Gotta’ Have Faith: The Effect of Organizational Religiosity on Firm Competitive Positioning

Last registered on January 23, 2024

Pre-Trial

Trial Information

General Information

Title
Gotta’ Have Faith: The Effect of Organizational Religiosity on Firm Competitive Positioning
RCT ID
AEARCTR-0012854
Initial registration date
January 21, 2024

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
January 23, 2024, 12:57 PM EST

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Primary Investigator

Affiliation
University of Michigan

Other Primary Investigator(s)

Additional Trial Information

Status
In development
Start date
2024-01-29
End date
2024-02-29
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
The importance of human capital to firm value has led organizational scholars to take an interest in non-pecuniary incentives (NPIs) such as corporate social responsibility programs and public service jobs that affect worker preferences and behavior; however, one curious omission from these studies has been the NPI of religion. The goal of this paper is to account for this omission, and to demonstrate the significant impact organizational religiosity can have on a firm’s competitive positioning. Theoretically grounded in the existing literature on NPIs, I develop three related hypotheses. First, the extensive margin hypothesis is that the more religious the individual, the more willing they are to do more work for a more religious organization. Second the wage discount hypothesis is that – contributions held constant – the more religious the individual, the more their reservation wage is decreasing with an employer’s organizational religiosity. Finally, the excess contribution hypothesis is that – wages held constant – the more their contributions are increasing with an employer’s organizational religiosity.
External Link(s)

Registration Citation

Citation
Lief, Derek. 2024. "Gotta’ Have Faith: The Effect of Organizational Religiosity on Firm Competitive Positioning." AEA RCT Registry. January 23. https://doi.org/10.1257/rct.12854-1.0
Experimental Details

Interventions

Intervention(s)
Participants will be presented with a mission statement from the fictitious firm "Standard Logistics". One mission statement will be "religious" (the treatment condition) and the other will be "secular" (the control condition). I present each of those below. I note that there are grammatical mistakes in the statements because as part of the experiment and to measure employee contributions, participants will be asked to correct the mission statements:

1. RELIGIOUS MISSION STATEMENT (treatment):
Standard Logistics Mission Statement:
Standard Logistics honors the Lord in all it does by operating the company in aa manner consistent with Biblical principles. WIth this core values in mind, standard Logistics seeks to maximize financial returns for it's shareholdersby providing value-added logistics, transportation and related business services. Standard Logistics strives to meet customer requirements in the highest quality manner appropriate to each market segment that it serves. Further, standard Logistics tries to develop mutually rewarding relationships with the staff it employs, partners and suppliers. corporate activities are always conducted according to the highest ethic and professional standards.

2. SECULAR MISSION STATEMENT (control):
Standard Logistics Mission Statement:
Standard Logistics is committed to operating the company in aa manner consistent with the highest ethical standards. WIth this core values in mind, standard Logistics seeks to maximize financial returns for it's shareholdersby providing value-added logistics, transportation and related business services. Standard Logistics strives to meet customer requirements in the highest quality manner appropriate to each market segment that it serves. Further, standard Logistics tries to develop mutually rewarding relationships with the staff it employs, partners and suppliers. corporate activities are always conducted according to the highest ethic and professional standards.
Intervention Start Date
2024-01-29
Intervention End Date
2024-02-29

Primary Outcomes

Primary Outcomes (end points)
There are three primary outcomes in this experiment:
1. "Contributions": there are 10 grammatical mistakes in both the treatment and control mission statements outlined above. "Contributions" will be measured by the number of mistakes that participants correctly identify. Specifically, participants will be assigned 1 point for identifying the mistake and 0.5 points for making an accurate correction to the mistake, for a total of 15 points
2. "Extensive Margin": after completing the initial task of correcting the mistakes in the mission statement, participants will be asked if they would be willing to help with one additional task where they will be presented with three images and slogans and then will be asked to select their favorite along with a brief description of why they selected the image they did along with any other comments they may have (i.e. perhaps other combinations and/or slogans). The "Extensive Margin" outcome is binary variable about whether they decide to help with this additional task or not.
3. "Hypothetical Wage": after correcting the mission statement ("contributions") and deciding whether or not to do the additional task ("extensive margin"), I will ask what a reasonable annual salary is for an entry-level analyst position at a company like Standard Logistics (participants will answer on a salary slider between $50,000 - $80,000). There answer to this question will be my third primary outcome. The specific language for this determining this outcome (i.e. the question) will be: "The average salary in our region for entry-level corporate analyst positions at companies like ours is approximately $65,000 and Standard Logistics typically offers salaries for entry-level analyst positions between $62,500 - $67,500. We are, however, currently in the process of reassessing this range. With that in mind, and based on what you have read about us and the work you have done for us today, what do you think a reasonable annual salary for an entry-level analyst position at a company with a [TREATMENT: God-centered vision; CONTROL: vision] like ours in a range of $50,000 - $80,000 should be?



Primary Outcomes (explanation)
None of my outcomes are constructed.

