnerships that Texas public libraries commonly provide, per the survey results:

  • 93 percent provide voter registration and/or serve as voting locations
  • 84 percent provide partnerships with local social services agencies
  • 82 percent provide job application assistance
  • 68 percent facilitate applications for government benefits
  • 38 percent provide on-site social services
  • 30 percent provide telehealth rooms and/or resources
"Public libraries are practical, welcoming and rooted in the communities they serve — they are unmistakably Texan," said Texas Library Association executive director Shirley Robinson in a press release. "This study puts a dollar value on the opportunities libraries create every day. Whether someone visits a library to apply for a job, access the internet, learn a new skill or simply find a new favorite book, those services create real value for Texans and their communities."

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This article first appeared on CultureMap.com.

Rice University launches new venture fund for university-affiliated startups

startup support

Rice University has launched its new One Giant Leap Ventures Fund I, which will invest in the university’s spinouts and alumni-founded startups.

The early-stage institutional venture fund will function with a hybrid structure that allows for participation from traditional equity investors and philanthropic investors. According to the university, the fund will invest up to $500,000 per Rice-affiliated company.

To be considered eligible for funds, companies must use intellectual property licensed by the university or be led or founded by alumni.

One Giant Leap will draw on support and mentorship from Rice’s pool of 60,000 alumni and aims to create educational opportunities within the investment phases, work with graduate and undergraduate venture students, explore the scaling and commercialization of their ideas, and help investigate all the facets of venture capital.

“Rice alumni bring an extraordinary depth of experience as entrepreneurs, investors and industry leaders, and One Giant Leap creates new ways to put that expertise to work for the next generation of Rice innovators,” Stephen Bayer, vice president for development and alumni relations, said in a news release. “It strengthens the connection between our alumni and the university while giving them meaningful opportunities to mentor, advise and support Rice-affiliated companies as they grow.”

The fund held its first close in August and made its first investment into Rice brain health spinout Motif Neurotech. Led by Rice faculty member Jacob Robinson, Motif is working to commercialize a minimally invasive neurostimulator that targets treatment-resistant depression. In May, the FDA approved the company to move forward with its first clinical trial.

“Research produces breakthrough technologies and our academic environment forms outstanding entrepreneurs,” said Adrian Trömel, the fund’s managing director, a Rice alumnus and a startup founder who also serves as Rice’s interim chief innovation officer.

One Giant Leap joins the already long list of Rice-led programs that foster innovation, including the Liu Idea Labs for Innovation and Entrepreneurship’s Innovation Fellows and Summer Venture Studio, the Rice Alliance’s Business Plan Competition, the Ion District, Woodside Rice Decarbonization Accelerator, Rice Nexus, the Biotech Launchpad and RBL Ventures and its upcoming 200,000 square-foot research lab the Arc.

“With One Giant Leap, I am excited that we are creating a unique structure that brings together traditional investment and philanthropic participation to invest in and help catalyze our startups, engage the deep expertise within the Rice ecosystem and transform those strengths into real-world impact,” Trömel added in the release.