Secondary Outcomes

Secondary Outcomes (end points)
"Desire to work for Standard Logistics": After generating the three primary outcomes as outlined above, I will ask the question: "To what extent do you agree with the following statement: 'Standard Logistics is the kind of company that I would like to work for.'" The response will be a five-level Likert scale variable from "Strongly disagree" - "Strongly agree". This will be a secondary outcome.
Secondary Outcomes (explanation)
After generating the three primary outcomes as outlined above, I will ask the question: "To what extent do you agree with the following statement: 'Standard Logistics is the kind of company that I would like to work for.'" The response will be a five-level Likert scale variable from "Strongly disagree" - "Strongly agree". This will be a secondary outcome.

Experimental Design

Experimental Design
First, participants from the Ross Employee Pool from the Ross School of Business at the University of Michigan were invited to enter their names for participation in focus groups centered around the question of: what are the elements of a business that make it religious? Participants were informed that they would be compensated $40 for their participation and they would be selected randomly by lottery. As part of this, they were required to fill out a "pre-screen survey" which contained the "Religious Commitment Inventory-10 (RCI-10)", a peer-reviewed series of 10 questions (each being Likert with 5 levels from "Not at all true of me" - "Totally true of me") used to measure individual religiosity (see Worthington et. al., 2003). I note that the normative mean for a general sample of United States adults using this scale is 26 with a standard deviation of 12. Thus, according to theory (Worthington, 1988), a full-scale RCI-10 score of 38 or higher would justify considering a person to be highly religious. I received 2,932 responses from this "pre-screen survey".

Second, an equal number of emails will be sent to participants who had "low", "medium" and "high" RCI-10 scores. "Low" is defined as less than 14, "Medium" is defined as greater than or equal to 14 and less than 38. "High" is defined as greater than 38. The subject line in that email will be "Up to $100.00 for Help with Two Tasks", it will come from the email "[email protected]" and the text of the email will read:

Dear {Participant}
We (Standard Logistics) are looking for help with two main tasks. First, we are in process of establishing our mobile site and during the migration process, we have noticed formatting, grammar and spelling mistakes in the “About” section of our mobile site. As such, we are looking for help with editing the components of this section of our mobile site. Second, we are trying to better understand the most competitive and cost-effective wages we can set for potential employees and would like to ask you a few questions about that.
For these tasks, we can offer you a base payment of $5.00, a potential bonus of $2.00 and entrance into a lottery where you can win up to $93 additional dollars for a total of $100. In particular, there will be three first place prizes of $93, three second place prizes of $50 and three third place prizes of $25. We anticipate approximately 200 participants.

To be compensated for this project and to be entered into the lottery, you will need to complete all tasks and questions in the survey in contained in the link below within seven days of receiving this email.
We hope you will find the time to help us and please click the link below if you can!
{Link}

Third, participants will be randomly assigned to either the control condition or the treatment condition as outlined in the "intervention" above. They will then complete the tasks outlined in "primary outcomes" in addition to answering questions about their background including: gender, age, education, the importance of the following items for them in choosing a job: [1) Opportunities for advancement; 2) Benefits (i.e. health care, savings plans, paid-time off); 3) Collegiality; 4) Hours; 5) Location; 6) The pro bono work that the company engages in; 7) Salary; 8) Size of the company; 9) Training; 10) Extent to which the company operates in line with my religious values], and their annual wage. After the three questions used to generate the primary outcomes, they will also be asked "To what extent do you agree with the following statement: 'Standard Logistics is the kind of company that I would like to work for.'" The response will be a five-level Likert scale variable from "Strongly disagree" - "Strongly agree". I note that this is my secondary outcome as outlined above. Finally, I will conduct a manipulation check by asking the question: "How religious do you think Standard Logistics is? The response will be a five-level Likert scale variable from "Not religious at all" - "Extremely religious". Participants will also be given the opportunity to add any additional comments they might have at the end of the survey. Following the completion of all tasks, participants will be debriefed about their participation in the experiment.
Experimental Design Details
First, participants from the Ross Employee Pool from the Ross School of Business at the University of Michigan were invited to enter their names for participation in focus groups centered around the question of: what are the elements of a business that make it religious? Participants were informed that they would be compensated $40 for their participation and they would be selected randomly by lottery. As part of this, they were required to fill out a "pre-screen survey" which contained the "Religious Commitment Inventory-10 (RCI-10)", a peer-reviewed series of 10 questions (each being Likert with 5 levels from "Not at all true of me" - "Totally true of me") used to measure individual religiosity (see Worthington et. al., 2003). I note that the normative mean for a general sample of United States adults using this scale is 26 with a standard deviation of 12. Thus, according to theory (Worthington, 1988), a full-scale RCI-10 score of 38 or higher would justify considering a person to be highly religious. I received 2,932 responses from this "pre-screen survey".

Second, an equal number of emails will be sent to participants who had "low", "medium" and "high" RCI-10 scores. "Low" is defined as less than 14, "Medium" is defined as greater than or equal to 14 and less than 38. "High" is defined as greater than 38. The subject line in that email will be "Up to $100.00 for Help with Two Tasks", it will come from the email "[email protected]" and the text of the email will read:

Dear {Participant}
We (Standard Logistics) are looking for help with two main tasks. First, we are in process of establishing our mobile site and during the migration process, we have noticed formatting, grammar and spelling mistakes in the “About” section of our mobile site. As such, we are looking for help with editing the components of this section of our mobile site. Second, we are trying to better understand the most competitive and cost-effective wages we can set for potential employees and would like to ask you a few questions about that.
For these tasks, we can offer you a base payment of $5.00, a potential bonus of $2.00 and entrance into a lottery where you can win up to $93 additional dollars for a total of $100. In particular, there will be three first place prizes of $93, three second place prizes of $50 and three third place prizes of $25. We anticipate approximately 200 participants.

To be compensated for this project and to be entered into the lottery, you will need to complete all tasks and questions in the survey in contained in the link below within seven days of receiving this email.
We hope you will find the time to help us and please click the link below if you can!
{Link}

Third, participants will be randomly assigned to either the control condition or the treatment condition as outlined in the "intervention" above. They will then complete the tasks outlined in "primary outcomes" in addition to answering questions about their background including: gender, age, education, the importance of the following items for them in choosing a job: [1) Opportunities for advancement; 2) Benefits (i.e. health care, savings plans, paid-time off); 3) Collegiality; 4) Hours; 5) Location; 6) The pro bono work that the company engages in; 7) Salary; 8) Size of the company; 9) Training; 10) Extent to which the company operates in line with my religious values], and their annual wage. After the three questions used to generate the primary outcomes, they will also be asked "To what extent do you agree with the following statement: 'Standard Logistics is the kind of company that I would like to work for.'" The response will be a five-level Likert scale variable from "Strongly disagree" - "Strongly agree". I note that this is my secondary outcome as outlined above. Finally, I will conduct a manipulation check by asking the question: "How religious do you think Standard Logistics is? The response will be a five-level Likert scale variable from "Not religious at all" - "Extremely religious". Participants will also be given the opportunity to add any additional comments they might have at the end of the survey. Following the completion of all tasks, participants will be debriefed about their participation in the experiment.
Randomization Method
Randomization will be conducted by Qualtrics.
Randomization Unit
The randomization will be conducted by individual.
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
As indicated above, I received 2,932 responses from my initial pre-screen survey. I have conducted a pilot with 202 of these; thus, my current pool is 2,730, from which I plant to send an approximately equal number of recruiting emails to those who have "low", "medium" and "high" individual religiosity, as measured by the RCI-10.
Sample size: planned number of observations
As indicated above, I received 2,932 responses from my initial pre-screen survey. I have conducted a pilot with 202 of these; thus, my current pool is 2,730, from which I plant to send an approximately equal number of recruiting emails to those who have "low", "medium" and "high" individual religiosity, as measured by the RCI-10.
Sample size (or number of clusters) by treatment arms
Approximately 1,365 in both the control and treatment conditions (for the initial email ONLY).
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
I note that I assume a sample size of 205 here. This is based on the size of my current pool - 2,730 - and a response rate between 5% - 10%. In the pilot that I ran, I had a response rate of 11/202, or approximately 5.45%. A 5% response rate for 2,730 would yield approximately 137 respondents and a response rate of 10% would yield 273. The average of these two numbers is 205. Below I provide the minimum detectable effect size (MDES) for each of my three main outcomes, with the statistics coming from a pilot study: 1. Contributions: unit = score (out of 15); standard deviation = 3.13; percentage = 0.05. MDES = 0.411 2. Extensive Margin: unit = Yes/No (to do second task); standard deviation = 0.504; percentage = 0.05. MDES = 0.067 3. Hypothetical Wage: unit = dollars in annual wages; standard deviation = 8895.705, percentage = 0.05. MDES = 2271.35
Supporting Documents and Materials

Documents

Document Name
IRB Approval Document
Document Type
irb_protocol
Document Description
This document shows the approval of my IRB application.
File
IRB Approval Document

MD5: 56f02175c6a3b46c1a412fb78f6dbf6a

SHA1: 805365d9e03adf133f70e57267312edf45f64134

Uploaded At: January 18, 2024

IRB

Institutional Review Boards (IRBs)

IRB Name
The Health Sciences and Behavioral Sciences Institutional Review Board (University of Michigan)
IRB Approval Date
2022-10-20
IRB Approval Number
HUM00225895
Analysis Plan

Analysis Plan Documents

AEA_prereg_STDLOGISTICS_20012024.pdf

MD5: 083434c6f52b6d3628f03da3c4165d30

SHA1: 4723ac7cb55b78f0cae7449124dc86d06e63f626

Uploaded At: January 21, 2024

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Is the intervention completed?
No
Data Collection Complete
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